US readies repeal of methane rules for oil sector
President Donald Trump's administration says it could rescind requirements for oil and gas companies to reduce their emissions of methane, a potent greenhouse gas, by the end of next month.
The US Environmental Protection Agency (EPA) on 29 May submitted its final rule on the methane standards for internal review, according to a court filing today. If the White House Office of Management and Budget approves a request to expedite internal review, the agency anticipates it can finalize the rule by the end of July.
Oil and gas companies have been complying with the methane restrictions since 2016. The rule was the last major climate regulation issued under former president Barack Obama, but it only applied to new and heavily modified facilities. Those facilities were required to install low-emissions equipment, look for methane leaks and make timely repairs.
The Trump administration's efforts to scrap the methane regulations has split the oil and gas sector. Leading industry trade groups have pushed to scrap the methane rules because of concerns about the cost. But Shell, ExxonMobil and other major companies have opposed scrapping the rules. They worry it will damage their image at a time the industry is attempting to show its commitment to addressing climate change. Methane emissions from oil and gas companies account for about 3pc of US greenhouse gas emissions.
The EPA in its repeal proposal argued that the Obama administration's decision to directly regulate methane was unnecessary, since methane was already controlled indirectly through existing rules targeting volatile organic compounds. But critics say that approach would fail to cover some new sources and exempts thousands of existing oil and gas facilities that account for most of the industry's emissions.
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US economic growth slows to 1.6pc in 1Q
US economic growth slows to 1.6pc in 1Q
Houston, 25 April (Argus) — The US economy in the first quarter grew at a 1.6pc annual pace, slower than expected, while a key measure of inflation accelerated. Growth in gross domestic product (GDP) slowed from a 3.4pc annual rate in the fourth quarter, the Bureau of Economic Analysis (BEA) reported on Thursday. The first-quarter growth number, the first of three estimates for the period, compares with analyst forecasts of about a 2.5pc gain. Personal consumption slowed to a 2.5pc annual rate in the first quarter from a 3.3pc pace in the fourth quarter, partly reflecting lower spending on motor vehicles and gasoline and other energy goods. Gross private domestic investment rose by 3.2pc, with residential spending up 13.9pc after a 2.8pc expansion in the fourth quarter. Government spending growth slowed to 1.2pc from 4.6pc. Private inventories fell and imports rose, weighing on growth. The core personal consumption expenditures (PCE) price index, which the Federal Reserve closely follows, rose by 3.7pc following 2pc annual growth in the fourth quarter, although consultancy Pantheon Macroeconomics said revisions to the data should pull the index lower in coming months. The Federal Reserve is widely expected to begin cutting its target lending rate in September following sharp increases in 2022 and early 2023 to fight inflation that surged to a high of 9.1pc in June 2022. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s Gail to shut Dabhol LNG terminal for monsoon
India’s Gail to shut Dabhol LNG terminal for monsoon
Mumbai, 25 April (Argus) — Indian state-controlled gas distributor Gail is planning to shut its 5mn t/yr Dabhol LNG terminal on the west coast from 15 May, ahead of monsoon rains. Gail will also stop importing LNG from mid-May at the terminal, a company official told Argus . This is because of the lack of a breakwater facility at the terminal, which prevents it from anchoring ships in turbulent seas. The breakwater facility was expected to be completed in January, but the cause of the delay is unknown. The terminal is likely to resume operations from the end of September, similar to its plans in 2023 , as this shutdown over the monsoon season is routine. Gail is set to receive a total of 139,635t LNG at the Dabhol terminal in May, which will arrive in two separate shipments from the US' 5.75mn t/yr Cove Point export facility. Both cargoes will be the last that the terminal will receive before it shuts in mid-May. It has received 583,326t of LNG at the terminal since the beginning of the year, lower by 4pc on the year, data from market analytics firm Kpler show. The Dabhol terminal only receives about 2.9mn t/yr of LNG, despite having a nameplate capacity of 5mn t/yr, because it is not used during the monsoon season. Gail intends to gradually increase the capacity of the Dabhol terminal to 12mn t/yr by April 2030–March 2031. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
