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Biden Proves Democrat Voters Have no Idea What They’re Voting For

More proof Democrat voters have no idea what they’re voting for. – How many Democrats who voted for China Joe Potato Head Biden thought they were voting for this when they entered the voting booth?:

Yes, friends, the dementia-addled sock puppet occupying the White House reversed President Trump’s order lowering the cost of a variety of prescription medicines on Friday, including some that are crucial to millions suffering from diabetes and allergic reactions. This from the party that claims to be the advocate for healthcare in America.

From a story at Daily Wire:

President Joe Biden’s United States Department of Health and Human Services (HHS) on Thursday stopped executive orders from his predecessor designed to significantly lower prescription drug prices for Americans, including insulin and epinephrine.

The new administration will apparently re-evaluate the executive action from President Donald Trump toward the end of March. It remains unclear if it will be reinstated.

“The HHS Thursday froze the former Trump administration’s December drug policy that requires community health centers to pass on all their insulin and epinephrine discount savings to patients,” Bloomberg Law reported Thursday. “Centers that don’t pass on the savings wouldn’t qualify for federal grants.”

“This freeze is part of the Biden administration’s large-scale effort announced this week that will scrutinize the Trump administration’s health policies,” the report noted. “If the previous administration’s policies raise ‘fact, law, or policy’ concerns, the Biden HHS will delay them and consult with the Office of Management and Budget about other actions.”

report for Bloomberg Government said the Biden administration is on a “different page” about curbing drug prices than the Trump administration, noting of the Biden team awaiting “at least a dozen lawsuits … over Trump-era moves to lower drug prices”:

Yes, the Biden people are “on a different page,” i.e., they’re reversing a policy that actually worked and will replace it either with a policy that massively increases the cost of these drugs – as the cost of every drug in America increased thanks to Obamacare – or with no new policy at all.

If you’re one of the dimwits who voted for Biden expecting a man who has been in government for half a century without ever making anything better for the American people to somehow now suddenly start making things better, you are the problem. Frankly, you deserve whatever misery he throws your way. But the millions of other Americans who aren’t complicit in this farce don’t deserve it, and that’s on you, too.

Remember this incident, in which Biden told a union factory worker that “I don’t work for you!”? Well, what part of that did you nitwits not understand?

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Democrat voters have no idea what it is they’re voting far, Part II – The people of New Mexico are suddenly all verklempt today after the Swamp’s designated Sock Puppet signed an order last week imposing a senseless 60-day moratorium on new leasing on federal lands and waters in the United States. Seems that those New Mexico dimwit voters didn’t realize that about half of the oil and gas production in their state that pays for about half of their state government each year is produced from … wait for it … federal lands, and their state is now facing a big budget gap that will only grow larger thanks to China Joe’s demented act.

From a story at Fox Business:

ALBUQUERQUE, N.M. — President Joe Biden’s 60-day moratorium on new oil and natural gas leases and drilling permits is prompting widespread concerns in New Mexico, where spending on education and other public programs hinges on the industry’s success.

Top Republicans in the state as well as local leaders in communities that border the Permian Basin — one of the most productive regions in the U.S. — say any moves to make permanent the suspension would be economically devastating for the state. Half of New Mexico’s production happens on federal land and amounts to hundreds of millions of dollars in royalties each year.

Congressional members from other western states also are raising concerns, saying the ripple effects of the moratorium will hurt small businesses already struggling because of the pandemic.

“During his inauguration, President Biden spoke about bringing our nation together. Eliminating drilling on public lands will cost thousands of New Mexicans their jobs and destroy what’s left of our state’s economy,” Carlsbad Mayor Dale Janway told The Associated Press on Friday. “How does that bring us together? Environmental efforts should be fair and well-researched, not knee-jerk mandates that just hurt an already impoverished state.”

Steve Pearce, chairman of the state Republican Party, said drilling was beginning to pick up in New Mexico’s share of the Permian Basin because of rising oil prices. But he said he’s concerned that activity could evaporate.

“I think we’re going to see companies choosing not to invest in New Mexico and take their jobs and drilling to Texas just 3 miles away,” Pearce said. “They can just scoot across the border where they don’t have federal lands.”

[End]

Chairman Pearce, a former GOP member of congress, hits on a key part of this story that New Mexico Democrat politicians like to ignore: Texas is right next door, and Texas isn’t held hostage by half of the state being owned by the feds. The Permian Basin is a massive geographic area almost as large as the entire state of Wyoming, about 3/4ths of which lies on the Texas size of the border. The impact of Biden’s moratorium on federal leasing and his coming ban on fracking on federal lands will almost certainly result in companies focusing on drilling wells in Texas and reducing their activity in New Mexico.

