US does not seek war with Iran: Pentagon
The US will defend freedom of navigation in the Middle East but has no interest in starting a war with Iran, the Pentagon said after Washington blamed Tehran for attacks yesterday on oil tankers in the Gulf of Oman.
"We have no interest in engaging in a new conflict in the Middle East. We will defend our interests, but a war with Iran is not in our strategic interest, nor in the best interest of the international community," the Pentagon said.
US secretary of state Mike Pompeo yesterday accused Iran of being responsible for the incidents that damaged two tankers in the Gulf of Oman and the attacks last month on oil shipping and infrastructure in the region.
The US Central Command, which oversees US military forces in the Middle East, late yesterday released photographs purportedly showing an unexploded limpet mine on the hull of chemical tanker Kokuka Courageous and video footage of what it described as an Iranian patrol ship removing that mine later in the day.
"You know they did it because you saw the boat, I guess one of the mines did not explode and it has probably got Iran written all over it," President Donald Trump said in a televised interview today.
Beyond releasing the video and photographic evidence, the US based its claim on undisclosed intelligence reports and its belief that no other state actor or proxy group was capable of carrying out such attacks.
Tehran disputed the US accusation. "Pinning the blame on Iran for the suspicious and regrettable incident involving the oil tankers seems to be the easiest and most simplistic thing Mr. Pompeo and other US statesmen could do," Iran's foreign ministry said. "Iran is responsible for ensuring the security of the Strait of Hormuz, and we showed this by rushing to save the sailors of the incident-hit vessels in the shortest time possible."
The tankers damaged by the attacks had recently moved through the strait, which is a major shipping and trading lane in the Middle East. About 20mn b/d of crude and oil products transits the passage.
US naval vessels also rendered assistance to Kokuka Courageous and Long Range 2 tanker Front Altair, according to the Central Command. US and Iranian naval vessels appear to have operated in close vicinity of each other following the response to the incidents that took place early morning on 13 June.
Pompeo instructed the acting US ambassador at the UN, Jonathan Cohen, to brief the UN Security Council on the attacks. "The US will continue its diplomatic and economic efforts to bring Iran to the negotiating table, and Iran should meet us with diplomacy not with terror, attacks on ships, infrastructure and diplomatic facilities," Cohen said.
US officials are making the allegations against Iran to sabotage a mediation effort by Japanese prime minister Shinzo Abe, Iran's foreign minister Mohammad Javad Zarif said. Abe was in Tehran during the incident on a mission to help defuse tensions between the US and Iran.
"We are still investigating the situation and will not comment," Abe's office said of yesterday's incidents. One of the tankers, the Kokuka Courageous, is owned by Japanese company Kokuka Sangyo.
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US crude output rebounds by 4.6pc in February: EIA
US crude output rebounds by 4.6pc in February: EIA
Calgary, 30 April (Argus) — US crude output rebounded by 4.6pc in February after freezing temperatures in the prior month took production offline in the three largest producing states. Output averaged 13.15mn b/d in February, up by 578,000 b/d from January, the Energy Information Administration (EIA) said today in its Petroleum Supply Monthly report. February's production was up by 622,000 b/d from February 2023 but remained short of the 13.3mn b/d record high set in November 2023. North Dakota was hit particularly hard by winter storms in January, which temporarily knocked as much as 700,000 b/d of production offline. The country's third-largest producing state pumped out 1.29mn b/d during February, up by 173,000 b/d from January and 159,000 b/d higher than in February 2023. About 86pc of North Dakota's production was 40.1°API or higher, according to the EIA. Texas, home to more than 40pc of the country's crude production, pumped out 5.55mn b/d in February. This was up by 172,000 b/d from January and 242,000 b/d higher than February 2023. New Mexico, which shares the prolific Permian basin with Texas, also boosted its output in February with 1.98mn b/d of production. This was up by 120,000 b/d from January and up by 183,000 b/d from February 2023. Similar to North Dakota, about 91pc of crude produced in New Mexico was 40.1°API or higher, while in Texas about 55pc of output fell into that category. About 44pc of all crude produced in Texas fell into the relatively heavier 30.1-40°API range. US output in the Gulf of Mexico came in at 1.8mn b/d in February, up from the 1.78mn b/d produced in the prior month but down by 28,000 b/d from February 2023. Almost all the crude produced in the Gulf of Mexico was 40°API or lower. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Milei's bid to open Argentina's economy passes
