Tag: oil

House Passes E15 Bill as Government Panics Over Energy Crisis Begins

Congress is pushing nationwide year-round E15 gasoline because they are worried about fuel supply disruptions and soaring prices as the war cycle intensifies. They call it “consumer choice” and “energy independence,” but when you strip away the political marketing, what they are really doing is diluting the fuel supply because they are terrified of shortages and price spikes.

The House just passed H.R. 1346, the Nationwide Consumer and Fuel Retailer Choice Act, by a vote of 218-203. The bill would permanently allow year-round sales of E15 gasoline nationwide. E15 is gasoline blended with 15% ethanol instead of the standard 10%. Congress and the EPA are presenting this as some patriotic victory for farmers and consumers while pretending Americans are not noticing what is really taking place.

The government keeps saying E15 lowers prices at the pump. Of course, it does on paper. You are blending more ethanol into the fuel supply. Ethanol contains less energy per gallon than pure gasoline. That means your mileage declines and your tank empties faster. People end up buying more fuel more often while politicians brag that prices “fell” a few cents per gallon. Americans are paying more for less while Washington pretends this is economic progress.

The EPA openly admitted the purpose behind the emergency waivers was to “prevent disruption in America’s fuel supply” as the Iran war pushed energy markets into panic. They are not doing this because the economy is strong. They are doing this because they are worried about supply itself.

“President Trump is unleashing American Energy Dominance, and today’s action will directly lower prices at the pump and gives a clear demand signal to our domestic biofuels producers. Allowing the summer sale of E-15 will provide drivers more options at the pump, and deliver a bigger domestic market for American farmers,” said U.S. Secretary of Agriculture Brooke L. Rollins. The government is congratulating itself for putting lipstick on a pig. Trump spent years condemning Biden’s energy policies that led to elevated prices for different reasons. Washington does not want voters to look at an $ 8-per-gallon situation and suddenly realize that government policy has failed yet again because politicians continually act in their own self-interest while jeopardizing the entire country. The people always suffer when government instigates war. Quite unfortunate as Trump promised to keep America out of the Middle East, but somewhere along the way he morphed from a businessman into a politician. Human nature is consistent.

Governments dilute and stretch what they can at the beginning of a crisis. They lower standards quietly while telling the public everything is under control. You see it in currencies, banking, food quality, and now fuel. The objective is always the same: make a limited supply appear larger. Could this improve consumer sentiment regarding energy? People are still going to pay more at the pump. The end result is higher prices which equates to angry and fearful consumers. It is absolutely insulting for our overlords to question our intelligence in this manner. They genuinely believe we are too stupid to notice.

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Iraq’s Oil Collapse Sparks Race For New Export Routes

  • Iraq’s oil production has collapsed to just 1.39 million bpd after the Strait of Hormuz blockade stranded exports.
  • Baghdad is urgently trying to revive northern export routes through Turkey, including the Kirkuk-Ceyhan system and a new Kirkuk-Nineveh pipeline.
  • China is re-emerging as a major strategic player in Iraq’s energy infrastructure, with Chinese firms heavily involved in Baghdad’s new north-south pipeline expansion.

April was indeed the cruellest month for decades for Iraq’s crude oil production, with an average of 1.389 million barrels per day (bpd) over the period. This compares to a monthly average of 3.47 million bpd from January 2002 to the end of March this year, and an average of over 4.1 million bpd in the three months leading up to the onset of the U.S./Israel-Iran War on 28 February. The last time oil production fell to the current level in the country was in the early 2000s, during and immediately following the 2003 U.S.-led invasion. Even for a diversified economy, this would spell bad news, but for Iraq, it is existential, with over 90% of its annual budget historically coming from oil and around 95% of that black gold having to pass through the still-blockaded Strait of Hormuz before it is monetised. The effective closure of that key export route meant that Iraq’s domestic oil storage tanks quickly filled to maximum capacity, and because it has extremely limited options to transport its crude elsewhere, it has been forced to shut down production wells entirely. As disastrous as it is now, even worse may be to come soon, as these shutdowns can cause permanent damage to wells through a loss of reservoir pressure, water infiltration, and corrosion, among other factors. In Iraq’s case, many of its biggest mature southern fields are highly susceptible to these problems. This is why the race has been on in Baghdad to secure other export options, most notably now, pipeline options in the north, but these bring their own sets of problems with them.

