A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights
SINGAPORE/LONDON, Oct 27 (Reuters) - Oil prices are expected to fall when trading resumes on Monday as Israel's retaliatory strike on Iran over the weekend bypassed Tehran's oil and nuclear infrastructure and did not disrupt energy supplies, analysts said.
Brent and U.S. West Texas Intermediate crude futures gained 4% last week in volatile trade as markets priced in uncertainty around the extent of Israel's response to the Iranian missile attack on Oct. 1 and the U.S. election next month.
Scores of Israeli jets completed three waves of strikes before dawn on Saturday against missile factories and other sites near Tehran and in western Iran, in the latest exchange in the escalating conflict between the Middle East rivals.
"The market can breathe a big sigh of relief; the known unknown that was Israel's eventual response to Iran has been resolved," Harry Tchilinguirian, group head of research at Onyx said on LinkedIn.
"Israel attacked after the departure of U.S. Secretary of State Antony Blinken, and the U.S. administration could not have hoped for a better outcome with U.S. elections less than two weeks away."
Iran on Saturday played down Israel's overnight air attack against Iranian military targets, saying it caused only limited damage.
"Israel's not attacking oil infrastructure, and reports that Iran won't respond to the strike remove an element of uncertainty," Tony Sycamore, IG market analyst in Sydney, said.
"It's very likely we see a 'buy the rumour, sell the fact' type reaction when the crude oil futures markets reopen tomorrow," he said, adding that WTI may return to $70 a barrel level.
Tchilinguirian expects geopolitical risk premium that had been built into oil prices to deflate rapidly with Brent heading back towards $74-$75 a barrel.
UBS commodity analyst Giovanni Staunovo also expects oil prices to be depressed on Monday as Israel's response to Iran's attack appeared to have been restrained.
"But I would expect such downside reaction to be only temporary, as I believe the market didn't price a large risk premium," he added.
Egypt, Turkey, and Tunisia expressed concerns about the dangerous and accelerating escalation in the Middle East, the latest of which was the Israeli attack on Iran.
The Egyptian Foreign Ministry reaffirmed its condemnation of all measures that threaten regional stability and security, exacerbate the already fragile regional situation, and fuel tension and conflict in a statement on Saturday.
It said Egypt is brokering a ceasefire in the Gaza Strip, stressing the release of prisoners and hostages is the only path to de-escalation.
The ministry, in addition, renewed Egypt’s calls for respecting Lebanon’s territorial sovereignty and immediately ending hostilities between Israeli forces and Hezbollah, reports Xinhua news agency.
In a statement, the Turkish Foreign Ministry also condemned in the “strongest terms” Israel’s attack on Iran, accusing Israel of bringing the region to the brink of a “wider war.”
Echoing the same concern, Tunisia warned of the repercussions of the Israeli airstrikes on Iranian territory.
“This is in addition to the war of extermination that Israel has been waging for more than a year against the Palestinian people and Israel’s blatant attacks on Lebanon and Syria in a frantic effort to ignite a regional war that will destroy security and stability in the region and beyond,” Tunisian Foreign Ministry stated.
The ministry called on the international community to urgently assume responsibility to end the spiral of violence, which violates all international and moral conventions and puts the region and even the world in great danger.
The Israel Defense Forces said it launched early Saturday “precise and targeted” airstrikes on targets in several areas in Iran in response to the attacks from Iran in recent months.
Iran’s air defence headquarters said in a statement that it had successfully countered the Israeli airstrikes, which inflicted “limited damage.” Iran’s army said two of its soldiers were killed during the Israeli strike. (Agency)
https://yespunjab.com/egypt-turkey-tunisia-express-concern-over-dangerous-escalation-in-region/
Mizuho Securities analyst Nitin Kumar CFA has maintained their neutral stance on CNX stock, giving a Hold rating on October 25.
Nitin Kumar CFA has given his Hold rating due to a combination of factors related to CNX Resources’ recent performance and future outlook. The company reported a modest beat on EBITDA, although production volumes slightly underperformed expectations. New Tech free cash flow was mostly in line with forecasts, and CNX Resources maintained its full-year free cash flow guidance while tightening the range on CMM volumes.
Despite these positive aspects, the stock is trading at a valuation that suggests it is fairly priced compared to its peers, with the EV/EBITDX ratio lower than gas-focused exploration and production companies and a free cash flow to enterprise value ratio that is not significantly advantageous. Additionally, uncertainties surrounding potential IRS rulings and legislative changes regarding methane capture credits add an element of risk to the company’s growth prospects in its New Tech segment. These considerations support the Hold rating, as they indicate a balanced outlook with no immediate catalysts for significant stock appreciation.
In another report released on October 25, Stephens also maintained a Hold rating on the stock with a $35.00 price target.
