Archive for the ‘Europe’ Category
The Future of the U.S. Refining Industry Under Waxman-Markey
EPRINC has released an executive summary of its forthcoming report examining the future of the U.S. refining industry under the American Clean Energy and Security Act, also known as the Waxman-Markey bill.
A PDF version of the executive summary can be downloaded here and is posted on our publication page. The full report will be posted on our website later this week.
EXECUTIVE SUMMARY
EPRINC has evaluated the economic consequences to the U.S. refining industry of the American Clean Energy and Security Act (ACES), H.R. 2454, also known as the Waxman-Markey (W-M) energy and climate bill. The legislation calls for controlling emissions of greenhouse gasses (GHGs) by placing a price on GHG emissions. The bill passed the House of Representatives on June 26, 2009 and companion legislation is under discussion in the U.S. Senate.
Under the Waxman-Markey bill, both manufacturers (refiners) and importers of transportation and other fuels derived from crude oil would be required to purchase allowances to account for the carbon dioxide (CO2)emitted into the atmosphere as a result of combustion of these fuels beginning in 2012, two years before any free allowances are distributed. Allowances could be bought and sold under the legislation’s cap and trade program. U.S. refiners are responsible for approximately 45% of all emissions covered under Read More >>>
Russian Gas to Europe, Part Deux.
(Download the PDF version of this report for full footnotes)
The recurring crisis in the shipment of Russian gas to the European continent is now moving from an annual to a monthly event. Much like a television soap opera, the theme remains the same; each crisis is followed by a resolution of all pricing and payment disagreements only to be followed by another conflict. The Russians want to be paid, the Ukrainians want some combination of higher transit fees and lower prices, and the Europeans just want assurances that the gas will be delivered. In an EPRINC assessment published in March 2009, we concluded that Gazprom, as a price-taker, had incurred substantial losses from the low oil price environment and recurring gas disputes with Ukraine, thereby, highlighting that dependence goes both ways – Russia needs the European market as much as the latter needs Russian gas.
Furthermore, we concluded that Ukraine could lose considerable economic leverage if Russia built either the Nord Stream or South Stream pipelines. While Russia is determined to charge ahead with building both pipelines, it is suffering from declining revenues from lower sales into Europe. Unless the Ukrainian transit issue is resolved, we are likely to see another cycle of payment disputes.
All three sides have a lot to gain through a long term resolution of the transit Read More >>>
Gazprom, Is It Time to Hit the Reset Button?
This EPRINC report, “Gazprom, Is It Time to Hit the Reset Button?,” (Download PDF) examines natural gas pricing and transportation costs in the European market. The article appears in a slightly abridged format in the March 9, 2009 edition of the Oil and Gas Journal.
Diversification away from Russian gas has been a major theme, not necessarily faithfully implemented, of European energy security policy over the last 20 years. The view that “excessive” dependence on Russian gas would place Europe in a vulnerable position has been a central theme in U.S. foreign policy which has encouraged the Europeans to seek alternatives to Russian gas, through greater production from the North Sea, imports of LNG, alternative fuels, and direct pipeline links to the gas reserves in Central Asia. The Russian-Ukrainian “gas” war that took place for 20 days in January 2009 and the disruption in December 2005 have reinforced European and American concerns regarding the reliability of Gazprom as a major gas supplier. The European Union’s foreign policy chief, Javier Solana, stated that Europe had paid a heavy price from the disruption and would review its energy relations with Russia and Ukraine as a result of the interruption in gas supplies and that efforts to further diversify energy sources would move to the top of the agenda.
It is EPRINC’s assessment that the current environment of rising transit risks for European gas Read More >>>