Houston, 24 April (Argus) — Barges are facing lengthy delays at the Algiers lock near New Orleans as vessels reroute around closures at the Port Allen lock and the Algiers Canal. Delays at the Algiers Lock —at the interconnection of the Mississippi River and the Gulf Intracoastal Waterway— have reached around 37 hours in the past day, according to the US Army Corps of Engineers' lock report. Around 50 vessels are waiting to cross the Algiers lock. Another 70 vessels were waiting at the nearby Harvey lock with a six-hour wait in the past day. The closure at Port Allen lock has spurred the delays, causing vessels to reroute through the Algiers lock. The Port Allen lock is expected to reopen on 28 April, which should relieve pressure on the Algiers lock. Some traffic has been rerouted through the nearby Harvey lock since the Algiers Canal was closed by a collapsed powerline, the US Coast Guard said. The powerline fell on two barges, but no injuries or damages were reported. The wire is being removed by energy company Entergy. The canal is anticipated to reopen at midnight on 25 April. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Iraq to keep 3.3mn b/d crude export cap until year end
Iraq to keep 3.3mn b/d crude export cap until year end
Dubai, 24 April (Argus) — Iraq will stick to its pledge to cap crude exports at 3.3mn b/d until the end of the year, regardless of what the Opec+ coalition decides at its June meeting, sources with knowledge of the matter told Argus. Baghdad announced the 3.3mn b/d export limit last month , representing a 100,000 b/d cut compared with the first-quarter average. April's exports will be in line with recent months, according to the sources, indicating that Iraq has yet to adhere to the cap. The self-imposed limit on exports is part of Iraq's commitment to compensate for exceeding its 4mn b/d Opec+ production target in the first three months of 2024. It produced 211,000 b/d above target in January, then overshot by 217,000 b/d and 194,000 b/d in February and March, respectively, according to an average of secondary sources including Argus . Prior to that, Iraq exceeded its then 4.22mn b/d output ceiling in each of the last six months of 2023. The persistent overproduction has drawn scrutiny within Opec+, prompting repeated reassurances from Baghdad in recent months that it is committed to its output pledges. Iraq blames it on its inability to oversee production in the semi-autonomous Kurdistan region in the north of the country. Most Iraqi Kurdish crude output is being directed to local refineries or sold on the black market following the closure of the export pipeline that links oil fields in northern Iraq to the Turkish port of Ceyhan just over a year ago. Iraq's federal oil ministry says its Kurdish counterpart has stopped providing production data. Baghdad recently sent the Kurdistan Regional Government (KRG) an official request to hand over oil produced in the region to federal marketer Somo in order to resume Kurdish exports through Turkey, the sources said. Baghdad also urged the KRG back in January to curb output to help Iraq adhere to its lower Opec+ production quota. Ever-widening gap The Association of the Petroleum Industry of Kurdistan (Apikur) said international oil companies (IOCs) operating in the region were hoping that a long-awaited visit to Baghdad by Turkish president Recep Tayyip Erdogan on 22 April might help pave the way for a restart in exports. "We definitely believe the Iraqi government seems more serious about resolving the issues after prime minister [Mohammed Shia] al-Sudani's visit to the US," an IOC source told Argus. But differences between the KRG and Baghdad, mainly over contracts that the former signed with international oil companies (IOCs) in Kurdistan, continue to delay the restart. And tensions between the two sides show little sign of easing. In a statement on 22 April, the KRG's ministry of natural resources accused Baghdad of misleading statements by seeking to blame the KRG for the export shut-in, adding that there is no provision in Iraq's constitution that gives power to the federal government to approve contracts issued by the KRG. With the help of multiple federal court rulings, Baghdad has been attempting to downgrade the KRG's autonomy over its finances and energy sector. A court ruling in February 2022 overturned a law governing Kurdish oil and gas exports and upheld Baghdad's request that all KRG production-sharing contracts be placed under federal oil ministry oversight. The judgment rendered the KRG's 2007 oil and gas law unconstitutional, raising questions over the future of the KRG's active contracts. The KRG's natural resources ministry has dismissed the February 2022 court order, saying it was delivered by a "committee of political appointees in Baghdad". While the federal Iraqi oil ministry "publicly refers to that committee as the 'Federal Supreme Court', everyone knows that it is no such thing", the ministry said. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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