Latest News
-
New York City's major power line goes offline for the second time this July
The $6 billion transmission system that was designed to bring Canadian hydropower to New York City has been shut down a second time in the last month. This disrupted a clean energy project that was meant to reduce New York City's dependence on dirty fossil fuel generators. The 1,250 megawatt Champlain Hudson Power Express transmission line (CHPE) can provide up to 20% New York City electricity. Hydro-Quebec announced on Monday that the transmission line is offline because of a cable problem. Hydro-Quebec and private-equity company Blackstone Inc. developed the project. New York ISO's data, which controls the flow of electricity in the state grid, shows that the shutdown is expected to last until at least Friday. Hydro-Quebec has confirmed that the current cable problem with?CHPE is not related to a shutdown on July 1. The line began operation in May after a 15-year planning and development period. The energy demand in New York is expected to increase this week as temperatures reach 100 degrees Fahrenheit. According to federal data, the city's reliance on generators that have?the best pollution controls will be 6 times higher than those with the most advanced emissions controls due to CHPE's power outage. The 339-mile (546km) 'power line' stretches along the length of New York State from the Canadian border up to Astoria in Queens where the?energy is fed into the New York City grid. New ISO stated that its energy demand planning studies didn't assume CHPE was available to meet summer peak demand. "That's one of the reasons why the grid worked reliably during this heatwave earlier in August." While reserves were tight, we had enough generation and reliability resources to meet the demand regardless of CHPE status," New York ISO spokesperson Kevin Lanahan stated. (Reporting by Tim McLaughlin, Editing by Chizu Gregorio and David Gregorio).
-
Sources say that Riyadh Air is looking at ordering 25-30 Boeing 787s as well as more Airbus.
Industry sources say that Riyadh Air is looking at acquiring between 25 and 30 additional Boeing 787 Dreamliners, by utilizing its contractual rights with the U.S. aircraft manufacturer. It may also increase its Airbus order list. The airline, which last week conducted 'its first commercial revenue flight', has ordered up to 72 Boeing Dreamliners by 2023. This includes 39 definitive orders and options for another 33. Sources said that Riyadh Air could announce its intention to convert the majority of these options into outright purchase as soon as next week at the Farnborough Airshow. However, they warned that details are still being discussed. Riyadh Air and Boeing declined to comment. Riyadh Air has also placed an order for?25 Airbus A350 - 1000 long-haul 'jets, with options to purchase another 25. Industry sources claim that some of those?orders may also be turned into firm orders. Airbus declined comment. (Reporting and editing by Louise Heavens, Tim Hepher)
-
Hapag-Lloyd's outlook for the year is raised on the back of strong demand and freight rates
Hapag-Lloyd, the German'shipping company', raised its financial -year outlook on Monday. It cited strong market -demand and positive freight rate developments. Hapag-Lloyd now expects its earnings before interest tax, depreciation, and amortisation for the full fiscal year to range from $2.7 billion to $3.7 billion. This is up from the previous forecast of between $1.1 billion to $3.1 billion. The company has also increased its group's?earnings prior to interest and taxes (EBIT), for the year, to a range of $100 million to $1 billion. The forecast was subject to high uncertainty due to the volatility of freight rates, as well as major geopolitical issues. Hapag-Lloyd & Maersk will resume some sailings through the Suez Canal. This Asia-Europe trade route was abandoned by most shippers after Yemeni Houthi rebels destroyed vessels in 'the Red Sea. Shippers were forced to use the much longer route around Africa's Cape of Good Hope. However, firms are considering returning to the Red Sea Route. Shipping rates increased as a result of the longer trips?around Africa.