Whether they realized it or not, this is what New Mexicans voted for when they went 55% for China Joe. After all, it wasn’t as if he and Kamala Harris made any secret about their intentions during the campaign. As is always the case with Democrats, they always telegraph exactly what they plan to do to you – all you have to do is pay attention to exactly what they say.

New Mexicans didn’t pay attention, and so the schools and hospitals and all sorts of programs oil and gas revenues have been delivering to them will suffer, and so will the people. Biden’s attitude about it all? “I don’t work for you.”

Tough.

That is all.

Today’s news moves at a faster pace than ever before. Whatfinger.com is the only real conservative alternative to Drudge. It’s the tool I use to help keep up with all the day’s events, and it should be your tool, too.

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$70 Oil by the end of the Year? It Could Happen.

What a difference three months makes. Three months ago today, Russia and Saudi Arabia had just embarked on a completely irrational effort to flood the global oil markets after Russia had basically blown up the OPEC+ supply limitation agreement when it balked at making an additional few hundred thousand barrels of oil per day (bopd) in cuts.

But on Saturday, those same two big producers cajoled the rest of the countries participating in OPEC+ to extend the deep, 9.7 million bopd May/June supply limits through the end of July. The cuts had been scheduled to scale back to a combined 7.7 million bopd on July 1. Reuters reports that Saudi Arabia has now reduced its daily production by 2.24 million bopd from its market-flooding level in April, while Russia – which could not stomach a reduction of about 200,000 bopd back on March 4, has cut its own daily production by more than 900,000 barrels.

It’s pretty amazing how single digit – and even momentary negative – crude prices will change an oil minister’s perspective on what constitutes an appropriate level of output.

The OPEC+ members also pledged to monitor and reassess appropriate supply levels on a monthly basis, beginning with their next meeting, which is scheduled for June 18.

Combined with dramatic reductions in crude output in the U.S. and Canada and a more-rapid-than-expected recovery in demand, the extension of the OPEC+ May/June quotas sets the stage for a more rapid re-balancing of the global markets. Bjornar Tonhaugen, Rystad Energy’s head of oil markets, said that “Today’s deal is a positive development and, unless a second Covid-19 wave hits the world, it will be the backbone of a quick recovery for the energy industry. That is due to the oil stocks decrease that we will see as a result of the production deficit. Stocks are now what keep prices at relatively low levels and the quicker they fall, the faster we will see prices rise.”

Read the Full Piece Here

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The OPEC++ Deal: Calling it a Half-Measure is an Exaggeration

Let’s be honest: The so-called OPEC++ agreement to cut 10 million barrels of oil per day from global crude oil supply is a half-measure. Really, with Rystad Energy reporting that demand for oil will drop by 27 million bopd from January 1 levels during April, calling it a half-measure is an exaggeration.

Even this half-measure has still not been finalized, as Mexico’s government still has not committed to holding up its end of the bargain as of this writing on Friday morning. So, anything could still happen. All of which explains why the oil markets reacted negatively to the OPEC++ announcement, with oil prices dropping by more than 15% in just a few hours.

But here at least are the parameters of the agreement that are being reported Friday morning:

– OPEC++ (the OPEC nations plus Russia, Mexico, Canada, Brazil and several others) agree to cut 10 million barrels per day of exports from April through July;

– The cuts drop to 8 million bopd from August 1 through December 31;

– The cuts further fall to 6 million bopd beginning January 1, to continue for the next 16 months;

– The cuts include no formal contribution from the U.S. oil and gas industry.

President Donald Trump will discuss his views of America’s contribution to a reduction in global supply in a call involving the Group of 20 – or G20 – on Friday.

 

Read the Rest at Shalemag.com

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Russia’s Skepticism Over U.S. Oil Production Cuts Is Well-Grounded

Bloomberg reported Wednesday that Russian oil representatives are expressing skepticism about the potential for the the U.S. oil industry to participate in global deal to cut crude production in a real, sustaining way. That skepticism is well-grounded in reality.

With the Trump Administration thus far offering only what it calls “automatic” cuts that will take place in the U.S. as drilling activity drops and oil wells are shut-in as the result of low demand, Russian government spokesman Dmitry Peskov told reporters, “You are comparing the overall demand drop with cuts aimed at stabilizing the global market. These are completely different things.”

He’s right.

