Energy/Automotive News| WTI Crude $76.37/bbl, Brent $80.97/bbl, Opec $82.99/bbl
London, 01 February 2024, (Oilandgaspress): – Oil supplies should remain ample amidst a soft economy, almost stagnant demand, and production growth in the Americas. Barring significant disruptions to oil flows, the market looks reasonably well supplied in 2024, IEA said. U.S. crude supply bounced back last week, with inventories rising 1.2 million barrels and estimated production up to 13 million barrels per day, according to the Energy Information Agency.OPEC+ will decide in March whether or not to extend voluntary oil production cuts.
Petrobras highlights focus on energy transition and profitable assets during immersion with investors in New York. The president of Petrobras, Jean Paul Prates, participated, this Tuesday (30/01), in the opening of “Deep Dive Petrobras”, a meeting held in New York to bring the company closer to international investors and increase transparency in the market. The executive highlighted that Petrobras, after years of focusing only on the present, is now looking to the future, seeking to strengthen itself and position itself in a balanced way in the energy transition process that the world is going through.
- We are an oil company in transition. We are gradually transforming Petrobras, investing in new energy, without giving up oil production from one moment to the next. Regardless of the segments in which we will operate, it is important to highlight that we will invest in profitable assets and in areas that have synergies with the activities that the company already develops, taking advantage of all the technical knowledge that Petrobras already has. We will not take any leaps in the dark, we are preparing Petrobras for the future in a responsible way – Prates pointed out to an audience of around 50 analysts and investors, especially from large investment funds from abroad.
During the event, investors had the opportunity to delve deeper into the main issues relating to the company, especially obtaining details of Petrobras’ Strategic Plan 2024-2028+. The company will invest US$102 billion over the next five years. It is the biggest investment plan of a Brazilian company. Of this total investment, US$91 billion corresponds to projects under implementation (portfolio under implementation) and US$11 billion comprises projects under evaluation (portfolio under evaluation), subject to additional financeability studies before contracting and execution begin. Read full article
Petrobras informs that it received, in cash, an amount of R$1.819 billion, referring to the complement of firm compensation ( earnout ) for the 2023 fiscal year, from the Sépia and Atapu block. The amount already includes the value of the gross-up of taxes levied referring to the 28%, 21% and 21% stakes of TotalEnergies EP Brasil Ltda, PETRONAS Petróleo Brasil Ltda and QatarEnergy Brasil Ltda, respectively, in Sépia and 25% and 22, 5% of Shell Brasil Petróleo Ltda and TotalEnergies EP Brasil Ltda, in Atapu. Pursuant to Ordinance No. 08 of 04/19/2021 of the Ministry of Mines and Energy (MME) and the notice of the 2nd round of bidding for the Transfer of Rights Surplus under the Production Sharing regime, held on 12/17/2021, there were established earnout values for the Sépia and Atapu blocks, which will be due between 2022 and 2032, and payable from the last business day of January of the year following which the price of Brent oil reaches an annual average above US$ 40/bbl, capped at $70/bbl. Read full article
Repar Refinery, in Araucária (PR), broke production records for more than ten years in 2023. Gasoline production was more than 3.4 billion liters, exceeding the 2012 record by 3%. The total volume of gasoline sales by Petrobras, in Repar’s area of influence, was the highest in the historical series, exceeding the previous mark of 2022 by 4.8%. Asphalt production (CAP 50/70) reached 453 thousand tons, an increase of 0.5% compared to 2010, the year of the previous record.
Diesel production, the flagship of the Petrobras unit in Paraná, was more than 5.7 billion liters, 0.5% higher than in 2014, the previous record year. Of this total, 2.6 billion liters are Diesel S10, exceeding the 2021 mark by 31%. This is a strategic derivative for the company and the country, as it is less polluting and has a lower environmental impact. Sales of Diesel S10 totaled more than 3.3 billion liters, exceeding the previous mark of 2021 by 6.9%.
With the greater use of the installed capacity of refineries, the records are the result of constant operational improvements, process optimization and production control, with the aim of meeting the growing demand for derivatives. “This performance was achieved due to the reliability and operational availability of Repar’s assets, combined with the efficiency of logistical operations and market service”, explains the refinery’s general manager, Felipe Gomes. Read full article
Bluewater, the specialist energy private equity firm, has today completed the sale of Kent, a global engineering firm headquartered in Dubai, UAE, to Nesma & Partners, a Saudi Arabian contracting company.
