World Bulletin/News Desk
The U.S. shale gas boom should be used to counteract Russian influence in Europe and on Ukraine, a key senator said on Tuesday, as lawmakers weighed changes to export policy to take into account a shifting geopolitical landscape.
European worries about the security of energy supplies have skyrocketed since Russian forces seized control of the Crimean peninsula from Ukraine this month. Moscow has in years past cut gas supplies during regional disputes.
The Ukrainian crisis has led to intense scrutiny of export rules for U.S. liquefied natural gas. The regulations require the Department of Energy to grant permission for natural gas exports to all but a handful of countries, such as Canada, which have free trade agreements with the United States.
Hearings before the Senate and House energy committees on Tuesday focused on whether speeding up the Obama administration's review of two dozen pending export applications could help U.S. allies reduce their dependence on Russia for natural gas.
The export projects, once approved, would take several years to construct and actually ship gas.
"The last thing (Russian President Vladimir) Putin and his cronies want is competition from the United States of America in the energy race," Senate Energy Committee Chairwoman Mary Landrieu said at a hearing on Tuesday.
The hearing was the Louisiana Democrat's first as head of the Senate panel, after taking over in February from Oregon's Ron Wyden.
The session came a day after the Energy Department's sixth approval of LNG exports from a U.S. plant in the past 10 months.
The DOE has kept up a steady pace of approvals since May, and it was unclear whether recent rhetoric about the Ukrainian situation was affecting its timetable.
Opponents of unlimited U.S. gas exports have argued that shipping too much could cause prices to rise in the United States, hampering economic growth.
The House Energy Committee considered a measure Tuesday, known as H.R. 6, that would allow U.S. natural gas exports to be made without government approval to any of the more than 159 countries that belong to the World Trade Organization.
While the administration has not officially taken a position on the measure, Deputy Assistant Secretary for Oil and Natural Gas Paula Gant told lawmakers the bill would essentially eliminate the need for Energy Department review.
She stressed that the department is considering applications as quickly as possible, even though export boosters are clamoring for more action.
"DOE understands the significance of this issue, as well as the importance of getting these decisions right," Gant said.
The top Democrat on the House panel, California's Henry Waxman, said he had concerns about the bill.
"Rubber-stamping unlimited LNG exports without any determination that they are in the public interest could have serious unintended consequences," Waxman said.
Among the opponents of unfettered U.S. exports, a coalition of industrial companies, led by Dow Chemical Co, has disputed claims that speeding up export approvals would help Ukraine or U.S. allies. They argue that substantial U.S. gas exports remain years away and that much of the exportable gas has been committed to countries like India.
Supporters of the bill argued that even with Energy Department approval, not all of the projects would be built. Companies would still have to secure investors for the multi-million-dollar plants, as well as permits from the Federal Energy Regulatory Commission.
At the Senate hearing, Lithuania's energy minister, Jaroslav Neverovic, urged lawmakers to allow allies such as his Baltic country to bypass the lengthy federal review process by designating shipments to those countries as being in the national interest.
"It would strengthen buyers so that we don't have to attach ourselves to these long-term (Russian) contracts because there will be gas in the market," Neverovic said.
Russia is Lithuania's sole supplier of natural gas. The country pays one of the highest prices for gas in Europe, due to disagreements with Gazprom, Russia's state-owned gas company.
After months of disagreement, OPEC members last week hammered out a deal to cut oil output for the first time in eight years.
Ali Shareef al-Emadi predicted growth of 3.4 percent in 2017, in line with an International Monetary Fund estimate and up from a projected 3.2 percent this year.
"Many citizens in advanced economies are facing heightened uncertainty, lamenting a loss of control and losing trust in the system," Carney said in a speech at Liverpool's John Moores University.
European stock markets are also set for a weak start, with Italy underperforming as investors brace for turbulence and political crisis in the euro zone's heavily indebted third-largest economy.
The euro tumbled on Monday after Italian Prime Minister Matteo Renzi said he would resign as he conceded defeat in a referendum over his plan to reform the constitution
Rouhani's 2017-2018 budget is based on oil prices of $50 per barrel, up from $40 last year, with a focus on unemployment, water resources, railways and the environment.
Turkish parliament has already ratified the deal on construction of ‘TurkStream’ natural gas pipeline
The September rate was revised to 9.9 percent from the 10 percent first given last month.
Many analysts had expected the producers' cartel to fail to reach a deal as major players like Iran, Iraq and Saudi Arabia remained divided ahead of the meeting.
The report, which collects views of economists, business contacts and others in the 12 Federal Reserve districts in preparation for the monetary policy meeting next month, noted improved retail sales and home construction in most regions.
If the cartel does not reach a deal to cut output, prices could fall below $40 a barrel
European air travel giant Lufthansa has been battling its own pilots over pay and conditions for more than two years.
Failure to get an accord on Wednesday could send oil prices tumbling and deal a further blow to the credibility of the 56-year-old Organization of the Petroleum Exporting Countries.
Around midday, shares in Italian lenders Unicredit and Banco Popolare were down 4 percent compared with Friday's closing levels.
Officials on Friday's said the tie-up between the Hong Kong and Shenzhen markets will start on December 5.