U.S. Imposes Sanctions on Venezuela’s Oil Industry
The US announced they will apply sanctions to Venezuela’s state oil company Petroleos de Venezuela SA (PDVSA) in order to force current President Nicolas Maduro out and empower opposition leader Juan Guaido. US President Trump decided to recognize Guaido as Venezuela’s legitimate head of state last week due to humanitarian issues and illegitimate elections under President Maduro. Canada, the European Union and much of South America are backing the US and President Trump. Russia, China, and Mexico are some of the supporters of President Maduro.
Crude oil is the largest source of income for Venezuela as the country relies on oil exports for 95% of its hard currency income. The Venezuelan economy has shrunk by half in the past six years and have been experiencing hyperinflation. Under the control of President Maduro, PDVSA crude oil production fell from 3.5 million barrels per day (mmbd) to roughly 1.2 mmbd. US Gulf Coast refineries use about 0.5 mmbd of Venezuelan crude. US refiners will look to another heavy crude supplier, although nations such as Canada, Mexico, and Iran are faced with challenges to bring their crude to market.
Paccar Outlines Path Toward Zero-Emission Trucks
Paccar, the parent company of Kenworth Truck Co., Peterbilt Motors Co., and DAF Trucks show promise for more efficient, cleaner, and automated heavy duty trucks. They believe the future of the industry will be very dynamic with technology accelerating the pace of change. To stay relevant, Paccar’s companies will put innovation at the forefront. One of the main goals is to make diesel trucks more aerodynamic and more efficient. The company also is developing and testing battery-electric, hydrogen-electric, and hybrid technologies to determine the best application for each energy type. Paccar will also introduce next-generation driver assistance features including steering assistance, enhanced braking, traffic jam cruise control and even higher levels of automation with autodocking and SAE Level 4 automated driving capabilities.
In Other News
Perceptions about automation depend on which side of the argument one is on, as autonomous trucks mean different things to different stakeholders in trucking.
Paccar Inc. CEO Ron Armstrong said the trucking industry is moving toward ever cleaner and more energy-efficient vehicles and will adopt increasingly advanced automated driving technology to assist drivers. Paccar is the parent of Kenworth Truck Co., Peterbilt Motors Co. and international brand DAF Trucks. Also see, PACCAR’s Forecast Sees a Slight Growth in Class 8 Truck Market After a Strong Year.
The U.S. imposed sanctions on Venezuela’s state-owned oil giant in a dramatic move designed to empower the opposition and cripple the government of President Nicolás Maduro by preventing the proceeds of U.S. crude sales returning to Caracas. Also see, US Sanctions Venezuela State Oil Firm, Escalating Pressure on Maduro.
American Truck Dealers announced a new industry coalition to push for the repeal of the 12% federal excise tax on heavy-duty trucks. That tax, originally enacted in 1917 to help pay for World War I, currently adds about $12,000 to $22,000 to the cost of a new truck, according to ATD, a division of the National Automobile Dealers Association.
Jan. 1 dawned on what will likely become one of the most consequential years in a generation for container shipping. Old challenges are off the table, and new ones have replaced them. Even with US longshore labor disruption rapidly becoming a distant memory, with long-term contracts now in place covering all three coasts, and a wave of carrier consolidation now largely realized, containerized supply chains are susceptible to disruption far out of shippers’ control.
Market conditions for shippers continue to improve due to the recent softening of truckload rates and lower fuel prices, according to FTR’s monthly Shippers Conditions Index reading for November.
EIA projects the United States will export more energy than it imports by 2020 as increases in crude oil, natural gas, and natural gas plant liquids production outpace growth in U.S. energy consumption.
Truck makers are wrestling with how to invest in automation, electrification and traditional powertrains — all at once. Additionally, more trailers will use telematics to relay diagnostic information and secure parts while new relationships will form between suppliers and technology startups.
