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North Dakota's rig count drops by 3 in a month, to 29 in July. State regulator says
The state regulator reported on Tuesday that North Dakota oil drillers currently operate 29 rigs compared to 32 in June. Operators continue to use more efficient drilling technology. The ability to drill more efficiently allows operators the opportunity to extract more oil with less capital. Nathan Anderson, Director of the Department of Mineral Resources in Washington State said that the decline in rig counts does not mean there is less rock being drilled. The state Industrial Commission reported that oil production in North Dakota dropped 61,000 barrels per day (bpd) in May to 1.1million bpd. The price environment in May and April led some operators to reduce production in certain areas of the state, Anderson explained. He added that lower well completions in April impacted production in May. Anderson stated that June production is likely to be similar to the output in May. However, July will see an increase. Anderson said that operators who curtailed their production have now begun to bring these wells online. In June, 65 projects were completed. This is down from the 74 that were completed in May. However, this is up from only 43 in April. According to LSEG data, U.S. crude oil futures were on average $63 per barrel in April. This is down from $68 in march. The oil prices dropped in April, after U.S. president Donald Trump announced a range of trade tariffs. This stoked fears of a recession as well as a decline in fuel demand. According to the state regulator, there are 13 hydraulic fracturing teams in the state. This number is steady month-over-month. The state regulator reported that the price of Bakken oil at Clearbrook in Minnesota was 75 cents higher per barrel than West Texas Intermediate. This is the same as the previous month. North Dakota, which is home to the Bakken Oilfield, is the third largest oil producing state. (Reporting and editing by Leslie Adler, David Gregorio and Georgina McCartney from Houston)
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Bankers in Latin America urge Latin America's governments to lower barriers to attract renewable energy funds
Multilateral bank executives stated on Tuesday that Latin American countries must address regulatory barriers, improve electric interconnection and enhance project structuring for renewable energy to attract the $200 billion investment needed annually to make the energy transformation a reality. The Economic Commission for Latin America and the Caribbean (ECLAC) organized an event in Colombia’s capital Bogota, where executives spoke. Why it's important Energy infrastructure investments in the region are below global averages. This could make it difficult for it to achieve its climate and energy targets. KEY QUOTES Felix Fernandez is the Director for Latin America and the Caribbean of the European Union’s Directorate General for International Partnerships. He said: "The solution lies with policy because money does not lack." "Our region has the potential to consolidate its leadership position in sustainable energy solutions. But for this we need to create conditions that include adequate regulatory frameworks and investment, as well as a good balance between public and private sector," said Andres Rebolledo. By the Numbers According to World Bank statistics, Latin America devotes about 3% of its gross domestic product to energy infrastructure. This compares to an average of 5% in Europe, Asia and the Middle East. What's Next? Fernandez stated that European Union firms have invested $20 billion in renewable energies in Colombia. 88% of the renewable energy produced in Colombia is by EU companies. Nelson Bocanegra, David Gregorio and David Gregorio are responsible for the reporting.
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Baker Hughes exceeds expectations for second-quarter profits on the strength of demand for natgas technologies
Baker Hughes, an oilfield services provider, surpassed Wall Street's expectations for the second quarter profit on Tuesday as it benefitted from a robust demand for natural gas services. Energy industry benefits from a rise in natural gas demand, primarily due to LNG exports, and an increase in electricity consumption, mainly because of higher temperatures, data centres, and AI operations. Baker Hughes is trying to leverage the Industrial and Energy Technology (IET portfolio) to drive growth in its natural gas and LNG sector. Baker Hughes says it's well-positioned to meet or exceed its $1.5 billion three-year order target earlier than expected. After the bell, shares of the company rose by nearly 1%. The company provides gas processing customers with compressors, turbines and valves. Baker Hughes' Gas Technology Services business saw orders jump 28% in the third quarter, bringing revenue to $3.29 Billion. The total revenue, however, fell by 3% from the previous year to $6.91 Billion. This was due to a decrease in drilling activities in North America and on international markets. Baker Hughes has joined Halliburton, SLB and other U.S. competitors in warning that upstream spending and activity will slow down as producers struggle with the weakness and volatility of commodity prices. The company expects that upstream expenditures in North America will be in the low double digits, and that international spending will be in the high single digits. According to LSEG, the Houston-based firm posted an adjusted profit per share of 63 cents for the three months ending June 30. This was compared to analysts' expectations of 56 cents. Reporting by Vallari Shrivastava, Bengaluru. Editing by Alan Barona
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Sources: France's EDF will cut jobs and withdraw from certain overseas projects
