Tag Archives: export

Let’s continue trading | Legislative Renewal | Instant News

Over the past four years, we have renewed our trade relations and trade agreements at a historic pace. We have updated comprehensive trade agreements with Canada, Mexico and South Korea; entered into Phase One agreements with China and Japan that address many of the significant barriers to US exporters in these key markets; and making important progress in removing trade barriers faced by certain sectors in several other countries. Together, these countries buy nearly 50 percent of US exports today. This agreement facilitates increased opportunities and fairer treatment for American producers and consumers struggling during the pandemic, and it is an important platform for opening up additional opportunities for US exporters in the future. As a result of this agreement, exports increased 27 percent from their lowest level in May. While this agreement continues to bear fruit, it is important that we treat it as the first step on a long journey to a more open market and fair treatment of US goods and services, not an excuse to relax when there is still a lot of work to be done. .

While the President is empowered to administer US foreign policy and has been delegated authority to address some trade matters through executive action, our Constitution empowers Congress to write and pass trade policy. The first agenda of the Congress must re-enact the Generalized System of Preferences (GSP) and the Miscellaneous Tariff Bill (MTB) – two major programs that enhance our competitiveness. Both programs will end at the end of the year if there is no swift action by Congress. Updating these programs, which already enjoy bipartisan support, will reduce costs and uncertainty for American businesses as they continue to grapple with the effects of COVID.

The GSP benefits all Americans by encouraging economic growth in developing countries while providing the US with tools to promote good practices such as protecting intellectual property, providing fair market access to US exports, and treating US investors fairly. Letting the GSP slip would raise the average tariffs by 3.5 percent for small businesses in Nebraska while lowering our leverage to ensure developing countries raise standards and play fairly in global markets.

MTB allows the process to waive input tariffs for domestic manufactures that cannot be obtained domestically. This helps our manufacturers and promotes American competitiveness. According to the National Association of Manufacturers, a comprehensive MTB renewal by the end of this year could remove more than $ 1.5 billion in tariffs for products not made or available in the US. That is money that US producers can invest in their facilities and labor. .

We also know American business and agriculture depend on overseas markets to grow. President Trump understood that and made it a priority by negotiating and signing the United States-Mexico-Canada (USMCA) deal, and the Phase One deals with China and Japan. His administration has also made significant progress in comprehensive negotiations with Britain and Kenya, and has agreed small deals that tackle obstacles we face in other markets. As a result, all sectors of the US economy, including agriculture, are gaining access to markets that have been banned for years.

The significant progress we have made in the last four years must be the blueprint for future trade opportunities that benefit American businesses, agriculture and consumers. Going forward, we need to continue the extraordinary work that President Trump and his administration have done on trade. We have to take advantage of this momentum and leave nothing on the table. Through my position on the Ways and Means Committee, I will continue to seek new markets for Nebraska products and push to reduce the barriers our exporters face in overseas markets so US farmers, ranchers, producers and service providers can compete and win worldwide .


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Brazil Emerges As The World’s Leading Offshore Oil Producer | Instant News

Sharp oil prices, the COVID-19 pandemic, and increasing geopolitical uncertainty have done little to blunt Brazil’s epic oil boom. In September 2020, Brazil has jumped to the third largest supplier crude oil to China, the world’s second largest economy. The scale of Brazil’s deep sea offshore oil boom is underlined by the pre-salt Tupi oil field which for the third quarter of 2020 reached an impressive milestone by pumping out two billion barrels of accumulated oil production in the decade since commercial oil production began. The main reason for this is the rapidly growing popularity of sweet medium crude oil produced from Brazil’s pre-salt oil fields, particularly the world’s largest deep-sea Tupi oil field, and the Buzios field.

Petrobras, which is spearheading development of Brazil’s vast offshore pre-salt oilfield, reported record crude exports for September 2020, of which about 87% were shipped to China. There are signs off the coast of Brazil oil explosion will continue unhindered despite China oil imports slow down. Petrobras Chief Executive Roberto Castello Branco believes China has the capacity to absorb all crude oil produced for export by Brazil, even with production growing steadily. The increasing popularity of Brazilian sweet medium-grade Lula and Buzios crude pumped from the Tupi and Buzios fields has led them to sell at a premium to Brent in China. The soaring demand for these crude blends has caused their price gap to widen further, fueling speculation that they could become world oil. most expensive crude oil varieties. Petrobras is active looking for new an export market in Asia where demand for light sweet crude is increasing on a push for higher levels of gasoline, diesel and maritime fuels. India has become a major target market. The world’s fifth largest economy, prior to the COVID-19 pandemic, was developing at a solid clip of GDP growth to 8% in recent years, making it the fastest growing major economy globally. While the IMF predicts that India’s economy will contract by more than 10% during 2020, it is expected to return to growth in 2021 with the IMF anticipating an impressive annual GDP growth rate of 8.8% year on year. Solid economic growth in India coupled with a large, growing, and getting richer population will cause it demand for energy and fuel has increased significantly. US sanctions preventing Indian refiners from buying Venezuelan crude have forced them to look elsewhere while enforcing them IMO2020 this year has substantially increased demand sweet crude oil in Asia.

