Energy

Oil becomes more meaningful when you turn it into fuel.

A barrel contains 159 litres of crude oil, or 42 gallons.

To use this oil, it must be refined. The refining process produces various products, including petrol, diesel, jet fuel and numerous household items, such as cleaning products, plastics and even lotions.

Once refined, a barrel typically produces about 73 litres, or 19.35 gallons, of petrol to power cars and trucks.

A pick-up truck that can drive 24 miles on 1 gallon of petrol, or 100km on 10 litres, can travel about 730km, or 450 miles, from one barrel of oil.

Put another way, one barrel of crude oil can fuel that pick-up on a trip from New York City to Cleveland, Ohio.

Now let’s scale that up to US national consumption. According to the US Energy Information Administration, the US has about 285 million motor vehicles and consumes nearly 9 million barrels of petrol every day.

If all of Venezuela’s crude oil were refined into petrol, it could supply US vehicles for roughly 40 years at today’s consumption rate.

BUENO AIRES, Jan. 30 (UPI) — The Argentine government authorized private companies to import and sell liquefied natural gas — a move that removes the state from those operations and accelerates the privatization of Enarsa, the country’s public energy company.

The decision was formalized through a decree signed by President Javier Milei and published in the Official Gazette this week. The decree also extends through December 2027 a state of emergency in natural gas transportation and distribution, underscoring continued strain on the system.

Enarsa has historically handled production, transportation and marketing of oil, natural gas and electricity in Argentina. With the new policy, the government begins dismantling that role and shifting functions long overseen by the state to the private sector.

The decision addresses a long-standing structural problem. According to the Secretariat of Energy, Argentina lacks sufficient pipeline capacity to move all gas from producing areas to major urban centers.

That limitation becomes acute in winter. As heating demand rises, domestic supply falls short and the country must import liquefied natural gas by ship.

Until now, the state managed that process. Enarsa bought LNG on the international market at high prices and sold it domestically at well below cost, with the gap covered by taxpayer-funded subsidies.

“This change is part of the decision to move forward with privatizing Enarsa’s assets and activities and to remove the state from its role as an entrepreneur and intermediary in the energy market,” the Energy Secretariat said.

Officials said the state should focus on regulating the market, ensuring clear rules, promoting competition and guaranteeing supply rather than directly buying and selling gas.

Under the new framework, Enarsa will stop importing and marketing LNG, and private operators will take over under a competitive scheme.

The system eliminates the implicit subsidy that existed until now and transfers the entire operation to the private sector, subject to competition rules and state oversight.

To implement the plan, the government will sell access to the Escobar terminal on the outskirts of Buenos Aires. It is the country’s only operational facility where imported LNG is regasified for distribution.

The Secretariat of Energy will set the tender conditions. If no bids are received or the process fails, Enarsa may intervene temporarily to avoid supply disruptions.

Because only one terminal is operating, the government also said it will set a maximum gas price for the upcoming winter to prevent abuse of a dominant position.

Juan José Carbajales, a former undersecretary of hydrocarbons, told UPI that privatization basically means giving a private company the job of buying LNG shipments and then selling that gas inside Argentina.

He said the operation is purely commercial and does not include physical management of the Escobar terminal.

“The scheme will be based on requests the awardee receives from power generators and gas distributors, and sales will be capped by a maximum price set by the Energy Secretariat at least for the next two periods,” Carbajales said.

He said the decision reflects the government’s view that the function failed under state management — a stance rooted in broader distrust of public-sector economic activity, in this case Enarsa.

He said the position is ideological and supported by the so-called Bases Law, which prioritizes private initiative in the economy.

The former official added that large budget allocations to Enarsa did not prove a system failure, but rather a political decision by successive administrations to channel residential gas subsidies by buying fuel at international prices and selling it domestically at far lower levels.

He said the measure also aligns with reforms in the electricity market aimed at gradually returning to a system of free contracting between supply and demand.

Carbajales warned gas prices in Argentina could rise if international conditions push LNG costs higher.

“Although the government will cap that value for two years, uncertainty will remain about what happens once the ceiling is lifted,” he said.

The authorization for private companies to import natural gas is part of a broader privatization agenda promoted by Milei. Since taking office in December 2023, his administration has moved to sell or prepare for sale several state-owned companies.

Jan. 30 (UPI) — While Russia and Ukraine continue targeting each other’s energy infrastructure amid their war, the International Atomic Energy Agency leader said backup systems are critical for ensuring safety.

IAEA Director General Rafael Grossi on Friday told the agency’s board of governors the war in Ukraine is nearing its fifth year and poses the world’s greatest risk for a nuclear accident.

Ukraine has 15 nuclear reactors that generate about half of the nation’s electricity, and Russia has 36 operable reactors that generate up to 20% of its electricity, according to the World Nuclear Association.

The number of reactors in the two warring nations highlights the need for backup systems in those nations and all others that contain nuclear reactors to prevent accidents and ensure reliable off-site power, Grossi said.

