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Energy

OPEC Delivers Masterful Rebuke To Global Energy Agency Head

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From the Daily Caller News Foundation

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Some readers will remember the infamous May 2021 report from the International Energy Agency (IEA) titled ‘Net Zero by 2050: A Roadmap for the Global Energy Sector.’ The report projected a roadmap for transforming the world’s $300 trillion oil-and-coal-based energy system into one that runs on unreliable, intermittent alternatives like wind and solar.

Most educated observers viewed the report as a piece of propaganda coming from an agency then in the process of transforming itself from a historically reliable source of real data and analysis into just another advocate for the climate alarm narrative. It surprised no one when, just a few years later, Fatih Birol, head of the IEA, publicly boasted about that exact transformation as being the agency’s overt mission now.

One passage in the report’s set of recommendations immediately caught everyone’s eye due to its boldness and transparent illogic. That passage says, “There is no need for investment in new fossil fuel supply in our net zero pathway.”

To reinforce this stunningly absurd notion, Birol, in an interview published by the Guardian upon the study’s release, insisted that, ”If governments are serious about the climate crisis, there can be no new investments in oil, gas and coal, from now – from this year.”

It was a moment when the formerly respected agency shed a great deal of its credibility.

Making matters worse for Birol and IEA, barely a month later a spokesperson for the IEA urged OPEC to “open the spigots” to raise oil production to meet rising global demand that was outstripping the agency’s forecasts as the world recovered from the COVID-19 insanity. Three months after that, Wood MacKenzie, Rystad, and Moody’s had all issued studies directly contradicting IEA’s absurd assessment, and Birol was joining former President Joe Biden in calling for U.S. oil producers to drill more wells and produce more oil.

This sort of ill-advised posturing and self-contradiction is what happens when a scholarly enterprise consciously lurches into advocacy.

At this past week’s CERAWeek conference in Houston, Birol contradicted himself one more time, telling attendees, “I want to make it clear … there would be a need for investment, especially to address the decline in the existing fields. There is a need for oil and gas upstream investments, full stop.”

This latest impulse to respond to the next new thing surely surprised no one. But it was a bridge too far for officials at OPEC to sit by and absorb silently. In a March 13 statement posted on the OPEC website, the cartel reviewed Birol’s and IEA’s recent history of inconsistency and urged Birol to take a step back and consider the impacts it has had and will continue to have on investments for the future.

“Aside from the risk of whiplash that such severe yo-yoing between positions could cause, a serious point needs to be stressed,” OPEC writes. “The world needs unambiguous clarity on the realities of the future of supply and demand. Agencies that recognize the responsibility that comes from offering analysis of the long-term perspectives of the industry should not be shifting positions or mixing messages and narratives every couple of years on this matter, particularly ones that were founded to ensure the security of oil supplies.”

Oof. Blunt, but true. It is a dressing down that is well-deserved and long overdue.

Does Birol’s latest shift signal a recognition that the energy transition for which it has advocated has failed? It’s hard to know.

Regardless, once an agency like IEA makes a public decision to transform itself away from sterile analysis into the realm of advocacy, going back will be hard. Aside from the loss of credibility, which has only increased as Birol has lurched from one position to another and back again, such a transformation completely shifts the organization’s culture. Going back now will require time and a great deal of organizational pain.

Here, another obvious question arises: Is Fatih Birol the right person for this job? It is a question that should have arisen before the loss of so much credibility and trust. For the 32 member countries who subscribe to the agency and pay its bills, there is no time like the present to determine the answer.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

Crime

Mexican Cartels smuggling crude oil in Texas, Southwest border

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The U.S. Treasury Department is cracking down on Mexican cartel crude oil smuggling in Texas and along the southwest border.

The department’s Office of Foreign Assets Control on Thursday (OFAC) sanctioned multiple Mexican nationals and Mexico-based entities involved in a drug trafficking and fuel theft network connected to the Mexican cartel, Cartel Jalisco Nueva Generacion (CJNG).

In February, the Trump administration designated CJNG and other Mexican cartels and transnational criminal organizations as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorist (SDGT).