CNX’s price has also changed dramatically for the past six months – from $24.210 to $37.200, which is a 53.66% increase.
CNX Resources (CNX) Company Description:
CNX Resources Corp. is an oil and gas company. The firm engages in the exploration, development, production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. It operates through the following segments: Marcellus Shale, Coalbed Methane, Utica and Other Gas. The company was founded in 1864 and is headquartered in Canonsburg, PA.
Federal regulators have granted a 3-year extension to QatarEnergy and ExxonMobil to complete construction of their joint venture project Golden Pass LNG located in Sabine Pass, Texas , Reuters reported on October 24 .
In September, the two firms requested an extension from the Federal Energy Regulatory Commission (FERC) for their 18mn tonne per year (tpy) facility after being forced to secure a new primary contractor following Zachry Holdings filing for Chapter 11 bankruptcy in late July.
In its bankruptcy filing, the construction firm cited mounting construction costs due to soaring construction costs related to a shortage of skilled labour in combination with inflation because of rising wages in the Gulf Coast region.
In total, Zachry Holdings claimed that costs at Golden Pass LNG had ballooned to be at least $2.4bn more than its original budget for the project.
The Texas project has suffered a series of delays, with Golden Pass LNG originally planned to be finished in 2025. Without receiving the extension approval from FERC , the project’s authorization would have expired in November 2026 .
Golden Pass LNG will now begin the process of rehiring and remobilising more than 4,000 skilled workers. The firm CB&I, a unit of McDermott International , has taken over as the project’s new primary construction contractor.
According to its filing in September, construction of the project’s first gas processing unit is more than 80% complete. Additionally, the second and third gas processing units are more than 40% and 30% completed respectively.
The $10bn construction project on the Gulf Coast near Sabine Pass in Texas involves the conversion of a former gas-import terminal to process natural gas as an LNG export facility. Upon completion, the project will become one of the biggest facilities in the world for processing the super-chilled fuel.
QatarEnergy holds a majority stake in the project with a 70% interest, while ExxonMobil holds a 30% stake.
European gas prices have surged to a year-high amid supply challenges and geopolitical tensions. The Amsterdam-based Title Transfer Facility (TTF), Europe's main gas benchmark, recently climbed to €43.61 per megawatt hour — its highest level since December 2023. The spike underscores Europe’s sensitivity to supply disruptions, even though gas storage levels are around 95% full.
A major factor driving this increase was a temporary production halt in Norway. Equinor, a state-owned energy company, suspended operations at the Sleipner B natural gas platform after detecting smoke, resulting in a reduction of daily exports by about 5.1 million cubic metres. Norway now accounts for roughly 30% of Europe’s natural gas imports, solidifying its status as the region's top supplier. This shift follows Europe’s decision to scale back reliance on Russian gas after the 2022 Ukraine invasion.
Geopolitical risks in the Middle East have further complicated the market. Hostilities between Israel and Hezbollah, along with the potential disruption of the Strait of Hormuz — a critical route for LNG shipping that handles around 20% of global flows — have raised concerns. As a result, Dutch TTF futures have risen around 12.8 per cent over the previous month.
While producers like Equinor benefit from the upswing, gas distributors face stress due to higher operational costs and margin calls on derivative contracts. In Germany, some firms have had to increase credit lines with banks. This has led to a tightening of short-term credit markets for energy-dependent industries.
Despite the current volatility, gas prices are still below the highs reached during the early stages of the Ukraine conflict in August 2022, where prices per megawatt-hour reached €339.20. Nevertheless, analysts caution that market stability is fragile. Europe's winter energy outlook remains uncertain as the expiration of the Russia-Ukraine transit agreement in December looms, potentially affecting 5% of Europe’s supply. Additionally, Europe is likely to face increased competition with Asia for LNG shipments as winter intensifies. Analysts suggest that prices could surge to €60-70 per megawatt hour if geopolitical tensions escalate.
https://www.sharecafe.com.au/2024/10/27/european-gas-market-feels-the-heat/
We recently compiled a list of the Jim Cramer on Tesla and Other Stocks. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against the other stocks Jim Cramer is talking about.
Jim Cramer, host of Mad Money, emphasized the ongoing significance of fossil fuels in supporting technological advancements, even as investments in renewable energy continue to increase. He stated:
“This is not just a grudge match between the old and the new, a battle of electric vehicles versus internal combustion. The truth is, fossil fuels are essential for a lot more than vehicles, like it or not.”
Cramer highlighted the growing energy demands of major tech companies, noting that the data centers they are constructing consume vast amounts of electricity. While these tech giants are making substantial investments in nuclear energy, he pointed out that this power source is unlikely to significantly impact data centers for at least another decade due to the complexities of building nuclear facilities and community resistance to having them nearby.
