OPEC stayed the course this week, sticking to their planned 400,000-barrels-a-day production increase and did not give in to the fears surrounding the recent price crash due to the omicron variant virus worries.
The administration that canceled the Keystone Pipeline and tried to ban all oil drilling on federal land now wants the “Build Back Better” bill, raising oil and gas royalties on tax rates from 12.5% to 20% for onshore-offshore production, while higher royalty rates of 16.67% would be increased to 25%.
The bill would permanently prohibit offshore drilling in the Atlantic, the Pacific and the eastern Gulf of Mexico.
The funny thing about that is the release will be mainly sour crude oil. Not only will this oil end up in places like India and China, but the quality of the oil was also sour and is dirtier than a lot of the oil that the U.S. is now producing.
Shale oil is a much lighter oil and has less impact on greenhouse gas emissions.
So now the administration is celebrating OPEC’s collusion with Russia while it continues to take steps to hurt U.S. oil and gas production — and continues to accuse them of wrongdoing and tell investors to keep their money away.