** Crude oil remains markedly lower year-to-date, reflecting China’s dour demand outlook and plans by OPEC+ to eventually restore some shuttered output. The headwinds have been partially countered by supply disruptions in Libya and the US and prospects for monetary easing, with investors expecting the Federal Reserve to start lowering interest rates.
** -Permian Resources Corporation announced the closing of its previously announced acquisition of certain leasehold and royalty interests and related midstream infrastructure from Occidental. The acquired assets consist of ~29,500 net acres, ~9,900 net royalty acres and substantial midstream infrastructure primarily located offset the Company’s existing position in Reeves County, Texas.
** Chevron CEO Michael Wirth on Tuesday criticized U.S. President Joe Biden’s administration for what he described as “attacks on the natural gas” industry and emphasized the crucial role of Permian natural gas in powering the rapid growth of artificial intelligence (AI). The CEO’s remarks followed new government plans over policies to prevent power-hungry AI data centers from undercutting U.S. climate goals.
** JBS SA has teamed with GreenGasUSA to turn animal waste into marketable fuel as the world’s largest meat producer seeks to reduce harmful emissions. Under the agreement, GreenGasUSA will initially collect, process and trade biogas — a fuel made of methane, a potent planet warming gas — at two beef plants in Nebraska and Utah as well as at a chicken plant in South Carolina.
** California Gov. Gavin Newsom is trying to get his state off of oil and gas — but the path is littered with political tripwires, according to Politico. His plan to manage gas prices has drawn attacks from the National Republican Congressional Committee, criticism from neighboring governors and pushback from Democratic moderates at home.
** A report by The New York Times uncovered a dire situation in which experts warned that “extreme heat and increased flooding linked to climate change are accelerating the disintegration of the nation’s bridges.” A study published in the journal PLOS ONE determined extreme temperatures could cause failures that require extensive bridge repairs and closures by 2040 and that one in four steel bridges in the U.S. will collapse by 2050 if things don’t change.
** Bankrupt trucker Yellow Corp. and its hedge fund owners lost a key court ruling over $6.5 billion in debt that pension funds claim the defunct company owes them, likely wiping out most recovery for shareholders.
World
** A Tokyo-based company called Helical Fusion is set to launch a first-of-its-kind steady-state nuclear fusion reactor, Interesting Engineering reported. It would be considered a “pilot” reactor, but if successful, the project could have major implications for the future of clean energy.
** Grid issues could cause the world to miss out on as much as 2,000 terawatt-hours of wind and solar generation, according to a report from the International Energy Agency which examined how countries cope with increasing renewable generation in their energy mix. That’s roughly the amount produced last year in China and the US, the world’s two biggest generators.
** Chinese electric vehicles present a backdoor risk for Beijing to gain leverage over rival governments, a new report warns. The think tank China Strategic Risks Institute (CSRI) published an analysis called “Under-Pricing Chinese EV risks in the UK” that reached very similar conclusions as the Biden administration earlier this year: Cars from China pose a threat to national security.
** Zijin Mining Group Co., China’s most valuable mining company, says it won’t be deterred by the Canadian government’s measures to limit foreign involvement in its mining sector. The Chinese gold and copper producer will “absolutely” continue to seek out investments in Canadian mining companies — especially junior exploration firms, Zijin vice president Shaoyang Shen said in a Tuesday interview at Denver Gold Group’s annual conference in Colorado.