Oil Daily | Russia's Arctic LNG 2 Halted Amid Sanctions; New Mexico Considers Output-Reducing Drilling Limits

【Oil-Producing Countries Dynamics】

Russia's Novatek has suspended its Arctic LNG 2 project, delaying plans to increase its global LNG market share due to U.S. sanctions and logistical challenges. The halt reflects difficulties in securing buyers and necessary vessels, with no restart planned until next summer. Other Russian LNG projects continue operating.

New Mexico is considering new drilling restrictions that could reduce oil output by 5.4%, impacting potential revenue. The proposed setbacks aim to protect public areas, but industry leaders warn of severe economic consequences. The state faces a balancing act between oil revenue and ambitious environmental goals.

【Latest Oil Policies】

Cepsa and Repsol, major Spanish oil companies, threaten to delay green hydrogen projects if Spain's windfall tax becomes permanent. The tax has led to investment hesitancy, with companies prioritizing international projects. This situation mirrors broader European concerns about policy uncertainty affecting green energy investments.

【Industry News】

The EU and China are negotiating alternatives to proposed tariffs on Chinese electric vehicles. The talks aim to address market fairness, with ongoing discussions despite potential import duties. The situation has raised concerns of a trade dispute, with China investigating EU imports.

The Biden Administration has approved the Rhyolite Ridge Lithium-Boron Project in Nevada, the first such project in over 20 years. This supports U.S. efforts to secure domestic lithium supply, reducing reliance on China. The project aims to supply materials for over 370,000 electric vehicles annually.

【Others】

Israel's military actions in Lebanon are targeting Hezbollah's infrastructure to weaken its political and economic influence. The strategy aims to degrade Hezbollah's military and political power without attempting complete dismantlement. Internal division exists within Israel regarding the conflict's expansion and resolution strategies.