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US debt deal revises permitting, helps MVP: Update

  • : Crude oil, Natural gas, Oil products
  • 23/05/29

Adds details on bill's approval of the Mountain Valley Pipeline.

An agreement reached between President Joe Biden and Republicans to raise the limit on federal debt would also fast-track federal permitting and help ease the way for the long-delayed $6.6bn Mountain Valley Pipeline (MVP).

The bipartisan agreement, reached on 27 May and still waiting to be voted on by Congress, would put limits on government spending over fiscal years 2024-25 in exchange for raising the debt limit for two years. As part of the deal, negotiators also inserted language that would end federal permitting difficulties for the MVP by approving its federal permits and prohibiting further legal challenges to those permits.

The 300-mile natural gas pipeline project already holds nearly all of its federal permits but is missing a West Virginia state water permit that was recently struck down in court, which would not be revived by the debt limit deal. But the language in the debt limit bill could be significant by blocking any further litigation risks related to the project's federal permits, including a court ruling within the last week raising issues with the project's federal certificate.

US midstream operator Equitrans Midstream, which is developing the pipeline, did not immediately respond to a request for comment. The company has previously said it expects the pipeline — which would transport shale gas from West Virginia to Virginia — could be completed this year if all of its permits are restored. The company expects West Virginia will be able to reinstate its water permit.

US House speaker Kevin McCarthy (R-California) said the debt agreement was a win for taxpayers that will "rein in government overreach" without raising federal taxes. Biden said the deal represented a compromise that meant no one got everything they wanted.

"I think it's a really important step forward, and it takes the threat of catastrophic default off the table," Biden said Sunday.

The text of the debt limit legislation was released tonight. McCarthy plans to bring the bill up for a floor vote on 31 May, which would give the US Senate about five days to vote on it before 5 June, the day when the US is projected to run out of funding to meet all of its payment obligations.

Biden said the deal would reduce government spending while still protecting Democratic priorities. House Republicans had wanted to use the debt limit to repeal most of the $369bn in climate-related spending in last year's Inflation Reduction Act.

House Republican leaders say the deal will ease regulatory burdens by requiring a new "pay-as-you-go" mechanism that would limit the cost of new regulations. The agreement would also aim to speed permitting of energy and infrastructure projects by putting a 1-year or 2-year limit on reviews prepared under the National Environmental Policy Act (NEPA) and designating a lead agency for permitting, among other changes.

"We're gonna cut the red tape," McCarthy said today in a televised interview. "If you want to build a road, if you want to put renewable energy, you want to have our energy to become energy independent, you now have it streamlined."

But the permitting revisions would fall short of the sweeping changes being debated by Democrats and Republicans in key congressional committees, such as revisions to water permitting rules or revising the scope of NEPA. That creates the chance for the US Congress to vote later this year on a broader bipartisan permitting bill.

"Far more extensive reforms will be needed to expedite the thousands of new energy projects that are pending approval," Progressive Policy Institute strategic adviser Paul Bledsoe said.

The agreement will likely need broad bipartisan support to pass in the House, where far-right conservatives have already vowed to vote in opposition. US representative Ralph Norman (R-South Carolina) said the deal was "insanity" and lacked the degree of cuts that Republicans wanted. US representative Bob Good (R-Virginia) said no one claiming to be a conservative could vote for the deal.


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25/03/17

Carney to strike while iron, steel and aluminum are hot

Carney to strike while iron, steel and aluminum are hot

Calgary, 17 March (Argus) — Newly minted Canadian prime minister Mark Carney will likely call a national election soon to both secure his seat in Canada's parliament and win a public mandate in the ongoing trade war with the US. Carney has helped revive the Liberal party's fortunes and narrow the gap between main rival Conservative leader Pierre Poilievre in recent weeks, raising the odds he will call for a national election soon. Poilievre has lost momentum because of rising anti-US sentiment in Canada while the governing Liberals have capitalized on newfound attention in what many in the country see as a fight against US president Donald Trump. An election would occur 37-51 days after being called, meaning Canadians could go to the polls as early as late-April. Because Carney did not hold elected office when his party chose him to succeed Justin Trudeau, he must also find a parliamentary seat to run for in the election. At the same time voters will be voting on all other seats in parliament, essentially putting the Liberal party's nine-year run leading the country in the balance. Parliament has been out of session for several months after Trudeau asked for an extension of a regular recess while his party chose a new leader. It is scheduled to return on 24 March although Carney could ask to extend it again. If it does return to session, Carney will be without a seat and unable to defend himself against Conservative attacks in the House of Commons. Until then, Carney will continue to lead Canada's response to the US-induced trade war, which has included tariffs on energy and a wide range of other imports imposed then removed earlier this month, as well as ongoing tariffs against steel and aluminum imports. A tight contest A virtual tie in the polls for Canada's two largest federal parties promises a tight race for the expected spring election where Carney will try to shake unpopular policies from Trudeau's time — some of which Carney had formerly endorsed — while addressing louder calls by Canadians for exporting energy to non-US countries. Both parties appear to like their chances, but the US-Canada trade war has meant Liberal ministers leading important areas of policy are dominating national media, leaving Poilievre searching for airtime. Poilievre warns voters that Carney is an out-of-touch elitist similar to his close ally Trudeau. Carney, who has held prominent roles in banking and on corporate boards, counters he has "actually worked in the private sector" while characterizing Poilievre as a lifelong politician. But Carney still knows he must distance himself from Trudeau. He began that process last week by using his power to eliminate the consumer carbon tax , beating Poilievre — who has been calling for this for years — to the punch. Diversifying trade, inter-provincially and internationally, is top of mind for both leaders, but the Liberals still seem reluctant to talk about oil pipelines, aside from the recently expanded and federally-owned 890,000 b/d Trans Mountain system. The system has provided flexibility for crude exporters looking to bypass the US and is now seen in a new light by many outside of the industry amid the trade war. Canada will be a superpower in "both conventional and clean energies" by creating new trade corridors with "reliable trade partners", Carney said on 14 March. But the country's largest oil producing provinces have their reservations. "Mark Carney is responsible for net zero banking," Alberta premier Danielle Smith said last week at the CERAWeek by S&P Global conference in Houston, Texas. "He's been on a war path against the energy industry his entire career." Saskatchewan premier Scott Moe meanwhile urged Carney to cancel this week's visit to Europe, his first international trip as prime minister, and instead prioritize escalating trade wars with both the US and China. "There are higher stakes at play here," Moe said. "We don't have a trade war with the European Union today." By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Energean-Carlyle gas assets deal under threat


