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Energy

Texas oil and natural gas industry continues to break records

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Texas’ oil and natural gas industry broke new production records in May, continuing a trend in recent months and years.

Texas’ production of oil, natural gas, and natural gas liquids (NGLs), refinery activity and exports reached new record highs last month, according to a new analysis published by the Texas Oil & Gas Association (TXOGA).

The industry produced a record-high 5.7 million barrels per day (mb/d) of crude oil in Texas, a record 32.5 billion cubic feet per day (bcf/d) of natural gas marketed production and 3.5 mb/d of NGLs, according to estimates made by TXOGA’s Chief Economist Dean Foreman, Ph.D.

This is after the Texas oil and natural gas industry established new monthly records in March, according to U.S. Energy Information Administration (EIA) and U.S. International Trade Commission data. In March, Texas reported a record-high NGL field production of 3.7 million mb/d – the highest on record in history – more than doubling in-state consumption, according to the data.

Crude oil production topped 5.6 mb/d; natural gas marketed production topped 32.3 bcf/d. Texas refinery activities also reach a record-high net production of 5.5 mb/d.

Texas’ production of oil and natural gas is unparalleled. No other state is producing the volume that Texas is.

This is after Texas’ petroleum products exports exceeded 4 million barrels per day for the first time in history last December.

Since then, the Texas oil and natural gas industry has sustained five consecutive months of exporting petroleum products of more than 4 million barrels per day. In the first quarter of 2024, Texas exported nearly $57 billion worth of petroleum products.

The majority of LNG exports went to European and Asia Pacific countries; the majority of crude oil and hydrocarbon gas liquids were exported to Asia Pacific countries, according to the data.

Foreman said that Texas’ record-setting performance has continued “on the heels of remarkable productivity gains,” with rig productivity in May increasing by more than 20% year-over-year, according to EIA estimates. “As a result, Texas has continued to gain market share amid U.S. oil and natural gas production through the first half of 2024. U.S. energy security increasingly depends on Texas, and Texas has stepped up like none other.”

Projections for June show Texas’ production remains historically strong, holding at 5.7 mb/d of crude oil, 3.6 mb/d of NGLs, and 32.4 bcf/d of natural gas marketed production, according to Foreman’s estimates.

In the first half of 2024, Texas produced an estimated nearly 43% of all domestically produced crude oil and more than 28% of all domestic natural gas marketed production, according to TXOGA estimates.

Thermal and dispatchable sources of energy, primarily natural gas, are generating the majority of electricity Texans use through Texas’ grid managed by the Electric Reliability Council of Texas (ERCOT). During Winter Storm Heather, from Jan. 13-16, thermal and dispatchable sources generated as much as 95% of ERCOT’s electricity.

During another high demand period, from March 21-22, thermal and dispatchable sources, primarily natural gas, generated over 90% of ERCOT’s electricity for nine consecutive hours, averaging 91.8% of the region’s power, according to ERCOT and EIA data.

“These new records are a testament to Texas’ role as a national and global energy leader,” TXOGA President Todd Staples said. “Amidst growing global instability and energy demand that is expected to nearly double by 2050, oil and natural gas continue to serve as the bedrock of our energy mix, providing affordable reliable energy to meet our state, nation, and the world’s needs.”

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Economy

Feds spending $1.7 million pushing carbon tax on other countries

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From the Canadian Taxpayers Federation

Author: Ryan Thorpe

The Trudeau government is dumping $1.7 million into a failed bid to get countries around the world to impose carbon taxes, according to access-to-information records obtained by the Canadian Taxpayers Federation.

“All Canadians need to do to know Prime Minister Justin Trudeau’s carbon tax push is an utter failure is look south of the border and see the United States’ refusal to impose their own tax,” said Franco Terrazzano, CTF Federal Director. “If Trudeau can’t even get our biggest trading partner and ally to impose a carbon tax, then why is he wasting money trying to push this unpopular tax around the world?”

The Trudeau government launched the Global Carbon Pricing Challenge at COP26 in 2021.

The program “aims to see 60 per cent of global GHG emissions covered by carbon pricing policies by 2030.” The program website notes “carbon pricing is most effective when more countries adopt it.”

But the results so far are dismal for the government.

Only 24 per cent of global emissions are currently covered by a carbon tax. About 70 per cent of countries do not have a national carbon tax, according to the World Bank.

Three of the four largest emitting countries – the U.S., Russia and India – currently do not have a national carbon tax, according to the World Bank.

“The [climate] community has largely moved into a different framework,” said John Podesta, a long-time Democratic strategist, when asked about whether the Biden administration would impose a carbon tax in the U.S.

Only 12 countries, including Kazakhstan and Chile, have signed onto the Global Carbon Pricing Challenge as “partners,” alongside the European Union. Côte d’Ivoire is listed as the lone “friend” of the program.

There are 195 countries in the world, according to the United Nations.

“This program is a complete failure that’s wasting taxpayers’ money,” Terrazzano said. “The carbon tax makes life in Canada more expensive, forces taxpayers to pay for more bureaucrats to administer it and now we learn we’re also paying for the government to push this failed policy on other countries.”

Records obtained by the CTF show the Trudeau government has spent $811,598 on salaries for bureaucrats, operations and maintenance, and guidance and control for the program since the 2021-22 fiscal year.

The government committed an additional $974,900 towards the creation of an independent secretariat to “support the GCPC.”

