Page 11 - NorthAmOil Week 11 2023

NorthAmOil POLICY NorthAmOil

Biden’s budget seeks to end

oil and gas subsidies

US US President Joe Biden’s 2024 budget is seek- administration’s mixed relationship with the oil
ing to end oil and gas subsidies. The budget, and gas industry.
however, is a proposal and would have to be In Biden’s annual State of the Union speech in
accepted by both houses of Congress, which is February, he conceded that oil would be needed
unlikely. in the US for some time yet, even as the energy
Biden is “committed to ending tens of billions transition accelerates.
of dollars of federal tax subsidies for oil and gas “We’re still going to need oil and gas for a
companies,” according to a White House fact while,” he said. “We’re going to need oil for at
sheet. “Even as they benefit from billions of least another decade, and beyond that.”
dollars in special tax breaks, oil companies have That comment was reiterated earlier this
failed to invest in production,” the fact sheet said. month at the CERAWeek by S&P Global con-
“In 2022, they realised record profits and cut their ference in Houston by US Energy Secretary Jen-
investment as a share of operating cash flows to nifer Granholm. She said that although the Biden
the lowest levels in decade, while undertaking administration was pursuing carbon neutrality
record stock buybacks that benefited executives by 2050, oil and gas were going to remain a part
and wealthy shareholders,” it continued. of the energy mix for “years to come”.
“The budget saves $31bn by eliminating spe- But in November, Biden accused oil com-
cial tax treatment for oil and gas company invest- panies of “war profiteering” and warned them
ments, as well as other fossil fuel tax preferences,” he might seek to impose new taxes on what he
the fact sheet added. described as “excess” profits. This was just before
No more details of his proposal have been the mid-term elections, when Biden was under
released. pressure to appease voters worried over high gas-
The budget underscores the Biden oline prices and general inflation.™

PROJECTS & COMPANIES

Cedar LNG project in Canada receives

environmental approval

BRITISH THE proposed $2.4bn Cedar LNG project to development by government regarding oil and
COLUMBIA be developed by the Haisla Nation indigenous gas sector emissions, they concluded that the
group and Pembina Pipeline in Kitimat, Brit- project can fit within BC’s climate targets and
ish Columbia, has been granted environmental goals,” it added.
approval by the provincial government. Already a 20-year liquefaction service agree-
The environmental assessment certificate ment has been reached with ARC Resources for
(EAC) for the floating LNG (FLNG) project the project and the parties are now in the process
means the 3mn tonne per year (tpy) facility is of finalising a definitive agreement for 1.5mn tpy of
one step closer to coming to fruition. LNG, which is equivalent to 200mn standard cubic
Located on Haisla Nation-owned land, the feet (5.7mn cubic metres) per day of natural gas.
project holding company, Cedar LNG Partners, The FLNG project is located in British
must still obtain the necessary federal approvals Columbia’s north-west about 630 km west of
and provincial permits and authorisations before Prince George. The FLNG plant and marine
construction can start. The project company is export terminal located in the Douglas Chan-
majority-owned by Haisla Nation. nel will utilise an 8.5-km pipeline that will link
“The ministers acknowledge that the project it with the Coastal GasLink pipeline, which is
takes all possible measures currently available currently under construction.
to reduce greenhouse gas [GHG] emissions to The BC provincial government has strict cli-
the lowest feasible level,” the BC Environmental mate regulations for the oil and gas industry. As
Assessment Office stated. part of its new energy action framework, Cedar
“With the requirement to implement a LNG, along with all proposed LNG facilities in
greenhouse gas [GHG] emissions reduction the province, will need to pass an emissions test
plan, combined with regulations that are under and have a credible plan to be net zero by 2030.™

Week 11 16•March•2023 www. NEWSBASE .com P11