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US prospects for permitting overhaul dwindle

  • Spanish Market: Crude oil, Natural gas, Oil products, Pipe and tube
  • 20/11/23

Oil and business groups' hopes that the US Congress could fast-track permitting this year are rapidly fading, with Republicans consumed by infighting and a key Democrat openly flirting with a presidential run.

The prospect of meaningful permitting legislation passing this year was always a long shot, given deep divides on the issue and the current split in the control of Congress. But industry hoped a deal could arise, with Democrats trying to fast-track clean energy projects funded by the Inflation Reduction Act (IRA) and Republicans seeking to remove obstacles to new fossil fuel infrastructure.

Permitting reform advocates concede a deal is unlikely to emerge any time soon, given scant progress on the issue so far, and as Congress heads into an election year where any deal would be much more difficult to pass. "I am not optimistic of anything passing this year," Republican-leaning non-profit Citizens for Responsible Energy Solutions president Heather Reams says.

In another headwind to a possible deal, Democratic West Virginia senator Joe Manchin, who leads the Senate's energy committee, earlier this month said he would not run for re-election in 2024 but will be "travelling the country" to mobilise moderate voters. Manchin has been a top negotiator on permitting and energy issues, including parts of the IRA that restarted oil and gas leasing on federal land and the US Gulf of Mexico. Manchin says he is "absolutely" considering a run for the White House, adding a potential complication to President Joe Biden's re-election bid.

Permitting negotiations had already become stuck in early summer after Congress was able to pass modest permitting changes as part of a bipartisan debt limit law. After the enactment of those changes, the issues left outstanding are more politically thorny, such as energy sector demands for judicial reform to make it harder to bring lawsuits against permitting, or changes to the Clean Water Act sought by the gas sector and opposed by environmentalists and some states.

And the signing of the debt limit law came before far-right Republicans paralysed the US House of Representatives last month by removing Kevin McCarthy as speaker. The infighting shows no sign of easing. House Republicans last week blocked votes on their party's own spending bills. The new speaker Mike Johnson had to rely on Democrats to prevent a government shutdown after 17 November, and Congress is on track to spend the next two months trying to stop a shutdown from 20 January. Far-right House Republicans have held up work as they demand spending cuts and policy changes as a condition to keep the government open.

One event away

Oil and gas executives are holding out hope for permitting changes they say are essential to supporting the industry's growth, including supplying gas to LNG export facilities being developed on the US Gulf coast. An energy crisis, such as a spike in prices, could create the political pressure needed to pass legislation, US gas producer EQT chief executive Toby Rice told an industry conference last month. "We're one event away from something happening. You have one event, you get to reality real quick and you start getting stuff built," Rice said, giving the example ofLNG terminal permitting in Germany after the onset of Russia's invasion of Ukraine.

Congress is set to finish the year having passed some modest permitting tweaks as part of the debt limit agreement. The law will allow the $7.2bn Mountain Valley Pipeline to be completed, enabling the transport of natural gas from West Virginia, and it has expanded the use of "categorical exclusions" that fast-track reviews. But the impasse over broader legislation will put pressure on the White House to pursue changes that allow faster permitting, such as federal initiatives to build out long-distance electric transmission projects to add renewables to the grid.


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19/02/25

Low water likely to persist at St Louis into March

Low water likely to persist at St Louis into March

Houston, 19 February (Argus) — Low water conditions are expected to persist at St Louis through March, causing barge loading issues for both carriers and shippers. Minimal precipitation coupled with increased ice formation along the harbor decreased water levels to -3.3ft on 19 February at St Louis, according to the National Weather Service (NWS). Some terminals at the harbor have been unable to load and unload barges because of the low water. Carriers expect this to become a larger issue when barges carrying northbound products reach St Louis in March. Although low water has been an issue at the harbor since early January, more barge carriers and shippers began to prepare for slipping water levels when grain barge movement picked up later that month. Some barge carriers have reduced the amount of product placed in barges in order to keep drafts from dipping below 9.6ft this week. Low water levels are anticipated to remain through 4 March, which may hinder barge loadings and increase delays at St Louis. St Louis has received less than an inch of rainfall over the past seven days, according to the NWS. There has been even less precipitation upriver in the Northern Plains over the past week. Larger ice formations have appeared in the harbor on account of freezing conditions. The city of St Louis is under winter weather advisory, and is forecast to receive 1-3in of snow between 18-19 February, according to NWS. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump asserts power over independent agencies


