Europe to America: We Want Your Gas

Discussion in 'Europe and Russia' started by amoy, Jan 17, 2014.

  1. amoy

    amoy Senior Member Senior Member

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    Europe to America: We Want Your Gas - NationalJournal.com

    Nations are forming a coalition with the U.S. energy industry to lobby for more natural-gas exports.
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  3. amoy

    amoy Senior Member Senior Member

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    Republicans: Ukraine Crisis Builds Case for Natural Gas Exports, Keystone - NationalJournal.com

     
  4. amoy

    amoy Senior Member Senior Member

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    U.S. surprises oil market with sale from strategic reserve | Reuters

    (Reuters) - The United States will hold the first test sale of crude from its emergency oil stockpile since 1990, offering a modest 5 million barrels in what some observers saw as a subtle message to Russia from the Obama administration.

    The Energy Department said the test sale had been planned for months, timed to meet demand from refiners coming out of annual maintenance cycles. But oil traders noted that Russia's effort to take over the Crimea region from Ukraine has prompted calls for use of booming U.S. energy resources to relieve dependence on Russian natural gas by Europe and Ukraine.

    Oil prices dipped to their lowest levels in a month after news of the test sale, which closes in two days.

    Officials said the release would ensure that oil stored in vast salt caverns could still reach local refiners affected by recent changes in pipeline infrastructure.

    "Due to the recent dramatic increase in domestic crude oil production, significant changes in the system have occurred," department spokesman Bill Gibbons said. The test sale was needed to "appropriately assess the system's capabilities in the event of a disruption," he added.

    Surging U.S. shale oil production has upended the logistics of U.S. crude markets. Major pipelines that traditionally moved oil from the Gulf to the Midwest have reversed course, moving a glut of shale oil from places like North Dakota to points south.

    Analysts say President Barack Obama has been more willing than his predecessors to tap the strategic reserve, noting that he did so in 2011 as part of an international response to civil war in Libya. While that 2011 sale was an emergency release, the Energy Department has said the latest sale is a test of the reserve's operations.

    U.S. crude was down more than $2 to around $97 a barrel by midday.

    Many questioned whether the U.S. Strategic Petroleum Reserve (SPR) was large enough to send a meaningful political message to Russia, especially since U.S. law still bans most exports of U.S. crude oil. The SPR holds enough oil to cover U.S. crude oil imports for about 80 days.

    "It could be a message from Obama that says, ‘Russia, we can impact the price of oil if we want to.' But I think that's giving the administration too much credit at this stage," said Dominick Chirichella, senior partner at Energy Management Institute in New York.

    Republican lawmakers concerned about Crimea have stepped up calls for the administration to approve natural gas exports more quickly to pressure Moscow. But a dearth of U.S. terminals to export liquefied natural gas means significant exports are years away, limiting the immediate use of gas as a geopolitical tool.

    Chirichella said the U.S. test sale was small in the "whole scheme of things" and the International Energy Agency might be more able to send a signal to Russia, representing oil reserves for 28 countries including the United States and much of Europe.

    CHANGING LOGISTICS

    The administration said the focus of the sale was to test the stockpile's ability to respond to changing market logistics. The Energy Department will offer sour crude from its West Hackberry and Big Hill reserve sites on the U.S. Gulf coast. Bids are due March 14.

    While abundant light sweet crude supplies flood the U.S. market, Gulf coast refineries are actually better suited for heavier sour crude and still require imports from countries including Saudi Arabia and, occasionally, Russia.

    "It makes good sense to make sure that the ability ... to deliver oil to the market in a time of emergency has not been impaired by the rapid changes we have seen in the Gulf Coast crude transportation infrastructure," said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University and formerly a senior White House energy adviser.

    The latest sale comes at a time of growing internal debate over the future role of the SPR, given the unexpected surge in domestic crude output. One senior White House advisor has advocated allowing exports of SPR crude, to have a greater impact on global supplies and prices.
     
