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US Plans To Reduce Gasoline Prices

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The Biden Administration is considering tapping the Strategic Petroleum Reserve as a potential tool to bring down the gasoline prices
Selling millions of barrels from the SPR may do precious little to impact the price of gasoline directly
·If the Administration were to opt for an SPR sale to increase the availability of crude, it could likely release up to 60 million barrels of crude oil
·The Biden Administration is considering tapping the Strategic Petroleum Reserve as a potential tool to bring down the gasoline prices in America that have hit a seven-year high this year.
However, selling millions of barrels from the SPR may do precious little to impact the price of gasoline directly, traders and analysts say.
A sale from the SPR could be one of “tools in the arsenal”—as U.S. President Joe Biden said this weekend – which the Administration could use to relieve the burden on households who have been paying in recent months the highest prices at the pump since 2014.
Yet, the U.S. may be able to release up to a tenth of the current stockpile in the SPR, traders have told Bloomberg. That wouldn’t be enough to bring down gasoline prices as much as the Administration possibly hopes, they warn.
Moreover, most of a potential sale could consist of sour crude grades, which currently are not the favorite of refiners because they need more natural gas—whose prices are much higher now—to process those sour grades into fuels.
SPR Release On The Table After OPEC+ Snub
“The SPR is certainly on the table as an option. The president will have more to say about that,” U.S. Energy Secretary Jennifer Granholm said on Friday when asked what America can do now to reduce gasoline prices.
President Biden is considering a release from the SPR as a possible move to reduce gasoline prices in the United States, after OPEC+ ignored on Thursday calls for putting extra barrels on the market, Secretary Granholm told Bloomberg last Friday.
The President could announce measures to address high gasoline prices as soon as this week, Granholm told MSNBC in an interview on Monday.
“Hopefully there will be an announcement or so this week,” Granholm told MSNBC, referring to the President’s possible moves.
“He’s certainly looking at what options he has in the limited range of tools a president might have to address the cost of gasoline at the pump, because it is a global market,” the energy secretary added.
Gasoline Prices Highest Since September 2014
Meanwhile, U.S. gasoline prices continued to climb despite the end of driving season two months ago.
In the week to November 8, “The price at the pump continued its slow climb, rising two cents on the week, with the national average for a gallon of gas hitting $3.42,” AAA said on Monday. That’s the highest since September 2014.
“The latest decision by OPEC and its oil-producing allies to maintain their planned gradual increase in output will not help lessen supply constraints, so any relief will most likely have to come from the demand side,” according to AAA.
Shorter days with the end of the daylight saving time could decrease demand for gasoline in coming weeks, AAA spokesperson Andrew Gross said.
SPR Sale Will Likely Be Up To Three Days Of U.S. Petroleum Consumption
If the Administration were to opt for an SPR sale to increase the availability of crude, it could likely release up to 60 million barrels of crude oil, after accounting for mandatory sales pre-approved by Congress and the minimum volumes needed at the storage sites, a source at one of the world’s top oil trading houses told Bloomberg on condition of anonymity.
As of November 5, the SPR held 609.4 million barrels of crude oil, of which 252.5 million sweet crude and 356.9 million sour crude.
A release of up to 60 million barrels in theory would cover around three days worth of total U.S. petroleum consumption, which was 20.5 million barrels per day (bpd) in the pre-pandemic 2019, per EIA data.
According to analysts, an SPR sale wouldn’t do much to reduce prices at the pump and relieve the burden on households amid inflationary pressure for all other goods.
“Other Tools In The Arsenal”
President Biden hinted during the weekend of “other tools in the arsenal” to tame rallying gasoline prices.
“There are other tools in the arsenal that we have to deal — and I’m dealing with other countries; at an appropriate time, I will talk about it — that we can get more energy in the — in the pipeline, figuratively and literally speaking,” President Biden said, referring to the oil market after OPEC+ snubbed the U.S. Administration’s call for extra supply.
On Monday, eleven Democratic Senators wrote a letter to President Biden “to express our support for your efforts to help families and businesses across the nation who are struggling to cope with soaring gasoline prices.”
“Continued U.S. exports and overseas supply collusion could be devastating to many in our states, contributing to higher bills for American families and businesses,” the Senators, including Elizabeth Warren, said.
“In light of these pressing concerns, we ask that you consider all tools available at your disposal to lower U.S. gasoline prices. This includes a release from the Strategic Petroleum Reserve and a ban on crude oil exports. We hope you will consider these tools and others to make gasoline more affordable for all Americans,” the Senators wrote.
Faced with the highest gasoline prices in seven years and one of the worst fears of every American president—high prices at the pump, the U.S. Administration with the long-term clean energy agenda is now scrambling to provide immediate relief to people’s gasoline and energy bills.

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Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

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Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended

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Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

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Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.

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Administrator Assures Community Of Improved Power Supply

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The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.

By: King Onunwor

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