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Post by Blitz on Jan 26, 2024 8:34:40 GMT -5
More far-Left loony ESG logic that works like this... Yes, lets limit clean burning LNG exports to fight global warming so the EU can burn more dirty coal and buy more Russian NatGas. And now this... Energy trade groups admonish Biden administration’s plan to halt LNG exports January 25, 2024 www.worldoil.com/news/2024/1/25/energy-trade-groups-admonish-biden-administration-s-plan-to-halt-lng-exports/(WO) – The Independent Petroleum Association of America (IPAA) joined the American Petroleum Institute (API), American Exploration and Production Council (AXPC), Center for LNG (CLNG), LNG Allies and dozens of other industry groups from across the liquefied natural gas (LNG) value chain in urging the Biden administration to reject calls to halt permits for U.S. LNG export facilities. In a letter to Secretary Granholm and senior administration officials, the groups emphasized the critical role that continued U.S. LNG exports play in safeguarding national security, creating U.S. jobs, supporting our European allies and contributing to global climate goals. “Our nation’s abundant supply of natural gas is an impactful geopolitical tool, helping insulate American consumers from increasing global instability while advancing American national interests and ensuring the energy security of key U.S. allies,” the groups wrote. “Moving forward with a pause on new U.S. LNG export approvals would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy, undermining American credibility and threatening American jobs.” U.S. LNG was vital in helping Europe avoid the worst of an energy crisis, and Europe has made progress in weaning itself off Russian natural gas. As Eurogas President Didier Holleaux noted in a letter to U.S. officials last week, “It is essential that the United States stands with Europe, especially at a time of war where we are working together to protect our values, and does not deliberately spark a new period of price volatility in Europe caused by policy driven LNG shortages.” In 2022, the Biden administration pledged to provide Europe with additional U.S. LNG volumes. An analysis of the president’s pledge found that the benefits to the United States could include $63 billion in capital expenditures, a GDP boost of $46 billion, and 71,500 jobs supported annually from 2025-2030. At the same time, any action to slow the approval of U.S. LNG exports would jeopardize global efforts to reduce greenhouse gas (GHG) emissions. The U.S. is the world leader in CO2 emissions reductions – largely thanks to coal-to-natural gas fuel switching in the power sector – and nations currently reliant on coal have an opportunity to replicate this success. Fuel switching from coal to natural gas is responsible for more than 60% of CO2 emissions reductions in the U.S. power sector since 2005. “Nearly eight years of operating experience and DOE’s own studies have demonstrated that LNG exports are squarely within the public interest,” the groups wrote. “Throttling down U.S. LNG exports will eliminate an important tool in reducing global emissions and force quickly developing nations – specifically in Asia—to abandon plans to reduce emissions and increase coal consumption.” The administration has already extended a permitting process for LNG permits that took seven weeks during the last administration to an 11-month process on average. Any additional changes to LNG export permit approvals would be an unnecessary addition to an already burdensome bureaucratic process. “Our industry is proud to support our allies and global emissions goals, but the geopolitical and climate benefits of American energy exports cannot be maintained with a regulatory regime that moves at the whims of political pressure,” the groups concluded “We urge you to reject calls for DOE to prolong the review period or create new hurdles as it considers approvals for new LNG projects and terminals.”
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Post by Blitz on Jan 26, 2024 8:52:03 GMT -5
Biden Pauses New LNG Export Projects Jan 26, 2024 www.oedigital.com/news/511104-biden-pauses-new-lng-export-projectsPresident Joe Biden paused pending approvals of exports from new liquefied natural gas (LNG) projects on Friday, a move cheered by climate activists that could delay decisions on new plants until after the November 5 election. The Department of Energy (DOE) will conduct a review during the pause that will look at the economic and environmental impacts of projects seeking approval to export LNG to Europe and Asia where the fuel is in hot demand. The review will take months and then will be open to public comment which will take further time, Energy Secretary Jennifer Granholm told reporters in a teleconference. Biden said in a statement: "During this period, we will take a hard look at the impacts of LNG exports on energy costs, America's energy security, and our environment." He said the pause "sees the climate crisis for what it is: the existential threat of our time." Administration officials vowed the pause would not hurt allies, saying the plan will come with exemptions for national security should they need more LNG. "We are committed to strengthening energy security here in the U.S. and with our allies," Granholm said. Companies and countries in Europe are worried about steady supplies of U.S. gas as the region tries to wean itself off pipelined gas from Russia after its 2022 invasion of Ukraine. U.S. allies in Asia also covet LNG as they seek to slow coal consumption. The last review of LNG export projects was in 2018 when export capacity was 4 billion cubic feet per day (bcfd). That capacity has tripled, with the U.S. becoming the world's top LNG exporter last year, and is set to shoot higher by 2030 with projects under construction. The growth has set off protests from environmentalists, part of Biden's base. Activists say new LNG projects can harm local communities with pollution, lock in global reliance on fossil fuels for decades, and lead to emissions from burning gas and from leaks of the powerful greenhouse gas methane. Environmentalists hailed the move as a bold step. It "continues this administration’s historic efforts to meet the global commitment to phase out fossil fuels and confront the climate crisis head on," said Ben Jealous, head of the Sierra Club. Swaths of U.S. industry, ranging from chemicals, steel, food and agriculture, also oppose unrestricted exports of U.S. gas saying it raises risks for fuel prices and reliability. Only four projects with export approvals pending at the DOE would be affected by the pause, an administration official said without naming them. The projects could include ones by Sempra Infrastructure, Commonwealth LNG, and Energy Transfer, the DOE's website showed. Sempra is confident its projects would help displace more carbon-intense fossil fuels, including coal, and provide gas to allies, a spokesperson said. The other companies did not immediately respond to requests for comment. Louisiana Project CP2 Upset with Biden's approvals last year of oil and gas projects in Alaska, climate activists have focused on stopping Venture Global's Calcasieu Pass 2 (CP2) pending LNG project in Louisiana, which would be the nation's largest terminal. An administration official said CP2 would not be affected by the pause because that project first needs approval by the Federal Energy Regulatory Commission. But the commission's panel of three regulators, which almost always approves LNG projects, could approve it as soon as February, which would then put its approval in the hands of the DOE. An administration official said in the call that "projects like CP2 really speak to this question of are we over-building?". A Venture Global spokesperson could not be immediately reached but the person said earlier this week that a pause could send a "devastating signal to our allies that they can no longer rely on the United States." Germany accounts for nearly half of CP2's current contracted capacity of LNG.
