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US stimulus bill earmarks $14bn for CCC: Update

  • Market: Agriculture, Coal, Crude oil, Emissions, Natural gas, Oil products
  • 25/03/20

The US Senate has allocated $14bn to support agricultural price protection and farm income programs as part of its massive stimulus bill intended to provide economic relief from the coronavirus disruption.

The emergency funds will be sent to the Commodity Credit Corporation, a federal corporation which manages domestic farm income programs as well as foreign market development.

Sustained depreciation in product values and weakened demand stemming from measures implemented to stunt the spread of the coronavirus are set to squeeze farmer income in 2020, but could be mitigated if the senate's package is approved and signed into law.

Additionally, the bill also earmarks $9.5bn in emergency coronavirus funding to support agricultural producers affected by the pandemic, including specialty crop growers, producers that supply local food systems and livestock producers.

Congressional leaders negotiated the bipartisan $2 trillion deal in just five days, as the death toll in the US from the outbreak surpassed 700 and shuttered US businesses laid off what some analysts expect could be millions of workers. The deal would funnel the equivalent of nearly 10pc of US GDP to struggling businesses, states, hospitals and workers through a variety of grants, loans, cash payments and increased government benefits.

US Senate majority leader Mitch McConnell (R-Kentucky) said the deal would offer billions of dollars in emergency loans to businesses and rush new resources to healthcare facilities already struggling to manage the first wave of coronavirus patients. The agreement is also expected to send direct cash payments to most taxpayers.

"We are going to pass this legislation later today," McConnell said.

But the agreement will not include $3bn that would have gone to purchase 77mn bl of crude to refill the US Strategic Petroleum Reserve, something President Donald Trump wanted to help oil producers struggling from a collapse in prices. Senate minority leader Chuck Schumer (D-New York) touted the removal of the funds in a letter to Democratic colleagues this morning.

"Eliminated $3 billion bailout for big oil," the letter said.

The agreement, text of which has yet to be released, will save "hundreds of thousands of airline industry jobs," Schumer said in the letter. It will also prohibit airlines from stock buybacks and providing bonuses to chief executives. Crucial to the agreement was the inclusion of a Democratic demand for increased oversight of a $500bn fund for businesses, and a prohibition on Trump's hotel and other businesses from receiving loans and investments from those funds.

The prospect of a stimulus deal being reached helped send the US Dow Jones Industrial Average up by 11.4pc yesterday.


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22/02/25

Calif lawmakers begin GHG program extension

Calif lawmakers begin GHG program extension

Houston, 22 February (Argus) — California lawmakers will pursue reauthorizing the state's cap-and-trade program to control major emissions sources this legislative session, a move that could give market participants greater legal certainty. AB 1207, a bill filed 21 February by state representative and chair of the Joint Legislative Committee on Climate Change Policies Jacqui Irwin (D), would reauthorize the California Air Resources Board (CARB) to operate its cap-and-trade program to reduce greenhouse gas (GHG) emissions from sources such as power plants and transportation fuels. A 2017 law already extended the program out to 2030, but this new bill could allay concerns from the market amid a sluggish regulatory update to the rules and growing pressure from the federal government. CARB began weighing amendments to its cap-and-trade program in 2023, following the adoption of its 2022 scoping plan, which highlighted a need for increased program ambition to keep the state on track for its target of net-zero by 2045. Stakeholders have petitioned CARB to seek a formal reauthorization in the legislature to aid compliance planning and add legal certainty throughout its ongoing rulemaking procedure to potentially move the program to a 48pc GHG reduction target from 1990 levels by 2030, rather than the current 40pc. With CARB experiencing ongoing delays in twin rulemakings with market partner Quebec, a formal reauthorization represents a significant step in outlining the program's future, after months of uncertainty . This legislative action dovetails with the focus of the governor Gavin Newsom's (D) administration and budget writers, as they work to navigate growing tension with the federal government and projected multi-year deficits in the state's budget. Newsom announced his intent for lawmakers and the administration to focus on reauthorizing the state's program in January in his 2025-26 budget proposal, highlighting the revenue from the program. Cap-and-trade auction revenue enters the Greenhouse Gas Reduction Fund (GGRF), which supports the state's clean economy transition through programs targeting GHG emissions reductions. In recent budget talks appropriations of GGRF funds have come under scrutiny, with state Assembly Budget Climate Crisis, Resources, Energy and Transportation Subcommittee chair Steve Bennett (D) in a informational hearing on 19 February highlighting the need for lawmakers to ensure the revenue supports projects that will fulfill needed GHG reductions, as the chamber discusses reauthorization. Lawmakers have until 6 June to pass the bill out to the state Senate. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Republicans target US energy rules for disapproval


