Energy News to 07/12/22 . OPEC daily basket price at $79.77/bl, 06 Dec. 2022
Crude prices fell as warnings from major US banks of a tough outlook for 2023 stoked by recession fears concerns.
Saudi Arabia’s Public Investment Fund (PIF) is expected to again spend big in 2023 to diversify the kingdom’s hydrocarbon-based economy as a record budget surplus provides the financial firepower to further swell its assets under management.
Crown prince Mohammed Bin Salman (MBS) has transformed the PIF since he became chairman in 2015, moving numerous government-owned assets to an entity that now spearheads Saudi Arabia’s efforts to modernise.
The PIF made an annual return of 25% last year, according to its recently published 2021 annual report, while its domestic assets include stakes in Saudi National Bank, Saudi Telecom Company (STC) and ACWA Power. Read More
OPEC oil producer Kuwait approved nearly 8.22 billion Kuwaiti dinars ($27.1 billion) for upstream oil projects during fiscal year 2021-2022, which ended on 31 March, a Kuwaiti newspaper said on Tuesday.
Most of them are large projects that were launched in 2021 and cover expansion of crude oil capacity, exploration, oil well drilling and gas operations, the Arabic language daily Alanba said, quoting a report by the state-owned Kuwait Oil Company (KOC).
The allocations were nearly 2.8 percent higher than in the previous 2020-2021 fiscal year, when they stood at nearly 7.9 billion dinars ($26 billion), the report showed. Read More
ExxonMobil today announced the successful startup of its new polypropylene production unit at the Polyolefins Plant in Baton Rouge, Louisiana.The unit increases polypropylene production capacity along the Gulf Coast by 450,000 metric tons per year, meeting growing demand for high-performance, lightweight and durable plastics, particularly for automotive parts that can improve fuel efficiency and reduce vehicle emissions. Polypropylene, a polymer with several applications, is also used to improve the safety and efficiency of everyday products like medical masks and food packaging.
“With the startup of this new production unit, we are well positioned to responsibly meet the growing global demand for these high-performance polymers,” said Karen McKee, president of ExxonMobil Product Solutions. “The ingenuity of our people and our investments in technology enable us to produce high quality products that are essential to daily life.”
ExxonMobil maintained its investments in this advantaged project through the COVID pandemic and related economic downturn. The total capital investment was more than $500 million. ExxonMobil’s extensive mega-project management experience and unrivaled technology capability enabled the unit to start up according to planned cost and schedule.
During construction, the project employed more than 650 workers and with full operational status, requires an additional 65 full-time ExxonMobil jobs. Read More
Woodside Energy (Bass Strait) Pty Ltd (Woodside) has entered into a gas sales agreement (GSA) with Qenos Pty Ltd (Qenos) for the supply of natural gas from Woodside’s equity position in Bass Strait in the southeastern Australian state of Victoria.
The GSA covers the supply of 4.5 petajoules of gas in 2023 for use at Qenos’ polyethylene manufacturing facilities at Altona in Victoria and Botany Bay in New South Wales.
Woodside Executive Vice President Marketing & Trading Mark Abbotsford said: “This agreement ensures affordable gas supply to an important large-scale industrial consumer at a time of increased volatility and uncertainty in east coast energy markets. “Woodside is pleased to be able to deliver reliable and competitively priced gas to support the energy needs of an essential domestic manufacturer and major employer in Victoria and New South Wales.” Woodside is a non-operating joint venture participant in the Bass Strait Project, which has been involved in oil and gas exploration and production off Victoria’s Gippsland coast since 1964. Gas production from Bass Strait currently supplies approximately 40% of Australian east coast domestic gas demand. Qenos is Australia’s only manufacturer and leading supplier of world-class polyethylene and polymers. Qenos adds value to Australia’s natural resources through conversion into petrochemicals and polymers that are used by hundreds of companies in the Australian plastics industry. Qenos products are used in myriad applications including key food and drink packaging, agriculture, automotive, water, mining and waste management industries – making Qenos a vital link in the Australian manufacturing chain. Read More
BHP has unveiled a fully electric Jumbo at Olympic Dam to support the company’s target to reduce operational greenhouse gas (GHG) emissions, including by minimising reliance on diesel.
