US Senate approves Gensler as SEC chairman
The US Senate has confirmed Gary Gensler to become the next chairman of the US Securities and Exchange Commission (SEC), where he is expected to pursue more regulatory oversight and climate disclosure from publicly traded companies.
The Senate today voted 53-45 in favor of Gensler leading the SEC, a powerful agency that serves as the nation's Wall Street watchdog. The confirmation will give Democrats a 3-2 majority on the SEC, giving Gensler the power to revisit regulations finalized under former President Donald Trump that critics say allow banks and other large corporations to take on excessive levels of risk.
Gensler at his confirmation hearing said publicly trading companies should have to disclose climate risks, and potentially their mix of energy use, if it is material to investors. That could align with an initiative started by the SEC's acting chair, Allison Herren Lee, who ordered the agency to "enhance its focus" on climate disclosure and update decade-old guidance on the issue.
Democrats are already putting pressure on the SEC to revisit a watered-down disclosure rule for oil and mining companies that was initially required under the 2010 Dodd-Frank financial overhaul law. Gensler has not spoken specifically about whether he plans to take another look at that rule.
Gensler was executive at the investment bank Goldman Sachs before moving to public service and serving as chairman of the US Commodity Futures Trading Commission (CFTC) from 2009-14. President Joe Biden has yet to nominate anyone to fill a vacancy at the CFTC, which is now split between two Democrats and two Republicans.
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US regulator slams executive over Opec 'collusion'
US regulator slams executive over Opec 'collusion'
Washington, 2 May (Argus) — US antitrust regulators for the first time took action against a leading US oil executive over his alleged "collusion" with Opec, but the producers' alliance itself was not a target of investigation. The Federal Trade Commission (FTC) today issued a proposed consent order barring former Pioneer Natural Resources chief executive Scott Sheffield from joining the board of ExxonMobil following its $59.5bn takeover of Pioneer. FTC accused Sheffield of organizing "anti-competitive coordinated output reductions between and among US crude oil producers" and members of Opec and the broader Opec+ alliance. "Opec and Opec+ are cartels that exist to control global crude oil production and reserves," FTC said. The specific charges against Sheffield relate to the outspoken executive's frequent public appearances where he opined on US companies' desired production levels, his meetings and frequent communications with Opec officials since 2017 and his advocacy of drastic production cuts by US companies as global demand fell sharply at the beginning of the Covid-19 pandemic in 2020. Opec under then secretary general Mohammed Barkindo began active outreach to independent US producers, starting in March 2017 with private dinner discussions held on the sidelines of IHS CERAWeek conferences in Houston, Texas. Barkindo hosted similar discussions at CERAWeek in 2018 and 2019, in addition to hosting some of the US companies' chief executives at Opec seminars in Vienna. FTC references Sheffield's public comments following those meetings and alleges that Sheffield kept in frequent touch with Opec officials via messaging service WhatsApp and other means to discuss production levels and prices. Barkindo at the time said that production cuts and prices were never on the agenda of his meetings with the US shale producers and that his organization wanted to better understand the US companies' technological innovation and to compare market outlooks and forecast models. Barkindo in the same time frame held similar discussions with major US hedge funds and money managers. US oil executives polled by Argus in 2017-20 also said that their discussions with Barkindo and other Opec officials revolved around market fundamentals. The US oil industry broadly felt that it was benefiting from a policy of production cuts Opec was implementing as it supported prices at a time when the US domestic production and crude exports grew uninterrupted. Former president Donald Trump took credit for engineering a breakthrough agreement in April 2020 to remove more than 10mn b/d of global crude supply by brokering an agreement between Saudi Arabia, Russia and other Opec+ producers. Even without prodding from Trump, US producers cut back production cuts in 2020 as transportation fuel demand and prices fell sharply in the first months of the pandemic. FTC singled out Sheffield for allegedly coordinating his company's production levels with Opec. Sheffield "held repeated, private conversations with high-ranking Opec representatives assuring them that Pioneer and its Permian basin rivals were working hard to keep oil output artificially low," according to the FTC order. Sheffield, who helped found Pioneer and was its longtime chairman, served as chief