Red Sea crisis could lead to global tanker shortage, Kuwait Petroleum CEO says

Published

2 years ago

March 20, 2024

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Kuwait Petroleum Corporation Deputy Chairman & CEO Shaikh Nawaf Al-Sabah speaks during the CERAWeek oil summit in Houston, Texas, on March 19, 2024.

Mark Felix | Afp | Getty Images

HOUSTON — The crisis in the Red Sea could lead to a shortage in the global tanker fleet if disruptions persist for another six months, the CEO of Kuwait Petroleum Corporation told CNBC.

Houthi militants have been striking commercial shipping in the Red Sea since November in support of Palestinians as Israel wages war in Gaza. The attacks have forced many container shipping and tanker companies to divert traffic around the Cape of Good Hope in southern Africa, adding time and cost.

“One of the things I think we may be concerned about is if this continues for another six months, that we will not have perhaps the tanker fleet available to continue to go around,” Shaikh Nawaf al-Sabah said of the global fleet during an interview at the CERAWeek by S&P Global energy conference.

Oil Prices, Energy News and Analysis

KPC has diverted a substantial amount of production around the Cape during the crisis, al-Sabah said, declining to provide specific numbers. The company is continuing to ship through the Red Sea and is making decisions on which route ships should take on a daily basis, he said.

“We maintain a strategic tanker tanker fleet for these types of reasons,” al-Sabah said. “We’re comfortable that we can supply our customers in the quantities that are required on time without issue, but I don’t know how many other producers have that strategic vision.”

Al-Sabah does not see a risk of Middle East tensions leading to a conflict that could disrupt crude supplies in the wider region. The Persian Gulf has faced numerous wars but the only time Kuwait has been unable to ship was during Iraq dictator Saddam Hussein’s invasion of the country in 1990, he said.

“I don’t see a supply fear,” the CEO said. “I am confident that the industry and the system is well equipped to handle potential supply crises that might happen.”

Chevron CEO Michael Wirth, however, said the security situation in the Middle East is “tenuous” and “could pivot on a dime.” Wirth told CNBC that Chevron is “not moving ships to the Red Sea.”

“Today the conflict in Israel and Gaza goes on, a resolution does not seem to be at hand and the regional risks continue to be high,” Wirth told CNBC’s Brian Sullivan at CERAWeek

China demand, U.S. production

Crude oil futures have risen this year, but have struggled to break out amid uncertainty over the health of China’s economy and the strength of U.S. crude production. Last year, fears that demand was slowing in China as U.S. production hit a record 13.3 million barrels per day weighed on prices.

Al-Sabah said he is not worried about crude demand in the world’s second-largest economy.

“I visit our partners in China frequently and the feedback I have from them has always been if you have additional supplies, we are willing to take it,” Al-Sabah said. “The demand has increased steadily in China and it’s been solid.”

ConocoPhillips CEO Ryan Lance said in remarks at CERAWeek that U.S. crude production growth will slow to 300,000 to 400,000 barrels per day this year, from 1 million barrels last year. Total U.S. production will eventually exceed 14 million barrels per day at some point this decade and then plateau, Lance said.

As crude prices fell last year, OPEC and its allies agreed to cut production by 2.2 million barrels per day to support the market. Those cuts will remain in place through at least the second quarter of this year.

Al-Sabah said he does not see U.S. production as a challenge to KPC’s market share as OPEC holds barrels off the market. KPC plans to increase its production capacity to 4 million bpd by 2035 from 3 million bpd today.

“Looking into the second half [this year], I see more opportunities for upside in terms of demand than I do for downside,” Al-Sabah said. “We will continue to be supplying into a market to maintain balance and stability.”

Environment

Trump admin OKs $1B loan for Three Mile Island nuclear reboot

Published

3 hours ago

November 18, 2025

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Three Mile Island loan — By Constellation Energy – CC BY-SA 4.0

The US Department of Energy’s Loan Programs Office (LPO) closed a $1 billion loan to restart Three Mile Island Unit 1, a nuclear reactor at Three Mile Island in Londonderry Township, Pennsylvania.

The money is being loaned to Constellation Energy Generation, which is renaming the 835 megawatt (MW) Three Mile Island Unit 1 the Crane Clean Energy Center. Constellation said in September 2024 that it would restart the reactor under a power purchase agreement with Microsoft, which needs more clean power to feed its growing data-center demand.

The project is estimated to cost around $1.6 billion, and the DOE says the project will create around 600 jobs. The reactor is expected to start generating power again in 2027.

Three Mile Island Unit 1 (in the foreground in the photo above) went offline in 2019 because it could no longer compete with cheaper natural gas, but it wasn’t decommissioned. It’s capable of powering the equivalent of approximately 800,000 homes. It’s on the same site as the Unit 2 reactor (in the background in the photo above) that went into partial nuclear meltdown in 1979, and is known as the worst commercial nuclear accident in US history.

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When asked about the loan’s timing, Greg Beard, senior adviser to the Loan Programs Office, told reporters on a call that it would “lower the cost of capital and make power cheaper for those PJM [Pennsylvania-New Jersey-Maryland] ratepayers.” Data centers are driving up electricity costs for consumers.

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Environment

Ford opens orders for the electric Bronco in China, starting at under $33,000

Published

4 hours ago

November 18, 2025

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Ford opens orders for the electric Bronco in China, starting at under ,000

An affordable Bronco EV? Not for those in the US. Ford opened orders for the electric Bronco in China, starting at under $33,000.

Ford Bronco electric pre-orders open at under $33,000

Ford announced the All-Wheel Drive electric SUV is officially open for pre-sale on Tuesday, starting at RMB 229,800 ($32,300).

