Latest News
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CERAWEEK - US Interior Secretary urges more drilling and mining on public lands
U.S. Interior Secretary Doug Burgum said to a room full of energy executives that he wanted their industries, which include mining and drilling on America's Public Lands, to increase the amount of these activities. He told them: "We love YOU! ". Burgum's remarks at the CERAWeek conference in Houston highlighted President Donald Trump’s agenda of reducing red tape to free up fossil fuels and metals. He told the crowd, "If we are going to drill baby drill, we must also be asked to mine baby mine." Oil prices are at a three-year low, but it is unclear whether energy companies will increase investment. Burgum believes that the Trump administration could unwind 20% to 30% of the country’s regulations and estimates that this would sharply reduce the cost of oil production. He said that the National Energy Dominance Council he heads, which coordinates government policies in order to maximize production, would focus on speeding up project approvals for energy and mining projects. Burgum said that increasing the U.S.'s electricity generation and transmission capability is crucial to winning "AI arms races" with China. Burgum said that he believed that enforcing the sanctions against Iran, which aim to reduce its oil exports to zero could stop that country from funding "terrorist groups." (Reporting and editing by Leslie Adler; Timothy Gardner)
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Seafarers union: UK ship crash investigation must be transparent
The collision between a tanker ship and container ship near the English coast must be investigated transparently and with international coordination, said a union of seafarers on Wednesday. The Solong cargo ship, which was flying the Portuguese flag, collided with the Stena Impeccable, a tanker anchored in the water that carried U.S. military aircraft fuel, on Monday. The collision resulted in massive fires and explosions. The 36 crew members were brought to land. The International Transport Workers' Federation, the largest seafarers' trade union, called on all jurisdictions to work together to determine how the incident occurred. Stephen Cotton, ITF General Secretary said that "there are still many unanswered questions in the aftermath of this tragedy." (Reporting and writing by Jonathan Saul; editing by William James).
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If Trump's trade war escalates, Canada may restrict its oil exports.
Jonathan Wilkinson, Canada's Energy Minister, said that if the trade dispute escalates with the U.S. further, Canada may take non-tariff steps such as limiting its oil exports or levying duties on exports. "When we talk about non-tariff reprisal, it can be about restricting the supply or putting our export duties on products. Wilkinson told a reporter that it could go beyond energy and minerals. He also suggested that non-tariff measures could be used on minerals of critical importance, forcing the U.S. even more to depend on China. He said, "Everything's on the table." Canada is the largest supplier of oil imported to the United States. It provides around 4 million barrels a day, mainly to Midwest refineries that are designed to run the Canadian grades. Alberta, the province that produces most of Canada's crude oil, would resist any attempts to limit exports. "It is not on the table." "Zero," said Alberta Premier Danielle Smith at the CERAWeek Conference in Houston, Texas on Wednesday. Alberta owns most of the oil and natural gas that is exported to the United States. She said that they would never do this to their friends or allies. Smith continued, "the temperature has cooled a little, the trade war has de-escalated." The increased tariffs by President Donald Trump on imports of steel and aluminum went into effect on Wednesday. They now amount to 25%, as the exemptions have ended. Canada announced 25% retaliatory duties on these metals, along with computers and sports equipment worth $20 billion. Canada has already imposed a tariff of a similar value on U.S. products in response to Trump's broader tariffs. Canada has limited options for sending oil to other markets, so any restrictions on Canada's oil imports from the United States will hurt Canadian producers. Wilkinson stated that the Trans Mountain pipeline, as well as rail, could be used to transport some Canadian oil. He added, "I don't believe the threat to Canada’s oil producers is as great as it might be in other sectors." Greg Ebel CEO of Canadian pipeline operator Enbridge said that restricting oil exports into the United States was "an unwise decision". Wilkinson said that Canada may impose tariffs on U.S. Ethanol as part of the second tranche of trade sanctions if Trump escalates the trade war. Wilkinson stated that U.S. Ethanol, an important trade product for U.S. Farmers, would be "absolutely" included in the list if Trump were to move forward with his plans to impose tariffs of 25% on Canadian goods by April. Exports of U.S.-made ethanol to Canada have reached record levels in recent months, helping Canada to meet its clean fuel program. Wilkinson stated that it is cheaper than Canadian ethanol due to the subsidies provided by the U.S. Renewable Fuel Standard. According to the U.S. Energy Information Administration, U.S. Farmers sent a record 1,54 million gallons (roughly double) of ethanol to Canada last September, roughly twice the amount three years earlier. Reporting by Jarrett Renshaw in Houston and Arathy Sommesekhar; Editing and proofreading by Nia and Lincoln Feast
