Tag: oil

B.C.’s oil tanker ban exposed: Why U.S. oil gets a pass but Alberta doesn’t

B.C.’s oil tanker ban is once again under scrutiny as questions mount over why it restricts Alberta crude while allowing foreign oil shipments to pass through the province’s coast.

Drea Humphrey argued that Premier David Eby has emerged as the biggest winner from the latest pipeline discussions between Alberta and Ottawa. “He’s getting exactly what he wanted,” she said, pointing to billions in promised infrastructure spending while any potential pipeline benefits remain years away.

Humphrey also questioned the province’s opposition to transporting Alberta oil by tanker, noting that large foreign vessels already travel the same waters. “How is that any less of a risk to the North Coast?” she asked.

Sheila Gunn Reid argued the federal approach ignores what she sees as an obvious alternative. She noted that American tankers from Alaska are permitted to use the same coastal route, saying, “The tanker ban only applies to Alberta oil. It doesn’t apply to American oil.”

Rather than reviving the cancelled Northern Gateway route to Kitimat, Gunn Reid said the proposed pipeline would head south to Vancouver, making it “infinitely more expensive and inconvenient.”

“I refuse to see this as the win everybody is touting it as,” she added. “It’s likely never going to get built.”

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DOJ urges states to join investigation into major oil companies

The Department of Justice (DOJ) and the Federal Trade Commission (FTC) are urging states to join a sweeping probe into major oil companies.

In a joint three-page letter sent to state attorneys general on Friday, federal antitrust regulators called for localized investigations into oil distributors for potential price-fixing, market monopolization and consumer fraud.

Federal antitrust lawyers are asking states to deploy all tools available, as they believe several companies are keeping prices high despite a steep drop in wholesale crude costs.

The coordinated federal-state push comes on the heels of an executive directive from President Donald Trump last week.

On Monday evening, the president accused oil corporations of “gouging” American drivers.

“Gasoline Retailers must get their Prices down, IMMEDIATELY! They’re too high considering that Oil is now at $68 a Barrel, and heading south,” Trump wrote on Truth Social. “The Retailers must quickly react to this statement, and so what they know is right — DROP YOUR PRICE FOR OUR GREAT AMERICAN PEOPLE!”

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“We’re Running Out of Oil”: The Lie Used to Support the Green Energy Agenda

In 1874, the state geologist of Pennsylvania, then the nation’s leading oil producer, warned that the U.S. had only four years of oil remaining. Forty years later, in 1914, when oil still hadn’t run out, the federal government said the U.S. had only a ten-year supply remaining. In 1940, the government announced that reserves would be depleted within a decade and a half.

An article published on August 3, 1966, reported that “a geologist stuck a figurative dipstick into the United States’ oil supplies Tuesday and estimated that the country may be dry in 10 years,” placing the projected date of U.S. exhaustion at 1976. The most widely cited doomsday prediction came in 1972, when the Club of Rome’s Limits to Growth report calculated that global petroleum reserves, growing at then-current consumption rates, would be exhausted within 20 years, implying oil would run out by 1992.

For the past several decades, the claim that oil will run out has been used to promote the green energy transition, framing the use of solar and wind power as necessary to preserve human life. However, the people and institutions promoting the “oil is running out” narrative are the same people and institutions advancing the climate crisis narrative. As with other forms of propaganda, new vocabulary had to be invented, including the term “peak oil.

Peak oil is the theory that global oil production rises to a maximum point and then declines irreversibly as a finite resource is depleted. Yale Environment 360 reported that Rystad Energy expects natural gas production to peak and decline as renewables take over, and that the International Energy Agency (IEA) in 2021 called on oil companies to immediately end oil prospecting and pull back on production as part of a net-zero pathway explicitly grounded in the “peak oil” framing.

