Venezuela faces sharper output drop in August

  • Market: Crude oil, Electricity
  • 08/17/18

Venezuela faces an even steeper decline in oil production in August as a result of an extensive blackout around Lake Maracaibo. The country's official July output averaged 1.469mn b/d, a loss of 62,000 b/d from 1.531mn b/d a month earlier, according to energy ministry data provided to Opec. The official figure is 57,000 b/d lower than the 1.526mn b/d state-owned PdV reported for July in an internal upstream report. The average of secondary sources reported by Opec was 1.278mn b/d in July, down from 1.325mn b/d in June. Venezuela's waning oil output has accelerated over the past year because of falling oil revenues, steep cuts in maintenance and investment, frequent blackouts and labour shortages. "There are many reasons to believe that production is a lot lower than [PdV is reporting]," a company official says.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

'Huge demand' ahead of carbon exchange: Australia’s CER


02/23/24
News
02/23/24

'Huge demand' ahead of carbon exchange: Australia’s CER

Sydney, 23 February (Argus) — Demand for Australian carbon credits and renewable energy certificates is expected to continue increasing rapidly over the coming years, including voluntary markets, officials at the country's Clean Energy Regulator (CER) said today as they unveiled details about the planned Australian Carbon Exchange. Cancellations of Australian Carbon Credit Units (ACCUs) are estimated to have reached around 1mn in 2023 in the voluntary market, a new high and up from approximately 855,000 in 2022, while those for large-scale generation certificates (LGCs) rose to an estimated 4.9mn last year from 3.4mn the previous year, CER's general manager Jane Wardlaw said during a webinar organised by the Australia-based industry group Carbon Market Institute. While most of the demand for both products comes from compliance obligations under Australia's Renewable Energy Target and Emission Reduction Fund, including the revamped Safeguard Mechanism , companies can also make cancellations against voluntary certification programmes such as the federal government-backed Climate Active or under organisational emissions or energy targets. The CER is expecting "huge demand" in the voluntary market stemming from Australia's planned stricter mandatory emissions reporting , especially for LGCs, executive general manager Mark Williamson said on 23 February. Demand for ACCUs in the compliance market has been already increasing on the back of new safeguard obligations starting from the July 2023-June 2024 financial year, Wardlaw said. The regulator has been working closely with the Australian Securities Exchange (ASX) and technology solutions provider Trovio Group on its planned Australian Carbon Exchange . Trovio as a first step is developing a new registry for the Australian National Registry of Emissions Units, which is expected to come on line in the second half of 2024, with the exchange itself set to be launched between the end of 2024 and early 2025. "We think it's time to move to an exchange-based market where participants can trade anonymously," CER chair David Parker said, noting the buying side of the market has become much more diversified in recent years. "That's not intended to lock out the over-the-counter [OTC] arrangements," Parker said, adding the regulator hopes OTC trades will be cleared on the exchange. Companies that operate existing trading platforms will be able to connect their systems to the new registry. But the CER will require them to "release some data transparency" such as volumes and prices, Wardlaw said. New options The registry and exchange will incorporate other existing certificates like LGCs and small-scale technology certificates, as well as new ones such as the proposed guarantees of origin for hydrogen and renewable electricity . It will also include the new Safeguard Mechanism credit units (SMCs), which will be issued by the government to facilities that reduce their emissions below their baselines. The CER plans to publish information about which facilities are issued SMCs. While the exchange works with the CER on the new spot exchange, ASX's senior manager of issuer services Karen Webb said it is developing its own separate carbon futures contracts, which it is planning to launch in July 2024. The physically settled contracts will consist of ACCUs, LGCs and New Zealand units, for delivery up to five years ahead. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Single entity scrapped from EMD reform: Epex Spot


