2024-06-20 23:03
LONDON, June 21 (Reuters) - The world has enough solar power capacity to generate a fifth of its midday peak electricity needs on the longest day of the year in the northern hemisphere, up from 16% last year, a report by thinktank Ember showed on Friday. WHY IT'S IMPORTANT Solar power is currently the fastest growing source of electricity due to falling technology costs, and is expected to become the biggest source of electricity before 2050, some researchers have said. Last year, solar generated a record 5.5% of global electricity, the Ember report added, and 34 economies in the world are now generating over 10% of their electricity from solar power. CONTEXT The northern hemisphere's summer solstice on June 21 is the longest day of the year, but all days in June are similar enough in length that solar generation on that day will be close to the monthly average, based on calculations of the weighted average of hourly solar generation data. Ember estimates 89% of the world's solar panels are installed in the northern hemisphere. BY THE NUMBERS Based on a 24-hour average, solar can provide 8.2% of global total electricity on June 21. For June as a whole, Ember expects the share of solar in total electricity generation to reach 9.6% in China, which is the largest solar market in the world. In the European Union, solar's share is set to be 20% in June, while the United States' and India's shares are expected to be 6.9% and 7.1% respectively. KEY QUOTE "At 20% share, solar is now a serious global electricity source," said Kostantsa Rangelova, electricity analyst at Ember. "Battery costs have collapsed, meaning solar power is already being used in the evening, not just in the daytime." Sign up here. https://www.reuters.com/sustainability/climate-energy/solar-can-provide-20-world-electricity-northern-summer-solstice-thinktank-says-2024-06-20/
2024-06-20 23:00
June 20 (Reuters) - U.S. firm Fulcrum LNG was selected to help Guyana develop a plan to design, finance, construct and operate a natural gas processing facility in the South American country, President Irfaan Ali said on Thursday. The company's proposal was selected from among 17 submitted to Guyana for the gas project. Fulcrum will work with Guyana and energy giant Exxon Mobil (XOM.N) New Tab, opens new tab, which leads a consortium responsible for all the country's oil production, President Ali said at a media briefing. "We have identified a technical team to work with the stakeholders in coming up with the model and to negotiate a heads of agreement and look at the viability -technically and financially- of the project," Ali said. An Exxon Mobil spokesperson did not have an immediate comment on the announcement. Fulcrum LNG did not immediately reply to a request for comment. Guyana has been pressing the Exxon-led oil consortium, which includes Hess Corp (HES.N) New Tab, opens new tab and CNOOC Ltd (0883.HK) New Tab, opens new tab, to come up with a plan to develop natural gas reserves off the country's coast or relinquish areas where gas has been discovered. Exxon has said it hopes to complete an appraisal of the gas findings by early next year and is considering how to best commercialize the natural gas. A government official last month said Guyana had identified a company to help develop the project, which it then estimated will require between $10 billion and $15 billion in investment. Sign up here. https://www.reuters.com/business/energy/fulcrum-lng-named-help-guyana-develop-its-natural-gas-resources-2024-06-20/
2024-06-20 22:50
Kroger reaffirms FY forecasts amid consumer spending pressure Nasdaq ends seven-session streak of record closing highs Indexes mixed: Dow up 0.77%, S&P down 0.25%, Nasdaq down 0.79% June 20 (Reuters) - The S&P 500 and Nasdaq closed lower on Thursday, as market bellwether Nvidia retreated from earlier gains, while investors evaluated recent economic data and commentary from Federal Reserve officials to determine the timing of interest-rate cuts this year. Earlier, the S&P 500 hit the crucial 5,500-point mark for the first time ever, a year-end target multiple brokerages had forecast. Nasdaq ended a seven-session streak of record closing highs. Shares of Nvidia dropped 3.54% after rising earlier in the session. The chipmaker dethroned Microsoft on Tuesday to become the most valuable public company. Dell (DELL.N) New Tab, opens new tab and Super Micro Computer (SMCI.O) New Tab, opens new tab also declined 0.42% and 0.26% respectively after an initial increase, following news that they received server orders for Elon Musk's