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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 […]

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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 […]

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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 […]

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House move on oil exports moot, White House says

White House Press Secretary Josh Earnest stresses decisions on U.S. crude oil exports rest with the Commerce Department. Photo by Kevin Dietsch/UPI WASHINGTON, Sept. 18 (UPI) — Congressional moves to repeal a crude oil exports ban are irrelevant because those decisions rest with the Commerce Department, the White House said. The House Energy and Commerce Committee approved a measure to lift a ban on U.S. crude oil exports. The ban was enacted in the 1970s after Arab members of the Organization of Petroleum Exporting Countries briefly stopped exporting oil to the United States because of Washington’s support for Israel. Rep. Joe Barton , R-Texas, who introduced the bill, said the U.S. oil boom needs to benefit overseas allies as much as it has the domestic economy. "The ban on exporting crude oil imposes an estimated $200 billion – $600 billion cost to the U.S. economy, discourages crude oil production, […]

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Clinton Would Support End to Oil Export Ban Only With Concessions

Democratic presidential candidate Hillary Clinton says she would support lifting the US ban on crude exports if it meant a move toward cleaner energy. Durham, N.H., Sept 18 (Reuters) – Democratic presidential candidate Hillary Clinton said on Friday she would support lifting the 40-year-old U.S. ban on crude exports only if the measure included concessions from the oil and gas industry to move toward cleaner energy. Clinton said she had not yet seen any legislation on lifting the ban that included concessions from the fossil fuel industry, In the absence of that, "I don’t think the ban should be lifted," Clinton told reporters. The U.S. House of Representatives is expected to pass a measure scrapping the trade restriction in coming weeks, after a panel in the chamber passed the bill on Thursday. Oil drillers say the ban needs to be repealed to keep the domestic energy boom alive. Opponents […]

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House Democrats Keep Door Open to Crude Exports, Seek Sweeteners

House Democrats said a measure to repeal decades-old U.S. restrictions on crude oil exports needs more environmental and consumer protections to win their backing. The Republican-led House Energy and Commerce Committee passed the measure by a 31-19 vote Thursday, sending the legislation to the full House of Representatives. Three Democrats joined 28 Republicans voting in favor. A floor vote could come as soon as the end of the month. The bill cleared the committee with one amendment, which would allow the U.S. president to reimpose export restrictions during a national emergency. “I frankly don’t see what’s in this for the average American,” Representative Frank Pallone of New Jersey, the panel’s Democratic leader, said before the vote. The bill “is a blunt object which broadly undermines 40 years of protections for national security, our economy, consumers and the environment.” U.S. exports of most crude oil were banned by Congress in […]

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Does Anyone Even Want to Buy Crude Oil From the U.S.?

Given current prices, does anyone even want to buy crude oil from the U.S.? After the House Energy and Commerce Committee voted to end a four-decade ban on most oil exports, crude in the U.S. remains more expensive than foreign supplies and domestic demand is robust. Supporters of expanded exports, including Exxon Mobil Corp. and ConocoPhillips, say ending the ban would ease a glut from the shale boom and lower global prices. Refiners opposed to the legislation say it could increase gasoline costs for U.S. consumers. Lifting the ban won’t lead to a big jump in shipments, at least in the short term, said John Auers, executive vice president at energy consultant Turner, Mason & Co. Light oil in Louisiana was more than $2 a barrel more expensive Wednesday than Brent, the international benchmark, making it unattractive for overseas refiners seeking to capitalize on the shale boom. Refineries in […]

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BHP adds voice to U.S. oil export debate

Both sides of the U.S. energy sector — upstream and downstream — continue debate over wisdom of repealing ban on crude oil exports. Photo by iofoto/Shutterstock WASHINGTON, Sept. 17 (UPI) — Australian energy giant BHP Billiton said the United States could send a strong message to allies and markets alike with a repeal of the ban on oil exports. Republican leaders in the U.S. House and Senate have moved legislation meant to end the ban placed on U.S. crude oil exports after Arab members of the Organization of Petroleum Exporting Countries in the 1970s blocked their exports to the United States in response to Washington’s support for Israel. Addressing the U.S. Chamber of Commerce in Washington, BHP Chief Executive Officer Andrew Mackenzie said a larger U.S. presence on the global energy market could have significant consequences . "The United States would send a strong signal with the repeal of […]

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US House committee passes crude oil export bill, but hurdles remain

The US House Energy and Commerce Committee on Thursday approved a bill to lift all restrictions on US crude oil exports by a 31-19 vote. While it could be voted on by the full House later this month, the bill’s path in the Senate remains unclear and it faces opposition from the White House, limiting the likelihood that an export policy change could become law before President Barack Obama leaves office in 2017. On Tuesday, White House spokesman Josh Earnest said the administration "wouldn’t support" the crude export bill because such a policy change should be made by the Department of Commerce. A Commerce spokesman said Wednesday that the agency was not working to change current export policy, which restricts US crude exports with some exceptions. The bill Thursday, H.R. 702, was approved by all committee Republicans, but just three Democrats: Representatives Gene Green of Texas, Tony Cardenas of […]

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White House called on to act on oil exports

Responsibility lies with the White House to overturn a ban on crude oil exports, an industry group says. Photo by tcly/Shutterstock WASHINGTON, Sept. 16 (UPI) — If the White House opposes legislative action to overturn a ban on oil exports, the onus is on the executive branch to take action, an industry group said. A House energy committee pushed ahead with legislation that would end a ban on crude oil exports enacted when Arab members of the Organization of Petroleum Exporting Countries stopped shipping oil to the United States in the 1970s. In what industry supporters describe as an era of energy abundance brought on by U.S. shale oil deposits, Republican leaders in the House say U.S. policies are out of date. White House spokesman John Earnest said ending the ban is a matter for the Commerce Department, saying the office of President Barack Obama does not support legislative […]

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Rubio: Priority No. 1 is lifting U.S. oil export ban

Republican presidential candidate Sen. Marco Rubio (R-FL) pledges to lift 1970s ban on U.S. crude oil exports if elected president. Photo by Kevin Dietsch/UPI OKLAHOMA CITY, Sept. 3 (UPI) — Lifting a ban on U.S. crude oil exports will bring "immediate" economic stimulus to the economy, Republican presidential contender Marco Rubio said. Sen. Rubio, R-Fla., addressed supporters in Oklahoma, saying one of the first things he’d do if elected president would be to lift the 1970s era ban on exports of domestic crude oil. "President Nixon signed it into law in the 1970s — long before the economy had been fundamentally transformed by globalization and technological innovations, long before the hydraulic-fracturing and shale revolutions had launched a new era of American energy," he said. "Lifting the crude-oil export ban will be an immediate boon to our economy." The American Petroleum Institute, which represents the interests of the oil and […]

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LNG Export

The Sabine Pass LNG export terminal. From a mile away, at the distant end of a flat, two-lane road, the Sabine Pass Liquefied Natural Gas terminal materializes like an alien city from the haze of the Louisiana bayou. Five white cylinders with domed tops, each 140 feet tall and 225 feet in diameter, rise from the empty horizon. Set on the Texas border 4 miles from the mouth of the Sabine River on the Gulf Coast, the terminal is one of the largest industrial energy facilities under construction in North America. The domes, made of nickel alloy and wrapped in a layer of carbon steel, are essentially giant freezers, each capable of holding 81,000 tons of liquefied natural gas (LNG) at -260F. Cheniere Energy, based in Houston, has spent more than a decade, and upwards of $20 billion, turning 1,000 acres of swamp into the first LNG export terminal […]

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Effects of removing U.S. crude export restrictions depend on price, resource assumptions

graph of propject U.S. crude oil production, as explained in the article text A new study by the U.S. Energy Information Administration (EIA) on the potential implications of allowing more crude oil exports finds that effects on domestic crude oil production are key to determining the other effects of a policy change. Gasoline prices would be either unchanged or slightly reduced. Trade in crude oil and petroleum products would also be affected. The recent rise in domestic crude oil production from 5.4 million barrels per day (b/d) in 2009 to 8.7 million b/d in 2014 and the prospect of continued supply growth have sparked interest in the question of how the relaxation or removal of current policies, which restrict but do not ban exports of crude oil produced in the United States, might affect markets for both crude oil and petroleum products over the next decade. EIA’s new report, […]

