http://www.reuters.com/article/2012/11/07/us-usa-oil-export-policy-idUSBRE8A62KS20121107



The light, sweet crude coming from the nation's shale formations is not well suited for the U.S. Gulf Coast refining hub - a disconnect that makes it more profitable for oil companies to send oil abroad and import crude that is better matched to Gulf refiners.

The shifting dynamics could force the Obama administration, which spent the months prior to the election boasting about America's increasing oil supplies, to at least examine whether the door should be opened to more crude oil exports.

(Reuters) - President Barack Obama faces a challenge in his second term that was unthinkable a few years ago: how to adapt an energy policy focused on oil imports and scarcity to an era of rapidly growing domestic production.

After decades when the concept of energy independence seemed a pipe dream, the river of oil flowing from shale formations in North Dakota and Texas is reshaping U.S. energy policy. With oil and gas output increasing, the United States is quickly entering an era where it will have to decide how to manage its newfound energy wealth.

While the debate over liquefied natural gas exports is well known, another issue is emerging: whether to allow the export of crude oil.

Oil and gas companies already face resistance as they push the government to allow more exports of natural gas.

U.S. shale gas output has also skyrocketed in recent years. The United States is positioned to be a net exporter of liquefied natural gas (LNG) in the next few years if the federal government approves more export projects.

After signing off on Cheniere's (LNG.A) Sabine Pass export project, the Obama administration has repeatedly postponed decisions on further exports as it awaits a comprehensive economic analysis of the effects of exports.

http://www.tribune.com.ng/index.php/energy/50309-new-oil-discoveries-worry-fg-may-threaten-2013-budget


The Federal Government has expressed concern that oil and gas prices could fall as more countries announce new oil reserves discoveries, stressing the need to make plans to adapt to the new development.

The Coordinating Minister of the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, stated that: “We are worried, we are concerned, because obviously so many countries are discovering oil and gas so the supply will be increasing over the next few years and therefore we need to plan accordingly to make sure we have the necessary buffers in our own economy.”

She was speaking in the context of a domestic budget debate which has seen the National Assembly asking the Federal Government to count on a higher oil price by fixing crude oil benchmark in the 2013 budget at $85 per barrel and save less of its current high revenues from crude oil sales.

Crude oil sales make up around 80 per cent of government revenues. The draft 2013 budget assumes a global oil price of $75 a barrel, up from $72 a barrel in 2012, but National Assembly has pushed to raise the benchmark to as much as $85 per barrel.

Light sweet crude will soon have a production glut. Our economy needs diversification now.

People like visionless Iweala and Goofluck will only keep talking about how other countries are discovering oil and about the economy while doing nothing tangible. Whether it's 75 or 85 what will she do about it other than helping thieves fritter away our patrimony? I won't be surprised if after acknowledging the changing dynamics, Nigeria is still caught sitting on its hands when the realities of decreased oil revenues hit home.

America does not "solely" control the price of oil. The OPEC has some say in it. Nigeria is member of opec, so if anything goes bad alot more countries will suffer.

And when countries suffer - especially does who buy or sell oil in dollars what do you think will happen to the U.S economy. America is only as strong as the demand for its currency.

If people need less dollars to do business, then people need less America !

Nigeria has nothing to loose, we still have other resources. There are other countries who only have oil - correct me if am wrong.

So, why are always .... crying the sky is falling, when we know - these are just attempts from the U.S to buy oil at cheaper prices.

America need oil, and lots of lots of it. After Gold, Oil is the next readily exchangable resource. If you think America is about to slow down on such purchases, you have no reason to be in the politics section.

For investors, this is the time to buy oil stocks as they fall... cos come 2013 the prices are sure to rise again and then you can sell.

Very interesting.

About time. May be when oil is no longer lucrative globally, we will come back to our senses and thing of how to move forward without it.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9665674/Shale-oil-will-change-global-supply-Opec-admits.html


In its annual world oil outlook report, Opec - whose 12 members include Saudi Arabia, Iran, Iraq and Venezuela - said: “Shale oil represents a large change to the supply picture.”

While in previous reports “no significant shale oil contribution to liquids supply was envisaged,” this year “a rise in the importance of shale oil is expected”, Opec said.

“Resource development is moving rapidly in the US and production has markedly increased.”

Opec cut its forecast for demand for its own crude supplies, while forecasting that non-Opec oil supply would grow significantly.