| WTI Crude | $40.06/bbl | -1.2% |
| Brent Crude | $42.85/bbl | -1.0% |
| HH Nat Gas | $1.75/MMBtu | -2.2% |
| MB Propane | $0.48/gal | -0.4% |
| 3:2:1 Crack | $10.72/bbl | -3.3% |
5G isn't just for you, refineries want it too
AT&T successfully demonstrated a proof of concept private 5G network for one of Phillips 66's refineries in Belle Chasse, Louisiana. This all began with connectivity issues at the refinery, leading Phillips 66 to bring in consulting firm Accenture to devise solutions for long-term digitization of their plant operations.
Why do they want a private wireless network?
Currently, the industry is in the middle of the digitalization of controllers, switches, sensors, and actuators. This is expected to lead to performance forecasting, automation, predictive maintenance, remote monitoring of potential safety hazards—and much more. But with a wireless network, you have the flexibility and mobility to monitor equipment anywhere on site, or even remotely.
So why 5G?
There is a massive number of sensor devices at a plant, and even LTE is incapable of handling all of that. But 5G reduces latency so much that it enables near real-time data and provides the bandwidth necessary to go wireless.
Read the press release here.
The world still doesn't have enough gas stations
UK-based BP and Indian multinational conglomerate, Reliance Industries Limited (RIL), have formed what they call a "fuels and mobility joint venture" to operate under the Jio-bp brand. BP paid RIL $1 billion for their 49% stake in the company.
What kind of company is this?
All of this can be summarized by saying that BP and India's most valuable company plan on building about 4,000 new gas stations. They also plan on increasing their presence at 15 additional airports.
Why now?
The number of passenger cars in India is estimated to grow 6 fold in the next 20 years, and they are probably not going to be Teslas. Unsurprisingly, India is expected to have the fastest-growing fuels market in the world for the foreseeable future.
Read the press release here.
Taking a big loss is all about perspective
Covestro, the German-based chemicals group and Bayer spin-off, announced an expected loss of nearly $68 million for Q2. Their losses are tied to automotive and electronic industry plant shutdowns due to the pandemic.
This is actually good news:
Before the announcement, the last estimate from an analyst was expecting the loss to be $40 million worse. Naturally, this means that share prices immediately rose in response to the news. And for some perspective, Twitter lost $107 million this quarter, extending their 10-year history of never having a profit.
How are things looking going forward?
Demand is expected to improve so long as no more shutdowns occur, and JP Morgan analysts noticed an improvement in June.
Read more here.