Surging Crude Oil Output
The Organization of Exporting Countries (OPEC) increased crude oil production in July, despite decreasing output from Venezuela, Iran, Libya, and Saudi Arabia. As a whole, OPEC production averaged 32.32 million barrels per day (mmbd) in July, which was 41,000 barrels per day more than June. Kuwait, Nigeria, and the United Arab Emirates (UAE) are leading the charge in increased output. The additional output is a result of OPEC and supporting countries agreeing to increase crude production by 1 mmbd to reach their original quota agreed upon by the cartel in the beginning of 2017. OPEC also forecasts crude production outside the cartel will increase the rest of this year. This is largely driven by surging US crude production that recently hit 11 mmbd and is expected to continue this upward trend. Additionally, American oil companies are burning cash to keep up with the oil boom and sustain the increasing oil production. Continuous investment in US oil fields are pushing crude production up to compete directly with OPEC for energy dominance.
Record Clean Energy Volumes Purchased in 2018
As organizations work to be greener and less carbon intensive, the total amount of clean energy acquired has increased. According to Bloomberg New Energy Finance, corporations have purchased 7.2 gigawatts (GW) of clean energy globally thus far in 2018. This exceeds the 2017 annual numbers of 5.4GW. Corporate sustainability plans are the driving force to reduce or offset greenhouse gas emissions. With the sustainability initiatives, companies are also seeing cost benefits to support the decision to move away from dirtier and more carbon intensive energy. Photovoltaic (PV) or solar panel costs are down 84 percent since 2010 and wind turbine costs are down 32 percent in the same timeframe. With technology improvements and reduced costs, companies are locking in fixed, long-term contracts to continue the growth of clean energy. Most of the growth is coming from US and Nordic companies, accounting for 80 percent of corporate procurement of wind and solar investments. As more companies move in this space for power generation, it is likely that companies will continue to move in this space for their transportation supply chains. Currently the transportation energy market is dominated by diesel, taking up roughly 92 percent of US on-road fuel. However, this is down from 98 percent 10 years ago as more supply chains are moving to cleaner energy including renewable natural gas, biodiesel, and renewable diesel. This also opens the door for emerging markets like electric vehicles and hydrogen fuel cell vehicles.
In Other News
A new report from Bloomberg NEF shows that corporations have already purchased 7.2GW of clean energy globally in 2018 through July, shattering the previous record of 5.4GW for the whole of 2017.
American oil companies—primed to reap the benefits of rising prices after years of wringing more from wells for less—are seeing profits erode in the face of rising costs.
OPEC crude production rose in July, despite sliding output in Libya, Iran and Saudi Arabia. The bloc’s output averaged 32.32 million barrels a day in July, up 41,000 barrels a day from June. Increased production in Kuwait, Nigeria and the United Arab Emirates more than offset the drop elsewhere.
Eight months into the electronic logging era, the impact of the US electronic logging device (ELD) mandate is becoming clearer, and it’s both greater and less than anticipated.
Discussions about autonomous vehicles have now graduated to questions on the need for regulations and equipping systems with vehicle cybersecurity – a relevant concern that needs to be addressed. However, what might be lost in this is the fact that auto cybersecurity has been a necessity for a long while now, ever since the time OEM companies rolled out connected cars in our midst.
Iran will send its oil minister, Bijan Zanganeh, to a September meeting of the monitoring committee overseeing OPEC’s supply accord with Russia and other allies, in another bid to preserve the sanctions-hit country’s crude market share.
Many truck drivers get their start hauling for one of the larger carriers like a Schneider National or a Swift, for instance. After a period of time, though, the driver decides more money and more freedom is available if they go it alone.
Chinese oil importers are shying away from buying U.S. crude as they fear Beijing’s decision to exclude the commodity from its tariff list in a trade dispute between the world’s biggest economies may only be temporary.
Tough new rules on marine fuel are forcing shipowners to explore liquefied natural gas as a cleaner alternative and ports such as Gibraltar are preparing to offer upgraded refueling facilities in the shipping industry’s biggest shake-up in decades.
U.S. crude oil stockpiles jumped unexpectedly last week despite record high refinery runs, while gasoline stocks decreased and distillate inventories grew.
A federal judge in Montana ordered the U.S. State Department to do a full environmental review of a revised route for the Keystone XL crude oil pipeline, a move that could delay the project and prove a setback for the Trump administration.
The fastest-growing companies in America are a force, notching collective revenue of more than $206.2 billion in 2017 and three-year revenue growth rates that top out at 75,661. In order to make the list a company has to have been in business for at least four years.
Nikola Motor has made plenty of headlines as it develops a hydrogen-electric truck, but it is not the only company working on such as Class 8 vehicle. In fact, there is another company that not only is building one but is about to introduce its second-generation model to real-world operation in the Ports of Long Beach and Los Angeles.
A.P. Moeller-Maersk A/S is trying to focus more narrowly on shipping even as its profits in the business get tighter. The Danish maritime giant is moving to spin off its offshore drilling unit next year.
Importers from Mexico are increasingly turning to ocean services connecting to Florida ports to serve Central Florida and the Southeast United States, avoiding the risks of higher costs, longer transits, and delays from conventional land routes across the US-Mexico border. The Port of Miami began investigating ways to increase Mexican business five years ago, but progress really took off when Grupo Mexico Transportes purchased the Florida East Coast Railway in 2017.