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Wood Mackenzie: Oil exports hinge on U.S. political maneuvering

If nothing happens soon, politicking in Washington may push the debate on U.S. crude oil exports to 2017, analysis finds. UPI/Dennis Brack/Pool Wood Mackenzie says. U.S. crude oil exports are restricted under legislation enacted in response to the 1970s export embargo from Arab members of the Organization of Petroleum Exporting Countries. There are no restrictions on certain petroleum products like gasoline and some companies have recently started testing the moratorium with the export of condensate, an ultra light form of oil found in U.S. shale deposits. Harold York, an analyst of the refining sector at Wood Mackenzie, said condensate exports amount to a de facto ease on the restrictions, though, according to him, there are few "overt calls" from either side of the U.S. political aisle to lift the ban completely. Last week, Australian company BHP Billiton said it was the one that concluded oil products processed from the […]

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BHP Seen Shipping First U.S. Condensate Without Ruling

BHP Billiton Ltd. (BHP) plans to export condensate from the U.S., the first company seen to ship the fuel abroad without express permission from federal regulators. BHP sold a cargo after deciding that it’s a processed product eligible for export and without a direct ruling from the U.S. Commerce Department, said a person familiar with the trade, asking not to be identified because the information isn’t public. The company plans to export condensate from Texas’s Eagle Ford formation that’s been run through distillation towers, Eleanor Nichols, a Melbourne-based BHP spokeswoman, said in an e-mailed statement today. The shipment shows how companies are increasingly finding ways around a four-decade-old law prohibiting most oil from leaving U.S. shores. Enterprise Products Partners (EPD) and Pioneer Natural Resources Co. (PXD) received rulings this year from the Commerce Department allowing them to send the lightly-processed oil overseas. South Korea bought at least one of […]

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Crude exports and re-exports continue to rise; some volumes sent to Europe and Asia

Source: U.S. Energy Information Administration, Petroleum Supply Monthly The United States exported 401,000 barrels per day (bbl/d) of crude oil in July 2014, the highest level of exports in 57 years and the second highest monthly export volume since 1920, when EIA’s published data starts. Recent crude oil exports are also noteworthy for both their origins and destinations. As a result of existing U.S. crude oil export restrictions, most U.S. crude exports are sourced domestically and are sent only to Canada. However, since April, crude exports have included modest amounts of Canadian-produced barrels that were moved through the United States and then re-exported to Switzerland, Spain, Italy, and Singapore. Source: U.S. Energy Information Administration, Petroleum Supply Monthly 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 […]

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Shale Boom Redraws Oil Routes as Alaskans Ship to Korea

For signs of how the U.S. shale boom is transforming the global flow of oil, look halfway across the world at South Korea . The Asian nation, which relies on the Middle East for about 86 percent of its oil imports, is benefiting as new output from Texas to North Dakota displaces the crudes that fed U.S. refineries for decades. South Korea received this month a shipment of Alaskan oil for the first time in at least eight years and may buy more, the importing company said. The country was one of the first to receive a cargo of the ultralight U.S. oil known as condensate after export rules were eased. The U.S. shale revolution has driven oil output to the highest in more than three decades, reducing America’s need for overseas purchases and sinking global prices into a bear market . South Korea is seeking to reduce its […]

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Effect of Increased Levels of Liquefied Natural Gas Exports on U.S. Energy Markets

Introduction This report responds to a May 29, 2014 request from the U.S. Department of Energy’s Office of Fossil Energy (DOE/FE) for an update of the Energy Information Administration’s (EIA) January 2012 study of liquefied natural gas (LNG) export scenarios. This updated study, like the prior one, is intended to serve as an input to be considered in the evaluation of applications to export LNG from the United States under Section 3 of the Natural Gas Act, which requires DOE to grant a permit to export domestically produced natural gas unless it finds that such action is not consistent with the public interest. Appendix A provides a copy of the DOE/FE request letter. DOE/FE asked EIA to assess how specified scenarios of increased exports of LNG from the Lower 48 states could affect domestic energy markets, focusing on consumption, production, and prices. The DOE/FE scenarios posit total LNG exports […]

