Key Energy Sector Policy Changes

[dan_s]

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of approval: 25% (still low, recall even when Democrats controlled Congress and Senate they were unable to get IDCs repealed).