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EIA: Benefits of lifting US crude export ban most evident if output rises

A study released Sept. 1 by the US Energy Information Administration was apparent cause for celebration for several oil and gas industry groups, which took its findings as confirmation that lifting restrictions on US crude oil exports would be a net positive for the industry as well as consumers. EIA developed several analyses that examine the implications of removing the restrictions for the price of US and global marker crude streams, gasoline prices, crude production , refining activity, and trade in crude and petroleum products. The study, Effects of Removing Restrictions on US Crude Oil Exports , was conducted in response to requests from US Sen. and current Senate Energy and Natural Resources Committee Chairman Lisa Murkowski (R-Alas.) and former chairman and Sen. Mary L. Landrieu (D-La.), ( OGJ Online, Apr. 14, 2014 ), as well as current members Ronald L. Wyden (D-Ore.) and Maria E. Cantwell (D-Wash.). Murkowski […]

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Oil Export Bill Said to Be Set to Move as Price Fears Ease

Congress is set to begin consideration of a measure to lift the decades-old ban on U.S. crude exports after a government study concluded the move wouldn’t raise gasoline prices for consumers, people familiar with the plan said. A panel in the House of Representatives is planning to vote on a measure to lift the ban, which dates back to the Arab oil embargo of the 1970s, as early as next week, according to three lobbyists working on the matter, who asked not to be named because the markup hasn’t been announced yet. The full House may vote on it later in September, leaving ahead the more difficult task of gaining enough support for repeal in the Senate, they said. Repealing the ban has gained new political potency as hydraulic fracturing has triggered a boom in domestic oil and natural gas output. Oil companies such as Exxon Mobil Corp. have […]

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EIA: U.S. oil swaps make sense regionally

Crude oil swaps with Mexico makes sense for regional refiners, U.S. Energy Information Administration reports. UPI/Shutterstock/tcly WASHINGTON, Aug. 27 (UPI) — The U.S. crude oil swap agreement with Mexico makes sense for regional refiners looking to bridge the gap between oil grades, the U.S. government said. The U.S. Commerce Department’s Bureau of Industry and Security this month granted a request from Mexican energy company Petroleos Mexicanos, known also as Pemex, to swap as much as 100,000 barrels of U.S. crude oil per day for refining into the nation. The deal requires Mexico to refine the crude oil at home and forbids re-export to other nations. The U.S. Energy Information Administration noted the deal makes sense for North American refiners. U.S. refineries situated along the Gulf Coast are designed to process a heavier grade of crude, like that found in Mexico, while Mexican refiners are geared toward lighter oils, like […]

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US middle distillate demand, exports seen to slow on globally oversupplied market

Outlook for US middle distillate demand, which has grown slightly amid rising exports so far in 2015, will look bearish as the Brent/WTI spread narrows in a globally oversupplied market, speakers at Benposium East 2015 said in New York Thursday. Robust refining margins and lackluster demand growth in the first half of the year has led to the record-breaking stocks of ULSD in New York Harbor, Ed Morse, head of global commodity research at Citigroup Global Markets, said. Suzanne Minter, manager of energy analysis at Bentek Energy, said refined US product stocks have consistently been higher throughout 2015 than in previous years, and while demand is still increasing, it has not kept pace. "ULSD was supposed to be the barrel that refiners wanted to make, but these margins aren’t getting the uplift," Minter said. Article continues below… US Marketscan provides you with a daily market overview of the major […]

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Boehner: Oil export ban thwarts success

Speaker of the House John Boehner, R-Ohio, writes an op-ed in Pennsylvania newspaper in support of ending a 1970s ban on U.S. crude oil exports. File Photo by Kevin Dietsch/UPI PITTSBURGH, Aug. 24 (UPI) — U.S. House Speaker John Boehner wrote in a Pennsylvania newspaper the nation’s oil sector is headed for a "brick wall" in the form of a crude oil export ban. "For all its success, this energy boom is currently running into a brick wall in the form of … federal government policies that date back to the 1970s," Boehner wrote in the (Pittsburgh) News-Tribune-Review. Boehner, his Republican colleagues, led by Sen. Lisa Murkowski , R-Alaska, and some Democrats, notably Sen. Heidi Heitkamp, D-N.D., have moved several pieces of legislation aimed at overturning the 1970s ban on the export of domestic crude oil. The ban was enacted after Arab members of the Organization of Petroleum Exporting […]

