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Republicans weigh two-step plan on energy, taxes

  • Market: Coal, Crude oil, Emissions, Natural gas, Oil products
  • 06/12/24

Republicans in the US Congress are considering trying to pass president-elect Donald Trump's legislative agenda by voting first on a filibuster-proof budget package that revises energy policy, then taking up a separate tax cut bill later in 2025.

The two-part strategy, floated by incoming US Senate majority leader John Thune (R-South Dakota), could deliver Trump an early win by putting immigration, border security and energy policy changes into a single budget bill that could pass early next year without Democratic support. Republicans would then have more time to debate a separate — and likely more complex — budget package that would focus on extending a tax package expected to cost more than $4 trillion over 10 years.

The legislative strategy is a "possibility" floated among Senate Republicans for achieving Trump's legislative goals on "energy dominance," the border, national security and extending tax cuts, Thune said in an interview with Fox News this week. Thune said he was still having conversations with House Republicans and Trump's team on what strategy to pursue.

Republicans plan to use a process called budget reconciliation to advance most of Trump's legislative goals, which would avoid a Democratic filibuster but restrict the scope of policy changes to those that directly affect the budget. But some Republicans worry the potential two-part strategy could fracture the caucus and cause some key policies getting dropped, spurring a debate among Republicans over how to move forward.

"We have a menu of options in front of us," US House speaker Mike Johnson (R-Louisiana) said this week in an interview with Fox News. "Leader Thune and I were talking as recently as within the last hour about the priority of how we do it and in what sequence."

Republicans have yet to decide what changes they will make to the Inflation Reduction Act, which includes hundreds of billions of dollars of tax credits for wind, solar, electric vehicles, battery manufacturing, carbon capture and clean hydrogen. A group of 18 House Republicans in August said they opposed a "full repeal" of the 2022 law. Republicans next year will start with only a 220-215 majority in the House, which will then drop to 217-215 once two Republicans join the Trump administration and representative Matt Gaetz (R-Florida) resigns.


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21/01/25

US trade deficit with Canada is no 'subsidy': TD Bank

US trade deficit with Canada is no 'subsidy': TD Bank

Calgary, 21 January (Argus) — The US' trade deficit with Canada is largely a result of America's thirst for energy and should not be confused with a "subsidy", according to one of Canada's largest banks today. "With respect to (US president Donald) Trump's assertion that the US subsidizes Canada to the tune of US$200bn per year, it's unclear where this number is derived," TD Economics said today in its Setting the Record Straight on Canada-US Trade report. "In any event, rather than a subsidy, the US trade deficit is a by-product of US economic outperformance relative to other countries. "The bulk of the US trade deficit with Canada is owing to energy," the bank said. "Outside of that, the scales tip into America's favour." The US is on track to record a trade deficit with Canada of roughly C$65bn ($45bn) in 2024, but that would flip to a C$60bn surplus for the US if energy were removed from the equation, said the bank. About 80pc of Canada's 5mn b/d of crude production is consumed by refineries in the US, with many in the Midcontinent having no practical alternative. US gasoline prices would move higher by 30-70¢/USGif the 25pc tariffs that Trump has threatened were applied to Canada's oil, TD Bank projects. But even with energy included, the US' deficit with Canada only represents 4pc of the US' overall trade deficit, meaning "reducing imports from Canada would barely move the needle," according to TD. The two highly-integrated countries exchange about C$3.6bn of goods and services each day, only slightly less than daily US-Mexico trade, the bank said. North American trade disparities have been thrust into the spotlight with Trump threatening tariffs against both of its neighbours. Trump opted not to impose any tariffs immediately when he took office on Monday, as previously threatened, instead pushing potential action against Canada and Mexico to 1 February. Trump said Monday he would immediately begin an "overhaul" of the US trade system to protect domestic workers and to start to "tariff and tax foreign countries to enrich our citizens". Mexican crude could help fill the void left by a reduction in Canadian crude flows, but that would exacerbate the trade deficit that the US has with that country, TD said. Mexico accounts for 20pc of the US' overall trade deficit — five times that of Canada — while China makes up the largest slice of the total US trade deficit, at 30pc, according to TD Bank, which cited official US Census data. The report also highlighted that Canada is the single-largest market for American goods, with at least 34 states selling more to Canada than to any other foreign country. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Winter storm shuts asphalt terminals, hits demand


21/01/25
News
21/01/25

Winter storm shuts asphalt terminals, hits demand

Houston, 21 January (Argus) — Ports in Texas and Louisiana remained closed to ship traffic Tuesday afternoon because of a winter storm. Waterborne asphalt terminals were heard shut in southeast Louisiana and Texas, and some market participants expect terminals to remain closed through Wednesday. According to vessel tracking data from Kpler, no ocean-going asphalt vessels were seen loading in Texas or Louisiana today. No exports have been heard delayed. Frigid temperatures have also halted liftings at the rack in areas across the Gulf following reports of slow retail demand earlier this month. New Orleans port officials cut off water supplies to port facilities beginning 19 January because of freezing temperatures, significant snowfall and high winds forecast by the National Weather Service (NWS). Operations are expected to be down at least for the rest of today. Marine pilots also suspended boardings at the Texas ports of Houston, Galveston, Texas City and Freeport late on 20 January. Traffic also was halted at the Sabine-Neches Waterway on the Texas-Louisiana border, which offers access to terminals and refineries in Port Arthur and Beaumont, Texas. Port Houston facilities, which include eight public terminals on the Houston Ship Channel, will remain closed through Wednesday, according to a statement from port officials. Arctic conditions are anticipated through Thursday, according to NWS. Travel will be hazardous due to the snow, ice and wind chill of up to 20mph. Even as temperatures rise, retail demand could remain muted on the Gulf coast with NWS forecasting above-normal precipitation across the region starting 27 January. By Meghan Yoyotte and Cobin Eggers Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Texas, Louisiana ports closed by winter storm: Update


