OKLAHOMA CITY – The price for gasoline is up nationwide as American consumers feel the squeeze from global sanctions against Russia. Basically, oil and gas production is affected.

Last month, Oklahoma Gov. Kevin Stitt wrote a letter to President Joe Biden days after Russia invaded Ukraine, urging the administration to embrace domestic oil and gas production and halt the importation of Russian energy products. The first-term Republican demanded that Biden relies on energy-producing states like Oklahoma to step up domestic production, a call echoed by other state leaders like Sen. Jim Inhofe.

“Every administration since 1973, Republican and Democrat, prioritized American energy independence – until yours,” Stitt wrote. “The recent events in Ukraine are yet another example of why we should be selling energy. Mainly to our friends and avoid buying it from our enemies.”

The U.S. is not a major buyer of Russian oil, nor does it import any gas from the country. Still, in early March, the U.S. banned the import of Russian oil, liquefied natural gas and coal, citing the nation’s “strong domestic energy infrastructure” as a reason why the country could take the step to reduce its dependence on Russian energy.

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Source: PBS

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Gas prices are finally dropping back to Earth.

The price of a gallon of regular gas averaged an all-time high of $4.33 in the U.S. Prices had risen a staggering 22% between February 21 and March 14. This is the largest jump ever recorded in a three-week span.

Now, the market is swinging the other way. On Monday a gallon of gas cost $4.11 on average across the entire country. Experts expect prices to keep on dropping in the days ahead.

“Gas prices have continued to move in the right direction — down — saving Americans approximately $100 million every day compared to when prices peaked about a month ago,” Patrick De Haan, head of petroleum analysis at GasBuddy.

De Haan added that “more good news is on the horizon: The national average this week will likely fall back under the critical $4 per gallon mark.”

Prices have already fallen below that threshold in 28 states. The lowest prices in the country can be found in Missouri and Oklahoma, where one gallon of regular gas costs an average of $3.67.

To help lower prices for consumers, a handful of states including Maryland and Georgia have paused their gas taxes. Some lawmakers have floated sending cash to Americans to offset high prices — like stimulus checks for gas. Last week, the Biden Administration announced that it would release up to 180 million barrels of oil from the United States’ strategic reserve in order to bring down prices.

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Source: Money.com

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Triple-digit oil prices in the U.S. continued for the second month in a row. This is leading to increased operations and land deals in the nation’s most active oilfields in southeast New Mexico and West Texas. So what’s the current strategy in place to lower gas prices?

The Permian Basin saw rising fossil fuel activity throughout 2022 amid increased demand as COVID-19 subsided.

The invasion of Ukraine created further supply strains as it led to international condemnation of Russian leader Vladimir Putin and the removal of his country – the world’s second-highest oil producer – from the global market.

That supply disruption sent gas prices at the pump to $4 or more throughout New Mexico and the U.S. in the weeks since.

Some of the world’s largest oil and gas companies recently announced plans to increase their output from the Permian. This is with Chevron being the latest in announcing via an April 1 news release that it would increase its production in the region by 10 percent, amounting to about 1 million barrels a day by 2025.

That would be about a fifth of the about 5 million barrels a day produced in the Permian in 2021. Besides , this is per data from the U.S. Energy Information Administration.

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Source: Carlsbad Current-Argus

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The number of active oil wells in Colorado has nearly doubled in the last year. Is it a sign that high prices are bringing the industry back to life? What’s next with the Colorado oil production?

Production in Colorado had fallen 11 percent in 2021, continuing a slide that began as the COVID-19 pandemic dramatically reduced demand. New regulations made drilling more costly and investors started requiring more caution from producers.

Companies in Colorado pumped 152 million barrels of oil last year. This is according to the latest data from the Colorado Oil and Gas Conservation Commission. That’s the lowest production since 2017, and more than 20 percent off record numbers in 2019.

But this year, the war in Ukraine has disrupted energy markets and demand is rising as the pandemic eases, sending prices over $100 a barrel in recent weeks, well beyond what’s needed to profitably drill wells in Colorado. The number of drill rigs opening new wells in Colorado jumped from eight in March 2021 to 14 at the end of this month, according to Baker Hughes. That indicates more oil production is on the way.

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Source: CPR News

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Oil and natural gas industry is a global commodity– their price is a result of supply and demand. Geopolitical disruptions like Russia’s brazen invasion of Ukraine cause unpredictability and extreme volatility in global energy markets.

International conflict and inflation at home are serious issues, and our industry is working hard to meet the moment while ensuring that we are responsibly producing and providing energy to the market in a way that meets current demand and future projections.

Domestic production supports national security, economic security, and global environmental goals.  But, in order for domestic production to help us fully realize these goals, it must be in a way that meets market demand, rather than reacting to volatility that could cause oversupply.

As demand continues to grow, so does our current and planned production. US oil production grew last year and output could rise as much as 900,000 barrels per day in 2022.  In the Permian Basin, our most prolific oil-producing basin, record-high oil production was just reached this month.  The Marcellus, the most prolific natural gas basin in the country, is also at record high production.

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Source: Real Clear Energy

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