Immigration trumps sanctions in US-Vz talks: Update

: Crude oil
25/01/31

Adds comment from Trump.

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

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25/03/06

Canada can still play oil, gas card: Foreign minister

Calgary, 5 March (Argus) — Oil, gas and other natural resources remain options for Canada to use as leverage should US imposed tariffs escalate further, Canada's foreign affairs minister said Wednesday. Curtailing flows or increasing prices for natural resources that Canada sells to the US are "... cards that we could potentially play if this would escalate, and the US knows that," Canadian foreign affairs minister Mélanie Joly said Wednesday at the Toronto Region Board of Trade. Canada produces about 5mn b/d of crude, of which 80pc is exported to the US, including to the midcontinent where some refiners have little practical alternative supply. Canada also supplies significant quantities of electricity to New York, the New England states, Michigan, Minnesota and other states. The provincial leaders in Quebec and Ontario have discussed using those flows to the US as leverage in the trade conflict. The US also relies on Canada for about 90pc of its annual potash fertilizer needs , which, along with uranium can be used in negotiations, said Joly. "In order for us to be using any other new cards, we need to make sure that Canadians are on board and that premiers are on board," said Joly. Provincial leaders appear to be becoming more united "bit-by-bit", Joly said, but Alberta premier Danielle Smith said earlier in the day her oil-rich province remains against a tax on Canadian energy exports or curtailing flows to the US. Not only does Alberta rely heavily on energy for revenue but Smith is concerned that Ottawa could collect any tax imposed on the US and distribute it to other parts of Canada — rather than return it to Alberta. Smith "would love" to send more crude to the US, but the tariff action is delaying pipeline proposals , forcing her to look in every other direction within Canada. Alberta is Canada's largest crude producer with 4.19mn b/d of oil output in January, according to the provincial energy regulator. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs holding up Alberta-US pipeline ideas: Premier

25/03/05

Tariffs holding up Alberta-US pipeline ideas: Premier

Calgary, 5 March (Argus) — Oil-rich Alberta "would love" to increase energy exports to the US, but an ongoing trade war sparked by US president Donald Trump is forcing the Canadian province to pump the brakes on more cross-border pipeline projects and instead look in other directions. "Until our US friends come back to reality, we will focus on efforts and financial means to export one of the largest oil and gas deposits in the world elsewhere," Alberta premier Danielle Smith said on Wednesday. The province will turn to Canada's west, east and north coasts "to build multiple oil and gas pipelines" to target markets in Asia and Europe, she said. Trump imposed a 10pc tariff on energy and a 25pc tariff on non-energy imports from Canada starting on 4 March , which Smith says are "unjustified and a clear breach" of the US-Mexico-Canada (USMCA) free trade agreement. Smith is privy to Alberta-US pipeline proposals which she says could increase Canadian crude exports to the US, now at about 4mn b/d, by 50pc. "With the combination of proposals I've seen, we could potentially see an increase of 2mn b/d or more by 2030," Smith said. "We in Alberta would love to increase the amount of oil and gas we send to our southern neighbours." Smith said she is "readying" a proposal to present to the US administration but she said those conversations can't happen with tariffs in place. In the meantime, Trump's action has sparked a debate within Canada about diversifying trade, providing some new tailwinds for industry seeking more market access. Pipeline sentiment changing, obstacles remain "From our perspective, we're hearing all the right things and now we need to start to see all the right things," pipeline operator Pembina's chief executive Scott Burrows said on 28 February. "I just saw a new proposal for either a Northern Gateway 2.0, or a spur line coming off of the Trans Mountain pipeline," said Smith. Building pipelines in Canada is no easy feat with burdensome regulations that have seen proposals either cancelled by the federal government or abandoned by project developers. To consider advancing major projects like Northern Gateway , for example, Enbridge said in February it would need legislative change and the legal certainties the project could be finished. "It's time to start building pipe, developing resources and constructing ports on every coast without further delay," Smith said on Wednesday, but added it will require a "significant attitude adjustment" from fellow Canadian political leaders to make it happen. Smith made the comments at a press conference highlighting new security measures for its portion of the US-Canada border. Trump has justified the tariffs by suggesting both Canada and Mexico need to enhance border security, but other Canadian politicians increasingly doubt the two are related as efforts to beef up the border have seemingly gone unnoticed by the US. Trump's legal rationale for the tariffs, cutting the cross-border flow of fentanyl into the US, is "completely bogus," prime minister Justin Trudeau said on 4 March. "The one thing he has said repeatedly is that he wants to see a total collapse of the Canadian economy, because [Trump thinks] that will make it easier to annex us. " By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump delays Canada, Mexico tariffs for carmakers