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Construction starts on Cameron LNG plant

Ground broken on Louisiana plant designed for liquefied natural gas exports. (UPI/Shutterstock/tcly) Construction began in Louisiana on a plant cleared to export around 1.7 billion cubic feet of U.S. natural gas per day, joint venture partners said. Officials from the consortium led by Sempra Energy and Japan’s Mitsubishi Corp. were on hand for the groundbreaking ceremony in Hackberry, La., for the Cameron liquefied natural gas project . "We look forward to 2018 when the first LNG cargo is loaded and on its way to global markets," Farhad Ahrabi, chief executive officer at Cameron LNG, said in a Thursday statement. Development group Cameron LNG said the Hackberry plant represents a $10 billion investment. Once completed, it will be able to export 12 million tons of LNG, or around 1.7 billion cubic feet per day. The groups behind the project have export deals with several Asian countries. Critics of U.S.-sourced LNG […]

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Oil industry fight erupts over exports

The Independent Petroleum Association of America said it rejected complaints over decisions that cleared the way for the export of petroleum products. Crude oil exports are restricted under legislation enacted in the wake of the oil embargo imposed in the 1970s by Arab members of the Organization of Petroleum Exporting Countries. Refinery consortium Consumers and Refiners United for Domestic Energy last week said a June decision by the Commerce Department’s Bureau of Industry and Security to clear exports of so-called condensate as a petroleum product rather than crude oil was incorrect. IPAA said the refiner’s real complaint has more to do with competition than the "realities surrounding U.S. energy security." IPAA argues for more exports, citing the exponential rise in U.S. oil production that came as a result of the shale boom. "It’s sad that an organization that purports to stand up for consumers would distort the plain language […]

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Plains All American Moving to Join Condensate Exporters

Plains All American Pipeline LP (PAA) says it should be on the list of companies that can export lightly processed oil from the U.S. The company has all the same assets in place that helped Pioneer Natural Resources Co. (PXD) and Enterprise Products Partners LP (EPD) get relief from 29-year-old crude export restrictions this year, Plains Chief Executive Officer Greg Armstrong said in a conference call with analysts yesterday. “We have the stabilization, distillation towers and the pipeline system all the way to the dock, we can pretty much trace the pedigree of that barrel all the way through,” Armstrong said. “The only thing that might get in our way is political arbitrariness.” Pioneer and Enterprise jolted the oil industry when they said the U.S. Commerce Department issued private rulings allowing them to export ultra-light crude that has gone through a stabilizer that uses a distillation tower. The first […]

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Investment decision made for Cameron LNG

French energy company said Thursday it made a final investment decision on a liquefied natural gas plant planned for Louisiana. GDF Suez is a partner with Cameron LNG for the LNG plant planned for Hackberry, La. The plant is designed to produce and export up to 12 million tons of LNG per year. "We are very pleased to partner in one of the first LNG export projects in the United States," Gerard Mestrallet , president and chief executive officer of GDF Suez said in a statement . Production of the facility should be completed in 2019 at a cost of $10 billion. The Federal Energy Regulatory Commission issued its final environmental impact statement on the Cameron LNG facility in early May. The construction and operation of the facility would result in some environmental damage, but that damage would be rendered "less-than-significant" by the company’s proposed mitigation strategies, FERC said. […]

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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 […]

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Cheniere signs U.S. gas export deal with Iberdrola

U.S. gas company Cheniere Energy said Friday its Spanish counterpart, Iberdrola, agreed to buy liquefied natural gas from a planned export terminal in Texas. Cheniere Energy Chairman Charif Souki said Friday deliveries of as much as 400,000 tons of liquefied natural gas from the planned Corpus Christi export facility could begin by 2019. Iberdrola, he said, "is the first foundation customer" for the export facility and more deals are on the way. "We are in advanced discussions with other counterparts and are working towards finalizing additional agreements," he said in a statement . "We expect to complete all necessary steps to reach a final investment decision and begin construction by early 2015." The deal is the third of its kind for Cheniere. The company signed a deal with Spanish energy company Endesa in April and with Indonesian state-owned company PT Pertamina in December. Iberdrola in a statement said the […]

