Energy News Digest to 28th Feb. 2022
Gold prices increased by more than two percent last week after Russia launched a full-scale invasion of Ukraine.
The full guide to understanding electric vehicles and their safety ratings.
Electric vehicles (EVs) are becoming an increasingly popular option amongst environmentally conscious drivers. The desire to protect our planet has arguably never been greater than during this period of mass uncertainty, sparked by the coronavirus pandemic. As such, more of us are turning to EVs as a viable step in the fight against global warming.
But how much can we say we really know about this form of transport? In this guide, we’re going to break down just what it means to drive an EV, while also taking a detailed look at the safety ratings and standards which determine their roadworthiness. There is, without question, a steep rise in the number of people choosing to drive an EV in 2021. In fact, in the first quarter of the year alone, the amount of EVs registered has already exceeded the total figure the entirety of 2017 – as well as doubling in strength from Q1 of 2019.
It’s in China where most sales are happening, with reports showing a staggering 396,300 vehicles sold in that quarter alone. The figures look just as healthy across the rest of the globe, with numbers showing: Read More
AuREUS system is an evolution for walls/windows, and uses technology synthesized from upcycled crop waste to absorb stray UV light from sunlight and convert it to clean renewable electricity. It champions the issues of UV sequestration, better access to solar energy for climate change mitigation and supporting the local agriculture industry hit by calamities by upcycling crops that would otherwise be considered wastes thus, mitigating farmer loss. To attend the webcast presentation at 16.00 CET on 7 March 2022, please click on the link to register:
According to the Wall Street Journal, amid this fear, shipping companies are refusing to load Urals crude, while trading houses are running up against hurdles in getting bank funding based on letters of credit.
Additionally, WSJ said that some refining companies are already rejecting Russian crude oil.
“The key word today is obviously hold off and do not do anything that could backfire in the future,” WSJ cited Hugo De Stoop, chief executive of tanker company Euronav, as saying. “At the moment, we’re not touching any cargo that’s linked to Russia.”
At the same time, Indian refiners have scooped up 6 million barrels of discounted Russian Urals crude, traders told Bloomberg. Read More
Eni and the Ministry of Agriculture and Rural Development of the Republic of Mozambique (MADER) signed today an agreement for the cooperation and development of agricultural projects in Mozambique, aimed at producing oil seeds and vegetable oils to be used as agro-feedstock for the production of biofuels.
Under the agreement, Eni and MADER will assess potential sites and the most appropriate crops for the production of oil seeds and vegetable oils, focusing on areas that would not compete with food production and taking into consideration the preservation of forests and natural ecosystems. Other initiatives include the collection and valorisation of agricultural and agro-processing residues, by-products and co-products, for production of biofeedstock and Natural Climate Solutions (NCS). Read More
| Oil and Gas Prices | Units | Price $ | change |
| Crude Oil (WTI) | USD/bbl | $94.69 | Down |
| Crude Oil (Brent) | USD/bbl | $100.60 | Down |
| Bonny Light | USD/bbl | $96.15 | Down |
| Natural Gas | USD/MMBtu | $4.41 | Down |
| OPEC basket 25/02/22 | USD/bbl | $98.67 | Down |
Lukoil, along with other Russian stocks, sold off violently this week. Sanctions were announced, but there isn’t going to be any impact on the flow of energy from Russia to the rest of the world. Shares are dirt cheap, with a price-to-earnings ratio below 4x and a double-digit dividend yield. The majority of the company’s revenues are denominated in dollars, hedging against further declines in the ruble. Investors with a healthy risk appetite and an ability to separate their emotions from their decision-making process might consider Lukoil. Read More
Lithium Americas Corp. announced the Company has submitted a draft application to the US Department of Energy (“DOE”) for funding to be used at its 100%-owned Thacker Pass lithium project in Humboldt County, Nevada (“Thacker Pass”) through the Advanced Technologies Vehicle Manufacturing Loan Program (the “Loan Program”). The Loan Program is designed to provide funding to US companies engaged in the manufacturing of advanced technology vehicles and components used in those vehicles. Read More