The problem is, as I pointed out over the weekend, is that, absent quick and certain action by regulators in Texas and other states or an emergency declaration by the Trump Administration designed to shut down production in the Gulf of Mexico and on federal lands, any U.S. contribution to a global supply reduction deal must by law be market-based, and thus, temporary. Unlike Russia, Saudi Arabia and many of the OPEC nations, the U.S. oil industry consists of thousands of companies competing in a free market, and the national government cannot cause production to rise or fall on a whim. The situation is further complicated by the fact that any such move by the federal or state governments would be politically controversial and opposed by certain segments of the U.S. industry itself.

Today In: Energy

There is little doubt that, should current market dynamics persist into the third and fourth quarters of this year, overall U.S. crude production will drop dramatically, with Citigroup, Inc. projecting it to be down by over 1 million barrels per day by October. Frankly, that seems to be a conservative estimate. The trouble in the context of this envisioned global agreement is that, once demand is to a large extent restored, the U.S. industry would simply come roaring back to fill the void, absent some artificial governor on its activities.

Read the Rest at Forbes.com

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State Regulators Hold The Key To U.S. Participation In A Global Oil Supply Deal

The energy media was filled with speculation on Friday and Saturday about how much higher crude prices might spike on Monday as OPEC and Russia prepared to hold an emergency conference call meeting that day. That speculation has now evaporated as the call has been postponed, now scheduled to take place on Thursday.

As the Wall Street Journal reported on Sunday, “Saudi Arabia and Russia have said privately they are unlikely to cut oil output unless North American producers join in.” While Canada has signaled its willingness to be a part of a larger, global approach to cutting supply, it is unclear how exactly officials from Russia and Saudi Arabia envision the United States joining the party.

I’ve written about this several times in the past, but it deserves repeating here: America is simply not like these other countries. It is called the “United States” for a reason. The federal government of the United States has no existing authority to just cause oil wells to be turned off and on at the snapping of a president’s fingers.

Yes, as we saw in the wake of the tragic Macondo blowout and spill in April, 2010, a president can declare an environmental emergency and cause all production to be shut in in the Gulf of Mexico. But beyond 3 miles of the coastline (roughly 12 miles offshore Texas) the Gulf of Mexico is a federal province. The order issued on May 27, 2010 by President Barack Obama to shut-in Gulf of Mexico production applied only in waters of 500 feet or more in depth, limiting it to areas safely within the federal province. In this way, he avoided challenges from state governors that would have certainly resulted had he attempted to shut down the entire Gulf, including all state waters.

This is what the United States calls “federalism,” and it is a concept that leaders in many other countries appear to have a very difficult time grasping. Given that the great preponderance of U.S. oil production comes mainly from beneath state and private lands, solving the conundrum of any U.S. participation in any global agreement to limit oil supply will necessarily involve participation from key state regulators.

In states like Texas, North Dakota, Oklahoma, Wyoming and New Mexico, which together are producing the preponderance of U.S. crude oil, regulatory bodies possess various authorities to limit production within their state borders. Those states combined to produce about 68% of the oil produced in the U.S. in January, the latest month for which the U.S. Energy Information has data. Another 15% was produced in federally-owned waters in the Gulf of Mexico and off the Pacific coast.

Thus, at least in theory, roughly 83% of U.S. oil production could be artificially limited by the federal government and state regulators on a coordinated basis. It is important to note that this kind of coordination is the only real way for the U.S. to become a meaningful part of any such deal.

Read The Rest at Forbes.com

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Is an Oil Price Train Wreck Hiding Around the Bend?

Today’s Energy Update
(Because Energy Fuels Our Lives)

The energy media has recently featured headlines that seem at odds with one another and that, when taken together, portend the possibility of a coming train wreck somewhere down the road where crude oil supply and prices are concerned. Let’s look at some of the more recent headlines as examples:

“The U.S. Shale Boom is About to Get a Major Upgrade” – Investors Business Daily, Feb. 19

“Wall Street Calls for Better Returns; Shale Gets Thrifty” – Gulf Times, Feb. 17

“OPEC Cuts Send Crude Exports to Lowest Since 2015” – Financial Times, Feb. 19

“U.S. shale oil output to hit record 8.4 million bpd in March: EIA” – Reuters, Feb. 19

That Investor’s Business Daily story begins by stating “The U.S. shale oil boom is about to get a whole lot bigger. The reason: Giant oil companies like Exxon Mobil (XOM) are leveraging their massive scale to unleash more production from the top-producing shale oil formation.”

