Author Archives: Carlos De Sordi

New AP President Sommers Highlights Record Production for State of American Energy Address

New President Mike Sommers highlighted record production while calling on government officials to promote open markets and expand infrastructure during the 9th annual American Petroleum Institute (API) State of American Energy address.

Sommers spoke to more than 400 government and industry leaders at the annual event, his first as API president. He highlighted a record year U.S. energy production while also calling out continued efforts to reduce CO2 emissions.

“Every generation has its own defining challenges, and its own defining accomplishments,” Somers said. “We call this one ‘America’s Generation Energy’ because of a remarkable dual achievement: meeting record world energy demand while driving record CO2 emissions reductions.”

Read More: Looking Ahead to 2019

Sommers also discussed the findings of the 2019 State of Energy in America report, which included a Harris Poll of 1,000 American voters. The poll showed strong support for continued U.S. oil and gas production, including 78% of respondents saying they support the U.S. producing more, 83% saying they see natural gas and oil as important to the future and 84% supporting increased energy infrastructure development.

He also talked about the importance of effective trade policy, praising the United States-Mexico-Canada Free Trade Agreement while also decrying quotas and tariffs on steel. He closed by reiterating the importance of strong infrastructure and expressing confidence in the American energy sector.

To read a transcript of Sommers’ speech, click here.

 

 

 

 

Honda Introduces Dream Drive Prototype

Honda introduced a prototype of its Dream Drive interface at the Consumer Electronics Show (CES) 2019 in Las Vegas.

First introduced as a concept at CES 2017, Dream Drive will aim to provide services and entertainment to both drivers and passengers while reducing driver distractions. According to reports, potential services will include the ability for drivers to pay for goods and services and share their location with friends. Passengers will be presented with mixed reality games and other media, as well as radio control and other similar features.

Reports indicated the automaker is continuing to experiment with other features, including a points based rewards system through the interface.

Goldman Sachs Cuts Average Oil Price Forecast

Citing an increase in production and growth in the American shale market, Goldman Sachs significantly reduced its average oil price forecast for 2019.

According to reports, Goldman is now predicting and average price of $62.50 a barrel for Brent crude this year. They had initially predicted prices would average around $70. A statement from the bank called out higher inventory levels combined with reducing growth. West Texas Intermediate crude forecasts were also reduced from $64.50 to $55.50.

Despite the more pessimistic forecast, oil prices have begun to creep up after dropping to end 2018. Both Brent and WTI saw about 2 percent per-barrel price increases.

More than 95 million tons of steel manufactured in the United States in 2018

More than 95 million tons of steel were manufactured in the United States in 2018, the most since 2007 and in increase in 6.2 percent from 2017.

According to the American Iron and Steel Institute (AISI), American mills averaged running at about 78 percent production capacity, up from about 74 percent the year prior. While the increase is encouraging after an industry downturn, it hasn’t quite reached the 90 percent level that some experts consider indicative of a strong economy.

In recent years, production has averaged about 82 million tons. That was substantially less than the 98 million tons produced in 2007.

Looking Ahead to 2019

2018 was a year of change for the lubricant industry. Emerging technology, increased focus on American energy and a shifting automotive landscape have all left their mark on all of the industries in PetroChoice’s orbit. While 2018 saw major advances and market changes begin to take root, 2019 could be the year they come to fruition. Here are some things to look for going forward.

The Continued Rise of Autonomous Vehicles – Self Driving vehicles are here to stay and 2019 may be the year they become a permanent fixture, especially in commercial applications. Several automakers have begun partnerships with other companies on autonomous vehicle programs to make deliveries and provide other services. These vehicles could pose a significant challenge for fleet managers, as they will likely require sweeping changes to maintenance  strategies.  It’s also likely new safety standards or even laws will need to be considered.

Big Vehicles Make a Comeback – American automakers began a drastic shift back toward pickup trucks and SUVs in 2018 and that shift will likely become more extreme in 2019. Ford, in particular, has decided to shift almost all of its focus to larger vehicles as they plan to discontinue almost all of their small vehicle models. By 2020, only the Mustang and Focus will remain in production. Other automakers have also announced plans to slash the number of sedans, coupes and other small cars they produce. The shift back to larger vehicles could result in a shift in the lubricant industry, as these vehicles have different requirements than their smaller counterparts.

