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Trump energy nominee vows to expand US LNG

  • Market: Crude oil, Emissions, Natural gas, Oil products
  • 15/01/25

President-elect Donald Trump's nominee to lead the US Department of Energy (DOE), oil executive Chris Wright, said today he supports expanded LNG production and an "evolution" in energy systems to address climate change.

Wright, the chief executive of oil services company Liberty Energy, told lawmakers he would focus on trying to "unleash American energy at home and abroad" and to restore "energy dominance" if confirmed to the position.Wright also said that DOE should support innovation and technology, and revisit federal policies that make it "too easy to stop projects" and very hard to begin them.

"Previous administrations have viewed energy as a liability instead of the immense national asset that it is," Wright said at a confirmation hearing with the Senate Energy and Natural Resources Committee. "To compete globally, we must expand energy production, including commercial nuclear and liquified natural gas, and cut the cost of energy for Americans."

Trump, after being sworn in on 20 January, is expected to quickly order DOE to lift a pause on licensing of new LNG export facilities that President Joe Biden imposed nearly a year ago. DOE is also responsible for managing the US Strategic Petroleum Reserve, which currently holds 394mn bl of crude, and oversees a vast portfolio of loans and grants for clean energy projects, including an $8bn program intended to support the development of new hubs for clean hydrogen.

Wright did not offer in-depth comments on the timeline for issuing licenses to proposed LNG export terminals, which Trump has pledged to approve on his "very first day back." But Wright committed he would consider how licensing more LNG export capacity could affect US natural gas prices, which could increase by 31pc by 2050 if LNG exports are "unconstrained", a study from President Joe Biden's administration found.

Democratic lawmakers at the hearing raised concerns about Wright's past comments that downplayed the risks of climate change. US senator Alex Padilla (D-California), whose state is dealing with tens of billions of dollars in damage from ongoing wildfires, cited a LinkedIn post in 2023 in which Wright said alarm about wildfires raging in Canada at the time were simply "hype to justify impoverishment from bad government policies."

Wright, who wrote in a separate LinkedIn post that there is no "climate crisis", said he stood by his 2023 comments on the wildfires. Wright said climate change is a "real and global phenomenon", and that DOE has a role to play by supporting progress in technologies such as nuclear, solar, geothermal and battery storage.

"It is a real issue," Write said. "It's a challenging issue, and the solution to climate change is to evolve our energy system."

Wright is widely expected to win confirmation in the Senate, where Republicans will have a 53-47 majority once Ohio governor Mike DeWine (R) fills the seat recently vacated by US vice president-elect JD Vance. Trump has said Wright will also serve on his newly created Council of National Energy, which will oversee policies across the federal government related to energy.


