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More natural gas to leave U.S. market

Canadian energy company Emera gets U.S. approval to export gas to countries without a U.S. free-trade agreement. Photo by Reinhard Tiburzy/Shutterstock WASHINGTON, Oct. 20 (UPI) — The U.S. Energy Department said it approved the export of compressed natural gas from a port in Florida to countries without a U.S. free-trade agreement. Canadian-based energy company Emera submitted a request to the U.S. government in late 2013 to export the gas equivalent of 9.13 billion cubic feet per day to countries that don’t have a free-trade agreement with the United States. "Among other factors, the department considered the economic, energy security, and environmental impacts and determined that exports at a rate of up to 0.008 billion cubic feet per day for a period of 20 years was not inconsistent with the public interest," the Energy Department said in a statement. Emera under the terms of the consent agreement will export compressed […]

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House Votes to Lift Oil-Export Ban

WASHINGTON—The House voted Friday to lift the 40-year-old ban on oil exports, fueling a clash with President Barack Obama and acting on one of the oil industry’s top congressional priorities. Lawmakers voted 261-159 to lift a ban Congress first put in place after the 1970s Arab oil embargo that sent domestic gasoline prices skyrocketing. Debate on the issue now shifts to the Senate, where the measure faces steep hurdles to passage. “This is a vote to level the playing field for U.S. workers and businesses who should be allowed to compete against foreign oil suppliers like Iran and Russia,” said George Baker, executive director of the coalition of more than a dozen oil companies, which also includes Marathon Oil Corp. MRO -2.92 % , and Apache Corp. APA -1.44 % The companies say allowing oil exports would eliminate market distortions, create jobs and stimulate more U.S. petroleum production, which […]

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85 Gas Projects Dying on the Vine as LNG’s Promise Falls Short

Five years ago, energy companies hungry for the next big thing started planning as many as 90 terminals to send natural gas around the globe. Now, it seems the world only needs five more. Consulting firm IHS Inc. says only one in every 20 projects planned are actually necessary by 2025 as weakening Asia economies, cheap coal, the return of nuclear power in Japan and the ever-expanding glut of shale supply in North America temper demand for the power-plant fuel, putting tens of billions of dollars worth of export projects at risk. Barring an unusually cold winter in Asia, global LNG supply will outstrip demand by next year, said Trevor Sikorski, an analyst at Energy Aspects Ltd. in London. Seven new plants in Australia will flood the market over the next two years. Cheniere Energy Inc. is planning the startup of its Sabine Pass terminal in Louisiana this quarter. […]

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White House issues veto threat as House crude export ban vote nears

The White House said senior advisors would recommend that US President Barack Obama veto a House bill to remove restrictions on exports of domestically produced crude oil if the measure reached his desk. “Legislation to remove crude export restrictions is not needed at this time,” the Office of Management and Budget said in a formal administration policy statement on Oct. 7. “Rather, Congress should be focusing its efforts on supporting our transition to a low-carbon economy,” it continued. “It could do this through a variety of measures, including ending the billions of dollars a year in federal subsidies provided to oil companies, and instead investing in wind, solar, energy efficiency, and other clean technologies to meet America’s energy needs.” OMB issued the statement as HR 702 appeared headed for a House floor vote on Oct. 9. “Domestic oil production has grown in recent years, strengthening our economy, supporting new […]

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U.S. crude oil export debate all but over

Veto threat greets House measure to lift a ban on the export of crude oil produced in the United States. Photo by tcly/Shutterstock WASHINGTON, Oct. 8 (UPI) — Threat of a presidential veto on a House measure to lift the U.S. ban on crude oil exports suggests the effort is dead in the water, a refinery group said. The White House issued a statement of administration policy in response to House resolution 702, a measure sponsored by Rep. Joe Barton , R-Texas, that would remove restrictions on the export of crude oil produced in the United States. Rather than focus its efforts on an industry already thriving in terms of historical development, the White House said Congress should instead focus its efforts on the transition to a low-carbon economy. "If the president were presented with H.R. 702, his senior advisers would recommend that he veto the bill," the policy […]

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U.S. non-crude petroleum exports on the rise

