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US energy secretary urges oil sector to diversify

  • : Crude oil, Emissions, Natural gas
  • 21/04/26

Oil companies that are slow to shift toward cleaner energy source risk of being left behind as the world reduces carbon emissions, US energy secretary Jennifer Granholm said.

Her remarks today are the latest from cabinet members serving under President Joe Biden who are urging the industry to decarbonize. Granholm said diversifying would help the oil sector remain competitive over the long term, as the US steps up efforts to reach new commitments under the Paris climate accord.

"The bottom line is you have got to move," Granholm said today during an event hosted by news outlet Politico. "You cannot hang on and be the Kodak or the Blockbuster Video of the energy world. You have got to diversify."

Blockbuster and Kodak were household names in video rental and film but lost business as their industries went digital. The companies sought bankruptcy protection in 2010 and 2012, respectively.

The US over time will shift to clean electricity as it reduces carbon emissions, Granholm said, with a likely continued role for biofuels in hard-to-decarbonize industries such as air travel. Granholm said companies like ExxonMobil are offering proposals like a hub for carbon capture in Houston because they see where the world is headed.

"Some of the oil companies have decided that they are going to diversify and become diversified energy companies," she said. "The proof will be in the pudding. You do not want to just assume that somebody is greenwashing."

ExxonMobil, Chevron, BP and other major oil companies have urged the US to put a price on carbon emissions to achieve its climate goals. Biden has sought to increase an existing tax credit for carbon sequestration as part of a $2 trillion infrastructure plan named the "American Jobs Plan," but he has yet to embrace an economy-wide price on carbon.

"A lot of economists believe this is the most efficient thing to do, but this administration is not there yet," Granholm said. "They want to use the American Jobs Plan using the carrots that they have to incentivize and move away from carbon polluting industries."

Despite the lack of an existing price on carbon, Biden is "particularly interested" in evaluating whether to deploy a US border adjustment mechanism that would reflect carbon emissions, White House climate envoy John Kerry said last week during an interview with Bloomberg TV. The EU is considering its own carbon adjustment on trade, which could offset the economic incentive to shift carbon-intensive businesses outside of the trading bloc to avoid carbon pricing.


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25/01/31

Trump tariffs on Canada, Mexico to include oil: Update

Trump tariffs on Canada, Mexico to include oil: Update

Updates with comments from Trump, plan for 10pc crude tariff. Washington, 31 January (Argus) — President Donald Trump said late Friday he will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico on 1 February, with crude imports likely to be taxed at a lower 10pc rate. Trump separately plans to impose tariffs on imports from China on 1 February. Asked if his Canada tariffs would include crude imports, Trump said, "I'm probably going to reduce the tariff a little bit on that," he told reporters at the White House. "We think we're going to bring it down to 10pc." Trump, who previously tied tariffs on imports from Canada, Mexico and China to their alleged inability to stem the flow of drugs and migrants into the US, today insisted that the tariffs he plans to impose on Saturday in fact have a strictly economic rationale and are non-negotiable. The tariffs expected on Saturday "are not a negotiating tool", Trump said. "No, it's pure economic … we have big deficits with all three of them." Trump, in a wide ranging gaggle with reporters, separately mentioned that he would impose tariffs on imported chips and oil and natural gas. "That'll happen fairly soon, I think around 18 February," he said. It was not clear from his remarks if he meant that all oil and gas imports into the US would be taxed, or if he referred to supply only from Canada and Mexico. Trump said he would also raise tariffs on imported steel, aluminium and eventually copper as well. Trump brushed away criticism of potential negative impacts from his tariffs. "You will see the power of the tariff," Trump said. "The tariff is good, and nobody can compete with us, because we have by far the biggest piggy bank." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Mexican president Claudia Sheinbaum also said her country has prepared responses to US tariffs . Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. Gas, petchems, steel and ags threatened The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales , since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Immigration trumps sanctions in US-Vz talks: Update


