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EIA: Oil wells in the Lower 48 US States have more than doubled in the past decade.
The U.S. Energy Information Administration announced on Wednesday that they estimate that the average number oil wells completed within 50 feet from each other simultaneously in the Lower 48 States has more than doubled since the last decade. The agency stated that the number of wells completed simultaneously per location has increased from 1 1/2 wells per location in December 2014 to over three wells per location in June 2024. This will allow operators to "accelerate production timelines and reduce costs per well." The EIA defines wells that are drilled within a 50-foot radius of each other as being at the same location. This increase was attributed to "significant technological advancements in hydraulic fracking operations and equipment capabilities." EIA analysis shows that the number of simultaneous well completions has increased since 2017. The EIA stated that although operators had recognized the benefits of finishing multiple wells simultaneously prior to 2017, they initially encountered technical obstacles. The EIA said that these included the requirement for more horsepower to fracture multiple wells at the same time. The EIA stated that "adoption of electric fleets which provides better power management has played a vital role in increasing the simultaneous completions". Electric fracking uses electric powered equipment instead of traditional diesel-powered fracking tools. Fuel delivery trucks are required for traditional well-drilling activities that rely exclusively on diesel pumps. The EIA stated that the switch to electric frac vehicles helped streamline operations because they used locally available fuels, such as compressed natural gas or field gas, and electricity from the grid. (Reporting by Ishaan Arora in Bengaluru; Editing by David Gregorio)
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Kenyan court fines 4 men for trafficking thousands queen ants
Kenyan courts fined four men each $7,700 for attempting to traffic thousands of valuable ants to the country's eco-system. Experts say that this case shows a shift from biopiracy towards lesser known species, such as elephant ivory. On April 5, authorities arrested two Belgian teens, a Vietnamese and a Kenyan man in separate cases for allegedly trying to smuggle about 5,440 giant African harvester ants. Magistrate Njeri Thuku stated that the ants could fetch more than 800,000 Euros or $900,000. This is in Europe, Asia and some parts of North America where antkeepers maintain colonies in large, transparent vessels called formicariums in order to observe their cooperative behavior. The illegal trade of queen ants can threaten colonies that are vital to Kenya's ecosystem. Thuku found the traffickers guilty of dealing with live wildlife species and ordered that they pay the fine, or risk 12 months in prison. All had pleaded guilty. These cases raised the question of whether or not there was a wider network involved in the alleged trafficking. Thuku stated that Duh Heng Nguyen from Vietnam was sent to Nairobi in order to collect ants and meet Dennis Nganga. This elaborate scheme had "all of the hallmarks and possible biopiracy" associated with illegal wildlife trade. Thuku described Nguyen's role as one of a "mule" or courier, which is a drug trafficking term. He said that his role had the telltale signs associated with organised crime. According to the judge, Nguyen & Nganga claimed they didn't know that their actions were illegal. 'ANT GANG' Thuku stated that the two Belgians identified as Lornoy Dave and Seppe Lodewijckx in court documents are both ant lovers who claim in court they acted in naivety. Thuku's ruling stated that Lornoy Dave's phone showed that he belonged to a group called "Ant Gang" and that initially he bought 2,500 queens at $200. Thuku stated that there was no reason to be found with so many queen ants. Thuku stated, "This is more than a hobby." If it were a larger species, with 5,000 individuals of one gender being removed, it would be genocidal in proportions. The way ants work together is admired by many enthusiasts. They perform tasks such as building a nest or collecting seeds, and they make collective decisions without any leader. Dino Martins is one of Kenya's top ant experts. Kenya Wildlife Service stated that the messor cephalotes were a crucial species for maintaining soil health and eco-system balance. They were intercepted at Jomo Kenyatta Airport (JKIA), in the capital. In a press release, it said that the ants were "destined for the European exotic pet trade and the Asian exotic pet market where colonies of rare species and eco-unique species can command up to 1,200 euro each." The ruling today sends a clear message that Kenya will not tolerate the plundering of its biodiversity. Erustus Kanga said that whether it is an elephant or an ant, we will pursue the traffickers with vigor. Experts say that Kenyans can export ants with a licence, but the regulations are confusing. Hereward Holland, Monicah Mwangi, Humphrey Malalo and Hereward Holland, with editing by Aidan Lewis and Ammu Kanampilly, and Emelia Sithole Matarise, wrote the article.
