Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

RPT-INSIGHT-All the world a stage: Rising U.S. oil clout on show in Houston

Mon, 18th Mar 2019 00:46

By Ron Bousso and David Gaffen

HOUSTON, March 15 (Reuters) - A glance at the attendee listat one of the world's largest energy industry events in Houstonthis week left little question about the growing influence ofthe United States over global oil politics.

Present: top U.S. diplomat Mike Pompeo. Absent: leadingSaudi and Russian officials, and most OPEC nations.

As the United States weans itself off foreign oil imports -thanks to booming domestic production - the complex web ofpolitics and business interests that have shaped decades ofWashington's energy diplomacy in the Middle East and beyond ischanging.

That shift was unmistakable in Houston this week.

In his keynote address, Pompeo spoke of exploiting the powerthe United States is accruing through rising energy supply in"punishing bad actors"; he laid out a vision of working withenergy firms to isolate Iran and Venezuela; and he emphasizedthe need to protect oil supplies by countering China's moves tocontrol the South China Sea.

The Secretary of State delivered the half-hour speech to apacked room of energy executives, while dozens more watched viajumbo screens at the adjacent convention center.

It marked the type of reception usually reserved for theSaudis and other members of the Organization of the PetroleumExporting Countries. When OPEC Secretary General MohammedBarkindo addressed the conference a day earlier, the auditoriumwas half empty.

The speech itself was a far cry from past addresses by OPECheavyweights: Barkindo called for cooperation with the shaleindustry, which has helped drive U.S. oil output to more than 12million barrels per day (bpd), making the United States theworld's largest producer. (Graphic: https://tmsnrt.rs/2VIJTbg)

Just two years ago, Saudi Oil Minister Khalid al-Falihdelivered a combative keynote speech warning U.S. shaleexecutives that OPEC would not carry "free riders" in itsefforts to balance world oil supply and demand.

It turned out to be an empty threat, and a reflection of howOPEC had struggled to deal with the surge in U.S. energyproduction.

POMPEO MEETS BIG OIL

Beyond his keynote at the Houston conference - the firstever for a sitting Secretary of State at the gathering known asCERAWeek - Pompeo circulated among executives in closed-doormeetings, even, according to a source, hosting a groupinformally at Pappasito's Cantina, a Mexican restaurant in theHilton Americas Hotel where the conference took place.

"I'm not used to it, but I think it's great," said VickiHollub, chief executive of Occidental Petroleum, saying she wasimpressed by Pompeo and his team's outreach. Occidental has beenone of the biggest winners from the surge of U.S. shale exports.

In one private meeting on Tuesday, Pompeo and his StateDepartment energy adviser Frank Fannon sat down with big oilcompanies including Royal Dutch Shell, BP plc, Occidental andChevron Corp.

At that meeting, first reported by Reuters, Pompeo talkedabout how the government and the world's top energy companiescould work together to encourage U.S. allies to buy more of itsoil, according to two sources familiar with the discussion. Healso asked for their cooperation on Iran.

The Trump administration has imposed hefty sanctions on Iranand Venezuela, both OPEC members, with growing confidence thatthere is enough oil from the U.S. and elsewhere to deal with anysupply disruptions.

So far, that bet has panned out - global oil prices arecurrently less than $70 a barrel.

Coming into office, President Donald Trump promised toderegulate the energy industry and assert U.S. oil independence- a sharp turn from an Obama administration that, while placingsanctions on Iran's oil exports, largely built its energy policyaround renewables and reducing emissions.

Aided by rising shale production and new technology that hasmade pumping U.S. crude less costly, Trump has also been able topublicly lean on OPEC, frequently taking to Twitter to urgemembers to increase output to keep prices low.

"Under the Trump administration the U.S. feels far moreemboldened by our oil-and-gas production and the support andalliance they feel with Saudi Arabia," said Sarah Ladislaw, wholeads energy policy analysis at the Center for Strategic andInternational Studies.

Washington's growing influence, she added, has alreadystarted to shift oil politics among allies and adversariesacross the world.

Saudi Arabia and Russia in September, for instance, informedthe U.S. before speaking to OPEC allies when they reached anagreement to boost production ahead of the official restart ofsanctions on Iran.