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07/11/25

Cop: Paris goals remain elusive

Cop: Paris goals remain elusive

Belem, 7 November (Argus) — A decade after the birth of the Paris climate agreement, most countries still hail it as a landmark. But they also agree that to meet the agreement's goals, countries still need to implement much of what they committed to do 10 years ago. That seems to be the sentiment, heading into the 10 November start of the Cop 30 UN climate summit in Belem, Brazil. It is one that was raised many times during the leaders' summit held over the past two days in advance of the main conference and re-confirms its status as the "implementation Cop". "The Paris Agreement is rightly celebrated, but it is poorly implemented," said Laurent Fabius, president of Cop 21, where the agreement came together in 2015. Others at the pre-Cop leaders' summit appeared to agree. "What we must ask ourselves today is: are we really doing our best?" Brazilian president Luiz Inacio Lula da Silva said. "The answer is: not yet." While the greenhouse gas emissions reduction pledges made over the past decade can be hailed as considerable progress, more needs to be done to reach the Paris goals. The agreement aims to limit the rise in temperature global temperatures to "well below" 2°C above pre-industrial levels and pursues a 1.5°C threshold. At the moment, the world looks to be on a path to 2.3-2.5°C . "What we are expecting from Cop is to implement things that have already been decided," Fabius said, referring to the "circle" of eight past Cop presidents he is leading in Belem. "Implementation. Implementation. Implementation," Turkish vice president Cevdet Yılmaz said. But what implementation means varies from one party to another, usually along the usual global ‘north and south' lines that are common at the UN talks. "Developed countries should take the lead on emissions," Chinese vice premier Ding Xuexiang said. He also called for "true multilateralism" and for countries to "translate commitments into concrete action." "We need to strengthen international collaboration in green technology and industry, remove trade barriers and ensure the free flow of quality green products to better meet the needs of global sustainable development", he said. European leaders reiterated their commitment to Paris goals. "This must be the Cop that keeps 1.5‌°C within reach", European Commission president Ursula von der Leyen said. "Europe is staying the course, and we offer our support to our partners to do the same." Finance remains the big obstacle. "Compensation is necessary", Suriname president Jennifer Geerlings-Simons said. Last year's Cop, in Baku, Azerbaijan, resulted in a commitment of at least $300bn/yr for developing countries by 2035, with developed countries "taking the lead." The agreement also calls for public and private sources to scale up to at least $1.3 trillion/yr, also by 2035. But developing countries wanted a significantly higher commitment, and many say they are still waiting for past pledges to be fulfilled to help them transition to cleaner energy and adapt to climate change. "The promises of climate finance have not been met," Lula said. "Today, only a small portion of climate finance reaches the developing world." If that money does not come through, the goals of Paris may be further out of reach. "Without adequate means of implementation, demanding ambition from developing countries is unfair and unrealistic," Lula said. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: 11 countries join carbon market group: Update


07/11/25
News
07/11/25

Cop: 11 countries join carbon market group: Update

Adds details of new endorsements Sao Paulo, 7 November (Argus) — Brazil, China and the EU launched the Open Coalition on Compliance Carbon Markets, an initiative to standardise and integrate different national carbon markets, Brazilian president Luiz Inacio Lula da Silva said at a world leaders' summit on 7 November. "Carbon markets can become important sources of public revenue, but they will only gain scale if countries move towards common parameters," Lula said. But "there are still pending tasks", he added. Those include defining better methodologies for accounting for climate finance, the creation of "equitable, collectively decided" environmental rules and increasing the size and efficiency of multilateral banks. Brazil today announced eight new endorsements, from Armenia, the UK, Canada, Chile, France, Germany, Mexico and Zambia. The coalition remains open to new signatories, Brazil added. "Carbon pricing has become a central tool to reduce greenhouse gas emissions with a strong business case for the economy and for the people," European Commission president Ursula von der Leyen said. "We want to work closely with Brazil and with many like-minded partners on putting a price on carbon. The key to success is to do it right and to do it together." The coalition will work to implement ambition, effectiveness and fairness of compliance carbon markets as an "important policy tool for achieving nationally determined contributions… while ensuring environmental integrity and supporting a just transition", the European Commission said. It also creates a platform for countries to work together to develop and enhance compliance carbon markets and carbon pricing policies, it added. There are 80 carbon pricing instruments in more than 50 countries, which cover around 30pc of global greenhouse gas emissions, according to the World Bank. Brazil in October launched a secretariat to regulate the country's carbon market. The legislation creating a regulated carbon market in the country passed in December last year . Von der Leyen encouraged other countries to also launch their own domestic compliance carbon markets and join the coalition. The leaders' summit, held on 6-7 November in Belem, northern Brazil, takes place just ahead of the UN Cop 30 climate talks, which begin on 10 November, also in Belem. 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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Cop: EU, China join Brazil in carbon market coalition