The 28.7-tonne, 14.5-metre long battery-electric Epiroc Boomer M2 “Jumbo” will be powered by a 150kW traction motor and 150kW battery system, eliminating GHG emissions from diesel. It will be tested for efficiency, productivity and comfort over the 12-month trial period.
Jumbos are used in underground mining development to drill holes, which are then loaded with explosives and open up new areas. Post-blasting Jumbos install large bolts to stabilise mine walls. BHP currently operates 16 Epiroc Jumbos at Olympic Dam.
The fully-electric Jumbo will also break new ground in its user experience by reducing noise and vibration, and eliminating heat and the emissions of diesel particulate matter.The trial of the Jumbo also supports BHP’s efforts to minimise the operational impact of diesel particulate matter in underground mining operations by 2025, as part of BHP’s participation in the International Council on Mining and Metals’ Innovation for Cleaner, Safer Vehicles initiative.
The fully electric Jumbo trial builds on electric vehicle initiatives at Nickel West in Western Australia, Olympic Dam in South Australia and BMA’s Broadmeadow mine in Queensland. BHP is also collaborating with Caterpillar Inc. and Komatsu to develop zero-emissions electrified haul trucks, and battery-electric locomotives with Wabtec Corporation and Progress Rail. Read More
BHP has signed a renewable Power Purchase Agreement (PPA) with Neoen, which is expected to meet half of Olympic Dam’s electricity needs from FY2026, based on current forecast demand, and allow Olympic Dam to record a net zero emission position for the contracted volume of supply.
The PPA is expected to supply 70 megawatts (MW) of electricity to Olympic Dam and will support Neoen to construct the 203MW Goyder South Stage 1b Wind Farm, assuming all relevant consents are obtained. This wind farm is to form part of the larger Goyder Renewables Zone in South Australia, and will introduce new renewable generation into the South Australian electricity grid.
In addition, Neoen will construct a large-scale battery energy storage system in Blyth, South Australia to support the PPA, which will also assist in improving the stability of the South Australian electricity grid. Neoen expects the construction and operation of this wind and battery project to create approximately 250 construction jobs and 15 permanent jobs in South Australia. Read More
Mitsubishi Heavy Industries, Ltd. (MHI), on December 6, signed a Memorandum of Understanding (MoU) with Guacolda Energia SpA, an independent power producer (IPP) in the Republic of Chile, to begin a feasibility study for the introduction of ammonia co-firing at a coal-fired thermal power plant operated by the company in the north of the country. The project is being undertaken in response to the global trend toward reducing CO2 emissions.The signing ceremony was held at the Nagasaki Shipyard & Machinery Works in Japan, the base for MHI;s steam power plant business. The executive team from Guacolda was led by Chairman Jorge Rodriguez, with MHI represented by Masahiko Hokano, Head of the Steam Power Maintenance Innovation (SPMI) Business Division.
The power plant that will be the site of the study is located in Huasco, Atacama Region, approximately 700 km north of the capital city of Santiago. The plant comprises five power generation units with a total output of 758 megawatts (MW). MHI supplied the boiler, steam turbine, and other core facilities for this plant.
Under the feasibility study plan based on the MoU, MHI, with support from its power solutions brand Mitsubishi Power, will determine and conduct a study of supplying the ammonia burners and other boiler facilities and equipment necessary for ammonia co-firing. Phase 1, through 2024, will be a basic study for 30% ammonia co-firing to identify the problems involved. Phase 2, from 2025 to 2026, will be to consider solutions to the problems identified in Phase 1, and compile a detailed plan for demonstration of 30% ammonia co-firing. In the future, Guacolda aims to conduct demonstration testing at the plant and increase the co-firing rate. Read More
During the period from November 28 to November 29, 2022, Eni acquired n. 4,322,849 shares, at a weighted average price per share equal to 14.0850 euro, for a total consideration of 60,887,377.41 euro within the authorization to purchase treasury shares approved at Eni’s Shareholders’ Meeting on 11 May 2022, previously subject to disclosure pursuant to art. 144-bis of Consob Regulation 11971/1999.
