Incident with multiple tankers in Gulf of Oman raises concerns in oil market

Published

3 years ago

August 3, 2021

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Iran’s President-elect Ebrahim Raisi attends a news conference in Tehran, Iran June 21, 2021.

Majid Asgaripour | WANA News Agency | Reuters

U.S. officials say they are still trying to determine exactly what’s happening, but numerous reports say there’s potentially one hijacked ship in the Gulf of Oman and the status of several others is unclear.

The situation occurred as tensions between the West and Iran have been rising, and as the U.S. and other world powers have been trying to reach a new deal with Iran over its nuclear program.

At a briefing, U.S. State Department spokesman Ned Price said “we are aware of the reports of a maritime incident in the Gulf of Oman. We are concerned. We are looking into it.”

Price said this was part of a disturbing pattern of belligerent behavior from Iran “including belligerents in the maritime domain.”

Price was referring to what military experts call a drone attack against a ship last week that killed a British crew member and a Romanian crew member aboard the ship Mercer Street.

Other U.S. officials say the situation is moving quickly, but it appears armed Iranian gunmen had boarded the seized tanker.

The incident has not moved oil prices, yet anyway. West Texas Intermediate crude futures for September settled down nearly 1% at $70.50 per barrel but they were off the lows of the day after the reports.

Lloyds List reported that the Panamanian flagged Asphalt Princess was the ship that was reportedly seized by armed men. The British navy earlier Tuesday had warned of a “potential hijack” in the Gulf of Oman, and the British military’s United Kingdom Maritime Trade Operations warned ship operators that “an incident is currently underway” off of Fujairah, according to news reports.

Tankers depicted in the Strait of Hormuz — a strategically important waterway which separates Iran, Oman and the United Arab Emirates.

ATTA KENARE | AFP | Getty Images

The Associated Press had reported that at least four ships off the coast of the United Arab Emirates broadcast warnings Tuesday that they had lost the control of their steering. The four vessels were identified as Queen Ematha, the Golden Brilliant, Jag Poofa and Abyss, according to the AP, citing MarineTraffic.com.

Helima Croft, a former CIA analyst who heads global commodities strategy for RBC, said the activity is alarming and it appears to have been some sort of action that involves the Islamic Revolutionary Guard. The IRGC is a powerful military force that Iran wields separately from the standard Iranian armed forces and it reports directly to the Ayatollah.

“It is alarming given the fact we had two fatalities on Friday,” she said. “You have to put it in the context of Iran continuing to make progress on the nuclear restart against the backdrop of a new hardline government coming to power in Tehran. It raises the risk of unintended escalation, or one side not appreciating the other’s red lines.”

This is all happening amid stalled nuclear talks between Iran and major international powers. At the same time, a new hardline president, Ebrahim Raisi, took over as of Tuesday. In the past several days he’s increased the rhetoric against the United States calling the U.S. “tyrannical.”

“We will not tie the economy to the will of foreigners,” Raisi said.

Croft said the best window for Washington to get a deal done with Iran has probably passed, now that a new government is in place.

“The fact we are now dealing with a different negotiating team in and of itself would signal the process would be more protracted,” she said. “If you add the maritime security incidents … that makes it a much bigger hill to climb to get back into the deal.”

Croft said Iran may be using a hardline stance to try to push Washington into a deal. “The Iranians may be calculating if you raise the temperature enough, Washington will fold because Washington does not want a military operation in the Middle East,” she said.

Croft said the market is singularly focused on the potential of a renewed economic slowdown and drop off in oil demand due to the breakout of the delta variant of Covid.

The escalation of tensions makes it less likely a deal will be struck soon, meaning Iran’s oil will not be back on the market. But if the tensions escalate and the activity disrupts the oil market that would impact prices.

“If we see real signs of a disruption in production or delivery the market will move very quickly,” she said.

Alireza Nader, a senior fellow at Foundation for Defense of Democracies, says the Iranian attacks on international shipping shows the policies of the Biden administration aren’t working.

“The U.S. obsession with keeping the nuclear agreement alive at all costs incentivizes the regime in Iran to take more aggressive actions against US interests without fear of punishment,” Nader said in an interview with CNBC Tuesday.

