Latest News
-
United Steelworkers union proposes next refinery worker contracts
Mike Smith, the chair of national oil negotiations for the union, told a meeting of more than 300 United Steelworkers union workers in Pittsburgh that they had approved proposals for labor negotiation with energy companies to begin in early 2026. The current contract, which covers 30,000 workers for four years, expires just after midnight on February 1, 2026. USW members are employed at refineries which account for more than half of the nation's crude oil processing capacity. USW negotiators, led by Smith, and including International Vice President Roxanne Bron and International President David McCall will begin meetings with Marathon Petroleum negotiators in January. As the leading company in the national pattern negotiations, MPC is looking forward to productive negotiation with the USW. It is also committed to working towards a mutually satisfying agreement," said Marathon's spokesperson Jamal Kheiry. The main issue is wage increases, especially for workers in refineries and chemical plants who earn an average of more than $50 per hour. Smith stated, "I'd say that the wage proposals are important for the times we live in." Smith declined to provide more details about the union's proposed wage increases. Smith also said that the cost of healthcare is a major concern. He said, "We are trying to ensure good health care without having to bear the brunt of rising cost." As with other industries, the union also has a proposal for artificial intelligence. Smith stated that the AI proposal was to protect our industry as we tried to understand its impacts. In order to bring the proposals to the table, a supermajority must be reached by local unions within 45 days. Smith said that he couldn't predict at this time how easy or difficult the negotiations with Marathon might be. He said, "It's early." No bargaining session can be easy or simple. "Our members are willing to do whatever it takes to get a contract that is fair for all of our members." The USW achieved a wage increase of 2.5% in 2022. This was followed by 3% increases in the second and third year and a 3.5% raise in the fourth. (Reporting and editing by Leslie Adler; Erwin Seba)
-
Argentina's YPF Q2 profits slump nearly 90% due to lower fuel prices
YPF, Argentina's energy company controlled by the state, reported a 90% drop in its second-quarter profit to $58 millions on Thursday. Fuel prices were cited as the main reason for this decline. Sales fell 6% to $4.64 Billion from the previous year, due to lower prices for refined products as well as seasonal declines in demand for naphtha. YPF’s performance is a crucial indicator for Argentina’s economy. The country is relying heavily on the Vaca Muerta Formation in its drive to become a Net Energy Exporter. Earnings before interest, taxes, depreciation, and amortization, or EBITDA, a key measure for profitability, were $1.12 billion in the period April-June, down 7% compared to a year ago. Analysts surveyed by LSEG expected, on average, an EBITDA adjusted of $1.17billion from revenues of $4.49billion. Benchmark Brent crude averaged $67 a barrel in the second half of the year, down from $75 a barrel the previous quarter and $85 one year ago. Upstream sales were down by 10% due to the lower Brent prices and reduced conventional production after YPF had sold mature fields. The lower fuel prices also affected downstream sales. However, the strong demand for diesel and agriculture helped partially offset this drop. The results are coming as Argentina is facing a major court battle following a U.S. Judge's order that the government hand over its majority stake in YPF. This was to satisfy a $16.1 Billion judgment related to an expropriation from Spain Repsol of a stake back in 2012. (Reporting and editing by Sarah Morland, Jamie Freed and Natalia Siniawski)
-
Australian miner Fortescue receives a loan of nearly $2 billion to advance decarbonisation
Fortescue announced on Friday that it had secured a term loan facility of 14.2 billion Chinese Yuan ($1.9 billion), as the Australian mining company looks to support ambitious decarbonisation goals. The mining giant announced at the end July that they would be scaling back their green hydrogen projects both locally and in the United States. Fortescue said that it was evaluating options for repurposing the assets and land of the Arizona Hydrogen Project, and the PEM50 Project at Gladstone in Australia. It is expecting a preliminary write-down of $150 million before taxes in its second-half earnings, related to the spending on these businesses. The miner stated that its Fortescue Energy division was unlikely to reach the target of 15 million metric tonnes of green hydrogen production by 2030. Fortescue said on Friday that some of the leading Chinese, Australian and foreign lenders had participated in the term loan facility. Andrew Forrest said that the executive chairman of the company, Andrew Forrest, stated, "As America steps back from investment in what will become the world's largest industry, China is advancing green technology to lead the global industrial green revolution." The company is one of the largest iron ore suppliers to China.
