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Texas oil and natural gas production reached new record highs in July

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From The Center Square

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Texas’ oil and natural gas production reached new record highs in July, after breaking records in May.

Texas’ energy exports and production of natural gas liquids (NGLs) also broke records, according to new monthly energy economic analysis by Texas Oil & Gas Association.

TXOGA’s projections show that Texas set new records for crude oil production of 5.76 million barrels per day (mb/d); natural gas marketed production of 32.8 billion cubic feet per day (bcf/d); and natural gas liquids (NGLs) production of 3.85 mb/d – each setting record highs.

Texas’ petroleum value chain highlights for May 2024 also achieved records. Refiner and blender crude oil net inputs (5.69 mb/d) were the highest on record when evaluating EIA data that goes back to 1981.

Texas now accounts for 42.8% of all U.S. crude oil production and 28.3% of all U.S. natural gas marketed production year-to-date through July 2024, according to TXOGA estimates.

“The Lone Star State’s oil and natural gas industry is not only producing more, but doing so with unmatched efficiency,” TXOGA President Todd Staples said. “These latest numbers further reinforce the industry’s ongoing commitment to utilizing the latest technologies and innovations to produce abundant, affordable, and reliable energy.”

TCS Texas oil report August 2024

Texas exported $95.7 billion worth of energy products in the first five months of 2024, according to U.S. International Trade Commission data.

Texas exported $10 billion of crude oil primarily to Asia and Europe. Texas also exported nearly $6 billion worth of refined petroleum products, primarily to North America, Latin America and the Caribbean.

Natural gas exports accounted for $1.6 billion and hydrocarbon gas liquids, $2.2 billion.

TCS Texas oil reports August 2024

Texas production records “underscore Texas’ dominant position in the U.S. energy market and ongoing contributions to national energy security,” TXOGA says.

While several news outlets have claimed oil and natural gas production records are a credit to Biden-Harris administration policies, those in the Texas industry point out that production records wouldn’t exist without Texas setting them.

Texas is leading in production because of a supportive state government and regulatory environment and facilities that primarily operate on private land, Texas industry experts have told The Center Square.

The Institute for Energy Research has identified over 200 actions the Biden-Harris administration has taken against the U.S. oil and natural gas industry, including halting federal onshore and offshore permits and leases, hamstringing production in other states.

As the Biden-Harris administration has advanced restrictions and threatened to tax and fine the industry, Texas Gov. Greg Abbott, the Texas legislature, state comptroller and the Texas Railroad Commission have implemented measures to facilitate production and safeguard the industry from federal actions.

While permits are held up by federal agencies, the RCC, which regulates the Texas oil and natural gas industry, continues to approve permits and implement conservation efforts, The Center Square has reported.

As the federal government advances investment policies targeting the fossil fuel industry, Texas law prohibits financial companies from implementing them and prohibits state government entities from investing in them.

Texas is also aggressively suing the Biden-Harris administration on several fronts. These include efforts to block EPA methane rules that would hamper the natural gas industry and blocking an attempt to classify lizards as endangered in the Permian Basin, one of the richest oil and natural gas fields in the world, among other policies.

Identifying threats posed by the current administration, those in the Texas industry have called on Congress to pass permitting reform, among other measures, The Center Square reported.

Staples also maintains that Texas’ production records “are not guaranteed. We cannot take for granted that this industry can continue to rewrite its record book in the face of federal policies blatantly designed to undermine progress. Delayed permits, canceled pipeline projects, closed and delayed federal leasing programs and incoherent regulations hurt American consumers and stifle our ability to deliver energy freedom and security around the world.”

 

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Agriculture

Canadian pandemic bill wants to regulate meat production, develop contract tracing

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From LifeSiteNews

By Anthony Murdoch

Included in Bill C-293 are provisions to ‘regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture,’ produce ‘alternative proteins,’ and ‘enable contact tracing of persons.’

A “pandemic prevention and preparedness” bill introduced by a backbencher MP of Justin Trudeau’s Liberal Party would give sweeping powers to “prevent” as well as “prepare” for a future pandemic, including regulating Canadian agriculture.  

Bill C-293, or “An Act respecting pandemic prevention and preparedness,” is now in its second reading in the Senate. The bill would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”

Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.  

A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.” 

Text from the bill also states that the government would be able to “promote commercial activities that can help reduce pandemic risk,” which includes the “production of alternative proteins, and phase out commercial activities that disproportionately contribute to pandemic risk, including activities that involve high-risk species.”  

It is not clear when Bill C-293 will proceed to the third reading in the Senate. When it was in the House, it took over a year for it to go from the second to the third reading. Should an early election be called this year, or the bill not get to its third reading before the fall of October of 2025, the bill will die.  

As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The Great Reset of Klaus Schwab and his World Economic Forum (WEF) has as part of its agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints. 

Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption.

Bill would give the government powers to ‘enable contact tracing’  

Bill C-293 would allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.” 

The bill will also “take into account the recommendations made by the advisory committee following its review of the response to the coronavirus disease 2019 (COVID-19) pandemic in Canada.” 

The federal government, and most provincial governments, during COVID, pushed and enacted contact tracing to monitor the general population. Any Canadians who traveled out of the country had to also use the government’s much maligned and scandal-ridden ArriveCAN travel app, which had a contact tracing feature.  