From 21 February until 25 February, Equinor ASA has purchased a total of 1,841,564 own shares at the Oslo Stock Exchange at an average price of NOK 277.3989 per share Date on which the first tranche of the share buy-back programme for 2022 was announced: 9 February 2022. The duration of the first tranche of the buy-back programme for 2022: 10 February to 25 March 2022. Size of the buy-back programme: Up to 58,036,190 shares, with a maximum total consideration for the first tranche: USD 330,000,000. . Read More
Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) (“REG”) announced today a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.The acquisition combines REG’s growing renewable fuels production and leading feedstock capabilities with Chevron’s large manufacturing, distribution and commercial marketing position. Read More–>
Desert Mountain Energy Corp. announce that it has defined three edges of a Hydrogen field with wells #4 (11-1), #5 (1-1), #6 (10-1). The Company has set and cemented surface and intermediate strings of casing and is in the process of finishing up drilling in the McCauley field. Based on information garnered from drilling operations thus far, the Company is planning on setting and cementing additional production casing to total depth. The well will be drilled to a total depth of approximately 4,000′ into the top of the granite formation. Read More–>
BP shares slumped more than 4 per cent today as it faces a $25billion hit from ditching a stake in Russian energy giant Rosneft – with Britons’ pensions feeling the pain.
The oil company saw a huge chunk wiped off its value following the announcement about abandoning the 19.75 per cent holding in the wake of the invasion of Ukraine.
The punishment came as the FTSE 100 index fell 1 per cent early trading as the markets digested the huge sanctions package being imposed by the West. Read More
‘clean’ energy’s dirty little secret
The enormous white windmills are sprouting on land and off coastlines in ever-greater numbers, including in Britain, which is building the world’s biggest offshore wind farm in the North Sea.
But they come with a hidden environmental cost that is rarely mentioned: they don’t last for ever: only 20 to 25 years, in fact. And the blades, built from a ‘composite’ of fibreglass and resin that can withstand hurricane-force winds but be light enough to turn, cannot easily be crushed, let alone recycled. Scientists are looking for ways to separate the resins from the fibres or grind chunks of blade into small pellets that can be used in other products, but they’re struggling to find any process that works on a large scale. Amid the zeal to recycle, there’s no small irony in the fact the main sources of renewable energy cannot themselves be renewed when they reach the end of their life. Read More
| Region | Period | Rig Count | Change from Prior Count |
| U.S.A | 25th February 2022 | 650 | +5 |
| Canada | 25th February 2022 | 224 | +4 |
| International | January 2022 | 841 | — |
Occidental (NYSE: OXY) today announced that it has commenced cash tender offers (each, an “Offer” and collectively, the “Offers”) to purchase its outstanding notes listed in the tables below (the “Notes,” and each, a “Series” of Notes) in two separate pools (each, a “Pool”). Occidental’s obligation to accept for purchase, based on the Acceptance Priority Levels (as defined below) set forth in the columns entitled “Acceptance Priority Level” in the tables below, and pay for Notes that are validly tendered and not validly withdrawn is limited to an aggregate amount (including principal and premium but excluding accrued and unpaid interest) of (a) $1,500,000,000 (as such amount may be increased or waived pursuant to the terms of the Offer to Purchase, the “Pool 1 Maximum Purchase Price”) for all of the Pool 1 Notes (as defined below) and (b) $1,000,000,000 (as such amount may be increased or waived pursuant to the terms of the Offer to Purchase, the “Pool 2 Maximum Purchase Price”) for all of the Pool 2 Notes (as defined below). The Offers are being made on the terms and subject to the conditions set forth in the Offer to Purchase dated February 28, 2022 (the “Offer to Purchase”). Capitalized terms used in this release but not otherwise defined have the meaning given in the Offer to Purchase.
