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US freezes new federal drilling permits, leases

  • Market: Crude oil, Electricity, Emissions, Natural gas
  • 21/01/21

President Joe Biden's administration has temporarily halted the approval of new drilling permits and leases across US federal lands, drawing complaints from industry groups.

The 60-day suspension on approvals is necessary for a "targeted and time-limited" review of recent decisions, the US Interior Department's acting secretary Scott de la Vega said in an order signed yesterday. The freeze will apply to permits, leases, easements and federal land management plans.

But producers holding federal leases will still be allowed to continue drilling wells using the more than 5,600 unused drilling permits they amassed over the past two years. That will likely avoid most near-term disruptions to operations. Oil and gas producers typically acquire permits months before drilling crews begin operations, to avoid the risk of disruptions and to aid in planning.

Biden during his presidential campaign promised to "ban" new oil and gas drilling permits and halt new federal fossil fuel leasing. But the administration will need to figure out a way to achieve that goal, while still complying with laws that generally support production. Oil output on federal lands and waters averaged 2.7mn b/d in 2019, representing 22pc of domestic production.

Oil and gas groups have strongly opposed Biden's plans to constrain the industry's access to federal lands, which cover nearly all offshore acreage and a fifth of the US landmass. Halting federal development will hurt the economy and increase reliance on energy imports, they say.

"Blocking American companies from accessing our country's natural resources is bad for American jobs, bad for state budgets and bad for national security," American Exploration and Production Council chief executive Anne Bradbury said. "It also raises serious legal concerns."

The Interior Department has the option to extend or modify the suspension order. Former president Barack Obama's administration in 2016 placed a moratorium on new federal coal leasing, combined with an environmental review, that lasted until it was repealed by Trump more than a year later.


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26/02/25

UK should cut emissions by 87pc over 1990-2040: CCC

UK should cut emissions by 87pc over 1990-2040: CCC

London, 26 February (Argus) — The UK advisory Climate Change Committee (CCC) has outlined a "feasible" pathway towards a 87pc reduction in greenhouse gas (GHG) emissions by 2040 for the country, from a 1990 baseline. This is "an ambitious target", but it is deliverable, provided action is taken rapidly", the committee said today. Electrification and "low-carbon" electricity generation would make up 60pc of the emission reduction. The CCC recommends a level of 535mn t/CO2 equivalent (CO2e) for the UK's seventh carbon budget, over 2038-42, including emissions from international aviation and shipping. A carbon budget is a cap on emissions over a certain period. They are legally binding in the UK, with the CCC required to advise the government on the levels outlined. The energy transition "will make the UK economy more resilient, by reducing dependence on volatile international fossil fuel markets", the CCC said. It sees net energy imports falling from 867TWh in 2025 to 202TWh in 2050, with the cost of achieving net zero emissions at around 0.2pc of UK GDP annually on average. Upfront investments will lead to savings, it said. The CCC expects the private sector to contribute much of the investment needed, but noted that "policy is needed to provide confidence". Ramping up renewables "UK-based renewable energy provides the bulk of generation in a larger, future electricity system", the committee said. Its pathway envisages a six-fold increase in offshore wind, to 88GW of capacity in 2040 from 15GW in 2023, while onshore wind and solar power capacity reach 32GW and 82GW, respectively, by 2040. It notes the need for nuclear power, energy storage and grid upgrades. The committee also maps a scenario where the industrial sector — often high-emitting and difficult to decarbonise — uses electricity to meet 61pc of its energy demand, "up from around 26pc today". This would allow "UK manufacturers to benefit from global demand for low-carbon goods", the CCC said. For shipping and aviation, the CCC sees a role for "low-carbon fuels", including hydrogen and bioenergy. But the latter is "constrained by the availability of sustainable sources", while the use of hydrogen is limited, the committee said. The fuel has no role in heating buildings and "only a very niche, if any, role in surface transport". Carbon removals plays a role in emission reduction, but carbon capture and storage (CCS) "is limited to sectors where there are few, or no, alternatives". CCS could be used in industrial sectors or alongside hydrogen, it noted. The CCC saw a role for bioenergy with CCS, and direct air capture, although all carbon capture technology would require developing CO2 transport and storage infrastructure and finalise business models, it said. It also flagged the need for nature-based carbon sequestration, such as new woodlands and peatland restoration. The proportion of electric vehicles (EVs) significantly increases in the committee's pathway, to three-quarters of cars and vans and almost two-thirds of heavy goods vehicles being electric by 2040 — up from 2.8pc of cars and 1.4pc of vans in 2023. The falling cost of batteries will allow EVs "to reach price parity with comparable [gasoline] and diesel cars between 2026 and 2028", the CCC said. The pathway has around half of UK homes using heat pumps by 2040, from 1pc in 2023. The UK government must now propose, by 30 June 2026, a level for the seventh carbon budget, which parliament will then approve or reject. The government has in recent months stuck to CCC advice, setting out a national climate plan which pledged an 81pc emissions cut by 2035 , in line with CCC recommendations. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump's Canada, Mexico tariffs deadline looms


