Posted August 8, 2018
A couple of observations on China’s announcement late last week that it may impose a 25 percent tariff on U.S. shipments of liquefied natural gas (LNG) to that country – which would be in retaliation for announced U.S. tariffs on certain Chinese goods coming into this country.
First, China was the third-largest importer of U.S. LNG in 2017, accounting for nearly 15 percent of our LNG exports, according to the U.S. Energy Information Administration (EIA). As those numbers indicate, this exchange of tariffs could leave a mark as far as U.S. energy exports are concerned. ...
If U.S. energy exports are restricted – at the same time trade policies have been adopted that increase the cost of the steel our industry uses – there’s a risk of significantly affecting a sector that has been a driving force for economic growth. It’s a big price to pay.
Posted August 7, 2018
Recently, we discussed how natural gas and oil production and energy exports were major contributors to robust second-quarter growth by the U.S. economy – by themselves generating nearly half of the increase in U.S. real exports in Q2.Yet, there’s concern that escalating U.S. trade restrictions and looming disputes could threaten global trade and economic growth. We’ve talked about tariffs and quotas directly impacting the natural gas and oil industry – China last week announced a 25 percent tariff on U.S. liquefied natural gas – but the potential effect is broader than just our industry, as indicated in last week’s post on possible food price impacts.
Posted July 27, 2018
The U.S. gross domestic product (GDP) increased 4.1 percent in the second quarter at a seasonally-adjusted annualized rate, its best pace since 2014, driven by strong consumer and business spending as well as a surge in exports ahead of retaliatory tariffs from China. As the energy renaissance has continued to raise U.S. natural gas and oil production and exports to record levels, these abundant and affordable fuels and feedstocks contribute to the economy and — by themselves — generated nearly half of the growth in U.S. real exports in Q2.
Posted July 26, 2018
The Trump administration has long touted its commitment to U.S. energy production but continues to push policies that directly counter these efforts, hurting U.S. workers and consumers in the process. The proposed Section 301 tariffs – and the retaliatory tariffs from China that they will provoke – are no exception.
Posted July 25, 2018
Tariffs and quotas on imported steel and other products appear to be moving from a debate in Washington to Americans’ dinner tables, as farmers and others in the human food chain voice concern that a trade war – tariffs and retaliatory measures by other countries – is impacting food costs.
Posted July 25, 2018
While the administration’s goal of enhancing the economy is laudable — as is their continued promise to promote U.S. energy dominance— their latest action to deny exclusions from tariffs under Section 232 on imported steel used in certain parts of natural gas and oil industry operations is a misguided decision that could impact American energy production as well as American jobs and consumers.
Posted July 19, 2018
The Trump administration’s rejection of Plains All American’s request for an exclusion to the administration’s tariffs on imported steel – which the company planned for a pipeline out of the Permian Basin, the nation’s most dynamic oilfield – illustrates the head-on collision between trade policies and energy goals.
Caught in the middle: American consumers and U.S. energy security.
Posted July 16, 2018
Tariffs and quotas on imported steel imposed by the Trump administration are self-inflicted potholes on the path to the administration’s goal of U.S. “energy dominance.”They’re bad for American energy, which uses steel throughout its operations and delivery networks. They’re bad for American manufacturing, they’re bad for American consumers, and they’re bad for America.
Posted June 20, 2018
Two charts pretty well capture the what’s at stake for U.S. energy – specifically exports of domestic crude oil – in an intensifying trade standoff between the United States and China.According to U.S. Energy Information Administration figures, this is a very big deal. Big as in U.S. crude oil exports to China accounted for about one-fifth of all U.S. oil exports in 2017 – growing from basically nothing in 2013 to 81.6 million barrels last year.
Posted June 13, 2018
The U.S. Energy Department’s latest study on the economic impacts of exporting liquefied natural gas (LNG) reaches a by-now familiar top-line conclusion: Exporting U.S. LNG is good for the economy, and those benefits will outweigh domestic cost impacts.
We say familiar, because this is the fifth DOE study on LNG exports – and the fifth to describe broad, positive economic impacts for the United States from shipping natural gas to friends and allies overseas – which should end claims that LNG exports could harm American consumers.Certainly, no one can say the issue hasn’t been thoroughly analyzed – not after five government studies and two commissioned by our industry (see here and here).