Where Does the World Stand with Respect to Oil Production at the Start of 2022?

Guest blog by S. A. Shelley: In early November of 2021, the UN’S COP 26 climate conference wrapped up in Glasgow with all sorts of politicians pledging this or that with respect to greenhouse gas emission reductions, renewable tech investments and invoking equity across the world. But really, what are the actions that followed those ballyhoo words bantered about in public? The staff at OWOE took at look at some of the subsequent oil production announcements away from the public spotlight. The following summarizes planned increases / decreases and shares what we found is the most amusing quote associated with each country’s plans.

Countries INCREASING oil production

  • Norway (Democracy): up 300,000 bopd

 “Drilling shutdown would mean end of green transition, Norway PM warns”

  • Iran (Authoritarian): up 1,000,000 bopd

“In fact, a few months ago, Oil Minister Javad Owji said the government was preparing plans to attract some $ 145 billion in new investment…”

  • Iraq (Tribal Representative): up 3,000,000 bopd

“An uncertain future for fossil fuels and long-standing political turmoil have not deterred Iraq from declaring lofty ambitions to nearly double its crude output capacity to 8 million b/d by 2027.”

  • Russia (Authoritarian): up 200,000 bopd

“…the main goal of the fuel and energy complex in Russia is to provide the population with energy products and preserve the export potential to form budget revenues.”

  • Libya (Tribal Representative): up 1,000,000 bopd

 “We encourage the investment and good use of the oil wealth,” the minister added.

  • Brazil (Democracy): up 3,000,000 bopd

“The energy transition? I don’t know about that. If you have oil, you drill until the last drop.”

  • Guyana (Nascent Democracy): up 1,000,000 bopd

“We are a poor country; we’re developing. We have a resource; we have to capitalise on it,” said Kemraj Parsram…

  • Venezuela (Authoritarian): up 400,000 bopd

“The surprising reversal began as state-run Petroleos de Venezuela (PDVSA.UL), known as PDVSA, won help from small drilling firms by rolling over old debts and later obtained steady supplies of a key diluent from Iran.”

Countries DECREASING oil production

  • Canada (Elitist Corrupt Oligarchy): down 1,000,000 bopd

“Reducing oil and gas production is the most cost-effective way of reducing our emissions,”

  • United States (Democracy): down 1,200,000 bopd

U.S. crude output fell as demand dropped during the COVID-19 pandemic, and has not yet returned to pre-pandemic record production of 12.966 million bpd, seen in November, 2019. The EIA in their Short Term Energy Outlook stated that they “expect production to average 11.8 million b/d in 2022…”

What’s the pattern? That for the most part authoritarian regimes are rushing to cash in on oil revenues, while democratic regimes are rushing to make everyone feel good.

More to come about gas, coal, nuclear and of course those dumb California offshore wind farm plans.

Shut Down Line 5!

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