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The Esso Fawley Oil Refinery, operated by Exxon Mobil, stands in Fawley, U.K., on Thursday, May 14, 2020.

Luke MacGregor | Bloomberg | Getty Images

The surprise output cut by OPEC and its allies sent oil prices rallying — and analysts say major oil importers like India, Japan and South Korea will feel the most pain if prices hit $100 per barrel, as some have predicted.

On Sunday, OPEC+ announced a production cut of 1.16 million barrels per day, in a move that oil markets were not expecting.

“It’s a tax on every oil importing economy,” said Pavel Molchanov, managing director of private investment bank Raymond James.

“It’s not the US that would feel the most pain from $100 oil, it would be the countries that have no domestic petroleum resources: Japan, India, Germany, France … to name some of the big examples,” Molchanov said.

The voluntary cuts by countries in the oil cartel are set to start in May and last till the end of 2023. Both Saudi Arabia and Russia will trim oil production by 500,000 barrels per day until the end of this year, while other OPEC members like Kuwait, Oman, Iraq, Algeria and Kazakhstan also reduce output.

Brent crude futures were last trading 0.57% higher at $85.41 a barrel, while the U.S. West Texas Intermediate futures stood 0.5% at $81.11 per barrel.

Countries heavily reliant on oil imports

“The regions most hit by the oil supply cut and related crude price jump are those with a high degree of import reliance and a high share of fossil fuels in their primary energy systems,” said director of Eurasia Group, Henning Gloystein. 

If oil goes up further, even the discounted Russian crude will start to hurt India’s growth.

Henning Gloystein

director, Eurasia Group

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“Although they’re still profiting from discounted Russian gas they are already hurting from high coal and gas prices,” Gloystein said.

“If oil goes up further, even the discounted Russian crude will start to hurt India’s growth.”

Japan

Oil is the most significant energy source in Japan, and accounts for around 40% of its total energy supply.

“Having no notable domestic production, Japan is heavily dependent on crude oil imports, with between 80% to 90% coming from the Middle East region,” the International Energy Agency said.

South Korea

Likewise for South Korea, oil makes up the main bulk of its energy needs, according to independent research company Enerdata.

“South Korea and Italy are more than 75% dependent on imported oil,” Molchanov pointed out. 

Europe and China are also “highly exposed,” according to Gloystein.

However, he added that China’s exposure was slightly less due to domestic oil production, while Europe as a whole relies mainly on nuclear, coal and natural gas rather than fossil fuel in their primary energy mix.

Impact on emerging economies

Some emerging markets that “do not have the foreign currency capability to support these fuel imports,” will be negatively impacted by the $100 price tag, said Molchanov. He named Argentina, Turkey, South Africa and Pakistan as potential economies that will be hit.

Sri Lanka, which does not produce oil domestically and is 100% dependent on imports, is also very susceptible to a harder hit, he said.

Cooling towers emiting vapor at the Leuna refinery and chemical industrial complex, home to refineries and plants operated by TotalEnergies in Leuna, Germany, on Tuesday, June 7, 2022.

Krisztian Bocsi | Bloomberg | Getty Images

“Countries with the least foreign currencies and who are importers will hurt the most because oil is priced in the U.S. dollar,” said founder of Energy Aspects, Amrita Sen, who added that the cost of imports will rise even further if the greenback appreciates.

$100 per barrel won’t be permanent

However, while $100 per barrel may be within the horizon, the higher price point may not stay for long, said Molchanov, adding that it’s not going to be “the permanent plateau.”

“In the long run, prices could be more kind of in line with where we are today” — in the region of about $80 to $90 or so, he said.

“Once crude hits $100 a barrel and stays there for a bit, that incentivizes producers to really ramp up output again,” said Gloystein.

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Enwin Utilities adds $1 million Terex electric bucket truck to fleet [video]

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Enwin Utilities adds $1 million Terex electric bucket truck to fleet [video]

The Windsor, Ontario utility says it’s driving towards a more sustainable future after adding a dozen new electric vehicles to its fleet – including a state-of-the-art, 55-foot Terex electric bucket truck.

Based on a Class 7 (33,000 lb. GVWR) International eMV Series BEV, the Terex EV takes the eMV’s 291 kWh battery and adds the Terex Optima 55-foot aerial device and HyPower SmartPTO system to create a fully electrified utility service vehicle that can do anything its diesel counterparts can do while offering better, safer working conditions for utility crews.

“We’ve got 12 EVs,” said Gary Rossi, president and CEO, Enwin Utilities. That number represents fully 10% of the utility’s entire vehicle fleet. “Our centerpiece is our electric 55-feet bucket truck. It’s very quiet,” continues Rossi. “So (the truck) allows us, our crews, to communicate better. It’s not as loud in the community when they’re doing repairs in someone’s backyard.”

That notion is echoed by Terex, itself. The company says its HyPower SmartPTO (power take off), which replaces a mechanical PTO, avoids a loud idling engine while reducing workers’ exposure to toxic exhaust fumes.

