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US crude exports seen helping consumers

Ending the US ban on exports of crude oil would hurt refiners now profiting from low feedstock costs but help producers and consumers, says an analyst at the Federal Reserve Bank of Dallas . In a July report, Michael D. Plante, senior research economist in the bank’s Research Department, describes how transport constraints have created localized oversupply, lowering regional crude prices in relation to global prices of similar crudes. With the transportation system adjusting to new production from unconventional resources in the US interior, oversupply is developing rapidly on the US Gulf Coast. “If the export ban were not in place, this would not be a problem,” Plante writes. “The extra oil would be shipped to other countries with the appropriate refining capacity for light crude. Crude oil prices in the US then would reflect global prices.” Complicating the problem is a quality mismatch. Many […]

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Two LNG export deals get U.S. nod

A facility along the Texas coast was cleared for exports of liquefied natural gas sourced from domestic supplies, the Federal Energy Regulatory Commission said. Freeport LNG Development is to build a plant capable of processing 1.8 billion cubic feet of natural gas per day for exports to countries with and without free-trade agreements with the United States. The federal government must weigh trade to non-FTA countries against the public’s interest. FERC in a statement Thursday said the Freeport LNG is required to adhere to more than 80 conditions to mitigate potential environmental impacts. Supporters of LNG exports say it will be a source of domestic economic stimulus while enhancing U.S. leverage overseas. Opponents say it could lead to higher natural gas prices at home and lead to more hydraulic fracturing, a controversial drilling practice seen as harmful to the environment. Conditional approval was given Thursday by the U.S. Energy […]

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Tanker of Texas Oil Heading to South Korea in First Sale Since 1970s Embargo

A tanker of oil from Texas set sail for South Korea late Wednesday night, the first unrestricted sale of unrefined American oil since the 1970s. How that $40 million shipment avoided the nearly four-decade ban on exporting U.S. crude is a tale involving two determined energy companies, loophole-seeking lawyers, and an unprecedented boom in American drilling that could create a glut of ultralight oil. The Singapore-flagged BW Zambesi is the first of many ships likely to carry U.S. oil abroad under a new interpretation of the federal law that bars most sales of American oil overseas. Analysts say future exports appear wide open: as much as 800,000 barrels a day come from just one of the many U.S. oil fields pumping light oil. Though U.S. policy on oil exports hasn’t changed, production of this kind of oil, known as condensate, is surging. This early shipment "is the wedge that’s […]

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U.S. Refiners to Ship Most Fuel to Europe Since November

Traders booked the most tankers in eight months to ship diesel and heating oil to Europe from the U.S. Gulf, where refining is surging as a consequence of America’s rising crude production. Oil companies either booked or plan to charter 16 tankers to transport cargoes on the route for loading during the next two weeks, according to the survey of six people involved in the trade yesterday. That compares with nine last week and is the highest count since Nov. 6. The highest U.S. oil production in more than two decades means Gulf Coast refineries are processing close to the most fuel ever. A ban on exporting most crude means the nation’s plants can tap cheaper supplies than their European counterparts. Tankers taking those refined fuels across the Atlantic Ocean are earning the most for the time of year since at least 2012. “There has been a strong increase […]

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Sierra Club irked by U.S. LNG export stance

U.S. policies on the export of liquefied natural gas are out of step with renewable and climate protection goals, the Sierra Club said. The Sierra Club announced it filed comments with the Department of Energy on the impacts of LNG. The advocacy group said LNG exports would lead to more domestic gas production, which may cause an increase in greenhouse gas emissions and inhibit the development of renewable energy projects. Sierra Club attorney Nathan Matthews said Monday the analysis from the Department of Energy falls short. "The increase in drilling and fracking [needed] to meet export demand will increase overall carbon pollution emissions, putting it at odds with the Administration’s goal to reduce carbon pollution emissions 17 percent by 2020," he said in a statement . His statement follows an announcement from Exxon Mobil that it filed an application to export LNG from Alaska with the Department of Energy. […]

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EDF signs U.S. LNG sales and purchase deal