The federal government has also spent about $200 million administering the carbon tax in Canada since it was first imposed, according to separate records obtained by the CTF.

Canada’s “GDP is expected to be about $25 billion lower in 2030 due to carbon pricing than it would be otherwise,” according to the Globe and Mail.

“Trudeau should stop wasting money, stop punishing Canadians and scrap the carbon tax,” Terrazzano said.

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Energy

How climate activists harm Canadian energy security

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From the Daily Caller News Foundation

By NICK POPE

 

Canadian Official Reveals Damage Eco-Activists Have Wreaked On Great White North’s Energy Security

Rebecca Schulz — the minister of environment and protected areas of Alberta, Canada — sat down with the Daily Caller News Foundation at the Canadian embassy in Washington, D.C. to discuss how climate activists, along with the country’s left-wing government, have hampered Canada’s energy security.

Alberta is a province in Western Canada that is known for its abundant natural resources, especially oil and natural gas. However, the federal government in Ottawa — led by liberal Prime Minister Justin Trudeau — has moved to restrict development in the province, harming the many blue-collar Canadians who rely on affected industries to make a living, Schulz explained to the DCNF.

“We have seen, over the last number of years, the activist, radical left starting to shape policy in a way that is, I think, very concerning, not only for just the basic needs of everyday people when it comes to safe, affordable, reliable energy, but I think, when it comes to to energy security,” Schulz told the DCNF.

“Certainly, we have a prime minister that is completely just bending to the activist base and ignoring, I think, the very real concerns of everyday commonsense as Canadians, and that’s a problem,” Schulz told the DCNF, referencing Trudeau. Later in the interview, Schulz predicted that Canadian voters will “vastly reject” Trudeau when they next head to the polls, in large part due to “the woke, ideological policies” that his government has pursued.

In Canada, one such official with deep ties to the climate activist movement shaping policy is Minister of Environment and Climate Change Steven Guilbeault. A former Greenpeace activist who once scaled Toronto’s iconic CN Tower and climbed on the roof of a government official’s private residence to install solar panels in acts of protest, Guilbeault has stated that he does not seek to implement a “secret agenda” of policies aligned with his activist past while in office, according to CBC, a Canadian news outlet.

Notably, the Biden administration counts numerous former activists among its ranks, including Bureau of Land Management (BLM) Director Tracey Stone-Manning, who was connected to radical eco-activists concocting a tree spiking plot in Idaho in the late 1980s. BLM manages federally-controlled lands for uses like energy production and livestock grazing.

“It’s really problematic because it is completely ideologically driven and devoid of common sense and the realities that people are facing every single day. And I think, you know, of course, people do care about the environment. I, of course, as minister of the environment, I care that we’re doing the right thing for the environment that we’re leaving,” Schulz continued. “You know, the places that we live, and where we develop our resources from, we’re maintaining that for future generations. But I also know that we could not survive a day without oil and gas, or products made from oil and gas and petrochemicals. And that fact isn’t changing. That, in fact, is growing so, I think it’s pretty concerning that they are also then trying to essentially stifle any opinions or statistics or facts that don’t support their narrative.”

Canada is one of America’s biggest energy suppliers, providing about 52% of all gross oil imports in 2023 and exporting nearly three trillion cubic feet of natural gas to the U.S. in 2022, according to the Canadian Energy Centre. Most of the fuel comes to America via cross-border pipelines, though some is also delivered by rail or by sea, according to a 2021 report commissioned by the American Petroleum Institute.

The Keystone XL pipeline, a major project that would have helped bring oil from Alberta to refineries along the coast of the Gulf of Mexico in the U.S., was set to be a new expansion to the systems that bring Canadian energy to America.

However, activists waged a major pressure campaign against the project, and its developers ultimately scuttled it in June 2021 after the Biden administration nixed a crucial permit and generally showed minimal enthusiasm for the project upon entering office, according to The Associated Press.

“Projects like that, of that size and scope, obviously take a significant amount of political will,” Schulz said of Keystone XL. “And I think that was a hugely disappointing decision, because we know that market access matters for energy security and meeting the needs of, I would say, Canadians and Americans, and people around the world.”

Notably, Brent Sadler — a 26-year veteran of the U.S. Navy who now works as a senior research fellow for naval warfare and advanced technology at the Heritage Foundation — agrees with Schulz’s assessment that Keystone XL would have been a positive development for North American energy security.

In a recently-published report assessing American energy security in light of the Chinese Communist Party’s (CCP) geopolitical ambitions, Sadler argued that policymakers impose “unnecessary restraints” on cross-border energy interconnection, and that security interests would be better served if they instead “get out of the way” and “permit cross-border energy infrastructure projects such as the Keystone XL pipeline.”

For now, Schulz will turn much of her focus to the Trudeau government’s proposed emissions cap for the oil and gas industry, which could see the government require energy producers to slash their emissions by about 37% relative to 2022 levels by 2030, according to Reuters. Its opponents — many of whom are located in Alberta — are characterizing the policy as a thinly-veiled production cap that will severely hurt the province’s workers and regional economy.

If finalized, the policy “would kill thousands of jobs, I would say tens of thousands of jobs, just directly in conventional oil and gas, not to mention what we’re seeing in oil sands and, of course, other related industries,” Schulz told the DCNF. “We just have a federal government that doesn’t look at any socioeconomic data on the impacts that their policy would have … No competent, responsible government would see those numbers and move ahead with that cap, but that is, in fact, what our federal Liberal government is doing in Canada.”

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