Despite an increase in tensions, Again Capital’s John Kilduff, who watches the oil market closely, said “there’s not enough here yet for me to be convinced, the market isn’t getting excited yet.”

Kilduff does believe however “the Islamic Revolutionary Guard is clearly ascendant and they have a lot of power to cause a lot of disruption.”

Environment

One of the US’s first solar peaker plants – with Tesla Megapacks – just came online

Published

3 hours ago

November 21, 2024

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One of the US’s first solar peaker plants – with Tesla Megapacks – just came online

Arevon Energy has kicked off operations at Vikings Solar-plus-Storage – one of the US’s first utility-scale solar peaker plants.

The $529 million project in Imperial County, California, near Holtville, features 157 megawatts of solar power paired with 150 megawatts/600 megawatt hours of battery storage.

Vikings Solar-plus-Storage is designed to take cheap daytime solar power and store it for use during more expensive peak demand times, like late afternoons and evenings. The battery storage system can quickly respond to changes in demand, helping tackle critical grid needs.

Vikings leverages provisions in the Inflation Reduction Act that support affordable clean energy, strengthen grid resilience, boost US manufacturing, and create good jobs.

The Vikings project has already brought significant benefits to the local area. It employed over 170 people during construction, many local workers, and boosted nearby businesses like restaurants, hotels, and stores. On top of that, Vikings will pay out more than $17 million to local governments over its lifespan.

“Vikings’ advanced design sets the standard for safe and reliable solar-plus-storage configurations,” said Arevon CEO Kevin Smith. “The project incorporates solar panels, trackers, and batteries that showcase the growing strength of US renewable energy manufacturing.”

The project includes Tesla Megapack battery systems made in California, First Solar’s thin-film solar panels, and smart solar trackers from Nextracker. San Diego-based SOLV Energy handled the engineering, procurement, and construction work.

San Diego Community Power (SDCP) will buy the energy from the Vikings project under a long-term deal, helping power nearly 1 million customer accounts. SDCP and Arevon have also signed an agreement for the 200 MW Avocet Energy Storage Project in Carson, California, which will start construction in early 2025.

Vikings is named after the Holtville High School mascot, and Arevon is giving back to the local community by funding scholarships for deserving Holtville High students.

Arevon is a major renewable energy developer across the US and a key player in California, with nearly 2,500 MW in operation and more than 1,250 MW under construction.

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Environment

BYD chases Ford and Toyota with its latest EV plant set to open in Cambodia

Published

4 hours ago

November 21, 2024

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BYD chases Ford and Toyota with its latest EV plant set to open in Cambodia

China’s EV giant BYD is aggressively expanding overseas. As it finalizes plans for yet another EV manufacturing plant, this time in Cambodia, BYD will set up shop next to newly opened Ford and Toyota facilities.

BYD’s impressive growth streak is not slowing down. In October, BYD sold over 500,000 new energy vehicles (NEVs), its fifth straight record sales month and the first time it has crossed the half-million mark in a single month.

With China’s auto market becoming flooded with low-cost competitors, BYD is looking to key overseas markets to drive growth.

After opening its first plant in Thailand earlier this year, a booming EV region, BYD plans to open up shop in another major Southeast Asian market.

According to Khmer Times, BYD is nearing a deal to establish a new EV manufacturing plant in Cambodia. Prime Minister Hun Manet said on Wednesday that the Council for the Development of Cambodia (CDC) is in the final stage of negotiations with BYD to build a new electric vehicle facility in the region.

“We may be aware that BYD is a giant Chinese company specialising in EV production, comparable to Tesla, the largest EV manufacturer in the United States,” Mr Hun Manet said at the event.

BYD closes in on deal for a new EV plant in Cambodia

BYD will follow Toyota, which opened an assembly plant in Cambodia in May, and Ford’s first assembly plant in the region, which opened in June 2022.

Cambodia’s prime minister stressed the importance of attracting new investments. With geopolitical tensions rising, many companies are looking to new locations.

