OPEC Oil Production Dips Despite Saudi Arabian Surge
In the Organization of Petroleum Exporting Countries (OPEC) Monthly Report, the collective group’s crude oil production declined in November. Iran continues to see the largest drops in crude oil production in the cartel with output falling 0.380 million barrels per day (mmbd). Venezuela, Nigeria, and Iraq also experienced declines. However, Saudi Arabia boosted production significantly which effectively offset the declines in Iran. Saudi Arabia’s production rose by 0.377 mmbd, which is a record high for the country. Saudi Arabia’s oil production surge was announced less than a week before OPEC decided to collectively cut 1.2 mmbd starting January 2019 with the support of other non-OPEC producing countries. Although the group plans to cut a significant amount, it is expected that the cuts will be gradual starting in 2019.
Libya, an oil producing country apart of OPEC, declared force majeure on exports from the El Sharara oilfield, due to an attack by local militia group. The oil field will see a production loss of 0.315 mmbd at El Sharara – Libya’s largest oil field – and an additional 0.073 mmbd at the El Feel oilfield. The Libyan government said they will not negotiate or “pay a penny to anyone who closed the field.” Libya produced roughly 1.1 mmbd before the force majeure.
Volvo Trucks to Introduce All-Electric VNR Model
Volvo Trucks are introducing a class 8, all-electric version of their VNR regional-haul commercial truck to North America. The first version of the truck will be released in California in 2019 and will expand across North America in 2020. Specifications such as weight, range, or final design were not yet announced, however the powertrain will be based on its FE Electric cabover model in Europe.
In Other News
The drive to solve “last mile” delivery challenges is leading to some unusual selections of distribution sites across the logistics world. From tents on vacant lots to converted parking garages, companies are getting creative as they build new spokes in their delivery networks.
Trump administration officials at high-stakes climate talks here offered an unapologetic defense of fossil fuels on Monday, arguing that a rapid retreat from coal, oil and gas was unrealistic.
Libya’s National Oil Company (NOC) on Monday declared force majeure on exports from the El Sharara oilfield, which was seized at the weekend by a local militia group. NOC said the shutdown would result in a production loss of 315,000 barrels per day (bpd) at its biggest oilfield, and an additional loss of 73,000 bpd at the El Feel oilfield.
Oil prices posted their worst month in a decade in November and have fallen more than 30% from multiyear highs. The dramatic move has prompted investors to try to assess the impact on global growth heading into next year.
The Baltic and International Maritime Council (BIMCO) has published two new bunker clauses to be incorporated into time charter parties. Both are designed to be “simple and practical” and ease the global fleets’ Jan. 1, 2020 transition to a low-sulfur fuel regime.
Washington Gov. Jay Inslee on Monday proposed an ambitious package of legislation to tackle climate change, including eliminating fossil fuels like natural gas and coal from the state’s electricity supply by 2045.
Beijing sought to ease tensions with Washington as its top trade negotiator told U.S. officials that China was planning to reduce auto tariffs and boost purchases of soybeans and other crops, according to people in both capitals briefed on the discussions.
Daimler will buy battery cells worth more than 20 billion euros (18 billion pounds) by 2030 as it readies mass production of hybrid and electric vehicles, the maker of Mercedes-Benz cars said on Tuesday.
Volvo Trucks will bring electric-powered commercial trucks to North America next year by introducing a battery-electric version of its VNR regional-haul model. The truck manufacturer said it will first deploy the zero-emissions VNR Electric tractor in 2019 through demonstrations in California and will begin selling the vehicle across North America in 2020.
As barge rates slump in the face of increased rainfall, the Central Commission for the Navigation of the Rhine (CCNR) has warned that Rhine River water levels could fall again in December. /water levels are currently rising following recent rainfall that has led to significant “surface discharge” into the river. As a result of the increased water levels, barge capacity has also increased which is pushing freight rates lower as a result.
During the week ending November 30, 2018, the United States exported more crude oil and petroleum products than it imported for the first time in weekly data going back to 1991. From November 24–30, the United States exported an estimated record 3.2 million barrels per day (b/d) of crude oil as well as an estimated 5.8 million b/d of petroleum products such as distillate fuel oil, motor gasoline, and propane.
There is a renewed sense of urgency behind the Brexit Preparations being undertaken by shippers and their service providers as they search for ways to keep supply chains moving after the United Kingdom (UK) exits the European Union (EU) on March 29.
Norwegian oil giant Equinor is doing something few companies have dared to do ahead of the U.K.’s planned exit from the European Union. It’s investing in Britain. The state-backed energy company formerly known as Statoil has an ambitious plan for investments in the U.K.’s oil-rich North Sea. When much of the U.K. economy is on ice, Equinor is hiring across Britain to support its plans.
The nation’s motor carriers and their drivers see different priorities when it comes to issues facing the trucking industry, a new study found. In the recent American Transportation Research Institute report listing its annual top 10 issues for trucking, motor carriers listed the driver shortage and driver retention as the top two. But commercial drivers place the shortage and retention much lower, fifth for driver retention and ninth for the shortage.
OPEC said Wednesday that its total crude-oil production came down slightly in November but output from Saudi Arabia—the cartel’s largest member—surged to a record high, just as producers are gearing up to cut output next year, reports the Journal.
US retail sales of Class 8 trucks in November were 21,302, up 21.8 percent compared with a year earlier. In the 2017 period, sales were 17,488.
The new president of Volvo Trucks North America predicted another banner year for the truck market in 2019 and voiced a desire to promote more respect for the truck driving profession.
When the Trump administration laid out a plan this year that would eventually allow cars to emit more pollution, automakers, the obvious winners from the proposal, balked. The changes, they said, went too far even for them.
The global oil market could move into deficit sooner than expected thanks to OPEC’s output agreement with Russia and to Canada’s decision to cut supply, the International Energy Agency said on Thursday.
Mounting pressure from mega-ship calls is pushing container ports towards automating their operations, but Mckinsey research suggests terminals will struggle to achieve the reduction in operating expenses and the rise in productivity required to justify the investment in automation.
The U.S. Environmental Protection Agency’s Office of Inspector General announced last week that it will investigate concerns surrounding the agency’s use of research by Tennessee Tech University. The school last year produced a study claiming that gliders do not produce greater emissions of greenhouse gases or particulate matter than new trucks.
Twelve months ago, it was quite clear shippers would battle with tight capacity and rapidly rising rates in 2018. This time the 2019 outlook is murky where US truckload and intermodal rates will go and whether new capacity will provide relief to shippers.
Trade tensions are starting to show up in outbound business at U.S. ports. Seaborne exports at the big Southern California gateway ports took a dive last month in a new sign of the volatile impact tit-for-tat tariffs between the U.S. and China is having on container trade flows.
As electric vehicle technology becomes increasingly viable for commercial trucking, fleets and manufacturers are preparing to put the first generation of battery-electric trucks on the road.
Spot market freight volume, rates slipped again in November: Spot market freight volume in November slipped 2.5 percent from October and a whopping 24 percent year over year from November 2017, according to load board operator DAT.
The bunker industry is in a fragile state as it enters its last year before tougher sulfur restrictions come into force, with several key players in retreat. The supply questions around fuel availability and compatibility for this change are starting to be answered, but a big question for the industry next year will be whether credit availability will be sufficient.