Crude oil smuggling, “huachicol,” is interconnected with “a slew of criminal activities, including fentanyl trafficking,” and a range of violent crimes. It’s considered “the most significant non-drug revenue source for Mexican cartels and other illicit actors,” OFAC said. The thieves, “huachicoleros,” use a variety of means to steal fuel and crude oil from Mexico’s state-owned energy company, Petróleos Mexicanos (Pemex), including bribing and threatening Pemex employees, illegally drilling taps into pipelines, stealing from refineries and hijacking tanker trucks.

Their operations are facilitating “rampant violence and corruption across Mexico, and undercutting legitimate oil and natural gas companies in the United States,” OFAC states.

Stolen fuel is sold on the black market in Mexico and Central America through unregulated roadside fuel stops and cartel-controlled gas stations.

It’s also smuggled into the U.S. by brokers who label it as “waste oil” or hazardous material to evade detection. Stolen crude oil is then sold and shipped to oil and natural gas companies and refineries in Texas and nationwide, as well as to Japan, India, Africa and other countries, investigators found. It’s sold at a significant discount and the illicit proceeds are sent back to the FTOs and SDGTs.

According to law enforcement estimates, the U.S.-based importers earn roughly $5 million for each oil tanker shipment of crude oil to foreign jurisdictions, with multiple tankers leaving Texas ports every month. Most purchasing the shipments are likely unaware they’ve been stolen, OFAC states.

Those sanctioned this week include CJNG leader Mexican national Cesar Morfin Morfin (a.k.a. Primito) of Tamaulipas, for his alleged role in transporting, importing and distributing narcotics, including fentanyl, heroin, methamphetamine, cocaine, and marijuana, and fentanyl and methamphetamine precursor chemicals sourced from China into the U.S.

Primito’s older brother, Alvaro Noe Morfin, was also sanctioned for his alleged role in CJNG narcotics trafficking. Both Primito brothers are on a 10 Most Wanted list in Texas and Tamaulipas, published by U.S. Customs and Border Protection and the Mexican government.

Their younger brother, Remigio Morfin, was also sanctioned for alleged drug trafficking, operating out of Hidalgo, Mexico.

Mexican national Cesar Morfin was also sanctioned for his role in CJNG drug trafficking, as were two of his family members and business associates, who are linked to CJNG fuel theft, OFAC said. However, he’s allegedly now focused primarily on stealing crude oil, OFAC said.

As Trump administration border security efforts shut down illegal entries, Primito’s network refocused their efforts to smuggle crude oil into the U.S., OFAC said. “Given his control over port of entry bridges between the Tamaulipas and Texas border regions, Primito also charges fees to any trucks moving crude into the United States via these routes.” He and his subordinates also allegedly falsify official customs documents to facilitate cross-border smuggling of stolen crude oil, investigators allege.

In addition to the sanctions, OFAC and several federal agencies issued an alert to U.S. financial institutions urging them to vigilantly detect, identify and report suspicious activity that might be connected to stolen crude oil smuggled by FTOs and SDGTs.

“In recent years, fuel theft in Mexico, including crude oil smuggling, has become the most significant non-drug illicit revenue source for the Cartels and enables them to sustain their global criminal enterprises and drug trafficking operations into the United States,” the alert states.

The alert provides an overview of methodologies and financial typologies associated with cartel crude oil smuggling, includes red flag indicators and reminds financial institutions of Bank Secrecy Act reporting requirements.

Since the Trump administration designated Mexican cartels and transnational criminal organizations as FTOs and SDGTs in February, the Treasury Department has sanctioned 11 individuals and six entities affiliated with the Sinaloa Cartel, La Nueva Familia Michoacana, and the Beltran Leyva Organization.

Last September, OFAC also sanctioned nine Mexican nationals and 26 Mexico-based entities linked to CJNG fuel theft activities, including senior CJNG member Ivan Cazarin Molina (a.k.a. El Tanque).