  5. amoy

    amoy Senior Member Senior Member

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    Fracking's Odd New Friend: Vladimir Putin - NationalJournal.com

     
  6. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    Europe's need will have to come from the usual countries that feed the world.

    Stand by for huge rise in prices!

    And stand by for the slowdown of industries and economies!

    And what will be real uncomfortable for the strategic balance that has been built up is that Russia will use this problem to its advantage, by weaning the third world with cheaper gas!

    The Cold War never ended, but now till come out in the open!

    Happy Days are here once again! ;) :sad:
     
    Last edited: Mar 19, 2014
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  8. amoy

    amoy Senior Member Senior Member

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    How Ukraine Will Turbocharge America's Energy Future - NationalJournal.com


    Not surprisingly, Republican leaders are already denouncing President Obama for being too mild in his response to Russian President Vladimir Putin's expansionist course in Ukraine and defiance of the West. What is much more likely to emerge as a bipartisan national strategy, especially in the long run, is a future that both Obama and Republicans have been touting: America's prospective role as an energy export superpower.

    Thanks to breakthroughs in the controversial technique of "fracking," or hydraulic fracturing, the United States recently passed Russia as the world's largest producer of natural gas. Similarly the United States is expected to overtake Saudi Arabia and Russia as the world's top oil producer by 2017, also because of new technologies, according to the International Energy Agency. The United States still possesses an astonishing total of about $128 trillion in "technically recoverable" oil and gas resources alone, amounting to eight times the national debt, says the Institute for Energy Research, a right-leaning nonprofit foundation in Washington.

    Unlocking a somewhat larger portion of those resources of oil and gas in an environmentally cautious way, while also launching a massive new investment program in green and other technologies, would strike directly at the heart of Putin's apparent strategy for resurrecting Russia, some experts say. It would also mark a distinct contrast from the personal sanctions applied so far against his top cronies, which appear not to have dissuaded Putin at all.

    The Russian leader has long believed that Russia's power lies in its oil and gas resources (he even wrote a paper on the subject as a graduate student in St. Petersburg), and he has not been shy about applying this as leverage against the former Soviet bloc countries on his periphery and against Western Europe, where the reluctance to sanction Moscow more severely is clearly linked to its dependence on Russia for more than a third of its oil and gas.

    Strikingly, Putin has appeared to become so reliant on the economic potential of energy that he has done relatively little to open up and modernize Russia's economy, despite what should have been a globally competitive tech sector stemming from the nation's history as a defense and scientific giant.

    In recent weeks, both conservative outlets such as The Wall Street Journal editorial page and prominent liberal platforms of opinion like The New York Times have suggested that the United States increase its natural-gas exports to help Western Europe and reduce Putin's leverage, especially over Ukraine, which before the standoff obtained about 90 percent of its natural gas from Russia. Some Republicans on Capitol Hill have also used the crisis to plug pet projects like the Keystone pipeline and press the Obama administration to license more natural-gas exports. Sen. Lisa Murkowski, R-Alaska, has called for lifting the ban on U.S. oil exports.

    In truth, there is probably not much the U.S. can do in the immediate future to shift the economic dependence for Europe dramatically; the necessary plants and facilities will take years to build. The more realistic question is longer term: whether such a strategy should become a kind of energy analogue to Cold War containment policy, in part to counter what now looks like a long-term Putin strategy toward reasserting Russian influence in the former Soviet sphere.

    America's rise to energy independence and exporter status would achieve the multiple aims of undermining the sources of Putin's power and influence, drawing Western Europe closer, keeping China from allying its own future too closely to Moscow's (despite persistent wooing by Putin), and further freeing America of dependence on another region that has become increasingly fractious and undependable: the Arab world. The United States appears to be facing an era of enduring political instability in oil-producing countries like Iraq and Iran, and less and less dependable diplomatic relations with allies such as Saudi Arabia and Qatar in the aftermath of the Arab Spring.

    Such a strategy would also, not coincidentally, go a long way toward solving America's chronic debt problem, which has become a grim barometer of other countries' assessment of the United States' so-called decline as a superpower. And grasping hold of a new energy future is, almost uniquely, an issue that both parties seem now to agree on, despite the anxieties of the environmental lobby.

