Tom Whipple and Steve Andrews, Editors

Quote of the Week
“What is clear, is that the glib confidence the government has that shale production can easily be ramped higher is misplaced. A combination of natural limitations, logistics, inflation, and human impacts is taking its toll, and the effects will become more evident as the year goes on.”-David Messler for Oilprice.com

Graphic of the Week

Headlines for the week of  May 2-8

The Global Energy Situation
Oil ends at near 3-week high as market supply worries resume
OPEC+ set to stick to modest oil output rises amid price rally

Russia

New EU sanctions to hit Russian oil, target more banks
Putin puts West on notice: Moscow can terminate exports and deals
O
il traders are already treating Russian crude like it’s banned

EU import ban could knock another 10% off Russia’s oil output

Europe

EU tweaks Russia oil sanctions plan in bid to win over reluctant states – sources
Germany to help eastern EU states without ports access LNG
EU rejects Russia’s ruble-for-gas scheme, warns of supply shock
Germany will have first LNG import capacity by year’s end
LNG ship arrivals to Europe rises over 20% on month in April

North America

Natural gas hits 13-year high price in the U.S. on growing supply jitters as demand soars
U.S. natural gas production growth wanes as need arises
U.S. fuel exports are draining domestic diesel and gasoline supplies
U.S. gasoline futures settle at $3.76, a record high ahead of summer (excl. taxes)
U.S. crude stocks build unexpectedly; fuels drawdown amid export surge –
The U.S. shale patch is facing a plethora of problems, esp. lack of financing
Chevron to ramp up production by 15% at biggest USA oil field
PG&E launches comprehensive study on hydrogen’s feasibility within gas pipelines
High electric bills get ready for another energy price spike: high electric bills
Electricity Shortage Warnings Grow Across U.S.
Shale producers face $42 billion in hedging losses

China

The U.S. relieved as China appears to heed warnings on Russia
Chinese tech giants quietly retreat from doing business with Russia
China’s oil giant says it’s not seeking discounted Russian fuel

Africa

Nigeria and Angola responsible for almost half of OPEC+ oil supply gap
Nigeria Is First Nation to Ground Flights as Fuel Costs Soar

Middle East

NOPEC: America’s Last Stand Against OPEC’s Drift To The Eas

The Global Economy

Decline in world conventional oil output and peak oil
Tight oil market myth becoming a reality

Agriculture

Facing a wheat crisis, countries race to remake an entire market on the fly
North Korea mobilizes office workers to fight drought amid food shortages
Extreme heatwaves seen putting pressure on India’s wheat output, export potential

Russia

Russia turns on spending taps to blunt economic impact of war and sanctions
Disconnecting Russia’s banks: Sberbank faces SWIFT removal
Russia can’t shake default risk after last-minute bond payment

U.S.

Record 4.5mn US workers quit jobs in March as the labor market tightens
U.S. productivity drops most since 1947, driving up labor costs
US stocks suffer the longest streak of weekly losses in over a decade
California says it needs more power to keep the lights on

China

China’s economy appears to be stalling, threatening to drag down global growth
Xi Jinping’s renewed commitment to zero-Covid rattles markets in China

India

Coronavirus pandemic far deadlier than the official count,
India asks coal plants to run flat out to ease the power crisis
India wants Russia to discount its oil to less than $70 a barrel
A 115-degree heatwave is making India’s power crisis worse

Global Warming

Deep under the Antarctic ice, scientists discover vast reservoir of ancient water

U.S.

Colorado River reservoirs are so low, the government is delaying releases
U.S. takes unprecedented steps to replenish Colorado River’s Lake Powel

Africa

The Horn of Africa ravaged by worst drought in four decades