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EU green fuels talks slowed by detail

  • Market: Biofuels, Natural gas, Oil products
  • 29/11/21

EU energy ministers will meet this week to try and clear stumbling blocks — notably over targeted levels — in legislation aimed at boosting uptake of renewable fuels, including sustainable aviation fuels (SAFs) and maritime fuels with a lower greenhouse gas (GHG) intensity.

Member states had aimed for a common position on the proposals before the end of this year, which would have allowed ministers to press the European Parliament to open talks for a final legal text. But energy ministers are now only expected, on 2 December, to take note of their differences.

Chairing discussions, Slovenia would like ministers to give political "guidance" to member state experts on the "ambition" for SAFs, maritime fuel GHG reductions and, more generally, targets for renewable fuels.

For maritime fuels, member states "largely agree" with the objectives but call for "more time" to examine it properly. And countries are divided on the level and timing of the SAF blending mandates as well as SAF feedstocks. For maritime fuels, the GHG reduction targets are a stumbling block, accompanied by discussions about on-shore power supply requirements, penalties and the geographical scope. Further questions are whether to mandate GHG emission cuts for all ships above a gross tonnage of 5,000t, as well as which fuels to include and how to count these towards GHG intensity reduction targets.

Some agreement has been achieved on less contentious issues, for instance allowing member states to oblige operators to uptake SAF blends at smaller airports, catching more aircraft operators under the blending obligation and defining "yearly" aviation fuel and compliance demonstration by fuel suppliers.

Legal proposals were made by the European Commission, in July, to phase maritime transport emissions into the EU ETS from 2023 to 1 January 2026 and mandate a reduction in the GHG intensity of marine fuels. Ships should reduce their average GHG intensity of the energy used on board by 6pc by 2030, by 49pc by 2050 and by 75pc by 2050, all from 2020 levels.

For SAFs, the commission wants aircraft landing at EU airports to uptake fuel with a 2pc SAF blend by 2025, 5pc by 2030, 20pc by 2035, 32pc by 2040 and 63pc by 2050. From 2030, the 5pc SAF target to be composed of a minimum share of 0.7pc of synthetic aviation fuels or aviation-certified renewable fuels of non-biological origin (RFNBOs), rising to 5pc synthetic aviation fuels from 2035, 8pc from 2040 and 11pc in 2045.

Discussions on SAFs and maritime fuels have hosted similar reservations to those on an overarching revision of the EU's 2018 renewables directive (RED II), which proposes an EU target share of least 40pc renewable in EU gross final consumption of energy by 2030, aligning climate and energy legislation with the bloc's 55pc emissions-reduction target.

Beyond the level of ambition, Slovenia, while chairing discussions, has noted "several" states are against sub-targets for industry, notably the indicative 1.1 percentage point annual increase and a sub-target for RFNBOs. Similarly, energy ministers are divided over the indicative 1.1 percentage point increase in heating and cooling.

Renewables in transport is also contentious, with the 13pc GHG intensity reduction target for transport fuels seen as "too ambitious" for some states. And countries are divided over whether to shift the renewable transport target, currently a 14pc share of energy used in transport by 2030, to a GHG reduction target. Slovenia notes a "majority" of countries have reservations on increasing the sub-targets for advanced biofuels to at least 0.2pc in 2022, 0.5pc in 2025 and 2.2pc by 2030. Similarly, there is no enthusiasm for the proposed new 2.6pc sub-target for transport RFNBOs.


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08/04/25

Oil companies far from Paris accord alignment: Report

Oil companies far from Paris accord alignment: Report

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Flooding on US rivers mires barge transit


07/04/25
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07/04/25

Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US producers look overseas as shale stalls