“If we need more energy, we’re going to get it from what comes out of the ground … fossil fuels that will power the data center, specifically natural gas… You may be reluctant to invest in it, you might think who cares, but you need to know how vital all of this fossil fuel technology is to the growth of the Magnificent Seven.”
Cramer also reflected on the shift in the U.S. energy landscape, recalling how the nation was once heavily reliant on OPEC for oil imports just two decades ago. Today, he pointed out, the U.S. produces over 13 million barrels per day, making it the largest oil producer globally and a net exporter. He mentioned the Permian Basin's unexpected resilience, continually producing despite earlier predictions of depletion.
Cramer noted that the decline of OPEC has transformed the geopolitical landscape. He referenced the 1973 oil crisis, triggered by OPEC's retaliation against U.S. support for Israel, which led to stagflation and economic turmoil. In contrast, he pointed out that despite Israel's current conflict, the U.S. economy is not experiencing stagflation or recession, resulting instead in a bull market. He attributed this stability to the industry, saying:
“... This industry that spent billions upon billions of dollars to try to be as low carbon as possible is the reason why oil prices have actually come down during this period. They've gotten so much production that OPEC is now powerless.”
https://finance.yahoo.com/news/jim-cramer-says-chevron-corporation-092609665.html
27/10/2024 LOC15:23 12:23 GMT
BAGHDAD, Oct 27 (KUNA) -- The Iraqi government once again reiterated its commitment to decreasing crude oil production as agreed upon by OPEC+ group, and affirmed moving forward with developing the oil and gas sectors in the country.
The announcement came after Prime Minister Mohammad Al-Sudani met with Oil Minister Hayyan Abdulghani on Sunday and discussed Iraq's commitments in relation to oil production and projects.
The meeting also touched on the importance of partnership between oil producing countries in order to maintain stability of the global market, reported the Prime Minister's media office adding that Iraq is committed to the agreed upon schedule of production.
Al-Sudani stated that the government is proceeding with its developmental plan through boosting investments in fields, gas projects and oil derivatives projects.
Baghdad had previously asserted to OPEC's Secretary General Haitham Abulgheis while on visit to the country, its adherence to organization's production policies. (end) ahh.aai
https://www.kuna.net.kw/ArticleDetails.aspx?id=3191692&language=en
The Kingdom’s non-oil exports rose 7.5% YoY during August to reach approximately SAR 27.5 billion (USD 7.3 billion).
This was driven by the country’s re-export operations and a hike in its chemicals production capacity.
Details
Data from the General Authority for Statistics showed that consumer exports declined last month by 9.8% YoY to reach about SAR 93 billion.
This came on the back of a decline in KSA’s oil exports — some 15.5% — to around SAR 65.3 billion.
This is in line with the voluntary cut rates the kingdom agreed to as part of its pact with OPEC+.
At the same time, the kingdom’s consumer imports declined by approximately 3.9% YoY to reach about SAR 65 billion.
So what
KSA’s trade surplus declined 21% YoY to reach SAR 28 billion.
However, this marked an improvement from the previous month’s level of approximately SAR 19.3 billion, which was the “lowest level” since November 2020.
Notably, the Kingdom, the world’s largest oil exporter, is seeking to diversify its economy.
This effort aims to increase the contribution of non-oil sectors to the non-oil GDP, aligning with the “Vision 2030” initiative.
Some context
The International Monetary Fund (IMF) lowered its growth forecast for the “largest Arab economy” to 1.5% for the current year, down from 1.7% projected in July.
It anticipates a growth acceleration of 4.6% in 2025, a decrease of 0.1% from previous forecasts.
This was highlighted in the IMF’s latest report on global economic growth prospects, which estimated growth in the Middle East and Central Asia at 2.4% this year, with expectations of rising to 3.9% next year as temporary disruptions in oil production and shipping fade.
Now what
A Reuters survey conducted from October 9 to 22, involving 21 economists, predicted that the Saudi economy would grow by 4.4% in 2025, marking the fastest pace in three years.
The survey has projected a growth of 1.3% for this year.
The experts also expected a “strong performance” for the economies of other Gulf Cooperation Council (GCC) countries, supported by increased oil production after two years of cuts.
It is worth noting that the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, has been cutting oil production since late 2022.
However, production is expected to increase in December, which could boost revenues for the six GCC member states.
Crude oil prices are expected to remain broadly low, averaging USD 76.75 per barrel next year, up from current prices of about USD 74.8, according to a separate agency survey.
https://claps.therumble.app/ksas-non-oil-exports-rise-7-5-in-august/
U.S. shale natural gas production has declined so far in 2024
Data source: U.S. Energy Information Administration, Short-Term Energy Outlook
Note: The formations included in our U.S. shale natural gas production estimates are determined by identified tight and shale formations. Year-to-date 2024=January–September.
