Generic Hero BannerGeneric Hero Banner
Latest Market News

US seeks to speed permits by limiting reviews

  • Spanish Market: Coal, Crude oil, Emissions, Natural gas
  • 15/07/20

President Donald Trump's administration today finalized a rule that attempts to expedite approval of federal oil and gas leases, pipelines, highways and other infrastructure by curtailing environmental reviews.

The overhaul aims to simplify reviews under the National Environmental Policy Act (NEPA) so that federal permitting of pipelines and other projects could be done within two years. Critics say the administration is trying to gut a law meant to require regulators to take a "hard look" at how approving a project would affect communities and the environment.

NEPA has become a growing vulnerability for the oil sector. A judge last week ordered the 530,000 b/d Dakota Access crude pipeline to close due to flaws with its environmental review. The 830,000 b/d Keystone XL crude pipeline was unable to start construction in 2018 for similar reasons. A judge last year blocked hundreds of drilling leases in Wyoming for incomplete climate change studies.

Trump today said the "top-to-bottom overhaul" of environmental reviews would remove roadblocks to building infrastructure and provide billions of dollars in cost savings. Trump has regularly criticized environmental reviews as unnecessary and too costly, drawing on his previous career as a real estate developer where his projects were subject to complex permitting requirements.

"I have been wanting to do this since day one," Trump said.

The US enacted the statute in 1970 with a broad mandate for the government to study how its actions could affect the environment before making a decision. White House regulations and decades of court rulings have fleshed out what the law requires, resulting in reviews that can be hundreds of pages long and take years to complete.

The White House Council on Environmental Quality, in the changes today, is seeking to reset some of that process by issuing a rule curtailing what types of reviews are required. The changes would allow reviews to focus narrowly on near-term environmental effects, such as soil erosion from constructing a pipeline, while avoiding the study of long-term effects such as how burning fossil fuels transported by a pipeline could affect climate change.

Oil groups cheered the overhaul. The changes are "desperately needed," American Petroleum Institute president Mike Sommers said, and would "make sure that job-creating infrastructure projects get off the drawing board and into development." Independent Petroleum Association of American president Barry Russell said the revisions would provide "needed certainty" to businesses.

The NEPA changes are coming too late to have an effect on the Trump administration's approval of projects such as the Dakota Access pipeline or its decision to allow oil and gas development within the Arctic National Wildlife Refuge in Alaska. And the changes are likely to increase uncertainty in the near-term, as agencies figure out how to conduct reviews under the new rules. US courts might decide if the changes are lawful on a project-by-project basis.

Environmentalists are planning a major fight against the changes, which they say will be most harmful to low-income and minority communities that have used NEPA to oppose projects that would boost emissions near their neighborhoods. Critics say the government should undertake more robust reviews of whether projects would exacerbate climate change, rather than ignoring most of those effects.

"We will not allow this blatant polluter power-grab to stand," Earthjustice attorney Jan Hasselman said. "We will see them in court."

Presumed Democratic presidential nominee Joe Biden, if elected, would have a pathway to blocking the changes by undertaking a new review. If Democrats win control of the US Senate and retain control of the US House of Representatives, they could also vote to disapprove the change and quickly revert back to the earlier rules.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

06/02/25

Crude Summit: US to remain top crude producer

Crude Summit: US to remain top crude producer

Houston, 6 February (Argus) — The US is likely to remain the world's top crude producer for some time to come, according to shale executives at the Argus Global Crude Summit Americas in Houston, Texas, today. "In the foreseeable future, I don't really see a lot of change," said Shannon Flowers, director of crude and water marketing at Coterra Energy. There is still enough high-quality acreage to go after, while efficiency gains around faster drilling times and targeting longer wells are also helping to drive output gains. "There's a lot of creativity that goes on in trying to understand how we can do more with less," Flowers said today at the event. While the rig count is down 20pc over the last two years, production has grown by more than 1mn b/d. "Doing more with less is kind of a common theme," Flowers said in reference to operations at Coterra and across the industry. "I expect that to continue." While the Permian has dominated all the attention of late, the offshore Gulf of Mexico is likely to be an important driver of output going forward, with several projects starting up this year. Other regions such as the Rockies, Wyoming and possibly Utah could also see some growth. A recent round of mergers and acquisitions that saw $300bn of upstream oil and gas deals inked has further to run, says John Argo, vice president for the Williston Basin at Continental Resources. "There will continue to be more consolidation," Argo said. Scarcity with regard to remaining high-quality acreage means that valuations will continue to climb, he said. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Crude Summit: Asset-backed oil trades on the rise


06/02/25
06/02/25

Crude Summit: Asset-backed oil trades on the rise

Houston, 6 February (Argus) — Asset-backed trading is becoming commonplace in the oil industry as companies up and down the supply chain bring capabilities in-house, delegates heard at the Argus Global Crude Summit Americas in Houston, Texas, today. "Traditionally, long term hedging was popular, and it still is, but in general we've seen a move towards the front end of the curve," said CME Group's managing director and global head of energy and environmental products Peter Keavey. "The risks are really in the prompt," said Keavy. "We're seeing a lot of hedging in the short term [and] that also is reflective of asset-based optimization." HC Group managing partner Paul Chapman has also noticed a continued shift in trading by banks, which either exited or scaled down operations in 2014 and 2015, to those directly in the industry. "I would argue that pretty much every single business around the world — producer, miner, refiner, retailer of fuels and major — is on some spectrum of developing some asset trading," said Chapman. "And it's driven by a need to capture more margin." Changing trade flows have naturally had a bearing on who becomes more involved in individual markets. "Over the past five years, European players have more and more exposure to US molecules, whether it be crude oil or natural gas," said Keavey, which has driven the growth of trade of WTI, RBOB, gasoline, and heating oil in international markets. Changing energy policy, and policies to reach other political objectives, have a tendency to shape energy flows, whether they are intended or not, the speakers said. The Russian-Ukraine conflict is a prime example, and there are clear signs that US president Donald Trump's second term in office will do the same. "As this world gets more shaped by trade wars and there's more and more government intervention, that itself starts to break down some of the fundamentals of how some of these markets work," said Chapman. Keavey expects Canadian crude to continue to flow even under a Canada-US trade war, but "the question is, what disruption happens to the pricing?" By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Crude Summit: Discipline still reigns in US upstream