07/11/25
News
07/11/25

Cop: EU, China join Brazil in carbon market coalition

Sao Paulo, 7 November (Argus) — Brazil, China and the EU launched the Open Coalition on Compliance Carbon Markets, an initiative to standardise and integrate different national carbon markets, Brazilian president Luiz Inacio Lula da Silva said at a world leaders' summit on 7 November. "Carbon markets can become important sources of public revenue, but they will only gain scale if countries move towards common parameters," Lula said. But "there are still pending tasks", he added. Those include defining better methodologies for accounting for climate finance, the creation of "equitable, collectively decided" environmental rules and increasing the size and efficiency of multilateral banks. "Carbon pricing has become a central tool to reduce greenhouse gas emissions with a strong business case for the economy and for the people," European Commission president Ursula von der Leyen said. "We want to work closely with Brazil and with many like-minded partners on putting a price on carbon. The key to success is to do it right and to do it together." The coalition will work to implement ambition, effectiveness and fairness of compliance carbon markets as an "important policy tool for achieving nationally determined contributions… while ensuring environmental integrity and supporting a just transition", the European Commission said. It also creates a platform for countries to work together to develop and enhance compliance carbon markets and carbon pricing policies, it added. There are 80 carbon pricing instruments in more than 50 countries, which cover around 30pc of global greenhouse gas emissions, according to the World Bank. Brazil in October launched a secretariat to regulate the country's carbon market. The legislation creating a regulated carbon market in the country passed in December last year . Von der Leyen encouraged other countries to also launch their own domestic compliance carbon markets and join the coalition. The leaders' summit, held on 6-7 November in Belem, northern Brazil, takes place just ahead of the UN Cop 30 climate talks, which begin on 10 November, also in Belem. 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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Petrobras increases spending by 24pc in 3Q: Update


07/11/25
News
07/11/25

Petrobras increases spending by 24pc in 3Q: Update

Updates with investment plans in paras 3-4 and explorations plans in paras 8-9 Rio de Janeiro, 7 November (Argus) — Brazilian state-controlled Petrobras' investments increased by 24pc in the third quarter from a year earlier, as the firm continues to focus on production in the offshore pre-salt. Petrobras spent $5.5bn in capital expenditure (capex) in July-September, of which $4.7bn was for exploration and production. Of this investment in exploration and production, $2.7bn went to developing production of the pre-salt cluster in the Santos basin, particularly the construction of seven new floating production, storage and offloading units that will serve the Buzios, Atapu and Sepia fields. A further $900mn went to developing production in the Campos basin's pre- and post-salt, and $500mn went to exploration. Total investments over the first nine months of the year were $14bn, a 29pc increase on the same period last year. The company has speeded up investment execution due to projects being brought forward, rather than higher costs, and is on track to meet guidance by year's end, directors said. Capex guidance for 2025 as outlined in Petrobras' 2025-2029 business plan is $18.5bn. The firm is due to present an updated plan at the end of November. There are no plans to cut investments next year, said the director for engineering, technology and innovation, Renata Baruzzi. Petrobras posted a profit of R32.7bn ($6bn) in the third quarter, a 0.5pc increase on the same quarter last year and 23pc more than in the previous quarter. Higher crude production as well as stronger crude exports and domestic sales of diesel drove the third quarter result, Petrobras said. It also cited a small rallying of oil prices, with the price of Brent growing by 2pc compared with the second quarter, and lower operational costs, as contributing factors. The company's board approved a payout of R12.16bn ($2.3bn) to shareholders, or R0.9432/share, down from R1.3282/share a year earlier. Dividends will be paid in two installments, in February and March. Exploration going forward Petrobras celebrated receiving regulatory approval last month to drill an exploratory well in the Foz do Amazonas basin off Brazil's northern coast. This is the most coveted area in the equatorial margin, a new oil frontier which could contain reserves similar to those found off Guyana. The company hopes to find oil in this first well, named Morpho, but if not it will continue exploration, director for exploration and production Sylvia Anjos said. "We are already planning for eight wells in the region," she said. By Constance Malleret Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US EPA grants more waivers from biofuel quotas