    "If we could tap into even a smidgen of that wealth, we would solve our fiscal problems," says James Pinkerton, a former official in the Reagan and George H.W. Bush administrations and fellow at the New America Foundation. "Now, with the prospect of a new Cold War, we might look at the strategic imperative of using that hydrocarbon power to deflate the Russians. It worked in the '80s for Reagan against the Soviets. It could work in the teens for the U.S. against Putin." Pinkerton adds that because of the "embedded reality of a lot of greens and green billionaires"—a powerful environmental lobby—any workable strategy would have to include investment in clean energy and carbon sequestration, turning climate-warming carbon into some sort of usable solid.

    During the 2012 presidential campaign, Mitt Romney unveiled an aggressive program to open up more oil and gas drilling on federal lands. Some Western Democrats in the Senate who have already been vocal in support of expanding energy exports say the last few weeks have revved up interest in revisiting the sticky issue of balancing environmental protection against resource development, and finding a way around objections to fracking and other controversial technologies. "The Crimea issue has definitely raised the issue's profile," says Jennifer Talhelm, spokeswoman for Sen. Tom Udall, D-N.M.

    Obama, even while touting America's future as an energy exporter, has been cautious in his approach, until now. But that may soon change too, especially as 2016 rolls around. Who has been among the strongest supporters of a new American geopolitical energy strategy in recent years? Former Secretary of State Hillary Clinton.
     
  9. amoy

    amoy Senior Member Senior Member

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    Competition is good, and so is a multi-polar world!

    Putin Expected to Sign China Gas Deal as Crisis Forces Hand - Bloomberg

    Vladimir Putin is more likely to sign a 30-year deal to supply pipeline gas to China next month after more than a decade of false starts because the crisis in Ukraine is forcing Russia to look for markets outside Europe.

    While Putin and President Xi Jinping will make the final decision in Beijing next month, Russia's need for new customers means it's pushing to complete a deal first mooted in 1997, a manager at gas-export monopoly OAO Gazprom (GAZP) and a government official said, asking not to be named because talks are ongoing. In China yesterday, Russia's deputy prime minister said he "hoped" a deal would be signed in May.

    The crisis in Ukraine has increased the importance of Russia's relationship with China, its largest trade partner outside the European Union and the only country in the United Nations Security Council not to censure its actions in Crimea. Until a China pipeline is built, Russia has few export markets for gas outside Europe, leaving it vulnerable to sanctions and competition from U.S. exports of shale gas.

    "This time, Russia really may close the China gas supply deal considering that it'll be more flexible on the price," Ildar Davletshin, an oil and gas analyst at Renaissance Capital, said by phone from Moscow. "China, too, needs this contract because the further use of coal is becoming unbearable in most developed parts of the country."

    Price Talks
    Gazprom Chief Executive Officer Alexey Miller met China National Petroleum Corp. Chairman Zhou Jiping in Beijing yesterday to discuss the terms of a deal. CNPC expects to sign a contract with Gazprom "as soon as possible" and talks on prices for supply from Siberia to China are in "active progress," the Chinese company said in a newsletter posted on its website today.

    They'll meet again in Moscow later this month before Putin travels to China on May 20, according to a statement from the Russian company.

    "We hope to conclude the contract in May," Deputy Prime Minister Arkady Dvorkovich said in Beijing yesterday after meeting Chinese Vice Premier Zhang Gaoli, according to Itar-Tass news wire. "The base price is the only problem to be solved."

    Gazprom shares rose as much as 1.6 percent to 134.4 rubles in Moscow and traded at 134.1 rubles at 12:04 p.m. local time.

    The gas-supply deal allowing the construction of the Power of Siberia pipeline across eastern Russia into China has foundered on price. To finance the $22 billion pipeline, Russia sought to match the rates it got for its gas in Europe, a level China hasn't been willing to pay.

