Latest market news

Republicans pitch $568bn plan for infrastructure

  • Market: Coal, Crude oil, Electricity, Emissions, Metals, Natural gas
  • 22/04/21

Republican leaders in the US Senate are countering President Joe Biden's plan for a major infrastructure bill with a smaller $568bn package that would mostly focus on roads and bridges, without raising taxes on corporations.

Republicans say their plan would be fully paid for, by imposing new user fees and repurposing funds from earlier Covid-19 relief bills. But the plan as drafted is unlikely to draw significant interest from Democratic leaders, who see Biden's competing $2 trillion infrastructure plan as their best chance to address climate change, revive manufacturing, support electric vehicles and achieve a more equitable tax code.

The plan from Senate Republicans would direct $299bn toward roads and bridges, $61bn on public transit, $44bn on airports, $20bn on rail and $17bn for ports and inland waterways. The proposal offers more than twice as much funding for roads and bridges as the White House plan, and also higher levels of funding for airports and ports.

But the Republican plan lacks hundreds of billions of dollars that Biden is requesting for electric vehicles, manufacturing, subsidized housing, new schools, electric transmission, renewable energy, research and development, and workforce retraining. Republicans say those programs should not be part of a bill meant to focus on infrastructure.

Republicans have not released a breakdown on how they will pay for their infrastructure plan, but they have already ruled out raising fuel taxes set at 18.4¢/USG for gasoline and 24.4¢/USG for diesel that have not changed since 1993. US senator Shelley Moore Capito (R-West Virginia) said some of the new user fees would target electric vehicles, hybrids and alternative fuel vehicles.

"That does not mean raising the gas tax, that means looking at user fees and users of our infrastructure that to this point have not paid, or paid very little," Capito told reporters today.

But the amount of revenue that could be raised from vehicles now exempt from fuel taxes is likely to be relatively small in the near-term. By 2030, electric, plug-in hybrid, hydrogen and propane passenger vehicles are projected to account for fewer than 2pc of vehicles on the road, up from less than 1pc today, according to the US Energy Information Administration.

Democratic lawmakers this week started holding hearings on their infrastructure plan, which they want to be paid for mainly by raising corporate tax rates to 28pc from 21pc. US senator Joe Manchin (D-West Virginia) has been adamantly opposed to increasing user fees that would fall on lower-income families and has raised concerns with other potential revenue sources like carbon tax.

"Putting a higher tax on something, that is not going to fix it," Manchin said earlier this week.

Even if Democrats largely reject the Republican infrastructure plan, it could kick-start talks on areas of agreement for infrastructure. Biden is continuing to push lawmakers to move forward on negotiations and drafting legislation, touting his package during a global summit focused on addressing climate change.

"I have proposed a huge investment in American infrastructure and American innovation to tap the economic opportunity that climate change presents our workers and our communities, especially those too often that have been left out and left behind," Biden said.


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
20/09/24

CFTC finalizes carbon offset guidance

CFTC finalizes carbon offset guidance

Houston, 20 September (Argus) — The US Commodity Futures Trading Commission (CFTC) finalized guidance Friday advising futures exchanges to examine the integrity of voluntary carbon credits tied to derivatives contracts, including whether those credits represent tangible emissions cuts. CFTC commissioners finalized the guidance in a 4-1 vote, another step in a recent push to standardize and promote best practices for the voluntary carbon market and minimize fraud. While the guidance does not serve as binding rules that futures exchanges are obligated to follow, the latest guidance represents the CFTC's "views regarding factors that may be relevant" as it assesses compliance with federal law. Carbon offsets are typically sold over the counter, though some exchanges allow for the trading of carbon offset futures. The CFTC guidance directs futures exchanges to ensure that voluntary carbon offset credits tied to contracts on their platforms adhere to best practices, such as transparency over how greenhouse gas (GHG) emissions are calculated, accounting for risks over the cancellation or recalling of credits, and ensuring third-party verification and validation. Futures exchanges are also instructed to note whether contracts for carbon offsets provide "additionality" — that is, whether the credits represent further emissions reductions that would not have occurred regardless of the offsets. Any changes to the offset registry or to the projects generating those offset credits should be reflected in the associated contract's terms and conditions, the guidance says. CFTC first began planning its guidance for voluntary carbon credits in July 2023, with the proposed guidance released later that December . Some futures exchanges had expressed discontent with the proposal in February, saying that it placed too much of a burden on them to verify the integrity of carbon offset credits. The final guidance was initially planned to have been released in July. CFTC commissioner Summer Mersinger, a Republican, wrote the lone dissent, arguing that the agency is issuing rules for commodities "that have very little open interest" and that the guidance is advancing an "ideology" rather than "simply offering guidance." Public Citizen, a progressive nonprofit, gave the guidance mixed reviews, saying it would help prevent fraud but that the underlying market for voluntary carbon offsets "should not be greenlighted for trade in the first place." CFTC chair Rostin Behnam affirmed his support for the guidance, calling it a "critical step" in the growth of voluntary carbon markets. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

