exports

Fri, 2014-04-18 10:28Steve Horn
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"Russia with Love": Alaska Gas Scandal is Out-of-Country, Not Out-of-State

A legal controversy — critics would say scandal — has erupted in Alaska's statehouse over the future of its natural gas bounty.

It's not so much an issue of the gas itself, but who gets to decide how it gets to market and where he or she resides.

The question of who owns Alaska's natural gas and where they're from, at least for now, has been off the table. More on that later.

At its core, the controversy centers around a public-private entity called the Alaska Gasline Development Corporation (AGDC) created on April 18, 2010 via House Bill 369 for the “purpose of planning, constructing, and financing in-state natural gas pipeline projects.” AGDC has a $400 million budget funded by taxpayers. 

AGDC was intially built to facilitate opening up the jointly-owned ExxonMobil-TransCanada Alaska Pipeline Project for business. That project was set to be both a liquefied natural gas (LNG) export pipeline coupled with a pipeline set to bring Alaskan gas to the Lower 48.    

Photo Credit: TransCanada

Things have changed drastically since 2010 in the U.S. gas market though, largely due to the hydraulic fracturing (“fracking”) boom. And with that, the Lower 48 segment of the Alaska Pipeline Project has become essentially obsolete.

Dreams of exporting massive amounts of Alaskan LNG to Asia, however, still remain. They were made much easier on April 14, when the Kenai LNG export facility received authorization to export gas from the U.S. Department of Energy.

Thu, 2013-09-26 05:00Sharon Kelly
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Shale Gas and Foreign Policy: A "Highly Uncertain" Gamble for America

The Obama administration has systematically ignored the environmental risks of fracking and on several occasions it has even suppressed science to pave the way for increased shale drilling, according to a recent report by the environmental group Earthworks. The report focuses on Karnes County, TX, in the heart of the Eagle Ford shale region, where state regulators found levels of airborne contaminants so high that inspectors evacuated themselves – but failed to fine the companies involved or warn residents living nearby.

From the regulators in Texas to the United States EPA, government agencies are running away from their own data showing that fracking pollution is harming communities,” said Jennifer Krill, Executive Director of Earthworks. “We are seeing a pattern from Karnes County TX to Dimock PA to Pavilion WY - where oil and gas is being produced, oil and gas impacts are being ignored.”

For the past several years the oil and gas industry has enticed Republicans and Democrats alike with promises that shale reserves can offer the U.S. renewed energy independence. The hope is that vast and newly-tapped supplies of domestic gas and oil will help shift the geopolitical balance, lessening American and European reliance on Russia and countries in the Middle East. This newly perceived leverage has even emerged recently as a bargaining chip in trade talks and negotiations with gas-importers like Japan.

The Obama administration has hailed the drilling boom, sending strong signals about its support for continued fracking. “The natural gas boom has led to cleaner power and greater energy independence,” President Obama said in his 2013 State of the Union address. “We need to encourage that.”

But banking on the continued shale boom is a major gamble, as productivity has already fallen in shale gas plays across the U.S.

Thu, 2012-05-03 12:01Ben Jervey
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Exporting Coal: Struggling U.S. Coal Industry Trying to Stay Relevant By Shipping Through the Northwest

coal train exporting coal pacific northwest

U.S. coal companies are facing some tricky math these days. Production levels have remained more or less the same since 2005, according to the Energy Information Agency (EIA), but during that time domestic consumption has dropped nearly 11 percent.

Where is all that extra coal going? Some is piling up at power plants, but increasingly, more and more of it is being shipped overseas.

The coal industry is hoping to accelerate that export trend, but their ability to keep delivering steady volumes of coal is entirely dependant on their ability to open up new export terminals at coastal ports around the country, particularly in the Pacific Northwest where the dirty rock could be more directly shipped to the burgeoning Asian markets.  

Still, aside from some regional coverage and some incredible work from organizations like the Sightline Institute and Climate Solutions, these Northwest export terminals aren’t getting nearly the amount of attention from environmentalists and climate activists as, say, tar sands pipelines.

This post will serve as a basic overview of the current state of coal production and exports, and what the industry hopes to accomplish in coming years.

Wed, 2012-01-04 18:36Brendan DeMelle
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API’s New ‘Vote 4 Energy’ Ad Campaign Is Thinly Veiled Election Year Bullying

American Petroleum Institute President Jack Gerard today announced the oil and gas industry’s latest election-year scare campaign to threaten the demise of the U.S. economy unless Big Oil gets its every wish in Washington. This year the wish list includes approval of the Keystone XL pipeline, expanded offshore drilling on both coasts, opening up the Arctic National Wildlife Refuge and more federal lands in the West to drilling, and smaller buffer zones between drilling operations and drinking water supplies.

What if Washington doesn’t comply by delivering Keystone XL and the rest of the wish list? Gerard, the oil industry’s chief bully, threatens “huge political consequences” for Barack Obama. 

