Energy News Digest, Oil and Gas, 17th Jan. 2022. OPEC daily basket price stood at $85.46/b Friday, 14 January 2022

EIA forecasts natural gas prices to remain near $4/MMBtu in 2022, slightly lower in 2023

As of 9:17 a.m. EST on Friday, WTI Crude was up 0.35% at $82.41 and Brent Crude traded 0.58% higher at $84.95, as the U.S. dollar was falling and on course to post its biggest weekly drop in over a year. The weaker dollar propped up the crude complex on Friday as it makes the dollar-priced commodities cheaper for holders of other currencies. Still, the market has been in a bullish sentiment since the start of the year, as traders and speculators expect the Omicron COVID variant to have a mild impact on economies. Read More

Power management company Eaton has acquired Royal Power Solutions, a US-based manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets. Under the terms of the agreement, Eaton paid $600 million for Royal Power Solutions, which represents approximately 13.6 times the company’s estimated 2022 EBITDA. Read More

In crude oil, the combined net long in Brent and WTI jumped by the most since November 2020 to reach 538k lots or 538 million barrels, still well below the most recent peak at 737k lots from last June. A US cold blast helped send natural gas up by 14% and the net long up by 30% to 163k lots. Read More

Crude oil (OILUSFEB22 & OILUKMAR22) trades higher with Brent crude oil briefly challenging the double-top at $86.75, a seven-year high, before having a rethink as China GDP and retail sales slowed amid ongoing measures to curb the spreading of the omicron variant. The prompt spreads in WTI and Brent remain elevated at 63 and 74 cents per barrel, thereby signaling rising tightness. Later this week monthly Oil Market Reports from OPEC on Tuesday and IEA on Wednesday will shed some further light on the current situation. Speculators, a little late to the recent rally, boosted bullish oil bets in WTI and Brent bets by the most in 14 months last week. Read More

Joint statement following the visit of COP26 President to Egypt. Egypt-UK Joint Statement following the meeting between Egypt’s Minister of Foreign Affairs and COP27 President Designate H.E. Sameh Shoukry, Dr. Yasmine Fouad, Egypt’s Minister of Environment and COP27 Ministerial Coordinator and Envoy, and COP26 President Minister Alok Sharma. Read More

Abu Dhabi-based solar energy firm Sweihan PV Power Co (SPPC) has sold green senior secured bonds worth $700.8 million at a coupon rate of 3.625 percent. Marubeni Corporation, having 20% ownership in the Project, together with JinkoSolar Holding Co., Ltd and Abu Dhabi National Energy Company (TAQA) commenced commercial operation of the 1,177MW solar power plant in April 2019 through the Sweihan PV Power Company. All power generated from the project is sold to the Emirates Water and Electricity Company under a 25-year power purchase agreement. Read More

Commodity PricesUnitsPrice $change
Crude Oil (WTI)USD/bbl$83.87Up
Crude Oil (Brent)USD/bbl$85.87Up
Bonny LightUSD/bbl$86.55Up
Natural GasUSD/MMBtu$4.27Up
OPEC basket 14/01/22USD/bbl$85.46Up
At press time 17th January 2022

Marubeni Corporation will start production of economical green hydrogen in South Australia (hereinafter, “SA”), transportation of hydrogen by metal hydride (1) tanks to Indonesia and utilization of hydrogen through fuel cells (hereinafter, the “PoC” or Proof of Concept). The PoC has been adopted under the Japanese Ministry of the Environment’s “Financing Programme for Joint Crediting Mechanism Model Projects (hereinafter, “JCM”) in FY2021 (2)”. Australia is aiming to realize a low carbon society and a significant number of renewable power stations have been installed in its electricity market. However, such an increase in renewable energy is forcing the market to face the necessity of the improving grid management and the issue of the grid’s surplus power which is not being well utilized. Read More

ENEOS Corporation and Marubeni Corporation announce that ENEOS and Marubeni have signed a Memorandum of Understanding (MoU) for the introduction of an environmental-friendly ethylene carrier (vessel) for ethylene delivery. ENEOS as a producer of ethylene, and Marubeni as a sales and logistics provider, have supplied ethylene to customers over a long time frame. The parties have jointly considered carbon neutralization in the ethylene supply chain in the MoU, and as a first step, ENEOS and Marubeni have decided to use a brand new environmental friendly ethylene carrier, which will be chartered by Marubeni over the long term, for ethylene delivery commencing in 2024. The vessel will be the first ethylene carrier equipped with a dual fuel engine (liquified natural gas/very low sulfur fuel oil) built for ethylene export from Japan, which can reduce emissions of carbon dioxide by roughly 40% compared to conventional ethylene carriers. Read More

