Chevron launches carbon capture and storage project in San Joaquin Valley

Chevron launches carbon capture and storage project in San Joaquin Valley

MOSCOW (MRC) -- Chevron New Energies division announced it is launching a carbon capture and storage (CCS) project aimed at reducing the carbon intensity of its operations in San Joaquin Valley, California, said Hydrocarbonprocessing.

Chevron aims to reduce its carbon intensity - the amount of CO2 emitted per unit of energy produced - by installing CO2 post-combustion capture equipment, capturing the CO2 and then safely storing it thousands of feet underground. This CCS initiative would begin at Chevron’s Kern River Eastridge cogeneration plant in Kern County, California.

Chevron has applied to obtain a Conditional Use Permit with the Planning and Natural Resources Department of Kern County and will continue to work with appropriate regulators throughout the process. In addition to the Eastridge cogeneration project, Chevron is currently evaluating and deploying multiple carbon capture technology demonstrations to mature more efficient and cost-effective capture solutions, potentially enabling future projects, not only for Chevron, but for other industries.

An August 2020 report by the Lawrence Livermore National Laboratory that highlighted opportunities for California to become carbon neutral noted, “there are various options for geologic storage sites in the state, but we have identified the most promising first candidates in San Joaquin County and in Kern County,” due to the regions’ geologic and subsurface characteristics, as well as the existing oil and natural gas production.

Chevron is also actively exploring additional opportunities to lower the carbon intensity of its SJV operations, including the blending of hydrogen with natural gas in combustion, and the potential use of other emerging lower carbon technologies, such as geothermal.

As per MRC, Chevron and ExxonMobil have signed separate agreements with state energy company PT Pertamina to explore lower carbon business opportunities in Indonesia. Chevron signed an MoU through its subsidiary, Chevron New Ventures Pte. Ltd, and is looking at potential businesses in new geothermal technology, carbon offsets through nature-based solutions, carbon capture, utilization, and storage (CCUS), Pertamina said.

We remind that Chevron Phillips Chemical, a joint venture of Phillips 66 and Chevron, will make a final investment decision on a new cracker in far southeast Texas in 2022, followed by an FID in 2023 on an USD8 billion joint venture petrochemical complex along the US Gulf Coast in 2023.
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REG stockholders approve acquisition by Chevron

REG stockholders approve acquisition by Chevron

MOSCOW (MRC) -- Renewable Energy Group Inc., a leading biobased diesel producer in North America, announced May 17 that its stockholders voted to adopt the previously announced definitive agreement in which REG will be acquired by Chevron Corp., said Renewablesnow.

At the May 17 annual meeting, REG stockholders adopted the merger agreement with more than 80 percent of the shares outstanding and entitled to vote voting in favor of the merger.

REG expects to file with the Securities and Exchange Commission a current report on Form 8-K disclosing the final voting results.

"We are pleased with the outcome of today’s shareholder vote, which is a key step to closing the transaction,” said CJ Warner, president and CEO of REG. “After the transaction is complete, we believe the organization will continue delivering the sustainable fuels that our customers and the world need."

The merger is expected to close mid-year, subject to customary closing conditions, including the receipt of regulatory approvals.

REG operates 11 biobased diesel refineries in the U.S. and Europe. In 2021, REG produced 480 million gallons of cleaner fuel delivering 4.1 million metric tons of carbon reduction.

As per MRC, Chevron New Energies division announced it is launching a carbon capture and storage (CCS) project aimed at reducing the carbon intensity of its operations in San Joaquin Valley, California. Chevron aims to reduce its carbon intensity - the amount of CO2 emitted per unit of energy produced - by installing CO2 post-combustion capture equipment, capturing the CO2 and then safely storing it thousands of feet underground. This CCS initiative would begin at Chevron’s Kern River Eastridge cogeneration plant in Kern County, California.
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Stronger U.S. dollar contributes to higher crude oil prices in international markets

Stronger U.S. dollar contributes to higher crude oil prices in international markets

MOSCOW (MRC) -- The price of Brent crude oil, the world benchmark, has increased in 2022, partly as a result of Russia’s full-scale invasion of Ukraine. In addition, a strong U.S. dollar means that countries that use currencies other than the U.S. dollar pay more as crude oil prices increase, said Hydrocarbonprocessing.

Since June 1, 2021, the Brent crude oil price has increased by 59% in U.S. dollars and by 86% in euros. The U.S. dollar index measures the value of the U.S. dollar against six currencies: the euro, yen, British pound, Canadian dollar, Swiss franc, and Swedish krona. When the U.S. dollar index increases, it means the U.S. dollar is gaining value against those currencies. Conversely, it also means those other currencies are losing value against the U.S. dollar.

Crude oil is generally priced in U.S. dollars, so purchases in other currencies are not only affected by the dollar price of crude oil but also by the exchange rate to the dollar. The price of crude oil and the value of the dollar generally move in opposite directions so these factors offset each other. Recently, however, the price of Brent crude oil and the value of the U.S. dollar have both increased.

Recent increases in short-term U.S. treasury yields may be contributing to higher demand for U.S. government bonds, which increases demand for U.S. dollars and, therefore, the value of the U.S. dollar against other currencies.

The value of the U.S. dollar also increases when it is considered a safer investment compared with other currencies. Recent global events, including Russia’s full-scale invasion of Ukraine and concerns caused by COVID-19 mobility restrictions in China, may also be increasing demand for the U.S. dollar.

As per MRC, Oil prices were mixed on Monday as investor fears of a global recession spurred by lockdowns in China and weak economic data vied with signs the European Union was stepping closer to an import ban on Russian crude.
Brent crude was down 18 cents, or 0.2%, at USD111.37 a barrel at 1342 GMT, while U.S. West Texas Intermediate (WTI) crude rose 2 cents, or less than 0.1%, to USD110.51 a barrel. The fall in oil prices "is chiefly due to the weak Chinese economic data, as the lockdown measures are having a direct impact on the world’s second-largest market," said Barbara Lambrecht, energy analyst at Commerzbank.

As per MRC, Russian fuel oil arrivals in the UAE oil hub of Fujairah are set to jump sharply to about 2.5 MM barrels this month, data shows, in a sign that flows of Russian oil and refined products are shifting away from Europe.

We remind, oil prices fell on Monday as concerns over weak economic growth in China, the world's top oil importer, overshadowed fears supply might be crimped by a potential European Union ban on Russian crude.
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Singapore key exports continued to develop at a slower tempo in April

Singapore key exports continued to develop at a slower tempo in April

MOSCOW (MRC) -- The value of Singapore's non-oil domestic exports (NODX) rose 6.4% year over year in April, slower than the 7.7% expansion in March, as exports of electronic products fell on a monthly basis, said Businesstimes.

The pace of growth in April was almost in line with the market's consensus forecast, according to ING Bank economist Nicholas Mapa. The city-state's exports of electronic products rose 12.8% year over year in April, faster than the 11.5% expansion in March, driven by strong shipments of integrated circuits, IC parts and telecommunications equipment.

Non-electronic exports, meanwhile, rose 4.6% last month, retreating from the 6.8% jump in March. The sustained increase was driven by higher exports of specialized machinery, measuring instruments and structures of ships of boats.

The largest contributors to Singapore's NODX growth in April were Taiwan, Malaysia and the US. Exports to China, Hong Kong and South Korea declined. Singapore's overall foreign trade grew 21.8% in April from a year earlier, speeding up from the 17.6% expansion in March. Total exports, including oil, climbed 19.5%, while imports grew 24.4%.

On a month-over-month basis, Singapore's total trade rose 3.4%, weaker than the 4.2% rise between February and March. Exports edged up 3.3% on a seasonally adjusted basis in April, gaining speed from the 0.4% jump in March, while imports rose 3.4%, easing from the 8.6% jump the previous month.

ING's Mapa warned that NODX could moderate in the coming months "on China slump and slower global demand." Singapore's NODX to China slumped 10.6% year over year in April, reversing the 4.7% jump in March.

As per MRC, Singapore's chemicals cluster output fell by 2.7% year on year in February while overall manufacturing production was up by 17.6%. On a year-on-year basis, output in the specialties, petrochemicals and other chemicals segments contracted by 2.0%, 3.1% and 8.8%, respectively in February, the Economic Development Board (EDB) said in a statement.
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China index of export container transport down 6% MoM in April

China index of export container transport down 6% MoM in April

MOSCOW (MRC) -- The China Containerized Freight Index (CCFI), the index of export container transport, witnessed a decline of 6 per cent month on month (MoM) to reach 3,131.53 in April 2022, according to data released by the Shanghai Shipping Exchange, said Fibre2fashion.

The drop was led by the sub-reading for the Persian Gulf/Red Sea service that dropped by 15.8 per cent month on month in April, followed by the sub-reading of the South America service which decreased by 14.3 per cent compared to the previous month, said Chinese media reports quoting the data shared by the Shanghai Shipping Exchange.

Japan service’s sub-reading witnessed an increase of 6.3 per cent in April, compared to March. The index tracks contractual and spot freight rates for 12 international shipping routes from Chinese container ports. It is based on data from twenty-two international carriers. It was set at 1,000 in 1998.

As per MRC, oil prices were mixed as investor fears of a global recession spurred by lockdowns in China and weak economic data vied with signs the European Union was stepping closer to an import ban on Russian crude.
Brent crude was down 18 cents, or 0.2%, at USD111.37 a barrel at 1342 GMT, while U.S. West Texas Intermediate (WTI) crude rose 2 cents, or less than 0.1%, to USD110.51 a barrel. The fall in oil prices "is chiefly due to the weak Chinese economic data, as the lockdown measures are having a direct impact on the world’s second-largest market," said Barbara Lambrecht, energy analyst at Commerzbank.
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