The race to build deepwater oil export terminals in the US was put into a near halt by the coronavirus pandemic which ravaged global energy demand. At the same time, these projects are facing permitting delays and growing environmental opposition. Reuters reported that only three out of twelve offshore US Gulf Coast oil export proposals remain before federal maritime regulators.
These slow-walked projects are likely in a state of limbo amid low oil price environment and ample existing export capacity. Official data showed US oil production and prices have so far decreased by 18% and 35% respectively in 2020. Meanwhile, daily exports have fallen by 46% year-on-year.
Phillips 66 and Trafigura remain far from giving a final go-ahead for its joint venture Bluewater Texas Terminal. Meanwhile, Enterprise and Enbridge no longer expect to secure federal permits for their Sea Port Oil Terminal this year. Permit reviews were suspended for Texas GulfLink deepwater port, developed by Freepoint Commodities and Sentinel Midstream.
Environmental opposition to the major proposals has also increased. Recently, environmental organization Sierra Club and other groups rallied opponents to Enterprise’s SPOT terminal. They have submitted a letter signed by 22,400 people to the regulator Maritime Administration opposing the project.
Tags: AlwaysFree,Americas,Crude Oil,English,US
Published on October 9, 2020 11:43 AM (GMT+8)Last Updated on October 9, 2020 11:43 AM (GMT+8)