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API: Oil exports good for most U.S. states

Even states that don’t produce much oil could benefit from the lifting of a 1970s-era export ban, a report prepared for the American Petroleum Institute says. The U.S. government restricted crude oil exports in 1973 in response to an embargo from Arab members of the Organization of Petroleum Exporting Countries. An increase in U.S. oil production has prompted groups like API to call for a repeal of the 1973 measure. Kyle Isakower, vice president of regulatory policy for API, which represents the interests of the energy industry, said exports would bring benefits to most of the 50 states. "New jobs, higher investment, and greater energy security from exports could benefit workers and consumers from Illinois to New York, especially in areas where consumer spending and manufacturing drive growth," he said in a statement Thursday. The report, prepared by ICF International and EnSys Energy, says some states without much oil […]

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Export Delusions: Why the rush to export natural gas is a fool’s errand

On a sweltering day in May last year I sat dumbfounded at a US Senate Energy & Natural Resources Committee meeting. Pat Outtrim, VP of Cheniere Energy, was arguing for fast-tracking approval of Liquified Natural Gas (LNG) exports because it would benefit energy consumers… in Great Britain . A year later and the drum beat for approving LNG export operations is reaching a crescendo. This time it’s spurred by claims that we must save Europeans from the grip of Russia, who is using its position as the primary natural gas provider in Europe to annex Crimea and assert its power in the region. In both cases, the rationale is the same: The US has an over-supply of natural gas—thanks to an explosion of hydraulic fracturing (“fracking”) for previously inaccessible shale gas—and it’s our duty as international […]

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Cove Point LNG draws mixed reviews

Environmental advocacy groups said U.S. regulators need to restart their review process for an export license for liquefied natural gas from Cove Point, Md. The Federal Energy Regulatory Commission issued its environmental assessment for the LNG terminal in Maryland. Dominion Energy wants to ship 770,000 cubic feet of LNG per day to countries that don’t have a free-trade agreement with the United States. FERC, in a 241-page filing , said there would be "no significant impact" on the environment provided the company follows the estimated 80 mitigation measures. Diane Leopold, president of Dominion Energy, said the review was " thorough and independent ." FERC’s assessment drew fire from environmental groups concerned about the impacts of the facility. "FERC has failed the public once again with the release of this flimsy and deeply flawed environmental review," Jorge Aguilar, the southern region director for Food & Water […]

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FERC gives Cameron LNG clean bill of health

There may be some environmental impacts from the Cameron liquefied natural gas in Louisiana, but they’ll be manageable, a U.S. regulator said. The Federal Energy Regulatory Commission issued its final environmental impact statement on the Cameron LNG facility . It said Wednesday the construction and operation would result in some environmental damage, but that damage would be rendered "less-than-significant" by the company’s proposed mitigation strategies. There was no statement from the project company on FERC’s assessment. The project will be able to export about 12 million tons of LNG sourced from U.S. natural gas basins each year. In February, it received regulatory approval to ship LNG from a terminal in Cameron Parish, La., to countries that don’t have a U.S.-free trade agreement, such as India and Japan. Cameron is the sixth such project in the United States to receive non-FTA approval since 2011. Construction […]

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Russia Is Slowly Turning The NatGas Tap Off To Europe

