Global energy transition, IP Week preview, IMO 2020: The week in energy and commodities

The global energy transition is well underway, but it was a week of mixed signals in the drive for decarbonization. In Europe, additions of wind power capacity in 2018 fell to their lowest level since 2011 and the outlook for investment is uncertain, sector association WindEurope said.

Meanwhile, the EU struck an informal deal to enforce lower emissions from heavy goods vehicles. The rules would see new HGVs emit an average of 15% less CO2 by 2025 and 30% less by 2030 compared with 2019.

Glencore was the latest commodities company to pitch its environmental commitments, as investor pressure on corporates mounts. The mining giant announced its intention to cap coal output by 2020 and focus on “commodities essential to the energy and mobility transition,” such as copper, cobalt and nickel.

Despite widespread bullish views on EVs and commodities that are expected to power the transport revolution, S&P Global Ratings sounded a cautious note. In a report Friday, the company stressed that government policies and battery technologies will be major factors in the rate of growth.

IP WEEK

As the industry flocks to London for IP Week 2019, Platts editors discuss the big oil topics that will be in the spotlight at the event.

GRAPHIC OF THE WEEK

US marks one year of VLCC oil exports from LOOP as new ports line up

OIL

Saudi Arabia seeks stronger commitment from Nigeria on OPEC oil cuts

Saudi Arabia has demanded greater adherence to oil production cuts by Nigeria in a bid to balance global oil markets and shore up prices, a Nigerian government statement said Wednesday.

GAS

EU envoys endorse draft rules for Russia's Nord Stream 2 gas link: source

EU ambassadors have endorsed an informal accord on new rules for operating offshore natural gas links like Russia's planned 55 Bcm/year Nord Stream 2 link to Germany, an EU diplomatic source said Thursday.

SHIPPING

Interview: About 8% of bunkers consumed in 2020 likely to be scrubbed: MECL MD

Despite recent announcements by some ports on banning wash water discharge from open-loop scrubbers in their waters, about 8% of total bunkers consumed in 2020 will be scrubbed to meet compliance with the International Maritime Organization's global sulfur limit rule for marine fuels, according to Robin Meech, MD at Marine and Energy Consulting Limited.

THE LAST WORD

"The importation of motor vehicle parts is not a risk to our national security, and not a single company in the domestic auto industry requested this investigation," said the US Motor & Equipment Manufacturers Association.

The group, along with European car manufacturers, was warning against potential new US tariffs on foreign-made vehicles and parts.