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OPEC Secretary General Mohammed Sanusi Barkindo (L), Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman (C) and Russian Energy Minister Alexander Novak (R) attend an Opec-JMMC meeting in the UAE capital Abu Dhabi on September 12, 2019.
KARIM SAHIB | AFP via Getty Images

LONDON — Oil producer group OPEC has been plunged into crisis, with bitter infighting between Saudi Arabia and the United Arab Emirates raising questions about the future of the energy alliance.

OPEC and non-OPEC partners, a group of some of the world’s most powerful oil producers, abruptly abandoned plans to reconvene on Monday after last week’s meetings unexpectedly failed to broker a deal on oil production policy. The group did not set a new date to resume talks.

It means no agreement has been reached on a possible increase in crude production beyond the end of July, leaving oil markets in a state of limbo just as global fuel demand recovers from the ongoing coronavirus pandemic.

“OPEC+ has been thrown its most serious crisis since last year’s ill-fated price war between Saudi Arabia and Russia,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a research note.

“Back-channel talks reportedly are continuing, but questions about UAE’s commitment to remaining in OPEC will likely grow in the coming days.”

The UAE-Saudi dispute appeared to be about more than oil policy, Croft said, with Abu Dhabi “seemingly intent on stepping outside Saudi Arabia’s shadow and charting its own course in global affairs.”

The pandemic held them together and now the post pandemic is breaking them apart.
John Kilduff
Founding partner at Again Capital

OPEC+, which is dominated by Middle East crude producers, agreed to implement massive crude production cuts in 2020 in an effort to support oil prices when the coronavirus pandemic coincided with a historic fuel demand shock.

Led by Saudi Arabia, a close ally of the UAE, OPEC+ has met monthly to decide on production policy.

OPEC solidarity ‘dissolved’

The disarray comes after OPEC+ on Friday voted on a proposal to increase oil production by roughly 2 million barrels per day between August and the end of the year in 400,000 barrels per day monthly installments. It also proposed to extend the remaining output cuts to the end of 2022.

The plans were rejected by the UAE, however, which wants a higher baseline to its quota to allow for more domestic production.

“No agreement was reached and as we stand now the OPEC+ alliance, if it is still the right word to describe the group, will produce at the July level for the rest of the year,” Tamas Varga, oil analyst at PVM Oil Associates, said in a research note.

“The [non-] outcome of the meeting re-writes the supply-demand landscape for the near and potentially for the distant future,” he added.

The rare public stand-off between the UAE and Saudi Arabia saw energy ministers from both countries engaging in a media blitz over the weekend to outline their respective positions.

“For us, it wasn’t a good deal,” UAE Minister of Energy and Infrastructure Suhail Al Mazrouei told CNBC’s Hadley Gamble on Sunday. He added that while the country was willing to support a short-term increase in oil supply, it wants better terms through 2022.

Speaking to the Saudi-owned Al Arabiya television channel on Sunday, Saudi Arabia’s Energy Minister Abdulaziz bin Salman called for “compromise and rationality” in order to reach a deal on Monday, Reuters reported.

Separately, a White House spokesperson reportedly said on Monday that President Joe Biden’s administration was pushing for a “compromise solution.” The U.S. is not a member of OPEC (which stands for the Organization of Petroleum Exporting Countries) but it has been closely monitoring the latest round of talks given their potential impact on crude markets into next year.

The OPEC logo pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria.
Ramzi Boudina | Reuters

Responding to the news that the OPEC+ meeting had been adjourned without a deal on Monday, John Kilduff, a founding partner at Again Capital, said: “The Opec solidarity dissolved today.”

“The pandemic held them together and now the post pandemic is breaking them apart. The UAE is sticking to their guns on wanting their baseline raised. They want to be able to produce more,” he told CNBC via email.

“Now the fun starts as to who breaks away,” Kilduff said, noting the UAE could be the “first domino” to fall.

OPEC was not immediately available to respond to a request for comment when contacted by CNBC on Tuesday.

Oil prices climb to multi-year highs

The news pushed oil prices to their highest level in nearly three years. International benchmark Brent crude futures traded at $77.65 a barrel on Tuesday morning, up 0.6% for the session, while U.S. West Texas Intermediate futures stood at $76.62, around 2% higher.

