Energy News to 07/11/22. OPEC daily basket price stood at $96.15/bl, 04 Nov. 2022
Oil Prices Hit Two Month High as China Eases Covid Restrictions thereby allowing for higher crude demand.
Enbridge Inc. (Enbridge or the Company announced the successful completion of an open season for increased transportation capacity on the T-South segment of its B.C. Pipeline (T-South), a natural gas pipeline system, which originates near Chetwynd, British Columbia (B.C.) and extends south to the Canada-U.S. border at Huntingdon-Sumas.
The open season was over-subscribed, and Enbridge has sanctioned and is proceeding with a 300 million cubic feet per day (MMcf/d) expansion at a capital cost of up to CAD $3.6 billion. “This expansion illustrates the immense strategic importance of our B.C. natural gas system in supplying regional and global energy demand with low-emission natural gas,” said Cynthia Hansen, Executive Vice President and President of Gas Transmission and Midstream at Enbridge. “And it also demonstrates how we’re able to leverage our conventional energy transportation assets to extend our growth and generate value for our shareholders.”
The T-South expansion will involve adding pipeline loops and additional compression under a cost-of-service framework, backed by long-term contracts with a weighted average term of 65 years. The location of the loops and accompanying compression will be determined in the coming months after detailed consultation with Indigenous communities and stakeholders and after environmental and routing assessment have been completed. Once complete, the capital cost estimate will be updated prior to filing the regulatory application, anticipated in 2024. Read More
Enbridge Inc. announced that it will conduct an open season for additional natural gas transportation service on the T-North segment of its B.C. Pipeline (T-North), a natural gas pipeline system in British Columbia (B.C.). T-North runs from the Fort Nelson area and transports natural gas south to the T-South segment of the Company’s B.C. pipeline system (T-South) and east to interconnecting pipelines at the B.C.-Alberta border.
Pending sufficient customer interest, the open season could result in an expansion of T-North of approximately 500 million cubic feet per day (MMcf/d) at a capital cost of up to CAD $1.9 billion. The potential expansion would serve growing regional demand for natural gas, West Coast LNG exports and downstream demand.
The T-North open season will begin on November 4, 2022 and is targeted to end on January 10, 2023. Read More
KBR announced today that it has been awarded a contract by Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL) to help three DFPCL plants achieve lower emissions and simultaneously increase production capacity.”We have a long-standing relationship with DFPCL and are pleased to help them modernize their existing assets and lower their carbon-footprint,” said Doug Kelly, president of KBR Technology. “We are confident that these plants will continue to contribute towards DFPCL’s business and ESG objectives.”
DFPCL is among India’s leading manufacturers of industrial chemicals and fertilizers. With a strong presence in technical ammonium nitrate (mining chemicals), industrial chemicals and crop nutrition, DFPCL supports critical economic sectors such as infrastructure, mining, chemicals, pharmaceuticals and agriculture.
“Deepak Fertilizers has prioritized safety, sustainability, efficiency and reliability as the most important parameters for its nitric acid manufacturing operations and targets to establish global benchmark,” said Mukul Agrawal, President of Operations at DFPCL. “We are very pleased with the close collaboration and technology support provided by KBR, which helps us continually improve the performance of our nitric acid plants. DFPCL is also working on capacity enhancement of its remaining plants in a phased manner.”