The context of the Yale report, and the peak oil claim in general, is somewhat dishonest. If they really believed the world was running out of oil, they wouldn’t need to warn anyone or demand that we stop looking for or producing oil. Instead, they could simply wait ten or twenty years, or whatever the latest prediction is, until oil runs out naturally. At that point, the world would transition to green energy out of necessity, and the climate advocates would win. The fact that they continue pushing the issue suggests they don’t really believe oil is running out.

A Cambridge University Press academic text states plainly that the peak oil belief is a myth, “at least for the next decades,” and warns that peak oil framing can backfire on climate advocates because the oil industry echoes the peak oil argument to convince governments to approve, and even assist with, new fossil fuel projects whenever prices spike. Effectively, the article presents circular logic. It suggests that the peak oil argument should be abandoned to prevent the oil industry from drilling for new oil, which would prevent the world from running out of oil.

All of the peak oil predictions had a common flaw: they made straight-line mathematical projections, assuming that no alternatives or solutions would be found. Each treated known reserves and existing extraction methods as fixed, when, in practice, both variables continued to change simultaneously.

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California’s Self-Inflicted Squeeze

Energy Island

Long time readers may recall the many articles we wrote over many years highlighting the madness of California planners and policymakers. We were born and raised in the land of fruits and nuts and lived and worked there for over four decades.

About four years ago, we made our California exodus. At the time, we thought our coverage of the Golden State’s self-destruction would continue. We still have family and friends there who we visit from time to time. But, as we’ve found, without a front row seat to the big show we’re less inclined to gawk at the insanity. Articles on California have diminished to a slow trickle.

Today, however, following a recent conversation with a friend and California resident, we aim our sights at our former home state. Once again, California delivers a rich example of what happens when central planning outweighs economic reality. Here the specific example involves extreme intervention in oil and gas markets.

Policymakers in Sacramento, over many decades, have operated under the assumption that if petroleum production, refining capacity, and fuel consumption were made sufficiently difficult and expensive, the market would rapidly transition to their preferred alternatives. The California Air Resources Board (CARB) has been the principal vehicle for implementing this vision through increasingly stringent fuel regulations, emissions mandates, low-carbon fuel standards, permitting requirements, and compliance costs imposed upon refiners operating within the state.

Yet the result has not been the energy transition that was promised. Instead, California has become increasingly dependent on foreign suppliers for products it once produced itself. This trend is particularly problematic because California is effectively an energy island. Unlike much of the United States, California lacks extensive pipeline connections to the major refining centers along the Gulf Coast.

The state also requires unique fuel formulations that relatively few refineries outside California are equipped to produce. Consequently, California’s fuel market functions largely as a self-contained system. When local refining capacity disappears, replacement supplies cannot simply be redirected from Texas or Louisiana with the turn of a valve.

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Iraqi Police Discover $14 Million Stashed in Oil Minister’s Walls

Iraqi investigators carried out a major anti-corruption operation on Sunday, raiding several homes in exclusive Baghdad neighborhoods and arresting dozens of prominent public figures.

One of the most remarkable arrests was Deputy Minister of Oil for Distribution Affairs Ali Maarij al-Bahadly, whose home proved to have $14 million in cash stuffed into its walls.

The Iraqi judiciary released footage of investigators smashing through the wall of al-Bahadly’s pool house and discovering suitcases filled with American dollars and Iraqi dinars, plus a few luxury goods, such as a Rolex wristwatch.

The presiding judge of the Iraqi Central Criminal Court for Corruption, which has taken Bahadly into custody, said the suitcases full of cash were discovered during the “initial investigation” of the deputy oil minister. One can only imagine what the full investigation will look like.

Bahadly was directly in charge of selling and distributing refined fuel products across the entire country, which put him in close contact with traders, distributors, and numerous local officials. His position was considered exceptionally sensitive for this reason, although surprisingly enough, he was not caught with his hand in the biggest cookie jar.

