gas

The damage to the oil and gas industry will take years to repair

by

The Third Gulf War is here, and while financial markets cling to the hope of a quick resolution, the physical reality tells a much darker story. The world is currently facing the largest supply disruption in the history of the oil market. As detailed The New York Timesbased on the analyzes of energy expert Jason Bordoff, the de facto blockade of the Strait of Hormuz has taken about 20 million barrels per day off the board, which represents 20% of world consumption. To put this in perspective, the International Energy Agency (IEA) recalls that the historic Arab embargo of 1973 “barely” withdrew 4.5 million barrels per day. The logistical, political and infrastructure damage that Operation Epic Fury has unleashed in the Persian Gulf is so profound that, regardless of what is signed in the dispatches, it will take years to return to normality. The new global funnel. Even if the war ended today and the Strait were 100% reopened, untangling the monumental logjam would take months. As Rory Johnston, oil market researcher, explains, to the magazine New Statesman“we are talking about two to three months just to renormalize the global system.” Oil tankers are piled up on both sides of the strait, and a sudden restart would cause a collapse at unloading terminals, reminiscent of the worst bottlenecks of the Covid-19 pandemic. It won’t be suddenly. To this we must add a key factor: the ships will not sail again the day peace is signed. Maritime insurers will require months of proof that the Strait is safe before returning to cover oil tankers without imposing unaffordable premiums. But the situation is even more complex. As detailed in a recent analysis by my colleague Miguel Jorge in Xatakathe dynamics of the Strait have drastically mutated. Iran has turned this artery into a kind of maritime “VIP discotheque.” It is no longer a free international transit route, but rather a selective access system where Tehran decides who passes. While US allies and Israel are banned, countries like Spain – which refused to participate in the military coalition – have received “passes” for their ships. The root of the problem. If the recovery will be so slow it is, fundamentally, because the infrastructure is burning. Unlike previous conflicts, Iran’s strategy is based on an asymmetric war that seeks to destroy the energy pillars of its neighbors. The most devastating example is found in Qatar, where the Iranian drone attack on the Ras Laffan facilities—the largest Liquefied Natural Gas (LNG) export plant in the world— has caused damage which will take between three and five years to repair. Furthermore, we must add temporary closures in Saudi refineries like Ras Tanura that guarantee long-term disruption. The domino effect has already reached the earth. Given the impossibility of removing the crude oil by sea, the storage tanks are bursting. Iraq has been forced to close wells and cut production by 70% simply because there is nowhere to put the oil. This is what is known in the industry as “locked-in” oil, and reactivating all that stopped machinery requires weeks of complex technical work. The specter of chronic inflation. The impact of this paralysis goes far beyond the gasoline pump and will condition the economy for the next five years. As he warns The Economistthe sustained rise in energy prices threatens to entrench global inflation, quickly pushing it to an unbearable 5% or 6%. This means that the cost of living, interest rates and commodity prices will be marked by this crisis for years, slowing down any attempt at real recovery. Added to this is a silent time bomb: food. Not only crude oil transits through the Strait of Hormuz, but a third of the world’s fertilizers. If global agriculture runs out of this vital input, we face a global food crisis that will distort harvests and supermarket prices in the coming seasons. On the threshold of $200 per barrel. If the blockade persists, economic pain will be inevitable. Macquarie Group analysts warn in Bloomberg that if the conflict extends until June, the price of crude oil could reach a whopping 200 dollars. The objective of this extreme price is none other than to force the “demand destruction“: that it be so expensive that people and industries simply stop consuming. The most pessimistic voices warn of an economic catastrophe. Larry Fink, the CEO of the financial giant BlackRock, warned in an interview with the BBC that if the barrel settles at $150, the world will plunge into a “severe and deep recession.” And the consequences are already visible, as jet fuel in Asia has already exceeded $200. Meanwhile, magazines as Fortune report that Goldman Sachs has raised the probability of a recession in the US to 30%. The Wall Street mirage and useless patches. It is fascinating and terrifying to observe the disconnection between physical reality and financial markets. Wall Street lives “spellbound” by algorithms and verbal intervention (jawboning) by Donald Trump. All it takes is a tweet from the American president announcing vague peace plans—quickly denied by Iran—for the stock markets to rise and the price of a barrel to drop momentarily. Investors blindly trust the phenomenon WAD (“Trump Always Chickens Out”), believing that the president will back down before sinking the economy. But tweets don’t fill the tanks. To try to mitigate the blow, the International Energy Agency has coordinated the historic release of 400 million barrels of its strategic reserves. It sounds like a lot, but as the experts consulted by Al Jazeerathat amount barely covers 20 days of the oil that has stopped flowing through Hormuz. It’s a band-aid for an arterial bleed. In fact, such is the desperation of the West that the US administration has gone so far as to temporarily lift sanctions on Russiaallowing it to sell its crude oil on the open market in order to try to relieve the pumps. The big silent winner. While the West is suffocating with inflation and supply problems, just a few … Read more

