France’s Total Blocks Congo Oil Fields

French company Total Energy is frustrating the development of the Democratic Republic of Congo's (DRC) oil fields by blocking Congo’s access to the East African Crude Oil Pipeline (EACOP).

“Congo is seeking to make billions of dollars from dozens of untapped oil squares in the country so far,” reports Attaqa. “However, this would not become possible without linking it to the East African pipeline project, which allows the export of crude to a number of African countries, and is managed by the French oil giant Total Energy.”

EACOP is an East African pipeline that links Uganda’s oil fields to the Port of Tanga in Tanzania. Operations are slated to begin in 2025. Total Energy is partnering with the Chinese company Sinopec in launching the pipeline.

According to the country's Oil Minister, Didier Bodembo, the DRC has initiated discussions with its neighboring countries, namely Uganda, Tanzania, and South Sudan, to construct pipelines for oil transportation or utilize EACOP.

In July 2022, the DRC increased the number of areas offered for oil and gas exploration from 16 to 30 square meters. The country aims to beef up its oil sector and exploit its extensive reserves.

But production has been stagnant for years due to insufficient investment. Currently standing at 25,000 barrels per day, all of which are exported, the DRC seeks to increase production to a range of 500 thousand to one million barrels per day.

But Total says that it will not move DRC's oil through the pipeline and that EACOP will rely solely on Uganda’s output for the first decade of its life. Since the pipeline doesn’t extend to the DRC’s territory, Total argues, it cannot transport DRC’s output.

Cuba Turns to Russia and Mexico for Fuel

Cuba is facing an acute shortage of diesel and gasoline, which has led to rationing and long fuel lines. The country has turned to Russia and Mexico for oil to supplement dwindling flows of crude and fuel from Venezuela.

Venezuela has been Cuba's main political ally and largest provider of crude and fuel for more than two decades, but its struggle to produce enough fuel for its own needs has left Cuba in the lurch. “Venezuela's oil exports to Cuba so far this year have dropped to 55,000 barrels per day (bpd) from almost 80,000 in 2020,” reports Reuters. Venezuelan crude is also heavier than others, making it more difficult to process.

Under President Andrés Manuel Lopez Obrador, Mexico has been sending a rising volume of fuel to Cuba. Cuba has also imported at least five cargoes from Russia since November.

Imports from Russia and Mexico may grant some relief to the Cuban people, who have been weathering government-imposed rationing and days-long lines for gas, diesel, and propane.

Drax Faces Scrutiny Over Green Status

The UK energy regulator, Ofgem, has launched an investigation into Drax. Ofgem is concerned about the power company’s compliance with sustainability rules, specifically regarding the wood it burns for electricity generation.

In 2021, Ofgem looked into whether Drax had followed the UK's biomass sustainability regulations after the BBC questioned the sustainability of the wood they sourced from Canada. While Drax provided documentation showing that the Canadian woody biomass it used in 2021 and 2022 was certified under the Sustainable Biomass Program, Ofgem commissioned a third-party audit to protect itself from potential external scrutiny.

Controversy persists over whether woody biomass counts as a green alternative to fossil fuels. Advocates say that the carbon dioxide emitted from burning wood is offset by the carbon absorbed through reforesting. But critics argue that the process is not carbon neutral because it can take decades or even centuries for new trees to soak up the same amount of CO2 released by wood fuel. Plus, harvesting wood for biomass energy can lead to habitat destruction, the loss of biodiversity, and deforestation.

“Under UK rules, at least 70 per cent of a power generator’s woody biomass consignment must be classified as sustainable,” reports The Financial Times. “Compliance is demonstrated via industry certification schemes such as the Sustainable Biomass Program (SBP), or through the collection of evidence that demonstrates the rules have been met.”

Drax maintains that its wood is sustainable and that it only takes residual wood from other industries rather than harvesting forests. But last year Drax was put in an awkward position: it had to explain its ownership of two Canadian forest logging licenses. The company argued it had agreements with sawmilling companies to transfer the rights to them and take the "residual" wood. But Drax has since stated that it will not renew or obtain such licenses in the future, citing bad optics. The British Columbian state government described the agreement with the sawmills as “unusual.”

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Conversation Starters

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Crom’s Blessing