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Post by Blitz on Jan 27, 2024 6:49:31 GMT -5
US: DOE to update public interest analysis to enhance national security, achieve clean energy goals and continue support for global allies 26 Jan 2024 www.energy-pedia.com/news/usa/doe-to-update-public-interest-analysis-to-enhance-national-security--achieve-clean-energy-goals-and-continue-support-for-global-allies-194022As Authorized by Federal Law, DOE Will Initiate a Process to Update Economic and Environmental Analyses Used to Review LNG Export Applications to non-Free Trade Agreement Countries; Review Process Protects U.S. Consumers and the Nation’s Economic Competitiveness The United States Department of Energy (DOE) has provided notice that it will initiate a process to update the assessments used to inform whether additional liquefied natural gas (LNG) export authorization requests to non-Free Trade Agreement countries are in the public interest. The United States is the global leader in LNG exports with 14 billion cubic feet per day (Bcf/d) in current operating capacity and 48 Bcf/d in total authorizations approved by DOE to date, over three times our current export capacity. DOE has been given the responsibility by Congress to evaluate the public interest of proposed exports to countries with which the United States does not have a Free Trade Agreement. As the natural gas sector has transformed over the past decade, DOE must use the most complete, updated, and robust analysis possible on market, economic, national security, environmental considerations, including current authorized exports compared to domestic supply, energy security, greenhouse gas emissions including carbon dioxide and methane, and other factors. Today’s action will begin an update of this analysis, and until updated, DOE will pause determinations on pending applications for export of LNG to non-Free Trade Agreement countries. 'This administration is committed to the affordability of energy and economic opportunities for all Americans; strengthening energy security here in the US and with our allies; and protecting Americans against climate change and winning the clean energy future,' said U.S. Secretary of Energy Jennifer M. Granholm. 'This practical action will ensure that DOE remains a responsible actor using the most up-to-date economic and environmental analyses.' Consideration of these factors is not new: These are the same categories that DOE has considered when evaluating the public interest of LNG exports for more than a decade. But the data and global circumstances relevant to these factors has changed over time, and DOE must reflect these changes when applying the factors to a new public interest determination. This temporary pause on pending applications will not affect already authorized exports, which total 48 Bcf/d. It will also not impact our ability to supply our allies in Europe, Asia or other recipients of already authorized U.S. exports. Last year, over 60% of U.S. LNG exports went to Europe, and we have worked with European countries to successfully economize consumption and manage their storage to ensure that Russia cannot threaten their security of supply. Within this decade another 12 Bcf/d of U.S. export capacity already authorized and under construction will come online – enabling exports to nearly double and putting the US on track to exceed the export capacity of any other country by more than 50%, even taking into account planned global LNG expansion capacity. This increased capacity has and will continue to support our European, Asian and other allies. Just as it has since 2022 when US LNG played a critical role in helping Europe backfill its lost gas supplies from Russia and reduce its energy dependence following Putin’s invasion of Ukraine. To ensure the Department is utilizing the most concrete and robust information, DOE will include the expertise of our national laboratories to help inform and conduct analysis for this update. As the LNG market and related issues are dynamic - including economic, climate change, and global energy security considerations - DOE’s LNG program will continuously evaluate evolving national and energy security, economic, environmental, and other factors. The pause, which is subject to exception for unanticipated and immediate national security emergencies, will provide the time to integrate these critical considerations.