U.S. natural gas production from shale and tight formations, which accounts for 79% of dry natural gas production, decreased slightly in the first nine months of 2024 compared with the same period in 2023. If this trend holds for the remainder of 2024, it would mark the first annual decrease in U.S. shale gas production since we started collecting these data in 2000.
Total U.S. shale gas production from January through September 2024 declined by about 1%, to 81.2 billion cubic feet per day (Bcf/d), compared with the same period in 2023, while other U.S. dry natural gas production increased by about 6% to 22.1 Bcf/d. Total U.S. dry natural gas production from January through September 2024 averaged 103.3 Bcf/d, essentially flat compared with the same period in 2023.
The decline in shale gas production so far this year has been driven primarily by declines in production in the Haynesville and Utica plays. From January through September 2024, shale gas production decreased by 12% (1.8 Bcf/d) in the Haynesville and by 10% (0.6 Bcf/d) in the Utica compared with the same period in 2023. At the same time, shale gas production in the Permian play grew by 10% (1.6 Bcf/d). Production in the Marcellus play, which leads U.S. shale gas production, remained flat.
Data source: U.S. Energy Information Administration, Short-Term Energy Outlook
The Haynesville play in northeastern Texas and northwestern Louisiana is a dry natural gas formation. The Utica and Marcellus plays in the Appalachian Basin produce lease condensate in addition to dry natural gas. In all three plays, natural gas prices mostly drive drilling and developing wells. The U.S. benchmark Henry Hub daily natural gas price has generally declined since August 2022 and reached record lows in the first half of 2024, making drilling natural gas wells less profitable, particularly in the Haynesville. Several operators in the Haynesville and the Appalachian Basin shut in natural gas production in reaction to historically low prices and intend to continue curtailments in the second half of 2024.
In contrast, natural gas produced in the Permian play in western Texas and southeastern New Mexico is primarily associated gas from oil wells where drilling and development is driven by the oil price. Natural gas production in the Permian has increased this year along with increasing oil production.
Shale natural gas production in the Utica was 5.6 Bcf/d in September, 33% less than the monthly high of 8.3 Bcf/d in December 2019 and 10% less than the average of 6.2 Bcf/d in 2023. At depths of 5,000 feet to 11,000 feet, wells in the Utica, which lies beneath the Marcellus, are slightly more expensive to drill than Marcellus wells because of their depth.
Drilling costs of Haynesville wells, at depths of 10,500 feet to 13,500 feet, are even higher. Shale natural gas production in the Haynesville was 13.0 Bcf/d in September 2024, 14% less than the peak in May 2023. The Haynesville is the third-largest shale gas-producing play in the United States, behind the Marcellus and the Permian plays. In 2023, shale natural gas production in the Haynesville averaged 14.6 Bcf/d, accounting for 14% of total U.S. dry natural gas production.
Data source: Refinitiv Eikon and Baker Hughes Company
Note: Prices are adjusted for inflation based on the September 2024 Consumer Price Index.
The U.S. benchmark Henry Hub natural gas price fell 79% from the August 2022 inflation-adjusted high of $9.39 per million British thermal units (MMBtu) to an average of $1.99/MMBtu in August 2024. So far this year, the price has averaged $2.10/MMBtu compared with an inflation-adjusted average of $6.89/MMBtu in 2022 and $2.62/MMBtu in 2023. As natural gas prices declined, the economics of producing natural gas in the dry gas formations worsened, leading producers to shut in production and drop drilling rigs.
Producers tend to increase or decrease the number of drilling rigs in operation as natural gas prices fluctuate. The number of natural gas-directed drilling rigs in the Haynesville, Utica, and Marcellus plays has decreased steadily since the end of 2022, according to data from Baker Hughes. In the Haynesville, an average of 33 rigs were in operation in September 2024, 53% fewer than in January 2023. The number of rigs operating in the Haynesville in September was the lowest it has been since July 2020.
In the Utica, an average of seven rigs were operating in September 2024, fewer than half the number that were operating in January 2023, and in the Marcellus, an average of 25 rigs were in operation, about 36% fewer than in January 2023. Although the productivity of newer wells has improved in recent years, the decline in rig counts has contributed to an overall decrease in production.
In our latest Short-Term Energy Outlook, we forecast total U.S. dry natural gas production to average 103.5 Bcf/d in 2024, down slightly from 103.8 Bcf/d in 2023, and to resume modest growth in 2025 at 104.6 Bcf/d.
Principal contributors: Katy Fleury, Corrina Ricker, Kenya Schott
Cathie Wood is the head of Ark Investment Management, which operates several exchange-traded funds (ETFs) focused on innovative technology companies. Tesla (NASDAQ: TSLA) stock is one of the top positions across Ark's portfolios, and Wood calls it the biggest artificial intelligence (AI) opportunity in the world thanks to the company's full self-driving (FSD) software.
