First Shore-Powered Oil Tanker Terminal Is Unveiled In Long Beach

This piece argues the US should not export crude oil and instead moderate production volumes in an effort to preserve the country’s natural resource endowment over the longer term. It also contends exports would increase domestic crude and product prices. “The real question for the United States is not about optimal trade policy or economic theory, but whether we want to extract the last drops of our oil endowment as quickly as possible by enabling the debt-fueled land rush that has brought us a gratifying, but temporary, bump in production, or whether we want to make it last as long as possible, knowing that two or three decades from now the world will be absolutely desperate for the stuff, with scarce exports and unimaginably high prices.” [SmartPlanet]

On the other hand, this editorial says exports could put downward pressure on international benchmark Brent prices, which could in turn decrease US gasoline prices. “Reported the Financial Times:  ‘Seth Kleinman, analyst at Citigroup, says Brent would weaken by $5 per barrel in the face of unfettered U.S. crude exports, taking as much as 24 cents per gallon off petrol prices.  Energy economist Philip Verleger outlines a more dramatic scenario, arguing in a note this week that removing export controls could make five million barrels per day of light, sweet crude available to the world market:  an increase of about 15-20 percent in the supply of that grade.  Other things being equal, he says, light crude prices could be driven down some 30 percent, or about $30.’” [Forbes]

Nigeria is facing natural gas supply shortages at several of its power plants, leaving the country’s current power generation output at roughly half of installed nameplate capacity. “About 80 per cent of the power plants, which are gas-fired, are deprived of regular gas supply. The Geregu, Omotosho and Olorunsogo plants with available capacities of 414MW, 126MW and 252MW could only generate 143MW, 81.2MW and 164.7MW, respectively due to gas constraints.” [The Punch]

 

 

Comments

  • scientist5

    Before we start talking export maybe we should have a surplus first in both reserves and production capacity. We have neither at this point, and increasing our capacity to meet our domestic needs is maybe only 60% of the way. If our economy improves it may be even less that 60%.