The electric Bronco is available in pure electric (EV) and extended range electric vehicle (EREV) options. It’s offered in three variants, priced from RMB 229,800 ($32,300) to RMB 272,800 ($38,400).

All models are All Wheel Drive, while the pure electric version costs an extra 10,000 yuan ($1,400). Ford is offering pre-sale buyers some pretty sweet benefits, including a camping experience package (with an added roof tent), a Mountain Kitchen Multi-Function Tailgate gift, an overnight stay package (for your vehicle), and more.

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The electric Ford Bronco is about the same size as the standard 4-door version sold in the US at 5,025 mm long, 1,960 mm wide, and 1,815 mm tall.

Although it may look the same, the EV version draws power from a 105.4 kWh LFP battery pack from BYD’s FinFreams, providing up to 650 km (404 miles) CLTC driving range.

It’s equipped with two electric motors, one in the front and the other in the rear, producing a combined 445 horsepower (332 kW).

The EREV version combines a 43.7 kWh battery with a 1.5T engine, delivering a pure-electric range of 220 km (137 miles) and a combined CLTC driving range of 1,220 km (758 miles).

Some of the higher trims feature Ford’s Fuyu ADAS system, developed exclusively for buyers in China with a roof-mounted LiDAR and over 30 sensors and cameras. It even features a cool “off-road logbook” that shows drivers over 20 popular routes across China.

The interior is custom-tailored for Chinese buyers with a 15.6″ central infotainment and a smaller driver display screen. It also offers a massive 70″ AR head-up display (HUD).

Unlike the Ford vehicles we’re accustomed to seeing, the electric Bronco includes a 7.5L refrigerator in the center console.

The AWD electric SUV is coming at a critical time as Ford aims to revamp its business in China. Ford is working with local partners on new technologies, designs, and powertrain ideas for global markets.

Ford’s sales in China are down by over 14% through October this year, but new electrified vehicles, including the Bronco, are expected to help turn things around. Ford’s lineup in China mainly consists of gas-powered vehicles, which have quickly fallen out of favor with buyers shifting to more advanced, more efficient, and often lower-priced domestic EVs.

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Environment

Trump administration backs Three Mile Island nuclear restart with $1 billion loan to Constellation

Published

5 hours ago

November 18, 2025

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The cooling towers of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

The Trump administration will provide Constellation Energy with a $1 billion loan to restart the Crane Clean Energy Center nuclear plant in Pennsylvania, Department of Energy officials said Tuesday.

Previously known as Three Mile Island Unit 1, the plant is expected to start generating power again in 2027. Constellation unveiled plans to rename and restart the reactor in Sept. 2024 through a power purchase agreement with Microsoft to support the tech company’s data center demand in the region.

Three Mile Island Unit 1 ceased operations in 2019, one of a dozen reactors that closed in recent years as nuclear struggled to compete against cheap natural gas. It sits on the same site as Three Mile Island Unit 2, the reactor that partially melted down in 1979 in the worst nuclear accident in U.S. history.

The loan would cover the majority to the project’s estimated cost of $1.6 billion. The first advance to Constellation is expected in the first quarter of 2026, said Greg Beard, senior advisor to the Energy Department’s Loan Programs Office, in a call with reporters. The loan comes with a guarantee from Constellation that it will protect taxpayer money, Beard said.

Constellation’s stock was up more than 2% in after hours trading on Tuesday.

The control panel in the main control room of the Three Mile Island Nuclear power plant is seen on Oct. 30, 2024 in Middletown, Pennsylvania, U.S.

Danielle DeVries | CNBC

CEO Joe Dominguez hinted at federal financial support previously, telling investors in Sept. 2024 that Constellation would “take a look as we finance the project at loan guarantees and other things that will be available.” Constellation is the largest operator of nuclear plants in the U.S.

When asked why Constellation was receiving the loan now, Beard said Tuesday that Constellation could have completed the project without help from the Energy Department. But the loan will help make electricity cheaper for consumers on the grid operated by PJM Interconnection, which serves more than 65 million people across 13 states, Beard said.

“What’s important for the administration is to show support for affordable, reliable, secure energy in the U.S.,” Beard told reporters. “This loan to Constellation will lower the cost of capital and make power cheaper for those PJM ratepayers.”

Electricity prices

Energy Secretary Chris Wright said last week that his department’s loan office would use most of its money to support the nuclear industry. President Donald Trump signed four executive orders in May that aim to significantly expand new nuclear capacity.

Consumers in many states in the PJM region are facing significant electricity price increases as the rapid increase in demand from artificial intelligence data centers outstrips available supply.

“We want to bring as much net addition of dispatchable, reliable electricity onto the grid to stop these price rises in electricity,” Wright told reporters on Tuesday.

The turbine deck of the Three Mile Island Nuclear power plant is seen on Oct. 30, 2024 in Middletown, Pennsylvania, U.S.

Danielle DeVries | CNBC

The Crane Clean Energy Center is one of three shuttered nuclear plants in the U.S. that are aiming to start generating power again this decade subject to approval by the Nuclear Regulatory Commission. Crane had the capacity to power more than 800,000 homes when it closed in 2019, according to Constellation.

The Energy Department is supporting the restart of the Palisades nuclear plant in Michigan with a $1.5 billion loan to Holtec International. NextEra Energy announced in October plans to restart the Duane Arnold nuclear plant in Iowa through an agreement Alphabet‘s Google Unit.

When asked whether NextEra will receive a loan for Duane Arnold, Beard told CNBC that Trump’s executive orders direct the Energy Department to “prioritize the restart of nuclear reactors.”