06/02/25
06/02/25

Crude Summit: Discipline still reigns in US upstream

Houston, 6 February (Argus) — Spending restraint remains the guiding force for the US upstream sector, according to Jesse Thompson, senior business economist at the Federal Bank of Dallas. "The industry is playing it very cautiously," Thompson said today at the Argus Global Crude Summit Americas in Houston, Texas. "Capital discipline is still very much the order of the day." What has surprised many is that output keeps going up, despite the fact that the rig count continues to retreat. That can be attributed to productivity gains, such as the practice of speeding up drilling times, and targeting of longer lateral wells, with fewer people employed in the industry, he said. US crude production growth is seen ending this year up 200,000 b/d, compared with 300,000 b/d in 2024, Thompson said. Despite the perception by some that all the low-hanging fruit has already been picked and productivity gains will ease up, they continue to defy expectations. "And then every year they beat their own production numbers," Thompson said. Turning to the domestic economy, consumption growth is running above trend based on the latest data, Thompson said. And the consensus among forecasters is that GDP growth is seen around 2pc this year. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Amos to buy Sinopec Venezuelan oil, gas assets


06/02/25
06/02/25

Amos to buy Sinopec Venezuelan oil, gas assets

Caracas, 6 February (Argus) — US upstream start-up Amos Global Energy Management has agreed to buy some of Chinese Sinopec's oil and natural gas interests in Venezuela with an eye on US sanctions eventually easing there, the Houston-based firm said. Venezuela's state-owned PdV is the majority owner of the stake to be sold, which is part of the PetroParia joint venture with Sinopec in the Gulf of Paria. "Sinopec did not develop it better because of clashes with PdV management, but the potential to export gas to Trinidad and Tobago from the property is clear", Maracaibo-based analyst ChemStrategy said. Trinidad and Tobago has discussed developing gas fields that straddle its border with Venezuela to stem its downturn in production. But US sanctions on Venezuela's crude sector have slowed progress, and the administration of President Donald Trump has not indicated that it will change course . Amos "believes that this purchase will ultimately bring the investments needed to develop oil and gas production opportunities" there and in other nearby properties, including in a previous agreement in the same Gulf of Paria with Inepetrol. PdV officials and pro-Maduro lawmakers in Caracas said they were aware of the plan but declined to offer additional details. Amos has been seeking capital and arming agreements to be "prepared to increase Venezuelan production when existing sanctions are lifted." Amos is led by chief executive Ali Moshiri who retired as president of Chevron Africa and Latin America exploration and production in March 2017. Completion of the sale will require approval from the US Treasury's Office of Foreign Assets Control and the Venezuelan hydrocarbons ministry, Amos said. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU red tape ‘unsustainable burden’ for transition


06/02/25
06/02/25

EU red tape ‘unsustainable burden’ for transition

London, 6 February (Argus) — EU regulations in their current form are hindering rather than enabling the energy transition, limiting access to funding and slowing renewable installations, delegates at the Financial Times International Energy Policy Forum in Brussels heard this week. EU regulation has become "duplicative", Anthony Gooch Galvez, secretary general of the European Round Table for Industry (ERT), told delegates this week. "The burden is unsustainable" even for ERT members, which tend to be big companies, he said, pointing to the additional problems this would cause small to medium-sized businesses. The EU is "too prescriptive" and expects perfection from day one, Ann Mettler of Bill Gates-founded Breakthrough Energy said, leading to low-carbon technologies not being deployed. The "regulatory tsunami did not lead to the desired outcome", and the bloc should give more space to the private sector to support their development, she said. A lack of policy planning has contributed to the problem, Mettler said, pointing to the low number of final investment decisions that have been taken on hydrogen projects. Companies need to be able to implement their plans, she said. "Very cumbersome licensing and permitting processes" are also impeding progress in the region, IEA executive director Fatih Birol told delegates, calling for these to become "much more nimble". And while funding is technically on the table, it is often difficult to access, Gwenaelle Avice Huet of French firm Schneider Electric said, of which the EU's Recovery and Resilience Facility is a prime example. "It's not just about the level of money available." US presents opportunity But the stability of the EU's Green Deal, which was announced in 2021 and remains in place, does offer a stark contrast to the US, said Sebastien Treyer, executive director of think-tank the Institute for Sustainable Development and International Relations. Other speakers also noted the importance of stability and predictability within regulatory frameworks. "You need to have rules to play a good game", Galvez said. In the US, policy has fluctuated wildly between regimes, with president Donald Trump pausing some funding from the country's Inflation Reduction Act in the first days of his new term. This shift could mean US-based investors in the transition look to the EU for opportunities, said Marcin Korolec, president of the Green Economy Institute. "The federal government is not the whole of America. Many other economic players are still very willing to collaborate," Treyer agreed. But a lack of urgency from the European Commission could see the EU fail to capitalise on this, Korolec warned. He criticised in particular the bloc's planned competitiveness fund, announced last week, which would be funded under the EU's next budget starting in 2028, towards the end of Trump's term. "Sitting in a chair for three years waiting is absurd," he said. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more