25/02/25
News
25/02/25

Trump's Canada, Mexico tariffs deadline looms

Washington, 25 February (Argus) — US president Donald Trump has given little indication on whether he will delay or implement his plan to impose stiff import duties on Canadian and Mexican energy commodities and other products on 4 March. Some market participants are hopeful for another extension or cancellation of Trump's executive order that would impose a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. The uncertainty over the implementation has had vast segments of the energy industry — oil and gas producers, refiners, pipeline operators, traders — bracing for potentially disruptive outcomes. The three governments are negotiating to avert a full-blown trade war, addressing Trump's pretext for imposing the tariffs — Mexico's and Canada's alleged unwillingness to cut flows of fentanyl and immigrants into the US. Trump and Canadian prime minister Justin Trudeau last spoke on 23 February, with the two leaders noting that the flow of fentanyl across the shared border had fallen in the preceding month. But Trump, speaking the following day, said that "the tariffs are going forward on time, on schedule". And on Tuesday, Trump repeated to reporters at the White House his previous off-the-cuff remarks about Canada becoming "the 51st US state". "We don't need their oil," Trump said. "We don't need their lumber." Even without the broad tariffs in place, trade disputes will pick up pace next month when Trump's 25pc tariff on all imported steel and aluminum goes into effect on 12 March. The imposition of tariffs after decades of free trade in energy across North America is expected to create legal uncertainty in contractual obligations related to the payment of tariffs and reporting requirements. The current US import duties on crude are set at 5.25¢/bl and 10.5¢/bl, depending on crude quality. The new tariff would be based on the value of the commodity — without specifying how that will be calculated and at what specific point during the transportation process. US government agencies are not expected to clarify the implementation details until Trump's executive order on tariffs goes into effect. US oil industry groups have lobbied the Trump administration to exempt energy imports from tariffs. Trump instead lowered the planned tariff on Canadian energy imports to 10pc, from the originally proposed 25pc. US lawmakers, including close Trump allies, have expressed concern about the potential impact of tariffs. But the Republican lawmakers have shied away from confronting Trump over the issue. "Texas' number one trading partner is Mexico, number two is Canada, so what happens will have an impact on us," US representative Randy Weber (R-Texas) said today at an event hosted by Politico. But Weber added that Texas governor Greg Abbott (R) is "on top of this stuff" and that "if it was going to be a problem for Texas, I think [Abbott] would have been either singing out loud, or he would have gone to talk to the president directly". Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US last year were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian producers also have expressed concern about the uncertain impact of tariffs on crude volumes trans-shipped through the US, either for exports to third country destinations from Gulf coast ports or transported on US pipelines to destinations in eastern Canada. India is a key destination for trans-shipped Canadian crude. Buyers in India loaded 150,000 b/d from the US ports last year, including around 40,000 b/d of trans-shipped Canadian heavy sour crude, data from oil analytics firms Vortexa and Kpler show. By Haik Gugarats and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Energy Traders Europe against EU storage regs extension


25/02/25
News
25/02/25

Energy Traders Europe against EU storage regs extension

London, 25 February (Argus) — Industry association Energy Traders Europe wants the European Commission to rule out a possible extension of the EU's gas storage obligations past the end of 2025 in order to "restore some calm" to the market, gas committee chair Doug Wood told Argus . While the association recognises the drivers behind the introduction of the original legislation in 2022, it is "concerned about the distortive nature of some of these measures, and strongly recommended they should not be sustained into times of normal market operation", it told Argus . Since the energy crisis in 2022, additional LNG import capacity in Europe has come on line, interconnection capacities between member states have increased, more renewable electricity capacity has reduced the call on gas-fired power generation and industrial demand has dropped or "become more responsive", meaning the need for "ongoing strict interventionist measures is no longer present", the association said. The continued emphasis on storage filling as opposed to a "broader approach to security" has led to a "concentration of activity" in this area, which in combination with other factors has driven summer prices above winter, the association noted. This leaves EU member states "trapped between having a very expensive form of security, or saving money but leaving storage under-filled", Wood said. But some member states are "fuelling further uncertainty" by calling for the extension of these storage obligations past the end of 2025, but with more flexibility or exemptions, the association said. This "creates the greatest uncertainty for those who would plan for storage injections", and the risk of further interventions, or "worse still, unpredictable responses by member states in how they choose to apply obligations", will deter commercial storage filling, Energy Traders Europe said. This risks extending the uncertainty to future years, and member states will repeatedly need to "choose between filling storage using non-commercial entities as a distressed buyer, or leaving it empty", it added. The current situation has made the market "highly volatile", so the most helpful action now "would be to restore some calm by ruling out a possible extension of storage obligations to 2026 and beyond", Wood said. Many of these points echo similar ones made by gas industry association Eurogas earlier this month . The commission will publish a legislative proposal on the extension of its gas storage regulation before the end of March , according to a document seen by Argus . By Brendan A'Hearn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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South Korea to submit new climate plan in September