Taiwan produces 90% of the world’s advanced chips. Its natural gas reserves last exactly 12 days

by

In global energy markets, alarm bells do not always ring loudly; Sometimes all you have to do is watch where the boats are sailing. While the West observes the already known Third Gulf War With a mixture of horror and remoteness, Asia is suffering the direct impact. The colossal Ras Laffan facility in Qatar—which processes about a fifth of global liquefied natural gas (LNG)— has suffered damage by 17% of its infrastructure after the Iranian attacks. 12 days. At the exact center of the geopolitical target is Taiwan. The island has a practical monopoly on the world’s most advanced chips, but its “silicon shield” hangs by an extremely fragile logistical thread: an energy supply chain whose legal security threshold requires a minimum of just 11 to 12 days of natural gas reserves. The fatal panorama in Asia. Asia is on the front line of this fuel crisis as it buys more than 80% of the crude oil that transits through the blocked Strait of Hormuz. The nations of the region have had to quickly dust off the survival manuals of the COVID-19 era. Philippines has become the first country in declaring a state of “national energy emergency”, warning of an imminent danger and turning to coal to reduce costs. In South Korea, the government has asked its citizens Take shorter showers, use public transportation, and avoid charging your phones at night. Sri Lanka declared on Wednesdays as a holiday to save fuel, and in Thailand, officials have received the order to take off their suits, use the stairs and telework. china from chill. However, the contrast with China it’s abysmal. While its neighbors panic, the Asian giant observes the chaos coldly. Five years ago, Xi Jinping ordered to secure the country’s “energy rice bowl.” Today, thanks to a massive accumulation of sanctioned crude oil (bought cheaply from Russia or Iran), the shielding of renewables and a vehicle park where electric cars are the majority, China has built an invisible Great Wall that isolates it from fossil volatility. A trade war against the clock. This hydrocarbon drought not only turns off the lights, but paralyzes the industry. According to Commonwealth Magazinethe petrochemical and plastics sector has been the first major victim. The giant Formosa Petrochemical has had to issue force majeure notices after running out of raw materials, and prices of key materials such as ABS (used in car parts) have soared by up to 50%. At a logistical level, a trade war has broken out ruthless battle between Europe and Asia to seize the few available LNG shipments. Spot prices in Asia have doubled, and ships originally sailing to Spain or France are diverting their course to the Pacific in the face of more lucrative offers. In this Darwinian scenario, South Asia is acting as the global “shock absorber”: price-sensitive countries, such as Pakistan or Bangladesh, cannot compete and are forced to destroy demand or paralyze industries, leaving gas available for the giants that can afford it. To mitigate the blow on their own streets, governments like Japan They plan to inject billions in subsidies, while Taiwan has committed to absorb 60% of the increase in crude oil prices. Taiwan’s “Achilles heel” and the check on chips. If there is a critical point in this crisis, It is the island of Taiwan. In 2025, Taiwan relied on imports to meet 95% of its energy needs, including more than 99% of its oil and natural gas demand. Before the war, it received more than 38% of its annual natural gas supply and approximately 70% of its crude oil from the Middle East. The structural problem is time. While nations like South Korea have the capacity to store gas for 52 days and Japan for three weeks, Taiwan is walking on the wire. As pointed out Bloombergis an almost non-existent room for maneuver for an island where electricity generation based on natural gas has expanded to almost 48%. An immediate buffer. To avoid collapse in the short term, the Taiwanese Ministry of Economy has acted quickly with a checkbook. Minister Kung Ming-hsin has confirmed that supply planning is already covered for March, April and May, and they have even secured half of their replacement agreements for the month of June. Away from the imminent blackout, the island’s reserves have managed to remain above the safety threshold of 12 days since the fighting broke out. However, this short-term patch does not turn off the alarms. The real danger lurks in the summer, when high temperatures historically trigger electricity demand. A prolonged blackout: global chaos. The semiconductor sector contributes around 20% of Taiwan’s GDP. Taiwan Semiconductor Manufacturing Company (TSMC), which produces about 90% of the chips most advanced in the world (vital for AI and military technology), alone consumes approximately 9% of all electricity on the island. But gas is not the only missing input; Added to this is the disruption in the supply of secretive but vital raw materials such as bromine and helium (a third of which is processed in Qatar). The experts They warn that if the interruption of helium exceeds 14 days, the chip production lines will go into technical stoppage. With summer just around the corner and electricity demand about to skyrocket, the island operates at its limit. The pressure is so immense that the historically reluctant Taiwanese government is already openly debating the reactivation of nuclear energy, recognizing that the explosive growth in electricity demand linked to the development of Artificial Intelligence is changing all the rules of the energy game. The geopolitical board: opportunism and contradictions. Beijing has not been slow to intervene. Taking advantage of the panic, the Chinese government has thrown a poisoned lifeline. According to Chen Binhua, spokesperson for China’s Taiwan Affairs Office, collected in South China Morning Postthe Asian giant offered the island a stable, abundant and cheap energy supply in exchange for accepting “peaceful reunification.” Taipei’s response was blunt: Vice Minister of Economy, Ho Chin-tsang, rejected the offer, calling it “cognitive … Read more