Since 1954, KBR has licensed 76 grassroots nitric acid plants globally. KBR nitric acid is the No. 1 technology in the demanding U.S. market. Read More
CargoAi, air cargo’s fastest growing digital solutions provider, and Neste, the world’s leading producer of sustainable aviation fuel (SAF), announce a pioneering partnership which enables freight forwarders and their clients to significantly reduce the carbon emissions of their cargo transport through the purchase of Neste MY Sustainable Aviation Fuel™. Freight forwarders arrange transportation for the cargo of other companies and play a pivotal role in reducing the carbon emissions associated with such cargo transports. As of November 2022 onwards, CargoAi offers the possibility to purchase Neste MY Sustainable Aviation Fuel when booking a cargo transport. This can be done in the booking flow – either after a booking is confirmed or when the cargo is being tracked. This complements CargoAi’s Cargo2ZERO sustainability offering launched in October 2022. The use of sustainable aviation fuel significantly reduces greenhouse gas emissions from air transport. Purchasing Neste-produced SAF helps companies meet their climate targets and credibly report their CO2e emissions reductions. “We are proud of this landmark partnership with Neste, as sustainability is at the core of all our product developments and customer interactions. Building on the CO2 Efficiency Score already available in our Cargo2ZERO solution, will further encourage forwarders to enter into discussions with their own clients about what is needed for the industry to move forward towards reaching the industry’s Net Zero targets together. We are also enabling access for smaller freight forwarding companies in 110 countries to purchase SAF in smaller quantities,” says Matthieu Petot, CEO of CargoAi. Read More
Just Stop Oil supporters have climbed onto motorway gantries around the M25 as part of their campaign to demand that the government halts all new oil and gas licences and consents [1] At 7.30am this morning, in at least 6 locations, supporters of Just Stop Oil climbed onto the overhead gantries of the M25, both clockwise and anti-clockwise causing police to halt traffic. Yesterday evening, Just Stop Oil contacted the Metropolitan Police and National Highways Ltd to advise them that there would major disruption on the M25, and ask them to implement a 30mph speed limit, in line with their responsibilities to keep the public safe. Read More
Africa Oil Corp. announce that the Company repurchased a total of 1,924,350 Africa Oil common shares during the period of October 31, 2022 to November 4, 2022 under the previously announced share buyback program. The launch of Africa Oil’s normal course issuer bid (share buyback) program, announced by the Company on September 22, 2022, is being implemented in accordance with the Market Abuse Regulation (EU) No 596/2014 (MAR) and Commission Delegated Regulation (EU) No 2016/1052 (Safe Harbour Regulation) and the applicable rules and policies of the Toronto Stock Exchange (“TSX”), Nasdaq Stockholm, and applicable Canadian and Swedish securities laws. During the period dated October 31, 2022 to November 4, 2022, the Company repurchased 834,350 Africa Oil common shares on the TSX and/or alternative Canadian trading systems. The repurchases were carried out by Scotia Capital Inc. on behalf of the Company. During the same period, the Company repurchased 1,090,000 Africa Oil common shares on Nasdaq Stockholm, and these repurchases were carried out by Pareto Securities on behalf of the Company.
All common shares repurchased by Africa Oil under the share buyback program will be cancelled. During the period dated October 31, 2022 to November 4, 2022, the Company cancelled 1,250,000 common shares repurchased under the share buyback program. Read More
South Korean officials and leaders from Japan are expressing concerns over the new US EV tax credit requirements that kick in at the end of the year. New reports are surfacing that Japan and South Korea will request flexibility in the rule changes. Will they get their way, paving the way for automakers like Toyota, Hyundai, and Kia electric vehicles to qualify? The Biden Administration passed the landmark Inflation Reduction Act (IRA) in August, introducing a new set of incentives to buy an electric vehicle with up to $7,500 in tax relief. However, for an automaker’s EV model to qualify, it must meet strict battery sourcing and assembly requirements. Half of the tax credit ($3,750) is concerning using critical EV battery minerals, which states at least 40% of the value of the minerals used must be manufactured or assembled in the US or with its free trade partners. Read More
The UK’s onshore and offshore wind farms generated more than 20 gigawatts (GW) for the first time, setting a new record, according to National Grid ESO.
Renewables trade association RenewableUK reports today that it’s the second wind energy generation record to be set within the space of a week.