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Carney Calls Alberta Referendum a ‘Dangerous Bluff’, as Oil-Rich Province Set To Vote on Leaving Woke Canada

Alberta separatism is a reality, despite establishment figures such as Carney trying to deny the facts.

As the oil-rich province of Alberta gears up for the October referendum on separating from globalist Canada, the pushback from defenders of the status quo is relentless.

Liberal Prime Minister Mark Carney is one of them.

After branding Alberta essential to Canada, Carney has criticized its upcoming referendum as a ‘dangerous bluff’, comparing it to the Brexit process of the UK leaving the European Union.

BBC reported:

“Carney, who led the Bank of England during Brexit, said that 10 years on from the referendum the UK was ‘trying to undo what people didn’t think they were voting for, but what they ended up having’.

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Britain Desperate for Oil

Britain is now discovering you cannot dismantle your industrial and energy base, wage war on domestic production, impose endless climate regulations, and still expect to maintain a functioning economy. Reality eventually arrives no matter how many politicians attempt to legislate against it.

The UK is quietly loosening oil and gas restrictions because the country is becoming desperate. After years of aggressively pushing Net Zero policies, discouraging North Sea investment, raising windfall taxes on producers, and pretending renewable systems alone could carry an advanced industrial economy, Britain is being forced to confront the simple reality that energy shortages destroy economies from the inside out.

The North Sea once represented one of the great strategic advantages for Britain. During the peak years around the late 1990s and early 2000s, the UK was producing nearly 4.5 million barrels of oil equivalent per day. That production has collapsed by more than 70% over the past two decades. At the same time, Britain became increasingly dependent on imported energy while shutting down domestic capacity.

What politicians never understand is that energy is not just another sector of the economy. Energy is the economy. Every industry depends upon it. Food production depends on it. Transportation depends on it. Manufacturing depends on it. Once energy prices rise high enough, inflation spreads through the entire system because energy sits underneath every layer of economic activity.

Britain now faces exactly the trap I warned Europe was heading toward. Deindustrialization combined with rising debt and declining living standards. Manufacturing weakens, capital flees, energy costs rise, and governments respond with more taxation and regulation which only accelerates the collapse further. This becomes a vicious cycle.

The desperation is now becoming obvious. The UK government is reportedly reconsidering restrictions on North Sea drilling and attempting to stabilize investment conditions because energy firms were already beginning to abandon projects entirely. The punitive tax structure imposed on producers created massive uncertainty while investment dried up. Companies simply stopped committing capital because governments kept changing the rules in the middle of the game.

Europe is in a depressionary phase while capital continues moving toward countries with stronger energy and industrial positions. You cannot build an economy entirely on financial services, bureaucracy, migration, and government spending while destroying the productive base underneath society itself.

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Graham on Iran: I Want to “Hurt Them More” by Wrecking Oil Industry

Israel-First GOP Senator Lindsey Graham wants President Trump to order more bombing of Iran’s civilian infrastructure and to “hurt them more,” and apparently doesn’t care that Republicans might well lose the midterms because of Trump’s growing unpopularity, largely because of the war in Iran.

As well, Graham told Meet the Press hostess Kristin Welker that Trump is comparable to Winston Churchill because of the president’s telling a reporter he doesn’t much care about Americans’ financial woes, and instead only cares about Israel and Iran’s supposedly obtaining a nuclear device.

Graham said he’d happily “give up” both houses of Congress to keep Iran from obtaining a nuclear weapon.

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US Treasury Extends Temporary Waiver for Vulnerable Nations To Access Russian Oil Stranded at Sea

More oil as the war drags on.