That distinction belongs to another deputy oil minister, Adnan al-Jumaili, who had almost $86 million in cash when he was arrested in late May. The judiciary said that 70 properties, 21 vehicles, and 6.6 pounds of gold jewelry have been seized so far, in addition to the mountain of cash.

The anti-corruption crackdown was ordered by Iraq’s new prime minister, Ali al-Zaidi, soon after he was sworn into office by parliament in May. The Iraqi public was furious about corruption, mismanagement, and the reluctance of previous governments to take action against politically-connected officials.

The U.S. government also pressured the new prime minister to take action, and was specifically interested in Bahadly, who was targeted for sanctions by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) in early May for “abusing his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq.”

“Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people. Treasury will not stand idly by as Iran’s military exploits Iraqi oil to fund terrorism against the United States and our partners,” Treasury Secretary Scott Bessent said when announcing the sanctions in May.

Other officials caught up in the anti-corruption dragnet include Raed al-Jubouri, current health director and former governor of the province where Adnan al-Jumaili lives, and Alaa Samir al-Jubouri, a top official with the Iraqi Ministry of Electricity.

In addition to the arrests, Prime Minister al-Zaidi canceled a massive $764 million Baghdad airport project on June 14 over corruption concerns.

Some observers worried that al-Zaidi’s long-overdue anti-corruption drive would stall out, despite some big early headlines, for the same reason that previous efforts to curb rampant corruption have failed: Iraq’s governing coalition is fragile, and could completely disintegrate if some factions think they are being treated unfairly. Many of the factions in that coalition are heavily armed.

“I would expect the campaign to stop once pursuing it further begins to carry significant political, security, or systemic costs. For now, however, there are indications that additional arrests may still be forthcoming,” Arab Center for Research and Policy Studies researcher Harith Hasan told The National on Tuesday.

“Corruption in Iraq is politically protected. Thus, it becomes a very complicated task to fight it. It is linked directly to the nature and the composition of the political system,” media professor Ghalib Aldaamy told Al Jazeera News.

“Can you imagine that some of those who commit such crimes believe they are not doing something wrong because they hold a religious doctrine that states that public funds belong to no one?” Aldaamy asked.

Former Iraqi Federal Integrity Commission chief Mousa Faraj told Al Jazeera he was impressed by the prime minister’s effort so far, but added that $14 million stuffed in a minister’s walls is a fraction of the stolen money that investigators might find if they look in the right places.

“My advice to the prime minister is to start with serious and major old files. At the top of them are the Central Bank currency auctions in previous years, where corruption reached tens of billions of dollars,” Faraj said.

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China Eyes Iran’s Postwar Reconstruction In Bid To Lock Up Future Oil Supplies

Beijing is positioning itself to lead the post-war reconstruction effort in Tehran – a move analysts suggest could secure China long-term access to critical Iranian oil reserves.

The diplomatic groundwork was laid during a recent meeting in New Delhi between Chinese Foreign Minister Wang Yi and the deputy secretary of Iran’s Supreme National Security Council, according to Nikkei Asia. The talks underscore China’s broader strategy to expand its economic and diplomatic footprint in the Middle East amid the vacuum left in the wake of one failed US regime change and occupation war after another.

According to the report, Wang signaled Beijing’s long-term commitment to the Islamic Republic in the wake of prior weeks of heavy US-Israeli bombing, stating that: “China will continue to provide assistance to Iran while supporting reconstruction and peacebuilding efforts in the region.”

To date, China’s official involvement has largely centered on humanitarian logistics – at least according to its public-facing narrative.

This includes an upcoming deployment of emergency medical supplies to Lebanon, following recent Israeli military strikes in the country. However, observers note that the transition from humanitarian relief to large-scale infrastructure development is a key mechanism for Beijing to solidify energy security.

Nikkei Asia has issued the following commentary on China’s long-term plans in the Middle East:

Some observers argue that the U.S.-Iran war has strengthened Beijing’s presence in the Middle East. Rumi Aoyama, a professor at Japan’s Waseda University specializing in Chinese diplomacy, called China a “central hub where information on the situation in the Middle East was concentrated.”