07/04/25
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07/04/25

US producers look overseas as shale stalls

New York, 7 April (Argus) — US shale producers are seeking to deploy their expertise around hydraulic fracturing in international markets, in a marked departure from their recent strategy and one that is set to accelerate as domestic output slows. Continental Resources — whose billionaire founder and executive chairman Harold Hamm was one of the driving forces behind the shale revolution after figuring out how to unlock the vast resources of North Dakota's Bakken basin with horizontal drilling — recently announced plans to explore for unconventional resources in Turkey. And EOG Resources aims to kick-start a drilling campaign in Bahrain. Early successes could prompt a scramble by peers to follow suit, which would be a reversal of the trend seen in the early days of the shale boom when the industry largely retrenched from overseas investments to concentrate on exploiting domestic plays. And while decisions to venture abroad have been mainly based on individual company strategies up until now — and investors have been lukewarm at best — forecasts for shale to start plateauing in the coming years could lend them greater impetus. "Maybe, as they have success, that will draw others in," energy investment firm Bison Interests chief investment officer and founder Josh Young says. "It could be the start of something big." The caveat is that a potential international push at scale is unlikely to happen overnight, and companies such as Murphy Oil and APA — which already have exploration campaigns under way from Vietnam to Ivory Coast and Suriname — have underperformed compared with their rivals. "You are not seeing that market acceptance or market credit for international projects," Young says. That perception may shift if international exploration yields above-average returns for shareholders, boosting the case for producers to seek to build out their inventory further afield as growth in the shale patch slowly grinds to a halt. International exploration may have its own risks, given shale's success story has largely been confined to the US and Argentina to date. But the "cost of entry is relatively low compared to a North American landscape with little room for exploration and high premiums for solid assets in the Permian", consultancy Rystad Energy vice-president for North America oil and gas Matthew Bernstein says. Hamm, who took Continental private more than two years ago after tiring of public markets, recently warned that US shale is beginning to plateau . "What we really need to concentrate on is where we go as we crest right here in America, what the downside looks like," he told the CERAWeek by S&P Global conference in Houston. He also signalled a greater openness to drill outside North America. Talking Turkey Continental recently announced a joint venture with Turkey's national oil company and US-based TransAtlantic Petroleum to develop oil and gas resources in southeast and northwest Turkey. State-owned Turkish Petroleum has pegged initial estimates from the Diyarbakir basin in the southeast that could reach 6bn bl of oil and 12 trillion-20 trillion ft³ (340bn-570bn m³) of gas. The Thrace basin in northwest Turkey may hold up to 20 trillion-45 trillion ft³. "We see immense potential in Turkey's untapped resources," Continental's chief executive, Doug Lawler, says. And in February, EOG Resources announced a tie-in with state-owned Bapco Energies to evaluate a gas prospect in Bahrain. EOG will take on the role of operator, and the venture is awaiting further government approvals. "The formation has previously been tested using horizontal technology, delivering positive results," EOG chief executive Ezra Yacob says. By deploying its existing skillset around horizontal drilling and completions, EOG is confident of achieving results that are competitive with projects in its domestic portfolio. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump shakes global trade order, exempts energy


07/04/25
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07/04/25

Trump shakes global trade order, exempts energy

Washington, 7 April (Argus) — The US energy industry may feel relieved after President Donald Trump spared oil and other energy commodities from the punitive taxes he announced on nearly all US trading partners on 2 April. But global economic fallout from a drastic protectionist measure will affect the energy industry indirectly, and countries looking for ways to retaliate against Trump's trade actions may follow China's lead in targeting the US' oil, LNG and LPG exports. Trump on 2 April imposed a minimum 10pc tax on all foreign imports from 5 April, with the tariff as high as 34pc for China and 20pc for the EU after 9 April. Trump's executive order exempts all energy commodities and many metals and critical minerals. The 2 April tariffs will not apply to steel and aluminum, cars, trucks and auto parts, as these are already subject to separate tariffs. A 25pc tariff on all imported cars and trucks came into force on 3 April, while a 25pc tax on auto parts will take effect on 3 May. Trump calls his new tariffs "reciprocal", suggesting that foreign countries —which he alleges have high tariffs on US products — will be forced to negotiate to lower their barriers to trade. But Trump and his key allies in Congress have left little doubt that the tariffs are here to stay. The projected tariff revenue, which Trump's administration claims will be as high as $600bn/yr, is a key metric as Congress is advancing a bill to extend tax cuts and other economic priorities, Senate Republican majority leader John Thune says. Consultancy Oxford Economics is likely to lower its 2025 global economic growth forecast by 0.6 percentage points in the wake of the tariffs. But the Trump administration has dismissed the negative reaction from stock markets as a short-term adjustment. "The gravy train is over for the globalist elites, who have profited on the backs of hard-working Americans, looting us of our industries and hollowing out our heartlands," government agency Small Business Administration head Kelly Loeffler says. Loeffler's pre-Trump administration credentials include senior positions at financial firms with global reach, including the Ice exchange. Negotiate or fight back? China is the biggest casualty of Trump's protectionist turn. Including tariffs Trump imposed in February-March , all US imports from China will now be subject to a 54pc tariff, with some products taxed even higher — electric vehicles face a 154pc tax. The previous bout of Trump's trade war saw some of the bilateral trade shift to other east Asian economies, especially Vietnam — but US imports from that country will now be subject to a 46pc tariff. Conflicting messages — Trump said on 3 April he could make a deal over tariffs if it is "phenomenal", even though his White House is inputting tariff revenue in planned budgetary process — have led many key US trading partners to hope that a major trade war could be averted. The EU is preparing countermeasures, including punitive taxes on US technology giants, but European officials are also weighing concessions before the 20pc tariff starts on 9 April. The UK, which is subject to a 10pc import tax, is hoping to strike an "economic prosperity deal" with Trump, prime minister Keir Starmer says. Beijing on 4 April announced a 34pc retaliatory tax on all US imports, with no exemptions, even though Chinese petrochemicals firms have no ready alternative sources for US LPG supply. Ottawa's similarly strong retaliation seems to have worked — Trump spared Canada and Mexico from additional penalties on 2 April and did not revive the tariffs, imposed briefly last month, that were set to upend a highly integrated North American energy market. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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USDA to release paused funds for higher biofuel blends


04/04/25
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04/04/25

USDA to release paused funds for higher biofuel blends

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