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Tesla shares are up as Politico reports that Musk and the White House will hold a call
Tesla shares recovered from their previous session on Friday after Politico reported White House aides had scheduled a phone call with Elon Musk, CEO, to ease tensions, following a public spat with U.S. president Donald Trump. In premarket trading, shares of the EV manufacturer were up 4.7% to $298.1. The stock fell 14.3% on Thursday, and the market lost approximately $150 billion - this is the largest one-day loss in value ever. Musk said that Trump should be impeached while Trump threatened to stop government contracts for Musk's businesses. Their relationship turned into a social media brawl. Fiona Cincotta is a senior analyst at City Index. She said that Trump's threats to end Tesla's subsidies and contracts are unlikely. I don't think this will escalate into something more than a few days of a verbal war. Trump criticised Musk's CEO in the Oval Office. The once close relationship deteriorated in public within hours as Musk and Trump exchanged insults about their respective companies, Trump's Truth Social, and Musk's X.
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After a fatal air crash, US Democratic Senators propose radical reforms to the air safety system
Seven Democratic Senators introduced air safety legislation on Thursday after a deadly collision between an Army Helicopter and an American Airlines Regional Jet in January near Reagan Washington National Airport that killed 67 people. Lawmakers have asked why the Federal Aviation Administration has not acted for years in response to close calls that involved helicopters near Reagan. The bill would mandate a review on helicopter operations and passenger safety at major airports. It would also require new FAA safety assessments after fatal passenger airline crashes and the use of ADS-B technology, an advanced aircraft tracking system. The FAA didn't immediately respond to our request for comment. Ted Cruz, Republican Chair of the Senate Commerce Committee, held a series aviation hearings, and demanded that the FAA and Army take action to reduce collision risks. Cruz did not immediately respond to a question about whether he backed the Democratic proposal. Senator Maria Cantwell said that the accident "exposed critical oversight gaps in aviation safety." She said that the legislation "closes danger loopholes which allowed aircraft to operate with essential safety technology without, and mandates modern surveillance system that enhances pilot awareness of aircraft nearby, and ensures that the FAA acts on data instead of ignoring them." The Army Black Hawk helicopter was not using ADS-B during a routine mission of training when it collided into the American jet. In April, the FAA announced that government helicopters would be required to use ADS-B near Reagan National except for "active national security missions." Families of the victims of the American plane crash have said that the bill is a "meaningful step forward" in aviation safety. This issue has become personal and urgent for the families. After a near-miss on May 1, the FAA suspended Army helicopters flying around the Pentagon. In recent months, there have been several other close calls that were troubling. In March, the National Transportation Safety Board reported that there have been more than 15,200 incidents between commercial aircraft and helicopters that had a lateral separation of less that 1 nautical mile, and a vertical separation of less that 400 feet. There were also 85 close calls during this period at Washington Reagan. In March, the acting FAA administrator Chris Rocheleau admitted that the data were troubling. Rocheleau stated that "clearly something was missed". (Reporting and editing by Leslie Adler, Jamie Freed and David Shepardson)
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Rumo cancels agreement to sell stake in Brazil Port Terminal to Bunge, Zen-Noh Grain
Brazilian rail operator Rumo has terminated a 2024 deal to sell a part of the terminal at Latin America’s largest port, to U.S. commodities traders Bunge and to a subsidiary from Japan’s Zen-Noh Group. Rumo stated in a filing with the Securities Commission that the conditions of the agreement for a 50% stake in the XXXIX Terminal, located in Santos Port, had not been fully met before the deadline. It did not give any further details. The parts were Announcement of the Deal Rumo reported that the agreement would be worth 600 million reais ($107.44 millions) in May 2024. Bunge released a statement confirming the termination, stating that it had accepted Rumo’s decision. Zen-Noh Grain didn't immediately respond to an outside of normal business hours request for comment. Caramuru Alimentos is the Brazilian grain processor that owns the other 50%. ($1 = 5,5845 reais). (Reporting and editing by Brendan O'Boyle; Patricia Vilas Boas, Andre Romani)
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Canadian regulator confirms that the Prince Rupert Gas Transmission Pipeline project has begun
The British Columbia Environmental Assessment Office determined on Thursday that the work on the Prince Rupert Gas Transmission Natural Gas Pipeline Project has already been substantially begun, according to the provincial government. B.C. said that the decision meant a certificate of environmental assessment for 2014 will remain valid indefinitely unless it is suspended or revoked under the Environmental Assessment Act. In a press statement, the government confirmed this. The PRGT project, which spans 900 km from Hudson's Hope to Lelu Island near Prince Rupert on Canada's Pacific Coast. The 900-kilometre PRGT project will run from Hudson's Hope in northeastern B.C. The Nisga'a First Nation, and Western LNG acquired it from TC Energy in March 2024 for the purpose of supplying natural gas to a proposed 12 million tonneS/year Ksi Lisims liquefied-natural facility. The certificate of environmental assessment issued in 2014 required that substantial progress be made on the project by November 25, 2020. The B.C. The B.C. According to the government statement, compliance and enforcement officers would continue to monitor PRGT throughout its construction and operation in order to ensure that it met all environmental requirements. (Reporting by Anjana Anil in Bengaluru; Editing by Nia Williams)
