Episode 145 - Bay Area Pushes Back on Gas Stoves | Dr. Dean Foreman with the API Monthly Statistical Report - a podcast by Ryan Ray & Ellen Wald

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Bay Area Cities Go to War Over Gas Stoves in Homes and Restaurants https://www.usnews.com/news/cities/articles/2021-02-10/bay-area-cities-go-to-war-over-gas-stoves-in-homes-and-restaurants
- when the power goes out, gas powered stoves, fireplaces, etc. can be very helpful for cooking, etc. when electricity is out.
- people who think gas is bad refuse to hear any other perspective

After Texas Crisis, Biden’s Climate Plan Hangs on Fragile Power Grid
https://news.yahoo.com/texas-crisis-biden-climate-plan-100003694.html
- Of all the people/things to blame for Texas power crisis, Biden certainly isn’t.
- Is wind power to blame? Should Texas have paid to winterize its wind turbines?
- What’s the responsibility of the power company to provide power to residents? Or is it a disaster preparedness issue?
- More nuclear needed?

Discussion of API Monthly Statistical Report
- demand, despite fuel switching is very close to where it was pre-Covid
- How do we balance inflation with oil prices?
- Global demand is exceeding supply, inventories drawing down, investment isn’t at what it needs to be to even replace what is being used.
- Question of when not if supply is short. Investment pace will impact prices
- Every is typically 6.5% of a household’s expenses. Over last decade energy went down, but now its going up. Biden proposals could raise energy cost and could also raise housing and vehicle costs, especially for lower-income households.
- What are we using all of the petrochemicals for? Naphtha, gas oil, propane —> winter and single use plastics. 33.1% of total US petroleum demand. Also exports. Potentially a permanent shift.
- Demand in first half of February was up a lot, up 5.5% year on year in US for first half of February. But second half of February will look different because of disruptions.
- Home prices are up, used vehicle prices are rising too.
- Production trends continue to “defy gravity.” + or minus 11 million barrels of oil a day which is huge considering how much drilling is down. Decreases in global drilling as well. How fast do you eat through OPEC + Russia’s ability to put barrels back on the market? Between 8 and 9 barrels, but that’s demand growth alone over the next two years.
- Gasoline prices? Chance of upward pressure and if you overlay Biden admin official policies on top of that we could see national average of gasoline price going up to $3/gallon.
- 4Q capex spending for oil companies is only marginally more than it was in Q3. Notion that continued output growth will continue without investment is just not going happen.

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Further podcasts by Ryan Ray & Ellen Wald

Website of Ryan Ray & Ellen Wald