The problem is that there are already gas stations that have absorbed them

by

The liter of diesel reached 1.96 euros on average last Saturday, its highest since the conflict broke out in Iran, and gasoline was dangerously close to two euros. However, that same weekend, it came into effect the government’s tax reduction. Prices have dropped, but now the question is how long it will last. Why has fuel increased? The conflict in the Persian Gulf has increased diesel prices by 44.8 euro cents per liter, and gasoline by 28.2 euro cents, according to a study published by the OCU. The trigger is the war in Iran, which has strained the crude oil markets through the Strait of Hormuzan artery through which nearly 20% of the world’s oil transits. In just three weeks since the start of the conflict, prices at the pumps ended up skyrocketing to levels not seen since the Ukraine crisis. What has the Government done? The Executive approved on Friday, March 21 a shock package which includes, among its most important measures, lowering the VAT on fuel from 21% to 10% and temporarily eliminating the special tax on hydrocarbons. The estimated savings were around 30 cents per liter, which represents around 20 euros of savings per tank, according to the estimates of the Government itself. The measure published in the BOE on Saturday it came into force immediately, although it will have to be validated in Congress this Thursday. The Government has set the validity of this temporary reduction until June 30, at which time it will review the impact of the measure depending on how the energy markets evolve. How much have prices really dropped? This Monday, March 23, the average price of 95 gasoline in Spain was located at 1,595 euros per liter and diesel at 1,786 euros. The drop is real and significant. And in fact, if you go to almost any gas station, you will see that the prices have nothing to do with those of a few days ago. However, it is worth putting it in perspective. And the average price of a liter of diesel on March 19 was 1,917 euros, and the VAT reduction reduces it by about 17.4 cents. That is still well below the average increase of 45 cents that we were able to verify between March 2 and 19. Likewise, the tax decrease does not fully compensate for what fuel prices have increased in recent weeks. ANDl rocket and feather effect. The fact that VAT drops on paper does not guarantee that the price at the pump will drop just as quickly or completely. Economists call this the rocket and feather effect: When the price of oil rises, fuels immediately reflect that increase, while the declines are much slower. Part of this slowness also has an explanation: the cut in the hydrocarbon tax has not yet been applied to all gas stations because many are depleting the stock they had bought with the previous tax. ANDthe first day of the descent. In about 42% of service stations the VAT reduction from 21% to 10% did not fully materialize the first day, and the situation was even worse in agricultural and transport cooperatives, which in most cases had not yet passed on the discount. Some have attributed this to the lack of time to adapt the computer systems (the announcement came on Friday, the publication in the BOE on Saturday and the reduction was to be effective on Sunday) since many stations had purchased fuel at higher prices just the day before. The director of the Spanish Confederation of Service Station Employers (CEEES), Nacho Rabadán, has indicated that in many cases there have been service station managers who the day before purchased fuel with a price increase greater than the impact of the VAT cut. And a quarter of gas stations took the opportunity to go up. The most striking thing comes from FACUA. And it is that according to the data According to the consumer organization, 1,837 gas stations that communicated new prices to the Ministry on Sunday took advantage of the VAT reduction to apply a new increase. Of them, 177 completely absorbed the tax reduction by maintaining their prices without adjustment, and another 40 even increased it compared to the previous price. In the specific case of diesel, FACUA calculates that, if the tax reduction had been fully transferred, the decrease would have reached 17.8 cents, placing the average price at 1.785 euros; However, the real price was somewhat higher. FACUA concludes that lowering taxes without setting price ceilings is “exactly the measure that speculators have been demanding.” 2022 is not that far away. We have the most recent precedent in the bonus of 20 cents per liter that the Government applied during the Ukraine crisis. This cost us around 4.25 billion euros, according to a study of the economists Juan Luis Jiménez, Jordi Perdiguero and José Manuel Cazorla-Artiles. The effectiveness of the bonus was, to say the least, questionable. And in addition to the study, other independent reports from Esade and Funcas They also concluded that a significant portion of that aid did not reach consumers. The CNMC began an investigation that concluded last February with a fine of 20.5 million euros to Repsol group companies for abusing their dominant position. This history is precisely the reason why the Government has opted this time for a direct tax reduction that acts on taxes instead of repeating the universal bonus. From the CEEES, Rabadán had already qualified the 2022 bonus as “well-intentioned, but poorly designed and worse executed.” What a difference the measurement makes this time. Unlike the 2022 bonus, the VAT reduction acts directly on the tax included in the final price, which theoretically makes it more difficult for gas stations to appropriate the benefit. However, given FACUA’s complaint after the events of the first day of the sale, we see that the fact that it is more difficult for the price to be absorbed does not mean that it is not impossible. Given the … Read more

We have been avoiding the definitive energy crisis for months. Iran’s missile at Qatar’s largest gas plant threatens to detonate it