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US ends 'Quiet Skies,' airline passenger screening program
The Transportation Security Administration is discontinuing the "Quiet Skies", aviation security watchlist program, which designated certain passengers as higher-risks for enhanced screening. Homeland Security Secretary Kristi Nuem stated that the program cost $200 million per year and was "used to target political enemies and benefit political allies." She said that the TSA will continue to perform vetting tasks related to commercial aviation security. The TSA screens over 900 million passengers annually. Republicans are concerned that Tulsi Gabrield, a former legislator, was briefly listed on the Quiet Skies List by the TSA. Trump appointed Gabbard as the director of National Intelligence. Bennie Thompson, the top Democrat in the panel, denied that the program was a political one and criticized the decision to end it, saying, "this shameful effort to dismantle a National Security Agency which protects us against terror attacks will make us less secure." He said that Gabbard was "automatic and well-deserved" to be listed. The process was the same for both the Republican and Democratic administrations, including the Trump administration. Mark Green, the Chair of the House Homeland Security Committee, praised the decision made to terminate the program. Green stated that while the Quiet Skies Program was designed to reduce threats to U.S. Aviation Security, it has now been revealed to be a political watchlist. On the list, passengers are subjected to enhanced screening. This includes a patdown and an explosives detection, as well as a physical search of their property, electronics and shoes. In a 2020 report, the inspector general criticized the program. It said that the TSA had not "developed outcome-based performance measures and goals to demonstrate program efficacy" and there were software algorithm and systems malfunctions. In 2018, the American Civil Liberties Union said that the program was "covert surveillance" of innocent flyers and that the TSA used "secret criteria including travel patterns and specific behavior to determine which travellers to target." After Umar Farouk Abdulmutallab's 2009 attempt to detonate an explosive hidden inside his underwear aboard a U.S. aircraft near Detroit, the U.S. Government sought to improve screening for potential threats. TSA began using factors based on risk in 2012 to identify passengers who may be at higher risk and assign them to the Quiet Skies Program. In 2018, the Federal Air Marshal Service started prioritizing air marshals for flights with Quiet Skies passengers.
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Britain is urged to reduce energy costs before implementing industrial strategy
Legislators and business leaders warned on Friday that Britain's first Industrial Strategy in eight years would be undermined without measures to lower the sky-high costs of energy faced by businesses. The strategy has been developed by the ministers and will be presented with the multi-year review of spending due on Wednesday. It will highlight the key sectors that are most important to the Labour government in order to achieve its growth goals. In a recent report, the Business and Trade Committee of the UK Parliament stated that "high electricity prices are discouraging investment and affecting the ability of UK industry to compete globally and decarbonise." We recommend that industrial strategy include measures to level the playing fields with international competitors in industrial energy prices. Make UK, an industry group, said on Monday that Britain must reduce its industrial energy bills which are among the highest in advanced economies to achieve its goal of a healthy manufacturing industry. The committee has recommended cancelling the climate levies on energy costs for industrial use and stated that the report is further proof of the harsh realities faced by British industry. Stephen Phipson CEO of Make UK said that the Government has a moonshot to provide companies with the stability and certainty they need through a robust Industrial Strategy. He added that failure to meet high expectations was "totally unacceptable". Rain Newton-Smith, CEO of the Confederation of British Industry, also called for the government to remove “policy costs” from electricity bills in a speech delivered late Thursday. She stated that the divisive debate about cheaper energy versus pursuing net zero is a "false option", and energy-intensive companies are finding it difficult to remain in the UK. They need support to decarbonise. She said, "We cannot achieve economic security without addressing energy." Without it, any industrial plan, any serious economic security plan will fail. The business ministry spokesperson said that the industrial strategy will create the "best possible conditions" for the private sector in order to increase growth. They added that they had extensively consulted with hundreds of companies. (Reporting and editing by Nia William; Alistair Smout, David Milliken)
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Is the escalating spat between Trump and Musk a regulatory threat to Musk's businesses?