Milei's bid to open Argentina's economy passes
Montevideo, 30 April (Argus) — Argentina's congress today approved the government's sweeping economic legislation that could open the door to more private-sector investment in energy and commodities. The bill passed on a 142-106 vote, with five abstentions, after a marathon 20-hour debate. Changes include privatizing some state-owned companies, controversial labor reforms and measures to promote LNG development. The omnibus legislation, which includes 279 articles, is an important victory for President Javier Milei's administration and will change the way many sectors, including energy, operate in the country. Lawmakers aligned with Milei's Liberty Advances party swiftly moved to the second stage of the process, which requires approval of individual articles. The omnibus bill was initially approved in February, but the administration withdrew it after congress failed to approve several key individual articles. That original version included 664 articles. Several of the more controversial articles were brought up immediately after the blanket approval and easily passed. They included an article allowing for privatization of state-run enterprises — national power company Enarsa is on the list — and another delegating to the administration the power to eliminate state agencies without having to consult with congress. Also approved was the article on labor reform. The country's oilseed industry and port workers' unions called a strike the previous day to pressure congress to modify the labor reform. That did not happen. It passed in a separate 136-113 vote. The strike started to fizzle with approval of the legislation. Approval of the package includes several articles the administration says will open the door to major investments in the energy sector. Chapter II specifically covers natural gas, and introduces new regulations for LNG. The chapter includes five articles that allow for 30-year contracts for LNG export projects and guarantees that gas supply cannot be interrupted for any reason. The energy secretariat has six months to design the implementing rules for LNG. The government wants to speed up monetization of the Vaca Muerta unconventional play, which has an estimated 308 trillion cf of natural gas reserves. It is pushing for Malaysia's Petronas to fully commit to a large-scale LNG facility that would start with a $10bn investment. Chapter IX of the legislation creates a new framework, known as the Rigi, for investments above $200mn. It offers tax, fiscal and customs benefits. Companies have two years from implementation of the legislation to take advantage of the Rigi. The chapter on this framework is one of the most complex in the bill, including 56 articles. It includes specific references to energy projects, from power generation to unconventional oil and gas development. The administration claims the legislation will help tame inflation and stabilize the economy. Inflation was 276pc annualized through February, but is declining, and Milei announced that monthly inflation would be in single digits when the March numbers are announced. The country recorded a 0.2pc quarterly fiscal surplus in the first quarter of this year, something not achieved since 2008. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
G7 countries put timeframe on 'unabated' coal phase-out
G7 countries put timeframe on 'unabated' coal phase-out
London, 30 April (Argus) — G7 countries today committed to phasing out "unabated coal power generation" by 2035 — putting a timeframe on a coal phase-out for the first time. The communique, from a meeting of G7 climate, energy and environment ministers in Turin, northern Italy, represents "an historic agreement" on coal, Canadian environment minister Steven Guilbeault said. Although most G7 nations have set a deadline for phasing out coal-fired power, the agreement marks a step forward for Japan in particular, which had previously not made the commitment, and is a "milestone moment", senior policy advisor at think-tank E3G Katrine Petersen said. The G7 countries are Italy — this year's host — Canada, France, Germany, Japan, the UK and the US. The EU is a non-enumerated member. But the pledge contains a caveat in its reference to "unabated" coal-fired power — suggesting that abatement technologies such as carbon capture and storage could justify its use, while some of the wording around a deadline is less clear. The communique sets a timeframe of "the first half of [the] 2030s or in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with countries' net-zero pathways". OECD countries should end coal use by 2030 and the rest of the world by 2040, in order to align with the global