Increases in crude oil and gasoline prices have caused widespread concern in recent months, made worse after Russia’s invasion of Ukraine that added even more uncertainty to the market. With the average U.S. price for regular gasoline now topping $4/gal — nearly 50% above where it was a year ago — the rising fuel costs have been especially painful for everyday drivers and threaten to slow or derail a global economy still recovering from the pandemic-induced recession. Government officials in the U.S. and elsewhere, while urging oil producers to ramp up output, have turned to their strategic reserves as a way to quickly balance the market and rein in prices. In today’s RBN blog, we look at the International Energy Agency’s (IEA) latest announced release from oil reserves, how the global drawdowns are intended to create a bridge to when increased production comes online, and the skepticism about whether those plans will work out as intended.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
Crude oil prices have been on a steady rise over the last year. WTI settled at $104.25/bbl on Wednesday, up from about $44/bbl in early January 2021 and $63/bbl at the start of January 2022 before spiking to $123.70/bbl on March 8, not long after Russia’s invasion of Ukraine. Until recent years, an increase in crude oil prices of that magnitude would result in a corresponding increase in producer activity and rig counts, leading to a significant boost in production. But as we noted recently in What’s Going On? and I Can’t Go For That (No Can Do), that’s not happening now for a number of reasons. (More on that in a bit.) While U.S. crude oil production has moved up to 11.8 MMbbl/d, according to the latest weekly data from the Energy Information Administration (EIA), it’s still well below the pre-pandemic peak of about 13 MMbbl/d.
To bridge the gap between today’s demand and the time it may take to bring new production online, the U.S. and others have been increasingly turning to their own strategic reserves.
Join Backstage Pass to Read Full Article
About the song
“Road to Nowhere” was written by David Byrne and appears as the fourth song on side two of Talking Heads’ sixth studio album, Little Creatures. Released as a single in September 1985, the song went to #25 on the Billboard Mainstream Rock Tracks Singles chart. “Road to Nowhere” songwriter and Talking Heads front-man David Byrne has said, “I wanted to write a song that took a joyful look at doom.” The music video for the song was nominated for Best Video of the Year at the 1986 MTV Video Music Awards. Personnel on the record were: David Byrne (lead, backing vocals, electric guitar), Jerry Harrison (organ, backing vocals), Tina Weymouth (bass, backing vocals), Chris Frantz (drums, backing vocals), Andrew Cader (washboard), Jimmy Mcdonnel (accordion), Lenny Pickett (sax), Steve Scales (tambourine), and Erin Dickens, Diva Gray, Gordon Gordy, Lani Groves and Kurt Yahijian (backing vocals).
Little Creatures was recorded between October 1984 and March 1985 at Sigma Sound in New York City. Produced by Talking Heads, the LP was released in June 1985. It went to #20 on the Billboard 200 Albums chart and has been certified 2X Platinum by the Recording Industry Association of America. Three singles were released from the album.
Talking Heads were an American rock band formed in New York City in 1975 by David Byrne, Tina Weymouth, Chris Frantz and Jerry Harrison. The group got its start playing at CBGB’s in the Bowery in New York in 1975. They were signed to Sire Records and released their debut album, Talking Heads: 77, in September 1977. They released eight studio albums, two live albums, nine compilation albums, and 31 singles. The band was inducted into the Rock and Roll Hall of Fame in 2002. Along with the original four members of the band, Talking Heads were augmented by nine additional players at various times before their breakup in 1991. All four original members of the band have gone on to successful solo and group endeavors.
