Energy News to 25 May 2022. OPEC daily basket price stood at $114.96/bl, 24 May 2022
President von der Leyen addresses the World Economic Forum and underlines support for Ukraine, energy and food security
President von der Leyen delivered a special address this morning in Davos, at the World Economic Forum. This year’s meeting is dominated by Russia’s war against Ukraine. President von der Leyen made clear that the war is not only a matter of Ukraine’s survival and European security. It is putting into question our whole international order. The President described how the EU is supporting Ukraine, imposing unprecedented sanctions against Russia, proposing €10 billion worth of macro-financial assistance to Ukraine and now, a reconstruction platform to be led jointly by the European Commission and Ukraine. The platform invites global contributions – from international financial institutions and from any country that cares about the future of Ukraine. President von der Leyen also addressed the consequences for Europe in terms of energy and the urgent need to move away from Russian fossil fuels and accelerate the energy transition. The European Green Deal and REPowerEU are the way to get there. Furthermore, by working with partners like the US and Canada, the EU will create more reliable and sustainable supply chains, both in energy and for raw materials sourcing. Finally, the President also addressed the threat that the Kremlin’s war is posing to food security worldwide. Russia is weaponising food as it has done with energy, confiscating Ukrainian grain and blocking key ports. The EU is working to get grain to the global markets, opening solidarity lanes linking Ukraine’s borders to European ports.
The EU is also supporting Africa to become less dependent on food imports. President von der Leyen announced that she is working with President El-Sisi of Egypt to address the repercussions of the war with an event on food security and solutions in Europe and in the region. The President concluded saying: “It is time to end unhealthy dependencies. It is time to create new connections. It is time to replace old chains with new bonds. Let’s overcome this huge challenge in cooperation. In the Davos spirit.” Read More
TotalEnergies announces the signature of agreements with Global Infrastructure Partners (GIP) to acquire 50% of Clearway Energy Group (CEG), the 5th US renewable energy player. This constitutes its largest acquisition in the renewable energy in the United States, one of the top 3 renewable markets in the world. With such transaction, TotalEnergies is further accelerating its growth in the renewable energy sector by partnering with GIP, a leading global infrastructure fund.
CEG is a developer of renewables projects and controls and owns 42 % of economic interest of its listed subsidiary, Clearway Energy Inc. (CWEN), into which projects are dropped when they reach commercial operation.
With this acquisition, TotalEnergies is establishing a major position in the U.S. renewable energy and storage market. Clearway has 7.7 GW1 of wind and solar assets in operation through its listed subsidiary CWEN and has a 25 GW pipeline of renewable and storage projects, of which 15 GW are in an advanced stage of development. Headquartered in San Francisco, Clearway has approximately 760 employees.
In the frame of this transaction, GIP will receive $1.6 billion in cash and an interest of 50% minus one share in the TotalEnergies subsidiary that holds its 50.6% ownership in SunPower Corporation (NASDAQ: SPWR), leader in residential solar in the U.S. The transaction takes into account valuations of $35.1 per share for CWEN and $18 per share for SunPower.
As part of this partnership, TotalEnergies will contribute to enhance Clearway’s growth prospects by providing CWEN in the U.S. with access to its power trading capabilities and will give it priority on the farm down of its own developed projects.
The acquisition brings TotalEnergies’ renewable portfolio in the U.S. to more than 25 GW and contributes to the objective that the United States account for at least 25% of the Company’s global target of 100 GW by that time. Read More
Tullow Oil plc (Tullow) issues the following statement from its CEO, Rahul Dhir, ahead of its Annual General Meeting (AGM). The meeting will take place at Tullow Oil plc, Building 9, Chiswick Park, London, W4 5XT at 12 noon today. We are also enabling shareholders to listen to and watch a video cast of the AGM as well as participate remotely. Instructions for joining the video cast can be found at the end of this statement or within the Notice of Meeting.
The Group will publish a Trading Statement and Operational Update on 13 July 2022.
Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented today:
“Dear Shareholders,
Today will be my second AGM since joining Tullow as CEO and I wanted to reflect on the past year and to discuss just some of the exciting opportunities ahead for our company.