25/01/31
25/01/31

Immigration trumps sanctions in US-Vz talks: Update

Adds comment from Trump. Caracas, 31 January (Argus) — US president Donald Trump's administration is prioritizing discussions on immigration and detainees over other issues in relations with Venezuela, suggesting no imminent move to tighten sanctions on oil exports. US special envoy Ric Grenell landed in Caracas, Venezuela, today to discuss repatriations and the liberation of US citizens detained in the South American country, the White House confirmed. The envoy went with two orders from Trump: to ensure that "Venezuelan nationals that have broken our nation's laws will land in Venezuela," and that "all US detainees in Venezuela are returned," a White House official said. National assembly president Jorge Rodriguez and foreign minister Yvan Gil were shown on Venezuelan television meeting Grenell on the tarmac. The US said it plans to deport 400 members of the Venezuelan gang Tren de Aragua that it has arrested. US citizens in custody in Venezuela include three arrested in September for allegedly plotting to overthrow Venezuelan president Nicolas Maduro. Another six US citizens are also being held in Venezuela, according to human rights groups. The negotiations with Venezuela do not mean that the US recognizes Maduro as a legitimate president, the official said. The US and many other countries hold that Venezuela's July elections were fradulant and that exiled opposition leader Edmundo Gonzalez won the vote. The US in April in the run-up to the election revoked a temporary lifting of some crude sanctions on Venezuela after it became clear that Venezuela would not let primary opposition candidate Maria Corina Machado run. Gonzalez ran in her place. Trump has discussed possibly tightening crude sanctions on Venezuela, which were originally put in place during his first term. Former president Joe Biden's administration began allowing Chevron to export crude again from its joint ventures in Venezuela to the US only, which averages about 200,000 b/d. The US president critized that shift today, but did not mention increasing sanctions. "We're not going to let that stupid stuff happen," Trump said. "So we'll see what happens. We're not happy with Venezuela." The meetings come as secretary of state Marco Rubio begins his first foreign visit in his new capacity with a stop in Panama. Trump has demanded concessions for US vessels passing through the critical waterway and publicly mulled taking over the canal from Panama. Grenell's discussions do not indicate a change in US priorities about Venezuela just as Rubio goes to the region, US special envoy on Latin America Mauricio Claver-Carone said. The US urged Maduro to heed Grenell's demands "and what he puts on the table, because ultimately there will be consequences otherwise," Claver-Carone said. By Carla Bass and Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada’s tariff response will be ‘forceful’: Trudeau


25/01/31
25/01/31

Canada’s tariff response will be ‘forceful’: Trudeau

Calgary, 31 January (Argus) — Canadian prime minister Justin Trudeau is planning an immediate retaliation should US president Donald Trump impose a 25pc tariff on imports tomorrow, 1 February. "If the president does choose to implement any tariffs against Canada, we are ready with a response," said Trudeau at a meeting of the Council on Canada-US Relations in Toronto. "A purposeful, forceful, but reasonable, immediate response." "It's not what we want, but if he moves forward, we will also act," he said. Trump has accused Canada and Mexico of facilitating trafficking of fentanyl and illegal migration and has threatened tariffs to persuade the two countries to tighten borders they share with the US. "Our border is safe and secure," said Trudeau. "We're committed to keeping it that way by addressing current challenges and strengthening our capacity." Mexican president Claudia Sheinbaum said this week Mexico is also ready to respond to US tariffs. "We will always defend respect for our sovereignty and a dialogue as equals, but without subordination," she said. Canada in mid-December said it would spend C$1.3bn ($900bn) on border security measures over six years, which Trudeau reiterated Friday while highlighting recent progress. The 8,891-kilometre (5,525-miles) US-Canada border is the longest in the world. Trump has also railed against the US' trade deficit with Canada, which is on track to settle at about C$65bn in 2024 , according to TD Bank. The bank notes the deficit is largely a result of America's thirst for energy and should not be confused with a "subsidy". Canada has increased deliveries of crude to the US beyond 4mn b/d and supplied 8.36 Bcf/d (86.35bn m³/yr) of natural gas in January-October, according to the US Energy Information Administration (EIA). US refiners that process Canadian crude would not easily find alternative supplies, according to the American Fuel and Petrochemical Manufacturers (AFPM). "We won't relent until tariffs are removed, and of course, everything is on the table," Trudeau said of Canada's potential retaliation, a message that has drawn concern from the premier of oil-rich Alberta who wants the unfettered flow of energy. All told, the two highly-integrated countries exchange about C$3.6bn of goods and services each day, only slightly less than daily US-Mexico trade, TD Bank said last week. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canadian crude will be priced for tariffs: Phillips 66