21/02/25
News
21/02/25

Republicans target US energy rules for disapproval

Washington, 21 February (Argus) — Republican leaders in the US House of Representatives hope to disapprove at least seven energy-related measures issued under former president Joe Biden using a filibuster-proof process created under the Congressional Review Act. House majority leader Steve Scalise (R-Louisiana) on Thursday released a list of 10 rules that his party has prioritized as "potential targets" for disapproval votes, which require only a simple majority to pass in each chamber. Republicans previously used the law in 2017 to successfully unwind more than a dozen rules, and they hope to do so again to repeal Biden-era rules they say will unnecessarily raise costs on businesses and consumers. A US Environmental Protection Agency (EPA) regulation that implements a $900/t charge on oil and gas sector methane leaks is among the rules that Republicans want to disapprove. If those implementing rules are scrapped, it would provide a temporary reprieve from a 31 August deadline for operators having to pay billions of dollars in potential fees on methane emitted in 2024. Republicans hope to vote later this year to permanently end the methane charge, which was created by the Inflation Reduction Act. House Republicans also hope to disapprove an offshore oil and gas safety rule for drilling in deepwater "high pressure, high temperature" environments that Scalise's office says will increase "burdens on energy operations". Other rules that Republicans will target for disapproval are energy conservation for gas water heaters, energy efficiency labeling standards and air pollution restrictions on rubber tire manufactures. Two of the energy measures House Republicans say they plan to target might not qualify for disapproval under the Congressional Review Act, which can only be used on a "rule". The first is a waiver that would allow California to boost in-state sales of electric vehicles and plug-in hybrids, and that President Donald Trump's administration has tried to make eligible for repeal. The second is the US Commodity Futures Trading Commission's decision to release voluntary guidance for exchanges that allow trading of carbon offset futures. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Freeze cuts Oklahoma oil and gas output


21/02/25
News
21/02/25

Freeze cuts Oklahoma oil and gas output

New York, 21 February (Argus) — Frigid weather in Oklahoma this week has shut in about a third of state oil and natural gas production, according to analysts and pipeline flow data. About 35-40pc of daily oil and gas output in Oklahoma have been lost to freeze-offs from 19-21 February, Energy Aspects analyst David Seduski told Argus . That amounts to cuts of about 150,000 b/d of crude and 2.5 Bcf/d (71mn m³/d) of gas over the period relative to average daily production in the state, US Energy Information Administration data show. The drop was observable in publicly available data for most interstate pipelines across the state, including Kinder Morgan's Natural Gas Pipeline Company, Howard Energy Partner's Midship Pipeline and Energy Transfer's Panhandle Eastern Pipe Line Company and Enable Gas Transmission pipelines, FactSet energy analyst Bailey McLaughlin said. Production will probably continue to be lost through the weekend as cold weather lingers in the state. Freeze-offs occur when temperatures drop low enough to prevent oil and gas production from reaching the wellhead by causing the water contained in the oil and gas stream to freeze. Freeze-offs in Oklahoma typically occur when temperatures fall below 22°F (-6°C), McLaughlin said. This is a higher threshold than the temperature required to curtail output in colder producing regions such as North Dakota, which has also lost production to freeze-offs in recent weeks. The spot gas price at ANR Oklahoma, a regional trading hub on TC Energy's ANR Pipeline, on Thursday surged to $7.715/mmBtu, double the week-earlier price and the highest since 17 January. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Uruguay eyes oil, gas E&P within energy transition