25/03/17
25/03/17

Energean-Carlyle gas assets deal under threat

London, 17 March (Argus) — Greek independent Energean has said a deal to sell its gas assets in Egypt, Italy and Croatia to US private equity fund Carlyle may collapse owing to incomplete government approvals. Carlyle has still not received certain regulatory approvals from Italy and Egypt and has only three days left do so under the terms of the original agreement, Energean said. Energean said it has been unable to agree with Carlyle to extend the deadline beyond 20 March. Carlyle had agreed to pay up to $945mn for the assets , which it expects to produce 47,000 b/d of oil equivalent. The collapse of the deal would throw into doubt Carlyle's plan to set up a Mediterranean-focused exploration and production company led by ex-BP chief executive Tony Hayward. For Energean, the deal was set to help pay down debt and focus its resources on Israel and Morocco. The company said it is still committed to closing the transaction. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German gasoil demand rises but remains weak


25/03/17
25/03/17

German gasoil demand rises but remains weak

Hamburg, 17 March (Argus) — Wholesale diesel and heating oil sales in Germany continue to rise this year and supply is ample, particularly along the Rhine river. But demand remains weak compared with this time last year making imports uneconomical. Diesel demand is rising seasonally because of warmer temperatures and an associated uptick in agriculture and construction activity. Heating oil demand is being boosted by falling prices, which are as low as they were in December even with the increased German greenhouse gas (GHG) reduction quota and CO2 levy in place since the turn of the year. In the Rhine areas of western and southwestern Germany, the price of heating oil and diesel is lower than it is in northern, eastern and the southeastern Bavaria regions. This suggests that, partly because of ample refinery production in the west, available product exceeds current demand. Low Rhine water levels since the beginning of March, which reduce barge loadings upstream from Kaub, have not led to shortages. Another indication of low import demand is that freight rates have risen only slightly despite the low water levels and some canal closures. Argus ' calculations show spot imports from the Amsterdam-Rotterdam-Antwerp (ARA) hub along the Rhine would currently be loss-making. Maintenance work at the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery north of Munich, which started in early March, is leading to the highest regional prices in Germany. Traded spot volumes are correspondingly low. Gasoil imports by sea cargo into northern Germany are at their lowest level in at least two years. This could contribute to the price in northern and eastern Germany being somewhat higher than in the west and southwest. German diesel demand in 2025 remains below average in a multi-year comparison. The main reason for this is declining industrial production and a resulting decrease in freight activity. The German truck toll index fell to its lowest February value in eight years. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump actions fuel trading uncertainty


25/03/17
25/03/17

Trump actions fuel trading uncertainty

Boca Raton, 17 March (Argus) — President Donald Trump's unpredictable actions on tariffs, foreign affairs and the economy are creating volatility in futures markets at a time of increased concerns about the stability of investments made in the US. Trump has roiled global markets by announcing — and sometimes retracting the same day — tariffs on Canada, Mexico, China and other trading partners without offering a clear explanation of what outcome he hopes to achieve. The Chicago Board Options Exchange's VIX volatility index, which uses options trades to track the likelihood of major stock market swings, has nearly doubled since Trump took office and hit a seven-month high last week. The pace and breadth of Trump's agenda are "surprising even his most ardent supporters" and resulted in markets having "mixed feelings" over his policies, Futures Industry Association president Walt Lukken said on 10 March at the International Futures Industry Conference in Boca Raton, Florida. According to a recent survey, the industry group's members identified tariffs as the top policy that could negatively affect markets, Lukken said. Trump's oft-stated desire to annex Greenland and Canada and his willingness to allow carmaker Tesla's chief executive, Elon Musk, to exert vast power in his administration without a clear conflict-of-interest policy have helped rattle investor confidence, European exchange Euronext chief executive Stephane Boujnah said on the sidelines of the conference. US assets could start trading at a discount because of concerns over the rule of law and an "oligarch risk" that usually exists in emerging markets, he said. "One of the features of the emerging market is that you invest, you own something, until the guy with gold who is close to the ruler wants it too," Boujnah said. Traders who in the past might have stayed away from markets during periods of volatility no longer have the "luxury to do that in the world that we live in today", CME Group chief executive Terrence Duffy said. "Globally, it's not going to go away, so it's something we all need to deal with," Duffy said. CME reported record trading volumes for natural gas futures and options in January and February, which company executives have attributed in part to years of growing US energy exports. "As the US continues to both produce and export crude and natural gas at record quantities, putting US physical products on the market, customers are coming to the main market to hedge that exposure," CME commodities global head Derek Sammann said on the sidelines of the conference. Double-edged sword Higher volatility can benefit exchanges, trading platforms and traders because their revenue is often tied to trading volumes. But too much volatility in markets can cause some traders to sit on the sidelines, resulting in increased price spreads between buyers and sellers, trading platform Trading Technologies executive vice-president of futures and options Alun Green said. "We're still in a well-established, well-worked volatile market, but I think that there are some areas where people are not quite as willing to go in and take risks," Green said. Trump's push for an across-the-board cut to regulations and his attempt to wrest control of the independent federal agencies that oversee financial markets could end up causing problems in markets if they eventually result in a market crash, according to some regulators. "I do fear sometimes when we whipsaw too much, that then things can get deregulated too much, and then we create some amount of risk that we then can't handle," US commodities regulator CFTC member Christy Goldsmith Romero, a Democratic appointee, said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US oil chiefs wary of Trump price push


25/03/17
25/03/17

US oil chiefs wary of Trump price push

New York, 17 March (Argus) — US oil chiefs have offered President Donald Trump their unequivocal backing for restarting the conversation around energy policy and climate change in their favour, but his push for lower oil prices is creating misgivings. Energy secretary Chris Wright told reporters at the CERAWeek by S&P Global conference in Houston last week that the administration's push for lower oil prices has no specific target level, but White House officials, including trade adviser Peter Navarro, have cited $50/bl as a preferred level that would help to bring down inflation. A decline to that level would have far-reaching repercussions for the shale patch and lead to lower production in the top-performing Permian basin, according to industry veteran Scott Sheffield. "The cash breakeven for the majors and independents is $50-55/bl including dividends," said Sheffield, one of the pioneers of the shale revolution in the Permian basin that turned the US into the world's biggest producer. "So at $50/bl oil, there's no free cash flow, there's no growth." Wright attempted to square the circle between Trump's call for lower crude prices and higher crude production at the same time, arguing that both goals could be achieved by removing barriers and developing more infrastructure under a strategy of "Build, baby, build". Executives from the US and European majors talked up prospects in the offshore Gulf of Mexico, which is enjoying a resurgence in interest as pioneering technology opens up previously inaccessible resources. But the industry needs to work with the administration to explain the unintended consequences of its tariff policies, pipe manufacturer Tenaris said, as they affect equipment used for deepwater development. In the shale, with most public operators pledging to keep spending down this year and growth to a minimum, few have thus far shown any appetite to open the floodgates. US major Chevron might forecast double-digit output growth from its Permian operations this year, but it is slowing its spending. "Chasing growth for growth's sake has not proven to be particularly successful for our industry," chief executive Mike Wirth said. "And so we're moving towards a plateau that will open up the free cash flow generation and then sustain that for a long period of time." Tech flows Consolidation has helped to improve financial performance and efficiency of the larger operators now dominating the Permian, giving them the ability to drive technology gains and improve recovery rates, according to ExxonMobil's new head of oil and gas production, Dan Ammann. "When you have a position like ours — with continuous acreage — it allows you to do things that others are unable to do, like very long laterals," he told the conference. "Today we are recovering 6-8pc of the total resource, so the ability to unlock increased recovery of that through technology is a great way to grow production." Occidental Petroleum's chief executive, Vicki Hollub , is advocating the use of enhanced oil recovery techniques with CO2 pulled in by direct air capture facilities — which remove CO2 from the atmosphere — like the projects Occidental is developing. Pilot tests in the Midland basin suggest the company could double recovery rates using this technique for shale, Hollub said. And even though growth in shale output looks set to reach a plateau by the end of the decade, industry leaders voiced optimism that its decline will be slow and future drilling breakthroughs, possibly driven by artificial intelligence, could yet prolong its lifespan. "Never bet against this industry in terms of technology," ConocoPhillips' chief executive, Ryan Lance, warned. "It will always figure out a way to get more resource out of the rock." By Stephen Cunningham US tight oil production Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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