Fidelity bank banner Bayelsa State banner
Obama unleashes shale oil on the world

By News Express on 20/11/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,405


Surplus America’s shale oil will now be exported to the rest of the world, compounding the already glutted oil market and likely to dampen price recovery efforts being made by OPEC and non-OPEC countries.

The impact of the decision will be felt harshly by Nigeria, a major producer of light crude.  Shale oil is similar to Nigeria’s Brent crude.

The new development follows Obama administration bowing to months of pressure over a 40-year-old ban on exports of most domestic crude.

His administration has now taken two steps expected to unleash a wave of ultra-light shale oil onto global markets.

The Bureau of Industry and Security, or BIS, which regulates export controls, said it had granted permission to “some” companies to sell lightly treated condensate abroad. Condensate is a form of ultra-light crude.

Some two dozen energy companies had asked the agency for clarification on permissible exports earlier this year, but until Tuesday those requests had been put on indefinite hold.

The BIS also released guidance in the form of frequently asked questions, or FAQs, to explain what kind of oil was generally allowed under the ban, the first effort by the administration to clarify an issue that has caused confusion and consternation in energy markets for more than a year.

The two measures are clearest signs yet that the administration is ready to allow more of the booming U.S. shale oil production to be sold overseas, where drillers have said it can fetch a premium of $10 a barrel or more.

They follow a year of murky messages and widespread uncertainty over what is or is not allowed under a trade restriction that critics say is a relic of a bygone age, when oil was seen as scarce after the 1970s Arab oil embargo.

A domestic drilling boom of the past six years has transformed the United States into an energy powerhouse, boosting U.S. production by more than 50 percent and reversing decades of decline.

Output of very light oil has been especially strong, leading to a glut that threatens to overwhelm domestic demand. The constraints helped fuel bumper profits for refiners such as Valero Energy Corp and PBF Energy Inc, but angered drillers such as Hess Corp that say they were selling at a discount.

The US decision to allow export of shale oil coincided with the discovery of a vast field of shale rock in West Texas.

The finding could yield 20 billion barrels of oil, making it the largest source of shale oil the U.S. Geological Survey has ever assessed, agency officials said.

The Wolfcamp Shale geologic formation in the Midland area also contains an estimated 16 trillion cubic feet of natural gas and 1.6 billion barrels of natural gas liquids, the agency said in a release.

The discovery is nearly three times larger than the shale oil found in 2013 in the Bakken and Three Forks formations in the Dakotas and Montana, said Chris Schenk, a Denver-based research geologist for the agency. (NAN)

•Photo shows U.S. President Obama.

Source News Express

Posted 20/11/2016 05:27:59 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Army recruits 250 civilian JTF members

Bayelsa Polls: 400 groups endorse Dickson for re-election...

Marafa joins Zamfara governorship race

Police arraigns man for stealing motor batteries

Ebola strikes yet another Nigerian •Confimed cases now...

Army provides water point at Buni Yadi as...

It’s all over: Mother weeps as Gov. Chime’s...

Naira depreciates against dollar

Workers cripple Kogi State

Obiano commissions Onitsha Diagnostic Centre, declares free services...

Police arrests 46 AAUA students as protest over...

Minister’s convoy in ghastly accident; one dead, 20...

 

Latest News How Wike’s Chief Security Officer led Government House security officials to disrupt Rivers bye-election — APC Alarm bells as job and contract scams hit Niger Delta Nigeria’s democracy in danger: Savannah Centre Osun APC Guber: There was a conspiracy against me — Deputy Speaker, Lasun Third Mainland Bridge to be temporarily shut for 4 days – Lagos Govt 2019: Youths demand waiver, 50 per cent discount on nomination forms Man fights for his life in ICU after phone explodes while charging in bed NAF fighter jets bombard bandits’ hideouts in Zamfara Aregbesola’s free ride: Many stranded as travellers besiege railway terminal PDP wins Taraba's Takum 1 bye-electio NUJ condemns demolition of Ayefele’s radio station by Oyo Govt Ortom seeks global support for Benue IDPs

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (378,962 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (367,347 views) Shameless Genevieve Nnaji exposes breasts in public (297,110 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (242,440 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (223,431 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (217,547 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (193,158 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (175,307 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (159,976 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (158,828 views) Lagos plane crash: Journalist releases victims’ names (153,118 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (143,388 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (56) Business & Economy (3,462) Business Verdict (48) Columnists (912) Complaints & Requests (95) Enterprise & Opportunities (207) Entertainment (528) Features (640) Global Business Monitor (295) International (2,279) Interview (162) Live Commentary (28) Love Matters (135) News (38,143) Opinion (1,063) Pidgin (11) Politics (6,101) Religion (827) Sports (1,652) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Real Madrid vs Atletico Madrid 2-4 Highlights and Goals

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement