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Page added on June 25, 2017

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Trump Calls for U.S. ‘Dominance’ in Global Energy Production

Public Policy

Donald Trump will tout surging U.S. exports of oil and natural gas during a week of events aimed at highlighting the country’s growing energy dominance.

The president also plans to emphasize that after decades of relying on foreign energy supplies, the U.S. is on the brink of becoming a net exporter of oil, gas, coal and other energy resources.

As with previous White House policy-themed weeks, such as a recent one focusing on infrastructure, the framing is designed to draw attention to Trump’s domestic priorities and away from more politically treacherous matters such as multiple investigations into Russian interference in the 2016 election.

With “Energy Week,” Trump is returning to familiar territory — and to the coal, oil, and gas industries on which he’s already lavished attention. Trump’s first major policy speech on the campaign trail, delivered in the oil drilling hotbed of North Dakota in 2016, focused on his plans for unleashing domestic energy production. The issue has also been a major focus during Trump’s first five months in office, as he set in motion the reversal of an array of Obama-era policies that discourage both the production and consumption of fossil fuels.

Plans for the week were described by senior White House officials speaking on condition of anonymity because the details hadn’t yet been formally announced.

Exports Equal Influence

Trump is set to deliver a speech at the Energy Department on Thursday focused almost entirely on energy exports — describing how the foreign sale of U.S. natural gas, oil and coal helps strengthen the country’s influence globally, bolster international alliances, and help stabilize global markets. Energy Secretary Rick Perry may touch on similar themes when he speaks Tuesday with analysts and executives at the U.S. Energy Information Administration conference in Washington.

“The fact that we’re no longer in the age of energy scarcity — that we’re in the age of energy abundance — positions the United States in a totally different place,” said Dave Banks, a special assistant to the president for international energy. “This gives access to affordable, reliable energy in the United States, and gives the U.S. a major competitive advantage.”

The focus on exports dovetails with Trump’s policy priorities, including improving the balance of trade, rebuilding heavy manufacturing and modernizing infrastructure, said Benjamin Salisbury, a senior energy and natural resources analyst with FBR & Co. The Trump administration seems to appreciate the synergy between extractive industries and manufacturing, Salisbury said, with cheap energy powering factories that are in turn churning out the equipment used to produce and export those resources.

Crude Ban Lifted

With U.S. oil production booming, former President Barack Obama signed a law lifting a decades-old ban on most crude exports in December 2015. Since then, the U.S. has exported more than 157 million barrels of crude to countries other than Canada, which had been exempted from the export ban.

The federal government has also authorized 21 billion cubic feet a day of natural gas to be liquefied and sent to countries that don’t have free trade agreements with the U.S. Since starting up last year, Cheniere Energy Inc.’s Sabine Pass terminal in Louisiana — the first major facility sending shale gas overseas — has shipped more than 100 cargoes of LNG to countries including Mexico, China and Turkey.

Trump is set to talk about opportunities for growth, including in sales of coal to Europe and Asia. A recent increase in the production of metallurgical coal used in steel manufacturing has helped East Coast terminals ship more of the resource overseas.

Wind, Solar, Nuclear

And the president is expected to describe openings for other energy exports, including U.S. technology that harnesses power from the wind and sun, and a new generation of advanced and modular nuclear reactors. Some nuclear power advocates have argued that the U.S. government process of licensing advanced reactor designs is so lengthy that it discourages investment.

The administration could go further to expand opportunities for using U.S. energy abroad by seeking to undo an Obama-era ban on the Export-Import Bank financing coal plants overseas. That could have special political resonance with coal miners who helped propel Trump to victory with wins in Pennsylvania, West Virginia and other states that have seen jobs tied to the fossil fuel decline.

The Trump administration has begun reversing a slew of regulations and policies that have limited energy development or made it more expensive, such as by ending a moratorium blocking new coal leases on federal land, and overturning a rule governing coal mining pollution in streams.

The president has ordered agencies to remove regulatory barriers to producing domestic energy resources, kicking off a broad government-wide review. Even as that analysis continues, the Interior Department has begun repeals or revisions of Obama-era mandates governing hydraulic fracturing and discouraging methane leaks from oil wells. A White House office is also vetting a proposal to repeal the Clean Power Plan, the Obama administration rule forcing states to slash greenhouse gas emissions from electricity production. And the Trump administration is considering more auctions of oil and gas leases in the Arctic and Atlantic oceans.

Coal Plants

“It’s about utilizing our abundance of resources at home to create jobs and grow the economy, and at the same time use those to strengthen America’s leadership and influence abroad,” said Michael Catanzaro, a special assistant to the president on domestic energy.

Ironically, some of Trump’s policies could exacerbate the market challenges facing oil, gas and coal, by spurring more domestic production at a time when a supply glut is already suppressing prices.