US Democrats defend Venezuela sanctions policy


20/09/24
News
20/09/24

US Democrats defend Venezuela sanctions policy

Washington, 20 September (Argus) — President Joe Biden's administration is justified in holding fire on new sanctions against Venezuela, a decision that will allow Chevron to maintain its foothold in the country, Democratic lawmakers said today. The Biden administration has indicated it does not plan to respond to the Venezuelan government's crackdown on the political opposition by imposing tougher sanctions against Caracas' oil sector. The decision helps prevent a sudden economic crisis in Venezuela that would result in increased immigration, House Foreign Affairs Committee member Joaquin Castro (D-Texas) said today. House Foreign Affairs Committee's western hemisphere panel chair Maria Salazar (R-Florida) today accused Chevron and other foreign oil companies operating in Venezuela of underwriting the Maduro government's campaign of repression. "American and European oil companies led by Chevron, Repsol, Eni and Maurel & Prom have increased their oil pumping, and their profits are directly fueling the tyrannical machinery of oppression," Salazar said. "I am very much pro energy sector, making a lot of money, but there are lines you do not cross when profiting from other people's miseries." Salazar showed charts purporting to show that Chevron has made $5bn in revenues since the Biden administration allowed it to resume Venezuela operations in December 2022. "I would like to use your Chevron charts in my Natural Resources Committee — I am putting that on the record," representative Sydney Kamlager-Dove (D-California) told Salazar. The Democrats on the House Natural Resources Committee earlier this week held a discussion on "Holding Big Oil Accountable for Extortion, Collusion, and Pollution." Salazar contended that the Biden administration had a political reason to protect Venezuela's oil sector. "We know very well that we are in an election cycle and that the White House needs cheap gas at the pump." US crude imports from Venezuela averaged 190,000 b/d in January-June, less than 3pc of total imports, according to Energy Information Administration data. Chevron was not immediately available to comment. Chevron, Repsol and Eni have exemptions from US sanctions allowing them to load Venezuelan crude, but those exports are typically made under crude-for-debt arrangements, rather than for cash. Much of the Venezuelan oil sector is already subject to US sanctions, forcing PdV to rely on shadow fleet tankers and intermediaries to channel exports to buyers in China's Shandong region. Maduro proclaimed himself the winner of the 28 July election and has forced his election rival Edmundo Gonzalez to flee the country after issuing an arrest warrant against him earlier this month. The Venezuelan opposition has produced electoral records to show that Gonzalez likely won the 28 July presidential election, a claim backed by Washington. But the Biden administration has not recognized Gonzalez as president-elect. US officials appear to believe they still have time to figure out the best combination of diplomacy and sanctions to enable a power transition in Venezuela before Maduro's current term expires in January. "There's a lot that can happen between an election and the inauguration, and that's certainly the way we're looking at the situation now," deputy assistant secretary of state Kevin Sullivan told the House Foreign Affairs Committee panel today. Not recognizing Gonzalez as president-elect prevents Maduro from casting his rival as an American proxy, Castro said. "I would argue that we tried that with [Juan] Guaido, and it all fell apart." The US administration under former president Donald Trump in January 2019 recognized Venezuelan opposition leader Juan Guaido as the country's legitimate leader and imposed severe sanctions to force Maduro from power. Guaido fled to the US in 2022. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Citgo auction result delayed by last-minute motions


