U.S. Senators proposed to shift transit buses to electric vehicles

MOSCOW (MRC) -- Two senior U.S. Senate Democrats on Tuesday proposed spending USD73 B to electrify the nation's 70,000 transit buses as part of a push to move the U.S. toward zero-emission transportation, said Hydrocarbonprocessing.

Senate Majority Leader Chuck Schumer and Senate Banking Chairman Sherrod Brown noted that only 2% of U.S. buses were zero-emission vehicles. They propose using funds to buy electric transit buses and vans and other vehicles and for related infrastructure costs.

The plan calls for "100% zero emission vehicles." A fact sheet did not specify a date to phase out diesel-powered buses but prioritized funding for areas with the poorest air quality. The senators said the average cost of a battery electric bus was between USD850,000 and USD900,000 and that hydrogen fuel cell buses averaged USD1 million or more.

"Significantly increasing the size of orders for zero-emissions buses will lead to major reductions in prices," the fact sheet said, adding agencies would save money on operating costs once upfront costs and infrastructure issues are addressed. Schumer said the plan would replace "dirty, diesel-spewing buses, create new American jobs, help save the planet and protect public health."

President Joe Biden's administration, as part of its USD2.3 trillion infrastructure and jobs plan, has proposed USD25 billion for zero-emission transit vehicles and USD20 billion for electrifying school buses as part of a USD174 billion EV and infrastructure package.

The senators' plan would require that all vehicles purchased using the funds be made in the United States. American Public Transportation Association Chief Executive Paul Skoutelas said the sector strongly supports "a game-changing investment in zero-emission buses and charging infrastructure."

The senators cited a study from the Center for Transportation and the Environment estimating costs to transition to a zero-emission transit bus fleet by 2035 at between USD56 billion and USD89 billion. The U.S. government in 2020 spent just USD130 million on zero- emission bus grants, the senators said.

As per MRC, oil prices rose after more US states eased lockdowns and the European Union sought to attract travellers, while soaring COVID-19 cases in India capped gains. Brent crude futures were 86 cents, or 1.27%, higher at USD68.42 a barrel at 1224 GMT, after climbing 1.2% before. US West Texas Intermediate (WTI) crude futures also rose 77 cents, or 1.19%, to USD65.26 a barrel, after gaining 1.4% on Monday. Both contracts were up over USD1, or about 2%, in earlier trade.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

US March output of major plastics resins down by almost 14% - ACC

MOSCOW (MRC) -- US production of major plastic resins totaled 6.9 billion pounds in March 2021, down by 13.6% year on year, according to the American Chemistry Council's (ACC) statistics.

At the same time, March output of the said products was up by 29.1% compared to the prior month.

Year-to-date production was 20.5 billion pounds, a 11.0% decrease as compared to the same period in 2020.

Sales and captive (internal) use of major plastic resins totaled 7.0 billion pounds during March 2021, an increase of 1.3% compared to the prior month, and a decrease of 10.5% from the same month one year earlier.

Year-to-date sales and captive use was 21.7 billion pounds, a 5.2% decrease as compared to the same period in 2020.

As MRC informed earlier, ACC’s chemical activity barometer (CAB), a leading indicator and composite index of industry activity, rose 0.7% sequentially in April on a three-month moving average (3MMA) basis, following a 1.1% gain in March and an 0.9% gain in February.

We remind that Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021, according to Rosstat's data. February production of polymers in primary form was 861,000 tonnes versus 196,000 tonnes in January. Overall output of polymers in primary form totalled 1,770,000 tonnes over the stated period, up by 8.4% year on year.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Indian refineries reduced fuel sales in April due to the second wave of coronavirus infections

MOSCOW (MRC) -- Indian state refiners' local fuel sales in April declined due to state-level restrictions aimed at stemming a rampant second wave of coronavirus infections, preliminary data shows, said Hydrocarbonprocessing.

The deadly second wave topped 400,000 new daily cases for the first time on Saturday. Authorities reported 401,993 new cases in the previous 24 hours, the highest daily count globally, after 10 consecutive days over 300,000. Deaths from COVID-19 jumped by 3,523, taking the total toll in India to 211,853.

"Overall fuel demand is down by about 7% from pre-covid level of April 2019," said A.K. Singh, head of marketing at refiner Bharat Petroleum Corp. "We were near pre-covid level in March but new restrictions and covid wave-2 has temporarily reduced demand equivalent to about 10% of March demand for both personal mobility and industrial goods movement," Singh told Reuters.

He said the local fuel consumption will 'start to look up' in June, by when second wave of coronavirus is expected to weaken. Analysts are expecting India's demand for transportation fuels to witness a sharper slump in May due to more impending restrictions.