21/01/25
News
21/01/25

Texas, Louisiana ports closed by winter storm: Update

Updates status of operations at Port Houston facilities. Houston, 21 January (Argus) — Ports in Texas and Louisiana remained closed to shipping traffic Tuesday afternoon due to a winter storm, a shipping agent said. Marine pilots suspended boardings at the Texas ports of Houston, Galveston, Texas City and Freeport late on 20 January. Traffic also was halted at the Sabine-Neches Waterway on the Texas-Louisiana border, which offers access to terminals and refineries in Port Arthur and Beaumont, Texas, as well as Cheniere's Sabine Pass liquefied natural gas terminal. Pilots also halted traffic at the Louisiana port of Lake Charles late on 20 January. Port Houston facilities, which include eight public terminals on the Houston Ship Channel, will remain closed through Wednesday, according to statement from port officials. Vessel operations may resume at container terminals on Wednesday evening, the statement said. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil taps diplomat as Cop 30 president: Update


21/01/25
News
21/01/25

Brazil taps diplomat as Cop 30 president: Update

Adds comments on US leaving Paris climate agreement. Sao Paulo, 21 January (Argus) — Brazil chose veteran diplomat Andre Aranha Correa do Lago to preside over the UN Cop 30 climate summit, it said. Correa do Lago's appointment breaks the mold of the latest Cop presidents. The last two Cop presidents — Mukhtar Babayev and Sultan Ahmed Al Jaber, who presided over Cop 29 and 28, respectively — were experienced oil executives, while Correa do Lago has mostly been a diplomat and an advocate of sustainable development. Correa do Lago has served as the Brazilian foreign affairs ministry's climate, energy and environment secretary since March 2023 and began his career as a diplomat in 1982. He previously served in the embassies in Madrid, Prague, Washington and Buenos Aires and in a mission to the EU in Brussels. Later, Correa do Lago was ambassador to Japan (2013-2018), India (2018-2023) and Bhutan (2019-2023). He has been working on sustainable development topics since 2001, according to the Brazilian government. He was director of the energy division of the foreign affairs' ministry from 2008-2011 and headed the ministry's environmental division from 2011-2013. He also served as Brazil's chief negotiator for climate change from 2011-2013 and presided over the 2012 UN Conference on Sustainable Development in Rio de Janeiro, also known as Rio+20. Brazil also tapped economist Ana Toni, the energy ministry's secretary for climate change since March 2023, as Cop 30's executive director. She holds a PhD in political science and focused her career on promoting projects and public policies regarding social justice, the environment and climate change. Toni was executive director of the climate and society institute from 2015-2022, president of Greenpeace's board from 2010-2017 and the director of the Ford Foundation in Brazil from 2003-2011. Brazil will host Cop 30 in Belem, the capital of northern Para state, in November. The city was chosen because of its proximity to the Amazon rainforest. Trump factor After the Cop 30 announcement, Correa do Lago spoke about US president Donald Trump's decision to pull the US from the Paris Climate agreement. "We are all still analyzing president Trump's decisions, but there is no doubt that it will have a significant impact on the preparations for Cop 30," he said, adding that the summit will have to deal with "such an important country" withdrawing from the agreement. But the US remains a member of the climate convention, so "several channels remain open," he said. Correa do Lago also said that he does not know whether there will be talks related to Trump's attendance at Cop 30. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Major NOLA terminals closed for winter storm


21/01/25
News
21/01/25

Major NOLA terminals closed for winter storm

Houston, 21 January (Argus) — The port of New Orleans remains closed on Tuesday afternoon due to US Gulf coast snow storms, causing terminals to shut or declare force majeures. Port officials cut off water supplies to port facilities beginning 19 January because of freezing temperatures, significant snowfall and high winds forecast by the National Weather Service (NWS). Operations are expected to be down at least for the rest of today. Host's United Bulk Terminal location at Nola declared force majeure on 20 January because of an expected 3-6 inches of snowfall. The port of Lake Charles in Louisiana also closed on 20 January and the Sabine-Neches Waterway on the Texas-Louisiana border was closed on 21 January. Associated Terminals at Nola closed its doors early on 21 January due to the storm. The company said vessels will be discharged once weather conditions improve and personnel are able to return to the site, but did not give a specific date. Major barge line ARTco, the transportation arm of ADM, shut down operations as well and is anticipated to return to 22 January if weather permits. CGB Barge has also halted operations in New Orleans and is waiting for conditions to improve before resuming work. Arctic conditions are anticipated at the port through Thursday, according to the NWS. Travel will be hazardous due to the snow, ice and wind chill of up to 20mph. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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