EPA administrator Scott Pruitt resigns: Update

  • : Biofuels, Coal, Emissions, Oil products
  • 18/07/05

Adds details throughout.

Environmental Protection Agency administrator Scott Pruitt resigned today following months of scandals and growing frustration from a key base of support for President Donald Trump.

Pruitt's dutiful slashing of regulations that had frustrated businesses and conservative voters offered months of inoculation from reports detailing his use of the position for personal gain. But concerns about Pruitt's use of the office — from security spending to personal use of agency resources — grew along with frustration from farmers and other industries over the agency's direction.

"Within the agency Scott has done an outstanding job, and I will always be thankful to him for this," Trump said in a tweet.

Deputy administrator Andrew Wheeler would assume acting administrator duties on 9 July, Trump said.

Pruitt's departure could curtail resentment threatening to spoil support of the Trump administration among key political allies in agriculture. Even as they praised the deregulatory fervor, corn farmers important to Trump's political success grew frustrated with the agency's willingness to cut mandates creating a market for their crop.

"This is kind of hard for me to say, because he has done so much good, from my point of view, as EPA director," the powerful and increasingly frustrated US senator Chuck Grassley (R-Iowa) told reporters in early June. "But he screws it all up by being anti-ethanol."

Trump tapped Pruitt in December 2016 to reverse an "anti-energy agenda." The former attorney general of Oklahoma, oil industry ally and EPA skeptic, embraced a charge to halt federal greenhouse gas reductions.

Pruitt spearheaded the administration's efforts to roll back much of the Obama climate policy agenda, from repealing CO² regulations for power plants to pushing for the US to exit the Paris climate accord. He also sought to delay, weaken or rescind methane regulations for the oil and gas sector, federal air quality standards and fuel economy and CO² rules for new cars and trucks.

The agency sometimes struggled to execute those proposals. Courts struck down actions on methane emissions, among other setbacks. The agency's next administrator would likely continue that work.

But Pruitt also became a caricature of Washington largesse, providing opponents a metastasizing symbol of the abuse of money and power that Trump railed against on the campaign trail. Congress questioned Pruitt's spending on security and travel less than nine months after confirming him to the office. The scandals quickly devolved from the agency budget to accusations that he was using the office to secure personal access to expensive meals, fast food franchises, travel lotion and even a used mattress.

Pruitt faced more than a dozen federal investigations into spending and use of staff at the time of his resignation.

"I am afraid my good friend Scott Pruitt has done some things that really surprise me," US senator Jim Inhofe (R-Oklahoma) said in a 13 June nationally broadcast interview.

Trump maintained public support as headlines piled up.

"I am not happy about certain things, but he has done a fantastic job running the EPA, which is very overriding," Trump said in mid-June.

Farm-country frustration around the Renewable Fuel Standard (RFS) helped erode Pruitt's standing amid the scandals. The EPA-administered program requires refiners, importers and other companies to each year ensure minimum volumes of renewables enter the US fuel supply.

Trump has sought a deal between agricultural and renewable fuel interests that insist the program continue as written, and refiners adamant that the law be repealed. He pledged support for the law on the campaign trail and again in his first months in office.

But Trump also elevated outspoken critics to powerful formal and informal positions in his administration. Pruitt sued the agency over the RFS as Oklahoma's attorney general in 2012. Billionaire investor Carl Icahn railed against the program to the highest levels of government as an informal adviser to the president early in the Trump administration. Uncertainty over the administration's approach to the program has helped to depress prices for program compliance credits, called renewable identification numbers (RINs), to their lowest levels since 2013.

RINs associated with ethanol blending were heard traded as high as 28¢/RIN following the news, after settling at 22.25¢/RIN.

The EPA under Pruitt used a courtroom loss to waive more than two dozen refiners from obligations under the program for 2017, waived obligations for the largest east coast refiner as it faced bankruptcy earlier this year and continuously explored ways to reduce compliance costs under the program. The agency last week proposed a 3.1pc increase in blending requirements for 2019. But critics across farm country said they did not trust Pruitt to follow through with the proposal.

"Fewer things are more important for government officials than maintaining public trust," Grassley said today. "Administrator Pruitt, through his own actions, lost that trust. I hope acting administrator Wheeler views this as an opportunity to restore this administration's standing with farmers and the biofuels industry."

Acting administrator Wheeler worked at the EPA in the 1990s, served as general counsel to Inhofe and as staff director and chief counsel for the US senate committee on environment and public works and the senate subcommittee for clean air, wetlands and nuclear safety. He was also a lobbyist with coal and biodiesel producer clients.


