Despite competitors shying from offshore investments, BP is calling for up to $17 billion in Gulf platform spending annually through 2021 with hopes of increasing production by 5% each year. "Our strategy is to take this investment that we spent so much money building and keep it full," said BP Gulf of Mexico Regional President Richard Morrison.
An American Petroleum Institute study predicted 2 million new jobs in the natural gas industry by 2040 and $1 billion in cost savings for American consumers from less expensive petrochemical product manufacturing and lower energy prices. "There's a lot of opportunities to use the feedstocks for further economic opportunity," said Stephanie Catarino Wissman, API-PA executive director.
Preliminary data suggesting a rise in US crude stockpiles caused oil prices to pull back sharply. The American Petroleum Institute reported that US crude inventories unexpectedly increased by 851,000 barrels in the week ending Friday, resulting in US West Texas Intermediate crude falling to $43.70 from $44.24.
The American Petroleum Institute is urging the Energy Department to be cautious in its study of current regulations and tax policies ordered by Energy Secretary Rick Perry. API said propping up coal and nuclear plants will not improve reliability.
US shale oil producers plan to revisit capital spending if prices spend several months below $45 a barrel. US oil prices on Tuesday closed at $44.24 per barrel, lower than highs near $53 in April, causing angst among shale oil producers with aims of generating enough cash flow to pay for higher capital spending.
In an effort to keep crude flowing, US pipeline operators are selling underused space at significant discounts, which is frustrating shippers. The pipeline companies are having a hard time keeping lines full after a two-year oil price slide.
The Trump administration says the US can have "energy dominance" worldwide by exporting oil, natural gas and other resources. The White House is hosting a series of events this week to discuss increasing US global influence.
South Korea is set to receive liquefied natural gas from the US for the first time as part of a 20-year sales and purchase agreement between US LNG exporter Cheniere Energy and Korea Gas that began over the weekend. Under the deal, signed in January 2012, Cheniere will supply about 10% of South Korea's total yearly demand.
Cheniere Energy unveiled plans to expand its Sabine Pass terminal in Louisiana with the acquisitions of additional acres and build more, potentially smaller liquefied natural gas plants even though the global market is awash in supply. "Our goal is to leverage the existing infrastructure to build whatever the next round requires," Cheniere Director, President and CEO Jack Fusco said.
The port of Corpus Christi in Texas is on track to become the primary exporting hub in the US as crude exporters increasingly favor it as an alternative to the congested Houston Ship Channel. Corpus Christi is in the midst of an expansion that could eventually increase its daily crude export capacity from 960,000 barrels now to 2.8 million barrels, which compares with Houston's current 1.7-million-barrel export capacity.
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