Tesla currently generates around 79% of its revenue by selling passenger electric vehicles (EVs), but Ark released a set of financial models earlier this year that suggest that number is about to shrink significantly.
In fact, by 2029, Ark predicts a whopping 86% of Tesla's earnings will come from something else entirely.
Tesla's passenger EV business is struggling at the moment
When Tesla stock came public in 2010, few analysts believed the company would succeed in mass-producing EVs. It certainly proved them wrong, and it delivered a record 1.8 million units in 2023 alone. However, sales are clearly slowing.
Tesla delivered 1.29 million EVs in the first three quarters of 2024, which represented a drop of 2.3% compared to the same period last year. That means its annual deliveries are on track to shrink for the first time since it launched the flagship Model S in 2011 -- even though the company has drastically slashed prices over the past year to boost demand.
Demand is softening across the EV industry right now as consumers opt for cheaper gas-powered cars amid tough economic conditions headlined by high interest rates. Plus, a report by Goldman Sachs suggests consumers are concerned about a lack of rapid charging infrastructure, as well as the declining resale value of EVs in general.
But Tesla also faces a growing competitive threat, with low-cost manufacturers like China-based BYD threatening to flood global markets with cheap EVs. BYD's Seagull sells for under $10,000 in China, and it could be on its way to Europe in 2025. Those are important geographic markets for Tesla, and none of its passenger EVs can compete at that price point.
Tesla CEO Elon Musk outlined plans to build a low-cost EV, which was expected to go into production in 2025 and sell for $25,000, but during his conference call with investors for the third quarter of 2024 (ended Sept. 30), he said the project is no longer going ahead.
FSD and robotaxis are the way forward, according to Musk
Musk says building a low-cost passenger EV is "pointless" because Tesla's future is in autonomous vehicles instead. The company unveiled the Cybercab earlier this month, which is a self-driving robotaxi with no steering wheel or pedals.
The Cybercab will run on Tesla's FSD software, which the company has been developing for years. However, it does not have approval for unsupervised use in the U.S. yet, and a human driver must be ready to take over at all times. But based on the data collected from extensive beta testing in its passenger EVs, it is possible that the Cybercab is already safer than the average car on the road.
According to Tesla's most recent quarterly vehicle safety report, FSD caused one crash every 7 million miles, compared to one crash every 700,000 miles for the average U.S. driver. In other words, FSD is 10 times safer than human-driven vehicles, statistically speaking, as it stands today.
The software will only get better over time because the AI models upon which it is based are constantly learning from new data. Tesla is currently building a cluster of 50,000 graphics processing chips (GPUs) from Nvidia to train FSD further. In fact, the company is on track to spend $11 billion on AI data center infrastructure this year for that very purpose.
As a result, Musk expects the software to eventually receive regulatory approval for unsupervised use. He says it could be available in Texas next year, and potentially California.
https://finance.yahoo.com/news/tesla-makes-money-selling-electric-094700122.html
The 2023 presidential candidate of the Peoples Democratic Party, Atiku Abubakar, has raised concerns about Nigeria’s ongoing struggle with an unreliable power supply and frequent national grid collapses.
The former Vice President also condemned the blackout in the Southeast, Northwest, and Northeast regions of the country, which has persisted for the past three weeks.
He stated that the ministry and departments responsible for addressing the blackout must quickly intervene to restore electricity to the distressed regions.
Posting on his official X.com handle on Saturday, Atiku said his policy document, My Covenant with Nigerians, contains the most proactive plan for resolving Nigeria’s perennial power outages.
He wrote: “In particular reference to the situations in both the Southeast and the entire states of the Northwest and Northeast, which have experienced complete blackouts in the past three weeks, every government department responsible for addressing the problem must act swiftly to restore electricity to these distressed geopolitical zones.
“Meanwhile, I still believe that my solution, as encapsulated in my policy document, My Covenant with Nigerians, remains the most proactive plan to lead our country out of perennial darkness.”
Atiku also called for the decentralisation of electricity to the states, stressing the need to grant states the power to generate, transmit, and distribute electricity for themselves.
He further emphasised the necessity for complementary transmission and distribution infrastructure to transport the supplementary energy produced.
“There is an urgent need to remove the entire electricity value chain from the exclusive list and grant states the power to generate, transmit, and distribute electricity for themselves.
“I firmly believe that an industrial dispute with the Federal Government in the nation’s capital should not affect industrial activities in any of the states or cities in the country.
“Even as we focus on investments in additional generation, there is a compelling need for capacity in the complementary transmission and distribution infrastructure to transport the supplementary energy produced.