25/02/25
News
25/02/25

South Korea to submit new climate plan in September

Singapore, 25 February (Argus) — South Korea will submit its new national climate plan, or nationally determined contribution (NDC), to the UN in September, after the deadline of 10 February. The government plans to establish the 2035 NDC with a "challenging and feasible" greenhouse gas (GHG) reduction target, announced the Presidential Commission on Carbon Neutrality and Green Growth on 24 February. South Korea's 2030 NDC, which was submitted in December 2021, aims for a 40pc reduction in emissions by 2030 from 2018 levels. The government also plans to establish the "4th National Climate Crisis Adaptation Measures" for 2026-30. This will include measures to alleviate price volatility of agricultural products owing to the climate crisis, among others. UN climate body the UNFCCC had set 10 February as the deadline for countries to submit their third NDCs, which are supposed to set out climate action and targets up to 2035. But many countries have missed the deadline , while research group Climate Action Tracker found that several are not aligned with Paris accord goals. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia’s Woodside sees robust demand for LNG


25/02/25
News
25/02/25

Australia’s Woodside sees robust demand for LNG

Sydney, 25 February (Argus) — Australian independent Woodside Energy sees LNG demand exceeding supply into the 2030s as project delays lead timelines for nearly 30mn t/yr of new capacity to slip into the next decade, chief executive Meg O'Neill said after releasing the firm's 2024 annual results today. Headwinds affecting some projects and "ongoing, robust demand" within Asia-Pacific will prevent any LNG supply glut, despite easing regulatory hurdles under the Trump administration, O'Neill told investors. Such headwinds could also impact Woodside. The company's 14.4mn t/yr North West Shelf (NWS) terminal is still waiting for federal consent to continue operations past 2030, after passing state government scrutiny last year following six years of assessments. And the planned 11.4mn t/yr Browse project hinges on NWS approvals being granted, with Woodside preferring a decision is made before Australia's elections in May, in which Green and other climate-conscious MPs may win a balance of power. O'Neill said the fully-priced engineering, procurement and construction contract with engineering firm Bechtel for the initial stage of its Louisiana LNG project was "differentiating" with other nearby proposed terminals requiring re-pricing, as Woodside aims to sell down 50pc of the terminal. Woodside will not take a final investment decision (FID) on Louisiana unless it is confident it has partners signed up or extremely close, O'Neill said, referencing the sale of 49pc of Pluto train 2 at FID before it later offloaded part of the Scarborough gas field that will supply the project. "I think there's potential for us to have the whole 50pc [target] sold-down by FID," O'Neill said, adding that "deep negotiations" were underway as the project aims for FID-readiness by 31 March. Woodside said it will cut expenditure on exploration and its New Energy division by $150mn to focus on producing assets. Exploration outlay was $342mn in 2024 and is guided at $200mn for 2025, while the savings from New Energy will mainly come from pausing its 60 t/d H2OK project in the US . In New Energy, Woodside will prioritise its 83pc complete, 1.1mn t/yr US Beaumont ammonia project ahead of first output in July-December and first low-carbon or blue ammonia using carbon capture and storage in the second half of 2026. Cost of production for phase 1 will be $260-$300/t, based on assumed costs after start-up from 2027-29 at 96pc uptime, a fixed/variable split of 70/30pc, a range of Henry hub gas pricing and the 45Q tax credit that grants $85/t of CO2 stored. Woodside made a profit of $3.57bn in 2024, up from $1.66bn for 2023 but below 2022's record of $6.5bn. It posted lower realised oil and gas prices of $63.6/bl of oil equivalent (boe) in 2024 from $68.6/boe in 2023, despite its output rising to 530,000 boe/d. The firm kept its 2025 guidance unchanged at 186mn-196mn boe (510,000-537,000 boe/d). Forecast capital expenditure of $4.5bn-5bn is focused on its 80pc complete Scarborough and 20pc complete Trion projects. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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