“There must be secure off-site power from the grid for all nuclear sites,” he told the board of governors.

Grossi cited Russia’s control of the Zaporizhzhya Nuclear Power Plant in southeastern Ukraine as especially troubling, saying “all efforts should be made to ensure off-site power remains available and secure at all times.”

The nuclear power plant is Europe’s largest and was reconnected to its last active power backup system on Jan. 19 after undergoing repairs amid a temporary cease-fire between the two nations.

The backup system helps to ensure the reactor is cooled and supports other important safety systems, which Grossi said must remain “available and secure at all times” to prevent a nuclear accident.

It went offline after being damaged on Jan. 2 due to military actions, which forced the facility to rely on its main power line to cool its six shutdown reactors and spent-fuel pools.

The IAEA also is monitoring the facility’s ability to operate during the winter months, including ensuring water does not freeze its respective cooling and sprinkler ponds.

Grossi also warned of a potential calamity if some or all of Ukraine’s electrical substations were to go offline.

“Damage to them undermines nuclear safety and must be avoided,” Grossi said, adding that a group of agency experts are examining 10 substations amid Russian military strikes on Ukraine’s power infrastructure.

Other nuclear facilities that pose significant concerns include Ukraine’s Chernobyl site, which recently relied on diesel-powered generators to supply backup power until repairs were completed on its damaged substation power lines.

While the IAEA and others have managed to prevent a nuclear accident amid the ongoing war, Grossi said the “best way to ensure nuclear safety and security is to bring this conflict to an end.”

Russian attacks on Ukraine’s electrical substations could cut power to nuclear plants, increasing risks of meltdown.

The United Nations nuclear watchdog has held a special session on Ukraine amid growing fears that Russian attacks on its energy facilities could trigger a nuclear accident.

Rafael Grossi, director-general of the International Atomic Energy Agency (IAEA), said at the start of Friday’s extraordinary board meeting in Vienna that the war in Ukraine posed “the world’s biggest threat to nuclear safety”.

The meeting was held as an IAEA expert mission conducted a weeks-long inspection of 10 electrical substations that Grossi described as “crucial to nuclear safety”.

Although nuclear power plants generate power themselves, they rely on an uninterrupted supply of external power from electrical substations to maintain reactor cooling.

Ukraine has four nuclear power plants, three of them under Kyiv’s control, with the fourth and biggest in Zaporizhzhia occupied by Russian forces since the early days of their full-scale invasion in 2022.

Moscow and Kyiv have repeatedly accused each other of risking a nuclear catastrophe by attacking the Zaporizhzhia site.

The plant’s six reactors have been shut down since the occupation, but the site still needs electricity to maintain its cooling and security systems.

Earlier this month, Russia and Ukraine paused local hostilities to allow repairs on the last remaining backup power line supplying the plant, which was damaged by military activity in January.

Ukraine is also home to the former Chornobyl plant, the site of the world’s worst nuclear accident in 1986. The site’s protective shield containing radioactive material was damaged last year in a drone strike allegedly carried out by Russia.

Status of energy ceasefire unclear

The four-hour IAEA meeting, which aimed to increase pressure on Russia, was called at the request of the Netherlands, with the support of at least 11 other countries.

Russia’s “ongoing and daily” attacks against Ukraine’s energy infrastructure in recent weeks have caused significant damage, Netherlands’ Ambassador Peter Potman told the board.

“Not only does this leave millions of Ukrainians in the cold and dark during a very harsh winter, but it is also … bringing the prospect of a nuclear accident to the very precipice of becoming a reality,” he said.

Ukraine’s ambassador, Yuriy Vitrenko, said it was “high time” for the IAEA to “shine an additional spotlight on the threat to nuclear safety and security in Europe” caused by Russia’s “systematic and deliberate” attacks.

Russian Ambassador Mikhail Ulyanov dismissed the board’s gathering as “absolutely politically motivated”, adding there was “no real need to hold such a meeting today”.

The status of a current weeklong moratorium on attacks targeting energy infrastructure is currently unclear.

United States President Donald Trump said Thursday that Russia had agreed to his request not to attack Ukraine’s energy infrastructure for a week.

On Friday, Ukrainian President Volodymyr Zelenskyy confirmed that neither Moscow nor Kyiv had conducted strikes ⁠on energy targets from Thursday night onwards.

However, Kremlin spokesman Dmitry Peskov later suggested the pause in attacks would end on Sunday.

The Kremlin says it’s agreed to halt attacks on Kyiv and surrounding towns until February 1, after a request from US President Donald Trump pointing to the ‘record-setting cold’ gripping the region. Many Ukrainians have no heating, after Russian attacks on power infrastructure.

Venezuela’s interim President Delcy Rodriguez has signed into law a reform bill that will pave the way for increased privatisation in the South American country’s nationalised oil sector, fulfilling a key demand from her United States counterpart, Donald Trump.