AI startup. The number of Americans filing new claims for unemployment benefits declined last week, but the latest data showed that the overall number of people on benefits rolls reached the highest level since January, indicating that the U.S. job market continues to cool. Another set of data showed U.S. single-family homebuilding fell in May amid continued high mortgage rates. “The news that we got today was just another negative weakness in the economy”, said Tom Martin, senior portfolio manager at Globalt in Atlanta. “In the employment report, you're getting those (unemployment) claims that are not terrible, but it's.. getting into a territory that's not low necessarily anymore." Energy (.SPNY) New Tab, opens new tab and utilities (.SPLRCU) New Tab, opens new tab were biggest gainers among the 11 S&P 500 sector indexes, up 1.86% and 0.89% respectively, while technology (.SPLRCT) New Tab, opens new tab led the decline. “There's still a lot of noise in there about supply and demand still isn't really that strong. But there's just been.. a willingness to sort of come back to that area where we're going to be needing energy going forward,” said Martin. Meanwhile, Minneapolis Fed President Neel Kashkari said it would take a year or two to get inflation back to 2%, as wage growth might still be too high, spurring worries of interest rates staying elevated for longer. Money markets currently see a 58% chance of a 25-basis-point rate cut by the U.S. central bank in September, according to LSEG's FedWatch data. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 299.90 points, or 0.77%, to 39,134.76, the S&P 500 (.SPX) New Tab, opens new tab lost 13.86 points, or 0.25%, to 5,473.17 and the Nasdaq Composite (.IXIC) New Tab, opens new tab lost 140.64 points, or 0.79%, to 17,721.59. Kroger (KR.N) New Tab, opens new tab fell 3.27% after striking a cautious tone on near-term consumer spending, as it reaffirmed its full-year same-store sales and profit forecasts despite topping first-quarter estimates. Trump Media & Technology Group (DJT.O) New Tab, opens new tab tumbled 14.56% on potential equity dilution after the U.S. Securities and Exchange Commission declared effective the company's filing for a resale of certain shares and warrants, giving it about $247 million in proceeds. Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE. There were 248 new highs and 118 new lows on the NYSE. The S&P 500 posted 31 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 39 new highs and 217 new lows. Volume on U.S. exchanges was 11.98 billion shares, compared with the 13.51 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/sp-nasdaq-futures-climb-nvidia-stretches-rally-2024-06-20/
2024-06-20 22:26
OTTAWA, June 20 (Reuters) - The Pathways Alliance, a group of Canada's biggest oil sands producers, has removed all content about environmental goals from its website and social media pages, citing "significant uncertainty" over the federal government's anti-greenwashing legislation. Bill C-59, which only needs royal assent to become law after Canada's parliament gave approval on Wednesday, would force companies to show proof of their environmental claims. Pathways is proposing a C$16.5 billion ($12.04 billion)carbon capture and storage project to cut carbon emissions from the oil sands, but is yet to make a final investment decision. The group has faced criticism from environmentalists for slow progress and seeking more government financial support. On Thursday, the content on Pathways' website had been replaced with a post about its concerns with omnibus Bill C-59, which will implement the Liberal government's mid-year budget proposals and change Canada's Competition Act. The bill was amended earlier this year to add anti-greenwashing rules. "Imminent amendments to the Competition Act will create significant uncertainty for Canadian companies that want to communicate publicly about the work they are doing to improve their environmental performance," the website said. On Wednesday, that website had said "Canada's oil sands are on a path to reach net-zero emissions from operations," according to an archived copy. Canada is the world's fourth-largest oil producer and the oil and gas sector is the country's highest-polluting industry, accounting for more than a quarter of all emissions. Climate advocacy group Environmental Defence said Pathways' decision to take down content shows "they don't have evidence to support the story they're selling," while the Pembina Group think-tank said there were significant gaps between the emissions