The terms of the transaction are undisclosed.
Bluewater acquired Kent (then known as Kentech) in 2015, and under Bluewater’s stewardship has seen revenues soar from $200mn to $1.4bn in a little over eight years.
During its ownership, it drove significant value creation by implementing its value creation blueprint, which is focused on four key levers:
1) Internationalisation: headquartered in Dubai, Kent now has offices across the world, including in the US, China, UK, India and Australia, with projects in more than 20 countries.
2) Transformational acquisitions: the major highlight being the 2021 acquisition of SNC Lavalin’s energy business.
3) Sector diversification: Kent is now a major player across the energy spectrum, from oil and gas to hydrogen, carbon capture, offshore wind and energy from waste.
4) Buy and build: we have made several smaller, local acquisitions to increase expertise, niche service offerings, and ‘on the ground’ capability.
Tom Sikorski, Founding Partner at Bluewater, added: “We have taken a business headquartered in Dubai, grown its footprint to every corner of the world, and have now sold to a major company in Saudi Arabia who is a strategic player in the region with international ambitions.”
“Having successfully employed a multi-pronged growth strategy with Kent, we will be replicating that in our third fund, which will have a large focus on the Middle East and the US.”
Marcello Stroppa, Managing Director at Bluewater, commented: “Kent is an exceptional growth story. We are very proud to have supported the business over the years and played a role in transforming it from a niche local player to a diversified global leader. The company is led by an extremely talented management team who have flawlessly executed the plan. We believe we have now found the right owner to support Kent in its continued growth.”
John Gilley, CEO of Kent, added: “Thank you to Bluewater for their support since 2015, it has been an incredible journey of growth and achievement alongside its team. We’re looking forward to the next stage of growth, built on the solid foundations created with Bluewater.” Read full article
The BMW Group Recycling and Dismantling Centre is not only Germany’s biggest recycling centre. It acquires new recycling-knowledge while taking apart pre-series vehicles to achieve maximum efficiency. The end of a vehicle’s life is not a sight for car lovers, especially if they have weak nerves: metal groans, glass shatters. An excavator goes into action, its steel grapple grabbing at the engine block. A jerk, a few flying parts, and what was once the heart of a BMW vehicle hangs in the air.
But it doesn’t stop there. The excavator changes tools. It rips the roof of the car open and tears out the leather seats, the upholstery, the instrument panel. Then, with almost surgical precision, the excavator seizes the front of the wiring harness and rolls up the multicolor tangle of cables until the bundle dangles beneath the excavator arm.
In this nondescript industrial estate in the Munich suburb of Unterschleißheim up to 10,000 cars undergo this treatment every year – making it Germany’s biggest car recycler. The BMW Group Recycling and Dismantling Centre (RDC) has been here since 1994, mainly dismantling pre-series vehicles, one-offs from testing and development that are not authorized for sale, tearing them to pieces and recycling them in the brightly lit workshops. Read full article
BMW says Goodbye to Electric Cars; it has now Solved the Problem of Hydrogen Engines – MES.
It seems like hydrogen engines could be the next big thing in the world of cars. While electric vehicles (EVs) have been in the spotlight for zero-emission efforts, hydrogen-powered cars have been in the shadows.
Electric vehicle companies aim to dominate the market by 2030, but hydrogen engines are grabbing a share now. Hydrogen cars are similar to EVs but come with a cool feature called a hydrogen fuel cell, which releases only water vapour. This gives them a decisive edge in the competition for the most eco-friendly ride.
So far, the United States has seen about 2.5 million EVs hit the roads, but as of mid-2022, only around 15,000 hydrogen cars were cruising around, and they’re all in California.According to BMW CEO Oliver Zipse, hydrogen engines are set to play a significant role in various parts of the world in the long term.
A hydrogen fuel-cell vehicle (HFCV) operates with a motor similar to a battery-electric vehicle but uses a stack of fuel cells instead of a heavy battery. These fuel cells combine hydrogen (H2) with oxygen (O2) from the air to produce water vapour and generate electricity. In simpler terms, fuel-cell vehicles are a type of hybrid called fuel-cell hybrid electric vehicles (FCHEV).
Even though hydrogen is the most abundant element in the universe, it’s typically not found in its pure form and is often combined with other elements. Creating pure hydrogen for vehicles involves an energy-intensive process to break down compounds, usually derived from fossil fuels like natural gas. Read full article
As an essential part of decarbonizing the automotive ecosystem, EV transition requires technological innovation, a sustainable and responsible supply chain and the concerted efforts of all stakeholders, said Dr. Robin Zeng, chairman and general manager of CATL at the World Economic Forum Annual Meeting 2024 in Davos, Switzerland.
