Oil
Keystone pipeline review looming, likely to show little climate risk
WASHINGTON – The U.S. State Department is poised to issue an environmental review of the proposed Keystone XL oil pipeline that will likely say the project will not appreciably increase carbon emissions, sources said late Thursday, forcing President Barack Obama closer to a tough decision.
Rumors swept through Washington late Thursday that the long-delayed review of the 1,179-mile (1,900-km) pipeline to bring oil from Canada to Nebraska would finally be released as soon as Friday.
“The Environmental Impact Statement is in the final stages of preparation and we anticipate a release of the document soon,” a senior State Department official said late on Thursday, speaking on condition of anonymity.
The comment gives a clearer insight into where the long-awaited assessment stands. One government official said the overdue report, part of a process lasting more than five years that has strained relations with Ottawa, would be released on Friday.
Supporters say the TransCanada Corp project would create thousands of jobs and reduce U.S. reliance oil imports from nations that are less friendly than Canada. They also point to U.S. government reports about the dangers of moving crude oil by rail as an alternative to the pipeline.
Critics of the pipeline plan say it would harm the environment and hasten climate change by promoting oil-harvesting methods in Alberta that produce high levels of carbon dioxide emissions.
After several more steps that could take months, the final word on Keystone will come from the president.
A decision in favor of the pipeline could undermine Obama’s environmental credentials and anger activists who are some of the Democratic Party’s strongest supporters. A decision against the pipeline could undercut Obama’s pledge to boost employment and U.S. energy security while alienating an important international ally and oil supplier.
REPORT MAY DISAPPOINT ENVIRONMENTALISTS
Canadian officials said this month they expected the report to come out soon after Obama’s annual State of the Union speech, which took place Tuesday.
And the American Petroleum Institute, the oil industry’s top lobbying group, has predicted that the report could be released this week, citing administration sources.
“We’re expecting to hear the same conclusion that we’ve heard four times before: no significant impact on the environment,” Jack Gerard, API president, told Reuters in an interview last week.
Most indications for some time have been that the updated report will hew close to last year’s draft, which said the project will not add substantially to carbon emissions.
That is sure to disappoint environmentalists. But the report is likely to show a nuanced interpretation of the environmental benefits and costs of Keystone.
The project involves building a pipeline from Alberta, Canada, to Steele City, Nebraska, where it would connect with a previously approved line. That would create a system that could move more than 800,000 barrels of crude per day from Alberta’s oil sands to refineries on the U.S. Gulf Coast.
The State Department official emphasized that the release of the final environmental statement for the pipeline was “not a decision but another step in the process prescribed by the executive order.”
The release of the environmental review starts the clock running on another review period, during which eight U.S. federal agencies will have 90 days to comment on whether Keystone XL is in the national interest.
Some agencies, including the Departments of Defense, Commerce, and Energy, are expected to focus on the energy security and economic case for the pipeline.
But the Environmental Protection Agency and the Department of Interior, which have expressed reservations about the pipeline in public comments, are among the other bureaus that will weigh in.
Sources on Capitol Hill and in the administration said recent talk about the review was that the environmental community would be disappointed, suggesting a favorable view, on net, of the pipeline’s benefits.
But the findings will not be a one-way street. “Environmentalists will likely be disappointed until they read the whole report,” said an official who had seen a draft but declined to discuss the findings in detail.
A report pending from the State Department’s independent Inspector General was likely to be issued at the same time as the State Department’s review, sources said.
The Inspector General has been investigating a possible conflict of interest surrounding the company that did the original environmental review, Environmental Resources Management.
– REUTERS
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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