    Miller said yesterday he hopes a contract will be in force by the end of the year, according to the statement. "We advanced in our talks on the gas price," he said.

    Siberian Fields
    Starting not earlier than end of 2018, Gazprom plans to supply as much as 38 billion cubic meters of gas to China, about 24 percent of the company's deliveries to Europe last year, which produced about $63 billion in export revenue, according to the company.

    Gazprom needs the equivalent of about $13.50 per million British thermal units to profitably finance the pipeline and the development of Siberian gas fields to feed it, a total outlay of $90 billion, Maxim Moshkov, an energy analyst at UBS AG in Moscow, said by e-mail. CNPC won't want to pay more than $11 at the border, a price Gazprom may be forced to meet, cutting into future earnings, Moshkov said.

    China will increase natural-gas consumption 11 percent to 186 billion cubic meters this year as imports advance 19 percent, according to CNPC Economics and Technology Research Institute report, cited by China Daily. Gas consumption is likely to be boosted further by a drive to close coal-fired power stations to curb pollution. China's premier Li Keqiang said last month the country will "declare war" on smog.
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  10. Sea Eagle

    Sea Eagle Senior Member Senior Member

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    Europe to Amerika : We want your Gas.

    Amerika to Europe : Go and attack some gas rich country in the name of democracy :pound:
     
    rock127 likes this.
  11. pmaitra

    pmaitra Moderator Moderator

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    The US is in North America. Europe is in, well, Eurasia.

    Go ahead and defy geography, buys. I want to see how this pans out in the next 10 years.
     
  12. amoy

    amoy Senior Member Senior Member

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    Energy politics :namaste:


    Poland's Reliance on Russian Natural Gas Eases - WSJ.com
    April 1, 2014 9:13 a.m. ET

    WARSAW—Poland's reliance on Russian natural gas eased significantly on Tuesday after Germany completed an investment allowing Poland to meet the bulk of its consumption needs should there be disruptions to its gas imports from Russia.

    Europe's reliance on energy supplies from Russia have returned to the spotlight following the Russia-Ukraine conflict over the Ukrainian breakaway territory of Crimea.

    Poland's state-owned operator Gaz System SA said on Tuesday Germany's Gascade opened an upgraded pumping station in Mallow in eastern Germany, a result of a deal signed in 2012, that will allow Poland to receive natural gas from Germany through a reverse flow of the resource on the Polish section of the Yamal-Europe pipeline that connects Siberian gas fields with Europe. The section is owned by Russia's OAO Gazprom.
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    In case of a complete halt of deliveries from Russia, Poland will now be able to import up to 5.5 billion cubic meters of natural gas a year from Germany—more than 60% of what it gets from OAO Gazprom every year. During normal operations the new investment allows for imports of up to 2.3 billion cubic meters and companies can already start booking these capacities.

    In response to the Russian annexation of the Black Sea peninsula, some officials, including Poland's Prime Minister Donald Tusk, have said the EU may have adopted harsher sanctions on the Kremlin were it not for the many lucrative business ties that EU nations have with Moscow.

    After decades spent in the Soviet bloc, where infrastructure was tightly integrated with that of the Soviet Union, Warsaw still gets most of its natural gas from Russia. Since the collapse of communist in Europe, Poland has pushed to diversify its supply routes and has awarded shale gas exploration licenses. It has also built new pipeline infrastructure connecting its infrastructure with that of western and southern neighbors.

    Gas delivered from Russia under a long term take-or-pay contract by Gazprom covers around 60% of the 15 billion cubic meters Poland uses annually, mainly at chemical and fuel plants. The rest is produced locally and imported from other countries.

    The new pumping station mitigates the risk that industrial customers will face supply disruptions as they did several years ago amid spats over pricing and payments between Russia and Ukraine, when transit through Ukraine was reduced.
     
    Last edited: Apr 14, 2014
  13. rock127

    rock127 Maulana Rockullah Senior Member

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    But Urooooopeans cant do it alone so asking US to invade on their behalf as usual.
     

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