During the session “Rolling out EVs: A Marathon or a Sprint?” held on Jan 18, Dr. Zeng said innovation in battery technology is central to helping the world transition towards a clean energy future. CATL remains focused on providing long range electric driving options for consumers, and is continuously innovating to achieve greater results. “We launched the condensed battery with an energy density of 500 Wh/kg, a 70 or 80 percent increase over current NCM batteries. We are focused on the aviation applications for condensed batteries, and as production scales up, we can reduce the cost and use the battery in cars, too.”
Battery technology breakthroughs enable business model innovation and therefore a sustainable EV transition with multiple applications. In the V2G (Vehicle to Grid) scenario, an EV battery can also be a distributed mobile energy storage unit, enabling EV owners to make a profit by charging during off-peak hours and selling electricity to the power grid during peak hours. “You do not need to drive your car and the car will make money for you. But it requires longer cycle life for the batteries. To meet this demand, we have developed battery technology for a cycle life of 18,000 cycles,” said Dr. Zeng. A sustainable supply chain is also essential for a successful transition to e-mobility. In April 2023, CATL announced a plan to achieve carbon neutrality in all its battery manufacturing facilities by 2025 and across its battery supply chain by 2035. Dr. Zeng mentioned the difficulty of achieving this goal and emphasized the role of renewable energy in the supply chain. “That’s why when we are selecting suppliers, we are always asking them ‘where are you located’ and ‘do you have green energy’ etc.,’’ said Dr. Zeng at the panel. The integrity of the supply chain is critical for a just EV transition. Dr. Zeng said that through the battery passport program, which was unveiled by the Global Battery Alliance during last year’s meeting in Davos, people can trace the data of a battery’s whole lifecycle by simply scanning a QR code. A battery passport is a transparent enabler across the supply chain that can effectively facilitate battery recycling management, cross-border trade and battery circularity, further promoting global EV transition. EV transition will require efforts from all parts of society, from government leaders to businesses to NGOs and even consumers themselves, according to Dr. Zeng. “For example, the governments should support battery recycling by allowing qualified technology companies rather than small workshops to refurbish and recycle batteries.” Read More
McDermott has been awarded two contracts from North Oil Company (NOC) to deliver engineering, procurement, construction, installation and commissioning (EPCIC) for packages 11 and 13 of the Ruya Development Project, as part of the expansion of the Al-Shaheen field, Qatar’s largest oil field.
The Package 11 mega* contract scope, awarded to a consortium of McDermott and Qingdao McDermott Wuchuan (QMW), includes installation of nine satellite wellhead platforms and jackets in two offshore campaigns. The Package 13 substantial* contract, awarded to a consortium of McDermott and Hyundai Heavy Industry (HHI), is for EPCIC of one 25,000 metric ton central processing platform, flare platform and bridges.
“These awards build on our successful execution of the front-end engineering design (FEED) project—one of the largest FEEDs in McDermott’s 100-year history—completed in just over 12 months,” said Mike Sutherland, McDermott’s Senior Vice President, Offshore Middle East. “We will continue to earn the confidence of QatarEnergy and TotalEnergies by delivering strategically significant energy infrastructure projects in the Middle East.”
“We have been on this journey with NOC since our Doha operating center started the pre-FEED in 2021,” said Neil Gunnion, Qatar Country Manager and Vice President, Operations. “This team of experts will now lead the execution of EPCIC work, leveraging their robust experience and in-depth knowledge of Qatar’s offshore sector for the successful expansion of the Al-Shaheen field.”
McDermott defines a mega contract as being over USD 1.5 billion, and a substantial contract as being between USD $500 and $750 million. Read More
As Black History Month begins, Hyundai Motor America is proud to announce the third consecutive year of the Progress Project, in which the company provides financial assistance to black-owned small businesses in a region. This year, award recipients were chosen in Ann Arbor and Ypsilanti, Michigan—near Hyundai America Technical Center, Inc. and the new Safety Test and Investigation Laboratory in Superior Township.Hyundai selected three small businesses, two from Ann Arbor and one from Ypsilanti, to receive donations of $15,000. The reward recipients are as follows:
- 3N1 Fitness Revolution (Ann Arbor, Mich.): A multidimensional gym of holistic well-being where members can get physically, nutritionally, and mindfully fit. The gym used the donation for a refreshing facelift with a new sign and updated fitness equipment, ensuring the space remains at the forefront of community health.