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24/05/02

Shell's 1Q profit supported by LNG and refining

Shell's 1Q profit supported by LNG and refining

London, 2 May (Argus) — Shell delivered a better-than-expected profit for the first quarter of 2024, helped by a strong performance from its LNG and oil product businesses. The company reported profit of $7.4bn for January-March, up sharply from an impairment-hit $474mn in the previous three months but down from $8.7bn in the first quarter of 2023. Adjusted for inventory valuation effects and one-off items, Shell's profit came in at $7.7bn, 6pc ahead of the preceding three months and above analysts' estimates of $6.3bn-$6.5bn, although it was 20pc lower than the first quarter of 2023 when gas prices were higher. Shell's oil and gas production increased by 3pc on the quarter in January-March and was broadly flat compared with a year earlier at 2.91mn b/d of oil equivalent (boe/d). For the current quarter, Shell expects production in a range of 2.55mn-2.81mn boe/d, reflecting the effect of scheduled maintenance across its portfolio. The company's Integrated Gas segment delivered a profit of $2.76bn in the first quarter, up from $1.73bn in the previous three months and $2.41bn a year earlier. The segment benefited from increased LNG volumes — 7.58mn t compared to 7.06mn t in the previous quarter and 7.19mn t a year earlier — as well as favourable deferred tax movements and lower operating expenses. For the current quarter, Shell expects to produce 6.8mn-7.4mn t of LNG. In the downstream, the company's Chemicals and Products segment swung to a profit of $1.16bn during the quarter from an impairment-driven loss of $1.83bn in the previous three months, supported by a strong contribution from oil trading operations and higher refining margins driven by greater utilisation of its refineries and global supply disruptions. Shell's refinery throughput increased to 1.43mn b/d in the first quarter from 1.32mn b/d in fourth quarter of last year and 1.41mn b/d in January-March 2023. Shell has maintained its quarterly dividend at $0.344/share. It also said it has completed the $3.5bn programme of share repurchases that it announced at its previous set of results and plans to buy back another $3.5bn of its shares before the company's next quarterly results announcement. The company said it expects its capital spending for the year to be within a $22bn-$25bn range. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan's trading firms see metals prices cutting profits


24/05/02
24/05/02

Japan's trading firms see metals prices cutting profits

Tokyo, 2 May (Argus) — Major Japanese trading houses are expecting lower profits from their metals businesses during the April 2024-March 2025 fiscal year, mostly because of lower prices of commoditiessuch as iron ore and coking coal. Japanese trading house Mitsui forecast profits for its metal and natural resource business falling by 14pc on the year to ¥290bn ($1.87bn) during 2024-25, primarily because of lower iron ore prices. Mitsui plans to cut iron ore output by 0.3pc on the year to 60.9mn t at its mining projects where the company owns production rights or a production stake during 2024-25. This includes the joint venture project Robe River in Australia with Australian iron ore producer Rio Tinto. Japanese trading house Sojitz also expects profits from its metal and natural resource business to decline to ¥35bn, down by 20pc on the year, mostly because of a bearish coking coal market. The company said its overall coal business can cut production costs during 2024-25, partly because it plans larger-scale output at the Gregory Crinum coking coal mine in Australia, without disclosing further details. But Sojitz said it cannot generate higher profits because of lower coking coal prices. The trading house expects the average coking coal price to fall to $230/t during 2024-25, according to the company's chief financial officer Makoto Shibuya, down by $57/t from a year earlier. The company reiterated that the price is not necessarily their selling price. Sumitomo expects profits from its natural resource business would remain flat at ¥72bn on the year, mostly as its nickel production in Madagascar recovers from the output cuts in 2023 , with an aim to produce 19,000t of nickel during 2024-25, up by 9.8pc on the year. A rebound in nickel production could offset possible losses from coal and coking coal prices falling to $266/t and $133/t respectively in the ordinary market, down by $21 and $9, according to the trading house. Sumitomo plans to increase coking coal production by 9.1pc to 1.2mn t but reduce coal output by 4.8pc to 4mn t during 2024-25. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US southbound barge demand falls off earlier than usual