by

We had been holding our breath for weeks, assuming the logistical tension in the Strait of Hormuz like the new normal. However, the war has crossed an irreversible red line. We have gone from a trade blockade to the physical destruction of the world’s energy engine, and the consequences are already being felt in the global economy. The impact has been immediate. The price of natural gas in Europe (the TTF reference contract) has shot up 35% in a matter of hours, resurrecting the worst ghosts of the Ukrainian crisis of 2022. The magnitude of the disaster is such that Susan Sakmar, a professor at the University of Houston, warns in Bloomberg that this attack could be “a turning point for the LNG sector, similar to the attack against Nord Stream or perhaps even worse”, as it is a sudden interruption with no signs of a short-term solution. The chronological climb. To understand how we got here we have to look at the chain of events of the last 48 hours. The original trigger, as revealed The Wall Street Journalwas an attack by Israel against the South Pars field, the jewel in the crown of the Iranian energy industry, with the aim of suffocating the sources of financing for the Revolutionary Guard. And it is not just any objective. The analyst Joaquín Coronado emphasizes that South Paris (shared with Qatar, where it is called North Dome) is the largest natural gas field in the world, hosting 10% of global reserves. 70% of Iranian domestic consumption gas comes from there and generates 80% of the Qatari State’s income. A withering response from Tehran. As pointed out Financial TimesIran launched ballistic missiles against the giant Ras Laffan industrial complex in Qatar, the largest liquefied natural gas (LNG) facility in the world and home to key infrastructure such as Shell’s Pearl GTL plant. State-owned company QatarEnergy confirmed “extensive damage” and fires at its facilities. Panic spread throughout the Persian Gulf. According to Reutersthe Iranian Revolutionary Guard issued public evacuation orders, declaring vital energy facilities in Saudi Arabia (such as the Samref refinery and the Jubail complex), the United Arab Emirates (the Al Hosn gas field) and Qatar as “legitimate targets.” Shortly afterward, Riyadh intercepted missiles aimed at the Saudi capital. The market has felt the blow. Oil prices have gone crazy. As detailed oil price, a barrel of Brent surpassing the barrier of 110-113 dollars, which represents an increase of almost 60% in this month of March. However, the real problem goes beyond the daily price. Martin Senior, of Argus Media, warns of a “new level of impact”. It is no longer just about the logistical closure of the Strait of Hormuz (through which 20% of the world’s oil passes); The problem is that the time to repair these destroyed facilities could last much longer than the war itself. And the worst omens already have figures. As has revealed exclusively in Reuters CEO of QatarEnergy, the Iranian attack has knocked out 17% of the country’s LNG capacity for a period that could last up to five years. The domino effect. This situation is taking third countries on their way. As explained CrownedIraq has suddenly lost 3,100 megawatts of electricity due to the Iranian supply cut, while Türkiye will be forced to compete fiercely for emergency LNG shipments. In Europe, the panic is evident: the bulletin Europe Express of the Financial Times reveals that war has blown up the EU leaders’ summit in Brussels, where debate on how to improve competitiveness has been completely overshadowed by fear of energy bills and domestic pressure on the emissions trading system. Geopolitics to the limit. Diplomacy appears broken and America’s allies are losing patience. According to the Wall Street JournalArab governments are “furious” because they feel that the US and Israel strategy has put a target on their backs. For its part, Al Jazeera includes the statements of the Saudi Foreign MinisterPrince Faisal bin Farhan, who has warned Iran that the Gulf’s patience “is not unlimited” and they reserve the right to take military action. Qatar, for its part, has expelled the Iranian diplomats, giving them 24 hours to leave the country. In the midst of this chaos, Washington’s role is erratic. President Donald Trump went to social media to deny prior knowledge of the Israeli attack on South Paris. However, how to collect WSJ, Trump issued an ultimatum to Tehran: if it attacks Qatar again, the US will “massively blow up the entire” Iranian oilfield. Faced with rising prices, the White House is seeking desperate measures. The column of Javier Blas in Bloomberg reveals a controversial plan of the US Treasury: to intervene directly in the financial markets by betting on the downside (shorting) in oil futures to artificially make gasoline cheaper before the elections. An idea that experts such as the CEO of CME Group describe as a “biblical disaster” that would destroy confidence in the free market. The peripheral context. To get the full picture, you have to look beyond the explosions. Verisk Maplecroft Analyst warn in Reuters that the greatest danger right now is that the attacks will extend to Saudi Arabia’s East-West pipeline or to Red Sea ports. These were the only viable alternative routes to avoid the blockade of the Strait of Hormuz, through which 20% of the world’s oil normally transits. In an attempt to cushion the blow domestically, the Trump administration has temporarily suspended the century-old Jones Act (Jones Act) for 60 days, allowing foreign-flagged ships to transport oil and gas between US ports to reduce costs. The dead end. The panorama is bleak. As they reflect on Five Daysthe apparent lightness with which this conflict has developed has dragged us into a dead end. Iran has shown that it does not need to win a conventional war; It is enough for him to set the energetic heart of the planet on fire. Even if a ceasefire were signed tomorrow and ships sailed freely through the Strait of … Read more

Spaniards, the price war at gas stations has begun. And Repsol is the first to launch its attack

