The Paradigm Shift Channel ⏳

2022-08-25 18:11:43 Canada's FM said Canada will ship the five gas turbines belonging to Gazprom from Montreal back to Germany , despite demands from Ukrainian ambassador in Ottawa to hold onto them. Joly revealed that the decision was made after a request from German Chancellor Olaf Scholz.

Six Siemens turbines were in Montreal for maintenance when Canada announced an embargo against Russia. At Germany’s request, Ottawa announced an exemption for the turbines in July, and sent one of them over, but Gazprom declined delivery, citing irregularities in documentation.

Background:

German Chancellor claims one turbine is ready to be shipped to Russia from Germany.

Gazprom claims declare 'force-majeure' on Nord Stream 1 now at 20% capacity.

Gazprom stopped the operation of a second Siemens turbine for servicing.

Gazprom is awaiting the full volumes of function testing/safety/legal documents .

Western sanctions have been stalling the return of the turbine. Open / Comment

2022-08-25 17:24:48 USA - Shortage of transformers is jamming up home building and threatening to cause other problems. In some cases, wait times for the parts are over a year, while costs have spiraled up by over 500%.

American Public Power Association - says roughly 80% of its members reported earlier this year they had less equipment on hand than in 2018, before the pandemic interrupted supply chains. (Investor-owned utilities have also reported similar shortages.)

Background:
U.S.A. - A surge in decommissioning fossil fuel power plants has outpaced new clean energy generation capacity.

US- Utilities are warning of supply constraints for equipment, which could hamper efforts to restore power during outages .

The North American Electric Reliability Corporation (NERC) report from June warning of unreliable sections of electricity grid. Open / Comment

2022-08-25 17:04:41 India has approved a policy of restricting wheat flour exports, in a bid to bring down prices on the domestic market.

Ukraine’s crucial grain has been leaving its ports again since recent Black Sea deal. Farmers may cut plantings further if sales remain slow. Domestic prices are slowly improving. Most of Ukraine’s wheat consists of winter varieties, which are sown from now and then lie dormant during the coldest months, before resuming growth in spring.

USA - Southern, eastern Idaho wheat expectations tempered by crop quality problems associated with kernels accumulating starch amid excessive heat, compounded by untimely rains and hail late in the season.

Romania has reaped 9 million tonnes of wheat this year, as weather & higher production costs caused crops to fall by roughly a fifth from last year.

Importers in China bought several cargoes of French wheat last week, the 2nd time this summer that Chinese buyers have taken advantage of a price drop. Open / Comment

2022-08-25 16:45:04 India cuts U.S. crude imports by 50% as it buys Urals crude from Russia which have been offered at record discounts.

U.S. crude oil inventories, excluding those in the SPR, were at only 425 million barrels, or 6% below the five year average. The SPR is expected to shrink to a 40-year low by the end of October, with inventories then at 358 million barrels, compared to 621 million barrels a year ago.

Iran Nuke Deal possibility - Iran’s state oil producer will try to win back customers in Europe, in the event sanctions against Iran is lifted. The idea of a production cut appears to be gaining momentum in Azerbaijan, Libya, Algeria, and Congo.

Saudi Arabia suggested that OPEC+ could look at making production adjustments due to the disconnect between the physical and paper crude markets. Open / Comment

2022-08-25 16:25:01 Since late 2020, the US has been experiencing unusually hot and dry weather. The extreme circumstances have spurred demand for water and cooling, leaving reservoirs emptier than usual. While it has risen this high before, it rarely stayed there for so long. During the drought of 2018, it exceeded the threshold for only five weeks.

Whiting, Vermont - Beef cattle pasture not growing back due to drought. Cattle feed quality and volume are both down about 50% from a normal year. Their corn crop is also taking a hit.

At the Colorado River Basin, the Gila River Indian Community is protecting their own water resources. The tribe—located just south of Phoenix—would stop voluntarily contributing water to an important state reservoir.

Recently:
Arizona and Nevada face deeper cuts on the amount of water they can draw from the Colorado River.