21/02/25
News
21/02/25

Uruguay eyes oil, gas E&P within energy transition

Montevideo, 21 February (Argus) — Uruguay's state-run Ancap has hopes for an offshore oil or gas discovery, even as the country gears up for its second energy transition. Uruguay has had only three exploratory wells drilled in its history, two in 1976 and one in 2017, and they all came up dry. Companies have completed 13,000 km² of 2D and 41,000 km² of 3D seismic testing this century. Today, its seven offshore blocks have contracts, plans are underway for a new round of seismic testing and one company, US-based APA, wants to spud an exploratory well in its wholly operated block 6 in late 2026 or early 2027. "For the first time in history, we have contracts in place for all the blocks and there is a great deal of interest that resources can be found" in Uruguay, Santiago Ferro, Ancap's energy transition manager, told Argus . A public hearing on seismic testing was held 13 February and the environment ministry is reviewing proposals for permits. Ferro said seismic testing will only be done in areas lacking data. "We want to take advantage of existing information and complement it with new data to encourage drilling," he said. The plan is for approximately 5,000 km² (1,930 mi²) of new seismic testing on two areas — block 1, operated by Chevron and UK-based Challenger Energy Group, and block 4, operated by Shell and APA. The work will likely happen in the final quarter of this year. Ancap's plans will unfold under the new left-wing government of president-elect Yamandu Orsi, who takes office on 1 March. The Oris administration is committed to deepening Uruguay's energy transition. It already has one of the greenest power grids, with 99pc of power coming from renewables, and the Orsi government wants to guarantee electrification of the transportation sector. He will arrive at his inauguration in an elective vehicle as a sign of the government's commitment. The administration wants to decarbonize transportation in 10 years, which will require incentives for vehicles and investment in additional renewable power, principally solar energy. It has not taken a public stand on oil and gas exploration or what it would do if recoverable resources were discovered. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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France's US crude imports at record again in December


21/02/25
News
21/02/25

France's US crude imports at record again in December

Barcelona, 21 February (Argus) — French crude imports in December included a record amount from the US for a third consecutive month, and the US was France's largest crude supplier in 2024. Customs data show imports at 4.2mn t (990,000 b/d) in December, down by 2pc on the year and down from 4.3mn t a month earlier. Deliveries in 2024 were 47.1mn t, lower by 2.4pc on the year. Deliveries of US crude were 1.34mn t in December, up from slightly more than 1.25mn t in November and just over 1.2mn t in October. US crude has continued to arrive in January and February. The US was the largest supplier to the Mediterranean port of Fos-Lavera in January , with more cargoes arriving there and at the Atlantic Le Havre terminal this month, according to Argus tracking. The US is now by far the biggest supplier to France. It provided 11.5mn t of crude in 2024, up from 9mn t in 2023, with the large majority being light sweet WTI. The US supplied no crude to France 10 year ago. The growth since has significantly altered the French crude slate, pushing it lighter and less sulphurous. As recently as 2019, when 4.4mn t of US crude arrived, medium sour grades Saudi Arab Light and Russian Urals accounted for more than 15mn t between them, split 2:1 in favour of Saudi Arabia. Sanctioned Urals was absent in 2024 for a second year in a row and Saudi Arabia supplied just 1.3mn t, down from 3.5mn t in 2023. There has not been a major shift in other suppliers (see chart) . Last year Nigeria supplied 6.4mn t, down marginally on 2023, Kazakhstan shipped 5.3mn t down from 5.6mn t and Algeria 4.2mn t, down from 4.6mn t. While French refinery availability has been plagued by problems since the fourth quarter of 2019 , the lighter sweeter crude slate has resulted in higher production of light products naphtha and gasoline . This increase has occurred even after TotalEnergies definitively closed its 93,000 b/d Grandpuits refinery at the start of 2021. There is the possibility of continued support for US shipments this year. Alternative light sweet Libyan crude can be prone to political disruption, Nigerian domestic crude consumption is growing as the 600,000 b/d Dangote refinery ramps up , and Kazakhstan is under pressure to compensate for exceeding its Opec+ output target and could limit deliveries of CPC Blend. By Adam Porter French crude imports mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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