The U.S. is on track to produce 10 million barrels of oil per day on average next year, according to a forecast from the Energy Information Administration — a milestone that would shatter a record set in 1970.

‘Dominance’ Sought

Trump’s theme of “energy dominance” marks an evolution. For years, the catch phrase of choice has been “energy independence,” as politicians and industry officials sought to highlight how a new era of abundance was helping the U.S. wean itself from foreign sources of oil and natural gas.

That was in turn a dramatic change from the 1970s, when former President Jimmy Carter turned down the White House thermostats and used a televised address in February 1977 to urge consumers to conserve energy amid a permanent “shortage.” After that, federal energy policy became rooted in the view that oil and gas were in short supply.

“Trump is reorienting our national rhetoric toward ‘dominance,’” said Kevin Book, analyst with ClearView Energy Partners LLC. “Captives crave independence; competitors strive to dominate. It’s a shift from getting by to getting ahead.”

bloomberg



24 Comments on "Trump Calls for U.S. ‘Dominance’ in Global Energy Production"

  1. onlooker on Sun, 25th Jun 2017 4:38 pm 

    http://www.chron.com/business/energy/article/The-party-is-over-for-investors-in-U-S-shale-11242266.php
    Wall Street appears to have lost its taste for the resurgent U.S. shale industry as oil prices tumble and energy share prices fall.

    Oil companies have only raised $3 million this month through selling new shares to investors, a dramatic drop in the public equity offerings that have helped fuel the return of drilling rigs across the nation this year.

    It’s a stark shift in investor sentiment after last month, when producers like Kosmos Energy and RSP Permian collected a combined $1 billion from stock-market investors. That was before U.S. oil prices took a month-long tumble of around 20 percent to $43.15 a barrel on Friday.

    Some investor groups have said “they had little-to-no interest in providing a second lifeline to the industry,” Houston investment bank Tudor, Pickering, Holt & Co. said in a note to clients on Friday.

  2. makati1 on Sun, 25th Jun 2017 5:25 pm 

    Trump can call all he wants, but it ain’t gonna happen. Bankruptcy and 3rd world status is in America’s future. Or radioactive glaze. LMAO

  3. MASTERMIND on Sun, 25th Jun 2017 5:28 pm 

    This despite the uncomfortable fact that the US is currently the world’s biggest importer of crude oil. (Oops)

    https://en.wikipedia.org/w…/List_of_countries_by_oil_imports

    And the US has imported on average 47% of its oil for 2017. (Oops again)

    https://www.eia.gov/petroleum/supply/weekly/

  4. Cloggie on Sun, 25th Jun 2017 6:01 pm 

    US fossil against European renewable.

    May the best party… um… dominate.

  5. onlooker on Sun, 25th Jun 2017 6:16 pm 

    Fuck US dominance
    http://www.globalresearch.ca/us-has-killed-more-than-20-million-people-in-37-victim-nations-since-world-war-ii/5492051
    US Has Killed More Than 20 Million People in 37 “Victim Nations” Since World War II

  6. bobinget on Sun, 25th Jun 2017 6:44 pm 

    Is this the start of a ‘Civil’ War?

    Venezuelan Opposition Protesters Attack Air Base And Oil Firm
    VENEZUELAN opposition violence continued over the weekend as President Nicolas Maduro claimed that a coup plot against his government had been foiled.
    On Saturday, supporters of the opposition Democratic Unity Roundtable (Mud) broke down the fence at the Francisco Miranda air base in Caracas, clashing with troops who drove them back with tear gas.

    National oil firm PDVSA facilities in the district of Caracas were also attacked, with four buses and an ambulance torched, law enforcement officials said yesterday.

    Mr Maduro also said on Saturday that an “oligarchic imperialist coup” planned against Venezuela last week had been defeated.

    He claimed that the plan consisted of multiple stages including carrying out more acts of violence to provoke deaths and the betrayal of a group of soldiers who called for a coup in order to justify foreign intervention.”

    https://www.mercenaries.co.uk/a-0c3b-Venezuelan-opposition-protesters-attack-air-base-and-oil-firm
    Poster’s note:

    It my GUESS mind you: any civil war in Venezuela will bring on a US, Chinese and Russia intervention.
    Interventionists, loyalists, will try to hire foreign
    fighters in Africa, Cuba etc.

    As PoO rises, China will demand, in exchange for
    additional help for the Maduro government, payments in crude as agreed on. (250,000 B p/d)

    At this point President Maduro might agree to anything from Cubans, Russian, Chinese allies.

  7. onlooker on Sun, 25th Jun 2017 6:47 pm 

    Yes the stakes are the highest for the people and govt of Venezuela

  8. bobinget on Sun, 25th Jun 2017 6:55 pm 

    On message:

    Tesla has a greater market value than GM.
    GM sold over a million units last year, Tesla 67,000.

