Meat, dairy and rice production will bust 1.5c climate target
Emissions from the food system alone will drive the world past 1.5C of global heating, unless high-methane foods are tackled. Climate-heating emissions from food production, dominated by meat, dairy and rice, will by themselves break the key international target of 1.5C if left unchecked, a detailed study has shown. The analysis estimated that if today’s level of food emissions continued, they would result in at least 0.7C of global heating by the end of the century, on top of the 1C rise already seen. This means emissions from food alone, ignoring the huge impact of fossil fuels, would push the world past the 1.5C limit. Cows stand on a meadow in Wehrheim near Frankfurt, Germany, Friday, Nov. 4, 2022.
US wants hike in oil production
The United States wants to see a hike in oil production, including from OPEC countries, said a senior State Department official Monday. “As world economies recover, we’ll see more consumption. And therefore, we’d like to see supply meet demand,” said Jose Fernandez, the US Undersecretary of State for Economic Affairs, Energy and the Environment, on the sidelines of the CERAWeek energy conference, in Houston, Texas. “We would like to see more supply” of crude globally, including from OPEC+ — the 13 members of the Organization of Petroleum Exporting Countries and 11 non-OPEC allied countries — Fernandez said. OPEC+ decided in early October to cut production by two million barrels per day and has not changed its output level since. The price of a barrel of West Texas Intermediate (WTI), the benchmark US variety, is now worth about a third less than a year ago, in the early days of the Russian invasion of Ukraine.
Mexico natural gas production up 6.5pc in January
State oil company Petróleos Mexicanos (Pemex) supplied 4.03 Bcf/d of the total, up from 3.77 Bcf/d, according to data from upstream regulator Comisión Nacional de Hidrocarburos (CNH). Production from private sector operators averaged 224 MMcf/d, versus 226 MMcf/d a year earlier. The top five natural gas producing fields, all operated by Pemex, were Quesqui (682 MMcf/d), Ixachi (326 MMcf/d), Maloob (282 MMcf/d), Akal (266 MMcf/d) and Ku (192 MMcf/d). The country’s private sector gas producers include Verdad Exploration Mexico LLC. Verdad in February became the first non-state producer to develop gas in the onshore Burgos Basin and connect to the Cenagas national pipeline network. Experts such as independent energy analyst Rosenty Barrios have cited the resumption of bid rounds as a vital prerequisite for returning Mexico to a long-term path of production growth and easing dependence on gas imports from the United States.
Australian marginal iron ore revival begins
Australian mining firm CuFe has restarted its JWD operations in Western Australia (WA) and begun building a hedge book to cover future sales. It has swapped 10,000 dry metric tonnes (dmt) at $129.50/dmt and entered 20,000dmt of collars with a floor price of $110/dmt and a ceiling price of $129.50/dmt basis 62 percent Fe for March. Fenix Resources has locked in 30,000 dmt/month at a fixed price of A$171.17/dmt ($116/t) for the six months from July to December. This comes on time of the A$173.25/dmt for 50,000 dmt/month for the six months from January to June. “Our hedging arrangements secure a solid margin on a base level of our production and support our ability to continue to generate strong cash flows and profitability,” Fenix chariman John Welborn said. Fenix is the only marginal Australian producer to maintain production through the weaker iron ore period in the second half of 2022, underpinned largely by its hedging strategy. It reported a profit of A$10.9mn for July-December on iron ore sales of 659,000t, of which nearly half was lump and the remainder fines.
India can export more sugar
If domestic sugar production touches 33.6 million tonnes, then the country may have the leeway to export an extra 1 million tonnes of it this year, official sources said. According to official sources, sugar stocks in the country are at comfortable levels, even if the production fails to touch 33.6 million tonnes during the current sugar marketing year, which runs from October till September. Sugar production was 35.9 million tonnes in the 2021-22 marketing year. Sources in the Food Ministry said that a decision would be taken on sugar exports, once production data is made available next month. Sugar production was 24 million tonnes till February of the ongoing 2022-23 marketing year. Government has allowed export of 6 million tonnes of sugar this year.
Coal output crosses 100 m tonnes
India’s coal production exclusively from captive/ commercial coal blocks has crossed 100 million tonnes (MT) for the first time, according to the latest figures (till March 2, 2023) of the Ministry of Coal. The highest-ever single-day coal production from captive/commercial coal blocks was 5.09 lakh tonnes on March 2, 2023. The coal ministry anticipates producing more than 112 million tonnes from captive/commercial coal areas in 2022–2023, a rise of about 31 percent from the previous year. Even if India does not set up more thermal power plants, half of the country’s electricity generation will come from coal. According to ‘Future of Coal in India” co-authored by Rahul Tongia, Anurag Sehgal, and Puneet Kamboj, coal is entrenched in a complex ecosystem. In some states, it is amongst the largest contributors to state budgets.