Page 9 - NorthAmOil Week 28 2022

NorthAmOil POLICY NorthAmOil

US govt weighs options for Willow

US THE administration of US President Joe Biden is is seen as a key step towards reissuing a federal
considering a range of options for ConocoPhil- approval for Willow.
lips’ proposed Willow project in Alaska after the A public comment period lasting 45 days is
initial approval for the development was over- now underway and it is expected that the BLM
turned by a court last year. could make a decision on the project later this
Last week, the Bureau of Land Management year.
(BLM), part of the US Department of the Inte- Projects such as Willow illustrate the chal-
rior (DoI), released a revised draft environmen- lenge Biden faces in balancing his environmental
tal review of Willow. goals with a push to produce more domestic oil
The review had been required after a judge in the face of commodity price volatility. During
vacated the initial approval for the project, his presidential campaign, Biden had pledged to
granted by the administration of former US end new federal oil and gas leasing and drilling.
President Donald Trump, ruling that Willow’s However, in recent months he has increas-
effects on climate change and wildlife had not ingly called on US companies to produce more
been properly taken into account. oil in a bid to help lower crude and gasoline
Under the revised draft review, the BLM prices.
is considering several options for the project, While Willow remains years away from
including a proposal to develop up to five drill starting production – if it is approved – it is also
sites, a scaled-down version with fewer drill sites seen by Alaskan officials as key to helping offset
and not approving the project at all. declining output in the state.
The updated draft review does not represent The project area, located inside the National
any final decision on how to proceed, the BLM Petroleum Reserve-Alaska (NPR-A), is esti-
noted. However, the publication of the review mated to contain around 600mn barrels.™

Citgo willing to import Venezuelan

crude with US permission

US/VENEZUELA CITGO Petroleum, a US-based downstream However, there have been no formal changes
affiliate of Venezuela’s national oil company in US policy that would allow a company such as
(NOC) PdVSA, indicated last week that it was Citgo to import Venezuelan crude.
willing to resume imports of Venezuelan crude if Carlos Jorda, the CEO of Citgo, commented
the US government authorised it to do so. on the matter at a recent online conference on
Citgo has been unable to source feedstock Venezuela’s foreign energy assets. “To be com-
from Venezuela since 2019, due to American petitive in this market, we have to buy the cheap-
sanctions on its parent company PdVSA. Fol- est and most convenient oil. We shouldn’t be at a
lowing Russia’s invasion of Ukraine, however, US disadvantage,” he said, comparing his company’s
and Venezuelan officials began talks in March on position to that of other refiners.
the prospects for easing trade restrictions. Horacio Medina, the chairman of a board
There is wide support for such a move. OPEC that oversees Citgo, echoed Jorda’s sentiment.
and the French government have been urging He explained that any Venezuelan crude that
the US to ease sanctions and to allow Venezuelan might arrive in the US Gulf Coast (USGC) mar-
and Iranian exports to countries that are strug- ket without penalties and at competitive prices
gling to replace their Russian-sourced supplies of would have to be evaluated as a potential source
crude oil and natural gas. going forward.
In response to this mounting pressure, the Chevron, the last remaining US major to
US in May authorised two European companies maintain a token presence in Venezuela, would
– Italy’s Eni and Spain’s Repsol, the last Euro- undoubtedly agree. The company is not actively
pean operators to remain active in the South producing oil in Venezuela, but it is seeking
American country following the imposition approval from the US Department of the Treas-
of sanctions – to import Venezuelan oil again. ury to import Venezuelan oil into the US and
That move helped push Venezuela’s oil and fuel ultimately hopes to regain operational control
exports above 600,000 barrels per day (bpd) in of its joint ventures in the South American
June. country.™

Week 28 15•July•2022 www. NEWSBASE .com P9