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Post by Blitz on Jan 27, 2024 6:51:48 GMT -5
Liquefied Natural Gas: What to know about LNG and Biden's decision to delay gas export proposals MATTHEW DALY - Fri, January 26, 2024 news.yahoo.com/liquified-natural-gas-know-lng-210756717.htmlFILE - Energy Secretary Jennifer Granholm speaks during the daily briefing at the White House in Washington, Jan. 23, 2023. The Biden administration is delaying consideration of new natural gas export terminals in the United States, even as gas shipments to Europe and Asia have soared since Russia’s invasion of Ukraine. (AP Photo/Susan Walsh, File) WASHINGTON (AP) — The Biden administration said Friday it is delaying consideration of new natural gas export terminals i n the United States, even as gas shipments to Europe and Asia have soared since Russia’s invasion of Ukraine. The decision by President Joe Biden, announced as the 2024 presidential election year kicks off, aligns the Democratic president with environmentalists who fear the huge increase in exports of liquefied natural gas, or LNG, is locking in potentially catastrophic planet-warming emissions when Biden has pledged to cut climate pollution in half by 2030. Industry groups and Republicans condemned the pause as a “win for Russia,” while environmentalists cheered it as a way to address climate change and counter Biden’s approval of the huge Willow oil project in Alaska last year. What is LNG and why does it matter? LNG is short for liquefied natural gas and occurs when gas is cooled to about –260° F (–162° C), changing it into a liquid that can be stored and shipped safely aboard specially designed vessels to destinations around the globe. Upon arrival, the gas is reheated to return it to a gaseous state and transported by pipeline to distribution companies, industrial consumers and power plants. Natural gas is used to heat homes and businesses, and is often produced in the United States through a technique known as fracking that has unlocked vast supplies underneath the ground. U.S. gas exports rose sharply after Russia’s February 2022 invasion of Ukraine, and the Biden administration has celebrated the delivery of U.S. gas to Europe and Asia as a key geopolitical weapon against Russian President Vladimir Putin, allowing U.S. allies to use gas without relying on Russia. Why did Biden delay consideration of LNG export terminals? The decision is complicated because Biden has praised U.S. exports in the past. But he has faced strong criticism from environmental groups who worry about the rapid expansion of LNG exports in recent years and question Biden's commitment to phasing out fossil fuels such as oil and gas. U.S. oil production has surged since Biden took office. U.S. LNG capacity has doubled in recent years and is set to double again under projects already approved, the White House said. Current methods the Energy Department uses to evaluate LNG projects don’t adequately account for potential cost hikes for American consumers and manufacturers or the impact of greenhouse gas emissions, officials said. "There’s a long runway here (for LNG projects) and we’re taking a step back and thinking, okay, let’s take a hard look before that runway continues to build out,'' said White House climate adviser Ali Zaidi. What does Biden's action do? The pause will allow officials to update the way the Energy Department analyzes LNG proposals to "avoid export authorizations that diminish our domestic energy availability, weaken our security or undermine our economy'' or the environment, Energy Secretary Jennifer Granholm said. The pause will have no immediate effect on U.S. gas supplies to Europe or Asia, she said. Seven LNG terminals are currently operating in the U.S., mostly in Louisiana and Texas, with up to five more expected to come online in the next few years. Biden's action would not affect those projects, but could delay a dozen or more LNG projects that are pending or in various stages of planning. That includes the Calcasieu Pass 2 project, or CP2, along Louisiana’s Gulf Coast. If built, CP2 would be the largest export terminal in the United States. “Let me be clear. The U.S. is already the number one exporter of LNG, and we remain unwavering in our commitment to support our allies and partners around the world,″ Zaidi said Friday. If necessary, the Energy Department can allow exceptions for national security needs, he and Granholm said. How long will the pause last? Granholm and other officials declined to say how long the permitting pause will last, but said officials will study how proposed LNG projects will affect the environment, the economy and national security, a process that will take "some months." A public comment period after that will likely delay any decisions on pending LNG projects until after the November election. What do climate activists and Democrats say about Biden's action? Environmentalists hailed Biden's decision, saying LNG exports not only pollute communities and add to the climate crisis but also raise energy prices for U.S. families and businesses. Abigail Dillen, president of the environmental group Earthjustice, called on the Biden administration to follow through on its commitments to climate action and environmental justice ”and stop dangerous fossil fuel infrastructure'' such as LNG terminals. Most such facilities are located in the South in communities of color and low-income areas “that are already overburdened by fossil fuel pollution and are on the frontlines of climate change,″ she said. Sen. Ed Markey, D-Mass., called Biden’s action a “much-needed move to protect American communities from export-driven pollution and profiteering.” What do industry groups and Republicans say? The American Petroleum Institute, the largest lobbying group for the oil and gas industry, called Biden’s action "a win for Russia and a loss for American allies, U.S. jobs and global climate progress.'' Mike Sommers, API’s president and CEO, said no review is needed to "understand the clear benefits of U.S. LNG (exports) for stabilizing global energy markets, supporting thousands of American jobs and reducing emissions around the world by transitioning countries toward cleaner fuels″ and away from coal. Senate Minority Leader Mitch McConnell, R-Kentucky, called the move “foolish” and said it could increase global reliance on Russian and Iranian energy at a time when "our allies in Europe are increasingly relying on us to keep their lights and their heat running.'' What impact could Biden's decision have on the 2024 presidential race? Biden is hoping the decision helps him win back young voters disenchanted by his administration's approval of the massive Willow oil project and his support for Israel's continued military offensive in Gaza following the deadly attack by Hamas in October. “We will heed the calls of young people and frontline communities who are using their voices to demand action from those with the power to act,″ the president said in announcing the pause. A single proposed LNG export terminal in Louisiana would produce about 20 times the greenhouse gas emissions of Willow, activists say. “Biden wants young people, who care about climate above all, in his corner. They were angry about his dumb approval of the Willow oil project,″ said environmental activist Bill McKibben. Republicans portray Biden as pushing a Green New Deal that they consider radical and even un-American. Former President Donald Trump, the GOP frontrunner in 2024, has said he will seek to reestablish U.S. energy “dominance” and says one of his first actions, if returned to office, is to "drill, dill drill.'' A spokeswoman for Trump’s campaign said Biden had “once again caved to the radical demands of the environmental extremists in his administration.” The decision to block approval of new LNG export facilities “is one more disastrous self-inflicted wound that will further undermine America’s economic and national security,″ said spokeswoman Karoline Leavitt.
