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Cenovus CEO: Despite Trump's remarks, US oil is dependent on Canadian sources,
Cenovus Energy's CEO stated on Tuesday that the U.S. is dependent on Canadian oil imports despite Donald Trump's comments to this effect. Trump has repeatedly threatened to impose tariffs on Canada’s oil. Nearly 4 million barrels of Canadian oil are exported daily to the United States. Canada is the fourth largest oil producer in the world, and also ranks fifth for natural gas production. Trump said previously that the U.S. doesn't need to import oil and gas from Canada. Mark Carney, Canada's minority prime minister who was elected in April as a result of anti-Trump voter sentiments, said that the old relationship between Canada and the U.S., based on an increasing level of economic integration, is over. Jon McKenzie is the CEO of oil sands firm Cenovus, and the chair of the Canadian Association of Petroleum Producers. He said that trade tensions have brought to light the need for Canada's exports to be more diverse. He said the need to have energy in both countries is not negated by the fact that they are interdependent. What hasn't altered is energy economics or energy physics. McKenzie, speaking at a Calgary energy conference, said: "The reality is that we are hardwired to the U.S. System." The vast majority of Canada's oil exports are purchased by U.S. refining plants, which are located in the Midwest. These refineries can process crude produced by Canada. McKenzie stated that Canada can grow its oil production in the next decade. He added that the new government must recognize Canada's dependence on the U.S., and work to improve the relationship. He said: "We must act intelligently and not viscerally in the face of threats, but rather act intelligently for our long-term interests." Carney, as part of Canada's response to the U.S. threat of tariffs, has pledged that he will identify and accelerate projects of national importance aimed at helping Canada to become what he describes as a conventional and a clean energy superpower. McKenzie stated that the oil and gas industry does not want to see the federal government pick winners and losers when it comes to deciding which projects are to be fast tracked. He said that the industry wants to see a broad regulatory reform to remove barriers to investment in oil and natural gas projects. (Reporting and editing by Chris Reese, Rod Nickel and Amanda Stephenson from Calgary)
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Tanure, a Brazilian businessman, has been courting banks since he hatched Braskem with Novonor.
Nelson Tanure, a Brazilian businessman, has started talks with banks to secure a deal for the petrochemical company Braskem. He hopes to close a deal by year's end and give Petrobras an increased role in its operations. Braskem, Latin America's biggest petrochemical company, has been looking for a buyer since years. Novonor is the controlling shareholder and wants to get out of bankruptcy protection. It also wants to put an end to a massive corruption scandal. Tanure is a new bidder trying break the deadlock between Novonor and the banks that hold Braskem shares in collateral, and Petrobras which is a key shareholder and supplier to the company. Tanure, in his first public remarks since announcing his Braskem offer last month, said that he had begun courting the engineering group Novonor (formerly known as Odebrecht) after Abu Dhabi National Oil Company’s failed bid to purchase its Braskem share over a decade ago. Tanure responded to questions by writing: "After Adnoc withdrew its offer, I started confidential discussions with Novonor in absolute secrecy." Tanure stated that Novonor will remain a shareholder of the proposed deal. The latest proposal reduces its stake from 38.3% down to 3.5%. He added: "I wouldn't make an agreement without them remaining involved." Tanure confirmed that the deal is still being discussed. Novonor confirmed that the talks took place in May but declined to comment further on details provided by Tanure. In the decade prior to the scandal, Novonor had used its Braskem shares as collateral for bank loans totaling 15 billion reais (US$2.7 billion). As profit margins on petrochemical markets have fallen, the value of these shares has decreased and covers less than one quarter of this debt. According to two sources familiar with the situation, despite Tanure's progress in Novonor, its creditor view his offer as sceptical, since they have other plans for Braskem. Reports in November stated that the State Development Bank BNDES, along with other major banks, have proposed to pool the shares pledged for collateral into a Private Equity Fund. This fund would then make investments and turn around the company before selling its shares. Aloizio Mercadante, President of BNDES, confirmed that talks were underway with Petrobras and the other banks at the time to resolve the dispute. The bank refused to comment on Tanure’s competing offer to Novonor. Tanure said that "the success of this acquisition depends on alignment (with the banks)" but he rejected the notion that lenders control Braskem. It's important that we clarify that these shares are still owned by the Novonor Group. The shares are pledged as collateral to the banks. The Rio de Janeiro businessman has a history of investing in companies undergoing controversial restructuring. He is a major investor in the oil and power company Prio. Tanure believes that Petrobras will have a greater role if he is able to close the deal with Braskem. Petrobras has a first right of refusal on Novonor’s stake, as per their shareholder agreement. Tanure stated, "I think their presence (in Braskem's operations) is small and should be expanded." We must recognize that Petrobras' seniority in the oil industry and its management expertise are comparable to those of the world's best. Petrobras declined comment. Last week, Petrobras CEO Magda Chambriard said Braskem is a great asset, but the current management "is not what we want." When asked by about Tanure’s offer, she replied: "We cannot do anything but applaud." We are looking for a solution. Tanure stated that his goals for Braskem included transforming the Camacari Complex in Bahia into a center for sustainable innovation, "green" petrochemicals and lower emissions. Reporting by Luciana Magnalhaes Editing done by Brad Haynes Lisa Shumaker Nia Williams
