2024-01-03 19:58

WINNIPEG, Manitoba/OTTAWA, Jan 3 (Reuters) - Canadian Prime Minister Justin Trudeau faces a setback for his climate-change action plan in conservative-leaning Saskatchewan, as provincial opposition mounts against the federal carbon tax. On Monday, the western Canadian province stopped collecting the tax applied to homes heated by natural gas and electricity, after Trudeau's Liberal government exempted home heating oil from the tax in a move that favoured Atlantic Canada residents. Many premiers criticized the federal exemption. "The reason why we're doing this is to give that same carbon tax fairness for families here in Saskatchewan," Dustin Duncan, Saskatchewan's minister responsible for government-owned natural gas distributor SaskEnergy, said in an interview. Trudeau, whose popularity has plummeted after eight years in office, already faces opposition from Alberta over plans to cut emissions from the oil and gas and electricity sectors. Saskatchewan will not break federal law if it remits to Ottawa carbon tax revenue as scheduled in February. The province has not yet decided whether to withhold that payment from Ottawa as it could fund it with general revenues instead of consumer utility payments, Duncan said. Saskatchewan has asked the Canada Revenue Agency to register the provincial government as the province's natural gas distributor instead of SaskEnergy to protect the utility's executives from penalties and criminal charges for breaking federal law. If the agency rejects the request, Duncan said it's unlikely Saskatchewan will withhold tax revenue from Ottawa. SaskEnergy paid C$172 million ($129 million) in carbon tax during the 2022-23 fiscal year. Asked about Saskatchewan's stance, federal finance department spokesperson Katherine Cuplinskas said government rebates leave most families with more than they paid in carbon tax. Opposition Conservative Party leader Pierre Poilievre, who leads in opinion polls ahead of a likely 2025 federal election, has cast the carbon tax as a pocketbook issue, said Frank Graves, founder of polling company Ekos Research. Many voters believe the carbon tax "is causing deep affordability problems," he said. "It's a bumper sticker, simple light, resonant message that people don't have to work hard to understand." The tax charges C$65 per metric ton of carbon, applied in areas such as home heating bills and gas stations. Trudeau's government deserves much of the blame for Saskatchewan's opposition because it exempted home heating oil, said Blake Shaffer, associate professor of economics at University of Calgary. Both the heating oil exemption and Saskatchewan's stance create uncertainty, undermining the tax's effectiveness in spurring consumers to reduce emissions, such as by replacing appliances, he said. "The feds did themselves some real damage and opened the door for this kind of political stunt" by Saskatchewan, Shaffer said. ($1 = 1.3353 Canadian dollars) https://www.reuters.com/world/americas/trudeaus-climate-plan-faces-setback-canadian-province-over-carbon-tax-2024-01-03/

2024-01-03 19:01

Jan 3 (Reuters) - Goldman Sachs (GS.N) is in talks to be an authorized participant for the spot bitcoin exchange-traded funds that BlackRock (BLK.N) and Grayscale are looking to launch, CoinDesk reported on Wednesday, citing people familiar with the situation. There are currently 14 asset managers hoping to finally win the U.S. Securities and Exchange Commission's approval for spot bitcoin ETFs, which would track the market price of the underlying crypto asset, giving investors exposure to the token without having to buy the currency. The SEC is expected to announce its decision by Jan. 10 - the deadline to either approve or reject the Ark/21Shares ETF. To date, the only crypto ETFs approved have been tied to futures contracts on bitcoin and ethereum. Goldman Sachs and BlackRock declined to comment. Grayscale did not immediately respond to a request for comment from Reuters. Over the last decade, the top U.S. markets regulator has rejected multiple attempts to launch these products, citing fears about market manipulation and an inability on the part of would-be issuers to protect investors. An authorized participant has the right to create and redeem the shares of an ETF, and ensures the fund tracks the underlying asset. https://www.reuters.com/business/finance/goldman-talks-with-blackrock-grayscale-be-part-spot-bitcoin-etfs-coindesk-2024-01-03/