19/02/25
19/02/25

Trump asserts power over independent agencies

Washington, 19 February (Argus) — President Donald Trump has signed an executive order that claims to give him sweeping control over the budgets, policies and regulations of independent US agencies that oversee the energy sector, financial markets, trade and transportation. The order seeks to give the White House unprecedented control over the US Federal Energy Regulatory Commission (FERC), the US Commodity Futures Trading Commission (CFTC), the US Securities and Exchange Commission (SEC) and more than a dozen other independent agencies. Trump's order asserts that "so-called independent agencies" lack sufficient accountability and should be brought under his direct control. "For the federal government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people's elected president," according to the executive order, which was signed on Tuesday. FERC, the CFTC and the SEC did not respond to a request for comment. Trump's order would all but end years of attempts by the US Congress to shield agencies that oversee energy markets, trading, finance, maritime trade, railroads, and other businesses from excessive political influence. Congress made those agencies independent — often with a bipartisan board serving years-long terms — to ensure a degree of independence when agencies resolve business disputes, set market rules and issue new regulations. In Trump's first term, FERC's commissioners and Republican chairman rejected the administration's plan to push through market rules to bail out coal and nuclear power plants, based partly on the concerns that doing so would destabilize power markets and cost consumers billions of dollars. It remains unclear if the agency in the future could assert that degree of independence under the order. Trump's order would give the White House the ability to control independent agency budgets and require the appointment of a White House "liaison" in each agency. The order would require agency chairs to align their policies with the White House, subject all significant regulations to review by the administration, and would establish "performance standards" for agency leaders. The order provides an exception for the US Federal Reserve for monetary policy, but the agency's budget and its regulatory actions would come under White House control. Other agencies also covered by the executive order include the US Surface Transportation Board, the US Federal Trade Commission, the US Chemical Safety Board, the US Export-Import Bank, the US Federal Maritime Commission and the US National Transportation Safety Board. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Investor group urges BP to allow new climate vote


19/02/25
19/02/25

Investor group urges BP to allow new climate vote

London, 19 February (Argus) — A group of 46 BP institutional investors has voiced concerns that the company may ditch a target to reduce its oil and gas production to 2mn b/d of oil equivalent (boe/d) by the end of the decade, urging a new shareholder vote be allowed on its net-zero strategy. The letter's signatories include several UK and European pension fund managers and other investors, including Aegon, Investec and Robeco. It comes ahead of BP's capital markets day on 26 February, when the company has said it will "fundamentally reset" its strategy. The group calls on BP to give another opportunity to vote on its net-zero plans at its 2025 annual general meeting, pointing out that shareholders in 2022 endorsed a BP plan to cut hydrocarbon production by 40pc, to 1.5mn boe/d, by 2030. That achieved 88.5pc support from shareholders, but the group of investors behind the letter note that nine months later BP revised upwards its target for 2030 to 2mn boe/d. BP's output averaged 2.36mn boe/d in 2024. The investors are now concerned that increased spending by BP on oil and gas output, due to subsequent strategy tweaks, will raise "potential exposure to stranded assets as the energy transition progresses." The letter notes there is opportunity for BP to explain how emissions budgets in Paris Agreement-aligned scenarios are considered in the sanctioning of new projects. "Showing where projects will sit on the global merit curve of producing assets would also allow investors to assess the relative competitiveness and resilience of BP's portfolio and capital expenditure," it states. In a statement to Argus a signatory to the letter, Royal London Asset Management, said it recognised BP's past efforts toward the energy transition but it is "concerned about the company's continued investment in fossil fuel expansion. "If BP has decided to scrap its production target, we seek clarity on how capital allocation will shift to ensure resilience through the energy transition," it said. "Will BP scale up investments in renewable energy, carbon capture, and emerging technologies to future-proof the business against regulatory, market, and climate risks?" Royal London urged BP "to strengthen governance and transparency around transition planning, ensuring that future capex decisions align with a net-zero pathway rather than locking in further emissions growth." It added: "Robust oversight and clear long-term strategies are essential to delivering value while managing the risks of an accelerating energy transition." A BP spokesman said the company had received the letter and "will respond in due course." Environmental pressure group Greenpeace said BP can expect this kind of pushback and challenge from its shareholders "at every turn if it doubles down on fossil fuels". "Government policies will also need to prioritise renewable power, and as extreme weather puts pressure on insurance models policymakers will be looking to fossil fuel profits as a way to fund extreme weather recovery," Greenpeace said. "BP might want to seriously put the brakes on this U-turn." Earlier this month BP's shares jumped on media reports that activist hedge fund Elliott Investment Management was building a stake in the UK major. Investment bank analysts that follow BP expect Elliott to attempt to bring about a boardroom shake-up as it has at other resources companies, including at Canadian oil sands business Suncor Energy in 2022. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France still net gasoline importer despite export rise