25/01/31
25/01/31

Canadian crude will be priced for tariffs: Phillips 66

Houston, 31 January (Argus) — Western Canadian crude will continue to flow to US refiners, but at a greater discount if President Donald Trump enacts tariffs on imports from that country, Phillips 66 said today. In the event of tariffs, the Western Canadian Select (WCS) discount to US light sweet crude WTI will eventually widen to incentivize crude to move into the US, Phillips 66 executive vice president of commercial Brian Mandell said during an earnings call. WCS' discount to WTI was around $15.25/bl on Friday afternoon. In the Rocky Mountain and midcontinent regions, where refiners have fewer alternative supplies, the "crack margins will also have to do some work," he said. Mandell said that the first effect of Canadian tariffs would be the filling of the 590,000 b/d Trans Mountain Expansion (TMX) pipeline, which sends crude to Canada's west coast, followed by a replenishing of storage in western Canada. TMX has run well below its full capacity since startup in May 2024 but it is not clear how much spare capacity is left. About 374,300 b/d of crude from the combined Trans Mountain was exported via tanker in January, according to data from Vortexa. About 80pc of Canada's 5mn b/d of crude production flows downstream to US refiners, with US imports of Canadian crude reaching a record high of 4.42mn b/d in the week ending 3 January, according to the Energy Information Administration (EIA). The single largest conduit is Enbridge's 3mn b/d Mainline system, which reaches into Chicago to serve midcontinent refiners and hands off crude to other lines that go to the US Gulf coast for refining or export. The White House said today that president Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February. The White House pushed back on reports that the tariffs would be delayed and declined to say whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. Mexico sends far less crude to the US. Mexican crude imports to the US averaged 450,000 b/d in November 2024, according to the most recent EIA monthly data. Mexican imports of crude into the US would likely be displaced if the tariffs are enacted, Mandell said. Mexican crude will move to Europe and maybe Asia and other crudes will come in, he said. Heavy crude prices would rise a bit on the inefficiency of logistics but those differentials should dissipate as OPEC puts more oil onto the market as the year goes on, Mandell said. US refiner Valero said yesterday that the tariffs could cause a 10pc cut in refinery runs depending on how long the tariffs go and how fast they are implemented. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican GDP growth in 4Q lowest since 2021


25/01/31
25/01/31

Mexican GDP growth in 4Q lowest since 2021

Mexico City, 31 January (Argus) — Mexico's economy slowed in the fourth quarter to its lowest pace since early 2021, as the agriculture and industrial sectors dragged on growth. Mexico's gross domestic product (GDP) growth slowed to annualized rate of 0.6pc, statistics agency Inegi reported. This is down from an annual 1.6pc in the third quarter and 2.1pc growth in the second quarter, which was the strongest quarter last year. The result marks the slowest growth in 15 quarters for Mexico, coming in below estimates. This was largely due to annualized 4.6pc decline in the agriculture sector, swinging from 4.1pc growth in the third quarter as drought conditions return. Inegi reported the industrial component of GDP also contracted, down 1.7pc in the fourth quarter, compared with a 0.5pc expansion in the previous quarter, on slowing construction and persistent declines in the oil component. Services, meanwhile, expanded an annualized 2.1pc in the fourth quarter, compared with a 2.2pc expansion in the previous quarter. Inegi reported full-year GDP growth at 1.5pc in 2024, slowing from 3.3pc in 2023 and the lowest level since the pandemic-stricken downturn in 2020. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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