24/05/01
24/05/01

US southbound barge demand falls off earlier than usual

Houston, 1 May (Argus) — Southbound barge rates in the US have fallen on unseasonably low demand because of increased competition in the international grain market. Rates for voyages down river have deteriorated to "unsustainable" levels, said American Commercial Barge Line. Southbound rates declined in April to an average tariff of 284pc across all rivers this April, according to the US Department of Agriculture (USDA), which is below breakeven levels for many barge carriers. Rates typically do not fall below a 300pc tariff until May or June. Southbound freight values for May are expected to hold steady or move lower, said sources this week. Southbound activity has increased recently because of the low rates, but not enough to push prices up. The US has already sold 84pc of its forecast corn exports and 89pc of forecast soybean exports with only five months left until the end of the corn and soybean marketing year, according to the USDA. US corn and soybean prices have come down since the beginning of the year in order to stay competitive with other origins. The USDA lowered its forecast for US soybean exports by 545,000t in its April report as soybeans from Brazil and Argentina were more competitively priced. US farmers are holding onto more of their harvest from last year because of low crop prices, curbing exports. Prompt CBOT corn futures averaged $435/bushel in April, down 34pc from April 2023. Weak southbound demand could last until fall when the US enters harvest season and exports ramp up southbound barge demand. Major agriculture-producing countries such as Argentina and Brazil are expected to export their grain harvest before the US. Brazil has finished planting corn on time . unlike last year. The US may face less competition from Brazil in the fall as a result. Carriers are tying up barges earlier than usual to avoid losses on southbound barge voyages. Carriers that have already parked their barges will take their time re-entering the market unless tariffs become profitable again. The carriers who remain on the river will gain more southbound market share and possibly more northbound spot interest. By Meghan Yoyotte and Eduardo Gonzalez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Norwegian Cruise swings to 1Q profit


24/05/01
24/05/01

Norwegian Cruise swings to 1Q profit

New York, 1 May (Argus) — US-based cruise ship operator Norwegian Cruise Line's (NCL) swung to a profit in the first quarter on record bookings. The company posted a $69.5mn profit in the first quarter, compared with a $127.7mn loss during the same period of 2023. Revenue rose by 20pc to $2.19bn in the quarter from a year earlier as the cruise operator reported record quarterly bookings. Cruise operating expenses were up by 8pc at $1.39bn in the quarter from a year earlier. Norwegian rerouted some of its voyages that were previously expected to sail through the Red Sea. But demand from other regions offset the effect of the redeployed voyages. The company spent $197.7mn on marine fuel in the first quarter, 1pc up from $194.9mn in the first quarter of 2023. The company burned 269,000t of marine fuel and did not disclose its fuel consumption for the first quarter of 2023. It expects to burn about 245,000t in the second quarter and 995,000t for full 2024, split evenly between residual fuel oil and marine gasoil. Currently, it has hedged about 35pc of its fuel oil consumption at $395/t and 75pc of its marine gasoil consumption at $746/t for the entire 2024. Starting this year, Norwegian had been applying to the EU innovation fund with the goal of accelerating the transition of six of its vessels from being methanol ready to being fully methanol capable. Biomethanol was pegged at $2,223/t very low-sulphur fuel oil equivalent (VLSFOe) or 3.7 times the price of VLSFO average in April in the Amsterdam-Rotterdam-Antwerp bunkering hub, Argus assessments showed. Methanol was assessed at $699/t VLSFOe or 1.2 times the price of VLSFO. The company also has half of its fleet equipped with shoreside technology allowing it to use port electricity and minimize emissions during port stays. Norwegian has ordered eight new vessels for delivery from 2025-2036. Separately, its subsidiaries Oceania Cruises and Regent Seven Seas will take delivery of three new vessels from 2025-2029 and two new vessels from 2026-2029, respectively. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Derailment may interrupt SoCal renewable diesel


24/05/01
24/05/01

Derailment may interrupt SoCal renewable diesel

Houston, 1 May (Argus) — A Union Pacific train derailment in Colton, California, this week could curtail rail-delivered renewable diesel (RD) availability near Los Angeles. Up to three train cars derailed on the morning of 30 April in the Union Pacific West Colton rail yard, about 65 miles east of Los Angeles, Union Pacific said Wednesday. The cars remained upright during the incident, and cleanup was ongoing as of Wednesday morning. Renewable diesel market participants said the terminal — a hub for the product — was sold out pending the restart of deliveries, although there was no immediate price reaction in the R99 spot market. Spot differentials for rail delivered R99 in Los Angeles have ranged from 20-30¢/USG above Nymex ULSD this week. Renewable diesel deliveries by rail into PADD 5 were down in the first two months of 2024, according to Energy Information Administration data. Rail volumes totaled around 1.19mn bl in February, the lowest monthly total since May 2023 and a 10pc monthly decline after deliveries from the Midwest more than halved from January. By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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