Washington Update From U.S. Oil and Gas Association

[Note: Tim Stewart, President of the U.S. Oil and Gas Association, sends periodic updates about current events taking place related to energy in the nation’s capital. Tim has graciously enabled me to share these updates with subscribers here. Enjoy.]

Washington Update:

March 17, 2023

Will the Biden administration start buying oil for the SPR?

After draining the Strategic Petroleum Reserve to help Democrats in the mid-term election, last October the White House said they would buy back oil for the SPR when prices at or below about $67-$72 per barrel.  

As Bloomberg commodity analysis Javier Blas states, “The whole WTI futures curve is now below the bottom range of $67-$72 a barrel given by the White House to buy crude for the SPR. That's the **whole curve, including the contract for immediate delivery**.”

Will the Biden administration really follow through on their claim they will buy back oil?  We’ll believe it when we see it. 

Biden’s reapproval of the Willow Project comes with significant downsides for Alaska

This week, the Biden administration reapproved the development of the ConocoPhillips Willow Project in the National Petroleum Reserve-Alaska. It’s a re-approval because it was approved in 2020, but the Administration has been slow walking it since then.