China has dialogue channels with both Washington and Tehran, and it enjoys friendly ties with mediator Pakistan as an arms supplier. The Iranian and Pakistani foreign ministers frequently visited China during negotiations on ending the war to report on the situation.

The Iran war may also have worked to Beijing’s advantage in its dealings with Washington. With the U.S. prioritizing that conflict, it has been forced to ease up its pressure on China with regard to security and trade.

Yet Beijing has still welcomed the memorandum of understanding toward ending the war because stability in the Middle East is crucial for its energy security. Higher fuel and material prices caused by the war have dealt a blow to the Chinese economy.

Tehran, facing severe economic devastation and isolation from Western markets, has welcomed the Chinese overtures. High-level Iranian officials have made it clear they view Beijing not merely as an investor, but as a strategic anchor – akin to how defense ties with Russia have rapidly improved.

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Moscow Oil Refinery Faces Six-Month Shutdown After Relentless Ukrainian Drone Attacks

Moscow’s largest oil refinery is expected to remain out of service for at least six months after suffering significant damage in a series of Ukrainian drone attacks this month, according to Reuters, citing sources familiar with the matter, after Zelensky earlier vowed to bring the war to Russian territory. Kiev and the West are flirty with massive Russian retaliation at this point, which is precisely what Putin has vowed.

The refinery is located on the southern outskirts of the Russian capital and a major fuel supplier to the whole region. It was struck at least twice before this month – as dramatic and intense eyewitness videos captured – forcing operations to halt. Meanwhile via Newsquawk: 

Russia has reportedly asked for 50k tonnes of gasoline from Kazakhstan to help ease domestic fuel shortages, according to sources.

“Repairs will take at least six months,” one source said, describing the extent of the damage at the Moscow Oil Refinery.

The Gazprom Neft operatd facility processed 11.6 million metric tons of crude oil in 2024 and produced roughly 2.9 million tons of gasoline and 3.2 million tons of diesel fuel, according to public data.

It comes at a sensitive moment Russia continues to grapple with fuel supply challenges. At the moment, the Crimean peninsula is witnessing unprecedented government restrictions on selling gas to civilians, as well as half the population suffering an electricity blackout due to major Ukrainian drones strikes on Kerch port, and in particular damage to the large thermal power plant there.

Also, Russian Deputy Prime Minister Alexander Novak said this week that Moscow is considering a ban on diesel exports to stabilize domestic markets amid emerging shortages.

Ukraine’s Security Service (SBU) previously claimed responsibility for a June 16 strike that reportedly damaged the refinery’s primary oil-processing unit, described by Ukrainian officials as the plant’s “heart.” That’s when the facility first reportedly suspended operations following the attack.

Two days later, Ukraine launched another large-scale drone assault on Moscow. Russian authorities reported hundreds of drones targeting the capital, resulting in fires at multiple locations.

Since international crude oil prices surged following the war in the Middle East centered on Iran, Russia has boosted its oil revenues as not only prices have jumped – but Russian oil was made desirable in India again – thanks to American waivers for sales of Russia’s crude already loaded on tankers in connection to easing the global crisis due to the Iran war.

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Trump says oil reserves would run out in 4 weeks without Iran deal, risking ‘bedlam’

President Trump said Wednesday that oil reserves could have run out in four weeks if the Strait of Hormuz were not opened.

“We run out of reserves at about four weeks,” Trump said in France while at the Group of Seven summit, discussing the recent memorandum of understanding with Iran. “You know, there are reserves all over the world, and we would really run out, and there’ll be a time when you wouldn’t be able to get it.”

He said it would be “bedlam” if the oil ran out.

“What this does is it allows the ships to go,” he said of the Iran deal. “If we keep bombing, those ships won’t be going.”