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Excelerate's exec: Argentina will only import LNG from one terminal in winter
A company executive confirmed that Argentina had not requested an extra floating regasification facility from Excelerate Energy in the coming winter, because the South American nation plans to import less liquefied gas this year. Derek Wong (Excelerate's Vice President of Government Relations) told the CERAWeek Conference in Houston, that the floating storage unit and regasification facility (FSRU), the company's only import facility, could be sufficient to meet the demand this year depending on the weather. In the past, Argentina has faced high costs for LNG imports. However, an increase in domestic production of natural gas and LNG cargos has led to a reduction in imports via pipeline of gas from Bolivia. Daniel Gonzalez, Vice-Minister of Economy and Energy in Argentina, said at a conference earlier this week that this year the country would import less LNG than last year. He declined to provide figures. Gas consumption can increase in Argentina during the cold winters of the Southern Hemisphere, which sometimes requires the installation of another FSRU. In the past two years, between 41 and 42 cargoes have been imported via FSRUs in Bahiablanca and Escobar. After President Javier Milei’s economic reforms last year, Argentina had a $5.7 Billion surplus in its energy trade balance. This was a huge achievement for a nation that struggled to cover energy import costs previously.
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Algeria purchases at least 450,000 t wheat in tender from traders
Initial assessments by European traders indicate that Algeria's state grain agency OAIC bought at least 450 000 metric tons milling wheat on Wednesday in a global tender. They said that the cost of a metric tonne, including freight and transportation (c&f), was around $268.50. Initially, the exact size of the order in terms of tonnage was not clear. Estimates ranged between 450,000 and 650 000 tons. 450,000 tons were repeatedly mentioned as a minimum purchase. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. Algeria frequently purchases much more than the nominal volume. The sellers are free to choose from a variety of approved origins for their wheat. The traders initially thought that the majority of the wheat they purchased would come from the Black Sea Region, especially Ukraine. Some Romanian and Bulgarian wheat could also be provided. France, which is a regular wheat supplier to Algeria, wasn't expected to be the source of wheat. Market talk has it that Algeria is tacitly refusing to purchase French wheat, despite the fact that French wheat was reportedly offered in the Wednesday tender. Wheat was requested for shipment from two main regions, including Europe: May 16-31 and May 1-15. The shipment date is one month sooner if the wheat comes from South America or Australia. Reporting by Gus Trompiz from Paris and Michael Hogan from Hamburg. Mark Potter is the editor.
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TC Energy CEO: Company remains optimistic about the US despite trade tensions
The CEO of Canadian Pipeline Company TC Energy Corp. stated that it continues to prefer the U.S. to Canada when it comes capital investment, despite the escalating trade tensions. Francois Poirier, a Canadian economist, said: "I believe this is temporary." This was in response to the recent flurry of tariff announcements by Donald Trump of the United States against Canada. Canada announced on Wednesday that it would implement retaliatory duties on C$29.8 Billion of goods imported from the United States, effective Thursday morning. This was in response to U.S. 25% tariffs on Canadian steel and aluminum. Poirier, who was in Houston for the annual CERAWeek conference on energy, said that volatility and uncertainty were the "enemies of investment". He said that despite the current trade situation, TC Energy still believes that the Trump Administration's pro energy stance will help the company build natural gas pipelines in the country. Poirier stated that this is the energy-literate administration of the past 50 years. The message to the private sector was 'figure it out and move faster. We will remove any obstacles to that.' TC Energy, who last year spun off their oil pipeline business to pursue a strategy focused on natural gas, forecasts that the demand for natural gas in North America will grow by 40 billion cubic feet per day in the next decade. This increased demand for natural gas presents opportunities for the company to grow. TC Energy is also looking at Canadian opportunities. This includes the possibility of increasing the capacity of the Coastal GasLink Pipeline to supply more gas to LNG Canada's export terminal located on the British Columbia coastline, if its proponents decide to proceed with a second phase of the proposed development. On a conference with analysts last week, Poirier revealed that TC Energy will focus its discretionary expenditures on the U.S. He explained that the Canadian regulatory system is more restrictive and presents more risks to project developers compared to the U.S. system. "Right Now, the risk adjusted returns and the certainty in timelines are better" Poirier stated from Houston on Tuesday, but he also added that there had been recent public discussions in Canada about the need to diversify the country's energy export markets. Poirier stated that "we feel a great level of excitement, and an urgency to seize this opportunity for Canadians."