-
US lawmakers debate whether to end twice-yearly clock switching
The U.S. House of Representatives will vote this week on a measure to extend daylight saving time year-round. Another group of legislators wants standard 'time to be permanent. The House Rules Committee will meet at 4:00 p.m. Monday, the House Rules Committee will meet to determine if any amendments are needed before the House takes up the measure this week. The House Energy and Commerce Committee approved the Sunshine Protection Act 48-1 on May 1. In March 2022, the U.S. Senate voted to permanently extend?daylight savings time but the House did not take up the issue due to opposition. Hawaii and Arizona don't observe daylight saving time. The supporters of the measure claim that the time change causes sleep disruptions, increased workplace injuries and car crashes. They believe that brighter evenings will also spur more economic activity in winter. Since the 1960s, daylight saving time has been implemented in the United States. This involves moving the clocks one hour forward during the summer months. Two lawmakers introduced the Sunshine for Our Kids Act last week. The act makes standard time the default time for all states, but allows them to opt in for daylight saving time if that is what they prefer. Reps Pat Harrigan, Mary Gay Scanlon and others argue that standard time is better for mornings to be in sync with the natural light?and circadian rhythms. Donald Trump has been aggressive in his push to end the?bi-annual clock-?switching. The U.S. Senate will need to decide again if it wants to consider the measure, which is opposed by U.S. Senator Tom Cotton of Arkansas, a Republican, and others. Cotton said that it would lead to absurdly late winter dawns and force many children to attend school in darkness. In World War II, the United States implemented a year-round daylight savings time. They did it again in 1975 to reduce energy consumption. It was unpopular, and Congress repealed the law later that same year. (Reporting and editing by Nick Zieminski.)
-
Canada's Oil Sands Alliance signs agreement to advance Pathways Carbon Capture and Storage Project
The Oil Sands Alliance, the Alberta government and the federal government of Canada announced on Monday that they had reached an agreement for the 'Pathways carbon capture and storage 'Project. This was a condition set by the government to'move forward with the new West Coast oil pipe. The Oil Sands Alliance said that the Pathways Project, when operational, will be able to transport and safely store approximately 6 million metric tonnes of CO2 per year by the mid-2030s. Early July, Canada announced plans to build a pipeline from Alberta to the Pacific Coast. This would allow the fourth largest oil producer in the world to have greater export capacity to Asia. It would also reduce its dependence on the United States. Mark Carney has tried to strike a balance between Alberta's goal of increasing oil production and?environmental concerns. He has said repeatedly that federal support for the new crude pipeline in Canada depends on oil sands producers in Canada implementing a large-scale project to capture and store carbon emissions. This would reduce emissions from Canada's most polluting sector. The biggest Canadian oil sands companies -- Suncor Energy and Canadian Natural Resources, Cenovus Energy Imperial Oil, ConocoPhillips Canada, ConocoPhillips Canada, Cenovus Energy -- proposed the Pathways Project in 2022 but refused to assume?the cost of its construction. The initial estimate was C$16.5 billion. However, the companies and the government have agreed to scale down the project and build it in phases. The government-owned Trans Mountain ?Corp will build a new 1-million-barrel-per-day pipeline in coordination with Pembina Pipeline Corp PPL.TO. Pembina will have a 10% stake during construction and the opportunity to increase that up to 10% after the project is operational. The government of Premier Danielle Smith has stated that construction could begin as soon as September 2027.
-
First time in Brazil, container ship is refueled with ethanol
The container carrier, operated by CMA CGM, refuelled?with the ethanol during a port stop in Santos, Brazil. This is the first time this type of fuel has been used to move the engines of deep-sea vessels in Brazil. CMA CGM IRON received 650,000 liters anhydrous alcohol from Brazilian ethanol and Sugar merchant Copersucar in a refueling service provided by Danish marine services group Bunker One. The CMA vessel, one of the 12 vessels operated by the group, is equipped with a trifuel engine. This engine can run on any combination of bunker fuels or methanol. The CMA vessel is a tiny part of the 700-vessel fleet, but it's used to test lower-carbon fuels. "We view bioethanol as an additional solution to reduce greenhouse gas emissions. The Santos test facility shows that bioethanol can be used in a safe and efficient manner under real commercial conditions, said Christine Cabau Woehrel. "We want to demonstrate with this operation that the ethanol is already available as a solution to decarbonize maritime industry", said Copersucar?Chief executive Tomas Manzano. Copersucar manages the Evolua Etanol distributor, which is owned by dozens of sugar and ethanol producers in Brazil. The company estimates that ethanol reduces carbon emissions from a vessel by 70% compared to bunker fuel derived from oil. However, they said that the price was higher. The companies believe this could be offset by creating and selling carbon credits. Marine?transportation is one of those sectors that are harder to reduce carbon emissions. The International Maritime Organization has a?net-zero carbon goal for 2050. The IMO has not yet reached an agreement with companies on legally binding measures. This makes any initiative like CMA's a voluntary one. Reporting by Marcelo Téixeira, Editing by Chizu Nômiyama