2024-01-03 18:43

Jan 3 (Reuters) - European energy firms Equinor (EQNR.OL) and BP (BP.L) terminated their agreement to sell power to New York state from their proposed Empire Wind 2 offshore wind farm, citing rising inflation, higher borrowing costs, and supply chain issues. "This agreement reflects changed economic circumstances on an industry-wide scale and repositions an already mature project to continue development in anticipation of new offtake opportunities," Equinor said in a statement on Wednesday, in an apparent reference to a new offshore wind solicitation launched by New York in November. The solicitation allows companies to exit old contracts and re-offer projects at higher prices. The winners of an expedited solicitation for offshore wind will be announced in February. An Equinor spokesperson declined to comment on the bid strategy for the 1,260-megawatt (MW) Empire Wind 2 project, but said it was "carefully assessing" the solicitation and was "encouraged by the state's commitment to offshore wind." The power sale agreement for the 816-MW Empire Wind 1 remains in place, the spokesperson added. One megawatt of offshore wind can power around 500 U.S. homes. The offshore wind industry is expected to play a major role in helping U.S. President Joe Biden and several states, including New York, meet their goals to decarbonize the power grid and combat climate change. But progress slowed in 2023 after offshore developers canceled contracts to sell power in Massachusetts, Connecticut and New Jersey, and threatened to cancel agreements in other states, as soaring inflation, interest rate hikes and supply chain problems increased project costs. New York accelerated its solicitation in October after several developers, including Orsted (ORSTED.CO), the world's biggest offshore wind company, BP and Equinor, threatened to cancel contracts to sell power that were awarded in 2019 and 2021 before the Federal Reserve started hiking interest rates in March 2022 to fight soaring inflation. "Empire Wind 2 has been 'at risk' since the project developers made clear in their June 2023 petition that they would not move forward under the current contract," said Timothy Fox, managing director at ClearView Energy Partners. New York's first offshore wind farm, Orsted's 132-MW South Fork, provided its first power in December. In Massachusetts, Avangrid (AGR.N) and Copenhagen Infrastructure Partners said on Wednesday their 806-MW Vineyard Wind 1 project produced first power for the New England grid. Avangrid is majority-owned by Spanish energy company Iberdrola (IBE.MC). https://www.reuters.com/business/energy/equinor-bp-cancel-contract-sell-offshore-wind-power-new-york-2024-01-03/

2024-01-03 18:12

DUBAI/LONDON, Jan 3 (Reuters) - OPEC said on Wednesday cooperation and dialogue within the wider OPEC+ producer alliance will continue, after OPEC member Angola last month said it would quit, and that it plans a Feb. 1 meeting to review implementation of its latest oil output cut. Continued cooperation within the Organization of the Petroleum Exporting Countries and allies such as Russia will benefit "all producers, consumers and investors, as well as the global economy at large," OPEC said in a statement. Angola said on Dec. 21 that it will leave OPEC from this month, a decision that prompted a drop in oil prices and that some analysts said raised questions about the unity of both OPEC and the wider OPEC+ alliance. The OPEC statement made no mention of Angola but said OPEC members were united. "OPEC member-countries re-affirm their steadfast commitment to the shared objectives of unity and cohesion both within the organization, and with the non-OPEC producing countries participating in the DoC," it said, using OPEC+'s formal name the Declaration of Cooperation. Oil rose about 3% on Wednesday with Brent crude exceeding $78 a barrel after supply disruption in Libya's top oilfield. Still, Brent is down from near $98 in September, in part because of doubts about OPEC+'s cohesion. Prices "are trading around these low levels because the market is well-supplied and cracks have appeared in the OPEC+ alliance, creating uncertainty around its output cuts," said Craig Erlam, analyst at brokerage OANDA. OPEC+ is making a further round of voluntary oil output cuts totalling about 2.2 million barrels per day (bpd) for the first quarter of 2024, adding to earlier reductions announced in various steps since late 2022, to support the market. The group will hold a virtual meeting of its Joint Ministerial Monitoring Committee (JMMC) on Feb. 1, a source told Reuters on Wednesday. This panel, which brings together leading countries within the alliance including Saudi Arabia, Russia and the United Arab Emirates, usually meets every two months and can call for a full meeting of OPEC+ if it considers that warranted. https://www.reuters.com/markets/commodities/opec-continue-cooperation-benefit-global-economy-statement-2024-01-03/