Two sources with knowledge of the matter said that France's EDF has cut its headcount abroad and canceled bids for some nuclear projects overseas in order to focus on a major building programme at home, under new CEO Bernard Fontana. France, once the world's leading nuclear power producer and Europe's biggest nuclear energy provider, is now pulling back, at a moment when global nuclear expansion calls are being made. This opens up new opportunities for other players, as high costs and design problems hurt its ability compete internationally. Fontana took over EDF in April after the government became frustrated by the slow progress of the French nuclear fleet. The new CEO told a parliamentary committee hearing about his nomination that he will focus on the development of domestic nuclear projects, rather than on its international business. This company employs hundreds and has built reactors previously in China, Finland, and Britain. Sources said that he has made changes in the past few weeks to his overseas business, including a pullback from certain bids for building reactors outside Europe. A source familiar with plans said that the company would focus on nuclear tenders in the Netherlands and Sweden, where there is a greater chance of it winning. The person who spoke to me said that it will also reduce the priority of projects in Poland and India as well as Canada and other countries outside Europe. Another industry source with knowledge of the situation said that reducing its international footprint would allow it to reduce costs and redirect staff to more important projects. Recent international projects by EDF have been plagued with long delays and cost increases. It lost out last year to South Korea's KHNP for the bid of two new reactors. Fontana plans to reduce the number of employees on its international sales team. According to one source, there are plans for about 60 job cuts, including 10 managers. EDF has said that no decision has been taken. The company stated that the group will continue to pursue its international activities, while maintaining a focus on the profitability of their commitments. A spokesperson for the company stated that Europe was always its top priority. It is now focusing on strengthening European supply chains. An official from the office of Prime Minister Francoise Bayrou said that "the new French nuclear program is the group's top priority." According to a report in the media last year, President Emmanuel Macron announced early 2022 plans for six new French nuclear reactors. The reactors would replace ageing plants to ensure future energy supplies. However, the company is heavily indebted after costly repairs to its nuclear facility in recent years. EDF also wants to sell off some of its renewable assets in North America, Brazil and South America. One source said that the company's subsidiaries Framatome, Arabelle and AP 1000, which manufacture reactor parts, would continue to bid for international projects such as AP 1000, in Canada.
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Trump official: Indonesia will cut tariffs and non-tariff barriers as part of the US trade agreement.
A senior Trump administration official announced on Tuesday that Indonesia would reduce tariffs from 32% to 19% on products imported by the United States, and eliminate all non-tariff obstacles for American goods. The official said that Indonesia would immediately abandon its plans to levy duties on internet data flows, and support the renewal of the long-standing World Trade Organization (WTO) moratorium on ecommerce duties. This was revealed in a conference held one week after the original announcement on July 15, The official also said that Indonesia will remove the recently implemented pre-shipment inspections and verifications for U.S. agriculture exports. These have caused problems for U.S. farmers exports and led to an increasing U.S. farm deficit. The official stated that Indonesia had agreed to accept the U.S. Federal Motor Vehicle Safety Standards in vehicles exported to the country with a population of 280,000,000. Indonesia has also agreed to remove the export restrictions for critical minerals, and to remove local content requirements from products that use these commodities. Keywords: USA TRUMP/TARIFFS INDONESIA
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Sources: France's EDF will cut jobs and withdraw from certain overseas projects
Two sources with knowledge of the matter said that France's EDF has cut its headcount abroad and scrapped bids for some nuclear projects overseas as it focuses on an important construction programme in France under the new CEO Bernard Fontana. France, once the world's leading nuclear power producer and Europe's biggest nuclear power provider, is now pulling back, at a moment when global nuclear expansion calls are being made. This opens up new opportunities for other players, as high costs and design problems hurt its ability compete internationally. Fontana took over EDF in April after the government became frustrated by the slow progress of the French nuclear fleet. The new CEO told a parliamentary committee hearing about his nomination that he will focus on the development of domestic nuclear projects, rather than on its international business. This company employs hundreds and has built reactors previously in China, Finland, and Britain. Sources said that he has made changes in the past few weeks to his overseas business, including a pullback from certain bids for building reactors outside Europe. A source familiar with plans said that the company would focus on nuclear tenders in the Netherlands and Sweden, where there is a greater chance of it winning. The person who spoke to me said that it will also reduce the priority of projects in Poland and India as well as Canada and other countries outside Europe. Another industry source with knowledge of the situation said that reducing its international footprint would allow it to reduce costs and redirect staff to more important projects. Recent international projects by EDF have been plagued with long delays and cost increases. It lost out last year to South Korea's KHNP for the bid of two new reactors. Fontana plans to reduce the number of employees on its international sales team. According to one source, there are plans for about 60 job cuts, including 10 managers. EDF has declined to comment. An official from the office of Prime Minister Francoise Bayrou said that "the new French nuclear program is the group's top priority." According to a report in the media last year, President Emmanuel Macron announced early 2022 plans for six new French nuclear reactors. The reactors would replace aging plants and ensure future energy supplies. However, the company is heavily indebted after costly repairs to its nuclear facility in recent years. EDF also wants to sell off some of its renewable assets in North America, Brazil and South America. One source said that the company's subsidiaries Framatome, Arabelle and AP 1000, which manufacture reactor parts, would continue to bid for international projects such as the AP 1000 project in Canada.
