The fight against fossil fuels is pushing more people into poverty as we try to protect the world from what the Biden administration describes as an existential threat. Food has become more expensive and scarcer as a result of the rising cost of energy, with many people now having to pick between fuel and food. At the 14th joint ministerial conference of the G20 energy ministers on clean energy in India, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman criticized the hypocrisy of creating the green energy transition on the backs of the world’s poorest people. He appeared frustrated by the climate zealots who continue to preach the gospel of climate change after hearing from nations that we should keep pouring money into failed energy policies that have already destabilized the world and made necessities too expensive for the poorest of the poor. I hear a lot about morals these days, the man added. To be honest, I simply can’t come up with any more significant causes than energy poverty. We must intensify our efforts to end energy poverty because it has an impact on billions of people, making it of the utmost importance to the excellence university of energy professionals.
However, it appears that we are headed down a path where affordable and reliable energy are in jeopardy. Governments are using draconian measures to outlaw the use of natural gas and gas stoves and to speed up the transition to electric vehicles, which add to greenhouse gas emissions and put an undue burden on the world’s power grids. In the end, this will only benefit the wealthy and leave the poor without access to energy. Governments that base their decisions on political ideology rather than on science and energy fact are driving up gasoline prices and limiting supply. According to Zero Hedge, “earlier this month, the 2022 Nobel Laureate in Physics Dr. John Clauser lambasted the ‘climate emergency’ narrative as a “destructive corruption of science that threatens the world’s economy and the well-being of billions of people.” Unavoidably, the penalties have started. Dr. Clauser’s scheduled presentation at the International Monetary Fund on climate models has been abruptly canceled, and the IMF website page promoting the event has been taken down. Clauser is the most recent Nobel physics laureate to reject the idea of a climate disaster, they continue. Fellow laureate Professor Ivar Giaever is the principal signatory of the World Climate Declaration, which asserts that there is no climate emergency. Furthermore, it claims that climate models “are not even remotely plausible as instruments of global policy.” Professor Robert Laughlin, the 1998 recipient, has stated that humanity cannot and should not respond to climate change because it is “beyond our power to control.”
As a result of SPR releases and regulation reducing investment in fossil fuels, we will witness a depletion of supplies in the US. The US rig count decreased by 6 rigs last week, according to Baker Hughes, which is down 89 rigs from a year ago and is not encouraging for future oil and gas production in the US. Because of this, the Energy Information Administration (EIA) reduced its prediction for U.S. crude oil production in 2023 by 50,000 barrels per day (bpd), predicting just a 670,000 bpd increase to 12.56 million bpd this year instead of the 720,000 bpd increase originally predicted, which was announced last week. Canada’s oil production is likewise declining. This morning, Jodi reported a 197,000-barrel daily decline in Canadian oil output, the lowest level in 27 months. In the grand scheme of things, Paul Dial, PhD notes that the EIA predicted that global crude consumption would increase by +1.8 Million Barrels per day (mbd) in 2023 and 1.7mbd in 2024. Global consumption will still be 120 mbd by 2035 and 127 mbd by 2040 even if growth slows to +1.5 mbd/yr after that. 101 mbd is the current global production. Unfortunately, this is not occurring, and if we are to meet that need, we must significantly increase production and invest heavily in fossil fuels. Diesel fuel supply continues to be constrained, and in Europe, diesel prices increased by more than $800 a metric ton, which, according to Bloomberg News, was the highest price in 4 1/2 months. Even though European manufacturing has been generally weak, this is nonetheless taking place. In actuality, this morning’s eurozone flash PMI reading of 42.7 was lower than anticipated. Additionally, we observed weakness in the UK, Germany, and France, where the PPI all came in below expectations.
This week, the price of crude oil will be on watch against a possible rate increase from the ECB and the Federal Reserve. However, the market must open at $359.6 for a gallon of normal nationwide. Up from $3.565 a week prior. More heat protection and a lack of rain are driving up grain prices once more, in addition to natural gas. In the upcoming weeks, oil and gasoline prices should remain tight. The price of oil continues to carry significant upside risks. The potential for the price of oil to rise is still present due to global instability and rising tensions with China and Iran. The conflict in Ukraine and Russia’s refusal to abide by the EU price cap are not a surprise, but they also demonstrate the folly of the strategy employed to contain Russia. It’s time to acquire insurance against a prospective price increase. The possibility of this increase increasing with each passing day. While falling from a three-week high, natural gas still appears to be in very good shape. The heat wave is keeping prices high, and this week’s supply infusion is only expected to amount to 17 BCF.
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.