19/02/25
19/02/25

France still net gasoline importer despite export rise

Barcelona, 19 February (Argus) — French gasoline exports increased last year, driven by a rise in shipments to other parts of Europe and west Africa. Domestic gasoline output also went up, in line with a lighter crude slate, but the country remained a net importer. According to latest customs data, exports — including unfinished, 95 Ron and 98 Ron grades — rose to just over 1.9mn t last year (45,000 b/d), up by 29pc compared with 2023. Exports of 98 Ron were 160,000t, the highest in the last 13 years, supported by shipments to other EU countries. Unfinished gasoline exports were 1.65mn t, with an increase in volumes headed to west Africa, although this was lower than unfinished exports in 2021 and 2022. France shifted to being a net importer of gasoline in 2021, hampered by curtailed refinery availability during the Covid-19 pandemic, and it has remained so ever since. The country imported 2.7mn t of gasoline last year — most of it short-haul shipments arriving from Belgium, the Netherlands and Germany. This left net imports at just over 800,000t, compared with 1.05mn t in 2023. Rising domestic demand has supported both imports and domestic refinery output. Demand was around 11.1mn t last year, according to data from domestic fuels association Ufip, 7pc higher than 2023 and the highest in the last 12 years, boosted by consumers buying more gasoline and gasoline-hybrid vehicles and fewer diesel-run cars and vans. Car maker federation the CCFA said last year that diesel cars and light vans took a 7.3pc share of the French market while gasoline and hybrid vehicles took a combined 72pc, the same share that diesel vehicles held back in 2012. Apparent domestic gasoline output — assessed by Argus using demand, import, export and stocks data — was close to 10.5mn t last year, 10pc higher than 2023. This was the highest level of production since 2017, when France had more refining capacity. But in 2017 France exported over 40pc of its output, whereas last year it was under 20pc. The rise in domestic gasoline production was underpinned by a lighter and sweeter crude slate. France is no longer importing any sanctioned Russian Urals and is taking far less Saudi Arab Light. It is replacing these medium sour grades with light sweet US WTI, which was the most popular crude grade among French refineries last year. By Adam Porter French gasoline mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India’s AMNS seek five-year term LNG deal from 2026


19/02/25
19/02/25

India’s AMNS seek five-year term LNG deal from 2026

Mumbai, 19 February (Argus) — Indian steel manufacturer ArcelorMittal Nippon Steel (AMNS) is seeking a five-year term LNG deal for six cargoes a year starting in 2026 for its direct reduced iron (DRI) plant in the western Gujarat state of Hazira, sources close to the matter have told Argus . AMNS seeks to sign the deal with prices linked to the US Henry Hub or Brent on a delivered basis to India's west coast either at Petronet's 17.5mn t/yr Dahej terminal or Shell's 5mn t/yr Hazira terminal, the source said. The tender's final stage is expected to close by 27 February. The deal may equate to 1.8mn t of LNG supply over the period to 2030, assuming a 60,000t LNG cargo size. The Hazira plant has crude steel production capacity of 8.8mn t/yr, according to ArcelorMittal's September 2024 report. As much as 65pc of the capacity is based on DRI. The firm is on track to expand its low-cost steel-making capacity to 15mn t by 2026, the report says. This supply pact also underscores a trend in the global steel industry to use cleaner energy sources to produce green steel. The firm imports up to 75pc of its 1.72mn t in natural gas requirements on an annualised basis, a company official told Argus last year. The steelmaker had last signed a 10-year deal to buy LNG from Shell , with deliveries to start from 2027, at a 11.5 percentage of Brent crude prices that still remains one of the lowest-heard slopes for an Indian term LNG supply contract. And AMNS has a deal with TotalEnergies for 500,000 t/yr that is scheduled to expire in 2026 . The firm may consider extending it next year, another source said. India's demand for LNG term contracts continues to grow as several gas majors signed LNG contracts during the India Energy Week event. India's state-run Bharat Petroleum has signed a five-year LNG agreement with UAE's state-owned Adnoc at 115pc of Henry Hub price plus a constant of $5.66, similar to the Gail five-year term LNG deal signed in December, sources told Argus . State-owned refiner IOC signed a 14-year sales and purchase agreement for up to 1.2mn t/yr of LNG, valued at $7bn-9bn with Adnoc Gas, during the event. The deliveries are set to begin in 2026, and the cargoes will be sourced from the UAE's 6mn t/yr Das Island liquefaction facility. The deal was signed at 12.5pc of Brent crude prices, sources told Argus . And state-owned Gujarat State Petroleum (GSPC) during the event signed a 400,000 t/yr of LNG deal with TotalEnergies for 10 years to begin from 2026. Under this deal, TotalEnergies will deliver up to six cargoes a year to GSPC. The deal was signed at 119pc of Henry Hub price plus a constant of $4.4, sources told Argus . By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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