The utility company says the new electric bucket truck cost it almost $1 million Canadian – but while that might sound like a lot, Rossi says the price is similar to what a similarly-optioned ICE version of the bucket truck would cost.

“It’s all about building Windsor’s future and literally plugging into the battery factory down the road that is being constructed and showing that Windsor is a leader on this front,” says Drew Dilkens, Mayor of Windsor. “I don’t own an internal combustion engine vehicle,” adds Mayor Wilkins. “I only own two electric cars. My wife and I, we made the change starting in 2019 and I can’t see myself ever going back.”

CTV News Windsor

Enwin says its commitment to clean energy extends beyond its vehicle fleet. The company recently unveiled a massive MW solar rooftop net metering facility at its Rhodes Drive headquarters with over 3,000 solar panels. The site, one of Canada’s largest solar installations, generates enough clean electricity to power 300 homes annually.

SOURCE | IMAGES: Terex; Enwin via CTV News Windsor.

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Damen sets a world record for most powerful electric tugboat

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Damen sets a world record for most powerful electric tugboat

Built by Damen Shipyards and the first fully electric tugboat to be deployed in the Middle East, the new RSD-E Tug 2513 Bu Tinah put in its record-breaking performance took place at Khalifa Port during ADIPEC, the world’s largest energy conference.

The RSD-E Tug 2513 is based on the already efficient hull design of the standard, diesel-powered RSD Tug 2513, but its new, fully electric propulsion arrangement enables it to offer zero emissions operations in situations where oil or fuel leakage would be – let’s say especially bad.

But, while the “clean” aspect of all-electric operation is obvious, its Guinness World Record of performance shows that the Damen RSD-E Tug 2513 is up to whatever task its owners put to it.

“This Guinness World Record achievement demonstrates that the transition to alternative energy does not come at the cost of performance,” explains Maritime & Shipping Cluster, AD Ports Group, Captain Ammar Mubarak Al Shaiba. “We are very proud that the first electric tug in the Middle East is also making waves on a global level with this accolade and the fact that in parallel it is improving the sustainability of our operations alongside cost efficiencies in terms of overall fuel saving is extremely important. This vessel is now a key component of our Marine Services fleet and our electrification strategy.”

To earn its record, the the Damen RSD-E Tug 2513 Bu Tinah recorded an average high peak bollard pull of 78.2 tonnes (about 86 ‘Murican tons). The record-setting tugboat can undertake a minimum of two towage operation on a single charge, and can be recharged on a marine DC fast charger in just two hours.

Electrek’s Take

Electric tug achieves Guinness World Record
Damen RSD-E Tug; via Damen.

We’ve come a long way since 2021, when a 6MW electric tugboat was pulling about 50 tonnes of bollard weight. A nearly 50% jump in performance without a similar weight or mass gain is a sign of advancing technology – and we are here for it.

SOURCE | IMAGES: Damen.

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Trump picks Liberty Energy CEO and Oklo board member Chris Wright as Energy secretary

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Trump picks Liberty Energy CEO and Oklo board member Chris Wright as Energy secretary

US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC on November 13, 2024. 

Allison Robbert | AFP | Getty Images

President-elect Donald Trump on Saturday selected Liberty Energy CEO Chris Wright to serve as the next energy secretary of the United States.

Liberty Energy is an oilfield services company headquartered in Denver with a $2.7 billion market capitalization. The company’s stock gained nearly 9% on Nov. 6 after Trump won the U.S. presidential election, but its shares have since pulled back.

Wright serves on the board of Oklo, a nuclear power startup backed by OpenAI CEO Sam Altman that is developing micro reactors.

Wright will also serve on Trump’s Council of National Energy, the president-elect said Saturday. The council will be led by Trump’s pick for Interior Secretary, North Dakota Gov. Doug Burgum.

Wright has denied that climate change presents a global crisis that needs to be addressed through a transition away from fossil fuels.

“There is no climate crisis and we’re not in the midst of an energy transition either,” Wright said in a video posted on his LinkedIn page last year. “Humans and all complex life on earth is simply impossible without carbon dioxide. Hence the term carbon pollution is outrageous.”

“There is no such thing as clean energy or dirty energy,” Wright said. “All energy sources have impacts on the world both positive and negative.”

Trump described Wright as a “leading technologist and entrepreneur in the energy sector.”

“He has worked in Nuclear, Solar, Geothermal, and Oil and Gas,” the president-elect said in a statement Saturday.

“Most significantly, Chris was one of the pioneers who helped launch the American Shale Revolution that fueled American Energy Independence, and transformed the Global Energy Markets and Geopolitics,” Trump said.

Trump has vowed to increase fossil fuel production to reduce energy costs, though analysts and some oil executives have said the president has little influence on oil and natural gas output in the U.S.

The U.S. has produced more crude oil than any other country in history, including Russia and Saudi Arabia, since 2018, according to the Energy Information Administration.

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