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US banks withdraw from global climate alliance

  • : Coal, Crude oil, Emissions, Natural gas, Oil products
  • 25/01/09

The six largest US banks have withdrawn from an industry-led group that works to align financing with a goal of reaching net-zero greenhouse gas emissions by 2050.

With president-elect Donald Trump poised to return to the White House, JPMorgan Chase this week joined Bank of America, Citibank, Wells Fargo, Goldman Sachs and Morgan Stanley in pulling out of the Net Zero Banking Alliance (NZBA).

All of the departures have occurred since climate skeptic Trump won re-election in November.

JPMorgan did not give a reason for leaving the group it had joined in 2021 but said it was focused on "pragmatic solutions to help further low-carbon technologies while advancing energy security".

The NZBA declined to comment on the departures.

The bank-led NZBA launched in 2021, with a goal to align with industry's lending and investments with the goals of the Paris climate accord. Trump has promised to again pull the US out of the Paris agreement.

The 144 banks that were members of the group as of last October were committed to align their portfolios with pathways to reach net-zero by 2050 or sooner. But critics said the industry group, which was convened by the UN, was effectively coordinating a boycott of investment with the oil and gas industry.

Texas attorney general Ken Paxton in 2023 began reviewing JPMorgan and other US banks to see if their membership in the NZBA ran afoul of a state law that barred state entities from entering into contracts with banks that boycott the oil and gas sector. Paxton said the departure of banks from the group was a "major step in the right direction." Paxton's office said it had closed reviews of Wells Fargo, Bank of America, JP Morgan and Morgan Stanley.

Trump has called climate change a hoax and recently said he wanted to impose a "policy where no windmills are being built". In response to the deadly wildfires across Los Angeles, Trump today blamed the crisis on California leaders and falsely claimed the US Federal Energy Management Agency has "no money — all wasted on the Green New Scam".

By Chris Knight


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25/01/31

Trump tariffs most likely to bite US east coast market

Trump tariffs most likely to bite US east coast market

Houston, 30 January (Argus) — The prospect of the US imposing 25pc tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. President Donald Trump repeated plans to impose the tariffs this weekend , although he said crude may be exempted from the plan. But a crude exemption would not matter in the case of Irving Oil's 320,000 b/d Saint John, New Brunswick, refinery, which is a regular source of gasoline and diesel to the US' upper Atlantic coast markets. The US imported roughly 595,000 b/d of oil products from Canada in October, according to the latest Energy Information Administration data, most of it bound for the Atlantic coast. New York Harbor spot market gasoline prices are currently around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other East coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. In the US midcontinent, as much as 4.25mn b/d of US midcontinent refining capacity relies on heavy sour Canadian crudes for up to 70pc of their supplies. In theory, US midcontinent refiners could run lighter, US-produced grades. But there are relatively few pipelines serving the midcontinent with such grades and they would be much less profitable to refine compared to a pre-tariff WCS barrel. Chicago gasoline spot prices were just under $2/USG today, so a 25pc tariffs would also add 50¢/USG to prices. Chicago Buckeye Complex ultra low sulphur diesel (ULSD) prices were at $2.18/USG today while West Shore/Badger ULSD prices below that at $2.15/USG. Imports of Mexican refined products should be less of an issue as Mexico sent only 180,000 b/d of products to the US in October, according to the latest data. Counter tariffs on crude and oil products by Mexico or Canada would also be an issue for US refiners and blenders. US refiner Valero said today that the tariffs could cause a 10pc cut in refinery runs depending on how long the tariffs go and how fast they are implemented. By Dave Ruisard and Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs may throw Canada-US crude flows into turmoil


