Energy News Digest to 17th Mar. 2022. OPEC daily basket price stood at $104.06/bl, Wed, 16th Mar. 2022
Total OECD production of crude oil, NGL and refinery feedstocks increased by 3.5% in December 2021 compared to December 2020.Production of natural gas increased by 4.7% compared to December 2020.
Mitsubishi Heavy Industries Engineering, Ltd. (MHIENG) and Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (MHIEC) – two group companies of Mitsubishi Heavy Industries, Ltd. (MHI), both based in Yokohama – are poised to commence demonstration testing of equipment for separation, capture and effective utilization of CO2 emissions from a local waste-to-energy (WtE) plant. The test program will be conducted together with the city of Yokohama and Tokyo Gas Co., Ltd. The four parties recently signed a memorandum of collaboration, their collective goal set on realizing a carbon neutral society. The demonstration testing, a joint undertaking by the private and public sectors, will integrate MHIEC and Yokohama’s knowhow in the operation of WtE plants, MHIENG’s high-performance carbon capture technology, and Tokyo Gas’ expertise in hydrogen and carbon usage. The aim is to separate, capture and effectively recycle the mainly biomass-derived CO2 in the flue gas generated during the incineration of household waste. Read More
ACWA Power achieved an operating income before impairment loss and other expenses – a key financial performance indicator for the company, of SAR 2,193 billion, which was 12.5% higher than 2020. The upsurge was mainly driven by higher development and construction management services fees from projects achieving financial close, in addition to higher operation and maintenance income from projects achieving their commercial operation dates and commencing revenue generation. Adjusted net profit attributable to equity holders of the parent, which neutralizes the impact of non-routine or non-operational transactions on the profit attributable to equity holders of the parent as reported on the consolidated statement of profit or loss of the company, increased by 3.1% from the previous year to reach SAR 1,194 million in 2021. Major adjustments to the consolidated net profit attributable to equity holders of the company, which declined by 14% to SAR 759 million, were one-time IPO employee bonus and incentive plan charges; impairment charges in relation to two assets; and a provision for Zakat and tax on prior year assessments. The Company had previously disclosed its IPO bonus and incentive plan in the IPO Prospectus and during the subsequent earnings’ call for the Company’s nine-month 2021 results. The Company raised SAR 4.8 billion before deducting transaction costs as a result of the listing and SAR 2.8 billion from its inaugural Sukuk issuance in Saudi Arabia. Reinforced by a strong parent operating cash flow of SAR 1.6 billion, which was 51.4% higher than a year ago, the Company utilized part of this cash for some of the investments, for payment of SAR 800 million dividends declared in 2020 and for corporate debt service. End of period parent level cash holding stood at SAR 4.5 billion. Read More
Mitsubishi Shipbuilding Co., Ltd. has completed investment into Marindows Inc., a Tokyo-based firm aiming to utilize the revolution in information technology to build an integrated digital platform for the marine industry. Amid the current energy revolution, this partnership will accelerate efforts to achieve a carbon neutral world in areas from electrification and autonomous operation to the marine industry, create new value by merging the physical and digital, and establish a “win-win” relationship with substantial benefits for both companies. Electrification and autonomous operation in the coastal vessel industry has become increasingly widespread, particularly in the small and mid-sized vessel market. This investment will provide a network with the small and mid-sized coastal vessel market, fishing boat market, and pleasure boat market that will support Mitsubishi Shipbuilding’s efforts for the commercialization of standard electric propulsion vessels, and furthering the adoption of a safe and efficient navigation support system utilizing real-time data. Read More
Clarksons Research has released on to its Offshore Intelligence Network (OIN) platform the latest edition of its semi-annual review of the offshore energy markets, Offshore Review & Outlook. Summarising the report, Steve Gordon, Managing Director of Clarksons Research, commented:
Offshore markets are making encouraging progress, with the Clarkson Offshore Index (covering Rig, OSV and Subsea dayrates) up 32% since start 2021, reaching levels last seen in 2015. The oil price environment, increasing offshore activity and impacts on fleet supply of consolidation, restructuring, limited newbuilding and ongoing removals have all been supportive. Overall, sentiment is positive for further market improvements. Offshore wind meanwhile, continued its rapid and exciting growth phase, with ongoing newbuild investment and high peak season vessel utilisation. More
The United Nations’ highest court on Wednesday ordered Russia to stop hostilities in Ukraine, granting measures requested by Kyiv although many are skeptical that Russia will comply. Two weeks ago, Ukraine asked the International Court of Justice – also known as the World Court – to intervene, arguing Russia violated the 1948 Genocide Convention by falsely accusing Ukraine of committing genocide and using that as a pretext for the ongoing invasion. Read More
From Angola to the US: Which countries can wean Europe off Russian gas?
While Russian gas only accounts for 3 per cent of US imported supply and 5 per cent of UK imported supply, the EU depends on a whopping 40 per cent. Some individual countries rely disproportionately on these exports. Serbia’s Russian gas supplies make up 89 per cent, in Finland it’s 94 per cent and Bosnia and Herzegovina is 100 per cent dependent. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $98.40 | Up |
| Crude Oil (Brent) | USD/bbl | $101.90 | Down |
| Bonny Light | USD/bbl | $102.10 | Down |
| Natural Gas | USD/MMBtu | $4.73 | Up |
| OPEC basket 16/03/22 | USD/bbl | $104.06 | Up |
Oil prices will remain higher than $100 per barrel in the coming months, reflecting the geopolitical risk from Russia’s war in Ukraine and the tight energy markets with the current and potential future sanctions against Russia, the Energy Information Administration (EIA) Read More
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 11th March 2022 | 663 | +13 |
| Canada | 11th March 2022 | 206 | -11 |
| International | February 2022 | 813 | -28 |
Environmentally-focused search engine Ecosia has announced an investment of $23 million into solar energy platform Zolar to help households speed up the transition to renewable energy. The platform, Europe’s largest search engine, is also calling on businesses across Europe to invest in reducing the continent’s over-reliance on fossil fuels and to combat the climate crisis. Read More