25/03/05

Trump delays Canada, Mexico tariffs for carmakers

Washington, 5 March (Argus) — President Donald Trump's administration said today it would give a one-month reprieve for the top three US auto-makers from the stiff tariffs he imposed Tuesday on energy and other imports from Canada and Mexico. Trump told chief executives of GM, Ford and Chrysler that "we are going to give a one month exemption on any autos coming through" the US-Mexico-Canada (USMCA) free trade agreement, specifically for those car manufacturers, the White House said this afternoon. Nearly all trade between the three countries is covered by the USMCA, so a return to any terms of that agreement would mean lifting tariffs Trump imposed on Tuesday. The USMCA rules exempt cars manufactured in any of the three countries using parts made in or substantially transformed in any of the three countries, from US tariffs. The tightly-intertwined US and Canadian auto manufacturing industry could grind to a halt in as little as 10 days due to US tariffs, Ontario premier Doug Ford said on Tuesday. The 25pc tariff Trump imposed would be applied multiple times as 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. The temporary exemption applied to a segment of the North American auto manufacturing industry is the first instance of a hasty policy retreat the Trump administration began to signal late Tuesday, the very day Canada and Mexico tariffs went into effect, roiling financial markets. Trump and the White House have alternatively downplayed the negative economic effects of tariffs, or suggested that the additional costs from import taxes would fall on foreign producers, not US consumers. "Tariffs are about making America rich again," Trump said in an address to Congress on Tuesday. "There will be a little disturbance, but we are OK with that." Trump also said that his policy agenda "will allow our auto industry to absolutely boom". But the tariffs Trump imposed have caused consternation and complaints across vast segments of the US economy, including the oil and gas sector he promised to champion. "We cannot stress enough the importance of the energy interconnection between our three nations, especially Canadian oil and electricity, to the American economy," oil industry group American Energy Alliance president Tom Pyle said today. "Imposing tariffs on these essential energy sources would unnecessarily disrupt the complex and integrated supply chain that has developed over 50 years." The White House said that Trump "is open to hearing about additional exemptions". Confusing signals The Trump administration accompanied the decision to temporarily exempt the US auto-makers with a barrage of mixed signals, insults lobbed at Canadian prime minister Justin Trudeau and accusations of insufficient cooperation on interdiction of drugs, which is the pretext for tariffs. The one-month reprieve should be sufficient for auto manufacturers "to get on it, start investing, start moving shift production here to the US," the White House said. It also said that the one-month reprieve period would coincide with the 2 April target date for Trump's "reciprocal tariffs" on all foreign auto imports, and that there would be no additional reprieves. "I also told Governor Justin Trudeau of Canada that he largely caused the problems we have with them because of his Weak Border Policies," Trump said this afternoon via his social media platform, following a conversation with Canada's leader. Trudeau in his remarks on Tuesday called Trump's tariffs "a very dumb thing to do" and vowed to keep the retaliatory Canadian tariffs in place until Trump completely reverses his tariffs on Canadian imports. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK govt consults on ‘clean energy future’ for North Sea

25/03/05

UK govt consults on ‘clean energy future’ for North Sea

London, 5 March (Argus) — The UK government has launched a consultation on the North Sea's "clean energy future", seeking to balance "continued demand for oil and gas" with the natural decline of the North Sea basin, the country's energy security and climate science. The government has proposed an end to new onshore oil and gas licences in England — as onshore licensing is a devolved matter — and once again confirmed its manifesto pledge for no new oil or gas licences for North Sea exploration. It also confirmed a previous commitment to end the so-called windfall tax on oil and gas producers in 2030. Further oil and gas licences "would not meaningfully increase UK production levels, nor would they change the UK's status as a net importer of oil and gas", the government said. It flagged the North Sea basin's maturity, which means that an absence of new licences makes only "a marginal overall difference to future North Sea production". The "vast majority of future production is expected to come from producing fields or fields already being developed on existing licences", the government said. It noted that while offshore licensing rounds have resulted in up to 100 permits each time, under 10pc of recently issued licences "have progressed to active production". But its halt on new exploration licences would not preclude any licence extensions being granted, the government said. It aims to provide "certainty to industry about the lifespan of oil and gas projects by committing to maintain existing fields for their lifetime". The decision does not affect the issuing of new gas or carbon storage licences, it added. Focus on 1.5°C The consultation also doubles down on the government's previous commitments to "clean power" by 2030 — which would entail a small role for gas-fired power generation, of under 5pc — and its determination to be a leader in climate action. "The science is clear that the world needs to take urgent action and that current plans for global production of oil and gas are not compatible with limiting global warming to 1.5°C," the government said. The Paris climate agreement seeks to limit global warming to "well below" 2°C above pre-industrial levels and preferably to 1.5°C. The government has requested views on its plans to ensure a "prosperous and sustainable transition for oil and gas" and to make the UK a "clean energy superpower", focused on technologies such as offshore wind, hydrogen and carbon capture, use and storage (CCUS). This will boost the UK's economy and energy security, the government said. "Clean energy" is key for energy security, as a reliance on fossil fuels leaves the UK at "the mercy of global energy markets", it added. "CCUS will be a critical component of the UK's energy transition," the government said. It also noted the geological advantage the UK holds for CO2 storage. There is "significant potential for CO2 import", likely from Europe, it said. The government has also sought extensive feedback on the transition for the country's oil and gas workforce. An "offshore renewables workforce" could stand at between 70,000 and 138,000 in 2030, it said, while oil and gas jobs are set to decrease, alongside the North Sea's fossil fuel production. Today's consultation will close on 30 April. And the government will publish its final guidance on an updated environmental framework for oil and gas "in good time", it said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US services activity accelerates in February: ISM

25/03/05

US services activity accelerates in February: ISM

Houston, 5 March (Argus) — Economic activity in the US services sector expanded faster than expected in February, as the biggest part of the economy helped offset factory weakness in the face of mounting trade tensions and policy uncertainty. The services purchasing managers index (PMI) rose to 53.5 in February, up from 52.8 in January, according to the Institute for Supply Management (ISM). It was the eighth consecutive month of expansion, above the 50 breakeven mark, and was higher than the 52.6 anticipated by economists surveyed by Trading Economics. "Slightly slower growth in the business activity index was more than offset by growth" in new orders, employment and supplier deliveries, ISM said. "Anxiety continues, however, over the potential impact of tariffs. Some respondents indicated that federal spending cuts are having negative impacts on their business forecasts." The ISM survey was released two days after ISM's manufacturing survey showed the segment barely expanding , for only a second month of growth after 26 months of contraction. Intensifying global trade tensions and massive federal job and spending cuts unleashed by the new US administration are generating volatility in financial and commodity markets and heightening concerns of mounting inflation and faltering economic growth. The business activity index was at 54.4, down by 0.1 point from the prior month, but the index's 57th consecutive month of expansion above the 50 breakeven level. The new orders index rose to 52.2 from 51.3. The employment index rose to 53.9, a fifth month of expansion, from 52.3 in January. The prices index registered 62.6, up from 60.4 and a third consecutive month above 60. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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