by

The price of gasoline has skyrocketed. Diesel is through the roof. It has already been dropped that The Government has studied discounts on purchases of fuel as it already did in 2022. And while the Spanish are looking for the cheapest gas stations to refuel, service stations have just opened a war to continue attracting customers. through the clouds. If we talk about average prices, we are still far from the figures that we end up paying for gasoline and diesel in 2022. In the days that followed the first stages of the Ukrainian War, gasoline came to reflect an average price in Spain of 2.152 euros/liter and diesel 2.106 euros/liter, according to the portal dieselgasolina.com which monitors the price of all service stations in the country. Today, March 19, gasoline reflects an average price of 1,784 euros/liter on average. 98 gasoline already scales at 1,938 euros/liter. The basic diesel is already paid at 1,906 euros/liter and the “premium” at 1,988 euros/liter. With these data, gasoline is about 40 cents/liter of what was paid in 2022 but diesel is already at 20 cents/liter. Not only that. If we look back we find a brutal increase in prices. On March 1, the average price of gasoline was 1.495 euros/liter. That is, in 19 days the average price has increased by almost 30 cents/liter. Diesel is even more worrying, rising almost 50 cents/liter from the 1,447 that it reflected on average on March 1. A relief to the pocket. At least cosmetically. That is what happened in 2022 when the Government applied a fuel reduction of 20 cents/liter. It was a flat rate for all drivers which partially alleviated the effect of rising fuel prices, without taking into account if the client was doing it for recreational useto go to work or because he was a professional who needed it to provide his services. However, prices continued to rise and just a few days after the aid began to be applied, which arrived when gasoline was 1.84 euros/liter, we were already paying the same than before the subsidy. Did the marketers take advantage to continue raising prices and increase their business? The CNMC suspected so. Repsol tightens. Although rumors point to a possible subsidy again, oil companies have already begun to take positions in the face of a new price war. The most ambitious has been Repsol, which has in its Waylet program the best tool to build customer loyalty. The company has announced that double your discounts with Waylet. That is, now they deduct 10 cents/liter for each refueling. But Repsol has turned Waylet into its own ecosystem from which it is difficult to get out. If you have electricity contracted with Repsol, the savings double and go from 10 cents/liter to 20 cents/liter. And if you have other contracted services, such as car or home insurance, the discount is 40 cents/liter. Added to this are the discounts with every electric car recharge and domestic rates or subscriptions outside the home, which is why they have managed to position themselves as a very attractive option for those who have both technologies at home, combustion and electricity. A price war. Repsol, yes, is the company that has the highest prices on the market, according to dieselgasolina.com. On average, gasoline at Repsol costs 1,763 euros/liter and diesel 1,861 euros/liter. Moeve, the second most expensive supplier, is very far away, with an average price of 1,693 euros/liter and 1,760 euros/liter for gasoline and diesel respectively. The gap with low cost is gigantic. Alcampo currently sells gasoline at 1,594 euros/liter and diesel at 1,706 euros/liter. However, Repsol has a reason to push: low cost. They explain in Expansion that these service stations are more sensitive to price increases because the volume of each purchase is smaller. They do not have the storage capacity of large companies, which forces them to buy more often and, therefore, increasingly more expensive when the price skyrockets. This reduces your profit margins. And although in the middle they assure that the low cost ones continue to be cheaper, the truth is that the margin is narrowing. When the difference is small, it is easier for Repsol to gain followers and build customer loyalty with large discounts since “cheap gasoline” loses much of its appeal. This loss of competitiveness translates into the results of dieselgasolina.com that collects that Ballenoil has, right now, gasoline more expensive than Moeve, just one step below Repsol. under the magnifying glass. The aggressive discounts on gasoline have fueled the debate about the extent to which oil companies are taking advantage of the situation. In 2022, Repsol has already taken the opportunity to make aggressive discounts. Those, according to the CNMCthey took advantage to try to take smaller gas stations out of the market. Those days, low-cost service stations already assured that the Government subsidy was suffocating them due to the particularities of their business model. Just a few days ago, The OCU has already filed a complaint with the CNMC that the increases that were occurring in the price of fuel were being abusive. They noted that according to the Official Gazette of the European Union, Spain was the third country in which prices had increased the most and that the cost of diesel was higher than the European average. As in the case of Expansion According to his calculations, the low cost ones were the ones that reflected the most striking increases. It remains to be seen what the response of the rest of the service stations is. Repsol has already shown that it has room for maneuver. In 2022, the oil companies that entered the game did so in the same way, with wide discounts within their loyalty plans. And that has some clear losers: the low cost ones. Photo | Juanedc In Xataka | Fear of gasoline at 2 euros per liter: the sector is already preparing for the worst after the start of the war in Iran

“We felt cheated.” Even gas station owners are freaking out about the sudden, meteoric rise in oil

by

The missiles fell and the energy markets soared. When the conflict officially began on February 28 between the US, Israel and Iran and its expansion through the Middle East, the energy markets responded to the new scenario and in more or less two weeks, the barrel of Brent has already risen by 50% according to EIA data. At gas stations, the price of fuel also rose overnight. The rapid rise in fuel. Below these lines you can see how the average price of fuel in Spain has evolved according to the data extracted from the Ministry of Ecological Transition of the States and compiled by the Dieselogasoline website. Thus, if we closed February with a price of €1,493/l for Unleaded 95 and €1,548/l for Diesel A+, March has been a relentless uphill climb for all fossil fuels. Today they mark €1,727/l and €1,935/l respectively. With this panorama and the figure of 2 euros/liter on the horizonthe first days already There were long lines at some service stations. before what was coming. Evolution of fuel prices in Spain in March. Dieselogasolina.com The perfect storm. With the blockade of the Strait of Hormuzthe place through which approximately 20% of the world’s production of crude oil and liquefied natural gas passes, confirmation that China turns off the tap of its exports to meet domestic demand, the slowdown in activity of some deposits and that large merchant companies are paralyzed or surrounding all of Africa to satisfy demand at the cost of a longer and more expensive route, it is clear that the scenario for buying oil looks bleak. In fact, not even the International Energy Agency release 400 million barrels of emergency reserves (the largest mobilization in history) was enough for the market to react. Ultimately, that number equivalent about four days of world consumption or about 20 days of what passes through the Strait of Hormuz. And it could be worse: as the spokesman for the Khatam al-Anbiya headquarters of the Islamic Revolutionary Guard Corps explained: “They will not be able to artificially lower the price of oil. Prepare for oil to reach $200 per barrel,” picks up Al Jazeera. Instability, the reduction in supply and its use as a measure of pressure summarize the black picture. But that gasoline is not that of war. Although the history of conflicts in the Middle East is an unequivocal precedent to glimpse the rise of fuel and everything, because in practice it has an impact on the logistics of the bulk of the activities: if the fruit store brings its delivery five times a week, those deliveries cost more. And if you travel 50 kilometers a day to get to work, it will also cost you more. Economy of the obvious. However, there is a harsh reality: that fuel that you are already paying at war prices was acquired previously. We are paying prices for the future, those for replacement. And not just consumers: also gas stations. As Michel-Édouard Leclerc, president of the E. Leclerc supermarket chain and its gas stations, said, to public broadcaster Franceinfo: “We felt cheated, just like the drivers, by the almost automatic speed with which prices rose.” In his case, he also announced the reduction of 30 cents at the group’s gas stations in France thanks to negotiations with suppliers. Who sets the price of fuel. In the Spanish state, prices have been free since 1998, as the CNMC explainsbut from here there are several actors that influence: The international market, based on the price of Brent oil or refined oil in the reference markets. The refinery or wholesale operator, which adds its operating and logistics margin until distribution. The gas station operator: if it is a flagship station such as Repsol or BP, the price is practically a matter for the parent company. If it is independent or belongs to a large surface (such as Plenoil or Leclerc), it has more room for fixation. Hence they are the cheapest. The State through taxesmore specifically the Special Tax on Hydrocarbons and VAT. In Xataka | The rocket and the pen: the theory that explains why the rise in gasoline is here to stay In Xataka | There is a hidden war to sell us the cheapest possible gasoline. One that Ballenoil and Plenergy already dominate Cover | Leclerc