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Sudanese Army accuses Libyan Haftar forces border attack
Tuesday, the Sudanese Army accused the forces of eastern Libyan commander Khalifa Hastar of attacking Sudanese borders posts. This is the first time the army has directly accused its northern neighbour of involvement in the two-year conflict. Multiple foreign countries have been drawn into the war between Sudan's military and the paramilitary Rapid Support Forces (whom the military has also accused of being involved), while international efforts to bring about peace so far have failed. Early in the war, Sudan accused Haftar from eastern Libya of supporting RSF through weapons deliveries. The Sudan has accused Haftar and his ally, the UAE, of also supporting the RSF. This includes direct drone attacks last month. The UAE denies these allegations. Egypt, which also supports Haftar and the Sudanese Army, has supported them for a long time. The army released a statement saying that the attack occurred in the triangle of Libya-Egypt-Sudan, a region to the north from one of the main frontlines of the war, al-Fashir - the capital of North Darfur. Khaftar's Forces could not be immediately reached for comment. The Sudanese Army said, "We will defend and protect our country, our national sovereignty and we will prevail regardless of the extent to which the United Arab Emirates, its militias and their conspiracy in the region will be supported." (Reporting and writing by Menna alaa el-Din; Khalid Abdelaziz, Jaidaa taha and Nafisa eltahir, Editing and rewriting by Kevin Liffey, Hugh Lawson and Nafisa eletahir)
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OPEC Secretary general: Oil demand will continue to grow, but there is no peak in sight
Haitham Al Ghais, OPEC secretary general, said that the growth in oil demand will continue to be robust for the next 25 years as the global population continues to grow. The organization predicts that the global energy demand will increase by 24% between now and 2050. Oil consumption is expected to exceed 120 million barrels of oil per day during this time period. This estimate is consistent with the World Oil Outlook 2024. Al Ghais, who spoke at the Global Energy Show, held in Calgary, Alberta, said that there was no imminent peak in oil demand. He said OPEC admired the efforts made by Canada's oil industry to increase its output of oil in recent years. OPEC has unwinded its production cuts faster than initially anticipated. Production for May, July and June increased by 411,000 barrels a day. Oil prices have been pushed up by the increases and concerns about President Donald Trump’s trade war affecting the global economy. On Tuesday, global Brent futures traded at $67.28 per barrel. The U.S. Energy Information Administration said on Tuesday that it expects Brent oil prices to drop near $60 per barrel by the end the year and to average $59 per barrel next year. This will affect U.S. production of oil. Al Ghais said on Tuesday that OPEC also welcomed recent pushbacks against what he called unrealistic climate goals. He stressed the need to reduce emission but not to pick and choose energy sources.
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EIA: US oil production to drop next year
The U.S. Energy Information Administration reported on Tuesday that U.S. crude production will decline next year due to lower commodity prices forcing drillers drop rigs sooner than expected. The EIA has predicted that crude oil production in the United States will fall to 13.37 million barrels a day in 2026 from 13.42 million barrels a day in 2018. The EIA had previously predicted that U.S. production would grow to 13,49 million barrels per day (bpd) next year. This is the first time the U.S. Department of Energy’s statistical arm has forecast a decline in U.S. crude oil production next year. It goes against President Donald Trump’s pledge to increase domestic energy production. The announcement comes amid growing concerns that the two-decade old U.S. shale boom has peaked. This is especially true as oil prices have fallen to multi-year-lows in recent weeks due to OPEC+'s easing supply restrictions and worries about the global economic arising from Trump’s erratic trading policies. The EIA has forecast that the world's total oil production will reach 104.4 million barrels per day (bpd) this year. This is an increase from the 104.1 million bpd it had predicted. The EIA expects that world oil production will average 105.1 millions bpd in 2019, down from the 105.4 million bpd it had predicted earlier. The EIA predicted that Brent crude oil will average $65.97 per barrel on the spot market this year and $59.24 per barrel next year. The EIA said that U.S. West Texas Intermediate Crude Oil will average $62.33 per barrel this year and $55.58 per barrel next year. Reporting by Shariq Khan and Scott DiSavino, New York; editing by Andrea Ricci
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EIA: Data centers will drive US electricity use to new highs by 2025 and '26.
