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Today, we look at how high gasoline costs can be a good thing for some. Democrats and green groups are arguing for renewables and a better energy system.
Rachel Frazin and Zack Budryk were the Hill’s editors. Send us your tips:[email protected][email protected]. Follow us on twitter:@RachelFrazin@BudrykZack.
Lets jump in.
Who benefits when oil prices rise?
Some players, such as the U.S. oil producers stand to benefit financially. Countries such as Saudi Arabia have the potential to win both politically and monetarily.
Here’s a look at who benefits:
Companies that drill to oil
Producers will be able to get more for their product as oil prices rise.
According to Patrick De Haan (head of petroleum analysis at GasBuddy), a website that tracks gasoline prices, it’s a big win for oil producers and drillers.
He stated that the industry is in a position that is almost identical to where it was in 2020, when the coronavirus epidemic crushed demand.
These companies can make money has prompted left-wing criticism.
American oil and natural gas companies should not use this moment to increase profits or raise their prices. President Biden
Joe BidenBiden expected call for nixing normal trading relations with Russia Senate averts shut down, passes.6B Ukraine aid GOP senators urge Biden accelerate transfer of airpower, air defence systems to UkraineLast month.
De Haan discredited the idea that companies should intentionally limit their profits.
De Haan said that it would be like asking someone on the housing marketplace if they would sell their house for $100,000 more to help this person. That’s not the way America works.
Shale producers
High gas prices are a great opportunity for Shale oil producers, due to the quick turnaround time for extracting this type oil.
Extracting shale is usually faster than extracting conventional oil. This means that shale producers are able to increase production quickly in response to high prices.
Shale is in [a]A particularly positive situation is due to its short cycle and its ability respond quickly at the price, stated Antoine Halff, an adjunct senior researcher at the Center on Global Energy Policy at Columbia University.
He noted, however, that shale producers have been slow to increase production.
Prices were rising before the invasion. There was no evidence of a sharp supply response from the shale sector. Halff said that prices are not the only thing that have increased, but also the fact Russian barrels are no longer on the western market, which means there is a supply shortage.
Saudi Arabia and the United Arab Emirates
Saudi Arabia and the United Arab Emirates may benefit from the price rise if they decide not to place more oil on the markets.
Saudi Arabia typically has 1.5 million to 2,000,000 barrels of oil per hour of spare capacity, or barrels that can quickly be moved onto the market and sustained over a period of times. The UAE also has spare capacity.
It is as simple as opening the vault for Saudi Arabia and oil will flow, according to Claudio Galimberti (senior vice president of analysis at Rystad Energie).
Learn more.
Green groups demand that renewable energy be used
Democrats and environmentalist groups see the recent US ban on Russian oil imports as an incentive to develop renewable energy.
The ban was announced during the same week that average gas prices in the U.S. hit record highs. Despite only importing a small fraction of oil from Russia, the ban was announced during President Obama’s speech. President BidenIt was acknowledged that the move would likely result in even higher prices.
Republicans and the fossil-fuel industry say the crisis is a sign that further fossil fuel exploration is needed domestically. However, Democrats and environmentalists argue that the economic pinch underscores the necessity to make the U.S. energy independent and invest in green solutions.
So what’s the alternative? [M]Most of my colleagues from across the aisle think that the best way to reduce exposure to volatile commodities is to increase your use, Rep. Sean Casten
Sean CastenRussian politics enflamed by gas prices, oil drilling Ukraine crises a chance for fossil fuels to be switched, lawmaker tells The Hill’s Morning Report. The Hill reports that Russia is poised for war.(D-Ill.), said The Hill in an Interview
Casten stated that if Russia bans imports, it will lead to an increase in domestic production of fossilfuels. This will mean that our country will become even more dependent on fossil-fuels. It will also mean that we will set the world ablaze for our children faster and be more exposed next time. Vladimir Putin
Vladimir Vladimirovich PutinHogan, Maryland legislator leaders agree to halt the state gas tax for thirty days Overnight Defense & National Security senators grill Biden officials regarding Ukraine Biden warns Democrats that it would be a sad two year’ if Republicans gain control of Congress.Or [Saudi Crown Prince Mohammed Bin Salman]Or anyone else who does something that gooses global oil markets. I can assure you that there will be a next.
John Paul Mejia is the national spokesperson for Sunrise Movement. He said that the Ukraine crisis has shown how dependence on oil can completely destabilize the lives of workers in our country.
Mejia criticised what he called talking points of the oil and natural gas industry in the U.S., which claim energy independence can be achieved by relying more on oil and gasoline, just American. That’s a false solution.
Friends in high places Administration members have also indicated that they see the crisis as a signal of the need for transition.
This conflict [in Ukraine]Amos Hochstein (State Departments energy envoy) said Tuesday at CERAWeek that our transition should be doubled or tripled.
President Biden tweeted Tuesday that the transition to renewable energy would be the long-term solution for the energy crunch.
He wrote that loosening environmental regulations will not lower prices. However, transforming our economy to run on clean energy powered electric vehicles will ensure that gas prices are not an issue. It will ensure that tyrants such as Putin can no longer use fossil fuels for weapons.
You can read more about the push here.
VIRTUAL EVENT NOTIFICATION
A Connected and Sustainable SocietyWednesday, February 16 at 1:00 PM ET/10:00AM PT
Digitalization is changing the way we learn, live and work. High-powered networks are at the heart of these transformations, allowing for data optimization and connectivity. For conversations with Steve Clemons, join The Hills Steve ClemonsSen. Deb Fischer
Debra (Deb), Strobel FischerOvernight Energie & Environment House agrees that Russian oil will be banned Capito is eyeing the Senate GOP leadership race Gibbons and Mandel lead the Ohio GOP Senate primary field: Poll MORE (R-Neb.), Rep. Robin Kelly
Robin Lynne KellyOvernight energy & environment house agrees to ban Russian crude oil Black women legislators commend Biden’s commitment for Supreme Court nominee The Hill’s Morning Report – Presented by Uber-New vaccine mandate in NYC; Biden/Putin showdown (D-Ill.), Rep. Grace Meng
Grace MengOvernight Energy & Environment House approves Russian oil ban Asian American leaders push for a national museum of the own 91 House Dems urge Senate to expand immigration protections within the Biden spending bill (D-N.Y.)You can find out more Networks are essential for creating a more sustainable, equitable, and livable future.Register hereVirtual Event InvitationThe Future of EducationThursday March 17th at1:00 PM ET/10:00AM PT
AIR GOES TO A NEIGHBORHOOD
Friday’s new rule by the Environmental Protection Agency (EPA), imposes a mandatory reduction of air pollution in several states that blow downwind to their neighbors.
According to the rule, 26 upwind states will be required by the proposed rule to reduce ground-level oxygen, which is the main component of smog, from power plants that eventually reach downwind states.
The proposal would include the addition of electric generator units in half of the U.S. States beginning in 2023. It would also include new emissions standards to address industrial pollutants that have a negative impact on downwind air quality, which will be implemented in 23 states starting in 2026. According to the agency, the changes will prevent approximately 1,000 premature deaths by 2026 and reduce the number of asthma attacks by one million.
Kathleen Riley, an Earthjustice attorney, said to The Hill that the organization finds a lot to love in the proposal.
A similar rule was originally proposed by Trump and implemented last year by the Biden administration. However, Riley stated Friday that the proposal goes further than that, applying stricter ozone standards established in 2015 to Friday.
It is based on the EPAs approach, but does more. This reduces emissions from power stations and it requires reductions in eastern and western states.
Learn more.
ON TAP NEAREST WEEK
On Wednesday
- The Senate Environment and Public Works Committee is hosting an Hearing for oversightrelated to Clean Water State Revolving Fund Loan Fund
- The Senate Armed Services Committee will host a HearingOn the health effects of toxic fumes emitted from burn pits or other airborne hazards
- The House Agriculture Committee will be holding a HearingClimate change: The role of Agriculture Department programs
- The House Oversight Committee will host a HearingThe role of forest management in fighting wildfires. Randy Moore, chief of the Forest Service, is scheduled to appear.
- The House Transportation and Infrastructure Committee is holding a HearingOn the proposals for a Water Resources Development Act of 2022
- The House Science, Space and Technology Committee will host a HearingBioenergy
Thursday
- The Senate Energy and Natural Resources Committee (Senate Energy and Natural Resources Committee) will hold a confirmation hearingKathryn Huff to be the Energy Department’s top nuclear energy official
- The House Natural Resources Committee will host a HearingThe Marshall Islands nuclear legacy of the United States
WHAT WERE YOU READING?
- ESG Fund Bosses Feeling More Pressure to Axe Gas as War Rages (Bloomberg)
- Shell, BP halt German diesel sales because of scarcity fearsReuters)
- Glitter is really bad for the environment (Find out more)
- One man’s quest for California’s most vulnerable public lands.SFGate)
- Lujan Grisham signs an executive order focusing on the building of a clean hydrogen economy (KOAT)
ICYMI
Finally, something a little offbeat and unorthodox:Rock lobster
That’s all for today. Thank you for reading. Check out The Hills Energy & Environment pageFor the most recent news and coverage. We look forward to seeing you Monday.