warming limit of 1.5°C above pre-industrial levels set out in the Paris Agreement, according to research institute Climate Analytics. The countries welcomed the outcomes of the UN Cop 28 climate summit , pledging to "accelerate the phase out of unabated fossil fuels so as to achieve net zero in energy systems by 2050". It backed the Cop 28 goal to triple renewable energy capacity by 2030 and added support for a global target for energy storage in the power sector of 1.5TW by 2030. The group committed to submit climate plans — known as nationally determined contributions (NDCs) — with "the highest possible ambition" from late this year or in early 2025. And it also called on the IEA to "provide recommendations" next year on how to implement a transition away from fossil fuels. The G7 also reiterated its commitment to a "fully or predominantly decarbonised power sector by 2035" — first made in May 2022 and highlighted roles for carbon management, carbon markets, hydrogen and biofuels. Simon Stiell, head of UN climate body the UNFCCC, urged the G7 and G20 countries to lead on climate action, in a recent speech . The group noted in today's outcome that "further actions from all countries, especially major economies, are required". The communique broadly reaffirmed existing positions on climate finance, although any concrete steps are not likely to be taken ahead of Cop 29 in November. The group underlined its pledge to end "inefficient fossil fuel subsidies" by 2025 or earlier, but added a new promise to "promote a common definition" of the term, which is likely to increase countries' accountability. The group will report on its progress towards ending those subsidies next year, it added. Fostering energy security The communique placed a strong focus on the need for "diverse, resilient, and responsible energy technology supply chains, including manufacturing and critical minerals". It noted the important of "guarding against possible weaponisation of economic dependencies on critical minerals and critical raw materials" — many of which are mined and processed outside the G7 group. Energy security held sway on the group's take on natural gas. It reiterated its stance that gas investments "can be appropriate… if implemented in a manner consistent with our climate objectives" and noted that increased LNG deliveries could play a key role. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US commends China's Middle East mediation
US commends China's Middle East mediation
Washington, 29 April (Argus) — The US hopes China will continue using its diplomatic influence in the Middle East after the two countries cooperated earlier this month to de-escalate tensions between Israel and Iran, US secretary of state Tony Blinken said today. "We did come very close to an escalation, a spread of the conflict," after Israel and Iran exchanged aerial attacks on each other's territory, Blinken said at a special meeting of the World Economic Forum in the Saudi Arabia capital Riyadh. The US saw that China used its influence in Iran to prevent an outbreak of a broader regional conflict "and that's a positive thing," Blinken said. Beijing stepped in last year to mediate an agreement between Tehran and Riyadh to normalize relations, playing a mediation role that the US could not carry out on its own. The US supported Chinese efforts to normalize Saudi-Iranian relations "because, if we can find through diplomacy ways to ease tensions and to avoid any conflict, that's a good thing," Blinken said. China has "a clear, obvious interest in stability in the Middle East," he said. "They obviously depend on the region for energy resources. There are many vital trading partners here." China provides a critical economic lifeline to Iran by absorbing nearly all of Iranian crude exports, "which is another challenge," Blinken said. But the US sees China as acting in its self-interest to help bolster stability in the Middle East. Finding some common ground on Iran was a rare positive spot during Blinken's visit to China last week. Blinken pushed his Chinese counterparts to put an end to private Chinese companies' supplies for Russia's military industry, while President Xi Jinping accused the US of undermining China's economic growth. "China and the US should be partners rather than rivals," Xi told Blinken during their meeting in Beijing on 26 April. The two countries should find common ground "rather than engage in vicious competition," Xi said. The US contends that Chinese companies supply 70pc of the machine tools and 90pc of the microelectronics for the Russian military industry, allowing Moscow to significantly increase weapons output in the past year. It remains to be seen whether the US threat of sanctions against Chinese companies accused of helping Russia's military industry will work, Blinken said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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