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Post by Blitz on Jan 27, 2024 6:57:07 GMT -5
And now this... Biden administration pauses new LNG exports to reassess climate impact Doug Cunningham - Fri, January 26, 2024 news.yahoo.com/biden-administration-pauses-lng-exports-141544520.htmlThe Biden administration Friday announced a temporary pause on liquified natural gas exports to non-Free Trade Agreement countries to re-assess environmental and economic impacts. Photo by Ting Shen/UPI Jan. 26 (UPI) -- The Biden administration Friday announced a temporary pause on approving new liquified natural gas exports to non-Free Trade Agreement countries to reassess environment and economic impacts. The pause will be in effect until the Department of Energy can update the underlying analyses for LNG export authorizations. Citing environmental concerns, President Joe Biden said in a statement, "During this period, we will take a hard look at the impacts of LNG exports on energy costs, America's energy security and our environment. This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time." The pause on pending LNG export decisions makes an exception for "unanticipated and immediate national security emergencies." Energy Secretary Jennifer Granholm told reporters Thursday, "As our exports increase, we must review export applications using the most comprehensive, up-to-date analysis of the economic, environmental and national security considerations." U.S. Energy Secretary Jennifer Granholm said the LNG export pause will allow time for the DOE to review export applications using the most comprehensive, up-to-date analysis of the economic, environmental and national security considerations. File Photo by Bonnie Cash/UPI A letter to Granholm signed by the American Petroleum Institute and 31 other industry groups said curbing LNG export approvals would hurt American jobs and undermine efforts to reduce greenhouse gas emissions, among other effects. "Our nation's abundant supply of natural gas is an impactful geopolitical tool, helping insulate American consumers from increasing global instability while advancing American national interests and ensuring the energy security of key U.S. allies," they wrote. According to a White House fact sheet, the DOE economic and environmental analyses for LNG exports are about 5 years old and no longer adequately account for the latest assessment of greenhouse gas emissions or potential energy cost increases for consumers and manufacturers. "Today, we have an evolving understanding of the market need for LNG, the long-term supply of LNG, and the perilous impacts of methane on our planet," the fact sheet said. "We also must adequately guard against risks to the health of our communities, especially frontline communities in the United States who disproportionately shoulder the burden of pollution from new export facilities." Sierra Club Executive Director Ben Jealous hailed the decision to pause new LNG exports. "This decision is a major win for communities and advocates that have long spoken out about the dangers of LNG and makes it clear that the Biden administration is listening to the calls to break America's reliance on dirty fossil fuels and secure a livable future for us all," Jealous said in a statement. "Strong leadership, that rejects fossil fuel industry fear-mongering, is our best bet to protect communities and ensure energy is affordable." Biden's statement said the administration has taken significant action on climate change, but more is needed. The United States is the number one exporter of LNG worldwide, according to the White House, and exports are expected to double by the end of the decade. The White House said the pause on new export decisions won't impact the ability of the United States to "continue supplying LNG to our allies in the near-term." Roughly half of U.S. LNG exports last year went to Europe.