“Considering that energy opportunities exist in different parts of the country, our strategy should involve a viable mix of renewable (hydro, solar, wind, and biofuels) and non-renewable (coal, gas) sources.
“I wish to restate my earlier recommendation to encourage private investors to invest in developing multiple greenfield mini-grid transmission systems to be linked into the super-grid in the medium to long term,” he added.
https://punchng.com/atiku-raises-concern-over-power-crisis-national-grid-collapse/
CITY OF SAN MARCOS
Due to drought and weather conditions, the City of San Marcos will enter Stage 3 drought restrictions effective Sunday, Oct. 27 at noon. Stage 3 imposes significant measures under the city’s updated Conservation and Drought Contingency Ordinance. This is the first time San Marcos has reached this stage since the ordinance was updated on April 16, 2024.
Stage 3 is implemented when the city’s available water resources – including the Edwards Aquifer, Canyon Lake, Alliance Regional Water Authority and Canyon Regional Water Authority reach levels that require immediate and substantial conservation efforts.
“With water levels in our region under pressure due to prolonged drought, every action counts. Whether it's limiting irrigation or adjusting daily water usage habits, these measures are essential,” San Marcos Utilities Director Tyler Hjorth said. “It's critical that we come together as a community to reduce water use and protect our valuable resources.”
During Stage 3 drought restrictions, waste of water is prohibited. Limits are placed on the use of soaker hoses, drip irrigation, and aesthetic water features. Irrigation with hose-end sprinklers and automatic irrigation systems is limited to one day every other week on the designated weekday determined by address before 10 a.m. or after 8 p.m. Irrigation with soaker hose and drip irrigation system is allowed only one day per week on the designated weekday determined by address before 10 a.m. or after 8 p.m. Hand watering using a hand-held bucket or hose is allowed on any day before 10 a.m. or after 8 p.m.
At home car washing, using decorative water features, filling swimming pools, and washing impervious surfaces are all prohibited in Stage 3. Foundation watering using a drip system, soaker hose or hand-held hose is allowed only one day per week.
Visit sanmarcostx.gov/ SMTXU for conservation information and tips to save money on your next utility bill.
https://www.sanmarcosrecord.com/article/28258,san-marcos-to-enter-stage-3-drought-restrictions
The European Union’s Critical Raw Material Act sets out several ambitious goals to enhance the resilience of its critical mineral supply chains.
As Visual Capitalist's Bruno Venditti details below, the Act includes non-binding targets for the EU to build sufficient mining capacity so that mines within the bloc can meet 10% of its critical mineral demand.
Additionally, the Act establishes a goal for 40% of demand to be met by processing within the bloc, and 25% through recycling.
Several months after the Act’s passage in May 2024, this graphic highlights the scale of the challenge the EU aims to overcome. This data comes exclusively from Benchmark Mineral Intelligence, as of July 2024. The graphic excludes synthetic graphite.
Securing Europe’s Supply of Critical Materials
With the exception of nickel mining, none of the battery minerals deemed strategic by the EU are on track to meet these goals.
Graphite, the largest mineral component used in batteries, is of particular concern. There is no EU-mined supply of manganese ore or coke, the precursor to synthetic graphite.
By 2030, the European Union is expected to supply 16,000 tonnes of flake graphite locally, compared to a domestic mining target of 45,000 tonnes.
The bloc is projected to produce 29,000 tonnes of lithium carbonate equivalent (LCE), compared to a 46,000 tonnes target.
In terms of mineral processing, the bloc is expected to process 25% of its lithium requirements, 76% of nickel, 51% of cobalt, 36% of manganese, and 20% of flake graphite.
The EU is expected to recycle only 22% of its lithium needs, 25% of nickel, 26% of cobalt, and 14% of manganese. Graphite, meanwhile, is not widely recycled on a commercial scale.
By Zerohedge.com
https://oilprice.com/Energy/Energy-General/Visualizing-Europes-Critical-Mineral-Challenge.html
Montage Gold has successfully raised $825 million in Côte d’Ivoire to finance the construction of the country’s largest gold mine, which is expected to achieve an annual production capacity of 301,000 ounces during its first eight years of operation. This project is set to significantly bolster gold production in Ivory Coast in the long term.
In a press release dated October 24, 2024, Montage announced that the funding was secured through a combination of loans and advance sales of future gold production.
This financing involved collaboration with one of its shareholders, China’s Zijin Mining, as well as Wheaton Precious Metals, a Canadian company specializing in precious metals streaming.
Wheaton is providing $625 million through advance gold purchases and an additional $75 million in loan facilities. The $625 million financing agreement specifically pertains to the Koné and Gbongogo deposits located at the future mine site.
According to the agreement, Wheaton will purchase 19.5% of payable gold from these deposits until 400,000 ounces are delivered.