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Energy

European Outage Shows Weakness Of ‘Renewable’ Energy

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From the Daily Caller News Foundation

By Chris Talgo

Like most of Western Europe, Spain and Portugal have been at the forefront of the green movement in recent decades. Both nations have embraced renewable energy sources, especially wind and solar, as they have transformed their energy grid infrastructure to rely heavily upon these sources.

With that being said, it should come as no surprise that the extensive power outage that crippled these countries and parts of others earlier this week was primarily caused by a huge drop in solar power output in a short period of time.

To be exact, as the Associated Press reports, “In a span of just five minutes, between 12:30 and 12:35 p.m. local time (1030-1035 GMT) on Monday, solar PV generation plunged by more than 50% to 8 gigawatts (GW) from more than 18 GW.”

Based on an early report, the sudden drop in solar power occurred at two solar facilities in southwest Spain, which triggered a “complete collapse of the system,” according to Spanish Prime Minister Pedro Sánchez.

Because power grids are complex structures that are often intertwined among nations, when one country experiences a major outage, it typically spreads to its neighbors as well. Such is why areas in Portugal, France, and Belgium experienced large power outages after the Spanish grid collapsed.

Predictably, the mainstream media are totally ignoring the cause of this manmade disaster.

For now, the official narrative is that the abrupt power outage was due to a “rare atmospheric phenomenon.”

The truth is that Spain, which generated 56 percent of its electricity mix in 2024 from renewables, has become a canary in the coal mine for other nations that are considering going all-in on renewable energy.

Red Electrica, a fitting name for Spain’s monopolistic utility power provider, blamed the power failure on “severe oscillations in high-voltage lines in southern France or inland Spain.” The company said the possible causes “include a physical fault (line disconnection), a sudden loss of generation within Spain or an atmospheric phenomenon.”

What recently occurred in Spain, Portugal, France, and Belgium is not an isolated incident; it is only the latest instance of an electric grid being unable to deliver on-demand power due to an overreliance on renewable energy.

The same thing’s been occurring more and more in the United States in recent years, especially after President Biden’s four-year war on natural gas and coal, which can provide abundant, affordable, and reliable energy 24 hours per days, seven days per week.

As the federal government, in cahoots with state and local governments, has pushed electricity grid operators to build more solar and wind power facilities instead of dependable natural gas plants while prematurely shuttering perfectly operable coal power plants, the U.S. grid has suffered.

As the American Energy Alliance notes, “ power outages have increased by 93 percent across the United States over the last 5 years—a time when solar and wind power have increased by 60 percent. Texas, who leads the nation in wind generation, and California, who leads the nation in solar generation, have had the largest number of power outages in the nation over those 5 years.”

It also must be emphasized that wind and solar are not environmentally friendly.

While it is true that solar panels and wind turbines produce little to no direct carbon monoxide emissions; it is also true that the manufacturing process requires vast amounts of rare earth elements.

It is also the case, as even the Los Angeles Times acknowledged in 2022, that enormous solar fields and gigantic wind turbines destroy pristine lands, disrupt habitats, are nearly impossible to recycle, and result in the mass killing of birds, whales, and other animals.

Finally, it is essential to reinforce the fact that not only are wind and solar unreliable and bad for the environment, but they also cost more, not less, than natural gas and coal.

As James Taylor, President of The Heartland Institute, notes in a new Policy Study, “a peer-reviewed analysis of full-system levelized costs of competing power sources shows wind power is seven times more expensive than natural gas power and solar power is 10 times more expensive.”

The good news for Americans is that President Trump understands the fundamental folly of the so-called green movement. Unlike his predecessor, Trump is not interested in pushing what he calls the “green new scam.”

Over his first 100 days, Trump has taken a vast array of actions to roll back Biden-era regulations that stifled domestic energy production. Moreover, Trump wants to export natural gas to Western Europe, which would weaken Russia’s war machine while bringing our traditional European allies back in the fold.

Hopefully, this dark episode will help other European nations, Germany in particular, recognize that you simply cannot run a modern nation primarily on wind and solar power.

Chris Talgo is editorial director at The Heartland Institute.

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