41 methane gas turbines

by

Recently we said that xAI had the largest data center with the highest computing capacity in the world. It occupies about 13 football fields and has already reached one gigawatt of power, the first in the world to achieve that computing capacity. All this has an enormous energy cost, but Elon Musk can rest assured because he has just been approved for the installation of 41 methane gas combustion turbines, to the dismay of neighbors and environmental defenders. What has happened? Elon Musk has obtained permits to install 41 methane gas turbines to power Colossus 2, its new mega data center located very close to the Tennessee-Mississippi border. The news comes amid strong opposition from both the community and activists, who denounce that air and noise pollution in the area will increase since the turbines that were already operating are going to be doubled. They say on NBC that during the public hearing, none of the speakers spoke in favor of the project, but it ended up being approved anyway. Two years of controversy. It all started in 2024 with the construction of Colossus in Memphis, Tennessee. Months later, xAI received permission to connect to the electrical grid with a maximum power of 150 megawatts, but it was not enough. In the summer of last year, the Southern Environmental Law Center (SELC) revealed that there were at least 26 gas turbines operating without the necessary permits. In the end they ended up giving him permission to install 15 turbines permanently. Activist organizations such as NAACP have filed lawsuits against xAI for violating the clean air law. The map of xAI facilities spread across the Tennessee-Mississippi border. Source: Google Maps. Preparation: Xataka With one foot in each state. The decision to install 41 additional turbines has been made by the Mississippi Department of Environmental Quality (MDEQ), which is where the turbines will be located, but Colossus 1 and 2 are in Tennessee, as can be seen on the map above these lines. That the data centers are in one state and most of the turbines in another is no coincidence. Although the clean air law It is the same for both, in practice Mississippi is being much more lax when it comes to applying it, as has been demonstrated with this decision. Although there is a border in between, we are talking about the same metropolitan area, so the effects on air quality harm both sides of the border equally. To put it more into context, between Colossus 2 and the facility where the turbines operate there is less than 2km of distance that can be traveled in less than 7 minutes by car. How much this pollutes. Memphis is one of the states with the worst air quality in the US, so much so that It is known as “the capital of asthma”. They recently counted on Electrek which, according to xAI’s own request, we are talking about 6 million tons of greenhouse gases and 1,300 tons of harmful atmospheric pollutants (nitrogen oxides and sulfur dioxide among others) each year. And they also point out a striking detail: while all this is happening, Tesla boasts that in 2024 it avoided the emission of 32 million tons of CO2. The level of cynicism is also through the roof. Image | xAI In Xataka | We have been talking for years about how AI consumes a lot of water. Everything comes from a book that was invented

Gasoline has risen so much that even Mark Zuckerberg has looked for a low-cost gas station to refuel his yacht: Gibraltar