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Indian industries exchange polluted air for health fix
The first ever air pollution trading scheme in the world has produced results Experts warn against relying too heavily on market solutions The developing nations are unable to reduce air pollution Bhasker Tripathi In India, air pollution is a major health issue. The country's 1.4 million people breathe air that exceeds the World Health Organization guidelines for particulate (PM) matter. These particles are finer than human hair and can cause serious health problems such as lung cancer and respiratory infections. The average Indian loses 3.5 years in life expectancy due to pollution. The industry is a major source of air pollution, and policymakers are struggling to combat it. They have taken the traditional approach by creating and enforcing emission limits. Over the past two decades, PM2.5 concentrations -- which are particulates 30 times smaller than a human hair -- have increased in India by 11,6%. In order to find a solution, economists from Yale University and University of Chicago in the United States as well as the University of Warwick (England) collaborated with Gujarat Pollution Control Board to create a unique emission trading scheme to reduce air pollution. The pilot program has been running since 2019. Results published in The Quarterly Journal of Economics' May issue show that ETS reduces emissions in coal-burning power plants by 20-30% compared to those that use a standard approach. Michael Greenstone Milton Friedman Distinguished Services Professor in Economics, University of Chicago and one of the pilot's architects, described the ETS pilot as "a rare win-win". It reduced pollution, decreased abatement costs, and increased the government's ability to enforce the air pollution control laws. He said, "And all of this was achieved in an environment where the possibility of pollution markets working was viewed with great skepticism." Experts say that such tools are only appropriate for industries in which a switch from coal to gas, or an upgrade in technology, like better filtration, is not enough to reduce pollution. Swagata Dey, a policy expert at the Center for Study of Science, Technology and Policy, a think tank in India, warned that the ETS shouldn't become a "polluter-pays" model, where industries continue to pollute and pay only small fines. She said that such schemes are best used in industries where process optimization and changes in fuel consumption are difficult to achieve on a short-term basis. THE PILOT The ETS, which was piloted in Surat, Gujarat, with 317 large coal-burning units, is hailed as the first market-based scheme in the world to control air pollutants in an industrial cluster. The remaining plants are being kept in compliance with the standard pollution control regulations. They will be spot checked by the pollution board to make sure they meet the emission limits. Plants on the market are now part of a cap and trade system, where a maximum limit for total PM emissions is set. This limit is then periodically lowered. Plants are given permits for a certain amount pollution. A plant that is able to reduce pollution easily with a change in technology or fuel can trade permits with others that have a harder time reducing pollution. Surat ETS plants not only reduced their overall pollution but also held enough permits for their legal compliance to be met 99% of time. Plants outside the ETS were able to meet their pollution limits at best 66% of time. The study found that it costs plants operating under the ETS 11% lower to reduce emissions than plants operating under the command and control regulations. CHALLENGES Surat ETS was partly inspired by one of the biggest programs ever, the U.S. scheme for trading sulfur dioxide emissions to combat acid rain. This program reduced pollution by 40% from 1980-2003. Canada and Europe have adopted successful trading markets for various pollutants based in part on U.S. examples. But low-income countries are yet to follow these examples. Pallavi Pan, an air-quality scientist and the head of Global Initiatives for Health Effects Institute in the United States, explained that this is because countries lack monitoring and regulatory capability. Pant stated that "the relevant departments or ministry [in developing nations] may lack the financial and technical capability, or even personnel to implement effective solutions." Pant said that the Surat ETS Pilot offers an interesting model which can help to generate better data and track mechanisms for specific pollution sources.
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Suncor, Canada's largest oil company, says it may reduce its capital expenditure in 2026 if oil prices remain low.