20/09/24
News
20/09/24

Citgo auction result delayed by last-minute motions

Houston, 20 September (Argus) — The US court-appointed special master who has been tasked with overseeing the auction of Venezuelan state-owned PdV's US refining subsidiary, Citgo, Robert Pincus, plans to object to a last-minute motion by the Venezuelan government to delay the sale process by four months. Caracas and PdV filed a motion on 17 September looking to pause the sale of Citgo, which is being auctioned off to settle debts owed by PdV. Pincus is also dealing with last-minute legal challenges outside of the Delaware courts overseeing the sale by "alter-ego" claimants looking to "circumvent" the sales process and "jump the line" for enforcing claims against PdV, he said. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Libya blockade pushes European buyers to other crudes


20/09/24
News
20/09/24

Libya blockade pushes European buyers to other crudes

London, 20 September (Argus) — Libya is still exporting crude nearly a month after its eastern-based administration imposed a blockade on oil fields and terminals, but a significant reduction in loadings has prompted key European customers to turn to alternative grades. Libya exported around 389,000 b/d of crude in the 1-19 September period, according to Argus tracking data, a sharp drop from 932,000 b/d during the same period in August when Libya's pre-blockade crude output was close to 1mn b/d. Assuming Libya is keeping some crude for domestic refining and power generation, current production may now be closer to 500,000 b/d — up from previous Argus estimates of around 300,000 b/d . The September exports are largely occurring under state-owned NOC's crude-for-products programme. This potentially bypasses the central bank, which has been at the centre of the political impasse that sparked the blockade . Nearly half of Libyan loadings so far this month, or 189,000 b/d, have headed to Italy, according to Argus tracking. But Italy's Libyan intake averaged 329,000 b/d over January-August, so the country has sought alternatives to replace the shortfall this month. Two cargoes of Algeria's light sweet Saharan Blend amounting to 67,000 b/d arrived in Italy in the 1-19 September period, after no cargoes in August and just one in July. Exports of Caspian light sour CPC Blend to Italy have jumped to 561,000 b/d so far this month, up from 410,000 b/d over 1-19 August and 520,000 b/d over 1-19 July, according to port reports. Availability of CPC Blend was constrained in August by maintenance at Kazakhstan's 600,000 b/d Tengiz field. Around 92,000 b/d of Libyan crude headed for Spain in the first eight months of this year, but none has loaded for the country so far in September. Exports of CPC Blend to Spain rose to 96,000 b/d over 1-19 September, up on the 37,000 b/d shipped during the same periods in each of August and July. By Melissa Gurusinghe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Climate finance from MDBs at record $125bn in 2023


20/09/24
News
20/09/24

Climate finance from MDBs at record $125bn in 2023

London, 20 September (Argus) — Ten multilateral development banks (MDBs) provided a record $125bn in climate finance in 2023, up from just under $100bn in 2022, according to a report led by the European Investment Bank (EIB). The report combines data from the EIB, the African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, the Islamic Development Bank, the New Development Bank and the World Bank Group. The MDBs provided $74.7bn in climate finance for low- and middle-income economies in 2023, up by 23pc on the year. Half of this was from the World Bank. Of the total, a third was for climate adaptation — adjusting to the effects of climate change where possible — with the remainder for mitigation, or cutting emissions. The amount of private finance mobilised for this group was $28.5bn in 2023. MDBs allocated $50.3bn to high-income economies last year, up by nearly a third from $38.8bn in 2022. The EIB provided most of the total, at $42.1bn. The vast majority — 94pc — went to mitigation, with the remainder for adaptation. Private finance mobilised for high-income countries was significantly higher, at $72.7bn, reflecting the challenges faced by developing economies to pull in finance from the private sector. Climate finance will take centre stage at the UN Cop 29 summit in Baku, Azerbaijan, in November. Countries must decide on the next stage of a climate finance goal , after developed countries agreed to deliver $100bn/yr in climate finance to developing nations over 2020-25. MDBs are often called on by governments and campaign groups to do more to tackle climate change. The same 10 MDBs said earlier this year they will implement "new innovative climate finance approaches", including guarantees, sustainability-linked bonds, disaster clauses and mechanisms to access emergency finance. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more