Raymond James made a presentation in Houston yesterday and they closed with these comments on Energy Policy Issues in Washington. - Dan
> Keystone – Decision on approval of the cross-border segment expected in next 2-3 months.
White House chatter: Some environmental groups already see this issue as a lost cause and wish they hadn’t invested as much resources in it.
Odds of approval: 80%
> Crude Exports – Export permits have already been granted to at least 4 companies (BP, Shell, Valero, Vitol) and possibly others that have not been made public yet.
White House chatter: Expect handful of other permits to “quietly” be granted to Canadian destinations. However, “no chance” statute is modified by Congress anytime soon.
Odds of approval: 10% (in terms of export ban being lifted in next 5 yrs)
> Removal of IDCs – Intangible drilling costs remain a target, but still unlikely
White House chatter: Would only happen if there is a comprehensive tax reform package (“grand bargain”) and there is no sign of that happening.
Odds of approval: 25% (still low, recall even when Democrats controlled Congress and Senate they were unable to get IDCs repealed).
Key Energy Sector Policy Changes
Key Energy Sector Policy Changes
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group