02/22/24
News
02/22/24

Single entity scrapped from EMD reform: Epex Spot

Essen, 22 February (Argus) — The pan-European single legal entity (SLE) proposed by the European Commission will not be included in the final electricity market design (EMD) reform, Paris-based power exchange Epex Spot representatives told Argus . "From what we have seen, in the final version of the text, the reference to 'single entity' has been completely taken out from the relevant articles in the European electricity directive," Epex Spot said at the sidelines of the E-world conference in Essen. In the text seen by Epex Spot, the SLE has been replaced by "different governance options", although the exchange has no information on the concrete meaning of that concept. "That wording is the result of diplomatic negotiations and has on purpose remained broad," Epex Spot said. The exchange, together with other nominated electricity market operators, convinced the European Parliament to adopt amendments against the SLE in July, and wrote a joint letter with power exchange Nordpool in November , arguing that the new entity could increase operational risks and would not be able to support local requirements for market coupling. In addition, the exchange representatives told Argus that Epex Spot's pipeline of projects was already long. The vote on the European market design is expected to take place next month. By Tatiana Serova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Indonesia’s PIS issues spot Suezmax freight tender


02/22/24
News
02/22/24

Indonesia’s PIS issues spot Suezmax freight tender

Singapore, 22 February (Argus) — Indonesia's Pertamina International Shipping (PIS) has issued a spot Suezmax vessel freight tender to move 1mn bl of crude oil for late-March loading. PIS — a wholly-owned subsidiary of Indonesian state-owned refiner Pertamina — is seeking a vessel loading from Girassol, Angola to two discharge ports in Indonesia's Balongan and Balikpapan, with 21-22 March loading dates. The tender will close at 6pm Singapore time (10am GMT) on 22 February with validity until 7.15pm. The shipment can have a maximum unavoidable transportation loss of up to 0.07pc, according to the tender. Suezmax shipment rates from west Africa towards India have fallen from this year's high. Argus- assessed lumpsum rates for 130,000t shipments from the west Africa region to the east coast of India fell to $4.5mn on 21 February, from $5.7mn on 10 January. Suezmaxes especially are choosing to stay in the Mediterranean and northwest Europe after discharging in Europe instead of going to west Africa or the US Gulf, where high vessel supply and limited activity continue to weigh on rates. By Sean Zhuang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Double climate investment to meet EU 2030 goals: I4CE


02/21/24
News
02/21/24

Double climate investment to meet EU 2030 goals: I4CE

London, 21 February (Argus) — Meeting the EU's 2030 climate targets requires a doubling of real-economy investments across the energy, buildings and transport sectors, a study by think-tank the Institute for Climate Economics (I4CE) published today found. Combined public and private investment of €813bn/yr is needed over 2024-30 to deliver the climate measures for energy, buildings and transport designed to meet the EU's 2030 target to cut its net greenhouse gas (GHG) emissions by 55pc compared with 1990 levels, the I4CE study found. This will require €406bn/yr of additional investment, as investment stood at €407bn in 2022 according to I4CE calculations. The figure is a "strict minimum" given the exclusion of sectors such as industry because of data gaps, I4CE emphasised. Of 22 sectors deemed "critical" to the transition by the think-tank, 20 fell short of required investment levels in 2022. The largest deficit was in passenger battery electric vehicle (EV) investment, which needs to increase by €79bn/yr, followed by electricity grids at €42bn/yr. Closely behind were onshore wind, which needs a €41bn/yr increase in investment, and "medium" — as opposed to "deep" — residential building renovation at €40bn/yr. At the other end of the scale, marine energy requires only €0.6bn/yr of further investment and new non-residential buildings' energy performance €3bn/yr, while EV charging points, light commercial plug-in hybrid EVs, and new residential building' energy performance need €4bn/yr each. The two sectors already surpassing annual investment needs in 2022 were hydropower and battery storage, I4CE found. Overall, the seven transport categories studied required the largest total increase in investment at around €147bn, followed by €137bn across the eight building categories and €122bn for the seven energy sector areas examined. Further EU funding will likely be needed as part of efforts to close these investment gaps, the study found, both for areas "by nature dependent on a degree of EU-level funding" such as trans-European infrastructure, and more generally given that the bloc's climate funding is falling with the winding down of the temporary NextGenerationEU instrument, set up to help the region recover from the economic impact of the Covid-19 pandemic. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.