It’s not entirely clear whether Trump was referring to U.S. or global oil inventories. The White House declined to elaborate, referring The Hill back to Trump’s original remarks.

In recent weeks, the International Energy Agency (IEA), an organization of oil consuming countries, has warned of declining oil reserves.

IEA head Fatih Birol said last month that oil reserve releases were helping to keep up the market supply, but he warned the reserves “are not endless.”

He indicated at the time that because of the war and closure of the Strait of Hormuz, only a few weeks of commercial inventories were remaining. 

The IEA also warned in May that oil demand would exceed supply this year.

At the start of the war, both the U.S. and other IEA countries announced they would release oil from their strategic reserves, putting 400 million additional barrels onto the market.

As part of the announcement, the Trump administration said it would release 172 million barrels from its strategic reserve. The releases were set to occur over a 120-day period.

At the time, the U.S. strategic reserve comprised about 415 million barrels of oil, meaning the release of an additional 172 million would eventually bring the reserve down to about 243 million unless barrels were added or subtracted for other reasons.

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Joe Biden Brags About Killing Oil Industry During Appearance on ‘Jay Leno’s Garage’

Joe Biden bragged about killing the oil industry during an appearance on ‘Jay Leno’s Garage.’

In January 2025, in one of his last acts as president, Joe Biden permanently banned offshore drilling across 625 million acres of US ocean.

This is after Biden blocked oil drilling on 10 million acres in Alaska in 2023.

Joe Biden also canceled the Keystone XL pipeline his first day in office.

President Trump overturned Biden’s ban on Arctic drilling, but he is facing legal hurdles.

Biden boasted about his unprecedented power grab and attack on domestic drilling as he flew down the highway in a vintage car.

“The other thing I was able to do, I made sure there could be no oil drilling off the East Coast, the West Coast and 150 miles off the Gulf of Mexico [unintelligible] too,” Biden said to Jay Leno.

There’s nothing more elitist than two multimillionaires who own vintage gas guzzlers laughing about killing the oil industry.

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Russian Governors Rush To Deny Fuel Crisis As Rationing Spreads

Russia’s authorities and regional governors are racing to assure residents there are no fuel shortages amid an intensified Ukrainian drone campaign at Russian refineries and fuel supply roads.

Ukraine has stepped up attacks this month on key fuel supply routes in its territories occupied by Russia, including Crimea and Mariupol. Several Russian regions have been experiencing fuel shortages as Ukraine hits Russian oil refineries.

Last week, the Moscow Times reported that some gasoline stations in Moscow and regions in northern Russia have started to cap fuel purchases per driver, in a move to prevent panic buying.

Officials are playing down the fuel crisis.

Alexander Drozdenko, governor of the northwestern Leningrad region, said this week that “Supplies are being delivered according to plan, there are no shortages,” as carried by Bloomberg.

Some isolated complaints about fuel shortages “do not reflect the overall situation,” the regional official said.

Governors all across Russia are looking to play down the extent of the crisis.

Meanwhile, earlier this month Russia admitted for the first time that its crude oil production is falling.

Russia’s crude oil production has declined since the beginning of the year as a number of local refineries are under unscheduled repairs and maintenance, Russia’s Deputy Prime Minister Alexander Novak said, in the first public acknowledgement from Moscow that its output is flailing.

“We have a number of refineries under unscheduled repairs. However, we are maximizing the use of the export infrastructure,” said Novak, who represents Russia at the OPEC+ meetings and at discussions about the alliance’s output.

Russia is preparing to sharply reduce crude oil exports this month as mounting refinery disruptions, fuel shortages, and Ukraine’s bombing campaign force Moscow to divert more barrels into the domestic market.

Exports from Russia’s western ports of Primorsk, Ust-Luga and Novorossiysk are expected to fall to roughly 1.7 million barrels per day in June from 2.5 million bpd in May, according to Reuters calculations based on preliminary industry and trading data.

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