07/11/25
News
07/11/25

US EPA grants more waivers from biofuel quotas

New York, 7 November (Argus) — President Donald Trump's administration today granted small refiners even more exemptions from federal biofuel blend mandates, raising the stakes of a debate about whether larger oil companies should shoulder more of the burden. The US Environmental Protection Agency (EPA) granted two full exemptions from the program's annual blend requirements, halved obligations in response to 12 petitions, and denied two others. The agency requires oil refiners and importers to annually blend biofuels or buy credits from those who do, though small facilities that process 75,000 b/d or less can request program waivers that can save them tens of millions of dollars. The agency used the same methodology as its sweeping August decision , which responded to a historic backlog of petitions and granted most refiners some relief from years of mandates. New petitions poured in afterwards, including from refiners that had not requested waivers in years. And more decisions could come soon, with EPA committing Friday to "address new petitions as quickly as possible" and to try to meet a legal requirement to decide requests within 90 days. Farm and biofuel groups fear that widespread waivers curb demand for their products and have lobbied the Trump administration to follow through on a plan to make oil companies without exemptions blend more biofuels in future years to offset past exemptions for their smaller rivals. Particularly for higher-cost products like renewable diesel and biogas, any dip in demand can prompt biorefineries to slash output. The debate has intensified in recent weeks after a refiner granted generous exemptions in August announced plans to convert a renewable diesel unit back to crude. "The impact on biofuel and agriculture markets will be devastating" without compensating for these exemptions in future biofuel quotas, said Geoff Cooper, president of the ethanol lobby Renewable Fuels Association. EPA already planned on estimating future exemptions from 2026-2027 requirements when finalizing biofuel mandates those years. But the agency has added more work to its plate with a subsequent plan to force large oil refiners to compensate for either all or half of the biofuel volumes lost to actual and expected exemptions from 2023-2025 requirements. The impact of older exemptions is less significant since the credits are expired. The challenge for EPA is that small refiners can submit new or revised petitions at any time, including for years-old mandates. That makes it hard for EPA to accurately forecast future exemptions, and biofuel groups have feared that the agency could muddle the effects of its "reallocation" plan by underestimating volumes ultimately lost to program waivers. Indeed, EPA with its Friday decisions has already waived more requirements than it predicted earlier this year. The agency last forecast that exemptions from 2023 and 2024 mandates would amount to around 1.4bn Renewable Identification Number credits (RINs) of lost demand — but now, the waivers have already reduced obligations those years by 1.92bn RINs, according to program data. If EPA sticks to its plans, that means large refiners will have to blend an even greater share in future years than expected. But if the Trump administration waters down its reallocation idea, biofuel demand could sink more than previously forecast too. There is also the risk that EPA underestimates exemptions for the 2025 compliance year. EPA last forecast that exemptions from those requirements will amount to 780mn RINs of lost demand but has not yet decided any of the 12 pending petitions for that year. Many more requests are likely. Small refiners add to their winnings The August exemptions were a windfall for some oil companies. HF Sinclair, which owns multiple small refineries, last week reported $115mn from lower compliance costs as well as a $56mn indirect benefit from "commercial optimization" of its RIN credit position. And HF Sinclair won more Friday, winning full waivers from 2023 and 2024 biofuel mandates for the "east" section of a larger 125,000 b/d complex in Tulsa, Oklahoma that before September had not previously requested relief in at least three years. The company also won partial relief for two other units from 2021 mandates. Phillips 66 won four years of partial relief for its 66,000 b/d Montana facility, as did Big West Oil for its 35,000 b/d Utah plant. Silver Eagle won exemptions from 2023 blend mandates for two smaller units it owns in Wyoming and Utah. The only Friday denials were for Chevron's 45,000 b/d Utah refinery, which applied for the first time in years just last month. But the increasingly generous relief for small refiners is likely to provoke further backlash from larger oil companies, which argue that making them blend more biofuels is anticompetitive and illegal. EPA is months behind schedule on setting biofuel mandates for 2026 and 2027 and has a deadline Friday to tell a court more about how its reallocation plan affects its timeline. Biofuel groups have asked the court to force the agency to finalize program updates by year-end. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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