reduction promises Pathways first made in 2021 and its actions. The alliance, which includes oil sands producers Suncor Energy (SU.TO) New Tab, opens new tab, Imperial Oil (IMO.TO) New Tab, opens new tab, and Cenovus (CVE.TO) New Tab, opens new tab, said in a statement later on Thursday that it removed its online content because the amendments were too vague and opened the door to "frivolous litigation" from private entities. "These actions are a direct consequence of this legislation and are not related to our commitments or belief in the accuracy of our environmental communications," Pathways said. Asked to comment, a Competition Bureau spokesperson referred to a letter it submitted to lawmakers last month, in which it said the amendments would strengthen its ability to police deceptive greenwashing claims. "While we take the concerns of Pathways Alliance seriously, we are confident that enforcement guidance from the Bureau can help address their concerns and provide assistance to all stakeholders in complying with the law," the letter said. ($1 = 1.3699 Canadian dollars) Sign up here. https://www.reuters.com/sustainability/canadian-oil-industry-group-pulls-climate-messages-over-anti-greenwashing-rules-2024-06-20/
2024-06-20 21:53
June 21 (Reuters) - A look at the day ahead in Asian markets. Japanese inflation goes under the microscope on Friday, with scrutiny likely to be magnified more than usual given the yen's slide toward record lows, rising oil prices and the Bank of Japan's cautious approach to normalizing monetary policy. Sentiment across the continent on Friday may be clouded by Thursday's fall in U.S. stocks and bonds and rise in the dollar, tempting investors to lock in gains - Asian stocks hit a two-year peak this week, and world stocks hit all-time highs. As seems to be the case more and more lately, China is the gloomy exception. Blue chip shares slid to a two-month low on Thursday and are on track for their fifth weekly loss in a row, and the yuan slumped to its weakest level against the dollar since November. Trade tensions between China and the West continue to unnerve investors. German Economy Minister Robert Habeck stirred the pot on Thursday, saying in Seoul that South Korea and Germany both aim to diversify away from China, broaden their raw material suppliers and reduce their dependence on critical products. Oil prices continue their march higher, with U.S. WTI and Brent crude futures both hitting their highest levels since April 30. WTI is now up 13.5% from its June 4 low and has risen in all but two of the 11 trading days since then, and Brent is up 12% and has risen in all but three sessions. It's early days, but central banks will be aware of the inflationary impact a prolonged rise in oil prices could have, none more so than the Bank of Japan. With the yen near record lows against the dollar, the rising dollar-denominated price of oil is crucial for a country that imports well over 90% of its energy. The yen fell back to 159.00 per dollar on Thursday, deep in 'intervention' territory. Could traders push it closer toward 160.00 level and really test Tokyo's resolve? The U.S. Treasury on Thursday said no major trading partner appeared to manipulate its currency last year, but it added Japan to a foreign exchange "monitoring list," alongside other Asian countries China, Vietnam, Taiwan, Malaysia and Singapore. The latest inflation figures from Japan, meanwhile, are expected to show annual core inflation stripping out food and energy likely rebounded in May to 2.6% from 2.2% in April. Headline inflation, at 2.5% in April, likely rose also - Goldman Sachs economists are penciling in 2.9%. Friday's Asia/Pacific regional calendar also sees the release of the first PMI reports for June, namely preliminary readings of factory and services activity this month in Japan, Australia and India. In the corporate world, Softbank Group holds its annual general shareholders meeting. Here are key developments that could provide more direction to markets on Friday: - Japan inflation (May) - Japan, Australia, India PMIs (June) - Softbank AGM Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-06-20/
2024-06-20 21:39
