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Hello Power Up readers! The banking turmoil has eased somewhat, at least for the moment, which is getting people to focus once again on what matters – a lot of mixed signals on economic growth. That’s kept oil prices under a lid, and natural gas isn’t exactly rallying either. Here’s a bit of what’s happening on this Monday… 

Russia’s Alexander Novak, shaking it all off.

One of the consequences of the sanctions on Moscow following Russia’s invasion of Ukraine has been to squeeze its output potential, so it has responded by voluntarily cutting the number of barrels on the market. As a result, now it is “very close” to achieving its target of cutting crude oil output by 500,000 barrels per day (bpd) to around 9.5 million bpd, Reuters reported Deputy Prime Minister Alexander Novak as saying late last week.  

That’s from about 10 million bpd in February, which would presumably tighten markets and cause prices to rise – although they remain somewhat lower than recent months. Russia relies on its export of oil and gas to raise revenue for its budget, which has been hamstrung by both war spending and the lack of this revenue. Russia has found new buyers for what it is selling – with exports on diesel and gasoil to Brazil, Turkey and Africa set to hit record levels this month.  

Markets have rebounded a bit in recent days as Russia plans to place tactical nuclear weapons in its client state, Belarus, which has boosted tensions.  

That’s French utility EDF’s Penly Nuclear Power Plant in Petit-Caux, near Dieppe, France. REUTERS/Benoit Tessier

There’s no easy way out in France right now, where strikes are hitting maintenance plans at power provider EDF’s nuclear plants, causing production to drop just as the major utility hoped to see output rebound. France relies more on nuclear power than any other nation in Europe – but there have been widespread protests nationwide after the government said it would raise the retirement age by two years. 

At least 14 nuclear reactors in EDF’s fleet of 56 have had to deal with some delays, as Reuters reported here. The country, which is building several more nuclear plants in coming years, typically generates more than 70% of its electricity from nuclear – along with 15% of Europe’s total power through exports. But the protests have caused nuclear power output to fall even more than last year, when numerous reactors were offline for repairs.  

On Friday the average hourly nuclear availability until the end of the year was down by around 4% to 44 gigawatts (GW) from 46 GW in January when the strikes began, ICIS analysis showed – and the EDF’s minimum production target of 300 terawatt-hours (TWh) may become challenging if more plants go offline.  

That’s Brazilian President Luiz Inacio Lula da Silva being congratulated by China’s Vice President Wang Qishan on his election. The two countries are looking at inking renewable energy development deals. REUTERS/Ricardo Moraes

Brazil and China are looking to link up on a fund that will finance green industry and renewable energy development in both countries, Reuters reports here, citing two senior Brazilian officials.  

“Our expectation is that we can have a climate change agenda that is strategic for the world because it is undoubtedly one of humanity’s greatest challenges today,” Brazilian Environment Minister Marina Silva told Reuters.

The country currently has a commitment from the White House on climate policy and forest protection – and now they’re looking to ink additional deals with China, which is the world’s biggest emitter of greenhouse gases.   

That’s ex-Venezuelan Oil Minister Tareck El Aissami back in January. REUTERS/Leonardo Fernandez Viloria

Venezuela’s in need of dollars to shore up its exchange rate – and that’s moved the country to crack down on alleged corruption at the state-run oil company PDVSA, Reuters reports here, citing four sources.  

This past week, more than 20 PDVSA officials have been arrested, apparently in an investigation into big losses the country had to deal with last year. PDVSA has been a hot mess for a long time, beset by lack of investment, economic turmoil and U.S. sanctions that have limited revenue for the country’s primary export. It now has about $21.2 billion in unpaid bills. The probe has led to the resignation of oil minister Tareck El Aissami, who had served the government for two decades. 

Just about all of PDVSA’s commercial crude and fuel exports have been halted as a review of contracts is underway.  

“We think Iraq’s current target looks hard, if not impossible to achieve.”  

Iman Nasseri, managing director for the Middle East with consultancy FGE, on Iraq’s long-range target for 7 to 8 million barrels of daily oil production. The country currently produces about 5 million bpd.  

Wind turbines in Kildrummy, Scotland, a wee bit west of Aberdeen. REUTERS/Russell Cheyne

A baker’s dozen of companies have been granted leases to develop offshore wind off the coast of Scotland, as Reuters reports here, among them some of the world’s biggest oil companies – BP and TotalEnergies – along with a bunch of UK-based renewable names.  

The largest investors are Flotation Energy and Cerulean Winds, who are spending respectively almost £96 million ($118 million) and £138 million, respectively – which will develop projects that would have leases for 25 to 50 years. By contrast, the big oil companies’ investment is much more modest, with BP Alternative Energy Investments set to initially invest £1.7 million and TotalEnergies £200,000. 

Separately, Tokyo Electric Power Company said Monday that it won the rights to develop up to 1.9 gigawatts (GW) of floating offshore wind capacity across two separate projects in Scotland.  

Reuters Auto File

Joe White makes sense of the fast-paced world of automotive technology, mobility and transportation news.

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