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OIL AND GAS
U.S. importing less crude oil than it did at this time last year
by Daniel J. Graeber
Washington (UPI) May 1, 2013


House panel passes measure to expedite LNG licenses
Washington (UPI) May 1, 2013 - Rep. Cory Gardner, R-Colo., said legislation he drafted in the House Energy and Commerce Committee would clear the "logjam" of LNG export licenses.

The House Energy and Commerce Committee passed Gardner's measure by a vote of 33 to 18. The Republican congressman said the so-called Domestic Prosperity and Global Freedom Act would expedite the decision-making processes for facilities seeking an export license for liquefied natural gas.

"The majority of LNG export applications are waiting in a long line," Gardner said in a statement. "We must break the logjam that is currently taking place at DOE, and move toward construction of these LNG export facilities."

The federal government needs to determine if exporting LNG to countries without a U.S. free-trade agreement is in the public's interest before granting an export license.

Jack Gerard, president of the American Petroleum Institute, said Gardner's measure would position the United States, the world leader in natural gas production, as "an energy superpower."

Gardner said Wednesday his measure is in part a response to Russia's grip on the European energy sector.

Members of the European Union lack free-trade deals with the United States. It's the private sector, not the federal government, which determines LNG destinations.

U.S. crude oil imports are on a general rate of decline, though the level is barely less than the same time last year, the U.S. Energy Department said.

The Energy Information Administration, the statistical arm of the Energy Department, said in its weekly petroleum update crude oil imports averaged 7.5 million barrels per day last week, down 313,000 bpd from the previous week.

"Over the last four weeks, crude oil imports averaged over 7.7 million barrels per day, 0.1 percent below the same four-week period last year," EIA's Wednesday report said.

The U.S. economy is relying less on imported crude oil because of the increase in domestic production from shale reserves.

EIA said the amount for crude oil in the U.S. inventory, not counting those volumes in the Strategic Petroleum Reserves, increased by 1.7 million barrels from the previous week's report. That puts total crude oil inventories at 339.4 million barrels, which is above the average range for this time of year.

Domestic production for the week ending April 28 was 8.35 million bpd, a marginal decrease from the previous week.

Canada and Saudi Arabia were the top oil exporters to the United States for the week, with a combined 4.1 million bpd sent to the U.S. market. Both of those levels were down from the previous week's report.

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