The Offers will expire at 5:00 p.m., New York City time, on March 4, 2022, unless extended or earlier terminated as described in the Offer to Purchase (such time and date, as they may be extended, the “Expiration Time”). Holders of the Notes (“Holders”) may withdraw their validly tendered Notes at any time at or prior to 5:00 p.m., New York City time, on March 4, 2022, unless extended (such time and date, as they may be extended, the “Withdrawal Time”). Holders are urged to read the Offer to Purchase carefully before making any decision with respect to the Offers. Read More
VFuels LLC, a full-service oil and gas engineering, design and fabrication firm that specializes in modular process equipment, and Earth Technologies Middle East S.A.L Offshore, a renewable energy company that specializes in the development, EPC and consultancy of renewable energy projects, have recently entered into a joint venture agreement amongst themselves to collaborate in developing and installing renewable energy infrastructure for oil and gas assets including refineries throughout Africa. The need for the partnership arose from both companies’ desire to promote sustainability, energy efficiency, renewable and green energies as well as reducing greenhouse gas emissions. VFuels and Earth Technologies are confident that in combining their complementary skills, experience and resources to work together, they can make a positive impact in this regard. Read More
PDC Energy, Inc. today announced it has entered into a definitive purchase agreement with Great Western Petroleum, LLC (“Great Western”) and certain sellers under which PDC will acquire Great Western in a transaction valued at approximately $1.3 billion, including net debt of approximately $500 million (the “Acquisition”). Great Western is a Denver-based DJ Basin operator owned by affiliates of EIG, TPG Energy Solutions, L.P. and The Broe Group. Under the terms of the agreement, the Acquisition will be financed through the issuance of approximately 4.0 million shares of common stock to existing Great Western shareholders and approximately $543 million of cash, subject to customary post-closing adjustments. The transaction is expected to close in the second quarter of 2022 and is expected to be financed with cash on hand and borrowings under the Company’s credit facility. PDC does not expect its pro forma leverage ratio to exceed 1.0x upon closing. Read More
The COT reports published weekly by the US CFTC highlight futures positions and changes made by hedge funds across commodities, forex and financials. This update covers the week to February 22, and once again it was a reporting week that ended a few days before a major risk event took place, this time Russia’s attack on Ukraine last Thursday. An attack that triggered major moves across most asset classes, not least commodities where speculators reacted to the prospect for the conflict impacting several commodities from oil and gas to gold and wheat. Crude oil experienced another week of wild swings with the initial but later deflated threat of Russian supplies being curbed due to sanctions driving Brent crude oil above $105 and WTI above $100 for the first time in seven years. After surging 15 dollars in a matter of days, crude oil then gave back more than half of those gains ahead of the weekend after US sanctions stayed clear of targeting Russia’s ability to export crude oil. In addition, traders had to deal with the potential impact of another release of oil from US strategic reserves as well as ongoing Iran nuclear talks where an agreement would increase supply.
OPEC+ meets next week but at this stage the group has shown no inclination to increase production, primarily due to the fact many producers are already struggling to reach their production targets while Russia, if allowed, is likely to hit its production limit within months. With this in mind, the oil market is likely to remain supported with an easing of tensions unlikely to send prices down by more than ten dollars.
With Saudi Arabia being one of the few producers with a meaningful amount of spare capacity not showing any willingness to add additional supplies, the market has increasingly turned its attention to Iran and renewed efforts to revive the nuclear accord. An agreement could according to the IEA add 1.3 million barrels per day, an amount that would help stabilize but probably not send prices lower. Read More
In conformity with the FCA’s Disclosure Guidance and Transparency Rules, Tullow Oil plc today announces the following:
As at 28 February 2022, Tullow Oil plc’s issued share capital consisted of 1,433,992,429 ordinary shares (with a nominal value of 10p each) with voting rights. No ordinary shares were held in treasury. Therefore, the total number of voting rights in Tullow Oil plc was 1,433,992,429. The above figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, Tullow Oil plc under the FCA’s Disclosure Guidance and Transparency Rules. Read More
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
Disclaimer: News articles reported on OilAndGasPress are a reflection of what is published in the media. OilAndGasPress is not in a position to verify the accuracy of daily news articles. The materials provided are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
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