The ongoing Russian conflict in Ukraine is causing gas prices to rise. The European Union has slammed the Kremlin over gas imports. A solar panel trade group said that a probe by Biden could decimate the industry.
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Despite more US production, gas prices remain high
Although U.S. oil production has been increasing, it may not have an immediate impact on gas prices as Republicans and Democrats desire.
While the country is producing 300,000 more barrels of oil per day than it was in mid-March, Russias invasion of Ukraine which sparked a boycott of Russian oil and increased demand for limited supply from elsewhere is expected to keep prices high at least for the near future.
Skyrocketing fuel prices have been a political headache in the Biden administration. The president repeatedly blamed Putin for the price hike and also blamed oil producers. Republicans have also criticized Biden and called to increase domestic production.
How did we get to this point? Prices spiked following Russias invasion of Ukraine as the West turned away from Russian oil cutting supply by about 3 million barrels per day, according to early estimates.
The Biden administration announced that 1 million barrels of oil per day would be released from the country’s strategic reserves. It also called for more oil extraction by the industry.
Too little, too late? Although oil activity is increasing in response to rising prices, it is unlikely that this will fully offset the increase in demand.
We produced 300,000 barrels per daily, which isn’t bad, but it’s small in comparison to the one million barrels per a day that comes from the [strategic petroleum reserve]Patrick De Haan, head, petroleum analysis at GasBuddy, said that it was.
He said that production increases in a larger context are a positive sign, but only a small cog on a very large wheel.
The U.S. oil production was still at 11.9 million barrels per hour as of April 15, which is slightly lower than pre-pandemic levels. Meanwhile, the number of oil rigs a signal of future production has jumped to 695 compared to 438 just last year. However, De Haan described rig count as a lagging indicator.
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Sustainability is not optional. It is a necessity. Everyone has a part to play. The Hill will host its 2nd annual festival, which will gather policy leaders and practitioners working in the sustainability ecosystem. Interviews withEnergy SecretaryJennifer Grandholm, Council on Environmental Quality Chair Brenda Mallory and actress Sigourney WeberMore.Register today to reserve your spot
Russian energy decision sparks European outrage
Top European officials blasted Gazprom, Russia’s state-controlled energy company Gazprom’s decision to cut off natural gas supplies to two NATO member countries in Europe. They called it blackmail.
The announcement by Gazprom that it is unilaterally stopping delivery of gas to customers in Europe is yet another attempt by Russia to use gas as an instrument of blackmail, European Commission President Ursula von der Leyen said in a statement on Wednesday.
This is unacceptable and unjustified. It also shows the unreliability Russia’s gas supplier.
What’s next? She stated that they were working with international partners to obtain alternative sources of natural gas. She also noted that the EU was preparing a coordinated response.
Europeans can be confident that we will stand united and show full solidarity with all Member States affected by this new challenge. Von der Leyen stated that Europeans can count upon our full support.
The development comes as Gazprom alleged in a memo that Poland and Bulgaria were refusing to use Russian rubles to pay for natural gas, as Russian President Vladimir Putin has demanded, consequently forcing Gazprom to shut off access of fuel to the two countries, according to The Associated Press.
However, the energy minister of Bulgaria has refuted Gazprom’s claim that they have not paid for natural gas supplies from earlier this month.
Last month, President Biden and von der Leyen announced they would create a task force to reduce European dependence on Russian fossil fuels.
In rebuke to Russia’s invasion of Ukraine, which is now over two months old, the U.S. and other countries are trying to isolate Russia economically.
Continue reading from The Hills Caroline Vakil.
SOLAR GROUP CUTS PROBE, BLAMES BIDEN PROBE
Wednesday’s announcement by the top industry group in solar energy was that it had cut its forecasts for deployment by almost 50 percent. This was due to the Biden administration’s decision to investigate Asian producers amid claims of dodging tariffs.
The Solar Energy Industries Association, (SEIA), said Wednesday that it was dropping its projections for installations by 46 percent because of the probe. This would result in a loss of 24 gigawatts worth planned capacity, which is more than what the industry installed last year.
In late March, Commerce Department announced it would investigate whether solar panel manufacturing in Malaysia, Cambodia and Vietnam was part of a scheme by Chinese manufacturers trying to skirt tariffs.
A petition from Auxin Solar, a solar manufacturer, prompted the department to launch a probe. The initial rejection of a similar petition submitted by Auxin Solar, a group representing American Solar Manufacturers Against Chinese Ccumvention, was made by the department.
According to Abigail Ross Hopper, SEIA CEO and president, tariffs will be imposed quickly and cause the loss of 100,000 American solar workers. This would negate any chance of the President’s clean-energy goals.
This would be a huge loss for our country, which has the potential and the right policies to lead our clean energy future. Instead, the Commerce Department is threatening to wipe out nearly 50% of all solar jobs. This would also force the President to give up on his climate goals.
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EVERYONE’S A SKEPTIC
Both Republicans and environmentalists have expressed skepticism about the bipartisan climate change discussions this week.
It has been clear that Republicans are not serious in supporting reconciliation packages at that scale throughout the last year of negotiations. Sara Chieffo is vice president of government affairs at League of Conservation Voters.
Chieffo stated that he views this effort with a lot more skepticism.
Evergreen Action’s executive director Jamal Raad described the talks as a delay tactic used by Republicans to avoid a climate-focused reconciliation legislation. He said he didn’t believe the talks were being held in good faith.
Republicans have also expressed doubts about whether the bipartisan talks will achieve anything.
If it starts looking like a reconciliation or Build Back Better, then obviously Republicans will be out, Sen. Kevin Cramer (R-N.D.), who attended the meeting, was quoted as saying on Monday.
According to Politico.
Melinda Pierce from the Sierra Club was the legislative director and expressed concern that bad ideas could be brought up during the bipartisan talks.
That group on the supply end can lead to a lot of bad decisions. [be]Pierce said it was LNG exports and pipelines, or any of these supply side pieces.
ON TAP TOMORROW
- Deb Haaland, Interior Secretary, will appear before the House Appropriations Committee to answer questions about the Interior budget
- Jennifer Granholm, Energy Secretary will testifybeforethe House Appropriations Committee on DOEs budget. She’ll also appear before the HouseEnergy & Commerce Committee.
- The Senate Energy and Natural Resources Committee will vote on Kathryn Huff’s nomination to be assistant secretary of Energy for nuclear energy. It will also hold hearings on the nominations of David Applegate as Director of the United States Geological Survey; Carmen Cantor as assistant secretary, both of the Department of the Interior; and Evelyn Wang as director of the DOEs Advanced Research Projects Agency–Energy
WHAT WE’RE READING
- Two million children at risk of starvation in Horn of Africa – U.N. aid chief (Reuters)
- The Financial Times: Top US banks refuse to support climate proposals by investors (The Financial Times).
- We want it back to the original state: The US village plagued by toxic waste (The Guardian).
- Virginia Senate panel rejects Gov. Youngkins’ proposal to suspend the gas tax (ABC8)
ICYMI
Last but not least, something completely offbeat and off-beat.
This is it for today. Thanks for reading. For the most current news and coverage, check out The HillsEnergy & Environment. We hope to see you again tomorrow.
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