Once that milestone is reached, the purchase percentage will decrease to 10.8% until an additional 130,000 ounces are delivered, and subsequently drop to 5.4% for the remainder of the mine’s life.
Zijin Mining is contributing $75 million under the advance gold sale agreement, along with an additional $50 million in loan facilities.
Under the streaming agreement, Zijin will receive 3.1% of payable gold from the Koné project until 54,000 ounces are delivered. After this point, Zijin’s share of gold production will be adjusted to 1.3% for the remainder of the mine’s operational life.
Mkango Resources Ltd. (LON:MKA)’s stock price rose 13.3% on Friday . The stock traded as high as GBX 6.40 ($0.08) and last traded at GBX 6.40 ($0.08). Approximately 203,648 shares changed hands during trading, a decline of 74% from the average daily volume of 790,753 shares. The stock had previously closed at GBX 5.65 ($0.07).
Mkango Resources Price Performance
The company has a market cap of £18.34 million, a price-to-earnings ratio of -625.00 and a beta of 2.17. The company has a fifty day moving average price of GBX 5.92 and a two-hundred day moving average price of GBX 6.12. The company has a current ratio of 0.16, a quick ratio of 0.87 and a debt-to-equity ratio of 54.03.
Mkango Resources Company Profile
Mkango Resources Ltd., together with its subsidiaries, explores for and develops rare earth elements and associated minerals in the Republic of Malawi, Africa. It explores for uranium, tantalum, niobium, zircon, nickel, cobalt, rutile, corundum, graphite, gold ores, and base metals. The company's flagship project is the Songwe Hill property within the Phalombe exploration license located in southeast Malawi.
Hindustan Zinc, a Vedanta Group company, plans to invest up to $2 billion (around ₹17,000 Crore) to double its production capacity to 2 million tonnes over the next few years, according to CEO Arun Misra.
Consultants have been hired to support the capacity expansion, and the company is actively seeking mining partners to meet its production goals.
Targeted capacity milestones include 1.2 million tonnes in 2025, 1.35 million tonnes in 2026, and 1.8 million tonnes in 2027, with an ultimate goal of reaching 2 million tonnes.
The required investment, estimated between $1.95 and $2 billion, is achievable due to existing mining infrastructure, expected to cost approximately ₹14,000 to ₹17,000 Crore.
Misra noted that restructuring discussions are ongoing with stakeholders, while the government’s disinvestment plans for Hindustan Zinc could influence these developments.
Hindustan Zinc is the world’s second-largest integrated zinc producer and ranks third globally in silver production, supplying to over 40 countries and holding a 75% share in India’s primary zinc market.
The company reported a 34.5% increase in consolidated net profit, reaching ₹2,327 Crore for Q2 2024, driven by higher income compared to ₹1,729 Crore in the previous year. Revenue rose to ₹8,522 Crore for the July-September quarter, with ₹6,403 Crore from zinc, lead, and other segments and ₹1,550 Crore from the silver division.
Prices of base metals largely fell on Monday, as caution prevailed amid conflicting signals on demand and ahead of a key meeting in China and the U.S. election.
Three-month copper on the London Metal Exchange fell 0.8% to $9,526.50 per metric ton by 0505 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange rose 0.1% to 76,520 yuan ($10,727.60) a ton.
China’s top legislative body will meet from Nov. 4 to Nov. 8. However, there is no mention of the highly anticipated debt and other fiscal measures on the meeting agenda.
Investors are cutting their exposure amid the many rumours and disappointment on economic support measures from China so far, said a metals trader.
The Nov. 5 U.S. presidential election will decide what policy direction the world’s biggest economy will follow in the next four years.
A lack of aggressive Chinese stimulus so far has dented copper’s demand outlook, but its price has been supported by supply concerns amid mine disruptions and calls for more discipline in China’s rapid rate of smelting expansion, analysts and traders said.
Copper set for weekly decline
China’s industrial profits plunged in September, recording the steepest monthly decline of 2024 and reflecting poor demand.
The country’s central bank launched a new lending tool earlier in the day to inject more liquidity into the market and support credit flow in its banking system.
LME aluminium fell 0.5% to $2,663 a ton, nickel edged down 0.3% at $16,115, zinc dropped 1.8% to $3,046, lead declined 0.9% to $2,028, while tin rose 0.3% to $31,410.
SHFE aluminium edged up 0.6% at 20,955 yuan a ton, tin climbed 1.1% to 257,170 yuan, while nickel fell 0.4% to 126,120 yuan, zinc dropped 1.8% to 24,820 yuan and lead eased 0.3% to 16,750 yuan.
https://www.brecorder.com/news/40329366/base-metals-fall-on-caution-and-disappointing-china-stimulus
West Africa, led by Guinea, is rapidly becoming a key supplier of bulk cargo for the Capesize shipping trades, bolstered by China's expanding electric vehicle (EV) industry. With Capesize and larger shipments from the region rising at an annual rate of 19.6 per cent since 2018, analysts at broker BRS project West African exports could exceed 150 million tonnes in 2024.