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Post by Blitz on Jan 29, 2024 15:45:22 GMT -5
Spending on Natural Gas to Top $1 Trillion Over the Next Decade By Tsvetana Paraskova - Jan 29, 2024, 7:15 AM CST oilprice.com/Latest-Energy-News/World-News/Spending-on-Natural-Gas-to-Top-1-Trillion-Over-the-Next-Decade.htmlThe oil and gas industry is expected to spend more than $1 trillion on natural gas supply, driven by demand for gas in Europe, climate campaign group Global Witness said on Monday in a new analysis of Rystad Energy data. The industry is set to invest $223 billion of the projected spending in the supply of natural gas for Europe by 2033, according to Global Witness’s analysis. Europe’s gas demand is likely on a structural decline, but the continent needs supply to replace Russian pipeline gas, which was its top source until 2022. Following the Russian invasion of Ukraine and the slashed Russian deliveries of gas, Europe has turned to LNG and increased pipeline supply from Norway and Africa to meet its demand. “Despite climate and energy experts’ warnings that any new fossil fuel production will push the world beyond 1.5°C heating, $223 billion of this trillion dollar sum is set to go on developing and operating new gas extraction sites to supply Europe,” Global Witness says. The supermajors ExxonMobil, Shell, TotalEnergies, Equinor, and Eni will be the top spenders of that sum—together, these five companies are on track to spend a combined $144 billion into gas supply for Europe over the next decade, according to Global Witness. “The numbers are stark – Europe is hurtling down a dangerous path by doubling down on fossil gas, and needs to pull out all the stops to end the age of fossil fuels,” Dominic Eagleton, senior fossil fuels campaigner at Global Witness, said in a statement. “The European Commission must seize its chance to quicken Europe’s exit from gas and set 2035 as a target date to phase out this costly, crisis-ridden and climate-boiling fossil fuel.” Just last week, the International Energy Agency (IEA) said that lower prices and higher demand this winter are set to drive a return to strong growth in global natural gas consumption in 2024. This year, natural gas demand is set for 2.5% growth, following a meager 0.5% increase in 2023, the IEA said in its latest Gas Market Report for Q1 2024. By Tsvetana Paraskova for Oilprice.com
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Post by Blitz on Jan 30, 2024 8:17:55 GMT -5
Senator Joe Manchin vows to investigate Biden's LNG export license plan Ari Natter, Bloomberg January 29, 2024 www.worldoil.com/news/2024/1/29/senator-joe-manchin-vows-to-investigate-biden-s-lng-export-license-plan/(Bloomberg) – Senator Joe Manchin blasted the Biden administration’s move to halt the approval of new licenses to export U.S. liquefied natural gas (LNG) and vowed to use his power as the chairman of the Senate Energy and Natural Resources Committee to investigate. U.S. Senator Joe Manchin “If the Administration has the facts to prove that additional LNG export capacity would hurt Americans, they must make that information public and clear,” the West Virginia Democrat said in a statement Friday. “But if this pause is just another political ploy to pander to keep-it-in-the-ground climate activists at the expense of American workers, businesses and our allies in need, I will do everything in my power to end this pause immediately.” The White House announced the LNG export license freeze on Friday and said it needed to update its scrutiny of how the shipments affect climate change, the economy and national security — a moratorium that could last months and likely disrupt plans for billions of dollars in projects. Manchin, a staunch advocate of his home state’s abundant supplies of natural gas, said he would hold a hearing in the coming weeks to “unveil the facts about the true state of play in the markets, this administration’s motivations, and their implications.”
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Post by kingrig on Jan 30, 2024 8:41:20 GMT -5
Senator Joe Manchin vows to investigate Biden's LNG export license plan Ari Natter, Bloomberg January 29, 2024 www.worldoil.com/news/2024/1/29/senator-joe-manchin-vows-to-investigate-biden-s-lng-export-license-plan/(Bloomberg) – Senator Joe Manchin blasted the Biden administration’s move to halt the approval of new licenses to export U.S. liquefied natural gas (LNG) and vowed to use his power as the chairman of the Senate Energy and Natural Resources Committee to investigate. U.S. Senator Joe Manchin “If the Administration has the facts to prove that additional LNG export capacity would hurt Americans, they must make that information public and clear,” the West Virginia Democrat said in a statement Friday. “But if this pause is just another political ploy to pander to keep-it-in-the-ground climate activists at the expense of American workers, businesses and our allies in need, I will do everything in my power to end this pause immediately.” The White House announced the LNG export license freeze on Friday and said it needed to update its scrutiny of how the shipments affect climate change, the economy and national security — a moratorium that could last months and likely disrupt plans for billions of dollars in projects. Manchin, a staunch advocate of his home state’s abundant supplies of natural gas, said he would hold a hearing in the coming weeks to “unveil the facts about the true state of play in the markets, this administration’s motivations, and their implications.” telll Manchin to investigate the failed coup attempt
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Post by Blitz on Jan 30, 2024 10:45:10 GMT -5
Hey, Manchin… investigate it…
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Post by kingrig on Jan 30, 2024 15:12:55 GMT -5
Hey, Manchin… investigate it… tell Manchin to also investigate why Transocean isn’t getting no new multi-year contracts over $500k
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Post by Blitz on Jan 30, 2024 15:37:59 GMT -5
Hey, Manchin… investigate it… tell Manchin to also investigate why Transocean isn’t getting no new multi-year contracts over $500k Even I could investigate that and come up with... Thigpen is getting underbid.
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Post by nickz34 on Jan 30, 2024 15:40:23 GMT -5
Maybe Thigpen incompetent?
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Post by Blitz on Jan 30, 2024 15:55:06 GMT -5
Maybe Thigpen incompetent? I'd say he sees that with every drillship contract there's one less to compete with... meaning soon RIG will be the only game in town. I'm sure he's looked at cash on hand, free cash flow, backlog, and supply projections that still show his strategy can work. If not, he'd acquiesce and lower his bids. Time will tell if it's a genius plan or not. If he's right, he'll soon be a hero. If he's not correct, he'll soon lower RIG's prices. For investors running the supply demand numbers and knowing they all still look to all be working in RIG's favor... it's very frustrating seeing the slow progress in new contract announcements. However, IMHO, big new contracts with $500K dayrates are still just an eventuality. I also think that if team Biden had not released 300 million bbls of of from our SPR... we'd be seeing more of those big contracts by now.
