Essay by Eric Worrall
h/t Cautious Optimism; A few months ago Biden urged energy providers to increase exports to Europe, to support Europe’s efforts to resist Russian energy blackmail. Now Biden is complaining that US inventories are unusually low, and wants providers to focus on rebuilding domestic inventories.
Biden Administration Urges Fuel-Export Cuts to Restock Northeast
‘Emergency measures’ may be needed if refiners don’t act
Energy Department points to below-normal Northeast stocks
By Ari Natter
27 August 2022 at 00:35 GMT+10 Updated on
The Biden administration is warning refiners that it may take “emergency measures” to address fuel exports as stockpiles of gasoline and diesel fuel remain near historically low levels in the Northeast.
While East Coast gasoline and diesel inventories are well below normal, exports of US refined products are at an all-time high, the Energy Department wrote in a letter last week to refiners that included Exxon Mobil Corp., Valero Energy Corp., and Phillips 66.
“It is our hope that companies will proactively address this need,” Energy Secretary Jennifer Granholm wrote in the letter, which was also sent to BP America, Chevron Corp., Marathon Petroleum Corp. and Shell Plc. “If that is not the case, the administration will need to consider additional federal requirements or other emergency measures.”
Emergency actions can be avoided if the industry prioritizes “building inventories during this critical window,” Granholm said in the letter, which was obtained by Bloomberg.
The Biden administration is effectively asking refiners to prioritize American consumers over maximizing profits by supplying fuel-starved Europe, which is facing an unprecedented energy crunch after the invasion of Ukraine triggered US sanctions on Russian oil supply. While US retail gasoline prices have eased after hitting a record nationwide average above $5 a gallon in June, the White House remains under pressure to tackle inflation ahead of the midterm elections.
A few months ago, Biden urged exporters to make up the energy shortfall in Europe, caused by Russia’s geopolitical games and Europe’s green energy insanity.
Biden increases LNG exports as Europe faces energy crisis
By Sara Schonhardt, Scott Waldman | 03/25/2022 07:25 AM EDT
The White House announced this morning that the U.S. will rapidly increase exports of liquefied natural gas to Europe as Germany and other E.U. nations try to diminish their dependence on Russian fossil fuels.
The move will ramp up LNG shipments carried by seagoing tankers by 15 billion cubic meters this year, according to a fact sheet released by the White House. As a comparison, the United States sent 22 bcm of LNG to Europe last year, the highest ever traded between the two continents.
The announcement promises to raise concerns about the trajectory of global climate action. The construction of LNG terminals and other infrastructure could put the U.S. and other nations on a path toward using gas for years to come, even as those countries strive to phase out fossil fuels, advocates warn.
Arguably exporters are only doing what Biden asked them to – but now Biden is complaining they have followed his instructions?
If only politicians and protestors hadn’t tried so hard to block attempts to build energy delivery infrastructure for the energy starved North East. Then the North East could have supported Ukraine and maintained sufficient inventory for their own needs.
At least North East states have enough solar panels to make up the energy shortfall through winter, right?
via Watts Up With That?
August 28, 2022 at 08:24AM