UK wind generation set the record during the half-hour period from noon to 12:30 p.m., when it reached 20,896 megawatts (MW) – providing an impressive 53% of the UK’s electricity. And in more good news, National Grid ESO reported that yesterday, wind, solar, nuclear, hydro, and storage – all low emissions sources – provided 70% of the UK’s electricity overall. Read More
The onshore planning application for the Pentland Floating Offshore Wind Farm (PFOWF) has now been submitted to The Highland Council.
Following extensive public consultation, very few changes were made to the application for Planning Permission in Principle. This application covers the onshore infrastructure elements of the project and includes the onshore application boundary, an Environmental Impact Assessment and visualisations of indicative substation locations.
When approved, this consent will enable the project to build an onshore substation with cables which will feed power from the floating offshore wind turbines into the existing local grid network, providing the country with much-needed renewable energy.
Richard Copeland, Project Director, said: “Submitting the onshore planning application marks another key milestone for Pentland, which will be capable of providing clean energy to approximately 70,000 homes, bringing a number of benefits to the local area in the process. “It was encouraging to see that the onshore plans were well received with very few changes made to the application following local consultation. At every stage of this project, we’ve aimed to consult as comprehensively as possible to ensure the development remains considerate of the region and its residents. “The onshore application submission follows the submission of the offshore consent application to Marine Scotland in August this year. Alongside these developments, we’ve continued to progress initiatives such as developing an Operations and Maintenance base at Scrabster harbour, consulting on our proposed community benefit fund and supporting local STEM careers through our regional bursary awards.” Read More
Vineyard Wind announced that cable installation for the first commercial scale offshore windfarm has begun approximately 15 miles south of Martha’s Vineyard.
The work is being conducted by Prysmian Group, the global leader in subsea cable manufacturing and installation. Prysmian recently announced plans to build the first U.S.-based offshore wind subsea cable factory in Somerset, Massachusetts, adding to its strong North American footprint that includes 28 manufacturing facilities.
Prysmian is being supported by Foss Maritime, a US based, unionized maritime service company. The firm’s Nicole Foss will assist with both the offshore and nearshore work in the coming weeks. Fishing vessel Fleet King, which is being provide by Sea Services, is working alongside the Cable Enterprise to ensure good communication with fishermen and other mariners in the area. Read More
Tokyo Gas Co., Ltd. and Kyocera Corporation have announced that the world’s smallest and lightest household fuel cell, Ene-Farm Mini The new model will be released from January 26, 2023 . Based on requests from customers, construction shops, maintenance shops, etc. for the current machine (released in fiscal 2019), both companies will review the layout and shape of parts to reduce the installation space *4 and improve the work efficiency of construction and maintenance. We have commercialized a new “fuel cell power generation unit (with built-in hot water tank)”. Read More
Odawara City, Odawara Gas Co., Ltd. , and Tokyo Gas Co., Ltd. announced Comprehensive partnership agreement for the realization of community development” was concluded. In promoting sustainable urban development and initiatives for regional revitalization, it is required to promote regional revitalization driven by SDGs (regional revitalization SDGs) and accelerate the resolution of regional issues such as decarbonization. It is In July 2019, Odawara City was selected as a “SDGs Future City” and “Local Government SDGs Model Project” by the Cabinet Office. In November 2019, the city announced its “Zero Carbon City Declaration,” which aims to achieve virtually zero carbon dioxide emissions by 2050. Furthermore, on the 1st of this month, it was selected as a “decarbonization advanced area” by the government, and we are further evolving and accelerating our efforts to realize a “sustainable local community.” This agreement aims to “realize sustainable urban development” by utilizing knowledge and technology related to a decarbonized society under mutual cooperation among the three parties. Read More
WTI for December delivery advanced $4.44 to settle at $92.61 a barrel in New York.
Brent for January settlement gained $3.90 to $98.57 a barrel.