-
UN shipping agency opposes any fees in the straits after Trump plans Hormuz fee
The?U.N. The 'U.N. Trump stated in a post on Truth Social that the process would start immediately. He did not elaborate. A spokesperson for the United Nations said, "We're aware of this post and are awaiting more details." International Maritime Organization. "We've always maintained a consistent stance against fees - IMO is opposed to charging fees for the passage through straits that are used for international navigation." There is "no legal basis" to introduce tolls for transiting through a strait. Officials from the shipping industry expressed their concern at?the newest development. They added that, in their opinion, such a move would violate international law. "How will this make it safer for people to travel through the water and what guarantees will this provide?" One official who declined to be named said about Trump's position. (Reporting and editing by Sharon Singleton, Susan Fenton, and Jonathan Saul)
-
Residents say that gunmen have killed at least 18 people, in the state of Benue, Nigeria.
Residents and local officials reported that gunmen had killed at least 18 people in Nigeria's northern state of?Benue in a weekend assault. This prompted a protest march by angry locals, who blocked the roads to protest against the violence. Benue is a frequent site of conflict between farming communities, cattle?herders and armed groups. These conflicts are often fueled by competition for land and resources. Udeme Edet, Benue Police spokesperson, gave a lower toll of deaths for the attack that took place in the early hours of Sunday morning. He said: "Eight people were killed and five others wounded." Residents in Otukpo Nobi, a community within the Otukpo Local Government Area said that armed men who were suspected by the?locals as Fulani herders opened fire between 3:30 and 4:30 a.m. Maxwell Ogiri, the local government chair, 'linked the violence to the murder of the head of the herders association two weeks ago. The attack was not immediately claimed by any group. Women and youths protested in 'the town of Otukpo. Reporting by Ahmed Kingimi and Hamza Ibrahim; Writing by Chijioke Ahuocha; Editing Helen Popper
First Venezuelan oil deals signed by US companies are with trading houses, not US majors
Oil trading companies have a clear advantage over U.S. energy giants who are wary of legal and credit risks. They also get to take advantage of a lucrative business opportunity with Venezuela, the country that has the largest crude reserves in the world.
Donald Trump, the U.S. president, said that U.S. oil majors will invest billions in Venezuela in order to rebuild its deteriorated oil sector after the capture by America of President Nicolas Maduro in early January. Trump met with top oil executives at the White House Friday, as his administration outlines its long-term plan for raising $100 billion to increase Venezuelan oil production.
The first companies to secure any business in the wake ?of the U.S. military ?action in Caracas, however, were Dutch-based trader Vitol and Singapore-headquartered peer Trafigura, rather than U.S. majors.
Four industry sources who were familiar with the talks said that the U.S. Government chose the merchant houses as they are better equipped to get Venezuelan oil flowing again. Washington must first do this before it can start reconstruction, in order to ensure that the revenue generated by oil exports under U.S. oversight can be used to fund the interim government of Delcy Rodriquez in Caracas.
White House official: "Securing and marketing initial barrels Venezuelan crude oil at record speeds was done to the benefit of both the American people and Venezuelans."
Venezuela's revenue is derived from oil exports. It has been deprived of these proceeds for a little over a month as Trump increased pressure on Maduro.
Washington and Caracas have finalized a $2 billion agreement to sell up 50 million barrels to U.S. refining companies and other buyers - oil which had been stuck in storage tanks and on ships in Venezuelan water due to the blockade.
The White House official stated that it was important to facilitate the initial oil sales to ensure that funds would flow back to Venezuela to pay for daily services. A process has been put in place to maintain a steady flow of production and sales as well as refining?of Venezuelan crude oils.
Richard Holtum, the chief executive of Trafigura, said that the company is preparing to load its first shipment this week.
