• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 1 day "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 10 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 7 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 10 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 11 days Goldman Betting on Cryptocurrencies
  • 14 days Сryptocurrency predictions
Urban Areas See Opportunities In Cooling Tech To Combat Climate Change

Urban Areas See Opportunities In Cooling Tech To Combat Climate Change

Sustainable urban development is projected…

China's Extraordinary Covid Protests

China's Extraordinary Covid Protests

Extraordinary protests across China appear…

Gasoline Prices Continue To Plummet In The U.S.

Gasoline Prices Continue To Plummet In The U.S.

After a relentless month’s long…

Editorial Dept

Editorial Dept

More Info

Premium Content

Why U.S. Shale Is Right To Choose Shareholders Over Production

American shale producers are right to avoid the temptation of pumping oil with WTI in the $1100-$110 range. Rewarding shareholders isn’t just about appeasement, which is long overdue, it’s about the elephant in the oil production room: Refining capacity. 

Refining capacity was falling even before the pandemic. Since January 2020, we’ve lost 3 million bpd in refining capacity, worldwide. In 2020, we lost 410,000 bpd in net global refining capacity. In 2021, there were more refinery closures than there was new capacity, leading the IEA to announce that global refining capacity had fallen for the first time in three decades. In 2021, global refining capacity fell by 730,000 barrels per day–accounting for losses after new capacity was added. 

For June, according to the EIA, the U.S. will be refining at 95% of its capacity because refining margins (crack spreads) are so high and refiners are extremely motivated to refine. Still, that’s a million bpd less than pre-pandemic 2019. Those refineries that the pandemic shut completely won’t be coming back; others are only recovering slowly. There’s little investment in refineries right now. No one has the long-term appetite for this. 

Now, more than ever, oil supply is a geopolitical game from which traders are getting rich espousing an oil supply shortage when the physical market really suggests that the bigger problem is refining capacity. 

Yes, OPEC…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News