In addition to the Middle East, the Trump administration ishoping to use U.S. exports of liquefied natural gas (LNG) toEurope to counter the planned Nord Stream 2 pipeline that wouldbring gas from Russia.

Germany in February said it would consider building two LNGterminals to import from the United States, bowing to U.S.pressure to diversify supply after Trump termed Nord Stream 2 a"horrific" project that would make Berlin more reliant onRussia.

"We don’t want our European allies hooked on Russian gasthrough the Nord Stream II project, any more than we ourselveswant to be dependent on Venezuelan oil supplies," Pompeo toldthe conference.

LESS OPEC

OPEC had its smallest representation for at least five yearsat the event. Saudi Arabia sent no senior speakers, though thatwas in part because state-run Saudi Aramco held board meetingsin Riyadh this week.

"OPEC is a less important player because the United Statesis the number-one producer of oil, natural gas and refinedproducts," said Mike Sommers, president of U.S. industry groupthe American Petroleum Agency, at the conference.

The U.S. Department of Energy sent its largest contingentever, it told Reuters, without giving a specific number.

OPEC has responded to the growing influence of U.S.production by forging an alliance with Russia and other non-OPECproducers to curtail supplies from a wider swathe of the globalenergy industry. (Graphic: https://tmsnrt.rs/2U9HzK9)

"The most relevant aspect of OPEC now is where it hasreached beyond its organization, which is Russia, and whetherthat can be sustained or formalized," said Suzanne Maloney,deputy director of the Foreign Policy program at the BrookingsInstitution.

There have been mixed signals on that front. Russia's IgorSechin, head of oil giant Rosneft, has expressed support forending production cuts, believing OPEC's deal plays into shale'shands because it underpins prices.

"They (OPEC) know they cannot do it alone. To swing thependulum from left to right in terms of production to make sureyou get the price that you want, you still need otherproducers," said Saidu Muhammad, chief gas and power operatingofficer at Nigerian National Petroleum Corp.

"Today it is Russia - tomorrow I believe it will be theU.S." (Graphic: https://tmsnrt.rs/2EUmNsT)

(Additional reporting by Rania El Gamal in Dubai, JenniferHiller, David French, Florence Tan and Gary McWilliams inHouston; Writing by David Gaffen; Editing by Simon Webb and PaulThomasch)

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

Read more
21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

Read more
15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, part of an ongoing retreat of long-time producers from the ageing basin.

Read more
7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating the firm was "on a roll".

Read more
31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Read more
31 Jan 2022 07:48

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

Read more
28 Jan 2022 11:25

Shell's renewables boss steps down after less than two years

* Elisabeth Brinton leaves for new role, she says* Shell creates two new renewables leadership roles* Thomas Brostrøm to head renewables generation* Steve Hill to head energy marketingBy Ron BoussoLONDON, Jan 28 (Reuters) - Shell's head of renewable...

Read more
27 Jan 2022 16:14

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

Read more
26 Jan 2022 17:02

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

Read more
26 Jan 2022 14:36

China's Sinopec awards fewer cargoes in recent LNG tender

By Chen Aizhu and Marwa RashadSINGAPORE/LONDON, Jan 26 (Reuters) - Unipec, the oil and gas trading arm of China's Sinopec Corp has awarded fewer-than-planned cargoes in a recent tender to sell up to 45 cargoes of liquefied natural gas for 2022 del...

Read more
26 Jan 2022 12:16

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

Read more
26 Jan 2022 09:33

UPDATE 2-Commodity, bank stocks lead FTSE 100 higher; Playtech drops

* Oil and banking shares top gainers* Wizz Air reports Q3 loss, expects improvement in spring* FTSE 100 up 1.3%, FTSE 250 add 1.1% (Updates to market close)By Shashank Nayar and Ambar WarrickJan 26 (Reuters) - London's FTSE 100 rose on Wednesday wit...

Read more
26 Jan 2022 09:12

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

Read more
25 Jan 2022 21:13

UPDATE 1-U.S. awards 13 mln barrel exchange of crude from strategic reserve

(Adds details on sale, background on 50 million barrel SPR plan)WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to ...

Read more
25 Jan 2022 20:10

U.S. awards exchange of 13 mln barrels of crude from strategic reserve

WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to seven companies.The companies are Shell Trading US, 4.2 million ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.