Trump ‘right to reverse’ LNG pause: ExxonMobil

Spanish Market: Crude oil, Emissions
31/01/25

The previous administration's moratorium on new LNG export facilities and limits on offshore drilling were "policy mistakes" that President Trump was "right to reverse," says ExxonMobil.

"Oil and natural gas remain essential to economic growth, jobs, and national security, both for ourselves and our allies around the globe," chief executive officer Darren Woods told analysts today.

Trump has also promised to open up new offshore areas for exploration.

If he follows through with that move, "we will be in there with the rest of industry evaluating to see if we think there's an opportunity to cost-effectively develop those resources," Woods said after the company posted fourth-quarter results.

Some subsidies included in the former Joe Biden administration's Inflation Reduction Act are needed to help get low-carbon markets off the ground, he added, referencing ExxonMobil's Baytown low-carbon hydrogen project.

"We believe these incentives are critical to establishing a fully market-based future where hydrogen competes head-to-head with traditional fuels," Woods said. "But the end goal is clear: a system where no energy source remains dependent on government subsidies."

By Stephen Cunningham

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04/03/25

Trump aide signals possible retreat on tariffs

Washington, 4 March (Argus) — President Donald Trump's top trade adviser on Tuesday signaled a possible hasty retreat on Canada and Mexico tariffs that roiled financial and energy markets and drew threats of retaliation from the US' neighbors. The US on Tuesday imposed a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. The moves drew strong condemnation from the other governments and industry groups throughout North America. The US administration has been in talks with the governments of Canada and Mexico all day and Trump "is going to work something out with them," US commerce secretary Howard Lutnick said in a televised interview late afternoon on Tuesday. "It's not going to be a pause, none of that pause stuff, but I think he's going to figure out, you do more, and I'll meet you in the middle some way and we're going to probably be announcing that tomorrow." Lutnick suggested that Trump could possibly "give relief" to products covered by the US-Mexico-Canada (USMCA) free trade agreement negotiated in his first term. "If you haven't lived under those rules, well then you got to pay the tariff," Lutnick said. Nearly all trade between the three countries is covered by the USMCA, so a return to the terms of that agreement would merely mean lifting the tariffs Trump imposed on Tuesday. Lutnick's remarks may be an attempt to mitigate the negative market reaction to Trump's tariffs. The S&P 500 index fell on Tuesday to the lowest point since Trump won the election to his second term in November. US refining and petrochemical industry group AFPM has urged the Trump administration to find a resolution quickly to prevent what would be a continent-wide trade war. Ottawa and Mexico City vowed a strong response to Trump's tariffs. "This is a very dumb thing to do," Canadian prime minister Justin Trudeau said on Tuesday. Trudeau retaliated with a 25pc tariff on $30bn of US imports, followed by another $125bn of imports in 21 days. The largest Canadian provinces, Ontario and Quebec, separately announced possible retaliatory measures in the form of taxes or curbs on electricity exports to the US. Mexican president Claudia Sheinbaum called the US' tariff on all Mexican goods unjustified but is withholding details of her government's planned counter-tariffs and other measures until Sunday. Trump, Lutnick and other US Cabinet members gave confusing signals on the level of tariffs ahead of their imposition, with Lutnick suggesting on 2 March that the rate may be lower than 25pc. The decision-making in the second Trump administration is even more centralized than during his first term, with all key decisions made by the president, who frequently chooses to overrule public remarks by his advisers and announce his intentions via his social media platform. Trump is scheduled to address a joint session of Congress on Tuesday evening. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada must build pipelines beyond the US: Producers

04/03/25

Canada must build pipelines beyond the US: Producers

Calgary, 4 March (Argus) — US tariffs that went into effect today underline Canada's need to build energy infrastructure that limits its dependence on its southern neighbor and improve access to other markets, Canadian oil and gas producer groups said today. "A bold and necessary action that the Canadian government should take to respond is to build retaliatory pipelines to diversify our economy to other markets beyond the United States," the Explorers and Producers Association of Canada (EPAC) said following the US' imposition of a 10pc tariff on Canadian energy. The Canadian oil and gas industry has long criticized federal energy policy for inhibiting development and scaring off investors amid concerns for getting its production to markets. This includes what it called burdensome regulations and a ban on oil tanker traffic on much of its Pacific coast. The government under Prime Minister Justin Trudeau effectively killed Enbridge's 525,000 b/d Northern Gateway pipeline project and TC Energy's 1.1mn b/d Energy East project, which would have allowed Canadian oil producers to bypass the US. Regulations need to change to allow for such project again, industry groups say. "Canada urgently needs a policy overhaul to create a streamlined and durable regulatory framework," said Canadian Association of Petroleum Producers (CAPP) president Lisa Baiton. Long-term stability for Canadian producers will come from diversifying exports into Asia and Europe. "We are at a significant moment in Canada's history — we need to seize this moment," said Baiton. Canada sends about 80pc of its 5mn b/d of crude production to the US through a combination of onshore pipelines, crude by rail and waterborne cargoes. Canada accounts for 60pc of all US crude imports, with refiners in the US midcontinent having few alternative supplies. EPAC, which represents 100 producer and associate members who produce 40pc of Canada's crude and 65pc of the country's natural gas, encouraged the Canadian government to continue to work on border security concerns that the US had raised and take a measured approach in its response. Heavy sour WCS priced at Hardisty, Alberta, was assessed at a discount of $13.80/bl to the April Nymex WTI calendar month average on 3 March, wider by about 95¢/bl compared to the session prior. Indications Tuesday show WCS has continued to fall, but not to the depths seen on the eve of the previous trade threat on 3 February — before a deal was struck to delay the tariffs by 30-days — when it sank as low as a $15.75/bl discount. This suggests traders may have already priced in the trade action ahead of the latest threat. Some degree of price support could also be coming from upcoming turnaround season in Alberta's oil sands region. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariffs could crash auto industry: Ontario