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Nigerian Dangote warns that cheap Russian oil threatens African refineries
Aliko Dangote, a Nigerian billionaire, has warned that discounted Russian petroleum products pour into African markets. This could undermine the continent's new refining industry. Dangote has struggled with securing crude oil locally, despite his plans to increase the refinery's capacity to 700,000. Dangote, at an Abuja oil conference, said: "We're increasingly faced with the dumping and blending of cheap, toxic petroleum products. Some of these are blended in substandard levels, which would never be permitted in Europe or North America." He attributed the trend to Western sanctions against Russian oil which have led Moscow to offer steep discounts on alternative markets including Africa. The Russian energy ministry didn't immediately respond to an inquiry for comment. Dangote expressed his concern over the Lome floating market, off the coast Togo. The market is dominated by traders from abroad. Lome, with its 2 million barrels worth of petroleum products stored in the port, has become an important hub for fuel imports. Dangote warned that this could harm Africa's refinery efforts. Africa produces around 7 million barrels per day of crude oil, but only 40% of its total consumption is refined locally. Africa imports more than 120 million metric tonnes of refined products each year. Dangote’s refinery began operating last year and has now started exporting gasoline. Exports have reached 1 million tons in June. He said that local producers were facing stiff competition from international traders who took advantage of regulatory gaps and inconsistent standards in fuel across African countries. Dangote called on African governments to adopt tariffs and emission caps in order to protect their domestic industries. Africa is still a relatively small market for Russian oil compared to other major buyers such as Turkey and Brazil. In June, Russian gasoil and diesel exports to African nations fell 30% from the preceding month. They totaled about 0.7 millions tons. According to shipping data, Morocco, Tunisia Togo and Egypt were the top importers. Some vessels that were loaded with 230,000 tons Russian diesel in May had their final destinations marked "for orders," which meant the discharge points for those ships hadn't been determined or declared. Reporting by Isaac Anyaogu. Mark Potter edited the article.
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WTO reverses some of its previous decisions in EU-China Intellectual Property Dispute
Arbitrators at the World Trade Organization reversed a part of the previous panel's decision on Monday, which had rejected European Union claims that China violated intellectual property rules set by the global watchdog. A WTO panel in April rejected the EU complaint that China violated IP rules of the global watchdog over patents for mobile technology 3G,4G, and 5G. It did, however, say that China failed to meet all WTO transparency requirements. The EU appealed at the Multi-Party Appeal Arbitration Arrangement - a substitute for the WTO Appellate Body, which was shut down in 2019 because the United States blocked judge nominations repeatedly. The arbitrators found on Monday that part of the previous panel's decision was reversed and that the Chinese courts had prohibited patent holders from enforcing their rights outside of China through anti-suit injunctions. This was in violation of Trade-Related Aspects Intellectual Property Rights (TRIPS) rules relating to patent rights. The arbitrators confirmed the previous findings in four cases, but reversed them in three. The WTO has given China 90-days to correct its actions to be in compliance with WTO rules. The Chinese Ministry of Commerce announced on Tuesday that it has taken note of this situation. The arbitration tribunal, while expressing its approval of some conclusions, stated that it had made an error in concluding that WTO members must not interfere with a patent owner's right to enforce his rights within the jurisdictions of other WTO members. China expressed dissatisfaction over this aspect of ruling, it added. It would carefully evaluate the decision and deal with the matter in accordance to WTO rules.
India's April to May finished steel imports fell 27.6% on an annual basis as China and Japan shipments declined
The provisional data from the government, reviewed on Tuesday, showed that India's imports of finished steel fell by 27.6% during the first two-month period of the new financial year, which began in April. This was due to a decline in shipments coming from China and Japan.
The data shows that India, which is the second largest crude steel producer in the world, imported 0.9 millions metric tons (MT) of finished steel between April and May. Shipments from China dropped by 47.7%, while those from Japan fell by 65.6% compared to a year earlier.
The data revealed that China shipped 0.2 million metric tonnes of finished steel to India in the past two months. Japan also sent 0.1 million tons.
India implemented a temporary 12% tariff on certain steel imports in April. This is known locally as a "safeguard duty" and was imposed to stop a rush of cheap shipments, primarily from China.
The data shows that South Korea was India's top exporter of finished steel during April-May. Shipments increased 8.2%, to 0.4 millions metric tons.
The data revealed that India's largest imports were hot-rolled coils and strips.
The data revealed that India was a net buyer of finished steel in the period. Exports fell 18.1% on an annual basis to 0.8 millions metric tons.
India's largest exports during this period were galvanised coils or sheets, plain or corrugated.
The data revealed that Belgium was India's largest export market. Shipments increased 12.4% to 0,15 million metric tonnes.
The data shows that shipments to Italy fell by 53.7% while those to Nepal, Spain and other countries increased.
India's consumption of finished steel reached 25,1 million metric tonnes in April-May. This is an increase of 7.1% compared to a year ago. The data revealed that crude steel production increased 9.5%, to 26.9 millions metric tons.
(source: Reuters)