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BofA Says Collapsing Crude Drags U.S. LNG Exports Down With It

Plummeting crude oil prices have dimmed prospects for soon-to-start U.S. liquefied natural gas exports, Bank of America Corp. said in a note to clients Monday. The gap between U.S. and global prices for the fuel has narrowed as oil’s collapse reduced the cost of crude-linked LNG contracts in Asia and Europe, Max Denery, an analyst at the bank in New York, said in the report. Oil in London has tumbled 25 percent this year, falling below $45 a barrel Monday for the first time since 2009, while U.S. gas has dropped 8.3 percent. The reduced price advantage comes as Cheniere Energy Inc. finishes construction of its Louisiana export terminal, which is poised to send the first shipment of U.S. LNG from the lower 48 states before the end of the year. North American cargoes will enter the market as gas from newly-built Australian terminals adds to a global supply […]

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Gas Awakening From U.S. Shale Slumber as LNG Shipments Near

After years of languishing in a shale-induced coma, the U.S. natural gas market is waking up. Seasonal price swings will intensify as the country begins shipping liquefied natural gas cargoes to Asia and Europe later this year, said Bank of America Corp., RBC Capital Markets LLC and Wood Mackenzie Ltd. While that’s good news for traders yearning for volatility, it could be bad news for consumers. Exports will help prices rebound from the slump caused by the U.S. pumping record amounts from shale formations. Growing domestic winter demand is already causing spikes and trading volumes in futures markets have rebounded to the highest level in three years. Average retail gas prices also will rise with LNG exports, according to Bloomberg New Energy Finance. “Connecting U.S. natural gas prices into the global market could result in wider spreads at home,” said Francisco Blanch, the head of commodities research at Bank […]

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Senate energy panel votes to lift oil export ban

An oil field is seen at sunrise near Bakersfield, California October 14, 2014. The U.S. Senate Energy Committee on Thursday narrowly passed a bill to lift a 40-year old ban on the export of crude oil, but the measure faces an uphill battle in getting passed by the full Senate. The bill to allow the United States to export oil and boost state revenue-sharing for offshore oil and gas drilling passed along party lines by a vote of 12-10. It was the second significant step in two days for advocates of lifting the ban: Republican House Speaker John Boehner announced his support on Wednesday for repealing the law. But Congressional Democrats remain reluctant to reverse the ban, citing, among other things, a fear it would lead to higher gas prices. Democratic support is seen as crucial to getting President Barack Obama to sign any legislation permitting crude exports. Senate […]

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DOE official: LNG exports could be limited by silt-clogged waterways, ports

Silt, which is increasingly filling US waterways and ports, potentially could limit US LNG exports if it is not dredged soon, a top US Department of Energy official warned. Sedimentary deposits in Louisiana’s Calcasieu Ship Channel, “where many LNG exports would be moving,” could reach a point where tankers moving in different directions won’t be able to pass each other, said Melanie Kenderdine, who directs DOE’s Energy Policy and Systems Analysis Office. “These, by and large, are federal responsibilities,” Kenderdine noted during a presentation on the Quadrennial Energy Review and energy security at the Center for Strategic and International Studies. “That makes funding projects difficult under sequestration and budget caps.” The problem should be addressed because DOE has approved LNG projects totaling 9.9 bcfd of export capacity, Kenderdine said. “If all of that gets built, it would bring us close to Qatar, which is the world’s largest LNG exporter […]

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Ending crude export ban would help rural US areas, House panel told

Rural US communities generally have benefited from the nation’s crude oil production renaissance, and potentially could be helped more if restrictions on exports of crude were eliminated, witnesses told a US House Agriculture Committee hearing on July 8. Texas Railroad Commission Chairman David J. Porter called the crude export ban “a leftover relic from another period of time.” Allowing more US-produced oil to be sold overseas would spur domestic production, foster economic growth, and provide direct benefits to rural America and the nation as a whole, Porter said in his written testimony. “The export ban is more than just an outdated policy,” he maintained. “Keeping it in place is actually harming our economy.” When crude prices recently dropped, Texas felt harsh economic impacts as thousands of production workers were laid off and rigs were idled, he told the committee. The number of drilling permits the commission issued fell from […]