executive from 1997 to 2016 and from 2019 through 2023. He remains on the company's board, serving as special adviser to the chief executive since 1 January. The son of an oil executive, Sheffield attended high school in Tehran, Iran. Pioneer shrugged off what it termed a "fundamental misunderstanding" of global oil markets and said that FTC misread "the nature and intent" of Sheffield's actions. Opec declined to comment on FTC's action against Sheffield. FTC is so far the only US regulator to set sights on Opec, even if indirectly. President Joe Biden in 2021 separately tasked FTC with leading an investigation into whether there is price manipulation in gasoline markets. Biden, like many of his predecessors at a time of high gasoline prices, in 2022 accused Opec of uncompetitive behavior in oil markets and expressed support for US legislation allowing antitrust action against the organization by the US Department of Justice. But that acrimony has largely dissipated after global oil and US gasoline prices fell in 2023 from unusually high levels in the previous year. US Congress has not taken significant steps to advance the anti-Opec legislation since 2022. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canadian rail workers vote to launch strike: Correction
Canadian rail workers vote to launch strike: Correction
Corrects movement of grain loadings from a year earlier in final paragraph. Washington, 2 May (Argus) — Workers at the two major Canadian railroads could go on strike as soon as 22 May now that members of the Teamsters Canada Rail Conference (TCRC) have authorized a strike, potentially causing widespread disruption to shipments of commodities such as crude, coal and grain. A strike could disrupt rail traffic not only in Canada but also in the US and Mexico because trains would not be able to leave, nor could shipments enter into Canada. This labor action could be far more impactful than recent strikes because it would affect Canadian National (CN) and Canadian Pacific Kansas City (CPKC) at the same time. Union members at Canadian railroads have gone on strike individually in the past, which has left one of the two carriers to continue operating and handle some of their competitor's freight. But TCRC members completed a vote yesterday about whether to initiate a strike action at each carrier. The union represents about 9,300 workers employed at the two railroads. Roughly 98pc of union members that participated voted in favor of a strike beginning as early as 22 May, the union said. The union said talks are at an impasse. "After six months of negotiations with both companies, we are no closer to reaching a settlement than when we first began, TCRC president Paul Boucher said. Boucher warned that "a simultaneous work stoppage at both CN and CPKC would disrupt supply chains on a scale Canada has likely never experienced." He added that the union does not want to provoke a rail crisis and wants to avoid a work stoppage. The union has argued that the railroads' proposals would harm safety practices. It has also sought an improved work-life balance. But CN and CPKC said the union continues to reject their proposals. CPKC "is committed to negotiating in good faith and responding to our employees' desire for higher pay and improved work-life balance, while respecting the best interests of all our railroaders, their families, our customers, and the North American economy." CN said it wants a contract that addresses the work life balance and productivity, benefiting the company and employees. But even when CN "proposed a solution that would not touch duty-rest rules, the union has rejected it," the railroad said. Canadian commodity volume has fallen this year with only rail shipments of chemicals, petroleum and petroleum products, and non-metallic minerals rising, Association of American Railroads (AAR) data show. Volume data includes cars loaded in the US by Canadian carriers. Coal traffic dropped by 11pc during the 17 weeks ended on 27 April compared with a year earlier, AAR data show. Loadings of motor vehicles and parts have fallen by 5.2pc. CN and CPKC grain loadings fell by 4.3pc from a year earlier, while shipment of farm products and food fell by 9.3pc. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
FTC clears Exxon-Pioneer deal but bars Sheffield
FTC clears Exxon-Pioneer deal but bars Sheffield