    Everything you need to know about the stock market and the future of ICE is all wrapped up in those 18 words.

    While peak demand won’t arrive for years, stock markets are all about futures.

    http://www.npr.org/2017/06/24/533798430/alaskas-40-years-of-oil-riches-almost-never-was

  9. dave thompson on Sun, 25th Jun 2017 7:08 pm 

    Trump likes goofy posturing more then being an effective commander in chief. The out come is hard to tell. At this point he is mostly coming across as a laughing stock.

  10. dissident on Sun, 25th Jun 2017 8:01 pm 

    People talk about electric cars as if there are so many of them on the road and they are affordable. Put the crack pipe down. The car makers are gouging even when it comes to hybrids. Both plug in electrics and hybrids are strictly low volume, boutique products. As of now they have no impact on the global oil demand various inane pundit drivel notwithstanding.

  11. Apneaman on Sun, 25th Jun 2017 8:59 pm 

    “Cancer Week”

  12. TommyTommyWantsHisMommy on Sun, 25th Jun 2017 9:09 pm 

    Trumps knows more then the OPEC…he’s smarter then all the sheiks combined. Trump is the best at oil. Trump will increase production by tweeting. To be fair most of the morons who run for president claim they are going to make usa energy independent. Not seeing that happening unless the economy collapses and no one has a job.

  13. Apneaman on Sun, 25th Jun 2017 9:24 pm 

    Trump is a reality contrarian just like Obama was. Tell them what they want to hear. There are millions of liberals who believe in a total fictional “environmental legacy” Obama left when in fact US oil had it’s best ever 8 year run under him and most cancer industries did just fine with him as the POTUS – BAU.

    My favorite ‘tell em what they want to hear’ example is from last week when Trump reassured the islanders whose Island is sinking due to a number of factors including SLR, not to worry. Thanks daddy.

    Trump to Mayor of ‘Drowning’ Island: Don’t Worry About Sea Level Rise

    “rump thanked the mayor and the entire island of Tangier, where he received 87 percent of the votes, for their support. Then the conversation turned to the island’s plight.

    “He said we shouldn’t worry about rising sea levels,” Eskridge said. “He said that ‘your island has been there for hundreds of years, and I believe your island will be there for hundreds more.’”

    Eskridge wasn’t offended. In fact, he agreed that rising sea levels aren’t a problem for Tangier.

    “Like the president, I’m not concerned about sea level rise,” he said. “I’m on the water daily, and I just don’t see it.””

    http://gizmodo.com/trump-to-mayor-of-drowning-island-dont-worry-about-sea-1796140112

    I laughed so fucking hard when I read that I had tears and got a cramp. You can’t make that kinda shit up.

    https://www.youtube.com/watch?v=qJh6EQ5gv7g

  14. Apneaman on Sun, 25th Jun 2017 9:33 pm 

    Trump, other politicians and guys like clog – spot the fallacy.

    Argument by Repetition

    argumentum ad nauseam

    (also known as: argument from nagging, proof by assertion)

    Description: Repeating an argument or a premise over and over again in place of better supporting evidence.

    https://www.logicallyfallacious.com/tools/lp/Bo/LogicalFallacies/49/Argument-by-Repetition

  15. makati1 on Sun, 25th Jun 2017 9:36 pm 

    While intelligence may still exist in America, but education doesn’t. Like owning a Maserati and no gasoline. Thinking is no longer required, just feeling. Keep them Afghan poppy farms poppin’ and the juice flowing to America.

  16. Cloggie on Sun, 25th Jun 2017 9:48 pm 

    US deep state and guys like apneaman:

    Argument by kosher deception

    Repeating lies over and over again.

  17. makati1 on Sun, 25th Jun 2017 10:09 pm 

    After all, the whole idea of America derives from the conviction that some people (us) deserve more than others (all those who are not us). It’s God’s will — so at least the great majority of Americans have believed since the Pilgrims set up shop just about 400 years ago. … The good, steady jobs once implicitly reserved for us — lunch pail stuff, yes, but enough to keep food in the family larder — are increasingly hard to come by. As those jobs have disappeared, so too have the ancillary benefits they conferred, self-respect not least among them. … It is hardly implausible that Trump’s assigned role in history will be once and for all to ring down the curtain on our specious present, demonstrating definitively just how bankrupt all the triumphalist hokum of the past quarter-century — the history that served “for the time being” — has become.”

    http://www.tomdispatch.com/post/176299/tomgram%3A_andrew_bacevich%2C_%22there_will_be_hell_to_pay%22/#more

    Nuff said.

