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ONEOK's first-quarter profits are marginally lower due to higher operating costs
ONEOK, the U.S. pipe-line operator, reported a marginal drop in its first-quarter profits on Tuesday. This was due to higher operating costs and divestments. In extended trading, shares were down 3.7% to $84.60. Operating costs for the first quarter of 2018 increased by 32%, to $752 millions. This was mainly due to higher employee expenses. Over the last two years the company has diversified its portfolio by acquiring assets, such as a Gulf Coast NGL pipe system from Easton Energy or Medallion Midstream or EnLink Midstream. ONEOK will begin transporting refined products, oil and other petroleum products in 2023 after acquiring Magellan Midstream for $18.8 Billion. ONEOK's 60,000-mile network of pipelines transports crude oil, refined products, and natural gas. In 2024, the company also sold three natural gas pipelines to DT Midstream in exchange for $1.2 billion cash. The quarterly adjusted core profits for all four segments increased due to higher contributions from the acquisitions of EnLink, Medallion and Medallion. The company expects a net profit of $3.21 to $3.69 billion for the current year. The Tulsa-based company, which has its headquarters in Oklahoma, reported a net profit attributable of 636 million dollars, or $0.04 per share for the quarter that ended on March 31. This compares to $639 million dollars, or $1.0 per share a year ago. Tanay Dhumal in Bengaluru and Mrinalika Roi reported the story.
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Mexico's Olmeca will restart its refinery and the halt was "nothing serious," says President.
Mexico's new Olmeca refining plant is ready to resume production, Mexican president Claudia Sheinbaum announced on Tuesday. She denied that the temporary outage was caused by sabotage at its catalytic unit. The Olmeca Refinery, located in the port of Dos Bocas is still a long way from achieving the goals for gasoline and diesel set by Sheinbaum’s predecessor. The president said "It's nothing like that" in response to a reporter's question about alleged sabotage by the state-owned energy company Pemex. He did not provide any further details. The catalytic unit is a key part of the refinery which produces gasoline. It uses fluidized catalysts to break heavy hydrocarbon molecules down into gasoline molecules. Sheinbaum stated that she would have a Pemex representative report back on the incident. It's not that the refinery has suddenly stopped working. She said, "It's not a big deal. It was producing 100,000 barrels per day, and it is about to restart. It's not serious." Pemex has not responded to an information request about events at the refinery. The date of any incidents or current production levels were also not provided. In February, the refinery processed only 6,797 barrels per day (bpd) and in January none at all. The company had reported that the pumps for crude oil Pemex were leaking more salt and water than usual. The refinery has the capacity to process up to 340,000 bpd. Processing has been marginal since June 2024. Last week, it was reported that Pemex had exported two shipments ultra-low sulfur diesel (ULSD), processed at Olmeca. This is because the infrastructure required to distribute motor fuels that Mexico imports has not been completed. (Reporting and writing by Ana Isabel Martinez, Rafael Escalera Montoto, Editing by Stefanie Eschenbacher and Alistair Bell).
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Deep-sea Mining Company is the first company to request international permits from Trump
The Metals Co, a deep-sea miner, asked Tuesday for the Trump administration to approve plans to mine international seabeds. This is the first time a company has sought permission from the government to operate outside U.S. territory waters. Last week, President Donald Trump issued an executive order to increase mining in domestic and international waters. The goal was to improve U.S. market access and to reduce China's control. The order is a violation to international law, according to China, and it has heightened tensions between Washington, the United Nations, and the International Seabed Authority. The world's oceans contain a large amount of polymetallic nodules, which are potato-shaped rocks that contain the building blocks of electric vehicles and electronic devices. Deep-sea miner supporters say that it will reduce the need for large land-based mining operations, which are not always popular with local communities. Environmental groups have called for the activity to cease, warning that industrial operations at the ocean's bottom could lead to irreversible biodiversity losses. Companies are already lined up to mine U.S. water. The Metals Co, based in Vancouver, asked the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration to issue a commercial recovery license under the Deep Seabed Hard Mineral Resources Act of 1981 for operations in a part of the Pacific Ocean known as the Clarion-Clipperton Zone between Hawaii and Mexico. The timing of the application coincided with an hearing Tuesday on deep-sea mines by a U.S. House of Representatives Subcommittee, at which Gerard Barron of The Metals Co testified. America urgently needs critical minerals. "It needs to secure these minerals," said Barron. He estimated that the company could remove more than one billion nodules with manganese and copper as well as nickel, cobalt, and cobalt, which would meet U.S. requirements for decades. Glencore has agreed that it will buy metals mined from the seabed. The Metals Co anticipates a first determination of whether the commercial application meets U.S. Regulatory requirements within 60-days, following which an environmental and technological review of the entire application will begin. The company also applied for 2 exploration licenses within the zone. NOAA representatives were not available for immediate comment. Greenpeace's Louisa Casson stated that the application will be