Energy Secretary Ernest Moniz tells Senate panel export of petroleum products not classified as crude oil up considerably during the last decade. Photo by Kevin Dietsch/UPI | License Photo WASHINGTON, Oct. 7 (UPI) — The export of petroleum products not classified as crude oil has increased by a factor of four in the last decade, the U.S. energy secretary said. A Senate committee on energy heard testimony about the merits of the nation’s strategic petroleum reserve. Jason Bordoff, director of energy policy at the Columbia University School of International and Public Affairs, explained the SPR is an important strategic asset despite the rise in domestic crude oil production and the subsequent decline in imports. "There is an urgent need to modernize the SPR’s existing infrastructure to ensure that it can remain effective in the event of an emergency by delivering additional and incremental barrels to the market," he said […]

Posted On : Published By : Tom Whipple
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Why lifting oil export ban can help U.S. foreign policy

A service truck drives past an oil well on the Fort Berthold Indian Reservation in North Dakota, November 1, 2014. A House of Representatives bill is due to go to the floor this week, one step closer to lifting the 40-year-old ban on the export of U.S. crude oil. The window of opportunity was opened by the continuing plunge in oil prices, now at a six-year low, as falling demand and booming production have created an overabundance of global supply. Congress must seize this opportunity: Lifting the ban on crude oil export would not only be good for the economy, it could also benefit U.S. foreign policy. U.S. firms have been unable to export crude oil since 1974 — a legacy of the energy security fears in the wake of the Arab oil embargo. The only exceptions are crude oil exports to Canada, and oil produced in Alaska. There […]

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President Hillary Clinton Will Oppose Crude Oil Exports

Another Clinton Administration Likely I know some people cringe at the idea, but Hillary Clinton is the current favorite to win not only her party’s nomination, but the presidential election in 2016. An online Irish bookmaker lists Hillary at 11/8 odds to win the presidency, followed by Jeb Bush and Donald Trump at 9/2 odds, and then Bernie Sanders, Joe Biden, and Marco Rubio at 8/1 odds. (You can even bet on Kim Kardashian at 1,000 to 1 odds of winning the 2016 presidential election). Some will argue that her unfavorable ratings are too high, but all of the leading candidates have significant negatives of one kind or another. I imagine that Hillary Clinton versus Donald Trump could result in the highest voter turnout in U.S. history — much of it from voters trying to keep the opposing candidate out of office. Others have argued that someone will rise […]

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The Dragon Ships Are Coming

Something exciting is happening and it involves dragon ships that will transport Marcellus Shale gas to European markets as an alternative to Russian gas. Range Resources and INEOS have partnered to export Ethane from Marcellus Shale across the Atlantic Ocean, to European Countries, via ship. At 2:43 in the video following they show the Markwest cracker plant, here in Houston, Pennsylvania (Washington County), where they will be supplying Ethane for this. The Ethane is being shipped via the Mariner East I Pipeline , which recently opened, to the Marcus Hook facility in Philadelphia, where “dragon ships” will be loaded for transport to Europe. INEOS also partnered with Danish Shipping Company Evergas in 2013 to transport it to the European Countries who need Ethane to keep their chemical plants in operation. This project is employing ten’s of thousands of workers, in several countries to build the ships. some four ships […]

Posted On : Published By : Tom Whipple
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As U.S. lawmakers press to end oil export ban, traders say no hurry

Oil barrels sit empty at a recycling yard in Longmont, Colorado February 2, 2015. U.S. lawmakers may now be only months away from lifting a four-decade-old ban on most oil exports, relieving a trade constraint that as recently as a year ago seemed at risk of choking off a domestic drilling boom. At the same time, the outlook for oil prices in 2016 and beyond suggest it may be years before traders care. U.S. benchmark crude oil futures for March have strengthened swiftly this week to their firmest versus global benchmark Brent since the early days of the U.S. shale oil boom, all but eliminating the price gap that would have made exports profitable. The momentum for change in Washington is at odds with the shifting outlook for global oil markets. A key House of Representatives committee on Thursday easily passed a bill to repeal the ban, setting up […]

Posted On : Published By : Tom Whipple