The EIA projects that the domestic industry will push U.S. oil production past the 12 million barrels of oil per day (bopd) level for the first time in the nation’s history in March, with 70% of that coming from shale plays. Fully 1/3rd of all oil produced in the U.S. in March will come from the Permian Basin alone.

Follow me on Twitter at @GDBlackmon

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

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Some Stunning New Facts About Texas and its Oil Industry

Today’s Energy Update
(Because Energy Fuels Our Lives)

#GodBlessTexas. – Last week at Shale Magazine, I put up a piece detailing some “Fun Facts” about the state of the oil and gas industry in Texas. That piece began with the following statement:

“Here’s a fun fact: If Texas were an independent country, it would now stand as the 5th-largest oil-producing nation on Planet Earth, behind only the rest of the U.S., Russia, Saudi Arabia and Iraq. According to projections by the U.S. Energy Information Administration (EIA), Texas will pass Iraq in this measure of economic might later this year.”

Boy, things sure do escalate quickly in the oil industry. Here we are, barely a week later, and the truth about that little factoid has already changed again, at least if the U.S. Energy Information Administration (EIA) has its numbers right.  EIA now says that the U.S. averaged 12 million barrels of oil per day (bopd) in January, the first time it has ever reached level. The agency further projects that the Permian Basin alone will produce 4 million bopd in March, roughly 1/3rd of total U.S. production.

So, before we get to some new amazing facts about all of this, let’s do a little math.  First, roughly 85% of total Permian Basin production comes from Texas, which in March would come to about 3.4 million bopd. Next, add in EIA’s estimate that the other behemoth Texas shale play, the Eagle Ford, will produce about 1.3 million bopd, and you are at a stunning 4.7 million. Oh, and there’s also all that oil coming out of deep south Texas, east Texas and the Texas panhandle, and all of a sudden you find Texas producing in excess of 5 million bopd.

All of which means that as of today, the great State of Texas, all by itself, would now rank 4th globally in crude oil production if it were an independent country, having now blown past Iraq.  Oh, and if the EIA’s projected trend for Permian production growth holds true, Texas will in all likelihood surpass the rest of the United States in total production at some point in either late 2021 or early 2022, and become the third-largest producer in the world.

But that’s not all.

EIA’s March projection of 4 million bopd coming out of the Permian Basin alone means that single basin, were it to secede from the union, would suddenly rank as the 5th-largest oil producing nation on earth, behind Iraq as well as the other countries mentioned above. The other amazing but little known fact about the Permian is that it ranks as one of the largest natural gas plays on earth, second in the U.S. only to the mammoth Marcellus Shale play in the northeast.

How incredible is that? Look at it this way:  Just a decade ago, the Permian Basin was considered to be a “dead” oil play. Downtown Midland was basically a ghost town, and the only real oil business going on out there was a bunch of small companies buying up old, depleted oil fields and going in to rework the wells in order to squeeze a few more barrels per day out of them.

Today, just 10 year later, it is the focal point of the global oil industry, the driver of booming economies of Texas and New Mexico, the main driver of the country’s burgeoning oil and LNG exports businesses. Because industries like chemicals, plastics, fertilizers and many, many more use petroleum products and natural gas as feedstocks, the Permian is also one of the the major facilitators of our country’s manufacturing renaissance over the last few years.

Stunning. And a real blessing.

God Bless Texas, indeed.

That is all.

Follow me on Twitter at @GDBlackmon

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

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Apache and the Alpine High: Changing the Way the Oilfield Works

Monday Energy Update

(Because Energy Fuels Our Lives)

“My story starts in 1956 when I was one year old, and M. King Hubbard made a prediction about ‘peak oil.’ He said somewhere around 1970 U.S. production would peak at about 10 million barrels per day and then it would fall off over the next 25-30 years to about 4 million bpd, and the U.S. would be completely dependent on foreign oil.”

Steve Keenan is, to put it mildly, a high-energy individual. Apache Corporation’s Senior Vice President for Worldwide Exploration, he is a 40-year veteran of the oil and gas industry, a geoscientist who has seen it all and done most of it. As we start our interview last November, he is seated at his desk at the company’s offices on the western edge of San Antonio, trying to describe to this writer the series of events that led to the discovery of the massive Alpine High resource in the Delaware Basin of far West Texas. As we will soon see, it was a discovery that required a “cradle to grave” kind of approach, and true to form, Keenan was starting his explanation at the cradle.