A Continued Surge in American Energy – Oil Prices were somewhat volatile in 2018, peaking in October before plummeting to end the year. One thing that has remained consistent is a renewed focus on oil and natural gas production in the United States. The United States is now the world’s largest crude oil producer with an average production of about 11.4 million barrels per day. For a brief period in November, it even became a net exporter of petroleum products for the first time since 1991. A new discovery in the already large Permian Basin will only add to American supply and allow its output to grow. The U.S. Energy Information Administration (EIA) is predicting average production will average about 12.1 million barrels per day in 2019.

New Technology will Require New Skills – New, more advanced technology has found its way into just about every industry. From automotive to manufacturing, mining to metalworking and everywhere in between, tech is advancing and becoming an essential part of doing business. That will certainly continue in 2019, particularly in the automotive industry where manufacturers continue to pack their vehicles with more and more gadgets. While all the new technology can increase efficiency and improve customer experience, it also means people in those industries will need to adapt their skills. Equipment and vehicles that use new tech are more difficult to repair and, at least initially, more difficult to operate. Mechanics, fleet managers, machinists and others will have to re-think the way they train and the skills they need to keep up with the changes.

 

 

 

AutoHaul network Officially Up and Running in Australia

Rio Tinto’s AutoHaul network is officially up and running in Australia, making it the world’s first automated long distance, heavy haul rail network.

The mining giant, which has its headquarters in London, had completed its first successful automated run with a load in July. According to reports, they have been gradually increasing the number of autonomous trips since then. The average journey takes around 40 hours. The program was proposed ten years ago and is estimated to have cost about $940 million.

Related: Autonomous Mine Trains OK’d in Australia

Rio Tinto operates 200 locomotives to transport ore from its 16 mines in Western Australia. The autonomous trains are equipped with cameras and monitored from an operations center.

Ford to Recall 875,000 F-Series Trucks Over Fire Risk

Ford will recall 875,000 F-Series trucks due to fire risks caused by heater cable issues.

According to reports, the recall will include F-150 models from 2015 through 2019, as well as F-250,350,450 and 550 trucks from 2017 through 2019.  The company said water and contaminants can get into the heater cable and cause corrosion. This can cause electrical shorts and lead to fires.

The issues occur in the vehicles’ engine block heaters. These devices help start the engine and allow trucks to warm up more quickly in low temperature conditions. There have been no reports of fires yet in the United States, but three reported incidents were logged in Canada. The recall is expected to begin on Jan. 7.

Meat Processing Industry Reaches all Time Low Number of Non-Fatal Accidents

A new report from the Bureau of Labor Statistics shows the meat processing industry reached an all-time low number of non-fatal accidents and illnesses at work.

According to the report, which tracks numbers from the previous year, 2017 saw 4.8 cases of occupational injuries per 100 employees amongst meat processors. That is down from 5.3 cases in 2016, a previous record low. Those numbers count only full-time employees.

The number of injuries in meat and poultry facilities has been on a precipitous decline. Incidents have been cut in half over a 12 year period.

German Firm to Pay a $35 Million Fine for Role in VW Scandal

Germany-based engineering firm IAV GmBH will pay a $35 million fine after pleading guilty to one count of conspiracy to defraud the United States for its role in the Volkswagen emissions scandal.

According to reports, the company allegedly worked alongside Volkswagen engineers to develop software to temporarily alter performance of VW’s Gen 1 diesel vehicles. This allowed the vehicles to pass emissions testing. Volkswagen owns a stake in IAV. The company, which has offices in Detroit, is expected to enter an official guilty plea early next year.

IAV began assisting in the creation of the software late in 2006. According to a statement from the U.S. Justice department, IAV knew the purpose of the software by 2008, but continued to work on the project.

Fourth Quarter Orders for Machine Tools Reach $1.6 billion

Fourth quarter orders for machine tools and metalworking equipment totaled $1.6 billion, the highest total since 1998.

The huge quarter brings the year to date number in 2018 to $4.5 Billion, a 24 percent increase over 2017. According to reports from the Association for Manufacturing Technology, the huge number comes despite a month-to-month decline from September to October. They attributed the increase to more spending in various industries, including off-road and highway construction, power generation, aerospace and medical.

According to the report, the AMT believes the increase in orders are due to current need and not speculation on the future state of the industry.