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $91.82 | Up |
| Crude Oil (Brent) | USD/bbl | $97.88 | Up |
| Bonny Light | USD/bbl | $98.40 | Up |
| Saharan Blend | USD/bbl | $100.37 | Up |
| Natural Gas | USD/MMBtu | $7.08 | Up |
| OPEC basket 04/11/22 | USD/bbl | $96.15 | Up |
Wizz Air, Europe’s fastest growing airline, has today been named Global Environmental Sustainability Airline Group of the Year at the inaugural CAPA (Centre for Aviation) Asia Aviation Summit and Sustainability Expo in Singapore. The airline also received recognition as the EMEA Environmental Sustainability Airline of the Year.
The CAPA Environmental Sustainability Awards for Excellence recognise airlines and airports who put climate change at the forefront of their business and strive for carbon neutrality. The awards are independently researched by CAPA’s Analysts and carbon reduction strategists, Envest Global. CAPA, part of the Aviation Week Network, is one of the world’s most trusted sources of market intelligence for the aviation and travel industry. Wizz Air is proud to have the lowest CO2 emissions per passenger kilometre in Europe and is committed to further reducing its CO2 emissions by 25% by 2030. As part of our ambitious fleet renewal plan, the airline has been continuously adding new Airbus A321neo aircraft to its fleet and currently operates one of the youngest and most fuel-efficient fleets in the world, with an average age of 4.6 years. Wizz Air is the biggest operator of the Airbus A321neo in Europe and has one of the largest standalone order books globally of over 370 state-of-the-art Airbus A321neo aircraft, which will help the airline to meet its sustainability targets. On top of fleet renewal, the operational teams are constantly working on fuel efficiency initiatives and improving the related data science. Read More
Flydubai, the Dubai-based airline, announced the launch of flights to six destinations as it continues to grow its network. This includes the start of flights to Cagliari, Corfu, Krabi, Milan and Pattaya from 2023 as well as the resumption of flights to Hofuf from 24 November 2022 and flights are available for booking on flydubai.com.
Since the start of 2022, flydubai has launched flights to more than 20 destinations, including Pisa and Catania in Italy, Osh in Kyrgyzstan as well as Samarkand and Namangan in Uzbekistan. The addition of these six routes will see the flydubai network expand to 113 destinations in 53 countries. This represents a significant milestone as it is the largest number of destinations the carrier will serve since it began operations. Read More
Unéole, a Rochin, France-based company, has designed a renewable energy generation system by combining wind turbines and solar panels in one setup. This design is ideal for buildings that have a high electricity demand but not much space to accommodate renewable energy generation systems.
As well as maximizing production across all seasons, the Unéole hybrid energy system “allows us to offer the most profitable, balanced, and least expensive urban renewable energy production system in a carbon cost,” writes the company. To ensure a low carbon footprint, the wind turbines are built from recycled or recyclable materials (aluminum and stainless steel) and close to the operating site, promoting local production. The startup also adopts specific algorithms to determine the ideal number of wind turbines and photovoltaic panels for each type of building. Read More
EOG Resources Reports Third Quarter 2022 Results
Total company crude oil production in 3Q of 465,100 Bopd was above the midpoint of the guidance range and up less than 1% compared with 2Q. NGL production increased 4% compared with 2Q and was also above the midpoint of the guidance range. Natural gas production declined 4% compared with 2Q primarily due to plant maintenance in Trinidad, but was above the midpoint of the guidance range.
Prices and Hedges
Crude oil and NGL prices declined in 3Q compared with 2Q while natural gas prices increased. Price declines were more than offset by a $1.3 billion reduction in cash paid for hedge settlements in 3Q compared with 2Q.
Per-Unit Costs and Other
Cash operating costs increased to $10.70 per BOE in 3Q compared with $10.12 per BOE in 2Q, primarily from gathering and processing, transportation, and lease and well costs. A lower DD&A rate partially offset the increase in cash operating costs.
Change in Cash 3Q 2022 vs 2Q 2022
Free Cash Flow
EOG generated cash flow from operations before changes in working capital of $3.43 billion in 3Q. The company incurred $1.17 billion of capital expenditures, resulting in $2.26 billion of free cash flow.
