Oil Market Dynamics: Supply & Demand Analysis
In-depth exploration of recent crude price stability, analyzing key supply and demand factors, including global monetary policies, Russia's export ban, and US refinery trends.
On Today’s Energy Shots:
Weekly Energy Industry News Recap
Oil Market Dynamics: Supply & Demand Analysis
Weekly Energy News Recap:
No Climate Benefit for Corn-Based Ethanol?
An advisory board to the US Environmental Protection Agency (EPA) submitted findings via a draft report that there is “a reasonable chance there are minimal or no climate benefits from substituting corn ethanol for gasoline or diesel.”
The report risks undermining proposed tax credits for corn-based fuels, such as sustainable aviation fuels (SAFs).
Policies such as the Renewable Fuel Standard (RFS) and President Biden’s 2022 Inflation Reduction Act opened funding for corn-based ‘sustainable’ fuels.
The RFS mandates required levels of biofuel blending in gasoline. Refiners that opt out of the RFS blending requirement must purchase compliance credits called RINs.
The Inflation Reduction Act opened more than $500 million in funds for ethanol infrastructure and sustainable fuels.
Canadian CCS Project Requires Federal Guarantee
On Wednesday, a consortium of Canada’s major oil producers said the group would only proceed with a $12.27 billion carbon capture and storage (CCS) project if the federal government signs a contract to lock in future carbon prices.
The consortium, Pathways Alliance, plans to build a CCS hub to capture emissions from 14 projects in northern Alberta by 2030. Pathways estimates the project could sequester 14 million metric tons of carbon per year.
The proposed federal guarantee would lock in future revenues for the project by securing a minimum price for carbon captured.
Russia’s New Export Routes
Last year, Western policymakers slapped sanctions on Russia’s crude exports, intending to cut revenues fueling the ‘special operation’ in Ukraine.
The impact on Russian petroleum revenues has been marginal nearly ten months later.
What those sanctions have promoted, however, is the restructuring of Russia’s export network and a stronger foothold in Asian and Middle Eastern markets.
This fall, Russia opened a new export route into the United Arab Emirates via its first Kazakh CPC Blend crude deliveries from the Russian Black Sea port of Yuzhnaya Ozereyevka.
Chevron Ends Australian LNG Strike
On Friday, Chevron and The Offshore Alliance agreed to end two weeks of union-led strikes.
The dispute affected Chevron’s Gorgon and Wheatstone LNG projects, which collectively export over 5% of global LNG supplies.
The mediating group, the Fair Work Commission, adjourned the dispute for four weeks while the opposing sides finalize terms.
Oil Market Dynamics: Supply & Demand Analysis
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