The U.S. Energy Information Administration (EIA) said Tuesday that data centers, which are power-hungry and provide computing power to artificial intelligence and crypto currencies, will drive U.S. electric consumption to new records in 2025 and in 2026. EIA projects that power demand will increase to 4,193 billion Kilowatt Hours (kWh) by 2025, and 4,283 kWh by 2026. This is a significant rise from the record 4,097 kWh of 2024. The United States is expected to increase its electricity consumption for heating and transportation, in addition to data centres. EIA estimates that by 2025, residential customers will consume 1,517 billion kWh of electricity. Commercial customers will consume 1,474 billion and industrial customers 1,055 billion. These forecasts are compared to the all-time records of 1,509 billions kWh for residential customers in 2022, and 1,434 trillions kWh for commercial customers in 2024. EIA predicted that natural gas would lose its share in power generation from 42% to 40% by 2025. Coal's percentage will remain at 16%, same as in 2024, and then decline to 15% by 2026 as renewables increase. According to the outlook, renewable energy will increase from 23% to 25% by 2025. Nuclear power will remain at 19% until 2026. EIA predicted that gas sales for residential customers would increase to 13,1 billion cubic feet (bcfd), 9.7 bcfd, for commercial customers, and 23.5 bcfd, for industrial customers. However, the EIA forecasted that power generation would fall to 35,9 bcfd. This compares to all-time records of 14.3 billion cubic feet per day (bcfd) in 1996 for residential customers, 9.6 billion cubic feet per day in 2019 for commercial clients, 23.8 million cubic feet per day in 1973 for industrial consumers and 36.9 billion cubic foot in 2024 for electricity generation. (Reporting and editing by David Gregorio, Scott DiSavino)
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Zimbabwe will ban the export of lithium concentrates by 2027
Winston Chitando, the mines minister of Zimbabwe, said that Zimbabwe will ban exports of lithium concentrates in 2027. This is part of its efforts to increase local processing. Africa's leading producer of lithium (used in batteries that power renewable energy technologies) has banned the exportation of ore by 2022, and is pushing its miners to increase their domestic processing. Most of the lithium miners in Zimbabwe are from China. They export concentrates back to their country. Chitando stated that lithium sulphate plant are currently being developed in two Zimbabwean mines: Bikita Minerals owned by Sinomine, and Prospect Lithium Zimbabwe owned by Zhejiang Huangyou Cobalt. Lithium Sulphate is a product intermediate that can be refined to a battery grade material, such as lithium hydroxide and lithium carbonate. Chitando told the media after a weekly cabinet session that "because of the capacity in the country now, exports of all lithium concentrates would be banned by January 2027". Zimbabwe initially gave miners until March 2024 to develop plans for local refineries. However, after the price of lithium plummeted, it softened its position. Sinomine and Zhejiang Cobalt belong to a group of Chinese companies, including Chengxin Lithium Group Yahua Group, and Canmax Technologies. These firms have spent over $1 billion in the past 2021 on acquiring and developing lithium projects in Zimbabwe. (Reporting and editing by David Goodman, Jan Harvey, and Nelson Banya)
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The potato price hike is a major factor in the inflationary pain of Russia's poor.