HOUSTON, June 20 (Reuters) - A contract arbitration panel that could block or green-light the $53 billion sale of Hess Corp (HES.N) New Tab, opens new tab to Chevron (CVX.N) New Tab, opens new tab remains incomplete three months after the case was filed, stalling a decision on whether Exxon Mobil (XOM.N) New Tab, opens new tab has a right of first refusal over Hess' Guyana operations. The third and final arbitrator has not been appointed, according to people familiar with the matter. A delay could mean no decision this year as Hess has forecast. Uncertainty on whether the sale can proceed has pressured Chevron shares, which are down 7.8% since the deal was disclosed. Each side in the dispute appoints one arbitrator and those two nominate the third, according to the people. The International Chamber of Commerce (ICC), parent of the arbitration panel, did not reply to requests for comment on the timeline for appointing the third arbitrator or for deciding the case. Hess said "the arbitration is moving forward and we expect to have a decision by the end of 2024.” But lawyers who have been involved with international arbitrations say timing varies for such decisions. "The precise dynamics ... will depend upon the rules of the arbitration," said Chris Strong, a partner at Vinson & Elkins law firm and also vice-president for model contracts of the Association of International Energy Negotiators New Tab, opens new tab. Generally, he said, if two arbitrators "are unable to agree on a third arbitrator within a certain period of time, they can apply to the administering authority, if there is one". “The market is hoping that there is a speedy settlement to the arbitration process, but has never understood properly what Exxon is trying to achieve," said Mark Kelly, an analyst with financial firm MKP Advisors. "It is widely believed that Exxon has never communicated this to even Chevron or Hess.” Chevron originally hoped to close the Hess acquisition by the first half of this year. Hess shareholders last month backed the proposed sale by a slim, 51% majority. The U.S. Federal Trade Commission has yet to weigh in on any antitrust questions. The deal would give Chevron a 30% stake in a Guyana oil consortium that has found at least 11 billion barrels of oil and continues to plumb a 6.6 million-acre (26,800 sq km) block. The group has forecast output of 1.3 million barrels per day by 2027. Chevron, Exxon and Hess declined to estimate timing of an appointment to the panel, which will consider Exxon's claim that Chevron is trying to circumvent its preemption right included in the Guyana oil consortium's joint operating agreement (JOA). Exxon is the group's majority owner with 45%, Hess has a 30% stake and CNOOC 25%. Chevron said Exxon's right of first refusal does not apply to a sale of the entire Hess company. Exxon and Hess have declined to comment on the precise language of the JOA, a confidential document. In April, Hess said it wants the case heard by the third quarter and arbitration completed by year end. On May 9, Hess CEO John Hess asserted the final arbitrator would be appointed by May 17, according to proxy adviser Institutional Shareholder Services. Exxon CEO Darren Woods has said he expected the dispute would slip into 2025. LANGUAGE OR INTENT? Exxon executives have been saying the arbitrators should consider the "intent" behind the JOA made with its original partner in Guyana, Shell PLC, which sold its stake before oil was discovered there in 2015. "We wrote the JOA, so we have a pretty clear line of sightness to the intent and the circumstances that apply," CEO Woods said after first quarter earnings, on April 28. "That is the point of the arbitration." The intent was key in a 2017 right of first refusal case New Tab, opens new tab in which Exxon was targeted in Canada by energy firm Northrock Resources, says Mohamed Amery, a partner at Canadian law firm Linmac LLP. Exxon ultimately won the right to sell those assets. "When the court looks at the interpretation of a clause within a contract, it doesn't read it in its black and white, it looks to what the discussions were between the parties," Avery said. Exxon said the JOA it made on the Guyana assets was based on an industry model but declined to specify which model. Most of the industry used the 2002 model from the Association of International Energy Negotiators New Tab, opens new tab as a base, with some altered provisions, said Strong. Different valuations of the Guyana asset could play a role if Exxon prices Hess Guyana stake above the $53 billion offered by Chevron for Hess Corp. The parties declined to disclose their valuations. Generally speaking, the question of right of first refusal "hinges on the specific wording of the JOA and on the value of the asset in relation to the larger change of control transaction," said Strong. Sign up here. https://www.reuters.com/markets/deals/exxon-hess-arbitration-panel-incomplete-hess-sale-chevron-stalled-2024-06-20/