On the basis of the information provided by the intermediary appointed to make the purchases, the following are details of transactions for the purchase of treasury shares on the Euronext Milan on a daily basis: Read More
INEOS and SINOPEC have today announced a new Joint Venture agreement that will see INEOS acquire a 50% share in the existing Tianjin Nangang Ethylene Project from SINOPEC. The project is currently building a 1.2 million tonne ethane cracker, expected to come on-stream at the end of 2023, and downstream derivative plants in Tianjin, China.
A full suite of derivative units is being built at the complex, including the 300ktpa ABS (Acrylonitrile Butadiene Styrene) plant and the 500ktpa HDPE (High-Density Polyethylene) plant announced by INEOS and SINOPEC in July.
The 300ktpa ABS plant will be based on INEOS’ world-leading Terluran® ABS technology. It is the second of three ABS plants that INEOS has agreed will be built and operated in China in partnership with SINOPEC, the first being the 600ktpa plant currently under construction by INEOS in Ningbo. The 500ktpe HDPE plant, which is also expected to be onstream by the end of 2023, is the first of three planned units to produce INEOS pipe grade with SINOPEC under license in China.
The joint venture agreement was signed at a virtual meeting between Dr. Ma Yongsheng, Chairman of SINOPEC and Sir Jim Ratcliffe, Chairman of INEOS. Through this partnership SINOPEC benefits from INEOS’s technological knowledge and operational expertise, and INEOS achieves a substantial presence in China, the fastest growing market in the world. Read More
Abu Dhabi National Oil Company (ADNOC) is accelerating operationalization of its board mandated low carbon growth strategy, by establishing a new Low Carbon Solutions and International Growth vertical that will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas (LNG) and chemicals. Musabbeh Al Kaabi has been appointed Executive Director of the new vertical.
The creation of the Low Carbon Solutions & International Growth vertical builds on the company’s successful track record in responsibly and sustainably supplying energy to the world. It will play an important role in advancing the company’s ongoing transformation, which has included a steadfast focus on the decarbonization of its operations, energy efficiency and operational excellence, reductions in methane emissions, advancing CCUS to cut CO2 emissions, and the use of renewable and other zero-carbon energy sources.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “The Low Carbon Solutions & International Growth vertical will accelerate delivery of our decarbonization roadmap and advance our Net Zero by 2050 ambition. As the UAE prepares to host COP28 next year, we will continue to focus on practical and positive solutions that drive progress for the climate and the economy.
“With the direction and support of our nation’s wise leadership and the ADNOC Board, ADNOC is embarking on a new and exciting period of accelerated growth, with a determined focus on sustainability that will help future-proof our business for decades to come. To lead and drive the delivery of our new mandate, I am pleased to announce the appointment of Musabbeh Al Kaabi to the role of Executive Director, Low Carbon Solutions & International Growth, with effect from 16 January 2023.” Read More
Abu Dhabi National Oil Company (ADNOC) has signed contracts worth over AED 1 billion with four Abu Dhabi companies to provide food catering services to all ADNOC Group companies from 2022 to 2027.
With more than 50% of the value from the four contracts flowing back into the UAE economy, as part of ADNOC’s In-Country Value (ICV) program, it reinforces ADNOC’s commitment to supporting local businesses and the growth and diversity of the UAE’s food industry by encouraging further procurement of local food products, by the four companies.
The contracts were signed on the sidelines of the inaugural Abu Dhabi International Food Exhibition with Royal Catering, Apex National Catering, National Corporation for Tourism & Hotels (NCT&H) and Sodexo Kelvin.
The signings were witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO; Her Excellency Mariam Hareb Almheiri, UAE Minister of Climate Change and Environment and His Excellency Saeed Al Bahri Al Ameri, Director-General, Abu Dhabi Agriculture and Food Safety Authority (ADAFSA).
