Tom Whipple and Steve Andrews, Editors

A Note to Our Readers

Our dauntless co-editor, Tom Whipple, is out this week for health reasons, hence this edition of The Energy Bulletin Weekly is a few days late. Future editions will of course depend on how soon Tom can return to this volunteer effort. Thank you for understanding.

Daniel Lerch
Education & Publications Director
Post Carbon Insititute

Quotes of the Week

“[Diesel fuel] is extremely tight, end user stocks are extraordinarily low,” said Gary Ross… “I don’t know where resupply comes from. Diesel is the industrial product of the world, so it’s not going to help an already weakened economic environment.”
Gary Ross, Black Gold Investors LLC.; in Bloomberg article, as quoted in Rigzone

“Regulatory hurdles are stymieing growth in natural gas production in the Marcellus-Utica basin, the largest U.S. gas-producing region, which is set to miss out on the expected boom in American liquefied natural gas (LNG) exports in the coming years. Not only is Marcellus-Utica missing the opportunity to export and monetize natural gas in a world scrambling for LNG supply, but it is also unable to provide more natural gas to the regions close to it in New England. In one of the most ironic twists in American energy these days, the U.S. Northeast is importing LNG from foreign producers to meet its gas demand.”
Tsvetana Paraskova, Oilprice.com

“New England is at risk of natural gas shortages this winter amid surging global demand that’s driving up US exports. Fuel availability ‘is a primary concern’ in the six New England states, the Federal Energy Regulatory Commission said Thursday in its annual winter assessment. Strong demand for liquefied natural gas is keeping prices high, and the region also faces limited pipeline capacity.”
Naureen S Malik and Josh Saul, Bloomberg

Stats of the Week

“Daily freight rates to ship liquefied natural gas are at a record high, and prices are expected to climb further as winter approaches. Spot rates for ships commonly used to transport LNG are at $450,000 this week, a sixfold increase since the start of this year… Brokers expect daily rates along main trade routes, including one from Texas to Northern Europe, to climb to $500,000 this month as the demand to charter ships remains high.”
Costas Paris, The Wall Street Journal

The Federal Energy Regulatory Commission has forecast the average Henry Hub price for this year at $6.82 per mmBtu, which would be 30 percent higher than the average for last year.
Irina Slav, Oilprice.com

After a relentless four-week climb, U.S. national average gasoline prices have declined, falling 5.4 cents from a week ago to $3.86 per gallon on Monday. Still, the national average is still 20.6 cents higher from a month ago and a good 56.6 cents per gallon higher than a year ago.
Alex Kimani, Oilprice.com

Graphics of the Week

As quoted by Zerohedge at Oilprice.com

Headlines for the week of Oct 17– Oct 23

The Global Energy Situation

Diesel crisis deepens as inventories fall to dangerous levels
Diesel hits chaos mode
Oil ekes out weekly gain as slowdown fears linger

Russia
Ukrainian officials ‘shocked’ as Republicans threaten tougher line on aid

Europe
Nord Stream ruptures revealed as Europe grapples with gas plan
LNG freight rates hit $450,000 a day as Russia disrupts fuel supplies
German energy regulator says gas supply looks encouraging
Ukraine facing nationwide power outages after Russian strikes
France, Spain and Portugal agree to build Barcelona-Marseille gas pipeline

North America
Why the U.S.’ largest shale gas basin misses out on the LNG boom
U.S. LNG production declines despite robust demand
Drilling activity in the U.S. sees little change this week: Baker Hughes
Gasoline prices see abrupt decline as U.S. diesel prices continue to rise
Founder Harold Hamm clinches deal to take shale producer Continental private
Ahead of the midterms, energy lobbyists plan for a Republican House
U.S. Senate panel advances bill to rein in OPEC+ over oil output cut
New England may face a gas shortage this winter
Goldman: U.S. SPR crude releases to have modest price influence

Middle East/NA
Saudi Arabia announces $400 million in aid to Ukraine

India
Two major Indian refiners just stopped buying Russian crude

China
China halts LNG sales to foreign buyers to ensure own supply

The Global Economy

Agriculture
How Russian ships are laundering grain stolen from occupied Ukraine
Soaring dollar leaves food piled up in ports as world hunger grows
Fertilizer prices fall as gluts emerge after farmers pull back

Europe
Norway’s Equinor considers buying Chinese North Sea oilfields
Scottish independence paper proposes oil fueled fund
Soaring food prices push UK inflation back to 40-year high
“Frankly Terrifying”: Energy crisis could drag 26m Brits into fuel poverty

US
Truck makers fight climate rules while touting an electric future

Middle East
Iran is sending crude oil to Venezuela for refining
Weak oil demand to slow economic growth in the Middle East next year

Africa
Nigeria: Oil theft – Tompolo uncovers another illegal pipeline in delta
Nigeria flooding kills more than 600 people and displaces 1.3mn
Nigerian authorities hopeful after massive oil theft busts
Nigeria: Relief as Shell resumes crude oil export at 400,000bpd Forcados terminal

Latin America
Cuba replaces energy minister as hours-long blackouts stir unrest
Blackout halts 955,000 bpd refining complex in Venezuela

Commentary

The Oil Production Story: List of the world’s top 50 oil producers with comments about long-term production trends, prepared by Steve Andrews