-
Gazprom, the Russian gas company, denounces Moldova's move to change its gas supply system
Gazprom, the Russian gas giant, denounced on Thursday a decision by Moldova's Gas Authority to withdraw its licence for its local subsidiary's distribution of gas. It said the move damaged their affiliate and compromised Moldova's security in energy. The National Agency for Energy Regulation in Moldova, which regulates the gas industry, announced this week that the license to distribute gas was withdrawn from Moldovagaz. 50% of Moldovagaz's shares are owned by Gazprom. Instead, it has been given to state-run Energocom. Energocom will take over the distribution of gas to 800.000 consumers from September 1, it announced. Gazprom claims that Moldova has arrears of at least $709 millions for gas supplied, mostly to state-run enterprises. Moldova says that it does not owe any such debts. This was the main reason for a gas supply halt in January. Gas supplies to Transdniestria - a prorussian separatist region near Moldova's border to Ukraine - were halted for several weeks after the cutoff coincided with the end of gas transit via Ukraine. Gazprom said in its most recent statement that Moldova failed to resolve the debt problem, and added the gas concern has issued proposals to solve the arrears. Gazprom stated that "the Moldovan government introduced a number of measures which, in the end, led to the forced reorganisation Moldovagaz...a sharp increase in gas prices, and as a result, a decrease in the energy security of the country." Gazprom stated that it will continue to "defend its lawful rights with all available methods." Moldova has been involved in a dispute with Gazprom for many years over price and what they call arrears. It has sought to reduce its dependence on Russian gas and signed agreements to buy gas from European suppliers. The company said that its decision was made because Gazprom demanded payment for arrears they did not recognize and failed to implement the changes requested by the European Union regarding separating responsibility between transporting and supplying of gas. Moldova's pro European government wants to join the EU by 2030. Vadim Ceban, the chairman of Moldovagaz, said that the issues are "political in nature" and out of their control. (Reporting from Moscow and Alexander Tanas, Chisinau. Writing by Ron Popeski. Editing by Chris Reese.
-
Pemex plan disappointed suppliers who are owed billions of dollars in payments
The head of a Mexican association that represents global oilfield services firms said on Thursday, despite promises by the government to accelerate payments to suppliers, there are no concrete measures in a new business strategy for Pemex. Rafael Espino is the president of AMESPAC. He said that during a meeting on Tuesday with officials of the energy and finance ministries, as well as Pemex, it was not mentioned how the company will pay off debts from work performed already in 2024, and in the first half 2025. Espino stated that AMESPAC members owed approximately 65 billion pesos (3.49 billion dollars) for work which has yet to be invoiced. Espino told an interview that the report was disappointing because it did not mention anything about 2024. If we wait until the future cash flow is available to pay it, this debt will not be paid and will have an immediate impact on production. Espino said that at the meeting, officials had stated that Pemex will speed up payment, won't let invoices go beyond two months and expects to have a larger cash reserve. Espino said that officials at the meeting stated Pemex would speed up payments, not let invoices age beyond two months, and expect to have more cash on hand. Pemex has supplier debts totaling around $23 billion dollars and financial debts amounting to nearly $100 billion. This is despite the fact that it received billions of dollars in government assistance in recent years in order to meet its obligations. Despite frequent promises and payments, debts continue to grow, causing a payment crisis unprecedented for service providers. Espino stated that AMESPAC welcomed the plan, but was seeking to create a formal group of working with authorities in order to understand the rules and timeline for the new investment vehicle 2025 and its associated payments. The association claims that the payment of outstanding debts will help reactivate idle equipment and meet Mexico's crude production goal of 1.8 millions barrels per day. This is a goal heavily dependent on Pemex. AMESPAC is made up of four of the largest energy service firms in the world: Baker Hughes, Weatherford, SLB and Halliburton. Grupo Carso, controlled by Carlos Slim, reported recently that Pemex still owes them more than $700,000,000 for services rendered, some of which date back as far as two years. Halliburton's payment problems with Pemex are still unresolved, according to a subsidiary of Grupo Mexico.
-
Consolidated Edison's earnings beat expectations in the quarter due to strength in the electric and gas segments
Utility Consolidated Edison beat Wall Street expectations for adjusted second-quarter profit on Thursday due to higher power rates, and strong performances in its electric and Gas segments. Rate cases are typically used by utilities to increase their rates. They base this on the investments or expenses they incur in providing services. Kirk Andrews, CFO of the company, said that the company received approval for $440 million to be invested in five projects designed to advance building and transportation electrification. According to the U.S. Energy Information Administration, power consumption will reach new records in 2025 and 2026. This is due to AI and cryptocurrency demand, as well as a move by businesses and homes to electrify their buildings and switch from fossil fuels to electricity. The S&P Index tracking utilities increased 3.5% during the quarter ending June 30. Consolidated Edison’s total operating revenue for the quarter rose by nearly 12%, to $3.6 billion. According to data compiled and analyzed by LSEG, analysts expected an average revenue of $3.46 Billion. In the second quarter, net interest costs rose by 4.2%, to $300 million, while total operating expenses increased 11.7%, to $3.24billion, from the previous quarter. The operating revenue of its electric segment increased to $2.8 billion from $2.6 billion in the previous year. Revenues from the segment gas grew by 22.2%, to $711 millions, year-on year. The utility confirmed its adjusted full-year earnings forecast between $5.50 and $5.70 per share. Consolidated Edison is divided into three segments: Consolidated Edison Company of New York (CENY), Orange & Rockland Utilities, and Con Edison Transmission. New York's utility reported a profit adjusted of 67 cents for the three-month period ended June 30 compared to analysts' average estimates of 64 cents. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru)
-
UK will offer financial incentives to residents living near new electricity poles
The government announced on Thursday that it could offer households near new electricity poles a discount up to $250 ($334) per year on their bill. This is to encourage the acceptance of the infrastructure required to upgrade the grid. Britain is planning to decarbonise the electricity sector in its country by 2030. This will require new renewable energy projects and infrastructure including pylons that connect these to the grid. In a press release, Minister for Energy Consumers Miatta Fahnbulleh stated that "as we build infrastructure, we must deliver affordable, homegrown energy. Communities must be given a say." The government has said that by 2030, around twice as much transmission network infrastructure is needed as was built in the past decade. However, in many areas, local communities are opposed to large pylons projects, which critics claim blight landscapes. The proposed scheme could allow households located near new pylons to save up 2,500 pounds in 10 years. This is done by offering 125 pounds off their bills every six-months. The UK's energy regulator Ofgem also announced on Thursday that suppliers must install smart meters or repair them if they are broken. Suppliers will have to compensate customers from 2026 if the customer has to wait longer than six weeks to get an appointment for installation or if there are problems with equipment installed.
-
EOG Resources increases annual production forecast for Encino deal after profit exceeds expectations
EOG Resources, the U.S. energy company that closed its $5.6 billion Encino transaction on Thursday, beat its second-quarter profit forecast and increased its annual production projection. The company's 2025 production forecast was for an average of 1.224 million barrels equivalent per day (boepd) compared to its previous expectations of between 1.1 and 1.14 million boepd. In a press release, CEO Ezra Yacob stated that "the expansion of our portfolio by the Encino acquisition and our entry into Bahrain, the UAE and Trinidad as well as the strong exploration progress in our domestic portfolio, and Trinidad has significantly improved our industry-leading assets base." EOG's forecast for the total capital expenditures in 2019 is between $6.2 and $6.4 billion. This is higher than its previous estimate of $5.8 to $6.2. EOG acquired Encino Acquisition Partners in May to increase its presence in Utica and Marcellus, one of the world's most prolific natural-gas basins. EOG also exceeded estimates for the second-quarter profits on Thursday as an increase in production helped it offset the drop in crude oil prices. Brent crude prices fell by an average of nearly 20% in the first quarter compared to a year ago, dragged lower by tepid demand signals globally, OPEC+'s increasing supply and U.S. Trade policies. Prices briefly spiked over $80 per barrel in June after Israeli strikes on Iranian nucleus facilities. However, prices soon fell to $67 a barrel as geopolitical risks diminished and the market's focus returned to weak fundamentals. EOG reported benchmark U.S. crude oil prices at $63.71 per barrel, down from $80.55 last year. Total quarterly production for the company was 1.13 million Boepd compared to 1.047 millions Boepd last year. According to data compiled by LSEG, the Houston-based firm posted an adjusted profit of $2.32 for the quarter that ended on June 30 compared to analysts' expectations of $2.21. (Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
Iraq announces it will update its Overproduction Compensation Plan
Iraq reaffirmed Monday its commitment to the OPEC+ Agreement and said that it would present an update plan to compensate any overproduction from previous periods.
Baghdad said that its oil minister Hayan Abdul-Ghani spoke with Saudi Arabian Energy Minister Prince Abdulaziz bin Salman and OPEC Secretary-General Haitham Al-Ghais.
Iraq has said that it will continue to make efforts to compensate for the overproduction, while also taking into consideration the expected handover of oil from the Kurdistan Regional Government.
OPEC+, a grouping of members of the Organization of Petroleum Exporting Countries (OPEC) and their allies, such as Russia is scheduled to increase its supply in April.
OPEC+ has agreed to reduce its output by 5,85 million barrels a day (bpd), which is about 5.7%, in a series steps that have been taken since 2022.
The group has extended its most recent layer of cuts until the first quarter 2025. This is the latest delay due to weak demand, and increased supply outside of the group.
Baghdad awaits the approval of Turkey to resume oil flow from the Iraqi Kurdistan Region after a two year halt that began in March 2022, when the International Chamber of Commerce ordered Ankara pay Baghdad damages of $1.5 billion for unauthorised exports in the period between 2014 and 2018.
Sources have confirmed that the Trump administration has put pressure on Iraqi officials to allow Kurdish exports of oil to resume or else face sanctions along with Iran. Later, an Iraqi official denied the pressure and threat of sanctions.
A senior Iraqi official in the oil ministry told reporters earlier that around 185,000 barrels of oil per day will be exported through the Iraq-Turkey oil pipeline from Kurdistan once oil shipments resume.
Iraq and Kazakhstan both promised compensation cuts in order to compensate for overproduction. Reporting from Jana Choukeir, Baghdad; Ahmed Rasheed, Dubai; writing by Mahal Dahan; editing by Kirby Donovan
(source: Reuters)