remembered as a disregard for international law, scientific consensus, and encouraged other government to defend international laws and cooperate against "rogue deep-sea mines". The Metals Co shares fell 1.7% in trading on Tuesday to $3.25. HEARING Republicans organized the hearing, and many Republicans support the emerging deep-sea mine industry. Rep. Paul Gosar (a Republican from Arizona) said, "It can help America break free of the Chinese supply chain yoke and restore mineral independence." Democrats responded by calling deep-sea mines uneconomical, and "subsidized plundering" of oceans around the world. Maxine Dexter is an Oregon Democrat. She said, "The financial models of the industry are based on wildly unrealistic assumptions and do not reflect the volatility and realities of global mineral markets." Impossible Metals (a private company) told the hearing that it has no plans to continue operating without further environmental testing. A Massachusetts Institute of Technology engineering expert told the hearing that the effects of deep sea mining might not be as bad as people had thought, but said the practice needed robust regulation. (Reporting and editing by Nia William; Ernest Scheyder)
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Colombian oil and Gas Group proposes measures to mitigate E&P decline
The main Colombian oil, gas and energy service companies' guild proposed several measures on Tuesday to reduce the decline in exploration and production of oil (E&P) and to tackle the natural gas shortage in South America. Campetrol proposes a number of measures, including declaring offshore gas projects essential for future supply, adjusting contract terms to encourage increased production, as well as maximizing project lifespan. Why it matters The guild has warned that blockades, extortion and labor regulations have increased operating costs, which are compromising sector competitiveness. This is a threat to the short-term self-sufficiency of the country. The Colombian gas imports are only a part of the total demand. By the Numbers According to the latest figures from the National Hydrocarbon Agency, Colombian oil reserves will fall 2.6% by 2023, to 2.0 billion barrels of crude oil, or 7.1 years worth of consumption. Gas reserves, which are crucial to President Gustavo Petro’s desire to transition to renewable energies, fell 15.8% to 2.4 trillion cubic foot in 2023, equivalent to 6.1 years' consumption. KEY QUOTES Nelson Castaneda (President of Campetrol) told reporters that the proposal was based on rigorous evidence and aimed at preserving the economic and technical sustainability of the sector. CONTEXT Petro's government, which he assumed office in 2022 and is now focusing on solar and wind power, wants to reduce the dependency of the country on fossil fuels. The Colombian economy benefits from fossil fuel exports, taxes, and royalties. However, the energy shift is happening despite these incomes. (Reporting and writing by Nelson Bocanegra, Editing by Aida Pelaez-Fernandez, Marguerita Choy).
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What could be causing the Iberian Power Outage?
A massive blackout in Spain, Portugal, and parts of France has halted trains and bank machines, as well as traffic lights. It was one of the biggest power system failures ever seen in Europe. Cyber Attack? The Spanish grid operator Red Electrica has ruled out cyber attacks as the cause, but the High Court of Spain said that it will open an investigation in order to determine the reason. Spain's Prime Minister Pedro Sanchez Red Electrica said on Tuesday that just because it had ruled out any cyber attacks on its systems did not mean they could not have occurred. EXPLAINATIONS SO FAR Red Electrica reported that it had identified at least two incidents in southwest Spain of power loss caused by solar plants. This led to instability in the electrical system, and a breakdown in its interconnection with France. Electrical system collapsed, impacting both Spanish and Portuguese systems. During the power outage, Spain exported electricity to France and Portugal. The exports to France reached close to their net export capacity up to 1000 local time. Red Electrica data shows that exports to France ceased at 1235 local times, from 868MW earlier. On Tuesday, EU Energy commissioner Dan Jorgensen announced that the European Union would begin a comprehensive investigation into the power outages occurring in Spain and Portugal. The Spanish grid is connected to those of France and Portugal as well as Morocco and Andorra. What causes power outages? Extreme weather conditions such as high winds, storms or lightning are the most common causes of unplanned power cuts that disable electricity on a wide scale. At the time of the collapse on Monday, it was a fair day. When there are faults in power stations, distribution lines, or substations, they can cause power outages. To ensure stability, the flow of electricity between systems is kept at 50 Hertz. Backup systems will disconnect power generation sources and other assets from the grid if that level changes. SPAIN'S ENERGY MULTIPLE Data from the think tank Ember show that Spain is among Europe's largest producers of renewable energy. It relies on wind and sun for 43%, which is well above the average global rate. Red Electrica's data shows that solar photovoltaic (PV), wind, and nuclear power plants made up 59% of Spain’s electricity during the blackout. Solar PV was 50%, wind 3% and nuclear almost 15% on the same date last year. The data revealed that in just five minutes between 1230 and 1035 local time (1030-1035 GMT), on Monday, the solar PV production dropped by over 50%, from 18 gigawatts to 8 GW. The cause of the drop is unknown. What factors could be involved? Experts and industry sources stated that the Spanish grid had very little inertia. Inertia is the energy stored in large rotating steam or gasoline turbine driving and rotating generators. It acts as a cushion as it can be quickly used to compensate sudden changes in supply or