“That’s important because people really believed what Hubbard was saying,” he continues. “And the amazing thing to me is that he was practically correct — oil did peak at 10 million bpd around 1970, and it did fall and we were disproportionally dependent on imports for a long time. But it didn’t fall in the logistic distribution curve that he predicted.” To emphasize this point, Keenan pulls up a line graph of the last 45 years of U.S. oil production onto his computer display. “If you’ll notice, there are changes in the slope of the curve, and it is those changes in slope that are the story of my career.

“Up until about 2005 the industry was involved in what we used to just call ‘exploration’ but which we now refer to as ‘conventional exploration,’ since we now have exploration in ‘unconventional’ or ‘resource’ plays,” he says, describing the different terms used to differentiate the sand and limestone formations from which almost all oil and gas was extracted during the industry’s first 150 years and the tight sands, coal and shale formations that have produced most of it in the U.S. during the course of the 21st century.

“All these changes in slope are important because what they represent are the introduction of new ideas, really creative and adaptive thinking, so that we could slow or arrest that decline. Or some kind of new engineering capability or new technology that didn’t exist previously. But mainly it was creative thinking.”

He points to a specific spot on the graph. “This is where I come in. I actually first got hired in 1978, after the Arab oil embargo and the discovery at Prudhoe Bay. Like a lot of people my age with my credentials (he has an MS degree, undergrad in geology with a master’s thesis topic pertaining to spectral analysis of seismic signals – most of his contemporary MS colleagues studying Geophysics were writing about the evaluation of gravity or magnetic data) I began my career working in frontier areas where all the big hopes were. The main suspects at that time were in Alaska and California.”

Indeed, the progression of Keenan’s career, which, before coming to Apache Corp. in June 2014 included stops at Cities Service Oil Company, SOHIO Petroleum, BP, Marathon and EOG Resources, reads basically as compendium of some of the largest major oil discoveries of the last 40 years.

As Keenan notes, the early years of his career, spent at Cities Service, were spent exploring for oil on the North Slope of Alaska and in California, where he worked on the huge Milne Point field 35 miles west of Prudhoe Bay, and also on the Point Arguello field in the Pacific Ocean waters offshore California, just north of Santa Barbara.

While working as Regional Project Manager and as Chief Geophysicist at a domestic independent oil company from 1985 through 1997, Keenan gained a wealth of international experience, exploring for oil faraway places like Norway, Oman, Spain, Argentina and Egypt. Keenan moved over to Marathon Oil in 1997, and spent the next five years working on assets in the deep waters of the Gulf of Mexico and Angola.

Keenan next moved to become Division Exploration Manager of the South Texas operations for EOG Resources. There, he led the company’s highly-successful development of the Middle Wilcox tight sands assets in South Texas. Then, in 2008, his team made a major new discovery when it drilled, hydraulically fractured and completed the first successful horizontal well in the giant Eagle Ford Shale formation.

Wait, you’re thinking, didn’t Petrohawk drill that first successful Eagle Ford well? That is the common story, and, to be fair, Petrohawk was the first company to publicly announce a successful Eagle Ford completion, in October of 2008.

In 2008, EOG made a strategic decision to add more liquids to its portfolio of assets as the natural gas market in the U.S. began to become over-supplied. Keenan and his team were directed by then-EOG CEO Mark Papa at that time to go find more oil, even though it had been highly successful in drilling for the natural gas in the Wilcox formation for many years by then.

In the summer of that year, Keenan’s team which included current Apache employees Chester Pieprzica, Roberto Alaniz and Navneet Behl, drilled the Tully C. Gardner #94H, a 4,200’ lateral well in Webb County, Texas, which is in the wet gas window of the Eagle Ford Shale, and brought it online in August. So, why does the Petrohawk well continue to get the credit? Because EOG made the strategic decision to not make an announcement of its new discovery.

“At EOG, we decided that there was no value to us in telling people that,” Keenan says with a chuckle. “We convinced our management to move over to Karnes County (to the east) [to start up an expanded leasing program]. We then moved our rig over into Karnes County and drilled what was the first crude oil well in the Eagle Ford Shale.

“If you think about it, what business advantage would we [EOG] have to tell anybody about that first well?” Keenan says, noting that doing so would only serve to bring new competitors into the play area. “When we drilled that first well, we had about 15,000 acres under lease in the Eagle Ford,” he notes. In the coming months, EOG’s acreage position ultimately grew to more than 575,000 acres, and the company became one of the handful of biggest players in the Eagle Ford drilling boom that lasted through 2014, and is now seeing something of a revival today.

Read the Rest at Shalemag.com

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