The region's largest contribution comes from Guinea, but other nations are also seeing significant growth. Mauritania, Africa's second-largest iron ore producer, along with Sierra Leone, Ghana, and Gabon, now accounts for approximately 20 per cent of Capesize and above cargo volumes leaving West Africa.
Notably, Ghana's iron ore exports surged by 76 per cent in the first nine months of this year. Gabon has tapped into the Capesize market with high-grade manganese ore, facilitated by transhipment from Libreville.
The Guinea-to-China bauxite route has become a "pivotal pillar" of the Capesize trades, underscoring the strategic importance of the trade corridor. BRS data reveals that there are now only 1.67 Brazilian shipments for every Guinean shipment—a dramatic shift from the 2019 ratio when every Guinea shipment was met with 337 Brazilian shipments. This year, bauxite has come to represent roughly 13 per cent of global Capesize trade volumes, a sharp rise from 10 per cent in 2023 and just 5 per cent in 2020, according to data from investment bank Jefferies.
Guinea's status in global shipping is set to rise even further with the anticipated opening of the Simandou iron ore mine in 2025, poised to make the nation a major iron ore supplier for China. The development solidifies Guinea's—and West Africa's—role as a powerhouse in bulk exports to Asia, a trend that shows no signs of slowing.
By Tsvetana Paraskova - Oct 27, 2024, 4:00 PM CDT
Although the share of coal in China’s electricity generation has been declining in recent years with the renewables boom, Chinese coal power generation and demand remains strong.
Coal still accounts for about 60% of China’s power generation, despite a surge in hydropower earlier this year after abundant rainfall, which reduced the share of coal in the country’s energy mix during the summer.
But hydropower saw a sharp decline in September, which boosted the use of thermal coal for power generation amid surging power demand in the world’s second-largest economy.
China’s thermal power generation, which is overwhelmingly coal-fired, jumped by 8.9% last month, per official data cited by Reuters’s columnist Clyde Russell.
Total power generation rose by 6% in September from a year earlier as electricity demand has started to outpace China’s economic growth in recent years.
Power demand jumped by 8.5% in September from the same month last year, while year to date, Chinese power consumption also rose by a similar percentage, 7.9% year-over-year, per the data quoted by Reuters’s Russell.
The surge in Chinese power consumption has led to high coal demand, too, as the power sector continues to rely on thermal generation for a stable supply of electricity amid soaring demand.
This demand is not only the result of a growing economy. China’s economy has expanded by less than 5% so far this year, and analysts fear the country could miss its own 2024 growth target of “about 5%.”
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The surge in power demand has also been attributed to the increased use of household appliances amid rising numbers of middle-class residents, as well as the surge in power use for data centers and electric vehicle charging.
Chinese electricity consumption in the data services industry and for charging and battery services soared in the first half of 2024, driven by technology and electric vehicles, data from the China Electricity Council has shown.
Power consumption in data centers, big data, and cloud computing jumped by 33% between January and June compared to the same period in 2023.
In addition, China’s EV sales have already topped conventional car registrations for three consecutive months. EV and plug-in hybrid sales surged by 50.9% in September from a year earlier, grabbing a 52.8% share of total sales, the latest Chinese data showed earlier this month.
Electricity consumption per capita in China already exceeded that of the European Union at the end of 2022 and is set to rise further, the International Energy Agency (IEA) said in its Electricity Mid-Year Update report in July.
“The rapidly expanding production of solar PV modules and electric vehicles, and the processing of related materials, will support ongoing electricity demand growth in China while the structure of its economy evolves,” the IEA noted.
Despite continued growth in coal-fired power generation, China reached a momentous milestone in clean energy in the first half of the year, as rising hydropower, solar, and wind output pushed down the share of coal in power generation to below 60% for the first time ever.
Solar and wind power contributed to this achievement, but it was mostly the result of a rebound in hydropower generation, which squeezed coal in the late spring and summer, thanks to heavy rainfalls.
Come September, however, hydropower generation crashed by 14.6% from a year earlier. And rising coal power generation filled in the gap.
Coal-fired generation will be a pillar of China’s electricity generation system for many years to come, as the country’s electricity demand growth is set to continue outpacing economic growth in the coming years and as electrification is booming with the energy transition and expansion of data centers.
By Tsvetana Paraskova for Oilprice.com
https://oilprice.com/Energy/Coal/China-Ramps-Up-Coal-Power-as-Energy-Demand-Surges.html