Tom Whipple and Steve Andrews, Editors

Quotes of the Week

“When the White House started calling around in a panic, they thought shale oil production could grow sharply in the near term — like in a matter of months or quarters. They were shocked to learn that that’s like asking for blood from a stone. It’s almost impossible.”-Bob McNally, head of consultancy Rapidan Energy.

“Fair or not, it’s a problem for Biden as he is seen as the maestro of the economy even though there is truthfully not much any president can do to influence gas prices in real time.”-Sasha Mackler, Bipartisan Policy Center, Exec. Dir. of Energy Program

Graphics of the Week

Headlines for the week of  June 6 – June 12

The Global Energy Situation

Goldman now sees oil hitting $140 this summer
Trading giant Trafigura sees oil headed to $150 this year
Oil falls as U.S. inflation data surges; China imposes lockdowns

Russia

Insurance ban is the EU’s biggest blow yet to Russian oil exports
Russia says it can bypass EU ban on insuring maritime oil deliveries to third countries
Russia does not expect to cut gas to more European customers

Europe

IEA’s Birol says harsh and long winter could trigger European energy shortage
Germany faces 5 billion euros a year hit from Russian gas sanctions, Welt am Sonntag reports
LNG revolution: Germany’s plan to wean itself off Russian gas takes shape

North America

U.S. gasoline average price tops $5 per gallon in historic first
U.S. distillate stocks rise but supply remains tight
The US is now sending the bulk of its export gas to Europe
Explosion hits Freeport LNG plant, U.S. natgas prices plunge

China

China’s appetite for commodities sapped by virus, surging prices
CHINA DATA: May crude imports gain 3% to 10.8 mil b/d from April

Middle East

OPEC+ output up after two months of declines, but quota shortfall grows: Platts survey
Israel-Lebanon sea boundary row obstructs energy development
Israel sends Navy to escort drilling rig in disputed gas field
Azerbaijan discussing gas supplies to new European buyers as war rages in Ukraine
Iraq exports dip but revenues hit a new record

South America

Crude exports disrupted as Venezuela begins asking for advance payments
Oil majors are lining up for the next great South American oil boom: Guyana-Suriname basin

Africa

Libyan oil supply outages intensify as political crisis deepens
Pipeline closures, and maintenance drag Nigerian oil output to new lows
Nigeria disturbed by acute fuel shortfalls

India

India’s fuel demand jumps 24% year-on-year in May

The Global Economy

Global growth will be choked amid inflation and war, says World Bank
World Bank slashes global growth forecast to 2.9%, warns of ‘stagflation’ risk
Trafigura warns oil prices could reach ‘parabolic state’ in threat to global growth

Agriculture

Russia seeks buyers for plundered Ukraine grain, U.S. warns
Russia holds grain hostage, demands the West lift sanctions

Russia

Putin and Peter the Great: Russian leader likens himself to 18th Century tsar
Business losses from Russia top $59 billion as sanctions hit
Britain says Russian forces have not made advances into the south of Sievierodonetsk
Russia’s population is shrinking even as Putin seeks expansion

U.S.

U.S. inflation hit 8.6% in May
Gasoline prices reach $5 a gallon nationwide for the first time
Goldman Sachs says energy prices not high enough to curb demand
U.S. oil rig count jumps as crude holds at $120
U.S. Midwest may have summer power shortages for years

Europe

IEA: Europe could see energy rationing this winter
UK economic growth is grinding to a standstill, BCC warns
Cut taxes before economy grinds to a halt, OECD warns UK
EU lawmakers back ban on new fossil-fuel cars from 2035

China

China’s exports rebounded in May as Covid restrictions eased
With climate change lurking, China’s food security dream seems a bridge too far
Beijing and Shanghai resume mass testing as cases rise

Middle East

Iran expanding nuclear work, switching off cameras amid IAEA censure
Algeria says it respects all gas commitments with Spain
Libyan oil supply outages intensify as political crisis deepens
Saudi Arabia cuts oil volumes to China for July

Africa

High fuel prices squeeze African consumers, strand truckers, and snarl flights

Global Warming

North America
Oil, and gas companies underreported methane leaks, new study shows
‘Extreme’ heat to bake Texas, and Southwest with highs topping 110 degrees
As the Great Salt Lake dries up, Utah faces an ‘environmental nuclear bomb’