A transformational year
Tullow began 2021 in discussions with our banks and bondholders and their advisors to decide how best to address our debt maturities. Thanks to a substantial amount of self-help in the form of asset sales and cost savings and some help from the oil price we were able to reset our capital structure with a landmark $1.8 billion bond issue. This provided us with the financial stability and liquidity runway to enable us to fully focus on the delivery of our business plan and I am pleased to report that we are making good progress across our portfolio, including:
· A marked improvement in our EHS performance in 2021, despite increased activity levels. This has been achieved through the implementation of a safety improvement plan, active leadership interventions and a good reporting culture. Read More
European Energy Security: EU and US jointly condemn Russia’s use of energy blackmail
Russia’s cut-off of electricity and natural gas to Finland, following the halt of gas exports to Poland and Bulgaria, is “unjustified and unacceptable,” the Commission and the US have said in a joint statement condemning such actions as “energy blackmail.” The two parties have also reaffirmed their commitment to strengthening Europe’s energy security under the joint Task Force on Energy Security announced by Presidents Biden and von der Leyen on March 25. “Through the Task Force we will continue working to diversify Europe’s supply of natural gas while we accelerate the deployment of energy efficiency and smart technologies in European homes and businesses, electrify heating, and ramp-up clean energy output to reduce demand for fossil fuels altogether,” the Commission and the US have said. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $110.78 | Up |
| Crude Oil (Brent) | USD/bbl | $114.57 | Up |
| Bonny Light | USD/bbl | $118.01 | Up |
| Saharan Blend | USD/bbl | $117.78 | Up |
| Natural Gas | USD/MMBtu | $8.82 | Up |
| OPEC basket 24/05/22 | USD/bbl | $114.96 | Down |
According to 2022 pricing data across Leasing.com’s top 15 most popular BEVs, leasing was the cheapest and most cost-effective option on 13 of those models. Across the list, the highest cost difference was 31%, with the average difference in cost being 18%. The highest saving came in at £9,108 for Audi’s all electric e-Tron, with the average saving across the board coming to £2,313.58.
One of the most popular cars in the BEV market is the Tesla Model 3. The Tesla has a list price of £42,935; however, when leased over four years, the total cost comes in at £25,445.77. Compare that against a PCP cost of £30,384, and leasing will save drivers 19% over the contract’s life.
The largest saving overall, though was found when comparing costs for an Audi E-Tron. On PCP, the Audi works out at a total cost of £43,420.14 at the end of a 48-month contract. On lease, the same make and model comes in at a total cost of £34,311.50. This would mean a saving of £9,108.64. Read More
The UK’s energy price cap is expected to rise in October to around £2,800, Ofgem’s chief executive says.The cap which applies until 31 September is currently £1,971 a year, which was itself a 54% or £693 rise from the previous cap six months earlier. Read More
Baker Hughes Rig Count: U.S. +14 to 728 Canada unchanged at 88
| Region | Period | Rig Count | Change |
| U.S.A | 20 May 2022 | 728 | +14 |
| Canada | 20 May 2022 | 88 | — |
| International | April 2022 | 806 | — |
More than 2600 participants from 150 countries and over 70 partner organizations will convene in person and in a virtual space for the ninth annual Stockholm Forum on Peace and Development. In a special Stockholm Forum session prior to the opening, SIPRI released the policy report Environment of Peace: Security in a New Era of Risk.
The afternoon panel ‘Addressing the Climate Crisis and Protecting the Future of Democracy’ is available to watch on SIPRI’s YouTube channel. This year’s Forum centres on the topic ‘From a Human Security Crisis Towards an Environment of Peace’ and was opened by Ambassador Jan Eliasson, former United Nations Deputy Secretary-General and Chair of the SIPRI Governing Board. Ambassador Eliasson’s address touched on the converging crises and a new era of existential risks in which no country can fight climate change alone. ‘We have to be ready to adapt. We have to ensure a just and simple transition from fossil-dependent to green societies. We have to make inclusion a rule,’ said Eliasson. Read More
COP26 declaration on accelerating the transition to 100% zero emission cars and vans.As representatives of governments, businesses, and other organisations with an influence over the future of the automotive industry and road transport, we commit to rapidly accelerating the transition to zero emission vehicles to achieve the goals of the Paris Agreement[footnote 1].
Together, we will work towards all sales of new cars and vans being zero emission[footnote 2] globally by 2040, and by no later than 2035 in leading markets
A. As governments, we will work towards all sales of new cars and vans being zero emission by 2040 or earlier, or by no later than 2035 in leading markets.
B. As governments in emerging markets and developing economies, we will work intensely towards accelerated proliferation and adoption of zero emission vehicles. We call on all developed countries to strengthen the collaboration and international support offer to facilitate a global, equitable and just transition.
C. As cities, states, and regional governments, we will work towards converting our owned or leased car and van fleets to zero emission vehicles by 2035 at the latest, as well as putting in place policies that will enable, accelerate, or otherwise incentivise the transition to zero emission vehicles as soon as possible, to the extent possible given our jurisdictional powers.
D. As automotive manufacturers, we will work towards reaching 100% zero emission new car and van sales in leading markets by 2035 or earlier, supported by a business strategy that is in line with achieving this ambition, as we help build customer demand.
E. As business fleet owners and operators, or shared mobility platforms, we will work towards 100% of our car and van fleets being zero emission vehicles by 2030, or earlier where markets allow. Read More
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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