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US Banned in China, Internet Still Awaits a Verdict
S. Crude oil prices have been rallying since June, and the gain has been driven by falling storage and the potential for crude exports. Crude export capacity has grown rapidly, as more terminals in the United States are able to load and ship oil. These gains have not yet been realized by exporters, however, as the contract volumes remain below US commercial traders’ expectations. Further, a daily average of just over 300,000 barrels of crude oil has been exported so far this month, far below an average of 1.1 million barrels per day (b/d) in the first half of 2017.
Indeed, the full potential of this export surge has not yet been realized. Crude oil prices have been supported by a combination of factors: a technical recovery in US crude oil inventory levels (which have fallen by more than 10 percent since early June); record-high domestic crude production, both from the Permian and Bakken shale plays; robust commercial demand for crude oil in Asia; and US-China trade tensions that have tempered the strength of the US dollar, driving up the US dollar’s value relative to currencies in oil-importing countries.
US crude oil exports have generated little discussion until recently, in large part because the President of the United States has been the only president to not approve any new crude export terminals. Several lawmakers in the House of Representatives have introduced bills to allow new export terminals, but the bills have not made it out of the committee stage yet. The lack of a White House position on the issue is creating a vacuum on this controversial policy topic.
The Administration and the Department of Energy (DOE) are separately working to refine the export process and to document the progress of the various export expansion projects. DOE’s proposed executive order on the matter could be issued in the next week. The agency is seeking to develop a “road map” to assess the environmental impacts of the various expansion projects, complete all the necessary studies of the proposed facilities, and draft a National Environmental Policy Act (NEPA) impact statement. The NEPA statement would detail potential impacts to wetlands, birds, endangered species, endangered or threatened species, public health, and local economies from the expansion projects.
The DOE has not yet issued a final statement regarding the export expansion, despite a July 30, 2017 report from the Government Accountability Office (GAO) that recommended that the White House complete the NEPA 0b46394aab
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