2023-12-20 23:13

Dec 21 (Reuters) - Woodside Energy (WDS.AX) said on Thursday it has signed a sales and purchase agreement with a unit of Pilbara Minerals (PLS.AX) for the supply of domestic liquefied natural gas (LNG) from its Pluto Truck Loading Facility in Western Australia. The LNG will be used at Pilbara Minerals' Pilgangoora lithium operation in Western Australia, where it will replace diesel for power generation. The LNG supply will start in the fourth quarter of 2024 for a period of five years, with Woodside supplying an average volume of 3.4 terajoules of LNG per day as part of the agreement. https://www.reuters.com/business/energy/woodside-energy-supply-lng-pilbara-minerals-unit-2023-12-20/

2023-12-20 23:10

Dec 20 (Reuters) - Warner Bros Discovery (WBD.O) CEO David Zaslav met with Paramount Global (PARA.O) CEO Bob Bakish to discuss a potential deal between the two companies, a source told Reuters on Wednesday. The talks were first reported by Axios on Wednesday, citing multiple sources. Zaslav has also spoken to Shari Redstone, who owns Paramount's parent company, about a deal, Axios reported, adding the meeting between Zaslav and Bakish lasted several hours. It is unclear whether Warner Bros would buy Paramount Global or its parent company, National Amusements Inc (NAI), the source told Reuters. Axios said both options were on the table. Warner Bros and Paramount did not immediately respond to Reuters' requests for comment. Paramount is controlled by the Shari Redstone-led media company that owns 77% of Paramount's Class A voting shares. Talks between Warner Bros and Paramount are still early, and may not ultimately result in a deal, according to the Axios report. In April last year, AT&T's WarnerMedia unit and Discovery merged to become Warner Bros Discovery, with a portfolio that included Discovery Channel, Warner Bros. Entertainment, CNN, HBO, Cartoon Network; streaming services Discovery+ and HBO Max; and franchises such as "Batman" and "Harry Potter". Earlier on Wednesday, Bloomberg News reported Paramount was in talks to sell its Black Entertainment Television network to a management-led investor group. There have been other reports of takeover interest in Paramount, which has a market cap of $10.5 billion and long-term debt of about $15.6 billion. Warner Bros shares closed about 6% lower on Wednesday, while Paramount shares fell about 2%. https://www.reuters.com/markets/deals/warner-bros-discovery-paramount-global-talks-merge-axios-2023-12-20/

2023-12-20 23:00

BEIJING, Dec 20 (Reuters) - China's surging oil production growth in recent years, the result of a concerted investment push, is expected to ease in 2024 as falling output from mature fields requires state oil companies to tap more challenging shale and ultra-deep reserves. While China is the world's biggest crude importer, it was also the world's sixth-largest crude oil producer last year, according to the EI Statistical Review of World Energy, with heavy investment helping to reverse a significant decline between 2015 and 2018. Production for 2023 at around 4.18 million barrels per day (bpd) remains below the 2015 record of 4.3 million bpd, but Goldman Sachs said that the upside surprise of China's output trails only the higher-than-expected production this year from the U.S., Iran and Russia. For next year, analysts and agencies are divided on the outlook, with forecasts ranging from a drop in output by as much as 31,000 bpd or increase of up to 60,000 bpd, a growth slowdown that is likely to increase China's import dependency. "The majority of China's oil fields are in a mature phase, facing natural production declines, (while) the scarcity of substantial new discoveries poses a challenge to sustaining long-term production growth at current rates," said Rystad Energy analyst Lin Chen. After a 12% drop in output between 2015 and 2018, national oil companies Sinopec Corp , PetroChina and CNOOC Ltd (0883.HK) ploughed cash into increased recovery at existing fields and exploration of new ones amid Beijing's push for greater energy security. Since 2018, domestic oil output has grown an average of 2% per year. "The Chinese majors have been working at maximum capacity to grow production," led by CNOOC, said Yu Baihui, analyst at S&P Global Commodity Insights. BOOMING BOHAI China's production from offshore fields totalled 58 million metric tons in 2022, equal to 1.16 million bpd and accounting for 60% of the country's total production increase, according to the National Energy Administration (NEA), centred on the Bohai basin off China's east coast, including the Bozhong 19-6 and Kenli 10-2 fields. Offshore specialist CNOOC, the primary Bohai company, has boosted output from the region by 22% between 2018 and 2022. On land, the state producers are developing shale assets and deep reserves, much of it in the west, including Sinopec's development of one of the world's deepest reserves in the Tarim basin of the Xinjiang region. China's annual shale oil production exceeded 3 million tons in 2022, nearly quadrupling from 2018, the NEA said. 'HIGH-HANGING FRUIT' However, the technical difficulty of exploring such wells means that China's oil production is unlikely to sustain growth. "The new fields tend to fall into two camps: challenging, deep and remote new fields onshore, and new marginal discoveries offshore, primarily by CNOOC," said Angus Rodgers, head of Asia -Pacific upstream analysis at Wood Mackenzie. The consultancy forecasts domestic production to fall by 0.8% to 3.94 million bpd next year, with a slow decline in the following years. However, Rystad forecasts a 1% increase from 2023 to 4.22 million bpd next year, though they are less optimistic of growth after 2024. The International Energy Agency (IEA) expects production to rise by 1.4% to 4.36 million bpd. Chinese state oil companies are now pushed to chase "high-hanging fruit", said Woodmac's Rodgers, such as PetroChina's Qingcheng shale oil field in the Ordos basin. PetroChina estimates that there are some 7.3 billion barrels of oil in place at Qingcheng, but high costs mean that only a small portion of this is currently commercially viable, Woodmac said. "We think it will be very challenging for China to maintain oil production growth," Rodgers said. https://www.reuters.com/markets/commodities/china-oil-output-growth-slow-2024-supply-harder-extract-2023-12-20/

2023-12-20 22:43

EAGLE PASS, Texas, Dec 20 (Reuters) - Dozens of major U.S. agricultural groups on Wednesday urged the U.S. to reopen two rail crossings on the Texas-Mexico border in an effort by businesses to restore the trade routes shuttered due to increased migrant crossings. In a sharply worded letter to U.S. Homeland Security Secretary Alejandro Mayorkas, the growers - representing corn, milk, rice and soybean producers, among others - said the crossings could be easily reopened and that closures already had caused steep export losses. "Each day the crossings are closed we estimate almost 1 million bushels of grain exports are potentially lost along with export potential for many other agricultural products," the groups wrote, adding that blocking food heading to Mexico could lead to inflation or food insecurity there. Railroad companies and business groups - including the U.S. Chamber of Commerce - in recent days have pressed U.S. Customs and Border Protection (CBP) to reopen the two rail bridges in Eagle Pass and El Paso after U.S. border authorities closed them on Dec. 18 in order to "redirect personnel" to process migrants crossing the border. Among the groups signing the agricultural business letter were the National Grain and Feed Association, U.S. Wheat Associates, American Soybean Association and National Corn Growers Association. U.S. Border Patrol apprehended about 10,800 migrants at the southwest border on Monday, according to an internal agency report reviewed by Reuters, a tally several current and former officials said was near or at a single-day record high. The news came after Mexico's immigration agency said in an internal Dec. 1 memo reviewed by Reuters that it would suspend migrant removals due to an end-of-year funding crunch. Operations should return to normal in January, a Mexican source familiar with the matter said, adding that the U.S. closure of legal border crossings appeared to be an attempt by the U.S. to pressure Mexico over the scaled back enforcement. Mexico's foreign ministry spokesperson said no date had been set for resuming the repatriations. The agricultural groups said CBP could reopen the railroad bridges with as few as five employees per crossing, challenging the agency's rationale for closing the trade routes. Acting CBP Commissioner Troy Miller said on Tuesday that illegal crossings were "presenting a serious challenge" and that CBP was using all available resources to keep agents and migrants safe. CBP did not immediately respond to a request for comment related to the agricultural groups' demands, which echoed concerns from Mexico's top farm lobby. In October, total rail freight between the El Paso and Eagle Pass ports topped $3 billion in both directions, according to the U.S. Department of Transportation. That accounted for some 4% of total trade across the U.S.-Mexico border that month. Neil Bradley, chief policy officer of the U.S. Chamber of Commerce, said in a statement to Reuters that the rail shutdowns "will inflict significant economic harm" and "do nothing to secure the border." The increase in migrant crossings comes as Democratic President Joe Biden, who is running for re-election in 2024, has sought to strike a deal with Republican lawmakers that would pair increased U.S. border security with military aid for Ukraine and Israel. But a bipartisan group of senators negotiating a compromise have so far failed to reach a deal as a Christmas break approaches. 'NEED TO HAVE OPEN TRADE' Eagle Pass and El Paso have received thousands of newcomers in recent days, as migrants - including many families with young children - make their way to the border by bus, atop cargo trains, on foot and even by bicycle. On Wednesday in Eagle Pass, hundreds of migrants were being held in an outdoor area near the Rio Grande. Three migrants were carried out with medical emergencies in the afternoon while others called out for food, a Reuters witness said. CBP said it was aware of two medical emergencies, one related to dehydration and another that appeared to be seizure-related. During a press conference near the border, U.S. Representative Tony Gonzales, a Republican who represents Eagle Pass, urged U.S. lawmakers to make legal changes to deter illegal border crossings that have disrupted trade and transit. "This has to come to an end," Gonzales said. "We need to have open trade and commerce again." Some 270 U.S. Immigration and Customs Enforcement (ICE) agents have been pulled from their jobs handling deportations and international investigations to help with migrant transport and other tasks at the border, a Department of Homeland Security (DHS) official told Reuters, requesting anonymity to discuss internal operations. Union Pacific (UNP.N) and Berkshire Hathaway's (BRKa.N) BNSF Railway, two of the nation's largest freight railroad companies, warned of supply chain disruptions ahead of the Christmas holiday due to the railway bridge closures. Union Pacific said in a statement on its website that a range of products - including grain, beer, metals, cement and automotive parts - have been halted due to the closures. The closed bridges account for about 45% of its cross-border shipments and that the overall economic impact of the closure will be more than $200 million per day. BNSF declined to comment on the value of goods affected by the closings. In addition to the railroad crossing closures, U.S. border authorities this month have closed a busy pedestrian crossing near San Diego, California, and another crossing in remote Lukeville, Arizona, to free up workers to process arriving migrants. https://www.reuters.com/world/migrant-surge-us-mexico-border-slows-trade-washington-seeks-answers-2023-12-20/

2023-12-20 22:24

WASHINGTON, Dec 20 (Reuters) - A U.S. government watchdog said Transportation Secretary Pete Buttigieg's use of government airplanes on eight trips complied with all federal rules. The Transportation Department Office of Inspector General (OIG) review released on Wednesday also found that flights made by his predecessor, Elaine Chao, on Federal Aviation Administration-operated (FAA) planes also complied with federal requirements. The report said the department "complied with federal regulations, policies, and procedures regarding official travel by the secretaries on DOT aircraft from January 2017 to June 2023." Buttigieg's eight trips included 22 flight legs on department jets which accounted for 11.6% of his official trips through June 30, while Chao's accounted for 7.3%. A spokesperson for Chao declined to comment. The FAA operates a fleet of 38 airplanes for aviation safety training; flight inspection; research, development, test and evaluation support; and critical event response. Buttigieg said in September that he had taken 600 total airline flights since taking office. A spokesperson for Buttigieg said that the U.S. Transportation secretary had "directed that travel and logistical decisions be grounded in efficient and responsible use of taxpayer dollars." The OIG report said Buttigieg most recently used government planes for a Mexico City trip in June to meet with the Mexican president and in September 2022 to attend meetings of the International Civil Aviation Organization in Montreal. The Department of Transportation had cited security and communication needs for both trips. Buttigieg's government flights cost about $59,000 in total, while Chao's flights cost $98,508, including $70,000 for a 2017 trip to the Paris air show. The report added there were no instances of non-federal officials onboard DOT aircraft during the Transportation secretaries’ official travel. The spokesperson added: "the majority of times the FAA aircraft was used actually saved taxpayers money, including in instances that were required for exceptional scheduling needs." A 1992 White House memo allows senior government officials to travel on government aircraft, but with restrictions. The review, launched in February, had been sought by Republican Senator Marco Rubio, who had asked if there had been any violations of Transportation Department policy. https://www.reuters.com/world/us/buttigieg-flights-us-government-jets-complied-with-federal-rules-report-2023-12-20/

2023-12-20 22:22

Dec 20 (Reuters) - The Canada Energy Regulator on Wednesday said it denied a variance request from the Trans Mountain expansion project because the application did not adequately address concerns about pipeline integrity and environmental protection impacts. Trans Mountain had asked to be allowed to install smaller diameter pipe in a 1.4-mile (2.3-km) section of the oil pipeline's route after encountering "very challenging" drilling conditions due to the hardness of the rock in a mountainous area between Hope and Chilliwack in the province of British Columbia. The CER denied that request on Dec. 5. https://www.reuters.com/sustainability/climate-energy/canada-regulator-gives-reasons-denying-trans-mountain-pipeline-variance-2023-12-20/