You can almost set your watch to this industry’s tired plays on this front. If it’s January of a presidential election year, it must be time for the oil industry to threaten Washington politicians to ensure they continue to do the industry’s bidding. The threats are delivered in the form of outlandishly expensive advertising campaigns and punditry tours, aided by a captive media that serves its role as stenographer for the industry’s inflated jobs figures and misleading claims.

The API campaign is nothing more than a fresh skin on a very old and stale argument – that President ______ (insert current name) needs to continue opening up more of the nation’s lands, particularly public lands, for oil and gas drilling, OR ELSE ______(insert latest political talking point), in this case “jobs jobs jobs” will be lost (a bogus argument)

CNN notes the close correlation between API’s target states and some of the hottest states in the 2012 U.S. elections – hint: they’re the same.

Thu, 2011-12-01 14:43Steve Horn
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LNG Groundhog Day: Cheniere Energy Signs Yet Another Gas Export Deal on Gulf Coast

Credit: Oleksandr Kalinichenko / Shutterstock

Another day, another unconventional gas export deal signed. Nascent North American LNG (liquefied natural gas) export deals are happening so fast and furiously that it is hard to keep track of them all.

The latest: On November 21, Cheniere Energy Partners signed a 20-year LNG export deal with Gas Natural Fenosa, an energy company which operates primarily in Spain but also in such countries as Italy, Mexico, Colombia, Argentina, and Morocco. Cheniere will maintain the Sabine Pass LNG export terminal located off of Sabine Lake between Texas and Louisiana, which feeds into the Gulf of Mexico, while Gas Natural Fenosa will ship the gas to the global market.

Cheniere, which made waves when its CEO Charif Souki announced that his corporation's business model would center exclusively around LNG export terminals, also recently signed a 20-year export deal with BG Group, short for British Gas Group.

Like the recent export deal with BG Group, which involves carrying fracked unconventional gas from various shale basins around the United States via pipelines to the Sabine Pass LNG export terminal, the Gas Natural Fenosa deal also centers around the export of gas from Sabine Pass to the global market.

Wed, 2011-11-16 11:24Ben Jervey
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Senate Hearing Confirms Natural Gas Export Plans Will Raise Prices For Americans

Considering the rate at which natural gas resources are being developed, and the sudden push from industry to export the product, it might come as a surprise that the Senate’s Energy Committee hadn’t had a hearing on liquified natural gas (LNG) since 2005.

Last Tuesday, for the first time in six years, Senators brought the issue back to the Capitol spotlight, as they considered the impact of exporting LNG on domestic prices.

In order to export or import natural gas, companies can either transport it through pipelines, or ship it as liquefied natural gas (LNG). LNG is natural gas cooled to -260 degrees Fahrenheit, at which point the gas becomes a liquid. Back in 2006, LNG imports far outstripped exports, and industry used that trade deficit to push for a massive expansion of domestic drilling, relying heavily on the argument for American “energy security.”

Now that that expansion is well-underway, with the infamous Utica and Marcellus shales the frontier of rapid development, utilizing controversial fracking and horizontal drilling techniques, the industry is eager to start exporting LNG to international markets where the fuel fetches a much heftier price.

Fri, 2011-10-14 07:33Ben Jervey
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Dominion Seeks To Export Marcellus Shale Gas While Claiming Its Necessity for U.S. Energy Security

As energy companies scramble to develop the Marcellus Shale and other natural gas reserves locked up in shale formations, you’ll hear a lot about American “energy security” and reducing dependence on fossil fuel imports. You won’t hear a lot about companies’ plans to export the gas.

It’s becoming clear, however, that gas companies like Dominion Resources and Jordan Cove have big plans for exporting the natural gas that they’re rushing to frack.

First, some background. To export or import natural gas, companies can either transport it through pipelines, or ship it as liquefied natural gas (LNG). LNG is natural gas cooled to -260 degrees Fahrenheit, at which point the gas becomes a liquid.

Currently, the vast majority of natural gas exports from the United States travel through pipelines into Mexico and Canada. Of the 1,136,789 million cubic feet of natural gas exported from the United States in 2010, only 64,763 million cubic feet were exported as liquefied natural gas. In other words, only about 5 percent of natural gas exports currently leave our borders as LNG from coastal ports.


  

Fri, 2011-07-15 14:01Graham Readfearn
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King Coal Australia Plans to Price Carbon

Coal ships at Australia's Newcastle port

SO Australia’s carbon price cards are finally on the table.

From July next year, the Federal Government will look to price greenhouse gas emissions at $23 per tonne rising 2.5 per cent each year.

Then, in 2015, this is replaced by a cap-and-trade system with the price set by the market.

That’s the simple explanation. The devil is in the detail, of which there is an awful lot.

To make the plan politically acceptable, a complex array of exemptions, sweeteners, compensation measures and adjustments to the tax system have been negotiated.

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