Transportation

El Nino, just two years after the most severe drought in the history of the Panama Canal forced ships to wait for weeks for passage, and triggered multimillion-dollar bidding wars for transit slots. Now El Nino threatens again the rainfall that feeds this waterway. El Nino is strengthening and reservoirs are shrinking. The industry is preparing for another disruption on one of the most important waterways in the world. Some?ships have already taken long detours through Africa. The Panama Canal Authority reversed its previous promise to limit 'passage' as it prepares for an El Nino that is longer than usual....

This week, during the U.S. Canada trade talks, a social media post from U.S. president Donald Trump stating that the Keystone XL pipeline "may 'be awoken?from the grave" caught the attention of many. Here's a look back at that project, which ran through parts of Canada as well as the United States. Also included are details about a new oil pipeline proposal that takes a slightly different path. What is Keystone XL? Keystone XL is a crude pipeline that was proposed. It would have been 1,181 km long and carried approximately 830,000 barrels of oil per day from the oil...

The president of Oil Sands Alliance, an industry group that represents Canadian Natural Resources, Imperial Oil, Suncor Energy, Cenovus Energy and ConocoPhillips Canada, said in an interview this week that the country's largest oil producers plan to make a final investment decision by late 2027 on their 6-million-tonne "carbon capture and storage" project. This is a critical part of the country's plans to increase oil production while keeping emissions under control, according the Oil Sands Alliance. Kendall Dilling, the head of the industry group representing Canadian Natural Resources (CNR), Imperial Oil (Suncor Energy), Cenovus Energy (CenocoPhillips Canada), and ConocoPhillips Canada...

Canadian pipeline companies are proposing billions in new projects, despite the fact that?oil-sands firms are reluctant to commit to significant expansions due to uncertainty over climate policies and global demand. Six pipeline projects in Canada are currently underway or have been proposed to transport oil from the United States to markets on the Pacific Coast or the United States. According to calculations, if all were built, Canada's export capacity would increase by 45% or 2,25 million barrels a day in 2035. To fill all these pipes, the Canadian oil supply would have to grow by over a third in 2034....

Oil market behavior is becoming more and more like a permanent reality. It's not just a temporary shock. The hopes of a diplomatic breakthrough are fading nearly six months after the war broke out between the U.S. The interim ceasefire that was agreed upon on June 17 is now effectively over, the 60 day negotiating period is finished, and neither Washington or Tehran appear willing to compromise about the future of Strait of Hormuz. Both sides have instead dug in. Iran warned that tensions would escalate if Washington did not fully implement the interim peace agreement within weeks. An Iranian...

Washington Dulles Airport's board of directors will vote Wednesday on a $19.9-billion overhaul plan. This includes $3.75-billion to build new underground tunnels and replace the slow vehicles that transport passengers along tarmac. In a summary posted on Monday, Metropolitan Washington Airports Authority stated that the $6.2 billion renovation of the main terminal of the Washington area's primary international airport is scheduled to begin late in 2027. The Metropolitan Washington Airports Authority said the construction of new?tunnels will begin in early 2020, to remove "People Mover' vehicles and extend to a new concourse. Construction of one new concourse planned would not...

Iraq's plans for a 'pipeline' to transport oil through Syria in order to avoid future disruptions to the Strait of Hormuz would likely take four years to build and cost $15 billion, according to sources familiar with the project. U.S. officials and energy executives have billed the plan as part of an effort to reduce the industry’s dependence on the Strait of Hormuz, which has been closed largely by the Iran War. The initial feasibility study is being funded by a consortium that includes Chevron. Over the next two-year period, the Strait will become irrelevant. Last week, U.S. Treasury secretary...

At midday on Sunday, more than 200,000 'utility customers' were without power in Hawaii. Hurricane Lala had brushed past the 'Big Island and was subsequently reclassified as a tropical storm. According to poweroutageus.com, about 219,000 customers in Hawaii were without electricity as of 12:05 pm HST (2205 GMT). State officials stated during a press conference that the number of outages on Oahu had dropped from 220,000 to 130,000 by Sunday morning. Hawaii's Governor Josh Green announced on Sunday that state officials had received reports about at least 100 damaged homes. Lala moved west-northwest with a speed of almost 16 mph....

Nearly 130,000 utility clients in Hawaii were without power Sunday morning, after Hurricane Lala had brushed past the Big Island and was downgraded to tropical storm. As of 4:35 am, data from poweroutageus.com. According to HST (1435 GMT), the majority of the affected areas are on the Big Island. Honolulu County, and Maui County. Hawaiian Electric informed customers on Saturday night that repair efforts had been hampered due to the hurricane force winds and rain. They cited flooded roads and fallen trees. The Hawaii Department of Transportation released a video showing flood waters engulfing roads. Authorities reported that one person...

Hurricane Lala blew into Hawaii on Saturday with high winds and heavy rain, leaving more than 40,000 utility users?without power? across the state. The National Hurricane Center issued a warning of "life-threatening conditions". According to the poweroutage.com site, 42,889 Hawaii customers were without power at 2:14 pm HST on Sunday (0014 GMT), including 31,792 Big Island residents and 7,203 Maui County residents, which include the islands of Maui Lanai and Molokai. The hurricane center issued an advisory at 2:pm. HST predicted rain of up to 25 inches on the Big Island and even more in some areas. It also predicted...

Open Interest (ROI), every Friday, distills the previous five days' financial week into five charts that highlight the most important trends, surprises, and overlooked moves. 1. HORMUZ REALISTIC CHECK CLYDE RUSSEL, 'ROI Asia Commodities and Energy'?Columnist : Middle East crude exports, including?flows across the Strait of Hormuz?, have been depressed this summer, say commodity analysts Kpler. The data is in line with other vessel tracking companies but it stands in stark contrast to the claims made by U.S. Energy Sec. Chris Wright this week that 15 million barrels of crude oil per day were leaving the region. This includes 9...

PJM Interconnection is the largest?U.S. grid operator. Grid operator proposed on Thursday to federal regulators a backstop plan to purchase more?power?generation in order to avoid outages due to the surge of electricity needs for data centers. PJM, the company that manages electricity for 67,000,000 people across a region stretching from Washington, D.C., to Chicago, has filed the proposal at the U.S. Federal Energy Regulatory Commission, who would need to approve any move by the grid operator. The proposal highlights the growing tension between data center expansion and the ability of the power grid to keep pace. If PJM is unable...

Sources say that Russia has rerouted Kazakhstan's crude exports to the Black Sea port of Novorossiysk from the Baltic port?of Ust-Luga, in order to free up more capacity for Russian oil exports?from the Baltic due to a heightened Black Sea security risk. Sources familiar with the issue said that Kazakhstan exports crude oil through Novorossiysk as well as Ust-Luga. However, Moscow wants to route all Kazakh transit volumes through the Black Sea starting in late August and continuing until the end of September. This move would allow Russia to replace Kazakh crude barrels at Ust-Luga by its own crude exports....

Three sources familiar with the matter confirmed that the suspension of crude oil exports was due to a drone attack on Friday. This added to the disruptions at one of the country's main export outlets. Sheskharis, Russia's largest oil export facility in the Black Sea, handles approximately 700,000 barrels of crude oil per day. The shutdown of the Sheskharis terminal adds pressure to Russia's energy infrastructure, which has been repeatedly attacked in recent months. On Friday, the administration of Novorossiysk sent out a new drone alert to residents. This indicates that there is a continuing threat in the port area....

Ukraine will ship more grain via the?Danube River and neighbouring countries in?eastern Europe after a Russian?blockade? of key Black Sea ports caused exports to plummet 76% year-onyear so far this August, said the state railway operator on Thursday. Ukrzaliznytsia reported that grain exports have reached 201,700 tons this month. In a recent report, it stated that "the pace of export shipments has been extremely low due to the blockade at seaports." Since the end of December, Russian attacks on Ukrainian Black Sea export terminals, vessels and ports have effectively stopped shipments. Ukrzaliznytsia stated that export cargo is being redirected towards...

According to industry sources, and calculations, Belarusian gasoline and diesel supplies to Russia reached a monthly record in July. Fuel shortages were caused by unplanned outages at Russian oil refineries after months of relentless 'Ukrainian drone attacks. According to industry data and calculations, the Russian gasoline production had dropped early in July, to around 65% the average seasonal consumption. Diesel production had also fallen to the same level as domestic demand. The?Russian Government, in response to rising fuel prices at retail and wholesale, banned diesel exports. However, it allowed exemptions under previous contracts and intergovernmental agreements. Export restrictions for gasoline...

The Caspian Pipeline Consortium suspended operations several times this week due to safety concerns and a shortage of tankers. This is because the main export route for Kazakh crude has been hit by drone attacks. Since the middle of the last month, the loadings of the pipeline have been disrupted. The pipeline carries around 1.8% of the global oil supply, from Kazakhstan to Russia’s Black Sea Coast. This adds to the supply disruptions linked to the U.S. and Israeli war against Iran. Sources said that the pipeline was only temporarily reopened this week and closed on Wednesday. Shipowners are reluctant...

Two traders say that oil shipments from Russia’s western ports will increase by 4% this August, compared to July, as drones attack domestic refineries, allowing more crude to be exported. Meanwhile, a strong demand in Asia is encouraging sellers to ship more. According to preliminary data collected by traders, exports from the Baltic port of Primorsk along with the Black Sea Port of Novorossiysk are expected to reach around 2.7 million barrels a day in August. The Ukraine's attack on Russia's refining facilities has meant that less oil can now be processed, and it must be exported. The traders say...

A source familiar with the operational data said that Kazakhstan's crude oil and gas condensate?production?fell from 2,16 million barrels per days in June to?about 1,85 million barrels a day or 7,6 million metric tonnes in July 2026. Sources said that the decline in oil exports was due to disruptions on the Caspian Pipeline Consortium (CPC), the main route of export for Kazakh crude. Kazakhstan's oil output is heavily dependent on the CPC. It has no other real options to export the vast majority of its oil output elsewhere. Last month, oil exports via CPC were interrupted several times. Loadings at...

Serbia has received another waiver from the United States to allow its Russian-owned oil firm NIS to continue importing crude until August 28, said energy minister Dubravka Djedovic Handanovic on Friday. The U.S. Office of Foreign Assets Control has granted a waiver to NIS which operates Serbia's sole oil refinery. This will give NIS more time as Hungary's MOL oil and gas firm negotiates with the Russian majority share in the company. "Thirty-days is good news. NIS will have enough time to buy and bring in enough crude oil," Djedovic handanovic said during a live broadcast by state television RTS....

Chevron exceeded analyst expectations for second-quarter earnings?on Friday. It reported its highest quarterly profit for at least six-years as the U.S./Israeli war against Iran disrupted world energy markets and boosted?profits?for the largest oil companies. LSEG data shows that adjusted earnings of $12 billion or $6.06 a share beats the average analyst forecast of $5.56 a share. Chevron's shares rose about 2% during premarket trading. The results were similar to those of European oil giants TotalEnergies, Shell and others who also reported record profits in the second quarter. Higher oil prices were a major factor. ExxonMobil's quarterly profit missed analyst expectations...

Three industry sources reported on Thursday that drones had attacked two more oil tankers as they approached the terminal of 'the Caspian Pipeline Consortium,' on 'Russia's shores' of 'the Black Sea. This has further harmed prospects for exports to Kazakhstan, who uses this outlet. Authorities alleged that the closure of the terminal earlier this week, which accounts for more than 80 percent of Kazakhstan's oil exports, was due to safety concerns. This forced Kazakhstan to reduce its oil production. Sources said that the CPC should have provided oil to the HERA and ALATAU tanks. HERA, however, was set ablaze and...

Fuel shortages are affecting Russians in all 11 time zones. Ukrainian attacks on oil refineries have disrupted supply and caused long queues, high gasoline prices, and even rationing?in some regions. Fuel access has improved in Moscow and other cities, mainly due to measures such as increasing imports and clearing low-quality fuels for use. However, the situation in Russian-annexed Crimea is still tense. Fuel shortages began in June, when some regions began to restrict gasoline and diesel use. Here is the situation in some Russian regions: CENTRAL RUSSIA According to 'witnesses, local media, and service aggregators who monitor the availability of...

According to three sources, the freight rates for tanker shipments from western ports of Russia's Urals crude to India have fallen in July compared to last month. This is because increased vessel availability and the summer season eased pressure on the market. The lower transportation costs are a relief for Russian oil exporters whose margins were under pressure due to the wider discounts on Urals crude, as a result of weak demand in Asia. Sources claim that the cost to ship a cargo of 100,000 metric tonnes of Aframax from the Baltic port of Primorsk, in the Baltic Sea, to...