Column: ‘We need to talk about Donald’ – The elephant in crude oil’s uncertain world; Saudi Arabia Names New Energy Minister; Big Oil vs Farm Majors: Ethanol Tussle Is Heading to Asia; Saudi Arabia Aims to Restore a Third of Lost Oil Output Monday and The Electric Cars Are Here. Now How About Selling Them.
Column: ‘We need to talk about Donald’ – The elephant in crude oil’s uncertain world: The Asia Pacific Petroleum Conference (APPEC) took place this week, in which guest speakers highlighted the issues surrounding the crude oil industry in terms of supply issues in Iran and Venezuela. As a result of these supply issues, there has been trading disputes and a worldwide slowdown. The issue initially stemmed from Donald Trump enforcing restrictions on both countries in failed attempts to get their leaders to compromise to the demands of the USA. There now seems to be a crisis in the global oil markets; causing a great deal of ‘uncertainty’ which is the real fear that crude oil prices are set to lower dramatically. Click here to read more
Saudi Arabia Names New Energy Minister: Prince Abdulaziz bin Salman has been given the role the new energy minister, which is the first time a royal has taken on the position. He replaced Khalid al-Falih from his post. Mr Falih was fired after failing to show advancement in the kingdom’s development plans. However, it seems the prince has big shoes to fill, as Mr Falih was a widely respected figure in the industry. It is yet to be seen as to whether Prince Abdulaziz is strong enough to take on a political role, which his younger brother, Prince Mohammed was deemed capable of after becoming heir to the throne in 2017. Despite this, Prince Abdulaziz has shown expert skills in negotiating; especially with the kingdom’s main rival, Iran. He was gradually given responsibility to settle a deal concerning the reopening of joint oil fields with Kuwait and persuade the U.S. to sell its nuclear technologies to the kingdom. Click here to read more
Big Oil vs Farm Majors: Ethanol Tussle Is Heading to Asia : Beaten by the trade war with China, U.S. farm companies are now searching the globe for extra sources of demand, meaning that crop handler The Andersons Inc. is in direct competition with companies such as Royal Dutch Shell Plc and BP Plc for a portion of the global fuel market. The ethanol business’ president, James Pirolli said: “We’re moving away from ethanol being seen as an agricultural product and moving toward it being an energy product and gasoline component”. The company are now looking to boost sales in countries such as Indonesia and Vietnam, who are dependent on foreign fuel resources. Margins at U.S ethanal plants have suffered severely as a result of Donald Trump’s trade war, which ended sales to China. Yet sales could double to more than 1.2 billion a year if an agreement is made between the two countries. Anderson Inc. are positive that U.S demand for ethanol will increase in the next seven years after adopting E15 gasoline with a content of 15% ethanol. Click here to read more
Saudi Arabia Aims to Restore a Third of Lost Oil Output Monday: Saudi Arabia recently lost 6% of global oil input which sent crude oil prices soaring in order to restore one-third of the deficit. Prices rose 9.2% higher in the U. S and 10.4% in Europe as a result. The boost in prices will have a negative effect on shale producers, who have already been under immense pressure from investors to limit spending and boost profits. CEO of government-owned Saudi Arabian Oil Co (otherwise known as Aramco); Amin Nasser claimed that work is proceeding to restore production. After an attack on Aramco which caused significant damage to facilities, Trump claimed oil prices could become affected and gave permission for oil to be distributed from the U.S. Strategic Petroleum Reserve. Magnus Nysveen, head of analysis at Rystad Energy commented: “Saudi Arabia has also depleted its crude oil stocks to the lowest levels in 10 years, so the country alone does not have the same robustness to Middle East interruptions as it used to have”. However, analysts remain hopeful that the oil market will eventually become stable. Click here to read more
The Electric Cars Are Here. Now How About Selling Them: Although it took over 10 years for electric cars to be taken seriously, there is now a serious issue in trying to sell them. The reason for this, is that customers look for reliability – but can electric cars provide that? The world’s biggest electric car market in China even fell a colossal 16% in August and while the manufacturers can reduce their prices, it will go on to affect their profitability even further. In Europe, only 2% of total registrations were hybrid or fully electric vehicles. Until 2025 when battery prices are set to lower, it’s expected that there will be some difficult years ahead for the electric car market. On Wednesday, the ACA asked national governments to raise the number of charging points to 2.8 million by 2030 in order to increase electric car sales. Click here to read more