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Net petroleum product exports continue to increase

graph of U.S. net petroleum product exports, as explained in the article text Source: U.S. Energy Information Administration, Petroleum Supply Monthly Over the past decade, domestic refinery output of petroleum products has grown significantly while consumption has declined, resulting in a major increase in product exports. Petroleum product exports averaged 4.1 million barrels per day (b/d) in the first four months of the year, an increase of 0.5 million b/d over exports the same time last year. Product imports are also higher than last year, but to a lesser extent, leading to an increase in net petroleum product exports. Import and export patterns vary by region, with most exports leaving from the Gulf Coast (Petroleum Administration for Defense District 3), and imports coming to the East Coast (PADD 1). Record-high refinery runs and increased global demand for petroleum products from the United States continue to push exports higher . […]

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U.S. light oil exports double in May, mostly to Europe

NEW YORK U.S. exports of ultra-light crude, also known as condensate, have doubled since the start of the year, with most shipments headed to Europe, according to traders familiar with the deals and data from an energy consultant. The United States exported between 120,000 and 140,000 barrels per day (bpd) of condensate last month, according to traders and ClipperData, which tracks ships and terminal loadings, up from about 60,000 bpd at the start of the year. The condensate is lightly processed through stabilizers due to rules banning crude exports in the United States, now the world’s third-largest oil producer. The rise comes as more companies look to take advantage of the ability to ship the oil overseas, including to places like the Netherlands, France, South Korea and Brazil. "One of the main surprises is that the majority of the exports have been to Europe rather than anywhere else, when […]

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Cheniere moving ahead with condensate export terminal in Texas

HOUSTON Cheniere Energy Inc is moving ahead with a $550 million export terminal in Texas that will ship processed condensate to international markets, a top executive said on Monday. In addition, the terminal will be able to export any type of domestic oil if the decades-old U.S. crude export ban is ever lifted, said Nelson Lee, director of crude trading and origination at Cheniere. "The reason why we’re going ahead with that project is we think that we will have unfettered crude oil exports in U.S at some point, and there aren’t the sort of logistics for the crude to exit the United States," Lee said at an energy conference in Houston. Lee recently joined Cheniere from BHP Billiton Ltd, where he headed condensate exports. BHP was the first company to export condensate without waiting for approval from U.S. regulators. Speaking at American Business Conferences’ North American Crude Markets […]

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Woodside, Sempra mull Texas LNG project

Australian energy company Woodside exploring options for liquified natural gas export facility in Texas. Photo courtesy of Woodside. PERTH, Australia, June 4 (UPI) — Australian energy company Woodside said Thursday it was in preliminary discussions to explore options for liquefied natural gas development in Texas. The Australian company said affiliate Woodside Energy signed a non-binding memorandum of understanding with energy company Sempra LNG. "[Both sides] will commence preliminary discussions and assessments pertaining to the potential development of a natural gas liquefaction facility at Port Arthur, Texas," Woodside said in a statement. The potential project could have a total export capacity of 10 million tons of LNG per year once permitted. In March, Sempra started the filing process with the Federal Energy Regulatory Commission to export LNG sourced from U.S. reserve basins to countries that have, or will have, a free-trade deal with the United States. A special permit is […]

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What would it take to free U.S. oil exports?

WASHINGTON Lawmakers pushing to repeal the 1970s-era ban on U.S. oil exports face a steep obstacle: The Obama administration sees no need to fully remove the restriction while the country is still importing part of its oil supply. And many politicians are wary of a voter backlash if gasoline prices go up just as they open the door to exports. However, Senator Lisa Murkowski, the Republican head of her chamber’s energy committee, is expected to introduce a bill as soon as Tuesday night that would lift the ban Congress passed in 1975 after the Arab oil embargo created fears of global shortages. While there is plenty of resistance in Congress against lifting the ban, the prospects for a reversal could improve under some of the following conditions: THE US OIL PRICE DROPS FURTHER Mainly because of the U.S. oil glut, domestic crude producers now get about $6 a barrel […]

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Why Cheap Oil Is Bad News for U.S. Gas-Export Hopes

