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Crude exports would reduce US gasoline prices, RFF paper suggests

US crude oil exports would lead to more efficient use of the country’s refineries, resulting in more gasoline and lower prices, a Resources for the Future issue brief concluded. “With the increased efficiency of Western Hemisphere refinery operations that would come from lifting the ban, US prices for refined products will be reduced—even if world oil prices increase,” it said. Most US refineries are configured to process heavy grade of crude and cannot process light crudes from the Bakken and other US tight oil plays, said Stephen P.A. Brown, a visiting fellow at RFF and director of the University of Nevada at Las Vegas’s Center for Business and Economic Research. Brown and three others wrote the issue brief. High levels of US light, sweet crude oil production , combined with a general ban on crude exports and transportation bottlenecks, have led to sharply lower prices for crude oil–but not […]

Posted On : Published By : Tom Whipple
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New crude oil terminal planned for Baton Rouge

– Genesis Energy, which has headquarters in Houston, said it would invest $150 million on a new crude oil import and export terminal in Baton Rouge, La. The company said the terminal will be on a 90-acre plot near the Port of Greater Baton Rouge and connect to existing facilities in the area. Initially, a company statement said, the facility will be able to store approximately 1.1 million barrels of crude oil and refinery petroleum products. The site will have the capability to expand to provide additional services to customers, Genesis said. The company said it had arrangements in place with Exxon Mobil, which has already secured the rights to a portion of the facility’s expected capacity. "We are … pleased with our growing relationship with Exxon Mobil, which has led to the successful development of this new project," Genesis Chief Executive Officer Grant Sims […]

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GDF Suez sees opportunity in U.S. LNG nod

A U.S. decision on gas exports opened the door for French company GDF Suez to enhance its position in the growing U.S. natural gas market, the company said. Gerard Mestrallat, chairman for GDF Suez, said he welcomed Tuesday’s decision by the federal government to allow consortium Cameron LNG, LLC to export liquefied natural gas produced in the United States from a Cameron Parish, La., terminal to countries that don’t have a U.S. free-trade agreement. "The decision of the Department of Energy to grant non-FTA approval opens a major opportunity for GDF Suez to further develop long-term LNG sales in a fast-growing global market," he said in a statement Wednesday. GDF Suez in May signed a joint venture agreement with U.S. natural gas company Sempra and Japan’s Mitsubishi and Mitsui to develop the Cameron LNG project. The U.S. Energy Department said Tuesday the decision, which […]

Posted On : Published By : Tom Whipple
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Drop Washington’s Counterproductive Oil and Natural Gas Export Ban

Page added on February 4, 2014 For years people have been told to expect a dismal energy future. But because of rapid free market innovation, Americans now can look forward to a future of energy abundance. The U.S. could even become a leading exporter—if Washington gets out of the way. Successive presidents and Congresses imposed controls, approved subsidies, created bureaucracies, and issued proclamations. The most common commitment was to achieve “energy independence.” But President Ronald Reagan set the stage for today’s energy advances by unilaterally eliminating oil price controls and pushing Congress to drop natural gas price and use restrictions. His successors, however, have regressed back to expensive social engineering. George W. Bush declared war on the common light bulb. Barack Obama poured billions into the coffers of well-connected alternative energy firms, several of which, such as Solyndra, have gone bankrupt. And everyone continued to support the authoritarian Gulf […]

Posted On : Published By : Tom Whipple
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Debate stirs over benefits of U.S. oil exports

The American Petroleum Institute said exporting U.S. crude oil could mean lower energy costs for consumers, an issue countered by others in the energy sector. API, an industry lobby representing more than 580 companies, said a study it commissioned from energy consultant group ICF International indicates exporting crude oil from the United States could translate to $6.6 billion in savings for U.S. consumers by 2020. "It’s undeniable that the American energy revolution has rendered our current export policies obsolete," API Vice President for Economic Policy Kyle Isakower said in a statement Thursday. "Allowing exports will ensure that U.S. production remains strong in a way that supports American consumers." The Senate Energy and Natural Resources Committee summoned industry officials to testify Thursday about the prospects of exporting more crude oil. Laws enacted after the 1970s Arab oil embargo restrict domestic oil exports. U.S. Sen. Lisa […]

Posted On : Published By : Tom Whipple
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The case for exporting crude oil

Looking over the numbers, and knowing the way the North American oil market works, it’s becoming increasingly apparent to me that current US crude oil production cannot be sustained unless the Department of Commerce begins to permit exports beyond Canada. The surge in US crude oil production, led by Texas and North Dakota, which account for more than 45% of all domestic production, can only be sustained if there are new processing facilities — refining capacity or possibly condensate splitters to take care of the higher-gravity oil — a change in US refiners’ crude slate, or the final option, exports. There is some new refining and splitting capacity being added which will consume about 750,000 b/d of light sweet crudes and condensates, according to industry estimates. (OPEC & IEA estimates are at 500,00 b/d but US sources say this excludes condensate splitting capacity, so if you add condensate splitting […]

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Liquefaction contracts let for Texas LNG terminal

FLNG Liquefaction LLC and FLNG Liquefaction 2 LLC have let contracts for construction engineering for planned LNG export from the LNG import terminal on Quintana Island near Freeport, Tex. Recipients of the $2.5 billion in contracts are CB&I and Zachry Industrial Inc. for construction of two 4.4 million tonne/year LNG trains. In 2012, CB&I and Zachry received front-end engineering and design contracts on the liquefaction terminal ( OGJ Online, Feb. 17, 2012 ). The most recent award includes a “limited notice to proceed” on engineering and procurement while the project awaits governmental approvals.

Posted On : Published By : Tom Whipple