Hello and welcome to Energy Source, coming from New York, where the energy industry is considering the implications of Donald Trump price on Canadian and Mexican imports.
Neighbors’ products closest to the United States are faced with 25% samples. However, Canadian energy imports face 10% of rights – the lower rate reflecting the dependence of American refineries at around 4 million barrels per day of gross Canada imports used to make a range of petroleum products.
Analysts say that Canadian crude prices will increase gas prices, especially in the northern American Midwest states.
The threat of a trade war has weighed on the oil markets for months, but on Monday, an OPEC + decision to increase production triggered a sale This has resulted in raw prices at low to three months.
Our main article is today examining the National Oil Company of the Peru crisis, which relied on the government’s bailouts due to problems in a key refinery project.
Thank you for reading – Jamie
Who pays for Petroperú to become profitable?
At the end of December, the Government of Peru declared an “environmental emergency” of 90 days after the National Oil Company reversed a crude oil expedition in the waters surrounding its flagship refinery on the country’s Pacific coast.
The spill was the latest Petrperú crisis from its Talara refinery, which underwent a modernization of $ 6.5 billion in a decade. Improvements of the centenary refinery finished in 2023, several years late and much more budgetary, plunging the company into billions of dollars in debts.
LIMA provided repeated government renunciations, including two rescue packages last year totaling more than $ 1 billion. He also took control of the payments of Petrperú debt in the second half, following the mass resignation of the company’s board of directors, which qualified the company “breaking” and “unsustainable” because it criticized the government for dragging its feet on the reforms.
However, Petroperú continued to attract international investors looking for high -performance or garbage bonds that have a confidence that the government will continue to save the business if necessary. And in Latin America, which has a history of foreigners on its resources, governments have been particularly willing to support their national businesses.
“I do not think that Peru would leave their national oil company,” said Schreiner Parker, Managing Director of Latin America to Rystad Energy. “That said, I don’t think you can never say definitively in Latin America that something will not happen, especially with the (political) situation in Peru at the moment.”
In a notorious region for political instability, Peru has an extreme case. The country has seven presidents since 2016. Its political landscape is very fragmented: the presidential election of 2021 had 18 candidates and a largely unknown foreigner, Pedro Castillo, was catapulted at the top of the ballot box (he was then imprisoned after trying to dissolve the congress and to reign by decreed). His successor, the current president Dina Bolute, has a public approval rating with figures with a single figure, and his mandate was derailed by the corruption scandals.
Although the defect seems unlikely, there is a “wide spectrum of results” for Peruvian policy, said Parker, with implications for the management of Petroperú. “Some of this is someone who comes and says:” Hey, we are going to do things radically different from what we have done in the past. “”
Political instability poses a major obstacle to the recovery of Petroperú, which is based on levels to develop production in the Talara refinery.
“Hydrocarbons require long -term vision and long -term planning,” said Parker, but it was undermined by the “frantic change of government”.
Petroperú said he hoped to return to profits in 2025 at the rear of the Talara refinery of the treatment capacity. Last December, the company said that it treated 90,000 barrels of oil per day – compared to 60,000 b / d before. The new refinery is capable of treating the heavier gross transported via a pipeline from the Peruvian Amazon.
But a story of leaks from the Norperuano pipeline, which transfers the raw of the Amazon to Talara, has generated fierce opposition from the Aboriginal and local communities. Environmental groups say that Petrperú’s financial problems have the country overtake on fossil fuels while it is trying to become profitable.
“This debt crisis leads to the renewed plans of Petroperú to accelerate the new production of domestic oil in highly contested reserves,” said Amazon Watch for non -profit at Energy Source.
“In the end, investors, bonds and banks who facilitate this debt play a central role in this current dilemma, because they have a lever effect on Petroperú and the country’s ability to transform fossil fuels – while providing the capital that causes the destruction of the Amazon forest.”
Petroperú did not respond to a request for comments. (Benjamin Wilhelm)
Food points
Energy Source is written and edited by Jamie Smyth, Myles McCormick, Amanda Chu, Tom Wilson and Malcolm Moore, with the support of the world team of FT journalists. Reach us energy.source@ft.com and follow us on x at @Ftenergy. Catch up with the past editions of the newsletter here.
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