The new maritime regulations have also triggered an increase in demand for Brazilian medium sweet crude from Singapore, which is a regional shipping hub. This increased demand for Brazil’s sweet pre-salt medium crude oil will be met by an ever-increasing supply. Despite the COVID-19 pandemic and sharply weakening oil prices following the March 2020 price crash, Brazil’s pre-salt production continues to increase. Data from Brazil’s national petroleum regulator, the National Agency for Petroleum, Natural Gas and Biofuels (ANP – Portuguese initials), shows September 2020 (in Portuguese) pre-salt oil production was nearly 2.6 million barrels per day, which was 13% higher than the previous year. That sees pre-salted oil production responsible for 89% of Brazil’s total petroleum production for the period compared to 78% for the equivalent month in 2019.

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The volume of sweet medium crude pumped from Brazil’s pre-salt oil fields will continue to grow. Petrobras, which is responsible for more than 60% of Brazil’s pre-salt oil production, is investing in enhancement activities in its pre-salt assets, particularly the Buzios oil field. Brazil’s national oil company recently announced purchase of shares of Shell and Petrogal Brasil for $ 353 million, a subsidiary of Galp Energia from Portugal, in the floating production storage and offloading vessel P-71. The FPSO will be stationed at the Tupi field but Petrobras has chosen to place the ship, which has a production capacity of 150,000 barrels per day, at the Itapu oil discovery site. The Brazilian national oil company expects to bring Itapu online during 2021, much earlier than its planned 2024 start date. Therefore, Petrobras, owner of the 65% Tupi oil field, has partnered with Shell partners who have 25% shares, and Petrogal, the owner of the remaining 10%, to design a new development plan for Tupi which will later be built. sent to ANH in 2021. Tupi’s huge potential is underlined by Galp’s belief that deep sea oil fields have up to 20 billion barrels of oil. Production from the Buzios pre-salt field grew at a rapid rate reaching an average of 604,000 barrels per day for the third quarter of 2020, or more than one-third of Petrobras’ total pre-salt oil production for the period. For September 2020 alone, Buzios produced an average of 749,810 barrels of oil per day while 1% lower than August 2020 is an impressive 84% greater than the same period during 2019. Sweet medium crude, which has an API gravity of 28.4 degrees, low sulfur content of 0.31%, and low aromatic, is rapidly gaining popularity among Asian refiners. Responding to this increased demand, especially from China, Petrobras stepped up activities in the field. Brazil’s national oil company plans to install 12 FPSOs in the Buzios field by 2030 which is expected to pump more than 2 billion barrels of crude daily, making it Brazil’s largest oil field. Meanwhile peak oil demand, which is expected occur by 2030, and sharply weakening oil prices are weighing on petroleum investment, strong demand for Buzios crude and low break-even costs, which estimated to $ 35 a barrel, underlining the reasons for Petrobras’ significant investment in the oilfield.

Brazil is rapidly heading for the world’s major offshore oil boom. The combination of the enormous potential for oil, a blend of light and medium crude with very low sulfur, and the increasing demand from refineries for lighter sweet crude coupled with low break-even costs make it a very attractive jurisdiction for investment from major global energy companies. For this reason, investment will continue to flow into Brazil’s pre-salt oil basins strengthening the Latin American nation’s proven oil reserves and production despite headwinds filed by the COVID-19 pandemic, sharply weakening oil prices, and the emergence of peak oil demand.

By Matthew Smith for Oilprice.com

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Brazil Wants To Seize Market Share In The World’s Fastest Growing Oil Market | Instant News

With state-controlled Petrobras working to increase its oil production and exports, Brazil is looking for new options to diversify its export market. While crude oil exports to China will continue to increase, after hitting 1 million barrels per day (bpd) in April this year, Brazil is interested in exploring other options for its growing supply, with a focus on Asia. Petrobras aims to produce more bpd to meet this growing demand. The move will also allow Petrobras to minimize its dependence on China.

“We hope this has a positive evolution in the near future, in about three years having a consolidated position in the (Indian) market,” Petrobras CEO, Roberto Castello Branco, told Reuters earlier this week.

India is an attractive market for upstart suppliers, it is hoped to be the largest source of energy demand growth to 2050, with an anticipated demand of 6 million barrels per day by 2025. Furthermore, the perceived disruption of Covid-19 begins to decrease due to the demand for fuel from farmers for the harvest, as well as an increase in annual demand for the festival season, helping the industry to bounced.

Meanwhile, India is looking to diversify its suppliers, with Brazil appearing to be an attractive opportunity. Last January, Oil Minister Dharmendra Pradhan met with Brazilian Minister of Mines and Energy Bento Albuquerque to discuss potential partnerships between the two countries.

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India, the world’s third largest oil importer, currently imports approx 84 percent of the oil, relying on oil-rich regions to meet their needs. About two-thirds of India’s oil comes from the Middle East, mainly Iraq and Saudi Arabia.

Pradhan tweets from the meeting earlier this year, “India is diversifying its crude supply and our oil company has expressed interest in sourcing more crude from Brazil, if it is offered favorable commercial terms. Also seeking interventions for early monetization of our existing investments in the Brazilian energy sector. “

The partnership between the two countries looks hopeful as Prime Minister Narendra Modi approved the signing of a Memorandum of Understanding (MoU) with Brazil to cooperate on oil and natural gas, in the United Cabinet in early 2020. We can look forward to even greater cooperation in exploration. and production by both parties, as well as enhancing research and development collaborations in the near future.

By Felicity Bradstock for Oilprice.com

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Switzerland will ban deducting bribes from taxes starting in 2022 | Instant News