Elon Musk faces a real risk of being targeted by U.S. regulators in the transportation, environment, communications, and other sectors after his deep political ties to President Donald Trump broke down on Thursday. The list below includes the U.S. regulatory agencies that oversee Musk's businesses, such as Tesla, SpaceX (a rocket and satellite company), Neuralink (a brain implant company), X social media platform, and The Boring Company, whose construction company is The Boring Company. Federal Communications Commission In April, the Federal Communications Commission voted to review the decades-old regime of spectrum sharing between satellite systems that SpaceX sought. SpaceX is seeking new spectrum in the next few years from the FCC to accelerate the deployment of satellite internet service. The U.S. Telecom regulator's review aims to permit a greater and intensive use of spectrum in space activities. The 1990s power reductions have limited the use of spectrum, preventing better coverage by SpaceX's Starlink system and other systems. Food and Drug Administration The FDA is responsible for overseeing the clinical trials of Neuralink, Musk’s brain implant company. It decides whether these trials can be conducted and whether Neuralink will eventually sell their device to consumers. Neuralink is also pursuing clinical tests outside of the U.S., including Canada. The FDA has already approved these trials in the U.S. FDA initially denied Neuralink's request for clinical trials citing safety concerns, which were reported in 2023. Since then, the FDA has given Neuralink approval to conduct clinical trials. These are currently ongoing. Environmental Protection Agency SpaceX is subject to environmental regulations by the EPA. The EPA oversees SpaceX's wastewater discharges in Texas. Under the National Environmental Policy Act the company is also required to undergo environmental reviews. Several agencies, including the Fish and Wildlife Service, are required to evaluate the impact of SpaceX's launches and landings. National Highway Traffic Safety Administration Tesla is under constant scrutiny by U.S. auto investigators regarding the safety of their vehicles, especially when they use advanced driver assistance systems. The National Highway Traffic Safety Administration (NHTSA) asked Tesla last month to answer questions about its plans to launch an Austin robotaxi service, Texas in June. This was to determine how Tesla's electric vehicles with self-driving technologies would perform in bad weather. Since October, NHTSA has been investigating Tesla’s self-driving car collisions with reduced visibility on the road. The agency stated that it was seeking more information on Tesla's robotaxis to "assess the ability of Tesla’s system to respond appropriately to reduced road visibility conditions", as well as details about robotaxi deployment plans, and the technology used. Federal Aviation Administration In September, FAA proposed that SpaceX be fined $633,000 for failing to comply with license requirements before two 2023 launches. This investigation is still ongoing. After a series explosions, the FAA may also impose additional restrictions or scrutiny. Securities and Exchange Commission Musk has been involved in litigation with SEC regarding his takeover of Twitter 2022. Musk will now respond to these allegations next month. According to a letter Musk's attorney posted on the social media platform X in December, the regulator had also opened an investigation into Neuralink. Federal Trade Commission The FTC, which also enforces antitrust law, recently opened a probe into coordination between media watchdog groups. Musk has accused some of these groups of orchestrating an illegal group advertiser boycott against his social media site. The FTC enforces antitrust laws and recently launched a probe on coordination between media watchdog organizations, of which Musk accused some of orchestrating a group advertiser boycott of his social media site.