demand. Solar provides a small rotating mass for the grid. Around 5% of Monday's electricity was generated by gas-fired generators. In Spain, coal generation will be phased out by 2025. The largest coal-fired plant in Spain was shut down last year. How can power be restored? A "black start" is the process of restoring electricity after a major outage. This involves slowly restarting each power plant and reconnecting it to the grid. Spain increased its power imports and turned on more hydropower and gas plants as it tried to regain power. EXCESS RENEWABLES? The collapse on Monday has led to a debate over whether the volatile supply of solar and winds has made Spain's electricity systems more susceptible to an outage. The Prime Minister Sanchez stated on Tuesday that there is no problem with excess renewable energy. He added that the demand was low at the time of blackout and there was an ample supply. EU Commissioner Jorgensen The cause of the blackout can't be attributed to a particular energy source. The rapid growth of renewables has led to grid overloads during periods with high sunlight and low demand. Wholesale electricity prices have sometimes fallen to zero or even negative, forcing solar farms into a reduction of their output. Analysts predict that solar farms will continue to expand in Spain and Portugal, resulting in a rise in negative price-hours in 2025 (reporting by Nina Chestney and Pietro Lombardi; editing by Jason Neely and Susan Fenton; and Gareth Jones).
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House Republicans propose new $200 fee for electric vehicles and $15 billion to control air traffic.
As part of a tax reform package under consideration, the U.S. House Republicans propose $15 billion for new funding to reform air traffic control and a $200 new fee on electric vehicles. Sam Graves will present his proposal to the House Transportation and Infrastructure Committee, which is headed by him. The proposal calls for new funding up to 2029, including for the replacement of aging infrastructure such as air traffic towers, radars and telecommunications systems as well as for $1 billion in air traffic controller hiring. Joe Biden, the then-president of the United States at that time, proposed in March 2024 to spend $8 billion for five years on replacing or modernizing more than 20 air traffic control systems and 377 radar systems. The FAA has a quarter of its facilities that are at least 50 years old. Aging systems have caused delays on numerous occasions, including the major issue in Newark Monday. The bill proposes also a new electric vehicle fee of $200, because the majority of federally funded road repair revenue is raised through gasoline and diesel taxes that EV drivers don't pay. The bill also proposes a $100 hybrid fee and a $20 federal registration fee for all vehicles beginning in 2031. These fees would generate at least $50 billion in ten years to repair highways. Some states charge electric vehicle fees to cover the costs of road repairs. Congress has not raised fuel taxes in the last 30 years to cover rising road repair costs. In February, some Republican senators proposed a Taxes on electric vehicles for road repairs: $1,000 Since 2008, over $275 billion in general funds has been diverted to road repair. Transportation Secretary Sean Duffy intends to ask Congress to provide tens billions of dollars over a five-year period to upgrade the Federal Aviation Administration's air traffic control infrastructure, and to increase hiring. Flights have been delayed due to a persistent shortage of controllers. In many locations, controllers work six-day weekends and mandatory overtime. About 3,500 air traffic control positions are not enough to meet the FAA's target staffing levels. Safety incidents such as the collision of an Army helicopter with an American Airlines on January 29, which killed 67, and other accidents have led to calls for reform. On Tuesday, a coalition of aviation groups that represents airlines, manufacturers and labor unions called Graves’ proposal “a much-needed downpayment” on achieving the benefits for Americans who fly or ship goods every single day. (Reporting and Editing by Peter Graff. David Shepardson)
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Sources: China waives tariffs against US ethane imports
Two sources familiar with the matter confirmed on Tuesday that China had waived the 125% duty on imports of ethane from the United States, imposed earlier in the month. Ethane is one of a number of products which have been exempted. This move will relieve pressure on Chinese companies that import U.S. Ethane for petrochemical manufacturing as well as providing an outlet for natural gas liquid (a by-product of U.S. Shale Gas production). Sources said that the tariff on ethane was waived recently. One source said that the waiver had not been announced publicly. Due to the sensitive nature of the issue, they declined to give their names. After office hours, it was impossible to reach the China Customs and China Ministry of Commerce. Last week, it was reported that certain pharmaceuticals, aerospace and semiconductor products were also affected. You can also get a grant Tariff exemptions are being offered by Beijing to try and reduce the economic impact of the trade war between the United States and China. China raised its duties on U.S. imports, including ethane to 125% in early this month. It was a response to President Donald Trump's decision that the No. 2 economy of the world should be singled out for higher duties. 2 economy for higher duties. According to the U.S. Energy Information Administration, China purchases nearly half of U.S. exports of ethane, which reached a record 492,000 barrels a day in 2024. EIA predicts that U.S. exports of ethane will increase to 530,000 barrels per day in 2025, and 630,000 in 2026. Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group are among the Chinese ethane importers. The U.S. exporters include Enterprise Products Partners, Energy Transfer, and Energy Transfer.