Suncor Energy, Canada's second largest oil producer, said that a recent campaign to cut costs had helped it weather the lower oil prices in the world. However Suncor Energy did not rule out cutting capital expenditures next year if economic conditions continue to be weak. Rich Kruger, CEO of Suncor, told analysts in a conference call on Tuesday that Suncor had not altered its capital budget range for 2025 of C$6.1billion ($4.43billion) to C$6.3billion and planned to spend less next year - between C$5.7billion - already. Kruger stated that the 2026 budget would be cut if needed. He said, "If we feel that the business environment warrants it further, then that is exactly what will be evaluated." The global oil price hit a 4-year low Monday, after the Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed to a second accelerated increase in oil production for June. Since Donald Trump was inaugurated in January, his unpredictable tariff policy has also had a significant impact on the oil price. Kruger stated that Suncor has become more resilient and able to withstand commodity price fluctuations due to its efforts to reduce operating costs. He said, "It allows us to execute our plans without having to hit the gas or the brakes." Under Kruger's leadership, Suncor's financial results have improved dramatically under his leadership. He was hired by the company in 2023. The company announced a first-quarter profit on Tuesday of C$1.7billion, or C$1.31 a share. This was higher than analysts' expectations. It also achieved its highest ever first-quarter production, of 853,000 barrels / day. Suncor has also had its best ever first quarter in terms of refinery sales and throughput. Kruger stated that Suncor was well underway with its efforts to increase revenue from its chain Petro-Canada retail station. This includes closing some locations, renovating and upgrading at other stations. The company wants to increase earnings by C$200m by the end 2026. Kruger responded that continued growth of the Petro-Canada chain is another way to protect the company from oil price volatility. He said: "I wouldn't say never. But right now, that is an extremely valuable part of our operations." (1 Canadian dollar = 1.3783 dollars) (Reporting and editing by Nia William in Calgary)
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Putin and Venezuelan Maduro sign a strategic partnership agreement at Moscow
In a ceremony broadcast on state television, Russian President Vladimir Putin signed a strategic agreement with Venezuelan President Nicolas Maduro. Interfax, a Russian news agency, reported that the two leaders also spoke about energy and oil in their meeting at Moscow. In the agreement, Russia & Venezuela stated that they would promote joint efforts within OPEC +, the Gas Exporting Countries Forum, and other organisations involved in the energy industry. The agreement stated that "the parties will promote an equitable and stable development of global markets for energy without using unfair competition instruments." The two companies agreed to work together to explore and develop new oil and natural gas fields, as well as expand their oil trading operations. The document envisages a closer collaboration between Russia and Venezuela in the United Nations, other organisations and the field of arms control as well as a joint opposition to unilateral sanctions. Dmitry Peskov, Kremlin spokesperson, described the strategic accord as "a substantial and important framework document". The three-year war between Russia and Ukraine has caused a breakdown of relations with many Western countries. This has prompted Moscow, which wants to counteract the influence of the "collective west", as the Kremlin refers to it, including the United States, to strengthen its ties with those other countries. Since 2022, Russia already has strategic partnership agreements with China, North Korea, and Iran. Venezuela's recent relationship with the United States has been fraught, marked by shattered diplomatic relations, sanctions, and accusations of criminal activities and coup plotting. Maduro will also attend events commemorating the 80th anniversary since the Soviet Union defeated Nazi Germany. Military Parade On Friday. (Reporting and editing by Andrew Osborn, Gareth Jones, and Vladimir Soldatkin)
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China's BYD and Tsingshan cancel plans for Chilean lithium plants
Sources from the government and BYD, a Chinese automaker, confirmed on Wednesday that they have withdrawn multi-million dollar plans for building lithium cathodes in Chile, which is a major producer. The two Chinese giants' retreat is a blow for Chile, which aims to increase domestic processing of lithium - a metal that is essential to electric vehicle batteries. Chile is ranked as the No. The world's No. Tsingshan has announced that it canceled plans for a $233-million project to produce 120,00 metric tons (LFP) of lithium iron phosphate. Chile's National Assets Ministry said that BYD had filed an intention to withdraw their plans in January. BYD declined to comment. BYD announced delays last year to a planned $290-million plant that was supposed to produce 50,000 tons of LFP per year for cathodes. The first newspaper to report the scrapped investments was Chilean Diario Financiero. BYD's and Tsingshan’s plans were both part of an agreement for a special price to buy lithium. The Chilean government awarded this deal in order to encourage investment in lithium products in Chile. The arrangement is no longer attractive, according to a person who knows the situation. This is due to the falling prices of lithium on the international market. (Reporting and editing by Alexander Villegas; Sarah Morland, Emelia Sithole Matarise and Emelia Sithole Matarise).
