Tag Archives: U.S. Energy Secretary Rick Perry

U.S. offers up to 6 million barrels of oil from emergency reserve

By Timothy Gardner

WASHINGTON (Reuters) – The U.S. Energy Department said on Thursday it is offering up to six million barrels of sweet crude oil from the national emergency reserve in a sale mandated by a previous law to raise funds to modernize the facility.

A law U.S. President Donald Trump signed last year requires the department to hold sales to fund $300 million improvements including work on shipping terminals to the Strategic Petroleum Reserve, or SPR, which is held in caverns on the coast of Texas and Louisiana. Previous laws have also mandated sales from the reserve, which currently holds more than 649 million barrels.

While global oil prices have been rising as the production group OPEC and Russia work together to cut supplies, the sale did not appear to be an explicit signal that the United States is looking to balance the current market with the SPR. U.S. Energy Secretary Rick Perry, who has said price impacts from tapping the reserve for supply balance are often temporary, did not mention the sale in a press conference earlier on Thursday.

Still, the oil supply could tighten in coming months with the Trump administration’s imposition of sanctions on crude exports from both Iran and Venezuela’s state-owned oil company, and with the producer supply cuts from OPEC and Russia.

The timing of the mandated sale may “serve as a warning to OPEC producers that a larger deployment of the SPR in the future could undermine,” efforts to boost the oil price, at least temporarily, analysts at ClearView Energy Partners said in a note.

The delivery period for the sale will be from May 1 to May 14 for oil from the reserve’s West Hackberry and Big Hill site, and from May 1 to May 31 from the Bryan Mound site. Offers for the oil must be received by March 13, the department said.

(Reporting by Timothy Gardner and Valerie Volcovici; editing by Chizu Nomiyama, Meredith Mazzilli and Susan Thomas)

Nuclear, coal bailout worth any cost ‘to keep America free’: U.S. energy chief

FILE PHOTO: Power lines in Hinsdale, New Hampshire, lead away from the Vermont Yankee nuclear power plant (C rear) in Vernon, Vermont August 27, 2013. REUTERS/Brian Snyder

By Richard Valdmanis

WASHINGTON (Reuters) – U.S. Energy Secretary Rick Perry said on Thursday that bailing out struggling coal and nuclear power plants is as important to national security as keeping the military strong, and that the cost to Americans should not be an issue.

“You cannot put a dollar figure on the cost to keep America free,” he told reporters at a press conference in Washington, when asked how much the administration’s effort to extend the lives of the facilities would cost. When asked about the cost of a potential bailout, he said he did not yet know.

“We look at the electricity grid as every bit as important to (national security) as making sure we have the right number of ships, aircraft and personnel,” he said. “What is your freedom worth?”

President Donald Trump ordered the DOE to take emergency measures to slow the retirements of coal and nuclear power plants, arguing those kinds of facilities can store months of fuel on site and therefore withstand supply disruptions that could be caused by storms, hacks, or physical attacks.

Aging coal and nuclear facilities have been shuttering at a rapid pace in recent years, pushed out by cheaper natural gas as well as renewable energy sources like wind and solar.

The Trump administration considers renewable energy vulnerable, because gas-fired plants rely on pipelines that can be disrupted, and solar and wind facilities only produce energy under certain weather conditions.

Perry said nearly all U.S. military bases rely on power from the civilian grid.

The emerging grid policy fits neatly with the administration’s broader agenda to boost U.S. fossil fuels production and to save the coal industry.

The DOE is currently studying ways to bail out coal and nuclear facilities, including potentially by mandating grid operators to purchase power from them.

Cyber experts have questioned the reasoning behind a potential bailout. They said it will not toughen the U.S. power grid against cyber attacks because hackers have a wide array of options for hitting electric infrastructure and nuclear facilities that are high-profile targets.

Perry said the DOE is examining the costs now.

“We don’t have a dollar estimate at this particular point.”

(Writing by Richard Valdmanis; Editing by David Gregorio)

U.S. and Iran argue over inspections at nuclear watchdog meeting

U.S. Energy Secretary Rick Perry attends the opening of the International Atomic Energy Agency (IAEA) General Conference at their headquarters in Vienna, Austria September 18, 2017.

By Shadia Nasralla

VIENNA (Reuters) – The United States and Iran quarreled over how Tehran’s nuclear activities should be policed at a meeting of the U.N. nuclear watchdog on Monday, in a row sparked last month by Washington’s call for wider inspections.

Key U.S. allies are worried by the possibility of Washington pulling out of a 2015 landmark nuclear deal under which Iran agreed to curb its nuclear program in exchange for sanctions against it being lifted.

U.S. Ambassador to the United Nations Nikki Haley last month called for the International Atomic Energy Agency (IAEA) to inspect a wider range of sites in Iran, including military ones, to verify it is not breaching its nuclear deal with world powers. Her remarks were rejected by a furious Tehran.

“We will not accept a weakly enforced or inadequately monitored deal,” U.S. Energy Secretary Rick Perry told the IAEA General Conference, an annual meeting of the agency’s member states that began on Monday.

He did not say whether he thought the deal was currently weakly enforced.

“The United States … strongly encourages the IAEA to exercise its full authorities to verify Iran’s adherence to each and every nuclear-related commitment under the JCPOA,” Perry added, referring to the deal by its official name — the Joint Comprehensive Plan of Action.

Perry was speaking shortly after the General Conference formally approved the appointment of Yukiya Amano, a 70-year-old career diplomat from Japan, to a third term as IAEA director general.

U.S. President Donald Trump has called the accord “the worst deal ever negotiated” and has until mid-October to make a decision that could lead to Washington reimposing sanctions on Iran.

Iran’s nuclear chief, Ali Akbar Salehi, told the meeting in Vienna that Washington had made “a host of unjustifiable peculiar demands with regard to the verification of our strictly peaceful nuclear program”.

“We remain confident that the (IAEA) will resist such unacceptable demands and continue to execute the agency’s … role with strict objectivity, fairness and impartiality,” he said. Salehi also criticized what he called “the American administration’s overtly hostile attitude”

The IAEA has the authority to request access to facilities in Iran, including military ones, if there are new and credible indications of banned nuclear activities there, but diplomats say Washington has yet to provide such indications.

Amano often describes his agency’s work as technical rather than political and has declined to comment on Haley’s remarks about inspections. In a speech on Monday, however, he defended the deal as an important step forward.

“The nuclear-related commitments undertaken by Iran under the JCPOA are being implemented,” Amano said. “Iran is now subject to the world’s most robust nuclear verification regime.”

 

(Writing by Francois Murphy; Editing by Raissa Kasolowsky)