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Algeria purchases milling wheat at tender, traders claim
Initial assessments by European traders indicate that Algeria's state grain agency OAIC bought milling wheat at an international auction which closed on Tuesday. They reported that the average purchase price was $268.50 per metric ton, including freight and cost. Initial estimates did not specify the exact size of the order in terms of tonnage. Initial estimates varied between 500,000 to 650,000 metric tonnes. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. Algeria usually buys much more than a nominal volume of 50,000 tons. Wheat can be supplied from any approved origin. Wheat is shipped in two phases from the main regions of supply, including Europe: 1-15 May and 16-31 May. The shipment date is one month sooner if the wheat comes from South America or Australia. Reporting by Gus Trompiz, Paris and Michael Hogan, Hamburg
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Ship owner: Jet fuel cargo on Stena Immaculate mostly intact after collision with UK ship
The majority of jet fuel onboard Stena Immaculate's cargo, which is US-flagged, was intact and did not leak, Stena Bulk, the vessel owner, said on Wednesday. On Monday, the Portuguese flagged Solong container vessel crashed into a tanker transporting jet fuel to the U.S. Military. The British police arrested Solong’s captain a day later on suspicion of gross negligent manslaughter. Stena Bulk Chief Executive Erik Hanell said, "There is no fire on the Stena Immaculate any more." In the next 24 to 48 hours, we will have a clearer picture of the entire salvage operation. Hannell stated that two of the vessel’s 18 fuel tanks leaked. This represents an estimated 10% volume. He said: "I guess the total amount of jet fuel onboard is about 50,000 cubic metres, so that's probably about the maximum... hopefully less." Hannell, a London-based mariner who had met the 23 American crewmembers of the vessel in the UK earlier, reported that the mariners are in good health. He said, "They were shaken up, of course." (Reporting and editing by Gareth Jones, Bernadettebaum, and Jonathan Saul)
DHL Group CEO: Global trade will grow despite US tariffs
Tobias Meyer, CEO of the DHL Group in Germany, said that global trade will grow, but less vigorously, due to the reaction to President Donald Trump’s tariff policies.
Meyer noted that this segment was experiencing positive growth.
According to DHL Trade Atlas 20, prepared by the delivery company and New York University’s Stern School of Business, the global goods trade will expand at a 3.1% compound annual growth rate from 2024-2029. This is a slightly faster rate than the previous decade.
DHL is the parcel shipping arm of Germany's Deutsche Post AG. It's one of the largest package delivery companies in the world. United Parcel Service, FedEx and their U.S. rivals are considered economic bellwethers as they cater to a wide range of industries in many countries.
The DHL Trade Atlas states that India, Vietnam Indonesia and the Philippines will lead the trade growth between 2024 and 2029.
They said that even if the U.S. government implements its entire proposed tariff increase and other countries retaliate in kind, the global trade will still grow over the next 5 years, but at a slower pace.
The United States is both the largest importer of goods and second largest exporter. The U.S. shares of world exports and imports are currently 13% and 9% respectively. This is enough to make a significant impact on other countries, but not to determine the future of international trade unilaterally, according to the authors. Reporting by Lisa Baertlein, Los Angeles; Editing and proofreading by Lisa Shumaker
(source: Reuters)