U.S. export doors continue to open

image credit: Doug Wallick

Energy Policy

President Obama not only sends mixed signals on foreign policy but energy policy as well. On one hand he blocks the Keystone pipeline and a New York Times report that the President is "working to forge a sweeping international climate change agreement to compel nations to cut their planet-warming fossil fuel emissions, but without ratification from Congress." 

On the other hand the President is also opening up the door to U.S. oil exports and allowing foreign refiners to refine U.S. oil without the EPA's oversight. S&P released a report that the Obama Administration is going to lift the ban. The only thing that the President seems to be consistent on is that he thinks he can do whatever he wants without congressional approval.

The New York Times says that the President is going to sign this Climates change agreement at a United Nations summit meeting in 2015 in Paris. The New York Times says" under the Constitution, a president may enter into a legally binding treaty only if it is approved by a two-thirds majority of the Senate."

The New York Times says that "To sidestep that requirement, President Obama's climate negotiators are devising what they call a "politically binding" deal that would "name and shame" countries into cutting their emissions." "American negotiators are instead homing in on a hybrid agreement — a proposal to blend legally binding conditions from an existing 1992 treaty with new voluntary pledges." So in other words that oath where he solemnly swore to the best of his ability, to preserve, protect and defend the Constitution of the United States, was only meant when it agreed with his muddled vision.

Crude oil (NYMEX:CLV14) looks like it is putting in its seasonal bottom. Support came in the form of American Petroleum Institute data. The API reported that crude inventories fell by 1. 3 million barrels as refiner demand exceeded expectations. We did see a 2.4 million barrel build in distillates but we are still below the five year average. Gas inventories fell by 3.2 million barrels as refining issues slowed production of gas but as runs increased to meet farmer distillate demand rising 0.8% to 93.7%.

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