In a farm near Moscow newly arrived Indian guest workers are planting potatoes and kale - work that is closely monitored by analysts from the central bank as they prepare to meet with board members in order to set interest rate. In developed countries such as the United States, food makes up about 14% or less of the basket that is used to calculate the inflation rate. However, in Russia, it can be as high at 40%. The rising prices of potatoes and other staples are a big reason for the tightening monetary policy. Even though the central bank cut its benchmark rate on June 6, it is still at the highest level since 2003. Inflationary expectations, which are a major driver of price pressures, remain high even though actual inflation has slowed down. The potato prices have tripled in the last year, when the crop was down by 12%. "It's crazy. The price of potatoes has always been low. "At this price, I won't buy them. I think very few people will," said Tamara a 67 year old pensioner in front of a Pyaterochka store discount in Moscow. Elvira Nabibullina, the governor of the Central Bank acknowledged the problem at her press conference following the rate reduction. She said, "People don't buy smartphones or televisions on a daily basis." "They buy food." "If prices are rising faster, this can lead to high inflation expectations." A study by Romir showed that Russian households spent 35% of their income on food last month, the highest in five years and a significant increase from 29% in April of 2013. POTATO CRISIS Pyaterochka offers Russian old-crop potatoes at 84 roubles (about $1.06) per kilogram and new-crop potatoes at 120 ($1.53), compared to an average of 43 roubles/kilo last year in retail stores. This is higher than the $0.92 per kilogram charged by Britain's largest supermarket chain Tesco. Prices of onions, cabbages, beets carrots and other ingredients in beetroot, a popular dish throughout Eastern Europe that is often used as a gauge for food inflation, are also up. Even President Vladimir Putin was caught off guard by the crisis. He had been praising Russia's agricultural growth and exports, despite Western sanctions, as a success, despite similar increases in butter and eggs earlier this year. In response, the government increased imports. Egypt tripled its potato supply to Russia while Belarus, Russia’s back-up potato supplier, announced that it was out of stock. STABILIZATION JULY The farmers blame the poor weather for the lower crop, but they also point out that the rising cost of fuel, machinery, fertilizers, and labour as well as the high interest rates are factors. Yaroslav Ilanov, the head of Sovkhoz Sergiyevsky Farm, said: "Last winter, it started out cold and then there was drought." The quality of the potatoes was below average. The potatoes of good quality were sold quickly and the situation started to worsen. He said that the high prices of this year helped compensate for some losses suffered by farmers following a bumper crop in 2023 when retail prices plummeted. The harvest this year is expected to better. Oksana LUT, Agriculture Minister said: "We'll see a drop in prices and a stabilization beginning July." TsMAKP, the think tank that advises the government on inflation, calculated the rate for the poor using basic food, utility and medicine costs, at 20% in April. This is ten percentage points higher than the official rate. TsMAKP stated that "the continued rapid rise in food prices led to a substantial divergence between price index for consumption baskets of low-income population and the overall inflation rates." In April, the average pension for the elderly was $298. Real terms, the pension fell for most of last year and then rose by 1.4% from 2025 onwards. Sergei Aleksashenko is a former central-bank official and an opposition economist who lives in exile in America. He pointed to pensioners and workers in the public sector. ($1 = 78.5000 roubles)
UK: Renewables Workforce to Grow to 42,000 In Next Five Years
New research published today by the Engineering Construction Industry Training Board (ECITB) has revealed that the engineering construction industry (ECI) workforce deployed in renewables, hydrogen and carbon capture and storage could total more than 42,000 by the end of the decade.
The ECITB’s latest forecast reports that by 2030 the offshore wind workforce could grow to more than 28,000, an increase of 48%, while the CCS sector workforce within the ECI could increase by 144% to more than 3,750.
The hydrogen workforce could grow to more than 4,500, an increase of 195%, while the combined workforce across other renewable sectors, including onshore wind, solar, biomass, energy from waste and biofuels, is predicted to grow by 20% to total more than 5,800.
Roles most in demand across these sectors will include design engineers, project managers, project controllers, commissioning technicians, general operatives, electrical technicians, platers, pipefitters and mechanical fitters.
The analysis was done with ECITB’s Labour Forecasting Tool (LFT), which provides insights into workforce numbers across regions and sectors, predicting trends and potential future demand for workers in the industry.
The tool, which was first launched in November 2023, has been updated using findings from the ECITB 2024 Workforce Census and publicly stated timescales on 3,000 active and future ECI projects across Great Britain.
The LFT predicts that the biggest increase in demand for workers across the ECI in the next five years will be in the carbon capture and hydrogen sectors.
“The significant Census response rate enabled the ECITB to provide more precise, up-to-date data for the benefit of industry. It allows us to improve the LFT to help make better predictions on future workforce trends and labour demands in renewables sectors.
“The updates to the LFT reinforce the scale of the challenges facing the industry that were outlined in our Workforce Census Report, which revealed that 81% of renewables employers in the ECI are experiencing challenges hiring workers.
“We recognize that addressing skills shortages in these sectors requires a collaborative, multi-agency approach that includes employers, governments, training providers and the ECITB.
“So, we’re calling on all of industry to work together to help increase the pool of people joining the ECI, while continuing to train and upskill existing workers.
“By investing in the workforce, the industry has a fighting chance of closing the skills gap and ensuring it has the skilled workforce it needs both for now and the future,” said Andrew Hockey, ECITB Chief Executive.