Declining fuel sales will reduce crude intake by refiners. The country's top refiner Indian Oil Corp is operating refineries at an average 95% capacity. State companies - IOC, Hindustan Petroleum Corp and BPCL - own about 90% of India's retail fuel outlets.

State retailers' fuel sales in April declined from their sales in March and April 2019 levels, while posting a sharp rise from the year ago month when there was a nation-wide lockdown.

As MRC informed earlier, COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

ExxonMobil and USW fail to find mutual consent, leading to first lockout at Beaumont refinery in 118 years

MOSCOW (MRC) -- Disputes over seniority rights and pay for union workers at ExxonMobil Corp’s Beaumont, Texas, refinery led to Saturday’s first lockout at the 118-year-old plant, according to Hydrocarbonprocessing with reference to people familiar with the matter.

Workers represented by the United Steelworkers union (USW) walked picket lines for a third day outside the gates of the refinery and its lube oil plant. No talks took place and no proposals were swapped on Monday between two sides, the people said.

The oil company on Saturday barred about 650 USW Local 13-243 members from the complex, citing the union's refusal to call for a vote on its contract proposal. Exxon also feared the workers might strike, officials said.

The two sides mostly disagree on Exxon's call for revising seniority rules, the people said. Refinery workers spend their entire careers on one processing unit, gaining seniority preferences for scheduling, hours and job stability, they said.

Exxon has said its contract proposal would maintain "the company's ability to compete over a range of economic conditions, including periods of low industry margins."

The USW separately filed complaints with the US National Labor Relations Board against Exxon, accusing it of refusing to bargain, of repudiating or modifying their agreement, and of coercion.

As MRC reported previously, Sinopec Engineering (Group) and ExxonMobil (Huizhou) Chemical (EMHCC) have just entered into a BEPC (basic design, engineering, procurement and construction) contract for the proposed Huizhou Chemical Complex Project (Phase I). The main units of the project include a 1.6 million tonnes/year ethylene flexible feed steam cracker, downstream polymer and derivative units and utilities. The main product units include two performance polyethylene (PE) lines and two differentiated performance polypropylene (PP) lines.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
MRC

U.S. crude oil production decreased to lowest level since 2017 in February

MOSCOW (MRC) -- Crude oil output in the U.S. fell by more than 1 MMbpd in February, falling to the lowest levels since October 2017, according to a monthly government report, said Hydrocarbonprocessing.

U.S. oil production dropped 1.197 MMbpd in February to 9.862 MMbpd, according to a monthly report from the U.S. Energy Information Administration. Production fell in top producing states North Dakota and Texas, as well as in the offshore Gulf of Mexico, the report said.

February's data is the first time oil production has dropped below 10 MMbpd since January 2018, according to the agency. The output drop came as a freeze in Texas shut in some production, but declines were also seen in other major oil-producing states.

Meanwhile, monthly gross natural gas production in the U.S. Lower 48 states fell by 7.8 billion cubic feet per day (Bcfd), the biggest monthly decline on record, to 94.8 Bcfd in February, according to data in EIA's 914 production report going back to 2005.

That gas output drop in February was due to severe weather that froze gas wells and pipes in Texas and other states in the central United States. It followed production increases during the prior three months. Gross gas output peaked at 107.1 Bcfd in December 2019.

In top gas producing states, output fell 15.4% in Texas to 23.5 Bcfd in February, the lowest in a month since February 2018, but held steady near a record high of 21.2 Bcfd in Pennsylvania.

As MRC informed earlier, COVID-19 outbreak has led to an unprecedented decline in demand affecting all sections of the Russian economy, which has impacted the demand for petrochemicals in the short-term. However, the pandemic triggered an increase in the demand for polymers in food packaging, and cleaning and hygiene products, according to GlobalData, a leading data and analytics company. With Russian petrochemical companies having the advantage of access to low-cost feedstock, and proximity to demand-rich Asian (primarily China) and European markets for the supply of petrochemical products, these companies appear to be well-positioned to derive full benefits from an improving market environment and global economy post-COVID-19, says GlobalData.

We remind that in December 2020, Sibur, Gazprom Neft, and Uzbekneftegaz agreed to cooperate on potential investments in Uzbekistan including a major expansion of Uzbekneftegaz’s existing Shurtan Gas Chemical Complex (SGCC) and the proposed construction of a new gas chemicals facility. The signed cooperation agreement for the projects includes “the creation of a gas chemical complex using methanol-to-olefins (MTO) technology, and the expansion of the production capacity of the Shurtan Gas Chemical Complex”.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC