Cepsa increases the use of recycled plastics in its lubricant containers to 70%

Cepsa has announced that it will increase to 70% the use of recycled plastics in the manufacture of its lubricant containers and to 100% in the case of labels for these containers, said the company.

Through these actions, the company will avoid the consumption of 350 tonnes of virgin plastics, which will also lead to a reduction of 430 tonnes/y of CO2 emissions. The company, in addition to having made modifications to the composition of its 1-, 4- and 5-L containers, which are recycled in the yellow container, will soon be replacing the current 20-L plastic drums with metal ones.

In addition, the smaller containers will begin to be used in the new lubricant manufacturing and packaging line in San Roque, Spain, which also represents an improvement in terms of efficiency and reduced energy consumption, demonstrating Cepsa's growing commitment to sustainability.

This action represents a new step forward for Cepsa, which is once again a pioneer within its sector after having begun using packaging with 30% recycled plastics in 2018, thus becoming one of the first energy companies to implement this measure.

We remind, Cepsa plans to nearly double its investments over the next three years to a total of 3.6 B euros (USD3.82 B), with more than half of that amount going to sustainable energy and mobility. It also posted a full-year net profit at current cost of supplies (CCS) of 790 MM euros for 2022, up sharply from the 310 MM euros reported in 2021. The planned investment increase of 93% for 2023-25 is from the previous three years, Cepsa said.

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U.S. field production of crude oil fell in April to 12.615 million bpd, its lowest since February, the U.S. Energy Information Administration said on Friday, said Hydrocarbonprocessing.

U.S. product supplied of crude and petroleum products - a proxy for demand - fell slightly to 20.446 million bpd, EIA data showed. Product supplied of finished motor gasoline fell to 8.996 million bpd in April from 9.007 million bpd in March.

Demand for distillates also slowed in April, with products supplied down to 3.9 million bpd, the lowest reading since December. Jet fuel demand rose, however, to 1.615 million bpd in April, its highest since August. Crude oil output declines were led by Gulf of Mexico (GOM) producers, who produced 7.4% lesser oil in April to 1.734 million bpd in April from the Federal offshore GOM region.

Field output in Texas, the top U.S. oil producing state, fell marginally to 5.398 million bpd in April. Gross natural gas production in the U.S. Lower 48 states rose 0.1 billion cubic feet per day (bcfd) to a record 113.9 bcfd in April, according to the EIA's monthly 914 production report. That topped the prior all-time high of 113.8 bcfd in March 2023.

In top gas-producing states, monthly output in April eased 0.3% to 20.7 bcfd in Pennsylvania and rose 0.3% to a record 33.2 bcfd in Texas. That topped the prior all-time high of 33.1 bcfd in Texas in March 2023 and compares with a record 21.8 bcfd in Pennsylvania in December 2021.

We remind, Russia's energy ministry said it sees no shortage of gasoline in the domestic market, with companies having cut their exports and increased production after gradually completing planned maintenance work. The ministry also said some refineries have not yet completed repairs, and oil companies are following government recommendations to systematically reduce exports. As a result, in June, gasoline exports fell 30% from May. The ministry continues to recommend that companies adhere to the policy to curb exports.

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Oil prices rose above USD75 a barrel on Friday but were on course for a fourth consecutive quarter of losses amid concerns over sluggish global economic activity and fuel demand, said Hydrocarbonprocessing.

Benchmark Brent crude futures for September delivery were up 82 cents, or 1.1%, at USD75.33 a barrel by 1310 GMT. The less-traded front-month contract, which expires on Friday, was up 52 cents at USD74.86. The contract was on track for a 6% decline in the three months to the end of June, marking a fourth straight quarterly decline.

U.S. West Texas Intermediate crude (WTI) was up 86 cents or 1.2% to USD70.72. The contract is down 6.5% on a quarterly basis, its second consecutive quarterly drop. Inflationary pressure and rising interest rates in key economies and a slower than expected recovery in Chinese manufacturing and consumption have weighed on markets in recent months.

But signs of strengthening U.S. economic activity and sharp declines in U.S. oil inventories last week offered support. Saudi Arabia's plans to cut output by a further 1 million barrels per day in July in addition to a broader OPEC+ deal to limit supply into 2024 offers further support.

"Despite the announcements of two fresh rounds of cuts from OPEC+/Saudi Arabia, crude prices have largely remained below $80 a barrel as the market has been driven less by fundamentals and more by macroeconomic concerns," HSBC analysts said in a note.

"We think this will continue to be the case for part of the summer, although the deep deficit of around 2.3 million barrels forecast for 2H23 should help to spur some upwards price momentum." A Reuters survey of 37 economists and analysts showed oil prices will struggle for traction this year as global economic headwinds linger. U.S. oil rig count data, an indicator of future supply, will be released later on Friday.

We remind, Oil prices steadied on Thursday, a day after rising sharply on a bigger-than-expected fall in U.S. inventories, as attention shifted back to rising interest rates denting global economic growth. Brent crude futures was up 10 cents, or 0.1%, to USD74.13 a barrel by 1032 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 11 cents, or 0.2%, to USD69.67 a barrel.

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OPEC oil output has fallen only slightly in June as increases in Iraq and Nigeria limited the impact of cutbacks by others, despite a wider OPEC+ deal and voluntary cuts by several members to support the market, said Reuters.

The Organization of the Petroleum Exporting Countries has pumped 28.18 million barrels per day (bpd) this month, the survey found, down 50,000 bpd from May's revised figure. In May, output dropped by 240,000 bpd as the latest cut took effect.

The survey suggests little further progress by OPEC in limiting supply ahead of a further voluntary reduction by Saudi Arabia which takes effect in July, as part of the producers' latest agreement made in June to support the market.

Several members of OPEC+, which includes OPEC and allies such as Russia, had in April pledged voluntary cuts on top of those made in late 2022 as the economic outlook worsened. For May, six OPEC members agreed to cut output by a further 1.04 million bpd, adding to about 1.27 million bpd of reductions already in place. These curbs remain in place for June.

Month on month, production in June among the OPEC nations that are required to limit output fell by 10,000 bpd, the survey found, as the increases in Iraq and Nigeria limited the impact of cuts by other members. OPEC's output is still undershooting the targeted amount by almost 1 million bpd partly because Nigeria and Angola lack the capacity to pump as much as their agreed level. OPEC is hosting a conference next week in Vienna expected to be attended by prominent oil ministers and CEOs.

We remind, oil prices steadied on Thursday, a day after rising sharply on a bigger-than-expected fall in U.S. inventories, as attention shifted back to rising interest rates denting global economic growth. Brent crude futures was up 10 cents, or 0.1%, to USD74.13 a barrel by 1032 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 11 cents, or 0.2%, to USD69.67 a barrel.

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Solvay, a leading global supplier of specialty materials, has announced that it will attend Semicon China 2023 at Shanghai New International Expo Centre from June 29 to July 1, said the company.

Exhibiting at Booth E7249, the company will present a complete array of advanced polymers and chemicals designed to push the limits of chip performance with outstanding purity, long-lasting chemical stability and optimized resistance to high temperatures and plasma.

With extensive technical industry expertise and a broad product portfolio, Solvay is a leading supplier of specialty polymers and chemicals for the semiconductor industry across all stages of manufacturing from FEOL (front-end-of-line) to BEOL (back-end-of-line), including duct coating, filtration, piping and tubing, wafer handling, lithography, as well as testing and packaging.

Solvay’s specialty polymers and chemicals for the semiconductors industry have proven their superior resistance to the harsh conditions of cutting-edge semiconductor processes needed for innovative semiconductor node designs. These materials can be found in nearly every processing step, including cleaning, chemical vapor deposition (CVD), dry and wet etching and chemical mechanical polishing (CMP). Polymer offerings span from polysulfones and semi-crystalline specialties to fluoroelastomers, all engineered to provide superior cleanliness and purity, excellent chemical stability and high heat tolerance in combination with long-term reliability and efficiency in advanced semiconductor applications. This is complemented by a wide range of high-purity, high-quality and consistent semiconductor process chemicals used primarily in the cleaning and etching stages of semiconductor chip production.

We remind, Solvay Specialty Polymers USA, LLC, a subsidiary of Solvay S.A. (Solvay) and the New Jersey Department of Environmental Protection (NJDEP) announced an agreement resolving certain PFAS related claims in New Jersey. Under the terms of the agreement, Solvay will pay USD75 million to NJDEP for Natural Resource Damages (NRDs) and USD100 million to fund NJDEP PFAS remediation projects in areas of New Jersey near the company’s West Deptford site.

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