  18. MASTERMIND on Sun, 25th Jun 2017 10:45 pm 

    We Promise an Oil Independent America

    https://www.youtube.com/watch?v=RNfZeh6oK-c

  19. ____________________________________________ on Sun, 25th Jun 2017 11:25 pm 

    In other news: apneafag calls for global anal retention to stop global worming and kenz3000 calls for vaginal restriction in order to make anal babies.

  20. ____________________________________________ on Sun, 25th Jun 2017 11:27 pm 

    oh yeah and cloggie also clogged his ass not to let the worms out.

  21. rockman on Mon, 26th Jun 2017 7:47 am 

    “Since then, the U.S. has exported more than 157 million barrels of crude to countries other than Canada, which had been exempted from the export ban.”

    Reality check: Since President Obama cancelled the nonexistent oil exports “ban” the US has shipped 157 million bbls of oil to countries other then the exempted Canada. Prior to that date, just from 1980 to 2000, the US exported more then 800 MILLION BBLS OF OIL to countries other the Canada. In the year just prior to lifting the export “ban” the US shipped 160 million bbls overseas to countries other then Canada. And the 60 million bbls exported in the first full year (2016) after the “ban” was lifted doesn’t come close to the record yearly amount exported to countries other then Canada of 105 million bbls in 1980. Which was about 3 years after the “ban” law was passed. And this data is all DOCUMENTED by the same govt that has supposedly banned the export of US oil:

    https://www.eia.gov/dnav/pet/pet_move_expc_a_EPC0_EEX_mbbl_a.htm

    Of course the oil exports pale in comparison to the amount of refinery products exported by the US in the 10 years prior to the lifting of the “ban” made from more 8 BILLION BBLS OF OIL in the US. In fact in 2015, the year prior to lifting the ban, we exported products made from 1.56 BILLION BBLS of oil in the US. And the largest share of that went to Mexico…252 million bbl. Again all DOCUMENTED by your friendly neighborhood US govt:

    https://www.eia.gov/dnav/pet/pet_move_expc_a_EPP0_EEX_mbbl_a.htm

    Obvious still being a big net oil IMPORTER the US can’t dominate any country in that regards. Except with Canada which requires about 125 million bbls per year of US condensate/light oil to blend with its very heavy Alberta oil sands production. But the US does dominate the global refined oil export market as the #1 source significantly exceeding even #2 Russia. The 5 countries that exported the highest dollar value worth of refined oil during 2016:

    United States: $64.1 billion (12.7% of total refined oil exports)

    Russia: $46 billion (9.1%)

    Netherlands: $37.4 billion (7.4%)

    Singapore: $36.1 billion (7.2%)

    India: $27 billion (5.3%)

    http://www.worldstopexports.com/refined-oil-exports-by-country/

    In essence the US is the. “Saudi Arabia” of exported refinery products. Consider the leverage President Trump could use against Mexico if he began restricting those product exports. And it wouldn’t hurt the revenue stream of US refineries as much as one might think: Mexico would have to replace imports from the global market putting upwards pressure on those prices. Additionally the US is easily the dominant exporter of NG to Mexico. President Trump could use a combination of restricted NG and refinery products to devastate the Mexican economy. Ahh, Mr. “I’m going to make them pay for the Wall” would never do that, would he? Not Mr. “NAFTA is a bad deal and we should kill it”, right?

    Coal: While the US is not a dominant exporter like Australia we are still the #4 global exporter. And despite the huge increase in coal exports from western govt leases during President Obama’s watch: in 2015, the US exported the most coal to the Netherlands—about 12.9 million short tons. This was about 17% of total U.S. coal exports in 2015. The ports in the Netherlands are major sources for transshipment of coal to other European nations. Therefore, a large portion of this volume may be ultimately consumed by other countries in Europe. Thus a tad of leverage on those EU importers of US coal.

    https://www.eia.gov/tools/faqs/faq.php?id=66&t=2

  22. Sissyfuss on Mon, 26th Jun 2017 9:18 am 

    President Extinction creating an asteroid. Limits to Growth? No such thing. The future’s so bright I gotta wear a radiation suit.

  23. rockman on Mon, 26th Jun 2017 4:24 pm 

    Depending on how one views “dominance” the US is already there on so many levels:

    #1 NG producer: almost 45% more the #2 Russia

    #1 NG consumer: almost twice as much as #2, the entire EU.

    #1 oil consumer: 80% more then #2 China

    #1 oil importing country: 50% more then #2 China

    #1 refining capacity: 40% more then #2 China

    #1 refinery products exports: 40% more then #2 Russia.

    #1 nuclear power generation: more then 200% greater then #2 France

    And lastly let’s not forget the US is consuming a hugely disproportionate share of global oil consumption on a per capita basis.

    One might not consider leading in various import and consumption stats as being “dominant” but remember what it essentially indicates: the financial dominance to outbid the other buyers. If President Trump’s goal is US energy dominance then I would say he’s already way more then half way there. LOL.

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