Southeast Asia is expected to become a major electric vehicle hub. The Cambodian government unveiled plans earlier this year to raise automotive and electronics exports to over $2 billion while creating more than 22,000 new jobs.

BYD opening a new EV plant would be “excellent news” for Cambodia, Natharoun Ngo Son, Country Director of EnergyLab, told Khmer Times.

BYD-milestone-10-millionth-NEV — BYD Dolphin (left) and Atto 3 (right) Source: BYD

An EV manufacturing plant will “provide an excellent opportunity to reskill or upskill the Cambodian workforce” for new higher-paying jobs. EnergyLab is launching a new skills development program early next year to prepare the Cambodian workforce for the auto industry’s shift to EVs.

The news comes after BYD launched its first electric pickup, the Shark PHEV (BYD Shark 6), in Cambodia last month.

BYD-EV-plant-Cambodia-Shark — BYD launches Shark PHEV pickup in Cambodia (Source: BYD)

BYD is also planning to open EV plants in Mexico, Brazil, Pakistan, Hungary, and Turkey as it competes with Ford and Toyota in the global auto market.

Electrek’s Take

According to a recent Bloomberg report, BYD is quickly catching up to Ford in global deliveries. BYD outsold Ford in the third quarter by around 40,000 units.

While Ford is cutting more jobs in Europe as part of its restructuring, BYD has been on a major hiring spree as it ramps up production to meet the higher demand.

BYD is known for its low-cost EV models, like the Seagull, Dolphin, and Atto 3, but the Chinese auto giant is expanding into pickup trucks, midsize smart SUVs, and luxury EVs.

Ford is well aware of BYD’s rise in the global auto ranks. CEO Jim Farley has warned rivals in the past about losing significant revenue if they cannot keep up with China. Farley said he was shocked by the advanced tech he saw after a trip to China in early 2023.

Although Ford is shifting gears to focus on smaller, lower-cost EVs, it may be too little too late. Ford is developing what’s promised to be one of the most efficient EV platforms in California, but its first model based on it, a midsize electric pickup, isn’t due out until 2027.

Will BYD overtake Ford in the global auto ranks? Let us know what you think in the comments below.

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Environment

Researchers develop EV battery that charges 0-80% in 15 minutes

Published

4 hours ago

November 21, 2024

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Researchers develop EV battery that charges 0-80% in 15 minutes

EV battery charges 15 minutes — Photo: University of Waterloo

Researchers at Canada’s University of Waterloo have developed a new lithium-ion EV battery design that can charge from zero to 80% in just 15 minutes and has a longer lifespan.

The new design also allows batteries to handle up to 800 charging cycles, significantly increasing their lifespan.

Yverick Rangom, a professor in Waterloo’s Department of Chemical Engineering, said, “If we can make batteries smaller, charge faster, and last longer, we reduce the overall cost of the vehicle. That makes EVs a viable option for more people, including those who don’t have home charging stations or who live in apartments. It would also increase the value of second-hand EVs, making electric transportation more accessible.”

The secret sauce here is in the anode, which traditionally relies on graphite. The researchers designed a method to fuse graphite particles together to improve conductivity. This tweak enables lithium ions to move fast without causing typical degradation or safety hazards associated with fast charging.

What’s cool is that they didn’t reinvent the wheel in terms of materials; the team worked with the same lithium-ion components already used in EV batteries today.

“We’re just finding a better way to arrange the particles and providing new functions to the binders that hold them together such as state-of the-art electron, ion, and heat transfer properties,” explained Michael Pope, co-lead of the research and professor at Waterloo’s Ontario Battery and Electrochemistry Research Centre. “This approach ensures that the technology can be scalable and implemented using current production lines, offering a low-cost solution to battery manufacturers.”

The next step? The research team is optimizing the manufacturing process and putting prototypes to the test to gauge industry interest. The goal is to make sure this new battery design isn’t just effective – it has to be scalable and ready for widespread industry adoption.

“It’s crucial that it can be implemented within the existing infrastructure for both battery production and charging stations,” added Rangom, lead researcher for the Battery Workforce Challenge.

The University of Waterloo researchers’ findings are published in the journal Advanced Science.

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