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Sources say that Guinea has cancelled EGA's mining license
Two people familiar with the matter said on Wednesday that Guinea had begun a process of revoking Emirates Global Aluminium's mine licence. Emirates Global Aluminium is owned equally by Abu Dhabi sovereign fund Mubadala and Dubai sovereign fund Investment Corporation of Dubai. It operates through its Guinea Alumina Corporation subsidiary one of the world's largest bauxite mining operations in Guinea. In a reply, the company stated that it "continues to work hard to find a solution with the government so we can resume our operations." EGA and the Government of Guinea have been involved in a dispute since October last, when the authorities suspended its bauxite mining operations and exports. They cited customs duties as the reason for the suspension. We have withdrawn the mining license of GAC. "A notification has been sent in this regard," said one source, a senior official of the government who asked to remain anonymous because they weren't authorised to talk. Guinea's decision to cancel EGA’s licence is part of a larger trend in which resource-rich nations are seeking greater control over their wealth. This could have a major impact on the global mining industry. In particular, the military-led governments of Guinea, Mali and Niger, as well as Burkina Faso have been pushing to rewrite laws and contracts governing mining, detain executives in mining, suspend operations and seize product in order to gain more control and revenue. The Emirati Company began operations in Guinea in 2019. It will export around 14 million tons of bauxite by 2022. In March, it said that the suspension of activities in Guinea led to a decrease in exports of bauxite from 14,1 million wet-metric tonnes in 2020 to 10,8 million wet-metric tonnes in 2024. Guinea is the second largest producer of bauxite in the world after Australia. EGA's operations in Guinea include a 690 square kilometer mining concession which contains approximately 400 million tonnes of mineral resources. Saliou Samb, Conakry, Guinea. Additional reporting by Hadeel al Sayegh, Abu Dhabi, and Maxwell Akalaare Adombila, Dakar. Writing by Bate Felis Editing by Tomaszjanowski, Elaine Hardcastle, and Matthew Lewis.
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Markets retrench as they focus on US-China talks and Fed rate decision
The world stock market fell on Wednesday, while Treasury yields dipped. This was after the news that top U.S. officials would be meeting with Chinese counterparts soon and before a Federal Reserve statement about its monetary policy at the conclusion of their two-day meeting. After three days of declining against the yen, the dollar index has risen. Gold, the safe-haven asset, fell after a two day rally. The Fed is expected to maintain interest rates at their current level. The U.S. Treasury secretary Scott Bessent, and the chief trade negotiator Jamieson Grer will meet China's highest economic official at the weekend for discussions. This could be a first step towards an agreement after U.S. president Donald Trump ignited the trade war last month with China's second largest economy. Bessent believes the meeting in Switzerland will be about "de-escalation." China, on the other hand, sounded more cautious and quoted a Chinese proverb that said actions speak louder than words. "It is a step in the right directions." Chris Zaccarelli said that until you start talking, you cannot make any progress. He said that "until a framework or agreement is announced, market participants don't know what to make of the talks." The upcoming Fed report also slowed down market movements. Investors are not expecting any rate changes, but will be closely monitoring Chair Jerome Powell’s press conference. He'll be asked to provide more information on the Fed's current position. Do they tend to lean more toward protecting the job markets or do they lean more towards combating inflation? Zaccarelli said. Wall Street At 11:01 am, the Dow Jones Industrial Average rose by 131.77, or 0.33 percent, to