#282: Oil Near $90, U.S. LNG Demand & How Engineers Find the Sweet Spot | The Oil & Gas Rundown

And this one with U.S. crude inventories dropped 3.2 million barrels.

And what's really interesting about that is that they actually expected inventories to go up.

So U.S. crude inventories fell by 3.2 million barrels when analysts were actually expecting a 1.7 million barrel increase.

US crude exports jumped to 4.7 million barrels a day.

So while we talk a lot about global uncertainty, America continues to be an incredibly important, not just domestically, but globally.

So they thought we were going to see an increase.

And what's happening is we are exporting an incredible amount of crude out through our ports, which is also part of some part of what is affecting the diesel prices.

So everyone's watching prices of diesel hitting at $6.29 a gallon.

Diesel, I love this analogy because we often think as consumers, when we go to the pump, we look at fuel prices, petrol prices.

Maybe we don't have a diesel vehicle, but every time you get a receipt in your hand for anything you've purchased, that is the diesel receipt.

because diesel is what moves this economy.

Every single item that you have in front of you or that you're getting was shipped by diesel, moved by diesel, and really the world runs on diesel.

So what we're seeing right now is that we really have an issue with refining capacity within the United States.

Very little, I think out of a barrel of crude, So 42 gallons, only 12% of that is refined into diesel, which actually then splits into jet fuel and some other different things.

So there's very limited amount of diesel.

When we refine it, we don't refine it in the United States the way that we need to, in a sense.

We haven't had a refinery built in the US since 1970s.

I think we do have the first one coming online in Corpus Christi next year, but When we take a look at also what's happened in Russia and in the Middle East for the type of diesel that we need, those refineries are down substantially in refining diesel.

So it's going to be something that we're looking at and watching and consumers are probably going to see some effects of that hitting their price point when they're purchasing groceries, purchasing goods.

But that is an interesting, very interesting topic to look at the diesel price.

So Couple other things I want to make mention of.

One, this is actually some M&A.

Gentlemen, you've been watching the M&A situation in the Permian? Acquisitions happening, 2.6 billion.

Energy transfer has acquired Vaquero Midstream, expanding its footprint in the southern Delaware Basin.

So Vaquero brings roughly 300 miles of pipeline and processing capacity of about 675 million cubic feet of natural gas per day.

And this one with U.S. crude inventories dropped 3.2 million barrels.

And what's really interesting about that is that they actually expected inventories to go up.

So U.S. crude inventories fell by 3.2 million barrels when analysts were actually expecting a 1.7 million barrel increase.

US crude exports jumped to 4.7 million barrels a day.

So while we talk a lot about global uncertainty, America continues to be an incredibly important, not just domestically, but globally.

So they thought we were going to see an increase.

And what's happening is we are exporting an incredible amount of crude out through our ports, which is also part of some part of what is affecting the diesel prices.

So everyone's watching prices of diesel hitting at $6.29 a gallon.

Diesel, I love this analogy because we often think as consumers, when we go to the pump, we look at fuel prices, petrol prices.

Maybe we don't have a diesel vehicle, but every time you get a receipt in your hand for anything you've purchased, that is the diesel receipt.

because diesel is what moves this economy.

Every single item that you have in front of you or that you're getting was shipped by diesel, moved by diesel, and really the world runs on diesel.

So what we're seeing right now is that we really have an issue with refining capacity within the United States.

Very little, I think out of a barrel of crude, So 42 gallons, only 12% of that is refined into diesel, which actually then splits into jet fuel and some other different things.

So there's very limited amount of diesel.

When we refine it, we don't refine it in the United States the way that we need to, in a sense.

We haven't had a refinery built in the US since 1970s.

I think we do have the first one coming online in Corpus Christi next year, but When we take a look at also what's happened in Russia and in the Middle East for the type of diesel that we need, those refineries are down substantially in refining diesel.

So it's going to be something that we're looking at and watching and consumers are probably going to see some effects of that hitting their price point when they're purchasing groceries, purchasing goods.

But that is an interesting, very interesting topic to look at the diesel price.

So Couple other things I want to make mention of.

One, this is actually some M&A.

Gentlemen, you've been watching the M&A situation in the Permian? Acquisitions happening, 2.6 billion.

Energy transfer has acquired Vaquero Midstream, expanding its footprint in the southern Delaware Basin.

So Vaquero brings roughly 300 miles of pipeline and processing capacity of about 675 million cubic feet of natural gas per day.