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Post by nickz34 on Jan 31, 2024 11:32:15 GMT -5
Well said Blitz. Unfortunately, the Biden admin will likely resume its releases from the SPR in the runup to the election.
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Post by bjspokanimal on Jan 31, 2024 13:55:19 GMT -5
Maybe Thigpen incompetent? I'd say he sees that with every drillship contract there's one less to compete with... meaning soon RIG will be the only game in town. I'm sure he's looked at cash on hand, free cash flow, backlog, and supply projections that still show his strategy can work. If not, he'd acquiesce and lower his bids. Time will tell if it's a genius plan or not. If he's right, he'll soon be a hero. If he's not correct, he'll soon lower RIG's prices. For investors running the supply demand numbers and knowing they all still look to all be working in RIG's favor... it's very frustrating seeing the slow progress in new contract announcements. However, IMHO, big new contracts with $500K dayrates are still just an eventuality. I also think that if team Biden had not released 300 million bbls of of from our SPR... we'd be seeing more of those big contracts by now. The risk that Transocean is running by holding firm on premium dayrates (for their premium fleet) and customer paid reactivations, is that the oil upcycle will flag before they can garner an optimum benefit from that strategy. I think they looked at the major fleet scrapping that occurred during the 7 year downturn and the big reservoir depletions that occurred, and decided that such demise would trigger a longer and better upcycle now, so they're exercising patience in waiting for the market to come to them. So far, deepwater drilling has been unfazed by any global weakness we've seen as a result of the high interest rate and inflation regimen. FIDs are accelerating, even as lingering economic weakness in Europe and China drags on. There's no reason to believe that Transocean is getting the strategy wrong thus far even though it's quite taxing to investor patience. Transocean's finances also require them to avoid huge reactivation expenses and incentivize them to optimize their active fleet. Other drillers, who ruined their prior shareholders via bankruptcy, have more flexibility and the hope was that they wouldn't give away the farm to get their rigs out there drilling at any cost. So far, Valaris has been the poster child for that, but right now, it appears that all of them are starting to act more like Transocean with their last remaining stacked rigs. That being said, this is no time to change strategies now that we've come this far with it. I see the pressure to acquiesce as much less in 2024 now that all of those rigs are finishing up their rig preparations for new, more lucrative contracts beginning this quarter and revenues are expected to surge this spring as expenses and cap-ex significantly decline. The hard part of finishing up lower- paying contracts, doing all of that prep work last quarter, and completing the big cap-ex on Atlas, Titan and Aquila are done now. 2024 looks good, even if we don't see any reactivations before summer.
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Post by kingrig on Jan 31, 2024 14:38:35 GMT -5
I'd say he sees that with every drillship contract there's one less to compete with... meaning soon RIG will be the only game in town. I'm sure he's looked at cash on hand, free cash flow, backlog, and supply projections that still show his strategy can work. If not, he'd acquiesce and lower his bids. Time will tell if it's a genius plan or not. If he's right, he'll soon be a hero. If he's not correct, he'll soon lower RIG's prices. For investors running the supply demand numbers and knowing they all still look to all be working in RIG's favor... it's very frustrating seeing the slow progress in new contract announcements. However, IMHO, big new contracts with $500K dayrates are still just an eventuality. I also think that if team Biden had not released 300 million bbls of of from our SPR... we'd be seeing more of those big contracts by now. The risk that Transocean is running by holding firm on premium dayrates (for their premium fleet) and customer paid reactivations, is that the oil upcycle will flag before they can garner an optimum benefit from that strategy. I think they looked at the major fleet scrapping that occurred during the 7 year downturn and the big reservoir depletions that occurred, and decided that such demise would trigger a longer and better upcycle now, so they're exercising patience in waiting for the market to come to them. So far, deepwater drilling has been unfazed by any global weakness we've seen as a result of the high interest rate and inflation regimen. FIDs are accelerating, even as lingering economic weakness in Europe and China drags on. There's no reason to believe that Transocean is getting the strategy wrong thus far even though it's quite taxing to investor patience. Transocean's finances also require them to avoid huge reactivation expenses and incentivize them to optimize their active fleet. Other drillers, who ruined their prior shareholders via bankruptcy, have more flexibility and the hope was that they wouldn't give away the farm to get their rigs out there drilling at any cost. So far, Valaris has been the poster child for that, but right now, it appears that all of them are starting to act more like Transocean with their last remaining stacked rigs. That being said, this is no time to change strategies now that we've come this far with it. I see the pressure to acquiesce as much less in 2024 now that all of those rigs are finishing up their rig preparations for new, more lucrative contracts beginning this quarter and revenues are expected to surge this spring as expenses and cap-ex significantly decline. The hard part of finishing up lower- paying contracts, doing all of that prep work last quarter, and completing the big cap-ex on Atlas, Titan and Aquila are done now. 2024 looks good, even if we don't see any reactivations before summer. reactivations??? We can’t even get a 20 day contract
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Post by nickz34 on Jan 31, 2024 17:34:14 GMT -5
Exactly! They are being frozen out by their potential customers who understand damn well the upside they stand to gain by doing business with everyone but Transocean.