- A-Square Fight Club (Ann Arbor, Mich.): An affordable boxing gym that focuses on the art, conditioning, and science behind training. With the donation, the gym made repairs to the ring, refurbished some structural pieces of the gym, and purchased new heavy bags.
- Issa’s Pizza (Ypsilanti, Mich.): A cherished establishment catering uniquely to Michigan’s diverse community. The restaurant used the donation to purchase a rapid cook oven, amplifying their capability to serve more pizzas and extend their community outreach to nearby schools.
This is the third region in the United States that has been impacted through the Progress Project by Hyundai. In 2022, the first program was implemented in Montgomery, Alabama, near Hyundai Motor Manufacturing Alabama, the manufacturing plant. In 2023, the second Progress Project was implemented in Savannah, Georgia, near the upcoming Hyundai Motor Group Manufacturing America plant.
Throughout February, join Hyundai on social media to learn about the stories of the passionate individuals behind these businesses. Read More
NIO Inc. announced that it has completed its previously announced repurchase right offer relating to its 0.00% Convertible Senior Notes due 2026 (CUSIP No. 62914VAE6) (the “Notes”). The repurchase right offer expired at 5:00 p.m., New York City time, on Wednesday, January 31, 2024. Based on information from The Deutsche Bank Trust Company Americas, as the paying agent for the Notes, US$300,536,000.00 aggregate principal amount of the Notes (the “Repurchase Price”) were validly surrendered and not withdrawn prior to the expiration of the repurchase right offer. The Company has forwarded cash in payment of the Repurchase Price to the Paying Agent for distribution to the Holders that had validly exercised their Repurchase Right. Following settlement of the repurchase, US$912,000.00 aggregate principal amount of the Notes will remain outstanding and continue to be subject to the existing terms of the Indenture and the Notes. Read More
Shell reported a 2023 profit of $28,25 billion, down 30% from the previous year’s record as oil and gas prices cooled. in 2023, Shell returned $23 billion to shareholders. In line with our progressive dividend policy, Shell is now increasing its dividend by 4%. We are also commencing a $3.5 billion buyback programme for the next three months.”
Q4 2023 Adjusted Earnings2 of $7.3 billion, reflecting robust operational performance and strong LNG trading and optimisation results. CFFO of $12.6 billion for the quarter; total CFFO amounted to $54.2 billion in 2023.
- 2023 full year shareholder distributions of $23 billion, in excess of 40% of CFFO for 2023.
- 4% increase in dividend per share for the fourth quarter and a $3.5 billion share buyback programme, expected to be
completed by Q1 2024 results announcement. - Enhanced the advantaged upstream portfolio with the start-up of Mero-2 in Brazil and the final investment decision on Sparta
in the US Gulf of Mexico. By focusing the portfolio and simplifying the organisation, $1 billion of structural cost reductions
delivered in 2023. - Focus on disciplined spending saw 2023 cash capex of $24.4 billion; 2024 cash capex outlook: $22 – 25 billion. Read More
The 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC) took place via videoconference on Thursday, 01 February 2024.
The JMMC reviewed the crude oil production data for the months of November and December 2023 and noted the high conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).
The Committee will continue to monitor the conformity of the production adjustments decided upon at the 35th ONOMM held on 4 June 2023, and the additional voluntary production adjustments announced by some participating OPEC and participating non-OPEC countries in April 2023, and the subsequent adjustments in November 2023. The Committee will continue to closely assess market conditions. Building on the strong cohesion between OPEC and participating non-OPEC oil-producing countries, the Committee noted the willingness of the DoC countries to address market developments and their readiness to take additional measures at any time. The next meeting of the JMMC (53rd) is scheduled for 03 April 2024. Read More
| Oil and Gas Blends | Units | Oil Price US$/bbl | Change |
| Crude Oil (WTI) | USD/bbl | $76.37 | Up |
| Crude Oil (Brent) | USD/bbl | $80.97 | Down |
| Bonny Light | USD/bbl | $82.30 | Down |
| Saharan Blend | USD/bbl | $82.84 | Down |
| Natural Gas | USD/MMBtu | $2.08 | Down |
| OPEC basket 01/02/24 | USD/bbl | $ 82.99 | Up |
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