25/01/30
25/01/30

Tariffs may throw Canada-US crude flows into turmoil

Calgary, 30 January (Argus) — Impending US tariffs on Canadian and Mexican imports could mean significant changes for millions of barrels of daily cross-border crude flows between the countries. President Donald Trump on Thursday repeated his threat to impose 25pc tariffs on all trade with Canada and Mexico effective 1 February. Trump said the US "... may or may not" exclude oil" from the tariffs, depending on crude price levels. That decision could come later today. Canadian officials have also weighed targeted retaliatory tariffs on the US and even withholding crude outright. A long history of crude and refined products flows between the three countries under well-established trade agreements has tightly bound together operations on all sides. This means adaptations on short notice could be difficult, leading to higher road fuel prices for some US drivers and businesses. February volumes have already been purchased, but not yet moved across the border, so importers could still be on the hook for the added tax if tariffs are imposed on 1 February. Since Trump's initial pronouncement weeks ago, market participants on both sides of the border have been trying to determine potential impacts on movements and price. The Canadian trade cycle for March starts 3 February, with mixed opinions leading to volatility in the financial market for heavy Western Canadian Select (WCS) in Hardisty, Alberta. Thursday trading put March WCS at a $14.25-13.75/bl discount to the CMA Nymex WTI, after averaging a $12.25/bl discount to the benchmark during the February trade cycle. About 80pc of Canada's 5mn b/d of crude production flows downstream to US refiners, with US imports of Canadian crude reaching a record high of 4.42mn b/d in the week ending 3 January, according to Energy Information Administration (EIA) data. The single largest conduit is Enbridge's 3mn b/d Mainline system, which reaches into Chicago to serve midcontinent refiners and hands off crude to other lines that go to the US Gulf coast for refining or export. South Bow's 622,000 b/d Keystone pipeline also serves US markets via a more westerly route. Two-way dependence Alberta oil sands producers are highly dependent on those US customers, but the dependence is two-way, as 4.25mn b/d of US midcontinent refining capacity relies on heavy sour Canadian crudes for up to 70pc of their supplies. In theory, US midcontinent refiners could run lighter, US-produced grades. But there are relatively few pipelines serving the midcontinent with such grades and those grades would be much less profitable than using a pre-tariff WCS barrel. Canadian heavy crudes already have become less price advantaged relative to lighter grades in the wake of the startup of 590,000 b/d Trans Mountain Expansion (TMX) pipeline in May 2024 sending crude to Canada's west coast. The Argus WCS Cushing discount to the CMA Nymex averaged about $4.90/bl for February delivery, down from about $8/bl during the February 2024 trade month. Some market participants have already seen an uptick in demand for Canadian crude amid the uncertain impact of US import tariffs. US Gulf coast flows Canadian crude is also suited for many refineries on the US Gulf coast, but these refiners are less reliant on Canadian imports because of the region's access to alternative Latin American and Middle Eastern waterborne heavy sour supplies. Currently, Canadian crude makes up just over a quarter of crude imports to the US Gulf coast, with domestic US crude production encompassing a large majority of the refinery feedstock in the region. Canadian crude values at the Texas Gulf coast have also risen over the last year. The Argus WCS Houston discount to the CMA Nymex is roughly $4/bl for February delivery this year, tightening from over $7/bl a year earlier. Higher values have likely led some refineries to shift to lighter, sweeter crudes already as the price advantage for heavies decreased. But recent refinery operational issues and the pending closure of LyondellBassell's 268,000 b/d Houston refinery is weighing on Houston-area prices lately. West coast also has options On the US west coast, TMX's startup increased imports of Canadian grades in the region. Since May, west coast refiners have imported about 170,000 b/d of crude from Vancouver's Westridge Marine terminal, up from just under 40,000 b/d a year earlier according to data analytics firm Vortexa. But tariffs would make TMX cargoes less affordable from Vancouver and decrease its competitiveness relative to heavy sour alternatives. This could allow demand for Latin American medium and heavy sour crudes such as Napo and Oriente to recover after being displaced by cheaper and more convenient TMX supplies. Argus' fob Vancouver Cold Lake assessment is averaging a roughly $7.60/bl discount to Ice Brent during the January calendar month so far, narrower than the $8.70-$8.80/bl discounts to the international benchmark for November and December. Notwithstanding potential Canadian retaliatory tariffs, market participants also lack clarity on how Canadian imports of US diluent will be handled under potential US import tariffs once blended with Albertan bitumen and re-exported to US refiners. Although a majority of the diluent used for blending in Alberta is domestically sourced, considerable condensate demand is satisfied via Pembina's 110,000 b/d Cochin and Enbridge's 180,000 b/d Southern Lights pipelines, both of which transport condensate from Illinois to the Edmonton region. By Kyle Tsang and Amanda Smith Major Canada-to-US crude flows Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to impose 25pc tariffs on Canada, Mexico