New York, 2 May (Argus) — US antitrust regulators signaled they will clear ExxonMobil's proposed $59.5bn takeover of Pioneer Natural Resources but banned the shale giant's former chief executive officer from gaining a seat on the board. A proposed consent order from the Federal Trade Commission seeks to stop Scott Sheffield, Pioneer's former chief executive, from taking part in "collusive activity" that would potentially raise crude prices and cause US consumers to pay more at the pump. The order paves the way for ExxonMobil to close its blockbuster deal for Pioneer, which will make it the leading producer in the prolific Permian shale basin of west Texas and southeastern New Mexico. It is also the top US oil producer's biggest transaction since Exxon's 1999 merger with Mobil. ExxonMobil's Permian output will more than double to 1.3mn b/d of oil equivalent (boe/d) when the acquisition closes, before increasing to about 2mn boe/d in 2027. The FTC, which has taken a tougher line on mergers under the administration of President Joe Biden, has paid close attention to oil deals announced during the latest phase of shale consolidation. Only this week, Diamondback Energy said it had received a second request for information from the regulator over its $26bn proposed takeover of Endeavor Energy Resources. And Chevron's planned $53bn acquisition of US independent Hess has also been held up. The FTC alleged in a complaint that Sheffield exchanged hundreds of text messages with Opec officials discussing crude pricing and output, and that he sought to align production across the Permian with the cartel. His past conduct "makes it crystal clear that he should be nowhere near Exxon's boardroom," said Kyle Mach, deputy director of the FTC's Bureau of Competition. ExxonMobil said it learnt about the allegations against Sheffield from the FTC. "They are entirely inconsistent with how we do business," the company said. While Pioneer said it disagreed with the FTC's complaint, which reflects a "fundamental misunderstanding" of US and global oil markets and "misreads the nature and intent" of Sheffield's actions, the company said it would not be taking any steps to stop the merger from closing. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
CEE gas operators begin binding capacity offer process
CEE gas operators begin binding capacity offer process
London, 2 May (Argus) — Gas transmission system operators (TSOs) across central and eastern Europe have launched the start of binding incremental capacity processes aimed at facilitating larger gas flows from south to north. Romanian, Bulgarian, Hungarian, Moldovan and Ukrainian operators have published joint documents outlining the necessary conditions for participating in the upcoming annual auctions on 1 July. Bulgarian and Romanian TSOs Bulgartransgaz and Transgaz will offer an additional roughly 123 GWh/d of capacity from Bulgaria to Romania at Negru Voda 1-Kardam on top of existing available capacity of 126-142 GWh/d depending on the year ( see BG-RO table ). In the event of a successful auction and subsequent economic test, the TSOs hope to reach a final investment decision (FID) in the third quarter of this year and commission the upgrades in the third quarter of 2026. Commercial operations could begin in the fourth quarter, aligning with the start of the 2026-27 gas year. This timeline has been moved forward by one year from the original proposals earlier this year . Transgaz, along with Hungary's FGSZ, will offer up to 73 GWh/d of additional capacity from Romania to Hungary at Csanadpalota on top of existing available capacity of 5-71 GWh/d depending on the year ( see RO-HU table ), but maintained its three-tiered approach elaborated in an earlier market consultation . Depending on the level of capacity to which firms commit at the auction, capacity could increase by 9.5 GWh/d, 47.3 GWh/d or 72.5 GWh/d. The smallest project could start commercial operations in the first quarter of 2028, the middle level in the third quarter of 2028, and the highest level in the third quarter of 2029. These timelines are pushed back by roughly one year from the originally-proposed dates in the February consultation. And Transgaz, along with Ukraine's GTSOU, will offer an additional 77 GWh/d of capacity from Romania to Ukraine at Isaccea 1-Orlovka 1 on top of existing available capacity of 97-109 GWh/d depending on the year ( see RO-UA table ). The TSOs aim to reach FID in the third quarter of this year and commission the project in the fourth quarter of 2028. Commercial operations could begin in October 2028. GTSOU and its Moldovan counterpart Vestmoldtransgaz will offer 173 GWh/d towards Moldova from Ukraine at Kaushany starting from the 2027-28 gas year, while simultaneously offering 159 GWh/d of capacity from Moldova towards Ukraine at Grebenyky. By Brendan A'Hearn Available and incremental capacity at Negru Voda/Kardam GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 141 - 141 2025-26 141 - 141 2026-27 142 123 265 2027-28 142 123 265 2028-29 142 123 265 2029-30-2042 126 123 249 — Bulgartransgaz, Transgaz; numbers rounded Available and incremental capacity at Csanadpalota GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 43 - 43 2025-26 46 - 46 2026-27 71 - 71 2027-28 13 - 142 2028-29 13 - 13 2029-30 5 73 78 2030-31 34 73 107 2031-32 34 73 107 2032-33-2039 63 73 136 — FGSZ, Transgaz; numbers rounded Available and incremental capacity at Isaccea/Orlovka GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 109 - 109 2025-26 109 - 109 2026-27 109 - 109 2027-28 109 - 186 2028-29 109 77 186 2029-30-2039 97 77 174 — GTSOU, Transgaz; numbers rounded Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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