Economist Philip Verleger looks at the size of the US Strategic Petroleum Reserve, and then looks at the world’s hot spots, and sees a way to solve some of the problems of the latter with the former. He has contributed this guest post to The Barrel blog.
Archive for the ‘Washington watch’ Category
By Philip Verleger | September 5, 2014 12:01 AM Comments (15)
By Brian Scheid | September 3, 2014 10:49 AM Comments (0)
Shortly after she was named chairman of the powerful Senate Energy and Natural Resources Committee earlier this year, Senator Mary Landrieu, a Louisiana Democrat, held a press conference to stress her strong support for the Jones Act.
“The Jones Act is a jobs act, pure and simple,” Landrieu said of the nearly 100-year-old law which requires all vessels shipping cargo between two US locations to be US built, majority US-owned and at least 75% of the crew to be US citizens.
Surrounded by shipping industry representatives, Landrieu criticized the Obama administration for attempts to weaken the act’s purpose. “Waiving the Jones Act literally hands over work to foreign shippers,” she said.
Perhaps most surprising about the press conference, one of the few Capitol Hill press events Landrieu has hosted since taking helm of the energy committee, is that it was not in response to new legislation aimed at weakening the Jones Act, nor was it in response to another potential waiver to the act.
By John Kingston | September 2, 2014 04:29 PM Comments (1)
We hadn’t written about the monthly EIA statistics on US oil supply and demand for a while because they’d gotten kind of dull. The big movements recorded month after month, particularly in product export growth and net import dependence, had fallen into a bit of a predictable range.
That changed in June. The EIA released numbers from that month today.
By Tom Balcerek | August 28, 2014 09:55 AM Comments (0)
There were two interesting news items in the American steel world this week: year-to-date US imports are up 37% from last year while domestic mill capability utilization recently topped 80%, after being in the 70-79% range most of the last few years, climbing from sub-50% levels seen in 2009.
Neither of these items is particularly surprising, as they are the culminations of year-long trends, but they fly in the face of suggestions that American steel consumption has been lackluster this year.
By Brian Scheid | August 4, 2014 12:01 AM Comments (0)
By John Kingston | July 23, 2014 03:13 PM Comments (0)
The next big fight in the war over oil and gas development in the US — or at least one of the next big fights – will be over local control. That issue ramped up this week and appears to raise a significant question of federalism.
The city council in South Portland, Maine, voted this week to approve a package of zoning restrictions that would affect the handling of crude oil in the city. But the laws were drawn to impact the handling of oil being put on to tankers. It doesn’t affect oil being taken off tankers.
Why this is significant is because South Portland is the eastern terminus of the Portland-Montreal Pipeline, which takes crude oil imported into Maine and brings it to Montreal near the St. Lawrence Seaway. It can be refined in Montreal, or moved down Line 9 to Canadian refineries in Ontario.
By Herman Wang | July 22, 2014 12:01 AM Comments (0)
Conventional political wisdom has held that given Iowa’s importance in US presidential contests as host of the first-in-the-nation nominating caucuses, the Renewable Fuel Standard is pretty much unassailable.
The federal biofuels mandate enjoys immense bipartisan support in the state, where corn is king.
Candidates hoping to curry favor with state voters would need to wholeheartedly endorse the RFS or at least pay lip service to the law while campaigning there. Iowa, after all, leads the nation in biofuels production, with 41 ethanol plants in the state, along with 18 biodiesel facilities.
But, if RFS opponents are to be believed, the political landscape could be changing.
By Brian Scheid | July 18, 2014 12:01 AM Comments (1)
Two US Commerce Department rulings giving a pair of Eagle Ford players legal backing to export processed condensate have been viewed as a dramatic loosening of America’s 40-year ban on crude exports, or at least a sign that long-awaited export policy changes were near.
But what if these private letter rulings really only impact the companies that received them and nothing more?
By Gary Gentile | July 11, 2014 12:01 AM Comments (1)
It has become a routine in Washington to explain the government’s inability to react to changes in the marketplace by blaming the swift pace of technological change. The latest such admission came last week when Commerce Secretary Penny Pritzker spoke about US crude exports.
“Technology is advancing faster than existing regulations,” Pritzker said during an appearance at the Aspen Ideas Festival. She said there was a “serious conversation” going on within the administration on crude export policy. “The question is what [are] the right exports and what is the right amount of exports.”
Similar admissions have come from other officials on the topic of transporting crude by rail and ensuring the safety of offshore drilling. In all three cases, industry has wisely not waited for Washington to act. Innovation marches on and companies put huge amounts of capital at risk to advance new ways to produce and move energy resources.