While Naftogaz (Ukraine’s gas pipeline operator) states that all gas transportation from Russia to Europe is running normally, Bloomberg reports that Russian natgas exports to Europe are declining. Shipments are down over 4% from the prior week and also lower to Ukraine . This ‘adjustment’ follows increased sanctions by the West as Medvedev’s notable statement this morning that Ukraine owes Russia $16bn. NatGas output is tumbling The good news: Gazprom today said natgas transit to Europe via Ukraine, supplies for Ukrainian consumption   But Pay Up… Ukraine owes Russia $11b after collapse of 2010 deal, Russian Prime Minsiter Dmitry Medvedev says to President Vladimir Putin at Security Council meeting, according to transcript on Kremlin website.   Medvedev adds $3b Ukraine bonds bought in Dec., ~$2b debt to Gazprom for natgas supplies   NOTE: In 2010, Russia agreed to sell natgas at discount in exchange for extending lease to Black […]

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Are Natural-Gas Exports the Next Keystone?

A coalition of grassroots environmentalists are galvanizing around a fossil-fuel project and urging President Barack Obama to oppose it. Sound familiar? It’s not the Keystone XL pipeline, but the parameters of the fight—and the arguments—are awfully similar to the fight that’s been raging in Washington and throughout the country over the proposed pipeline for the last five years. The Sierra Club and 350.org , two advocacy organizations that have been key in rallying opposition to Keystone, helped organize a letter 16 groups sent Tuesday to the White House urging Mr. Obama to oppose exporting natural gas on the basis of global warming and are calling out one proposed project specifically. It’s the first organized letter by environmentalists urging the White House to oppose such an export policy, which Mr. Obama has so far supported. “We were told when the Keystone fight came up, there wasn’t a chance […]

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Louisiana's Gas Supply-Demand Balance: At A Crossroads

For more than 50 years, Louisiana has stood out as one of North America’s leading natural gas producers. Boasting pipeline and storage infrastructure to support widespread production from conventional onshore wells in-state and from neighboring Texas as well as offshore from the Gulf of Mexico, the Bayou State has long been at the crossroads of the United States’ natural gas industry. However, a number of factors could transform Louisiana from a key gas supplier to a major demand center. Production from conventional gas fields is declining while relatively new supplies from the Haynesville, Marcellus and other shale gas plays are poised to meet growing demand for gas-fired electricity in the Southeast, power for new petrochemical plants in the state and exports of liquefied natural gas (LNG) from new Gulf Coast terminals. In order to maintain its gas market equilibrium, Louisiana needs to tap new supply sources, concludes the new […]

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Louisiana’s Gas Supply-Demand Balance: At A Crossroads

For more than 50 years, Louisiana has stood out as one of North America’s leading natural gas producers. Boasting pipeline and storage infrastructure to support widespread production from conventional onshore wells in-state and from neighboring Texas as well as offshore from the Gulf of Mexico, the Bayou State has long been at the crossroads of the United States’ natural gas industry. However, a number of factors could transform Louisiana from a key gas supplier to a major demand center. Production from conventional gas fields is declining while relatively new supplies from the Haynesville, Marcellus and other shale gas plays are poised to meet growing demand for gas-fired electricity in the Southeast, power for new petrochemical plants in the state and exports of liquefied natural gas (LNG) from new Gulf Coast terminals. In order to maintain its gas market equilibrium, Louisiana needs to tap new supply sources, concludes the new […]

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US to be world’s biggest oil supplier by 2016

Page added on February 21, 2014 As the US economy continues to grow, experts say it will rely less on the world’s major oil exporters in Africa and the Middle East, regions largely sustained by U.S. imports. According to the International Energy Agency, the economy will grow by 2.8 percent in 2014, higher than the 2.6 percent it previously forecasted. The International Monetary Fund predicts the global economy will grow in the same direction by 3.7 percent. Eventually the U.S. will pull ahead of Saudi Arabia and Russia in oil production, becoming the largest oil supplier in the world by 2016, according to a report by the energy group. An estimated 9.6 million barrels of oil will flow per day in the country, reversing the upward oil import trend that has been ongoing for four decades. But a projected increase in supply doesn’t necessarily mean crude oil prices are […]

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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 […]

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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 […]

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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 […]

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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 […]

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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.

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