The Global Energy Crisis

The Texas Energy crisis is global as short-sighted energy policies and green energy failures are causing a massive loss of oil and product supply as well as natural gas. Texas is still the heart of the global energy world and when it takes a hit the whole world feels it. Things are so bad that Texas has banned any Natural gas supplies leaving the state. That will cause problems for surrounding states and the rest of the world.

LNG exports from Texas will stop and that will have an impact on foreign spot markets. The heavily subsidized wind energy in Texas failed to bring down the grid and while some will tell you green energy is not to blame, well do not believe them. You cannot have an energy grid based upon the way things you may want them to be as opposed to reality. That lack of real vision and foresight may create a shock to the global economy unless they get things under control in Texas.

The overreliance on unreliable and less productive alternative energy sources like wind and solar could put the whole system at risk. While that can be part of the mix there are temptations to rely more on the unrulable. That is a major problem. We also have hope that the Biden Administration learns from this crisis and backs off its anti-fossil fuel agenda or the rest of our country will also be in the dark.

Fuel, Pump, Energy, Gas Pump, Gas Station, Diesel Fuel

Image Source: Pixabay

 The ramifications will be felt at the gas pump where pump prices were rising weeks before this energy crisis. With almost 4 million barrels of U.S. oil production shut-in and refineries shutting down so people can have natural gas heat in their homes and not freeze to death will cause big drops in distillate and gasoline supply. Crude supplies have been falling for weeks as well and last night the American Petroleum Institute (API) reported that U.S. Crude Supply fell by 5.8 million barrels last week. Distillate stocks fell by 3.5 million barrels, but gas stocks increased by 3.9 million barrels. Part of the crude draw was a major 3.0 million barrels drop at the Cushing delivery hub.

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