/biz/ - Business & Finance

Nice to see Russia taking advantage of their flair stacks instead of sending anything over 20% of Nordstream capacity. People in Finland are who know nothing about natural gas are freaking out and thinking this is going to be a Chernobyl-lite event.. let them cower in fear and not use rationale to dictate resolutions, as has been the case since the war outbreak.

Even less reliant Nat gas countries like Spain (who source from Algeria) are telling public businesses to not AC cool below 27c inside.. shit is just getting started and I think Dr. Anass Alhajji will be vindicated on his call for fireworks this month..

Speaking of him, at 28:30 of the video i posted >>50716048 he gave a alternative take on the SPR releases that we don’t hear from Erik Townsend or other energy market analysts.. that the TYPE of crude being drawn from SPR is actually heavy crude, which is desired by the refiners, whereas the 8.7M bpd produced in the US is “tight oil” aka light sweet, which doesn’t not need as much refining and has less locked-in capital risk which results in flexible production, and a reduction in WTI volatility. So them drawing the heavy sour crude apparently isn’t that much of an issue since the original SPR intention was to mitigate external oil demand pressures (main cause of 1970s energy crisis), and these foreign refineries in China or India desire the heavy crude anyways. And Dr. Alhajji also goes on to explain that the US doesn’t actually “need” the SPR to have high volumes anymore due to the decade-long domestic shale producers picking up the slack (Marcellus shale production is stalling however..).

So basically he’s saying the US shale patch is robust enough that we don’t need to worry about SPR drains, since the US can adequately meet its own domestic demands. I’m little better than a layman compared to Dr. Alhajji, but I can’t help but think that’s a bit risky to assume shale has the ability to bail out without fail.