Working Capital and Dividends
Changes in working capital accounted for $1.25 billion of the increase in cash during 3Q, primarily due to a reduction in collateral posted in connection with financial commodity derivative contracts. EOG paid $1.31 billion in dividends in 3Q, including $874 million of special dividends.
Third Quarter 2022 Operating Performance
Lease and Well
Per-unit LOE costs increased $0.09 in 3Q compared with 2Q, within the guidance range. Higher fuel and water handling costs were the primary drivers of the increase.
Transportation, Gathering and Processing
Per-unit transportation and G&P costs in 3Q were both above the guidance midpoints and above 2Q primarily due to higher fuel prices.
General and Administrative
Per-unit G&A costs in 3Q were below the guidance midpoint because a transaction expected to occur in 3Q was not executed until 4Q. Per-unit costs in 3Q were above 2Q because of seasonally higher employee-related costs.
Depreciation, Depletion and Amortization
Per-unit DD&A costs in 3Q were below the guidance midpoint and decreased $0.16 compared with 2Q. The addition of lower-cost reserves drove the decrease.
Regular and Special Dividends and Ohio Utica
Regular Dividend Increased 10% to $3.30 per Share Indicated Annual Rate
The Board of Directors today declared a regular dividend of $0.825 per share on EOG’s common stock. The dividend will be payable January 31, 2023, to stockholders of record as of January 17, 2023. The new dividend represents an indicated annual rate of $3.30 per share, a 10% increase from the previous level. The increase reflects improvements across the company during 2022 from sustainable efficiencies and innovations, progressing new and emerging plays, and increased financial strength. EOG has never suspended or reduced its regular dividend. $1.50 per Share Special Dividend The Board of Directors also today declared a special dividend of $1.50 per share on EOG’s common stock. The special dividend will be payable December 30, 2022, to stockholders of record as of December 15, 2022. EOG has now committed to return $5.1 billion of cash to shareholders in 2022 through regular quarterly and special dividends. Read More
Repsol has acquired 33% of the technology company Smarkia, a software-as-a-service platform that provides its customers with energy optimization solutions. For its part, the US renewable energy company MN8 Energy has acquired 37% of the startup. In the same operation, Repsol has transferred one of its energy optimization technologies to Smarkia, which will be in charge of its commercialization.
Repsol has found in Smarkia’s technology platform a perfect complement to enhance the technology developed in its innovation center Repsol Technology Lab over the last few years. Now, researchers from both companies will share their experience in the digitalization of energy management to enhance current developments, using technologies such as artificial intelligence, the internet of things and edge computing. In turn, this combination will allow Smarkia to position itself at the forefront in innovative sectors such as flexibility markets or the optimization of renewable energy generation.
MN8’s entry into Smarkia’s capital aligns with its strategy of investing in technologies that allow it to offer digital solutions that help its customers’ energy transition. In addition, MN8 Energy has one of the largest solar portfolios in the US, with 850 solar projects and an installed capacity of more than 2.6 GW, which makes it a key player in this collaboration, thanks to its experience in the operation of renewable energy assets. Read More
Baker Hughes Rig Count
U.S. Rig Count is up 2 from last week to 770 with oil rigs up 3 to 613, gas rigs down 1 to 155 and miscellaneous rigs unchanged at 2.
Canada Rig Count is down 3 from last week to 209, with oil rigs down 4 to 141, gas rigs up 1 to 68.
International Rig Count is up 32 rigs from last month to 911 with land rigs up 28 to 688, offshore rigs up 4 to 223. The Worldwide Rig Count for October was 1,893, up 40 from September 2022
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 04 November 2022 | 770 | +2 |
| Canada | 04 November 2022 | 209 | -3 |
| International | October 2022 | 911 | +32 |
OilandGasPress Energy News and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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