French energy company EDF agreed to buy liquefied natural gas from an export facility being developed in Texas, Cheniere Energy announced. Cheniere’s subsidiary, Corpus Christi Liquefaction, said it entered into a sale and purchase agreement with the French energy company. EDF under the terms of the agreement agreed to purchase 380,000 tons of liquefied natural gas from the second phase, or train, of the LNG export facility under development in Corpus Christi. Another 770,000 tons of LNG would come from Train 3 once it’s developed. The export terminal in Corpus Christi would have three trains with a net production capacity of 13.6 million tons of LNG per year. "EDF is the first foundation customer on Train 3 of our Corpus Christi Liquefaction Project being developed in Texas," Chairman Charif Souki said in a statement Thursday. The terms of the EDF agreement extend for 20 years and deliveries are expected […]

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Did the US Commerce condensate export rulings mean nothing?

Two US Commerce Department rulings giving a pair of Eagle Ford players legal backing to export processed condensate have been viewed as a dramatic loosening of America’s 40-year ban on crude exports, or at least a sign that long-awaited export policy changes were near. But what if these private letter rulings really only impact the companies that received them and nothing more? Is it possible that the much ballyhooed Commerce decisions permitting Enterprise Product Partners and Pioneer Natural Resources to export processed lease condensate will mean relatively nothing in the overall export debate? According the lawyer for Enterprise, the effect of these decisions has been vastly overstated. The rulings impact a very specific type of condensate, processed through very specific facilities, and really nothing more. And the idea that these rulings could open the door to the export of hundreds of thousands of barrels of very lightly processed crude […]

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US refiners pursue more overseas product sales, EIA forum told

US refiners continue to respond to a changed competitive environment with additional investments and aggressive oil product export deals, speakers said during the US Energy Information Administration’s 2014 energy conference’s opening day. Flat US demand has made exports more attractive, but feedstocks and regulations continue to matter, “and the industry is deintegrating,” Joanne M. Shore, chief industry analyst at the American Fuel & Petrochemical Manufacturers , said during a July 14 session on changing global product trade flows. “Our surplus has allowed the US to change from a net product importer to a net exporter,” Shore said. “Rail has been a tremendous boon in moving crude to refineries. So have pipelines.” Not every US refinery has access to discounted crude, Shore said. Plants in the Midwest and Rocky Mountains have ample supplies, but situations for East Coast, Gulf Coast, and West Coast refineries have not changed much, she […]

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Natural-Gas Export Facility Clears Federal Hurdle

WASHINGTON—A federal agency on Thursday approved a natural-gas export terminal in Louisiana, marking the second time the U.S. government has signed off on such a project. The Federal Energy Regulatory Commission authorized Cameron LNG LLC, a unit of San Diego-based Sempra Energy , to operate and construct a liquefied-natural-gas export facility in Hackberry, La., just east of the Texas border. The approval focused on the project’s environmental assessment. It was the last major regulatory hurdle Cameron had to overcome and mostly clears the way for the nearly $10 billion project to begin construction. Sempra expects to begin construction later this year and will export up to 1.7 billion cubic feet of natural gas a day by 2019. In the wake of the U.S. oil and natural gas boom, companies have been scrambling in the past few years to get federal approval to export natural gas, a reversal from market […]

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U.S. crude exports in April rise to highest level in 15 years

Graph of U.S. crude exports, as explained in the article text Source: U.S. Energy Information Administration, Petroleum Supply Monthly The United States exported 268,000 barrels per day (b/d) of crude oil in April (the latest data available from the U.S. Census Bureau), the highest level of exports in 15 years. Exports have increased sharply since the start of 2013 and have exceeded 200,000 b/d in five of the past six months. The increase in crude exports is largely the result of rising U.S. crude production , which was 8.2 million b/d in March. To export crude oil from the United States, a company must obtain a license from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce. Under export licensing requirements, the following kinds of transactions will generally be approved: Exports from Alaska’s Cook Inlet Exports to Canada for consumption or use therein Exports in […]

Posted On : Published By : Tom Whipple