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CANADA-CRUDE-Discount on Western Canada Select unchanged
On Thursday, the discount between West Texas Intermediate (WTI), a North American benchmark futures contract, and Western Canada Select (WCS), a West Canada Select futures contract, remained unchanged. WCS for Hardisty, Alberta delivery in July settled at $9.10 per barrel below the U.S. benchmark WTI according to brokerage CalRock. The price was flat from Wednesday's closing. As wildfires raged in Canada's oil producing province of Alberta, several oil sands companies evacuated workers to be on the safe side. As a result, about 344,000 barrels of production per day, or 7% of Canada’s average daily crude oil production, were disrupted. Canadian Natural Resources (CNR), Canada's biggest crude producer, has restarted its Jackfish 1 facility and said that it expects to be back at full production by Friday, with about 36,500 barrels per day. Analysts expect Cenovus' Christina Lake oil-sands facility to resume full operation soon. On May 29, the company halted production of about 238,000 barrels due to wildfires in northern Alberta. The global oil price rose on Thursday after recovering from the drop of the previous day, following news that U.S. President Donald Trump had spoken to Chinese leader Xi Jinping and agreed on more trade negotiations. (Reporting from Amanda Stephenson, Calgary; Editing done by ShounakDasgupta).
Sentinel Midstream eyes final investment decision for US oil export project
CEO Jeff Ballard said that Sentinel Midstream, an oil transportation and storage company, expects to make its final investment decision regarding the deepwater oil project off of Texas' coast once it receives U.S. Government license.
The move comes at a time when U.S. president Donald Trump is pushing for quicker approvals of projects which will help to bolster the U.S. Energy Industry, including fossil-fuel production.
The Trump administration issued Friday a record decision for Sentinel’s Texas GulfLink Project, an important step in the permit process.
The decision record approved the project subject to conditions. Sentinel has to meet all state, federal and other requirements in order to get a building permit.
The offshore project is expected to be located about 30.5 miles from Freeport, Texas. It aims to fully fill a supertanker in one day with 2 million barrels.
Only one U.S. Port can currently fully load supertankers, and that is the Louisiana Offshore Oil Port. Due to restrictions on draft, other facilities are only able to load supertankers partially. This means they must use smaller vessels to transport crude oil to the larger vessel in order to fill it.
Ballard told an interviewer on Wednesday that if commercial discussions go as expected, our final investment decision should be made at the same time we receive the license. He refused to give a timeline.
It took Enterprise Products Partners, Sea Port Oil Terminal, (SPOT), just over 17 month from the record of decision to grant a license, under the administration of the former president Joe Biden. This administration was less supportive of the energy sector than the Trump Administration.
Ballard stated that the conditions of the decision were pretty straightforward and clear. Nothing was unexpected.
Sentinel's optimistic outlook comes just days after Enterprise announced that it did not receive enough interest from customers to commercialize the SPOT crude project. Enterprise blamed regulatory delays and changes in global oil flows following Russia's invasion.
The U.S. oil exports have also decreased for the first year since the COVID-19 outbreak, raising concern that the country may be nearing its peak.
Ballard stated that Texas GulfLink's relatively low project costs gives it a competitive advantage in terms of rates and flexibility. Ballard declined to reveal the estimated cost of the project.
Ballard stated that prices for exporting oil from Texas GulfLink would likely be competitive with those of Ingleside, near Corpus Christi, in South Texas. Corpus Christi, Texas is the leading oil export region in the United States.
"We sort of see Corpus Christi's export facilities as a different market. We don't think it's us against them. Ballard stated that they see a future in which we will be working with them.
EXPORT, DRILL, BABY AND EXPORT
Energy executives predict a slowing of growth, as they concentrate on capital discipline. This could affect the availability and export volume.
Ballard said, however, that he is bullish about the production growth.
Ballard stated that the new administration was very focused on American energy dominance, and that it is one of its core focus points. I believe that this is in our best interest.
He added, "You will see more certainty on the market in making long-term investment in American oil and natural gas."
Ballard said that he also expects some U.S. crude flows to shift to Asia, as the administration works on resolving the conflict between Russia & Ukraine.
The share of U.S. oil exported to Asia fell to 38% by 2024, from 43% last year. This is due to the Russian invasion of Ukraine in 2014 and sanctions imposed on Russian oil. The cost of shipping crude to Europe is lower, but the demand for oil from Asia will increase, resulting in a higher use of supertankers. Texas GulfLink targets these supertankers. Reporting by Arathy S. Somasekhar, Houston; editing by Liz Hampton and Ni. Williams
(source: Reuters)