Obama’s Emissions Plan Bullish for Gas: Sikorski

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June 3 (Bloomberg) -- Trevor Sikorski, head of natural gas, coal and carbon at Energy Aspects, talks with Guy Johnson about the impact of President Barack Obama’s proposed rules to reduce greenhouse-gas emissions. He speaks on Bloomberg Television’s “The Pulse.”

Welcome back.

Just before president obama spoke to europe today, he agreed to cut power plant emissions.

The idea is to cut gases from power plants by 30%. this is bullish for gas prices.

It is going to mean more demand from the united states for gas.

Absolutely.

It will take a while to get there, obviously.

The rules will not be applied immediately, but we think even in the medium term you will see that demand impact happening quickly.

The reason for that is at the moment there is something called the mercury and air toxics standards.

Something the epa is doing as well.

That is going to lead to a large number of plants closing down.

A lot of plants are considering what to do.

These are coal plants which are quite dirty.

They're spewing out mercury or sulfur.

They can invest and get scrubbers on.

These rules suggest it tips the balance.

You should probably think of closing.

What delay are we going to see built into the impact of these proposals having an effect on the ground?

The epa on the one hand have moved quite quickly.

They're told the states that they have until 2016. come up with a working plan so we know how you will meet these things.

They don't actually kick in until 2020. it gives quite a bit of slippage.

That will be to deal with the litigation they are expecting to come.

Doesn't it have any impact on the revision upwards of u.s. net gas exports?

There is obviously a quota.

Are we there now?

Yeah, it is interesting.

The dre -- the doe approved these exploits.

They want to do another study to see if we should export more than 12 bcf for day -- per day.

They are getting kind of anxious about a lot of domestic gas demand.

If we start exporting fake volumes that will have a big effect heard does a spread between european gas prices and u.s. gases start?

Is artie started because that is how markets work.

Definitely, when they start exporting and big volumes, you'll see convergence of global gas prices.

You're not get down to equalization with the states, because it cost my to liquefy and ship.

There is a window which was shot, but it will bring it closer.

That is for sure.

And a global climate deal?

It has got to be seen as positive.

The big sticking issue on the climate deal is the legal basis of that agreement.

It makes the world follow a binding legal agreement.

You could have the next president saying look, we have domestic targets, we can agree on new targets.

Very hard to get anything ratified through the u.s. congress on any subject.

Climate is going to be even

This text has been automatically generated. It may not be 100% accurate.

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