The water levels in Lake Mead & Lake Powell are at their lowest ever, affecting hydroelectric power stations. Open / Comment

2022-08-25 00:23:01 The outlook for cotton production in Texas, the nation’s largest producer, took a turn for the worse . Only 11% of Texas crops were rated good-to-excellent in the week to Aug. 21, down from 14% a week earlier, matching the lowest since 2011.

USDA projected Arkansas' state average yield to be the second highest on record at 1,195 pounds per acre. “Those who started irrigation on time have a good crop. Those who started late cut their effective bloom period short with an early cutout. This will impact our yield average,” he said.

India is responsible for over 40% percent of the world's total production of cotton, and is now India is dealing with flash floods as well as a pest infestation that has caused severe damage to crops. India had to resort to importing supplies. Open / Comment

2022-08-24 22:51:32 Europe- New crop report forecasts corn yields will drop 16% below the five-year average. That compares with a July forecast of an 8% decline. It will boost feed costs for livestock herds, adding to even more woes for farmers who are plagued with elevated diesel and fertilizer prices.

US- Crop tours show much of the Western crop belt is plagued with drought conditions, especially in parts of Nebraska and South Dakota. South Dakota corn yield potential was estimated at 118.6 bushels per acre, well below the three-year average of 161.8 bushels.

Chicago grains futures extended gains today, with corn reaching its highest in nearly two months. Indiana corn yield prospects are lower than last year and below the three-year average.

Indonesia has the potential to export corn on account of a production surplus reaching three million tons. Open / Comment

2022-08-24 02:34:48 Lithium carbonate, used for the production of the batteries used in EV's, has risen in the last few months. Lithium mining results in environmental pollution. Improperly disposed lithium batteries can cause landfill fires . The resultant toxic chemicals released into the air can impact air quality.

Australia and Chile are the countries best positioned to capitalize on the lithium rush. Lithium producers in the Sichuan province of China, home to factories of some of the world’s biggest companies and the producer of about half the country’s lithium, have either suspended production or lowered their operating rates in response to a electricity crunch.

Recent lithium news:
European Commission (EC) may classify lithium as a Category 1A reproductive toxin. Zimbabwe lithium reserves & China investment.

Tesla and automakers affected by high lithium prices.

EV's face increase costs due to rising commodity prices of essential materials for EV production. Open / Comment

2022-08-23 01:15:53 Norwegian owned Norsk Hydro is planning to shutter a 175,000-ton annual capacity aluminum smelter in Slovakia. High electricity prices is a major factor.

The co. is also facing a workers strike at the largest and most modern aluminium plant in Europe located in Sunndal, Norway. The strike will initially lead to a gradual shut-down of 20% of production and a halt in the shipment of products to customers.

The Budel zinc smelter in the Netherlands , controlled by Trafigura Group’s Nyrstar -- will be placed on care and maintenance from Sept. 1 indefinitely.

Europe has lost about half of its zinc and aluminum smelting capacity within the past year.

Europe’s largest copper producer, Hamburg-based Aurubis AG, aims to minimize gas use.

Each ton of aluminum takes about 14 megawatt-hours of power to produce, enough to run an average UK home for more than three years. Zinc requires about 4 megawatt-hours of power per ton. Open / Comment

2022-08-23 00:36:46 An 8-day strike at the UK's largest container port, Felixstowe, could see Britain lose out on nearly £700m ($824m) in trade and "severely disrupt" the supply chain. Maersk, the world’s second-largest container shipping firm, said it would avoid the port and instead deliver UK-bound goods to other ports.

Around 1,900 members of the Unite union based at the Port of Felixstowe in Suffolk walked out yesterday in an ongoing dispute over pay. The industrial action is the first of its kind at the port since 1989. Union members which include crane drivers and machine operators voted by more than 9-1 in favour of strikes.

“Plus all of the products that are on the sea which are perishable, which won't be delivered, which will all be waste. Felixstowe, on the Suffolk coast, handles the equivalent of 4m 20-ft shipping containers every year. Open / Comment