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Outage traps Portuguese and Spaniards, who are unable to pay their bills and feel powerless
The massive power outage on Monday reminded the Portuguese and Spaniards of their dependence on electricity in modern life and how they can be rendered helpless in an instant. Some people were trapped in lifts during the eight-hour power outage that began around midday. Others had to descend multiple flights of stairs with their phones as light. Metros and trains came to a complete halt. People were either trapped in carriages for hours by electric doors, or forced out to walk, jump over the tracks and pick their way across. Ana Cordero, a Puerto Rican tourist, was stranded for three hours on a train heading to Barcelona before she was evacuated. She could not access any information other than a message over the train's tannoy stating that there was a blackout. She said that the staff opened the toilets to people, but the battery of the train died. "It was so stupid, because everything was electronic." "Even to wash your hand, you had press a button but it didn't work," Cordero stated. As people tried to contact loved ones or schools for their children, phone and internet signals dropped and then disappeared completely. Many people who were desperate to get news turned to their car radios or analogue ones if they had them. They could not receive the news on their mobile phones or websites. Traffic lights were out of order and people had difficulty navigating without the aid of mapping apps. Many garages were closed off by electric gates and doors, so not everyone was able to get their cars. No Cash? No Cash? Taxis were unavailable, and those who tried to use them were turned away for not having cash. They were also forced to barter with the driver to pay later. Many supermarkets were unable to accept payments and closed, while others quickly ran out basic supplies such as milk, bread, and water. It's a good reminder of how dependent we are on technology and electricity, even just the basic connections. They're so important to our daily lives," said Albert Fernandez (26), an engineer who was in a queue outside a Barcelona electronic store trying to access its wifi. Locals and tourists found out that electronic locks on the doors of their accommodations prevented them from getting in. Visitors were checked in by torchlight at a guesthouse located in Ronda, south Spain. Owners of bars, restaurants and food stores were concerned about the costs of perishable products that had been left in refrigerators and freezers. Some opened their doors to customers and only accepted cash, while others shut down. People who depend on home medical devices, such as oxygen concentrators that have finite backup power sources, and people using mobility aids such as wheelchairs were among the worst affected. Lola Diaz Fernandez (58) was stuck in the Valencia train station after her train to Madrid was delayed. She was allowed to spend the night in the station, along with others who had mobility issues. She said, "I have problems with inflammation of my legs when I sit for long periods." "Thank goodness, I was able to stay here because there were adapted toilets. It'll probably take me a few days to recover. Andrei Khalip, a deputy bureau chief in Lisbon who uses a wheel chair, was left without electricity for 11 hours. He was trapped in his apartment because the lift had broken down. He said: "The worst part was that I couldn't work because of the fact that my phone signal would not come through. The feeling of dependence on electricity and communication networks and realising how much we depend on them made me feel helpless." Enjoy a Day Off Unexpected afternoons off from work or study allowed many Spaniards to enjoy the best of what the country is known for. This included sunlit squares and drinks on terraces. Games were also played and people got together with their neighbours at spontaneous street parties. Friends shared photos on social media when power was restored. They returned to playing board games such as Scrabble, without being distracted by mobile phones. And they ate family dinners on gas stoves, with candlelight. Some people posted that the blackout demonstrated the need to stockpile emergency supplies, which the European Union had said that citizens should do in the event of natural disasters or cyber attacks. As the lights twinkled across Madrid, residents screamed and clapped in relief. Reporting by Iberia Bureau, writing by Aislinn laing; editing Alexandra Hudson
Orient Overseas, a logistics firm, orders 14 container ships worth $3.08 Billion.
Orient Overseas International, a Hong Kong listed company, announced on Tuesday that 14 container ships worth $3.08 billion were ordered by its units from China COSCO Shipping Corp.
Container transport and logistics companies said the vessels equipped with methanol-dual-fuel engines will boost competitiveness in traditional markets and lower costs.
A unit of the state-owned China COSCO Shipping Corp. will construct nine vessels. An associate will build all the other vessels.
China COSCO Shipping Corp. also owns Chinese container shipping company COSCO Shipping Holdings.
Orient Overseas said it plans to borrow and use external debt to fund 60% of the cost per vessel. The remaining 60% will be funded by internal resources.
The vessels are expected to be delivered between 2028 and 2029. (Reporting and editing by Vijay Kishore in Bengaluru, with John Biju reporting from Bengaluru)
(source: Reuters)