Tropical Storm Barry Makes Landfall in Louisiana
Tropical Storm Barry made landfall on Saturday, bringing heavy wind and rain on the Gulf Coast and marking the first hurricane of the Atlantic season. Although severe flooding was anticipated, Barry began losing steam when it touched down on the Louisiana coast and was eventually downgraded from a tropical storm to a tropical depression.
According to the US Bureau of Safety and Environmental Enforcement, nearly 73% of crude oil production in the U.S.-regulated areas of the Gulf of Mexico was cut because of the storm, removing 1.38 million barrels per day (bpd) of crude oil from the market. This translates to 283 platforms shut in by oil producers in the region. In response, crude rose, with Brent prices up 3% to $66.82 and WTI up 4% to $60.21 week-over-week.
With the immediate threat to production and refinery operations abated by Barry’s continued movement northward, Louisiana refineries – including the Phillips 66 Alliance refinery that was shut on Friday due to flooding fears – will resume normal operations. Five refineries in the region remained in operation over the weekend, and are expected to continue production.
First Volvo Electric Truck Expected This Year
As part of a multi-partner initiative in California, Volvo is developing battery-electric haul trucks for use in drayage from the ports of Los Angeles and Long Beach to inland warehouses. A major tenet of Volvo’s Low Impact Green Heavy Transport Solutions (LIGHTS) program, the initiative will partner with various stakeholders in the electric vehicle ecosystem in California. This includes NFI, a third-party logistics hauler, and Southern California Edison which will oversee infrastructure requirements, assessing charging equipment and minimizing potential impact to the power grid. The location of the project in California is a strategic choice, with grant funds available from the state’s cap-and-trade program that can be used toward improving freight and warehouse efficiencies and reducing emissions. Volvo plans to begin selling the electric trucks on a larger scale in California beginning in 2020.
In Other News
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Iran has described the UK’s detention of a tanker carrying Iranian crude off the coast of Gibraltar last week as “threatening” and “illegal”, and has once again called on UK authorities to release the vessel.
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US shippers have their choice of carriers and trucks as the third quarter begins, but how long will that last? There’s more excess truckload capacity on US highways this July than at any time since the nadir of the last economic slow patch in 2016.
BP Plc on Tuesday began to evacuate and shut in production at four offshore U.S. Gulf of Mexico production platforms as a developing weather disturbance moves across the Gulf of Mexico, a company spokesman said.
Day cabs — especially those with a high roof and pulling a box trailer — can qualify for SmartWay designation that signifies the equipment significantly lowers fuel use and reduces air pollution, the Environmental Protection Agency said July 9.
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The Quebec government is intervening before the Supreme Court in Saskatchewan’s challenge to the federal carbon tax. Quebec Premier François Legault said his government is in favor of carbon pricing, but it must be exclusively a provincial responsibility.
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A British warship trained its guns on three Iranian vessels that tried to block the passage of a U.K.-flagged oil tanker through the Persian Gulf, the country’s Defense Ministry said, a confrontation that comes amid heightened tensions between Washington and Tehran.
The Mexican government will propose an additional tax reduction for heavily indebted state oil company Pemex in the nation’s 2020 budget, President Andres Manuel Lopez Obrador said Thursday, the latest measure to strengthen the company.
The head of the American Association of Port Authorities is stepping down after more than three decades with the group, and is handing the reins to an industry veteran who believes that the importance of trade to the United States economy will win out amid ongoing negotiations with other countries.
The Venezuelan government and US-backed opposition are inching toward an agreement on holding new presidential elections in nine months, but closely watched negotiations are still far from unraveling the OPEC country’s protracted conflict.
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