On Thursday, Rodriguez held a signing ceremony with a group of state oil workers. She hailed the reform as a positive step for Venezuela’s economy.

“We’re talking about the future. We are talking about the country that we are going to give to our children,” Rodriguez said.

The ceremony came within hours of the National Assembly – dominated by members of Rodriguez’s United Socialist Party – passing the reform.

“Only good things will come after the suffering,” said Jorge Rodriguez, the assembly’s head and brother of the interim president.

Since the US military’s abduction of Venezuela’s former leader Nicolas Maduro and his wife Cilia Flores on January 3, the Trump administration has sought to pressure President Rodriguez to open the country’s oil sector to outside investment.

Trump has even warned that Rodriguez could “pay a very big price, probably bigger than Maduro”, should she fail to comply with his demands.

Thursday’s legislation will give private firms control over the sale and production of Venezuelan oil.

It would also require legal disputes to be resolved outside of Venezuelan courts, a change long sought by foreign companies, who argue that the judicial system in the country is dominated by the ruling socialist party.

The bill would also cap royalties collected by the government at 30 percent.

While Rodriguez signed the reform law, the Trump administration simultaneously announced it would loosen some sanctions restricting the sale of Venezuelan oil.

The Department of the Treasury said it would allow limited transactions by the country’s government and the state oil company PDVSA that were “necessary to the lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan-origin oil, including the refining of such oil, by an established US entity”.

Previously, all of Venezuela’s oil sector was subject to sweeping US sanctions imposed in 2019, under Trump’s first term as president.

Thursday’s suite of changes is designed to make Venezuela’s oil market more appealing to outside petroleum firms, many of whom remain wary of investing in the country.

Under Maduro, Venezuela experienced waves of political repression and economic instability, and much of his government remains intact, though Maduro himself is currently awaiting trial in a New York prison.

His abduction resulted in dozens of deaths, and critics have accused the US of violating Venezuelan sovereignty.

Venezuela nationalised its oil sector in the 1970s, and in 2007, Maduro’s predecessor, Hugo Chavez, pushed the government to increase its control and expropriate foreign-held assets.

Following Maduro’s abduction, Trump administration officials have said that the US will decide to whom and under what conditions Venezuelan oil is sold, with proceeds deposited into a US-controlled bank account.

Concerns about the legality of such measures or the sovereignty of Venezuela have been waved aside by Trump and his allies, who previously asserted that Venezuelan oil should “belong” to the US.

Jan. 27 (UPI) — Mexican President Claudia Sheinbaum said Tuesday that oil shipments to Cuba have been suspended, reflecting a decision made by Petróleos Mexicanos within the framework of its contractual relationship with the island.

During her morning news conference at the National Palace, Sheinbaum was asked about press reports indicating that Pemex had canceled a crude shipment bound for Cuba scheduled for January.

The president did not deny the suspension, but stressed that it is up to the state-owned company to decide when and how shipments are carried out.

“It is a sovereign decision, and it is made at the time deemed necessary,” she said when questioned about the published information.

Sheinbaum said decisions related to energy supplies to Cuba are part of Pemex’s operational and contractual assessments. She emphasized that Mexico’s policy toward the island is neither new nor exclusive to her administration.

She noted that previous governments maintained different types of energy ties with Cuba, even amid political disagreements.

“From the first blockade of Cuba, Mexico was the only country that voted against it, and since then it has maintained communication and different types of relations with the island,” she said.

The president also framed the bilateral relationship within a historical tradition of Mexican foreign policy, which has maintained ties with Cuba since the early years of the economic embargo imposed by the United States.

“Beyond positions toward whichever Cuban government is in power, the relationship is with the peoples, and that is a fundamental principle of Mexican foreign policy,” Sheinbaum said.

In that context, Sheinbaum said the economic blockade has generated supply problems on the island and that Mexico has maintained a policy of solidarity with the Cuban people over time.

She added that any future decision on resuming shipments will be communicated in a timely manner by the relevant authorities.

Asked whether Mexico could play an intermediary role between Cuba and the United States in the event of bilateral tensions, the president said such initiatives can only move forward if both parties request them, and reiterated that Mexico will continue to promote dialogue and the peaceful resolution of international differences.

Mexico consolidated its position in 2025 as Cuba’s main oil supplier, covering approximately 44% of the island’s crude imports and displacing Venezuela, with an average of more than 12,000 barrels per day.

With Venezuela’s exit as a key supplier following the capture of President Nicolás Maduro on Jan. 3 by U.S. military forces, Mexico assumed a central role in supplying the island’s energy needs.

As a result, in Cuba the decision by Mexico could have a significant impact on its already fragile energy situation, by reducing one of the external sources that had helped ease the island’s fuel deficit.

The measure could translate into increased blackouts, transportation restrictions and disruptions to key sectors such as industry and services, in a context marked by a shortage of foreign currency and difficulties accessing alternative suppliers on the international market due to the blockade that has affected the island for decades.