25/01/30
25/01/30

Trump to impose 25pc tariffs on Canada, Mexico

Washington, 30 January (Argus) — President Donald Trump said today he will proceed with plans to impose tariffs on imports from Canada and Mexico on 1 February and explicitly referenced their potential application to crude imports. "I'll be putting the tariff of 25pc on Canada, and separately, 25pc on Mexico," Trump told reporters at the White House. "We will really have to do that, because we have very big deficits with those countries. Those tariffs may or may not rise with time." Pressed to explain if his tariffs may exempt crude imports, Trump said he was not inclined to exclude them but has yet to make a decision. "We may or may not" exclude oil, Trump said. "It depends on what the price is, if the oil is properly priced, if they treat us properly." Trump added: "We're going to make that determination, probably tonight, on oil." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico to the US. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from tariffs. US refiner Valero said today that a 25pc tariff on Canadian imports would force it to find alternative sources of crude, potentially resulting in a 10pc cut to throughputs. Valero's refining footprint in the US Gulf coast allows it to source feedstocks from around the world, but there is a point where a limit on heavy feedstocks like those from Canada could affect production of refined products, said chief operating officer Gary Simmons. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Trump frequently makes the case that foreign suppliers are solely responsible for paying tariffs. In reality, US importers pay the tariffs, and such costs are typically passed on to consumers. In the case of Canadian and Mexican crude, the US refiners that buy from those countries would pay a tax on the value of crude imports. Whether the price of Canadian crude falls by a sufficient amount to offset the 25pc tariff would depend on the market power of individual US refiners and Canadian producers, as well as actions by the Alberta government, according to a recent report by the Congressional Research Service. US refineries with access to alternative suppliers could source crude from non-Canadian producers, potentially keeping their additional costs below 25pc. Conversely, import reductions could pressure prices for Western Canadian Select (WCS) crude. In turn, Alberta could reimpose a production curtailment policy in a bid to narrow WCS discounts, the report said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Study calls for e-fuels bunker subsidies, GHG tax


25/01/30
25/01/30

Study calls for e-fuels bunker subsidies, GHG tax

New York, 30 January (Argus) — E-fuel subsidies and a greenhouse gas (GHG) emissions tax is needed for e-fuels to compete as a bunkering fuel before 2044, said a study by maritime consultancy University Maritime Advisory Services (Umas) and the UCL Energy Institute. The study found that adding a multiplier of the GHG intensity credit given to e-fuels could help to make e-fuel use financially competitive, but it would have to be set at high levels at the start. Using a multiplier of two, where one ship running on zero emissions e-fuel could generate credits to offset three other similar ships operating on conventional fossil fuels, was not able to make e-fuels more competitive before 2041. The multiplier would have to be set initially at 15 in 2030, falling to 10 by 2035, to enable the competitiveness of e-fuels, concludes the study. Additionally, levying a GHG tax or fee of $150-$300/t of CO2-equivalent would also make e-fuels more competitive. A tax of $30-$120/t CO2e is close to the aggregate level of subsidies, and would not create a sustained promotion of e-fuels. Under the current marine fuel standards, a combination of fossil fuels, including LNG, biofuels and carbon capture and storage systems would be most competitive up until 2036. After, blue ammonia dual fuel ships would be the lowest-cost solution until 2044. Ships that were more competitive from 2027-2035 would have at least 25pc higher operating cost from 2040 onwards. Thus, if ship owners order newbuild vessels to maximize short-term competitiveness, the sector is at a "major risk of technology lock-in" and will not be as cost-effective for reaching net zero by 2050. The study models a 2027-build, 14,000 twenty-foot equivalent unit container ship. The vessel sails between Asia and Latin America using different marine fuels such as bio-methanol, e-methanol, LNG, bio-LNG, e-LNG, bio-marine gasoil (MGO), e-MGO and very low-sulphur fuel oil. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs could cut refinery throughput by 10pc: Valero


25/01/30
25/01/30

Tariffs could cut refinery throughput by 10pc: Valero

Houston, 30 January (Argus) — US refiner Valero is in a strong position to find alternative sources of crude if the US imposes a 25pc tariff on Canadian imports, but the switch could still cut throughputs by 10pc, the company said today. Valero's refining footprint in the US Gulf coast allows it to source feedstocks from around the world, but there is a point where a limit on heavy feedstocks like those from Canada could affect production of refined products, said chief operating officer Gary Simmons during a fourth quarter earnings call. "You might see a 10pc change in throughputs" depending on how long the tariffs go and how fast they are implemented, he said. Valero operates 1.6mn b/d of refining capacity in the US. President Donald Trump has threatened to impose 25pc tariffs on all imports from Canada and Mexico as soon as 1 February. But commerce secretary nominee Howard Lutnick said earlier this week that the tariffs may not be imposed if the countries cooperate on border security. Trump frequently makes the case that foreign suppliers are solely responsible for paying tariffs, while it is actually US importers that pay the tariffs. In the case of Canadian and Mexican crude, the US refiners that buy from those countries would pay a tax on the value of crude imports. Whether the price of Canadian crude falls by a sufficient amount to offset the 25pc tariff would depend on the market power of individual US refiners and Canadian producers, as well as actions by the Alberta government, according to a recent report by the Congressional Research Service. Valero does not have any details on how the tariffs would be applied and will just "have to deal with it when it comes up," Simmons said. The company reported record high throughputs of heavy sour crude in the fourth quarter of 2024. Heavy sour crude runs averaged 608,000 b/d, compared with 485,00 b/d in the same period in 2023. The increase showed the refining system's flexibility and the company's ability to secure and process the most economic crude oils, Valero said. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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