USMCA good news for U.S. upstream companies

Post Reply
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

USMCA good news for U.S. upstream companies

Post by dan_s »

Energy industry applauds Trump signing of USMCA into law . NGI . President Trump on Wednesday signed into law the United States-Mexico-Canada Agreement (USMCA), a revamped version of the North American Free Trade Agreement (NAFTA) seen as vital to the energy sectors and economies of all three signatory countries. The deal, which still must be ratified by Canada before it can take effect, comes amid surging exports of natural gas via pipeline from the United States to Mexico, and tension between the oil and gas industry and Mexico’s government. In the wake of Mexico’s 2013-2014 constitutional energy reform signed under then-president Enrique Peña Nieto, international oil companies also now hold exploration and production rights in both onshore and offshore blocks in Mexico. Independent Petroleum Association of America (IPAA) CEO Barry Russell welcomed the news, saying Wednesday, “The terms of the USMCA signed today by President Trump are good news for U.S. independent oil and natural gas producers. Free trade helps not only our industry, but the U.S. economy as a whole.” Russell continued, “At a time when oil and natural gas production is increasing, we have the best high growth outlets we could ask for in our neighbors Mexico and Canada.” He cited that the two countries combined to account for 75% of U.S. natural gas exports and about 30% of petroleum exports in 2018.

US oil output growth to slow, but peak still over a decade away: EIA . S&P Global . The US shale oil boom will not burn out, but will spend the next 20 years fading away, the US Energy Information Administration said Wednesday in its latest Annual Energy Outlook. Annual US crude oil output climb to 14 million b/d by 2022, an increase of nearly 7.6 million b/d in a decade, but domestic will then level off, increasing by less than 400,000 b/d over the next decade as operators move to less productive plays and well productivity declines, according to EIA projections in the report. US oil output will begin a slow decline in the mid-2030s, falling another 500,000 b/d over the next decade and declining below 12 million b/d by 2050, EIA said. The projection is the reference case for EIA's production outlook, a forecast in between low and high oil and gas supply cases.
Dan Steffens
Energy Prospectus Group
Post Reply