Oil prices rallied more than 45% in the first half of the year, supported by the rollout of Covid-19 vaccines, a gradual easing of lockdown measures and massive production cuts from OPEC+.

Samuel Burman, assistant commodities economist at Capital Economics, said OPEC producers were likely to increase oil production above quota next month as member states “seek to take advantage” of higher oil prices.

In addition to a rift between the UAE and Saudi Arabia, he said Abu Dhabi was probably “somewhat irritated” that Russia hadn’t been complying with OPEC’s production quotas.

Burman said non-OPEC leader Russia hadn’t introduced any compensatory cuts at all and was currently overproducing by around 100,000 barrels per day. “We think that this spat involving the UAE increases the chances that the entire agreement falls apart which would clearly pose a downside risk to our near-term price forecasts.”

— CNBC’s Patti Domm contributed to this report.

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US Gov’t set to spend $46 million to electrify container ports

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US Gov't set to spend  million to electrify container ports

Multi-million-dollar grants adding up to more than $46 million from the US Federal Highway Administration (FHWA) will help support electrification efforts at several American ports.

The Long Beach Container Terminal (LBCT) in Long Beach, California has received a $34.9 million grant from the FHWA to replace 155 on-site commercial trucks and buses with zero-emission vehicles (ZEV). The grant will fund both the purchase of new electric trucks and the necessary charging infrastructure to support them.

LBCT said the grant dollars will allow it to continue its multi-billion dollar investments in more sustainable logistical operations. “Our vehicle electrification project, coupled with previous investments, enables LBCT to achieve a unique status that is reframing the way the world views sustainable goods movement, enhancing community quality of life and climate change,” said Anthony Otto, CEO of LBCT.

Real progress at Port of Long Beach

Long Beach Container Terminal, photo by LBCT.

Back in 2018, Power Progress reported that the Port of Long Beach had plans to install zero-emissions cranes and cargo handling equipment at its terminals. True to its word, the port has invested more than $2.5 billion to convert its cranes and terminal tractors vehicles to electric equipment. It’s a project that LBCT says has led to an 86 percent (!) reduction in harmful carbon emissions.

“This investment is a huge win for clean air, electrification and the region,” said US House Rep. Robert Garcia. “These federal dollars will make our port cleaner, safer and help us meet our climate goals.”

In a separate announcement, charging infrastructure operator Voltera said that its sites in California and Georgia would receive $11.4 million of the FHWA funding.

Electrek’s Take

No matter what you call it… …yard dog, yard truck, terminal truck, hostler, spotter, shunt truck, yard horse, goat, mule … …Orange EV pure electric trucks deliver.
e-Triever terminal tractor; via Orange EV.

Container ports used to be some of the dirtiest, most heavily polluted areas in the world. That was bad for everyone – but it was especially bad for the people who lived and worked near them. That’s why any positive change is good. Beyond just “positive change,” however, ports today seem to be leading the way when it comes to electric vehicle and hydrogen adoption.

How things change!

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Kramer shows off electric wheel loader and telehandler at Intermat

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Kramer shows off electric wheel loader and telehandler at Intermat

German equipment manufacturer Kramer showed off a pair of zero-emission equipment options at the Paris Intermat show last week – the 5065e electric wheel loader and 1445e electric telehandler.

Kramer says the quiet operation of its new electric wheel loader and telehandler are ideal for noise-sensitive areas such as city centers, cemeteries and golf courses, hotels, and suburban parks and recreation areas, where it can operate without emitting harmful diesel particulate matter and other forms of air pollution.

Kramer-Werke GmbH is serious about promoting its new EVs in the French market. “That’s why Intermat is an important platform for us,” explains Christian Stryffeler, Kramer’s Managing Director. “We are also looking forward to showcasing our new generation of (electric) wheel loaders and telescopic wheel loaders here.”

Kramer 5065e wheel loader

The 5065e loader is powered a 37.5 kWh, 96V lithium-ion battery that’s good for up to four hours of continuous operation – which is a lot more than it sounds, considering idle time in an EV doesn’t drain batteries the way idling a diesel drains fuel. A 23 kW (30 hp) electric motor drives the electric wheel loader around the job site, while a 25 kW (approx. 35 hp) motor powers the machine’s 40 liters hydraulic system.