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Post by bjspokanimal on Jan 31, 2024 18:39:00 GMT -5
Exactly! They are being frozen out by their potential customers who understand damn well the upside they stand to gain by doing business with everyone but Transocean. Is this just your opinion, or do you have a link to support that this is what is happening?
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Post by nickz34 on Jan 31, 2024 19:41:01 GMT -5
isn't it pretty obvious?
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Post by Blitz on Feb 1, 2024 7:54:58 GMT -5
nick34... You may think everyone on this board is as smart as you are. Some of us, like me, may not be. Your sound bite posts do not make 'obvious' points to people like me that may not have your level of industry knowledge and sophistication. Unlike the RIG Yahoo Conversations board, here you can expand upon your one sentence posts for the benefit of all. It is also encouraged. Why? So that we can all learn and make better decisions to buy, sell, or hold.
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Post by Blitz on Feb 1, 2024 8:03:27 GMT -5
And now this... The U.S. Imported a Rare Russian Oil Cargo in November By Charles Kennedy - Feb 01, 2024, 2:19 AM CST oilprice.com/Latest-Energy-News/World-News/The-US-Imported-a-Rare-Russian-Oil-Cargo-in-November.htmlA cargo of 10,000 barrels of Russian crude arrived in November in the United States, Energy Information Administration data has shown, despite an official ban on Russian oil enacted by Congress two years ago. An official Russian oil import chart by the EIA shows a halt to imports in April 2022. Prior to that, the U.S. was importing several thousand barrels of Russian crude every month, with some years seeing monthly imports of between 10,000 and over 20,000 barrels. Despite the ban, there has been a lot of fuel made from Russian crude going into the United States, a report by Global Witness revealed last year. According to the report, Russian crude was being shipped abroad, refined there, and after that, it was exported legally to the U.S. India became a central hub for the processing of Russian crude, which it then exported around the world, including to the European Union, which like the U.S. had instituted an embargo on Russian crude oil and fuels. The EU has also been importing fuels made from Russian crude at Lukoil’s refinery in Bulgaria for lack of many alternative suppliers. Japan, another member of the G7 group that imposed an oil price cap on Russian exporters in 2022, has also continued to buy Russian crude despite the official restrictions. Not only that but the U.S. has allowed the country to continue doing this, and above the $60 per barrel price cap agreed in mid-2022. Meanwhile, fellow BRICS member Brazil has turned into another major buyer of Russian oil alongside India. Last year, according to new data, Russia became Brazil’s top supplier of diesel, with exports of other fuels also running high. In 2023, Brazil’s imports of Russian diesel surged by a massive 6,000% to 6.1 million tons, from just 101,000 tons a year earlier, the Financial Times reported on Tuesday, citing official government figures. By Charles Kennedy for Oilprice.com
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Post by Blitz on Feb 1, 2024 9:27:00 GMT -5
Energy trade groups urge Congress to counter Biden’s LNG ban with new legislation January 31, 2024 www.worldoil.com/news/2024/1/31/energy-trade-groups-urge-congress-to-counter-biden-s-lng-ban-with-new-legislation/(WO) – Energy Workforce & Technology Council (EWTC) joined the Independent Petroleum Association of America (IPAA), US Oil and Gas Association (USOGA), National Ocean Industries Association (NOIA), Texas Alliance of Energy Producers and Gulf Energy Alliance today in urging Congress to take immediate legislative action to counter the Biden administrations’ recent decision to halt LNG permits. The legislation, “Unlocking our Domestic LNG Potential Act,” was introduced by U.S. Congressman August Pfluger and seeks to place the Federal Energy Regulatory Commission in charge of all LNG export permitting in the United States. “Removing DOE from the process will help to ensure that political maneuvers will not interfere with energy supplies,” wrote the trade associations. “It is vital that Congress send an immediate message to our allies, and enemies, abroad that U.S LNG will continue to flow uninterrupted for many years to come.” The Biden administration’s announcement to pause new non-FTA permits for LNG export facilities threatens to stifle the progress made by the unprecedented ramp-up of the United States’s domestic energy production and the fundamental shift in European energy security. “It is imperative that political calculations do not get in the way of energy policy that benefits the US economy, provides energy security to our allies abroad, and supports lower emissions worldwide,” said Energy Workforce & Technology Council President Tim Tarpley. “In 2022, President Biden stood hand in hand with Europe and pledged to provide Europe with additional US LNG exports. Now, this about face by the Administration stands to negatively impact over 115,000 jobs nationwide and an anticipated loss of over $46 billion in GDP. Congress must act immediately to reverse this decision.” “Plentiful domestic natural gas production as a result of the Shale Revolution made it economical to liquify, transport, and export American natural gas while simultaneously bringing prices down at home," said Independent Petroleum Association of America (IPAA) President & CEO Jeff Eshelman. "It’s IPAA’s view that the Department of Energy restricting LNG exports threatens national security, American jobs and global climate goals. We support Rep. Pfluger’s ‘Unlocking Our Domestic LNG Potential Act’ to rightfully put LNG permitting authority with FERC where it belongs.” “The notion that we need to stop exports to study them is simply not a regulatory requirement. That's tap dancing for a bad policy. Our allies, particularly in Europe, will pay the price for the Department of Energy’s politically motivated decision,” said Kathleen Sgamma, president of Western Energy Alliance. As Germany has proven, if our allies don't have access to U.S. natural gas then they’ll need to burn more coal to keep the power going. Congress should revoke the licensing requirement and get DOE out of the business of gumming up trade, since natural gas export is so obviously beneficial for our country as much as for our allies.”
