I’d like to begin this week’s newsletter with congratulations to the state of Texas for breaking records and producing more than 2 billion barrels of crude oil in 2024.

Answer. The state of Texas (x2).

But as our Chief Industry Analyst Susan would say… “Crude oil is largely worthless, until a refinery turns it into something.”

So let’s extend further congratulations to all of you who are refining, cracking and otherwise processing crude oil into the fuels and petrochemicals that make modern life possible. Here’s to you!

More on Texas’ oil production here.

Happy Monday!

-Charlie and the AFPM EMPOWER team

Have ideas for content, comments, or questions? You can reach me at charlie@afpm.org.

What we’re reading this week

Trump Team Weighs Broader, Higher Tariffs - The Wall Street Journal
But in recent days Trump has pushed his team to be more aggressive, people familiar with the conversations said, encouraging them to devise plans that would apply higher rates of tariffs on a broader set of countries. Trump reinforced that narrative on Sunday night, saying he would target “essentially all” of U.S. trading partners with tariffs of some kind.

We need Canada’s crude oil to help America’s energy supremacy - The Washington Times
In 2001, almost half the oil we imported came from OPEC. Today, almost two-thirds of the oil we import comes from Canada and just 15% comes from OPEC countries. This is in large measure because Canadian crude costs about 15% less than oil from the Middle East and the cost and complexity of transporting crude oil from Canada are lower.

White House Weighs Helping Farmers as Trump Escalates Trade War - The New York Times
Ahead of President Trump’s plan to impose sweeping tariffs across the globe this week, his administration is weighing a new round of emergency aid to farmers, who are likely to be caught in the middle if America’s trading partners retaliate.

US oil, gas activity rose in first quarter, but energy execs wary of tariffs, Dallas Fed says - Reuters
Trump has promised to unleash U.S. energy dominance, declaring a national energy emergency on his first day in office. Yet many executives surveyed by the Dallas Fed expressed worries about Trump's promise to drive down oil prices, and said his trade and tariff policies could raise drilling costs.

If zero-emission cars cut gasoline sales and tax revenue, how will California replace them? - CalMatters
When California motorists fill their tanks, they are often paying the nation’s highest gas prices, an average of $4.65 a gallon currently and about $1.50 above the national average.

Lawmakers push EV tax in highway bill talks - E&E News
Lawmakers are revisiting an old idea as they consider how to replenish the long exhausted Highway Trust Fund: tax electric vehicles.

This California law was supposed to stop gasoline price gouging. Has it? - The Sacramento Bee
Two years after California’s Democratic leaders declared victory over big oil with a law aiming to crack down on industry profits, the state has been unable to prove companies engage in price gouging when the cost of gasoline spikes in California.

How to turn growing public support for pipelines into action: 'Let's get it done' - Calgary Herald
A growing number of Canadians want more pipelines built in the country. Now, a new poll finds 88 per cent of respondents view oil and natural gas as important to the country’s economy today, up nine percentage points over the past half year, while seven in 10 see it as important to Canada’s future economy.