GLOBAL NETWORK ADDED APPEAL TO TRADERS
Trading houses were in competition with Chevron to secure supply deals. Chevron, the only U.S. major oil company that operates in Venezuela as a joint venture partner with Venezuelan PDVSA state oil firm, is the sole U.S. oil giant. Chevron holds a license issued by U.S. authorities that exempts the company from sanctions imposed by the United States to cut off Maduro's oil revenue.
Trafigura, a global shipping fleet, and logistics network are among the few companies capable of executing a deal this large and complex, Trafigura stated.
Vitol has worked on complex transactions that require agile operations, logistics and finance for a long time.
Three participants in the White House meetings said that the traders won the Venezuelan oil deals as well because they have a 'higher risk tolerance and more agility than the major publicly traded oil companies.
One source said that legal teams and advisors had discouraged some of the biggest U.S. producers of oil from participating in the first oil shipments because Venezuelan creditors could seize the revenues.
How can we guarantee that creditors won't resort to legal action, whether in the U.S.
Three sources with knowledge of the situation said that the U.S. Government told trading companies they would protect them by controlling bank accounts tied to sales and shielding the proceeds from creditors.
Trump acted quickly to accomplish this on Friday. The White House announced on Saturday that Trump issued an executive ordering blocking courts and creditors impounding the revenue from the sale Venezuelan oil in accounts controlled by the U.S. Treasury.
Venezuela is in debt to foreign creditors for more than 150 billion dollars. Trump has asked the oil companies to rebuild Venezuela's industrial sector. ConocoPhillips, Exxon Mobil and others are still trying recover nearly $14 billion in relation to asset expropriations that occurred 20 years ago.
INVEST AND REBUILD
Trump and his team told oil companies that they must invest in the sector and rebuild it first before repaying any debt.
Three shipping sources have said that U.S. companies selling oil would be less willing to accept the risk of compliance involved when they sell oil from tankers blacklisted by Washington because of their involvement in sanctioned trade.
The shadow fleet of vessels that transport sanctioned oil is a large number of vessels with 'old' and 'outdated or unknown insurance arrangements and safety certificates, which are required to enter many ports. Two sources claim that they do not meet the strict chartering requirements set by the big U.S. Oil companies.
One source stated that the U.S. oil majors may be reluctant to get more involved in short-term crude oil trading because of their investments in China. Majors have invested tens and tens billions in China.
Beijing has condemned U.S. actions in Venezuela. China is one of Venezuela's biggest creditors. PDVSA has paid its debts with oil shipments.
The majority of the $2 billion in oil that was to be finalized for shipment to Chinese refiners had been originally planned. Since the U.S. sanctions against Venezuela's main traders were imposed in 2020, Chinese independent refiners are the largest buyers of Venezuelan oil.
The big U.S. Oil companies are hoping that the U.S. will lift its sanctions on the oil trade and Venezuela will adopt the legal framework which would encourage them to invest and work with Venezuelan entities.
EXXON CEO CALLS VENEZUELA "UNINVESTABLE"
Exxon CEO Darren Woods said Venezuela was "uninvestable" at the White House. He also stated that security guarantees were required and a hydrocarbon reform would be needed before Exxon returned to the country. Woods stated that Venezuela had twice taken Exxon assets.
Trump said on Sunday that he could block Exxon's investment in Venezuela. He said, "I didn’t like Exxon’s response."
Conoco CEO Ryan Lance stated at the same event that his company is the largest non-sovereign creditors, with approximately $12 billion in compensation pending for expropriation. Trump told Lance that the U.S. wouldn't look back on what was lost in the past.
Two sources confirmed that under the new agreement, trading houses will also provide lighter oil to Venezuela to dilute heavy oil before export, as Venezuela needs it. On Saturday, sources in the oil industry said that Vitol was set to load its first cargo. Reporting by Dmitry Zhdannikov in London and Jonathan Saul, Marianna Pararaga and Arathy Sommesekhar, Sharaq Khan in New York, Jarrett Renshaw, Washington DC, and Sharaq Khan, New York; writing and editing by Liz Hampton, Diane Craft, Jason Neely, and Simon Webb.
(source: Reuters)