For the past year, many in the United States have been rubbing their hands at the prospect of a huge natural-gas export boom, raising hopes of a flood of cheap and clean fuel being shipped to friends in Europe and Asia. But the long-awaited gas boom has yet to materialize — and with oil prices well below last year’s highs, it might never. At the peak of enthusiasm over U.S. gas exports, more than 30 proposed projects jumped on the bandwagon, with grandiose visions of dispatching tankers full of liquefied natural gas (LNG) from the East Coast, the Gulf Coast, and the Pacific Coast to thirsty markets all around the world. Leading U.S. politicians, from President Barack Obama to House Speaker John Boehner , R-Ohio, all have touted the prospects of Washington turning its energy wealth into geopolitical coin, especially now that Europe is redoubling efforts to reduce its […]

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US DOE sanctions LNG exports from Cove Point

The US Department of Energy reported that that it has issued a final authorization for Dominion Cove Point LNG LP to export US-produced LNG to countries that do not have a free-trade agreement with the US from its Cove Point LNG terminal in Calvert County, Md. The terminal is authorized to export LNG up to the equivalent of 770 MMscfd of natural gas for a period of 20 years. “The development of US natural gas resources is having a transformative impact on the US energy landscape, helping to improve our energy security while spurring economic development and job creation around the country,” DOE said. This increase in gas production is expected to continue, DOE said, adding that the US Energy Information Administration forecasts a record average production rate this year of 72.4 bcfd. Dominion Cove Point began construction on the export project in the fall after receiving authorization from […]

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Implications of higher domestic crude production for U.S. refining

graph of U.S. crude oil supply and disposition changes, as explained in the article text Source: U.S. Energy Information Administration, based on Turner, Mason & Company In response to multiple requests over the past years, EIA is developing a series of analyses that address the implications of current limitations on crude oil exports for prices, including both world and domestic crude oil and petroleum product prices, and for the level of domestic crude oil production and refining activity. The most recent report— Implications of Increasing Light Tight Oil Production for U.S. Refining —considers how refining activity in the United States might respond to low and high scenarios of increasing U.S. light tight oil production. EIA retained Turner, Mason & Company (TM) to conduct this analysis using their refinery expertise and modeling capabilities that represent the U.S. refining system in much greater detail than is possible using the modeling framework […]

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Freeport LNG unit closes on financing, starts building third train

FLNG Liquefaction 3 LLC, a unit of Freeport LNG Expansion LP , has closed on the $4.56 billion in financing needed to start construction of the third train of FLNG’s gas liquefaction and LNG loading facility on Quintana Island near Freeport, Tex. The construction cost for the combined three-train project is expected to be $12.5 billion, including owner’s costs and interest during construction. An additional $3 billion in funds were raised for refinancing and acquisition costs associated with the existing LNG import facility, letters of credit facilities, and a special contingency fund. With closing on this financing, Freeport LNG has completed all milestones and issued a full notice to proceed to CB&I Inc., Zachry Industrial Inc., and Chiyoda International Corp. to construct the project’s third train. Full three-train operation is expected by third-quarter 2019. LNG production from the first liquefaction train is expected in early 2018, with commercial operation […]

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EIA projections indicate US becoming a net exporter of natural gas

EIA projections indicate US becoming a net exporter of natural gas thumbnail In its recently released annual energy outlook (AEO2015), EIA expects the US to be a net natural gas exporter by 2017. After 2017, natural gas trade is expected to be driven largely by the availability of natural gas resources and by world energy prices. Increased availability of domestic gas or higher world energy prices each increase the gap between the cost of US natural gas and world prices that encourages exports of LNG and, to a lesser extent, greater exports by pipeline to Mexico. The AEO2015 examines alternate cases with higher and lower world oil price assumptions, which serve as a proxy for broader world energy prices given oil-indexed contracts, as well as with higher assumed US oil and natural gas resources. These assumptions significantly affect projected growth in annual net LNG exports after 2017. Net LNG exports […]

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Oil CEOs Press Obama Administration to Lift Export Ban