The Abu Dhabi Police confirmed that a fire broke out this morning, which led to the explosion of three petroleum tankers in ICAD 3, Mussafah, near ADNOC’s storage tanks. A minor fire also broke out in the new construction area of Abu Dhabi International Airport. Preliminary investigations suggest that the cause of the fires are small flying objects, possibly belonging to drones, that fell in the two areas. Teams from the competent authorities have been dispatched and the fire is currently being put out. Read More

Abu Dhabi Sustainability Week (ADSW) 2022 taking place from 15 – 19 January, will convene global leaders, including heads of state, policy makers, and international business leaders, as the United Arab Emirates aims to take the agenda global sustainability forward and accelerate pathways to net zero. Hosted by Masdar, ADSW 2022 will be the first major sustainability event after the COP26 climate change conference, and will act as a global catalyst for COP27, which will be held in Egypt in 2022, and COP28, which will be hosted by the UAE in 2023. Held annually since 2008, ADSW has become one of the latest sustainability platforms in the world, with more than 45,000 people from 175 countries participating in ADSW 2020. Read More

The UAE being selected to host COP28 in 2023 is “a vote of confidence by the international community in the UAE’s climate leadership,” Her Excellency Mariam bint Mohammed Saeed Hareb Almheiri, UAE Minister of Climate Change and Environment, says in the first episode of our new ADSW Talks series. HE also shares her thoughts on how Abu Dhabi Sustainability Week (ADSW) can help drive global cooperation in climate action, acting as “a springboard for climate-friendly innovation and breakthrough projects that can help us build a better future for humankind.” Read More

The Norwegian Competition Authority (NCA) has not raised any objections regarding the business combination proposed by the Danish offshore drilling contractor Maersk Drilling and the U.S.-based Noble Corporation, which would allow them to merge in a primarily all-stock transaction.

Maersk Drilling and its rival Noble Corporation announced their intention to merge in November 2021. At the time, both companies shared a very strong conviction in the compelling industrial logic behind the creation of a world-class offshore driller with the scale, capabilities, and resources to successfully serve a broad range of customers. Read More

Baker Hughes ,Rig Count, U.S., Canada,

RegionPeriodNo. of RigsChange from Prior Count
U.S.A14th January 2022601+13
Canada14th January 2022191+50
InternationalDecember 2021834+17
Baker Hughes

Oil India exits US shale venture, sells 20 pc stake for $25 million. OIL and Indian Oil Corporation (IOC) had together in October 2012 bought a 30 per cent stake in Houston-based Carrizo Oil & Gas’s Niobrara shale asset in Colorado for USD 82.5 million.Read More

Saipem has been awarded two new offshore contracts in Australia and Guyana, for a total amount of 1.1 billion USD. The Scarborough gas resource is located in the Carnarvon Basin, offshore Western Australia, and it will be developed through new offshore facilities connected by an approximately 430 km export trunkline with a 36”/32” diameter to a second LNG train (Pluto Train 2) at the existing Pluto LNG onshore facility. The development will be among the lowest carbon intensity sources of LNG globally. The first cargo is expected to be delivered in 2026. Read More

TotalEnergies E&P Suriname, Suriname Branch has exercised an option to add the drilling of one additional well in Block 58 offshore Suriname to the work scope of the drillship Maersk Valiant. The contract extension has an estimated duration of 100 days, with work expected to commence in March 2022 in direct continuation of the rig’s previously agreed work scope. The contract value of the extension is approximately USD 20.5m, including integrated services provided. Two one-well options remain on Maersk Valiant’s contract with TotalEnergies. Read More

Oil India exits US shale venture, sells 20 pc stake for $25 million. OIL and Indian Oil Corporation (IOC) had together in October 2012 bought a 30 per cent stake in Houston-based Carrizo Oil & Gas’s Niobrara shale asset in Colorado for USD 82.5 million. Read More

OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.

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