by

From the start of the war of Iran, filling the car tank has become one of those little dramas everyday things that we all know well. A few euros more, a sigh of resignation, and continue. But there is another refueling scale that makes your complaints at the gas station For those 10 extra euros that it cost you to fill the tank, it almost sounds like a joke. Mark Zuckerberg, founder of Facebook and fifth greatest fortune of the world, owns the launchpada 118 meter superyacht valued at about 300 million dollars. Since the US and Israeli bombs began to fall on Iranian soilfilling your fuel tanks involves an extra cost of $278,880 with each refueling. The most curious thing is that the solution that the tycoon has found is very similar to the one that any citizen with a foot in this price escalation has probably adopted: look for a low-cost gas station. The painful tank to fill Maintaining a luxury superyacht is not cheap, which is why only millionaires can afford it. He launchpad by Mark Zuckerberg has a fuel tank of approximately 420,000 liters. To put it in context, it is the equivalent of the capacity of about 7,000 medium-sized cars at one time. The yacht is equipped with four MTU 20V 4000 M93L engines which, sailing at a cruising speed of 16 knots, consume about 982 liters per hour each. That leaves us with approximate consumption of 4,000 liters of fuel per hour. That is to say, an equivalent consumption 560 cars traveling at 120 km/h or 73 buses. To this we must add that the launchpad He does not travel alone, he does so accompanied by his support yacht, the wingman. Expenses double. The Launchpad has four motors like this According to price data monitored by the specialized portal Ship&Bunker in January 2026, the average price per ton of fuel for yachts (MGO) was $715. Data from March 2026 on this same portal suggest that its price has skyrocketed to $1,379 per ton. This means that filling the fuel tank launchpad In January, Mark Zuckerberg had to pay a bill of just over 300,300 euros, while doing so today It would cost you about 579,180 euros. An extra cost of $278,880 with each refueling in just three months. Gibraltar: low cost gasoline for yachts Faced with such an increase, Mark Zuckerberg and many other wealthy yacht-owning tycoons have done what any neighbor’s son would do in this case: look for low-cost gasoline. In this case, the closest and best located is Gibraltar. As and how they stood out in The CountryGibraltar is not only a strategic rock between the Atlantic and the Mediterranean that Philip V delivered generously to the British. For superyacht owners who frequently cross the ocean, it is the equivalent of a motorway gas station as it is located on the most optimal shipping route to cross the world by sea. For superyachts that, like the launchpad, they just made Its periodic maintenance in the exclusive shipyards of La Ciotat (France), the Strait route is the shortest to go down to the Canary Islands and, from there, head to the warm waters of the Caribbean to meet its owner in Miami. The same thing happens with the reverse route, allowing ships to refuel without deviating from the most optimal route between both continents. He launchpadwhich is more similar to a small cruise ship than a pleasure boat, stops in Gibraltar regularly on its routes between Europe and America. It is not because of the pleasure of its views, but because of the price and the refueling infrastructure for superyachts, cruise ships and large freighters that has created Gibraltar. Its special tax status allows boats over 18 meters to refuel with duty free fuel, making it a mandatory stop for these giants of the sea. It is no coincidence that he is one of the bunkering points busiest in the world, with prices that, even after the escalation following the blockade of the Strait of Hormuz, remain lower than in many ports in northern Europe or the eastern Mediterranean. In Xataka | The difficult part has not been building an 80-meter, $200 million yacht. It has been taken to the sea without destroying it Image | Feadship, Meta

Light and gas have become luxury items. Europe’s plan is to intervene in prices no matter what the cost

by

Turning on the heating, running a washing machine or keeping a factory blind up has become, overnight, a luxury. Faced with the economic asphyxiation that threatens citizens and companies, the European Union has crossed the Rubicon: the free energy market, as we knew it, cannot sustain this crisis, and Brussels is preparing a drastic intervention to lower the bill at any cost. ORn global market on fire. The epicenter of this new financial earthquake is in the Middle East, as we have been counting these days in Xataka. The price of oil in international markets continues to suffer shocks; as the firm points out Sparta Commodities to EUobserverit is the “largest daily movement since 1988.” Investors assume that the blockage in the region will cause real cuts in the global supply of crude oil, leaving behind the idea of ​​​​a simple logistical delay in ships. Gas has not been left behind. As detailed BloombergEuropean natural gas futures—the Dutch benchmark—soared 30% in a single day, reaching €64/MWh. Europe emerges from the winter with its reserves depleted and is now facing an all-out war with Asia to obtain the scarce shipments of Liquefied Natural Gas (LNG) available for the summer. The daily roller coaster of the bill. To understand why this crisis punishes the consumer so much, we must look at how the price of electricity is formed hour by hour. An analysis of Finance Times shows how prices in Europe now suffer wild volatility. The example of last March 4 is devastating: at the height of the solar peak (2:00 p.m.), a megawatt hour in Denmark cost just 26 euros; Just three hours later, after the sun set and the gas plants came into play, the price catapulted to 430 euros. This “roller coaster”, with jumps of up to 1,700% in one afternoon, has been replicated with the same harshness in the Netherlands, Germany and Belgium. Gas thus imposes a “law of luxury” every time the sun disappears, preventing the industry from planning its production. Intervene “whatever the cost.” With a heavy industry (steel, chemicals, aluminum) on the brink of the abyss – it is worth remembering that, according to a document from the European Commission cited by Euronewsindustrial electricity in the EU was already twice as expensive as in the US and China before this crisis—Europe has decided to act. According to the documents discussed by the European leaders to whom has had access Euronewsthe emergency plan seeks quick relief by putting the scissors directly into the bill in three ways: National tax cuts: Which currently vary enormously and can amount to up to 22% of the electricity bill. Cap on tolls and network charges: Which represent 18% of the bill for large industrial consumers. Review of carbon emission costs: Which add 11% to the cost of electricity generation. The intervention beyond of tax cuts. The Prime Minister of Italy, Giorgia Meloni, has toughened her tone towards companies. In statements cited by Euronewswarned: “We will do everything possible to stop speculation. I am ready to react, if necessary, including by increasing taxes on companies that speculate on prices through energy bills.” Furthermore, the panic button for strategic reserves has been activated. As explained Reutersthe finance ministers of the G7 and the EU are negotiating to release part of the 1.4 billion barrels of strategic reserves that Europe keeps to flood the market and artificially sink prices. The impact of not intervening in time. Bloomberg details the case of Domo Chemicalsa plant in the German industrial city of Leuna, which has had to declare insolvency consumed by energy costs. This erosion of the industrial fabric also coincides with a delicate political moment in Germany, where the conservative party (CDU) of Chancellor Friedrich Merz has just suffered an electoral setback against the Greens in the regional elections in Baden-Wuerttemberg. The Spanish shield. Despite the urgency, the overall European response is being fragmented. EUobserver points out that Ursula von der Leyen has proposed as a patch to expand the Caspian Sea oil and gas corridor. Ironically, the only royal coat of arms right now is Spain. As highlighted by this same medium, the Spanish market has registered the lowest and most stable prices this week thanks to its gigantic previous investment in renewable energies, partly isolating its system from fossil volatility. Finally, the markets have experienced a slight respite thanks to geopolitics. According to the latest update of BloombergEuropean bonds rebounded and gas fell 17% on Tuesday after US President Donald Trump predicted the conflict with Iran would be resolved “very soon.” However, investors assume that if the war drags on, prices will remain high for a long time. Waking up to reality. With 67% of its consumption still tied to imported fossil fuels, the bloc is aware that depending on Middle Eastern trade routes is a huge risk for its economy. Until now, the European Union trusted that the free market would solve consumer problems and guarantee the best prices. This energy crisis has shown that this is not always the case. The authorities now assume that, in extreme situations, intervening in bills, capping profits and emptying state reserves is the only viable solution. Whatever the cost, Europe has decided to take control to ensure that turning on the lights is not a privilege reserved for times of peace. Image | freepik and Haydn on Unsplash Xataka | Neither oil nor gas: if a total war breaks out between the US and Iran, the definitive weapon will be desalination plants