2024-01-03 18:00

WASHINGTON, Jan 3 (Reuters) - The U.S. is seeking to buy up to 3 million barrels of U.S.-produced sour crude oil for delivery in April to help replenish the Strategic Petroleum Reserve (SPR), the Department of Energy said in a statement on Wednesday. President Joe Biden's administration is slowly purchasing oil for the SPR after it sold a record 180 million barrels from it in 2022 to help fight high oil prices after Russia's invasion of Ukraine. Bids for the solicitation are due on Jan. 10. The department has bought back about 13.8 million barrels at an average price of $75.63 a barrel, nearly $20 a barrel less than it sold the oil for in 2022, and has sped up the return of nearly 4 million barrels from loans to oil companies. It also worked with Congress to cancel what had been mandatory sales of 140 million barrels from the SPR required by laws passed by both Democrats and Republicans for about four years starting in late 2023. The SPR, the world's largest stash of emergency oil supply, currently holds about 354.4 million barrels in underground salt caverns in four locations on the coasts of Texas and Louisiana. https://www.reuters.com/business/energy/us-seeks-3-mln-barrels-crude-strategic-reserve-energy-dept-2024-01-03/

2024-01-03 17:58

Jan 3 (Reuters) - Activist hedge funds ValueAct Capital and Blackwells Capital moved on Wednesday to back Walt Disney Co (DIS.N) as it defends itself against a board challenge from a third activist investor, Trian Fund Management. The unusual twist in the battle for Disney's board underscores the high stakes in the company's attempted turnaround under CEO Bob Iger. Iger led Disney from 2005 to 2020, and returned to the helm in November 2022 as investors punished the company's stock for a $1.5 billion quarterly loss in its streaming division and the underperformance of many of its movie franchises. Disney said on Wednesday it had reached a deal with ValueAct to advise it on strategy and support its director nominees at its annual shareholder meeting. Separately, Blackwells said it has nominated three directors to Disney's board who, unlike Trian, support the company's strategy, confirming an earlier Reuters report. "ValueAct has a track record of collaboration and cooperation with the companies it invests in, and its co-CEO Mason Morfit has been very constructive in the conversations we've had over the past year," Iger said. Disney confirmed Blackwells' nominations and said its governance and nominating committee would review the candidates and provide a recommendation. "Disney has an experienced, diverse, and highly qualified board that is focused on the long-term performance of the company, strategic growth initiatives including the ongoing transformation of its businesses, the succession planning process, and increasing shareholder value," it said. Late last year, Trian's CEO Nelson Peltz has nominated himself and a former Disney chief financial officer, James Rasulo, to Disney's board, positioning themselves as people the media and entertainment giant needs to cut costs, lay out a CEO succession plan, and revamp the group's streaming operations. Trian said it welcomes other shareholders attempting to help "fix" Disney but said they "need Nelson Peltz and Jay Rasulo as independent voices and catalysts for much needed change on what's been a chronically underperforming Board." Blackwells disagreed that Peltz and Rasulo should win seats, noting "if anyone is needed it's the Blackwells’ nominees." The firm also called Disney's agreement with ValueAct "a disappointing defensive move ... Bringing all shareholders a real and better choice for directors is the necessary act that will support the future success of Disney." ValueAct has known the Disney team for more than a decade and has been in contact with management as it built its stake over the last months, sources told Reuters in November. It sees room for the company's stock price to roughly double, the sources had said. On Wednesday, Disney's stock price was mostly flat at $90.60. The investment firm, which has long preferred to work with target companies out of the spotlight, has experience in the media sector. It previously held a board seat at 21st Century Fox, and supported the company when it sold its entertainment assets to Disney. A year ago ValueAct's co-CEO Mason Morfit was invited onto the board of Salesforce (CRM.N), and helped defuse a brewing fight between the business-software maker and a handful of activists who were threatening a proxy fight. ValueAct has board seats at roughly half the companies in its portfolio. Morfit said in a statement "we could not be more excited to partner with Bob (Iger) and the board to help create long-term sustainable shareholder value." In an effort to blunt the board challenge, Disney already refreshed its board in November, naming former Morgan Stanley CEO James Gorman and former SKY CEO Jeremy Darroch as directors. https://www.reuters.com/business/media-telecom/walt-disney-valueact-enter-deal-consult-activist-investor-strategy-2024-01-03/