Thirteen months after the US electronic logging device (ELD) mandate for truck drivers took effect, intermodal rail is in a “fight for flexibility” linked directly to the loss of time and truck capacity attributed partly to the ELD mandate. It’s an example of the wide ripple effect a regulation aimed at truck drivers has on other transportation modes and the US economy.
New Mexico Gov. Michelle Lujan Grisham on Tuesday committed her fledgling Democratic administration to aggressive targets for reducing greenhouse gas emissions amid a boom in oil and natural gas production in the state, while endorsing goals of the 2015 Paris climate agreement to limit global warming.
Thanks to cheap shale gas, the US Gulf Coast has seen a surge in new and expanded petrochemical plants, pipelines, liquefied natural gas (LNG) export facilities, and other capital construction projects that have kept engineering, procurement, and construction companies (EPCs) and project cargo forwarders and service providers busy for several years.
The downturn in imports headed for the U.S. has yet to be seen in the numbers for January due to shippers moving large volumes of goods in preparation for Chinese New Year. Many factories in China shut down every year to allow their workers to celebrate the holiday, which falls on Feb. 5 this year.
Three years ago, influential figures in the oil industry were sounding a clear warning: prices were too low, investment was collapsing and by the end of the decade the world would face a shortage. In reality, the market today is looking at several more years of plenty, so much so that OPEC is beginning its third year of production cuts just to prevent a surplus.
Greenlots, a Los Angeles-based provider of electric vehicle (EV) charging and energy management solutions, has signed an agreement to become a wholly owned subsidiary of Shell New Energies US LLC, a subsidiary of Royal Dutch Shell PLC.
Container and chassis dwell times in Los Angeles-Long Beach edge lower in December, giving ports, truckers, and shippers hope that the worst congestion since the West Coast labor dispute of 2014-2015 will begin fading in early February.
The Trump administration’s attempt to force out the president of Venezuela marked the opening of a new strategy to exert greater U.S. influence over Latin America. Also see, Venezuela Opposition Leader Outlines Plan to Revive Nation.
With the U.S. House Transportation and Infrastructure Committee prepping to debate a long-term infrastructure bill, one of the panel’s newest faces intends to push transit and housing priorities throughout the process.
Venezuela’s Citgo Petroleum Corp. is considering various options, including filing for bankruptcy in the U.S., to protect its operations amid a fight between the Trump administration and Venezuela’s ruling leftist government over control of the South American country’s state-owned energy assets, according to people familiar with the matter.
Investors, as a rule, are always looking for high-growth. Take the financial tech and freight tech sectors. Both have a huge addressable market and have been traditionally resistant to change – a recipe that makes them ripe for disruption. And both are experiencing explosive growth as a result.
New York state lawmakers reintroduced an omnibus climate change bill on Thursday that allows for a market-based mechanism to help achieve enhanced GHG reduction targets, with legislators seen facing better odds of passing the proposal in 2019 after Democrats took control the upper chamber this year.
North America’s oil drillers are turning to trains amid tight pipeline capacity triggering a rebound in crude-by-rail business that all but collapsed in the wake of high-profile accidents.
Uber Technologies Inc. is rolling out a ratings feature for cargo pickup and drop-off facilities through its freight-booking app that truckers can use to help decide which shipments they want to deliver.
Mexico has stopped buying U.S. light crude oil under its new president, a decision that former government officials say has likely aggravated the country’s gasoline shortage crisis.
Aerodynamically designed trucks can reduce airborne emissions and improve efficiency. Therefore the European Union (EU) Council is fast-tracking legislation that will allow for longer trucks on European roads.
The trucking market has undergone change in many forms over the years as technology and regulatory developments have exerted larger and more intense influence on each aspect of motor carriers’ operations.
Last year, the big question about the US economy was, “How fast will it grow?” Now, everyone’s asking, “How fast will it slow?” Euphoria has given way to worry and concern amid trade disputes, stock market volatility, and a partial government shutdown.