reach 40,963.18, while the S&P fell by 1.16, or just 0.01% to 5,606.14, and the Nasdaq Composite dropped 55.37, or about 0.30% to 17,636.66. The MSCI index of global stocks fell by 0.56 points or 0.07% to 841.35. The pan-European STOXX 600 fell by 0.6%. The U.S. Dollar rose against the Japanese Yen, while the Euro was barely lower. Traders awaited Fed's latest update as uncertainty about trade negotiations weighed on the sentiment. The dollar index measures the greenback in relation to a basket including the yen, the euro and other currencies. The index fell by 0.13%, to 99.37. The euro fell 0.02% to $1.1366. The dollar gained 0.6% against the Japanese yen to reach 143.3. The yield on the benchmark U.S. 10 year notes dropped 3.7 basis point to 4.281% from 4.318% at the end of Tuesday, while the 30-year bond rate fell 5 basis points, to 4.7628%. The yield on the 2-year bond, which is usually in line with Fed expectations, increased 0.8 basis points from late Tuesday to 3,797%. Oil prices dropped on commodity markets as investors awaited the outcome of U.S. China trade talks. U.S. crude dropped 0.58%, to $58.75 per barrel. Brent was down to $61.71 a barrel on the same day. As traders awaited Fed's decision, gold prices declined due to a stronger dollar and optimism in the U.S. China trade talks. Spot gold dropped 1.27% to $3385.76 per ounce. U.S. Gold Futures dropped 0.73% to an ounce of $3,386.60. Pakistan's bonds and stocks suffered heavy losses after India attacked the country as a response to the April tourist murders. The attacks sparked the worst fighting between the two nuclear-armed neighbors in more than 20 years.
Stocks rise on US-China talks, China rate reduction
U.S. stocks futures and Chinese stock markets both rose on Wednesday as investors welcomed news of a high-level meeting between U.S. officials and Chinese counterparts as an opportunity to reduce tariffs. China also cut interest rates and promised to support the stock market.
Scott Bessent, U.S. Treasury secretary, said that the meeting scheduled for this weekend in Switzerland would be a de-escalation.
S&P 500 futures were up about 0.9%, and Hong Kong's Hang Seng rose 1.7% at mid-morning. China blue chips were up 0.5%, while Japan's Nikkei index was largely flat.
Ray Attrill, head of Foreign Exchange Research at National Australia Bank, said: "It seems that both sides are willing to reach out and meet on a high-level. I wouldn't have thought it could be anything other than positive."
It's positive for Asian foreign exchange in general.
The dollar rose a little against the yen, euro and yuan. China's rate reductions weighed down on the yuan.
The South Korean won, which was gaining ground with the surge of Asian currencies, has fallen by more than 1 percent.
Gold dropped 1.4%, while oil rose 0.5%.
China's central banks governor announced a 10 basis-point cut in the benchmark interest rate, and a 50 basis-point cut to bank reserves on Wednesday. This will allow more money into the banking system.
Investors interpreted the announcements of the financial regulator as a coordinated effort by the authorities to promote the property market.
It's reminiscent of the press conference that started the stimulus euphoria back in September. Homin Lee is a senior macro-strategist at Lombard Odier, based in Singapore.
Later on Wednesday, the U.S. Federal Reserve will meet to set interest rate cuts.
The markets indicate that there is almost no chance for a move to be made on Wednesday, and only 33% of a reduction in June. This is down from 64% one month ago.
India and Pakistan are nuclear-armed neighbors and the fighting has been intense for more than 20 years. India fired gunfire and shells over the border in Kashmir, while India also hit targets in Pakistan.
Attrill of NAB said that it would add another layer to the geopolitical tensions and likely cause India's currency to fall.
The euro was supported above $1.13, with German conservative leader Friedrich Merz being elected chancellor after his alliance with Social Democrats suffered a shock defeat in the initial round.
(source: Reuters)