Europe has reached the end of winter with depleted gas reserves. A country has a model to save it: Spain

by

This winter, which is coming to an end, is being colder than expected, something that as we have seen has caused havoc. Without going any further, there have been planes that have not been able to fly due to lack of antifreeze. If we talk about gas for heating, storage has also reached red numbers: the Netherlands has a reserve of approximately 12%, Germany and France are around 21%, according to AGSI data. In this low-minimum scenario, there are two countries that deviate from the norm: Spain and Portugal, with reserves of 56.87% and 76.7%, respectively. Of course, the difference in capacity is abysmal: 3.57 TWh for the first and 35.9 TWh for the second. It is not a coincidence: it is that the Spanish state has a particular infrastructure that has led it to this point. The context. The conflict between Ukraine and Russia that began in 2022 accelerated the independence of the old continent from Russian gas. Among the measures from Brussels, an emergency rule by which all EU member states had to start the winter with their gas reserves at 90% to ensure supply. However, in 2025 the EU decided to maintain that 90% target. but relaxing the norm to optimize costs. This greater flexibility together with a harsher than expected winter has brought an end to winter with reserves that are at their lowest in the last five years. The harsh European winter. In mid-January, deposits fell below 50%. If the winter ends with a capacity of 30%, Europe will have to inject 60 billion cubic meters of gas. To get an idea, approximately the annual gas consumption of all of Germany. In short, Europe has to refill its tanks in the summer and it will need a lot of imported gas to do so, which means go out into the market and face other competitors and the logistics of bringing it here in an increasingly complicated geopolitical scenario. The Spanish strategy. The Spanish gas storage system is based on two pillars: underground storage and LNG regasification. The second leg is providential, insofar as it is where Spain makes the difference and, furthermore, It is a powerhouse. In fact, Spain owns 35% of all LNG storage capacity in the EU, how Sedigas collects. Its enormous regasification capacity enables diversification of origin, with USA as first supplier with 44.4% of the total gas and another 15 different countries later, according to Enagás data. Spain has an infrastructure of seven plants that makes it possible to receive LNG ships from different sources, thus ensuring supply in case any mishap (technical problems, conflicts, political decisions) fails. Spain started the winter making decisions. Although the previous strategy gives it an advantage over other member states, Spain adopted a conservative strategy When facing this winter 25/26, adjusting to concentrate reserves in January and February, the coldest and with the most demand. A management decision to not waste that cushion prematurely. He was absolutely right: in January gas consumption rose 10.2% compared to the previous year, with a 30% increase in that destined to generate electricity because renewables contributed less than expected. Spain plays in another league. Thanks to its infrastructure, Spain no longer only consumes gas: it re-exports it. It has become a hub for redistributing gas to Europe as a kind of energy logistics platform, providing geopolitical and economic value to a state that, due to its geographical location, is isolated (which, for example, in the electrical field plays tricks on him) Is there real risk? While it is true that widespread shortages are not expected, there are localized risks in Europe. As summarizes El Economista, Spain has precedents of similar levels, such as 2016, 2017, 2019, 2022, where supply was not compromised. Of course, we will have to see what happens with the demand for LNG in summer globally, because it could make European replenishment significantly more expensive. In any case, Spain will get to that moment better than most. The scenario is not very rosy at the moment, precisely, with the Strait of Hormuz closed and the diplomatic crisis between Spain and the US, its main supplier. In Xataka | Europe believed it had won the gas war against Russia. Now it faces a much more uncomfortable reality: its dependence on the United States. In Xataka | The gas market becomes unpredictable: we have tanks full and ships on the way, but the price remains an enigma Cover | Pronor

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.