Diesel Stockpiling Seen Starting Mid-Year: CERAWeek Update

It’s the second day of CERAWeek by IHS Markit, the annual week-long gathering in Houston of some of the energy industry’s biggest names. Today’s agenda includes African oil exploration, North American refining and the impact of electric cars on crude demand.

Time stamps are Houston.

Shippers Will Stockpile Diesel, Says Marathon Chief (10:19 a.m.)

The shipping industry will begin stockpiling low-sulfur diesel by the middle of this year in preparation for tougher maritime fuel rules, Marathon Petroleum Corp. CEO Gary Heminger said.

Heminger was commenting on the impact of the International Maritime Organization’s regulation kicking in next year that will bar the use of high-sulfur bunker fuel.

‘Show Me the Money’ Plea Reins in Shale: Hess CEO (7:58 a.m.)

Spending discipline has become the new rallying cry for investors in the shale patch, according to Hess Corp.’s chief executive officer.

Shareholders’ expectation “a couple years ago was ‘drill, baby, drill,’ ” John Hess said Tuesday in an interview with CNBC at the CERAWeek conference. “Now it’s ‘show me the money.’ ” The drive to cut capital expenditures means the industry isn’t investing enough to grow production, he said.

OPEC Splits Avocado Appetizer With Shale Rivals (12:12 a.m.)

OPEC Secretary General Mohammad Barkindo met with senior executives from North America’s booming shale oil industry for dinner in Houston as the balance of power in global energy markets continues its swing to the U.S. from the Middle East.

The dinner Monday night included “a friendly conversation on current industry issues and the immediate prospects and challenges for all,” Barkindo said in an interview after the meal. It marks the third consecutive year that rival producers have gathered on the sidelines of the CERAWeek event.

The menu began with an avocado appetizer followed by Texas steaks and a pineapple dessert.