H.E. Dr. Al Jaber said: “Across our onshore and offshore operations, ADNOC and its contractors have significant requirements for high quality food catering services that address the needs of our large and diverse workforce. We are delighted to sign new agreements with four leading local companies, reinforcing our commitment to use domestic suppliers and contractors and ensuring the growth, development, and diversification of local industry. Read More
lithium prices are getting a little less expensive, just as China’s electric-car giant BYD Co. flags that the market could swing back into surplus next year.The battery material in China has continued to retreat from the all-time high hit last month as signs of demand weakness weigh on the market. Lithium carbonate fell 0.2% to 571,500 yuan ($82,000) a ton on Wednesday, although prices are still around double where they were at the start of the year.BYD’s Executive Vice President Stella Li told Bloomberg in an interview on Tuesday that she sees new mines coming on stream next year, calling lithium prices “unreasonable.” Read More
The US Forest Service has announced its new Electric Vehicle Pilot Program during an event on Friday in Greenfield Village at The Henry Ford in Dearborn, Michigan, in which the first Forest Service electric vehicle delivered fresh-cut Christmas trees from the Huron-Manistee National Forest in Michigan for use by Detroit area families.
This first-ever test of electric vehicle use in the field will help the Forest Service implement the President’s Executive Order 14057 by expanding electric vehicle usage in the federal government and minimizing carbon emissions. The 12-month pilot program will test how these electric vehicles function in different operational environments on national forests. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $73.47 | Down |
| Crude Oil (Brent) | USD/bbl | $78.52 | Down |
| Bonny Light | USD/bbl | $79.15 | Down |
| Saharan Blend | USD/bbl | $78.81 | Down |
| Natural Gas | USD/MMBtu | $5.68 | Up |
| OPEC basket 06/12/22 | USD/bbl | $79.77 | Down |
Oil-producing countries in the GCC were the region’s top performers this year: Kuwait’s GDP is expected to expand by 8.7% in 2022, followed by Saudi Arabia (7.6%), the UAE (5.1%) and Oman (4.4%). Iraq, meanwhile, saw GDP growth of 9.3% on the back of oil, while Egypt (6.6%) and Algeria (4.7%) continued their post-Covid-19-pandemic recoveries.
The windfall from oil revenue has generated more fiscal flexibility and external balance surpluses, allowing GCC members to continue to fund their diversification efforts, while improving diplomatic relations have opened the possibility for enhanced regional and global integration. Read More
Rishi Sunak and Joe Biden will today announce a deal to keep the lights on in Britain – using gas produced by fracking in the US.
The Prime Minister and President have agreed a UK-US Energy Security and Affordability Partnership to lessen the risk of winter blackouts and further reduce dependence on Russia for gas and oil.
As part of the major initiative, Downing Street said the US will aim to export at least nine to ten billion cubic metres of Liquefied Natural Gas (LNG) to UK terminals over the next year – more than double the amount exported in 2021. Mr Sunak said last night: ‘Together the UK and US will ensure the global price of energy and the security of our national supply can never again be manipulated by the whims of a failing regime.The group will also collaborate on nuclear fuel technology and drive investment in other types of clean energy such as off- shore wind. Read More
Stellantis N.V. CEO Carlos Tavares has been invited by CES, the world’s most influential tech event, to deliver a keynote address on Thurs., Jan. 5, 2023, in the Venetian Palazzo Ballroom in Las Vegas.
The keynote address includes the global unveils of the Ram 1500 Revolution battery-electric vehicle (BEV) concept and the Peugeot Inception Concept. The presentation will chronicle Stellantis’ vision of making mobility clean, safe and affordable for all.
Loaded with exclusive advanced technology features and based on STLA Frame, the BEV-by-design body-on-frame architecture, the Ram Revolution BEV Concept is a visionary road map and a glimpse into the future, showing how the leading truck brand will once again redefine the pickup truck segment.
The Peugeot Inception Concept will showcase how the brand takes advantage of the next generation of cockpit platforms to reinvent the whole automobile experience, redesigning the interior space and reshaping driving gestures around the next generation of the Peugeot i-Cockpit. Read More
Baker Hughes Rig Count
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 30 November 2022 | 784 | — |
| Canada | 30 November 2022 | 195 | +1 |
| International | November 2022 | 910 | -1 |
OilandGasPress Energy Newsbites and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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