04/03/25

US tariffs could crash auto industry: Ontario

Calgary, 4 March (Argus) — The tightly-intertwined US and Canadian auto manufacturing industry could grind to a halt in as little as 10 days due to US tariffs, according to Ontario premier Doug Ford. Raw materials and partially assembled vehicle components can cross the US-Canadian border between manufacturing plants as many as eight times before becoming a finished vehicle, Ford said today. But the 25pc tariffs the US imposed on most Canadian and Mexican goods effective today will add costs and disrupt supply chains. Canada and the US could have combined efforts to make the two countries the safest and secure, Ford said, but "... unfortunately, one man, president Trump has chosen chaos instead." Ontario, Canada's largest province by population and a major vehicle manufacturing hub, may also cut nickel exports to the US, Ford said, and may put a 25pc surcharge onto electricity flows into New York, Minnesota and Michigan if the tariffs persist. Canada supplied about 46pc of US nickel from 2019-2022 according to the US Geological Survey, and nearly 36TWh of electric power to the US. Ontario is also banning US companies from government contracts, including cancelling a $100mn contract with Elon Musk's Starlink internet services. Ford also directed the Liquor Control Board of Ontario (LCBO) to remove US products from its store shelves, meaning other retailers, bars and restaurants will also be unable to restock American goods. The LCBO is the largest purchaser of alcohol in the world, according to Ford, selling nearly C$1bn in products, including 3,600 products from 35 US states. Ontario's action comes after Prime Minister Justin Trudeau announced Canada's retaliation of 25pc tariffs on $30bn of US imports, followed by another $125bn of imports in 21 days' time. Canadian energy exports to the US are subject to a lower 10pc tariff. Alberta premier Danielle Smith called the US tariffs "both foolish and a failure in every regard." She called on her Canadian peers to fast-track the construction of dozens of resource projects to help relieve the country's dependence on the US for sales. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Germany launches second industry decarbonisation call

04/03/25

Germany launches second industry decarbonisation call

Berlin, 4 March (Argus) — Germany's economy ministry has launched a second call for funding decarbonisation projects aimed at mid-sized industry companies, the tender manager announced today. The main tender part, managed by Cottbus-based Competence Centre for Climate Protection in Energy-Intensive Industries KEI, addresses decarbonisation measures planned by mid-sized companies, either through the electrification of processes or the use of hydrogen. Support is capped at €200mn per project. Interested companies are expected to submit a "meaningful" outline of their project by 15 May, KEI said. The formal application phase will begin once their proposal has been accepted. Financing will be provided under the EU's Temporary Crisis and Transition Framework (TCTF), which aims to accelerate green technology funding for a climate-neutral economy. To conform with EU state aid law, grants under the TCTF must be approved by 31 December. The other part of the tender is managed by the Julich research institute and addresses carbon capture and storage or use projects, restricted to hard-to-abate emissions. Support is capped at €30mn per project, or €35mn for industrial research. A total of €3.3bn has been set aside until 2030 for the support, to be financed by Germany's climate and transformation fund KTF, itself financed through the EU emissions trading system and Germany's domestic carbon price. Both tender parts are aimed at industrial companies based in Germany, and which plan or operate plants with industrial processes that are to save at least 40pc of their carbon emissions in production through investments or research projects. The programme is focused on, but not limited to, companies in energy-intensive basic industries such as steel, chemicals, glass, ceramics, paper, cement and lime. The first tender round was held in August . The outgoing government has planned annual calls for funding until 2030. Germany's economy ministry has also held tenders for carbon contracts for difference aimed at larger industry groups. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US sets 3 April for Chevron's Venezuela exit

04/03/25

US sets 3 April for Chevron's Venezuela exit

Washington, 4 March (Argus) — Chevron has until 3 April to wind down its crude production and exports in Venezuela, according to new guidance that the US Treasury Department's sanctions enforcement arm issued today. US president Donald Trump on 26 February said he would not extend a sanctions waiver that allowed Chevron to lift crude cargoes from its joint venture with Venezuelan state-owned PdV. Chevron resumed its operations in Venezuela in November 2022 and gradually increased production there, becoming the sole importer of Venezuelan crude into the US — at a pace of 231,000 b/d last year, according to US Energy Information Administration data. "We are aware of the president's directive and will abide by any direction given by the US Treasury Department to implement that directive," Chevron said, adding that it "conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by US government." Venezuelan crude imports into the US are coming to a halt while Canadian heavy crude imports by pipeline have become subject to a 10pc import tax from 4 March. Today's guidance from Treasury's Office of Foreign Assets Control does not address the status of other exceptions from Venezuela sanctions granted to dozens of other companies in 2022-2024 to allow them to load crude and other energy commodities from PdV. Some of those crude cargoes ended up delivered to ports in Spain and Italy in the past two years. Independent refiners in China are the primary customers for Venezuelan Merey crude, imported through a network of ships, agents and brokers established to circumvent US sanctions. The scheme resulted in significant discounts for Chinese buyers of Merey, which traded at discounts ranging from $6.50-7/bl against May Ice Brent, for March arrival. 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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