As the fragile ceasefire between the US and Iran still holds, with ‘serious negotiations’ being held, the effects of the closure of the Strait of Hormuz are still affecting oil prices and the energy security of many countries.

Today (18), Treasury Secretary Scott Bessent announced that the Donald J. Trump administration will extend for another month a waiver that allows the sale of Russian crude that is already loaded on tankers.

Politico reported:

“The move is aimed at keeping more oil on global markets and tempering crude prices as the war in Iran, now nearing its third month, continues to choke off shipping through the Strait of Hormuz. But critics have blasted the waiver as allowing Russia to profit from elevated oil prices and enriching Moscow’s war machine.”

“The general license from Treasury’s Office of Foreign Assets Control allows any country to purchase Russian oil already on the water for another month. It extends the sanctions relief, first issued in March and renewed in April, for a third month.

‘This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries’, Bessent said in an X post. ‘It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil’.”

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Trump Floats Making Venezuela The 51st State

First Canada, then Greenland… and now Venezuela?

President Donald Trump said Monday he is seriously considering annexing the South American nation as the 51st U.S. state, citing the country’s vast oil reserves and what he described as strong local support for his leadership.

In a telephone interview with Fox News anchor John Roberts, Trump mused that he is weighing the move for a nation that holds an estimated $40 trillion in oil resources.

“Venezuela loves Trump,” the president told the reporter.

The suggestion comes months after U.S. forces conducted a military operation in Venezuela in January that resulted in the capture of longtime President Nicolás Maduro and his wife, Cilia Flores. The couple was extradited to the U.S. to face narco-terrorism and weapons charges, effectively ending more than a decade of socialist rule that had transformed one of Latin America’s richest economies into an economic disaster marked by hyperinflation, mass emigration and the breakdown of public services.

Rather than installing opposition figure María Corina Machado, a Nobel Peace Prize recipient, as the new leader, the Trump administration supported the installation of Delcy Rodríguez—Maduro’s former vice president—as interim president. Trump has described the arrangement as “spectacular” and predicted a rapid economic turnaround.

Rodríguez’s government has moved swiftly on economic reforms. Within weeks of taking power, it enacted legislation opening the oil sector to privatization, dismantling core elements of the Chavista model that had dominated for more than two decades.

Meanwhile, commercial activity has accelerated thanks to Chevron, which signed two agreements expanding its participation in a joint venture with state-owned Petróleos de Venezuela SA in the Orinoco Oil Belt, Reuters reported at the time.

Venezuelan oil output is already rising.

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This Is Why the U.S. Can’t Use the Oil It Produces

The United States produces more oil than any other country in the world—averaging 13.3 million barrels per day (MMb/d) in 2024. But strangely, the U.S. also imports about 6.5 MMb/d of crude. This paradox confuses many Americans. Why doesn’t the U.S. just use its own oil? The answer lies in infrastructure mismatches, refinery design, trade economics, and federal laws that restrict the flow of domestic oil.

  1. 🧪 Light Oil vs. Heavy Oil: Not All Crude Is Created Equal
    The U.S. primarily produces light, sweet crude oil, which is low in sulfur and viscosity. Meanwhile, many American refineries—especially those built in the 1970s and 80s—were designed to handle heavy, sour crude, the kind that comes from countries like Venezuela, Mexico, and Canada.

Over 60% of U.S. refinery capacity is optimized for heavy crude processing.
Upgrading a single refinery to handle lighter crude can cost between $100 million to $1 billion.
This means that even though the U.S. produces oil, it’s the wrong kind of oil for its aging refinery infrastructure. So we export light crude (often to Asia and Europe) and import heavy crude to feed our refineries.

  1. 🏗️ Refinery Location and Infrastructure Gaps
    The second major problem is geography. Much of America’s oil production comes from inland fields like the Permian Basin (Texas/New Mexico) or the Bakken Formation (North Dakota). Meanwhile, many of the refineries that need oil are located on the East and West Coasts, far from those production zones.

California, despite being a top 5 oil-producing state, imports ~75% of its crude due to limited pipeline access.
The Keystone XL cancellation and other pipeline delays exacerbate this logistical mismatch.
It’s often cheaper to import oil from the Middle East or Latin America to coastal ports than it is to move domestic crude across the U.S. via expensive trucking, rail, or limited pipelines.

  1. ⚖️ The Jones Act: A Shipping Law That Backfires
    The Jones Act, passed in 1920, requires that any goods (including oil) transported between U.S. ports must use ships that are U.S.-built, -owned, and -crewed. These ships are vastly more expensive to operate than foreign tankers.

A Jones Act tanker costs up to $75,000 per day—nearly 3x more than foreign vessels.
This makes it cheaper to ship oil from Saudi Arabia to New Jersey than from Texas to New Jersey.
The law, originally meant to support the American maritime industry, now creates bottlenecks in the oil supply chain—making domestic crude more expensive to move than imported oil.

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Oil trader pockets reported $125 mn on suspiciously well-timed Iran bet – media

A massive crude oil bet placed shortly before reports of a possible US-Iran peace deal sent prices crashing and fueled suspicion of insider trading, after the position reportedly generated a $125 million profit in just over an hour.

According to market commentary platform the Kobeissi Letter, nearly 10,000 crude oil short contracts were placed around 3:40 AM (07:40 GMT) on Wednesday “without any major news,” describing the roughly $920 million position as unusually large for that time of day.

At 4:50 AM, Axios reported that Washington and Tehran were nearing an agreement to end the conflict and resume negotiations. Oil prices plunged more than 12% within two hours of the report, turning the short position into an estimated $125 million profit before the price later rebounded, the platform said.

During the US-Israeli war against Iran, prediction and traditional financial markets were flooded with suspiciously well-timed bets linked to airstrikes, ceasefire announcements, and diplomatic developments.

According to The Guardian, traders placed more than $1 billion in seemingly prescient wagers, including an $850,000 bet shortly before US strikes against Iran and around $950 million in oil futures hours before Trump announced a ceasefire in April. AP reported that the ceasefire announcement alone generated more than 413 million predictions and over $100 million in wagers across prediction markets within days.

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DOJ Investigating Suspicious Iran War Oil Trading Trend: Report

Ups and downs in the war with Iran may have been an opportunity for insiders betting on oil prices to make a killing, according to a new report.

The report from ABC News said the Department of Justice is taking a close look at several oil market trades that came just before critical moments in the war with Iran.

In four transactions under review, the Justice Department and the Commodity Futures Trading Commission are examining trades that netted more than $2.6 billion to individuals who bet oil prices would drop immediately before they did so.

From the start of the conflict on Feb. 28, the oil market has been up and down depending upon Iran’s strategy, America’s response, and expectations that oil might again flow freely.

The London Stock Exchange Group highlighted the trades, which began on March 23, when 15 minutes before President Donald Trump announced a delay on attacks against Iranian infrastructure, a $500 million bet was placed that oil prices would dip.

On April 7, only hours ahead of Trump’s announcement of a temporary halt in hostilities, a $960 million bet was placed that oil prices would fall.

On April 17, 20 minutes before Iran said the Strait of Hormuz would be opened, a $760 million bet was placed that oil prices were going to drop.

On April 21, 15 minutes before the ceasefire was extended, $430 million worth of bets was placed predicting oil prices were going down.

The Guardian noted last month that the conflict has been accompanied by unprecedented betting on events through online betting platforms, with many bets being precisely timed to events in the war.

For example, according to one complaint before the Commodity Futures Trading Commission, six so-called insiders reaped $1.2 million from betting when former Iranian Supreme Leader Ali Khamenei would be killed.

Reining this in through legislation is a complex task, if it can be done at all, one expert said.

“Is the problem that we don’t have legislation or that we don’t have enforcement capabilities?” Joshua Mitts, a law professor at Columbia University, said.

“To have a law that can’t really be enforced effectively given the technological limitations, it’s sort of putting the cart before the horse,” he said.

The oil price bets appear suspicious, another expert said.

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