Kramer says the battery on its electric loader can be fully charged in just 5.1 hours using a “Type 2 Wallbox” (that’s an L2 charger to you and me). Max payload is 1750 kg, with a 2800 kg tipping load. Top speed is 20 km/h (approx. 12.5 mph).

Kramer 1445e telehandler

The 1445e telehandler uses a 96V battery architecture that’s similar to the one in the wheel loader, but in a smaller 18 kWh or 28 kWh pack. This enables a fleet manager to right-size their equipment’s batteries to provide four hours of run time in different types of work environments. And, also like the wheel loader, a 23 kW (30 hp) electric motor provides the drive while a 25 kW (approx. 35 hp) powers the hydraulics.

Level 2 charging comes standard on Kramer’s electric telehandler, enabling a full charge of the larger, 28 kWh battery in about five hours. Max payload is 1450 kg.

Electrek’s Take

Kramer 5056e electric wheel loader; image via Kramer.

It’s always good to see more manufacturers pushing out electric equipment options. It’s still the “wild west” out there, even more so than in automotive, and Kramer’s offerings seem to be a step behind in some ways (no DCFC capability) and ahead in others (96V where others are 48V), so it’s hard to know where they stand.

More than anything, the lesson seems to be that fleet managers need to choose wisely when they choose to electrify – and work closely with the dealers and OEMs to ensure that they’re buying the right tool for the right job.

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Watch this autonomous excavator build a 215 foot retaining wall [video]

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Watch this autonomous excavator build a 215 foot retaining wall [video]

The robotics experts at ETH Zurich have developed an autonomous excavator that uses advanced AI to help it complete high-skill tasks without a human operator.

Dry stone wall construction typically involves huge amounts of operator labor. Doing it right requires not just hours of labor, but hours of skilled, experienced labor. At least, it used to. If the crew at ETH is successful, building stone retaining walls will soon become a “set it and forget it” task for robots to complete. Robots like their HEAP excavator.

HEAP (Hydraulic Excavator for an Autonomous Purpose) is a customized Menzi Muck M545 developed for autonomous operation that uses electrically-driven hydraulics to operate an advanced boom arm equipped with draw wire encoders, LiDAR, Leica iCON site-mapping, and a Rototilt “wrist” on the end that makes it look more like a high-precision robotic arm than a traditional heavy equipment asset.

ETH HEAP tech stack

Image via ETH Zürich.

Which makes sense. After all: the ETH guys are roboticists, not skilled heavy equipment operators. So, how does their robot do against skilled operators?

“We are currently outperformed by human excavator operators in placement speed,” ETH researchers wrote in Science Robotics. “Such operators, however, typically require string and paint references with which to register their construction and often a second or third person outside the machine to provide guidance and to insert small supporting stones, gravel, and soil by hand and shovel. In contrast, our process can build complex nonplanar global surface geometries without physical reference markers, does not require a skilled driver or small supporting stones, and provides a full digital twin of the built structure for better accountability and future reuse.”

Translation: the robot is slower, but it gets the job done.

You can watch the ETH HEAP put all its onboard tech to work building a 215 foot long, 20 foot high retaining wall all on its own in the video, below.

Autonomous excavator constructs dry stone wall

The completed project can be seen at Circularity Park in Oberglatt, Switzerland, and illustrates the potential for autonomous equipment to build with irregularly-shaped materials. And with skilled operators in short supply everywhere, the potential to free up operators so they can go where they’re really needed.

Electrek’s Take

ETH Zürich’s robot excavator has been in development for years, with numerous white papers exploring its potential uses in construction and agriculture published on the company’s site. It’s quite a rabbit hole, as internet deep-dives go, and I highly recommend it.

That said, the electrically driven hydraulics and high-precision Rototilt wrist on the end of the boom arm’s “claw” alone make this futuristic excavator worth some attention. As more and more manufacturers switch to full electric or even “just” electric drive, research into better solutions for existing hydraulic equipment and expertise could lead to big market wins.

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