Oil tankers sit at a rail yard at the Kinder Morgan Inc. facility in Richmond, California. U.S. energy policies severely restrict crude exports while applying no such limits to products processed in refineries. Photographer: David Paul Morris/Bloomberg (Bloomberg) — About a dozen U.S. drilling executives, including ConocoPhillips Chief Executive Officer Ryan Lance, were in Washington this week trying to persuade White House officials and lawmakers to lift the 40-year ban on U.S. oil exports, according to two people familiar with the meetings. Chief executives from the lobbying group Producers for American Crude Oil Exports, or PACE, met with White House senior energy policy adviser Brian Deese March 11 to ask the Obama administration to roll back a prohibition on most U.S. oil exports imposed after the 1973 Arab oil embargo, according to two people, who asked not to be identified because the discussions weren’t public. Producers are eager to […]

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EIA: US petroleum product exports rise for 13th consecutive year

HOUSTON, Mar. 5 03/05/2015 US exports of petroleum products averaged a record 3.8 million b/d in 2014—an increase of 347,000 b/d from 2013—based on data from the US Energy Information Administration’s Petroleum Supply Monthly . In particular, exports of motor gasoline, propane, and butane increased, offsetting a decrease in exports of distillate , EIA said. EIA noted that the combination of record-high US refinery runs, which averaged 16.1 million b/d in 2014, and increased global product demand allowed US product exports to rise for the 13th consecutive year. Most of these exports were sent to Central and South America, followed by exports to Canada and Mexico. In fact, product exports from the US increased in every region except the Middle East, which declined to 47,000 b/d in 2014 from 55,000 b/d in 2013, EIA said. Exports of motor gasoline (including finished gasoline and blending components) in December 2014 set […]

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Rivals Hit Oil Exporter That Opened U.S. Spigot

ENLARGE Oil companies using Enterprise Products terminals on the Houston Ship Channel say its loading fee are raising costs on their exports. Photo: Corbis A Houston pipeline company became the envy of the energy industry last year when it found a way around the decades-old legal ban on exporting U.S. oil. But now several oil companies have turned on the company, Enterprise Products Partners LP, complaining it is trying to dominate the lucrative export business and muscle out competitors. Companies including BP PLC have complained to the U.S. Federal Trade Commission, which is investigating, according to people familiar with the matter. The commission, BP and Enterprise all declined to comment on the probe. But people in the industry say it stems from Enterprise’s purchase last fall of a rival pipeline and logistics firm, Oiltanking Partners LP. The $5.9 billion deal gave Enterprise control of the single largest oil-storage operator […]

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Oil Exports From U.S. Jump to Record as Shale Output Booms

The U.S. exported a record amount of crude oil in November after a five-year run of production growth that has made the country the most oil-independent in 20 years. Shipments surged 34 percent to average 502,000 barrels a day in November, the highest on record dating back to 1920, surpassing the previous monthly peak of 455,000 barrels set in March 1957, data from the U.S. Census Bureau and the Energy Information Administration show. The U.S. is now the 17th-largest exporter. The export record was unthinkable just five years ago, when U.S. crude production was still near a nadir following a 25-year decline. Since then, producers using horizontal drilling and hydraulic fracturing in underground shale rock have boosted output by 66 percent. Lawmakers in Washington are trying to end a 40-year-old law that restricts crude exports to just a few markets. “This is something we never expected to see,” said […]

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Oil Price Crash Claims First US LNG Project Casualty

URL: http://www.rigzone.com/news/oil_gas/a/136558/Exclusive_Oil_Price_Crash_Claims_First_US_LNG_Project_Casualty MILAN, Dec 30 (Reuters) – Excelerate Energy’s Texan liquefied natural gas terminal plan has become the first victim of an oil price slump threatening the economics of U.S. LNG export projects. A halving in the oil price since June has upended assumptions by developers that cheap U.S. LNG would muscle into high-value Asian energy markets, which relied on oil prices staying high to make the U.S. supply affordable. The floating 8 million tonne per annum (mtpa) export plant moored at Lavaca Bay, Texas advanced by Houston-based Excelerate has been put on hold, according to regulatory filings obtained by Reuters. The project was initially due to begin exports in 2018. Excelerate’s move bodes ill for thirteen other U.S. LNG projects, which have also not signed up enough international buyers, to reach a final investment decision (FID). Only Cheniere’s Sabine Pass and Sempra’s Cameron LNG projects have hit that […]

