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THE IMPORTANCE OF OIL AND GAS: Oil and gas revenues enrich energy companiesbut they also enrich energy-producing states and, in some cases, bolster state budgets, showing what is at stake with federal policies designed to slow or decrease new generation.
The financial benefits are particularly evident in New Mexico, as Bloomberg Remarks this morning, which is among the worst-performing states economically but where billions of dollars raised through energy production help offset.
Just this year, Democratic-led New Mexico launched both a state-funded free college program and a free child care program, as revenue from oil and gas royalties, rent and taxes are should increase the state’s balance sheet by several hundred million dollars over the next year.
Some numbers : New Mexico was the no. 2 oil-producing state last year, behind neighboring Texas, with which it shares the incomparable and rich Permian Basin (the Permian accounts for almost half of all daily crude oil production.)
The state accounted for 11.3% of total crude oil production last year, according to EIA data, and it was the no. 8 natural gas producer in 2020.
New Mexico also has abundant federal lands where operators drill for oil and gas, and it is particularly reliant on the industry as a source of funding.
Federal disbursements to the state from oil and gas leases accounted for 10.95% of the state budget for the period of the year from July 2019 to June 2020.
By comparison, for Wyoming, that number was 7.78%. For all other states with operational leases in their jurisdiction, it was less than 1%.
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SENATE TRADE EMBRACES GOURMET PRICE BILL Members of the Senate Commerce Committee are deadlocked on passing their own version of anti-price gouging legislation similar to an effort that cleared the House last week. Panel members voted 14 to 14 on the legislation, dubbed the “Transportation Fuels Market Transparency Act,” which, like the House effort, would seek to create greater price transparency and grant the FTC extra power to crack down on allegations of price gouging by energy companies.
Effort is almost certain to stall in the Senate equally divided, because it would take the votes of at least 10 Republicans to empty the room. Yet Senate Majority Leader chuck schumer promised to force a vote on the bill as a way to put Republicans on the record and tie them to the high prices.
EPA MOVES TO PERMANENTLY BLOCK MINE PROJECTS IN BRISTOL BAY: The Biden administration released a proposed ruling that would permanently block mining projects in Alaska’s Bristol Bay, allowing one of the presidents Joe Bidencampaign promises and dealing an almost certainly fatal blow to the development of the Pebble gold and copper mine project.
In a statement, the EPA said it had used its powers under Section 404(c) of the Clean Water Act which allows it to protect wetlands from mining waste or other dredged material.
In releasing its proposed determination, the EPA said it had evaluated nearly two decades of scientific and technical information and concluded that the project could cause “unacceptable adverse effects on salmon fishing grounds” in certain waters of the Bristol Bay.
“The Bristol Bay watershed is a shining example of how our country’s waters are essential for healthy communities, vibrant ecosystems and a thriving economy,” said the EPA Administrator. Michael Regan mentioned.
The news comes as the Biden administration has long sought to block development of the mine, including through a court order last fall.
The Pebble Mine project has also drawn opposition from some high-profile Republicans and right-wing activists under the Trump administration, including Donald Trump Jr. and host of Fox News Tucker-Carlsonwho in August 2020 were part of a small group urging the former president to block further actions on Pebble Mine.
ATLANTIC TO SEE ANOTHER RECORD HURRICANE SEASON, NOAA FORECASTS: The National Oceanic and Atmospheric Administration Published its annual hurricane season outlook this week, which predicted another very active season ahead. In total, forecasters said they expect to see between 14 and 21 named storms form this summer. Forecasters say up to 10 of them will become hurricanes, while three to six are likely to become “major hurricanes” with winds exceeding 110 mph.
The report also marks the seventh straight year NOAA has predicted a busier than usual hurricane season, more than doubling the second-longest span of just three years.
DOE ANNOUNCES NEW NOTICE OF SALE OF ITS EMERGENCY RESERVES: The Ministry of Energy Published another sale notice this week for up to 40.1 million barrels of crude oil from its strategic petroleum reserves. The announcement is in line with Biden’s announcement earlier this year to release one million barrels of crude a day for up to six months, as part of his administration’s push to lower prices. gas amid rising demand and Russia’s war in Ukraine. In its advisory yesterday, the DOE mentioned this sale will include 1.1 million barrels of sweet crude from June 21 to June 30 and 39 million barrels of sour crude from July 1 to August 15.
$9 NATURAL GAS TERMS TERMS CUT: Natural gas prices rose above $9 per MMBtu this morning, continuing a bullish momentum not seen in the market since 2008.
Government and private sector analysts said demand associated with filling historically low storage levels, driven by above-normal drawdowns due to prolonged cold temperatures, is a factor driving up prices, along with higher demand for feed gas to support LNG exports.
Richard Meyervice president of energy analysis for the American Gas Association, noted in a recent briefing another factor at play: rising coal prices.
“There is a good connection between the two products in the electricity market,” Meyer said. “Higher coal prices are not necessarily predictive of higher natural gas prices, but they can be indicative of natural gas price levels that may be needed to make an economic decision to switch from gas to coal for generation. electricity.”
EPA AIR NOMINEE HAS WIDE SUPPORT: Joseph GoffmanBiden’s nominee for deputy administrator of the EPA’s Bureau of Air and Radiation, enjoyed broad support from various interest groups during his nomination hearing before Environment and Public Works this morning .
Goffman, who is currently the bureau’s deputy senior deputy administrator and previously worked as the Democratic chief counsel on EPW, got the endorsement from the Truck and Engine Manufacturers Association yesterday.
The EMA, which lobbied the EPA to avoid finalizing the more stringent “Option 1” of its proposed rule regulating nitrogen oxide emissions from medium and heavy-duty vehicles, said that it was committed to a zero-emission vehicle future and that Goffman’s leadership could help “set the framework for the commercial trucking industry’s transition to ZEVs.”
Environmental group Evergreen Action called him “a good person to lead the OAR”, while the United Mine Workers of America and the Renewable Fuels Association also backed him.
BANK OF AMERICA SUBSIDIES ELECTRIC VEHICLES FOR EMPLOYEES: Bank of America will help employees with the costs of purchasing or leasing an electric vehicle under a new compensation program, Bloomberg reported.
Employees who purchase an electric vehicle will receive a $4,000 reimbursement from the company, or $2,000 for leases.
the wall street journal TotalEnergies to buy stake in US wind and solar company as part of green energy promotion
Bloomberg The European snub against Russian oil seems to be gaining momentum
New York Times Lamented victim of the heat wave: the mango, the king of fruits in India
Reuters Stellantis and Samsung SDI to Build New JV Battery Plant in Indiana
THURSDAY | MAY 26
10:00 a.m. 216 Hart The Senate Committee on Agriculture, Nutrition and Forestry will hold a hearing on the challenges and opportunities facing farmers, families and rural communities in the United States.
4:00 p.m. The Baker Institute Center for Energy Studies will host a online seminar to answer the question “What about prices at the pump?” »