Also during COVID, the Trudeau government took a heavy-handed approach when it came to enacting laws or rules under the guise of “health.” For example, in October 2021 Trudeau announced unprecedented COVID-19 jab mandates for all federal workers and those in the transportation sector. He also announced that the unvaccinated would no longer be able to travel by air, boat, or train, both domestically and internationally. 

This policy resulted in thousands losing their jobs or being placed on leave for non-compliance. It also trapped “unvaccinated” Canadians in the country.  

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Canadian Energy Centre

Proposed emissions cap threatens critical Canada-U.S. energy trade

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From the Canadian Energy Centre

By Deborah Jaremko

The vast majority of Canadian oil exports to the United States are processed in Midwest states. Above, the Cushing Terminal near Cushing, Oklahoma is Enbridge’s largest tank farm and the most significant trading hub for North American crude.

Canada and the United States share something that doesn’t exist anywhere else. A vast, interconnected energy network that today produces more oil and gas than any other region – including the Middle East, according to analysis by S&P Global.

It’s a blanket of energy security researchers called “a powerful card to play” in increasingly unstable times.

But, according to two leaders in governance and energy policy, that relationship is at risk.

Analysis has shown that the federal proposal to cap emissions in Canada’s oil and gas sector would result in reduced production. That likely means less energy available to Canada’s largest customer, the United States.

Jamie Tronnes, executive director of the Center for North American Prosperity and Security, is a former Canadian political staffer born in northern Alberta now living in Washington, D.C.

Jamie Tronnes

Heather Exner-Pirot is a prominent energy policy analyst and senior fellow with the Ottawa-based Macdonald-Laurier Institute.

Heather Exner-Pirot

Here’s what they shared with CEC.

CEC: The U.S. is one of the world’s largest oil and gas producers. Why does it need imports from Canada?

HEP: It’s because all oil is not the same. The United States developed its refinery industry before the shale revolution, when they were importing heavier crudes. Canada has that heavier crude. They are now exporting some of their sweet light oil and importing Canadian crude because that’s what their refinery mix requires.

What’s interesting is that we have never exported more Canadian crude to the United States than we are right now. Even as they have become the world’s largest oil producer, they’ve never needed Canadian oil more than today.

They also import a ton of natural gas from us. They have become the world’s biggest gas producer and the world’s biggest gas exporter, but part of that, and having their LNG capacity being able to so quickly surpass Qatar and Australia, is because some of the production is being backfilled by Canada.

CEC: Will the incoming new administration (either Democrat or Republican) impact the Canada-U.S. energy relationship?

JT: I don’t see a big change happening in such a way as it did when the Biden administration came in with the axing of the Keystone XL pipeline. Now that Russia has invaded Ukraine, the global energy market has changed radically.

On the Republican side, Trump often repeats the phrase “drill, baby drill.” The issue is that the U.S. is already drilling about as much as demand allows.

I don’t think a Harris government would move quickly to limit oil and gas production without having a strategic alternative in place. It simply would make her look very weak, and she has explicitly said that she would not ban fracking.

In the post-COVID world, I believe that the Democrat side of the aisle is coming to the view that it was a geopolitical mistake in terms of securing North American energy dominance to cut the Keystone XL pipeline.

The reality is that being able to export refined Canadian feedstock is key to keeping the U.S. as an energy superpower.

The U.S. government continues to offer and subsidize tax credits for investment in carbon capture technology. Even though Trump has said that he would end all of those carbon capture credits and subsidies, it still would not stop the U.S. from importing Canadian oil and gas.

That’s only going to grow as things like AI continue to create more demand for energy. A huge amount of the United States electrical energy grid is powered still by natural gas, and that’s going to take decades to change.

CEC: Would a reduction in Canadian production from the federal government’s proposed oil and gas emissions cap impact the United States?

HEP: Yes, and we should be raising the alarm bells. The federal government has said it is a cap on emissions, not a cap on production, but all the analysis that Alberta and the oil and gas sector have done is that it will create somewhere between 1 million and 2 million barrels of production being shut in.

Well, 95 per cent of our exports are to the United States. If we are shutting in 1 million barrels or 2 million barrels, that all comes out of their end just when their shale oil is expected to plateau and decline.

A cap would also tap down natural gas production and LNG capacity. If you’re Japan or South Korea and you’re looking to secure 20 years of supply, the cap creates a lot of uncertainty with that Canadian supply. There’s zero uncertainty with Qatar’s supply. If you’re Japanese, these are not pleasant conversations. This is not giving you confidence. And if you don’t have confidence in LNG, you’re going to burn coal.

In a perfect world, Canada would supply LNG to Asia, the United States would supply it to Europe, and we’d be a pretty energy-independent Western alliance.

I wish we would be honest that we need a different way to reduce emissions that does not take away from production, because that capacity is a big part of what we offer our allies right now.

JT: It threatens the security of North America in a big way because the energy dominance of the United States is tied to Canada. Especially with what’s going on in Russia and other countries, it behooves us as Canadians and me as an American to remember that security is not freely granted.

We have to make sure that we are thinking more holistically when we think of things like emissions cap legislation that’s going to have knock-on effects and may even increase emissions. If you’re trying to replace that feedstock, it’s got to come from somewhere.

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