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Cheniere’s Corpus Christi LNG export project gains US FERC approval

Washington (Platts)–31Dec2014/453 pm EST/2153 GMT Federal regulators have approved Cheniere’s plan to export liquefied natural gas from Corpus Christi, Texas, following recommendations that the export facility and related infrastructure would result in minimal environmental impact if certain conditions are met. "We conclude that, with the conditions required herein, Corpus Christi Liquefaction’s project results in minimal environmental impacts and can be constructed and operated safely. Accordingly, we find that, subject to the conditions imposed in this order, Corpus Christi Liquefaction’s proposal is not inconsistent with the public interest," the Federal Energy Regulatory Commission said in an order Tuesday. Cheniere now awaits approval from the Department of Energy to export LNG from the project to countries that do not have free trade agreements with the US. DOE makes public interest determinations for energy export projects, while FERC is responsible for the export facility design, engineering and environmental footprint — a far […]

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U.S. oil export policies increasingly fluid

Commerce Department showing some flexibility in what’s permissible for oil exports under existing legislation. UPI/Shutterstock/tcly WASHINGTON, Dec. 31 (UPI) — A company planning exports of so-called condensate from the United States said it’s operating according to precedent, though laws may be on the cusp of change. Data from the American Petroleum Institute show U.S. oil production is around 9.1 million barrels per day, the highest rate in roughly 40 years and an increase of more than 14 percent from last year. The increase in oil production is a direct result of activities in shale basins, notably the Eagle Ford and Bakken reserve areas in Texas and North Dakota, respectively. Conservative lawmakers have said the increase in a production means it’s time to relax laws that restrict crude oil exports. Arab members of the Organization of Petroleum Exporting Countries in the early 1970s placed an embargo on oil exports in […]

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U.S. agency gives quiet nod to light oil exports

Full Article WASHINGTON (Reuters) – The main U.S. export authority is telling some oil companies that they should consider exporting a lightly processed form of crude oil called condensate without formal permission, according to people familiar with the discussions. In conversations that may help clear the way for more overseas sales of U.S. shale oil, the Commerce Department’s Bureau of Industry and Security (BIS) has told companies seeking clarification on the legal status of so-called "processed condensate" that self-classification – whereby companies export their product without any formal authorization – could be a way forward, the people told Reuters. An official familiar with the law said the agency’s discussions did not represent a change in policy since self-classification is allowed under U.S. export controls and is a routine, common practice for the majority of exports. Yet the message, though carefully couched as an informal suggestion, marks the first sign […]

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Condensate Exports Without U.S. Approval Seen as Norm

No government approval for U.S. condensate exports? No problem, says the lawyer who has been instrumental in poking a hole in the 39-year-old ban on most crude oil shipments. By early next year, most companies will be following the lead of BHP Billiton Ltd. (BHP) and exporting processed condensate without explicit approval from the Bureau of Industry and Security, said Jacob Dweck, a lawyer with Sutherland Asbill & Brennan LLP. That would allow a larger chunk of the 650,000 barrels a day of U.S. condensate to be exported. The U.S. banned most crude exports in 1975, with a few exceptions including shipments to Canada . Exports of refined products such as gasoline and diesel fuel are unrestricted. U.S. policy makers are under pressure to lift the export ban as companies pull record volumes of oil and gas out of shale formations from North Dakota to Texas , boosting domestic […]

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EIA: ‘Modest’ benefits from LNG exports

Positive, but limited, benefits seen coming from more exports of LNG from U.S. ports, analysis finds. UPI/A.J. Sisco WASHINGTON, Nov. 12 (UPI) — An increase in natural gas production from U.S. shale basins should support export growth, but the economic benefits will be modest, the government said. The U.S. Energy Information Administration said in a daily brief Wednesday the increase in U.S. natural gas production should support as much as 80 percent of the potential increase in demand resulting from the steady gains in exports of liquefied natural gas from the Lower 48 states. EIA in an analysis found LNG exports reach 2 billion cubic feet by next year, and eventually surge to as high as 20 billion cubic feet per day. In its study, EIA found the "effects on overall economic growth [from the emerging LNG market] were positive but modest." Construction began in Louisiana for the Cameron […]

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