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Post by bjspokanimal on Feb 1, 2024 11:50:06 GMT -5
LNG is the cleanest fossil fuel and essential for providing uninterrupted power in a woke world where unreliable clean energy sources are all the rage among environmental extremists. If there were any "moderates" on the left anymore, other than Senator Joe Manchin, they would concentrate their wrath on oil and coal and leave natural gas alone.
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Post by Blitz on Feb 1, 2024 15:01:21 GMT -5
Why is zero cents not stopping this black reliable dusty dirty energy too? And now this... U.S. Exports of Steam Coal Reached 5-Year High in 2023 By Charles Kennedy - Feb 01, 2024, 10:30 AM CST oilprice.com/Latest-Energy-News/World-News/US-Exports-of-Steam-Coal-Reached-5-Year-High-in-2023.htmlLower domestic coal consumption and higher demand in Asia pushed U.S. exports of thermal coal in 2023 to the highest level since 2018, Reuters reported on Thursday, quoting data from ship-tracking firm Kpler. The United States exported last year more than 32.5 million metric tons of thermal – or steam – coal, used primarily in electricity generation, per the data reported by Reuters columnist Gavin Maguire. In terms of export revenues, the United States hauled in more than $5 billion from thermal coal shipments in 2023, the second-largest revenues since 2017. The highest coal export revenues since 2017 were achieved in 2022—at $5.7 billion, per figures cited by Reuters. Climate think tank Ember notes that coal use in U.S. power generation sank last year to the lowest in the 21st century. India continued to be the top destination for U.S. thermal coal exports in 2023. Per Energy Information Administration data for 2022, India accounted for 19% of U.S. coal exports, followed by the Netherlands, whose import hubs are the entry point to Europe, and by Japan, Brazil, and South Korea. As domestic consumption of U.S. coal is set to drop, the EIA expects in its latest Short-Term Energy Outlook (STEO) exports to account for a larger share of total U.S. coal consumption. Exports are expected to make up 19% of total coal demand in the U.S. in 2024 and 21% in 2025, up from a share of 14% in 2019, due to falling domestic demand, especially from the electric power sector. “The pickup in exports reflects more demand for U.S. coal in foreign markets, especially in Asia where coal consumption was on track to hit record levels in 2023,” the EIA said in an analysis earlier this week. This increase in demand for U.S. coal is primarily for thermal coal in Europe and Asia, where U.S. coal exporters have grabbed a small share of the growing market. Demand for U.S. coal increased following the embargoes of Russia’s coal in several markets. Demand for U.S. metallurgical coal, used primarily in steelmaking, has remained steady in foreign markets given its high quality for blast furnace coking, the EIA said. By Charles Kennedy for Oilprice.com
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Post by Blitz on Feb 3, 2024 9:03:48 GMT -5
Exxon: Biden’s Halt To LNG Project Approvals is ‘A Mistake’ By Charles Kennedy - Feb 02, 2024, 10:30 AM CST oilprice.com/Latest-Energy-News/World-News/Exxon-Bidens-Halt-To-LNG-Project-Approvals-is-A-Mistake.htmlThe pause in new LNG export project approvals announced by the Biden Administration last week is “a mistake” as it would actually hold back global efforts to reduce emissions, ExxonMobil’s CFO Kathy Mikells told Bloomberg in an interview published on Friday. “Reducing production of LNG actually harms the world achieving net zero sooner rather than later,” Mikells said told Bloomberg. “It’s a mistake,” the senior Exxon executive added. Last week, the Biden Administration said it was pausing all pending decisions on U.S. LNG export projects until the Department of Energy can update the underlying analyses for authorizations. During the temporary pause – which is expected to affect four planned LNG export projects – DOE will carry out a new updated review on the impact of such projects on health and communities. Natural gas production and LNG liquefaction for exports generate emissions, but these emissions are still 50% lower than compared to burning coal. ExxonMobil, together with QatarEnergy, the state giant of Qatar, are currently developing the Golden Pass LNG export project on the U.S. Gulf Coast near Sabine Pass, Texas. The project has all necessary approvals and is expected to start up in 2025, Exxon’s Mikells told Bloomberg. The American Petroleum Institute (API) and other major industry groups, including American Exploration and Production Council (AXPC), Center for LNG (CLNG), Independent Petroleum Association of America (IPAA), LNG Allies, among others, slammed the Biden Administration’s decision to halt export project approvals. “Our nation’s abundant supply of natural gas is an impactful geopolitical tool, helping insulate American consumers from increasing global instability while advancing American national interests and ensuring the energy security of key U.S. allies,” the groups wrote in a letter to U.S. Energy Secretary Jennifer Granholm. “Moving forward with a pause on new U.S. LNG export approvals would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy, undermining American credibility and threatening American jobs,” they said. By Charles Kennedy for Oilprice.com
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