Energy News to 08/11/22. OPEC daily basket price stood at $97.32/bl, 07 Nov. 2022
Oil fell after China signaled no relaxation of its Covid Zero stance. China’s Covid Zero strategy relies on a combination of lockdowns and mass testing to stamp out infections, and its implementation has weighed on the nation’s economy and been a sustained headwind for the global crude market. Countrywide, more than 5,400 new cases were reported for Sunday, up 27% from a day earlier and the most since May 2 according to media reports
U.S. Environmental Protection Agency (EPA) announced the selection of 29 Environmental Finance Centers (EFCs) that will help communities across the country access federal funding for infrastructure and greenhouse gas reduction projects that improve public health and environmental protection. The EFCs will deliver targeted technical assistance to local governments, states, Tribes, and non-governmental organizations to protect public health, safeguard the environment, and advance environmental justice. Thanks to President Biden’s Bipartisan Infrastructure Law, the selected EFCs will help underserved communities that have historically struggled to access federal funding receive the support they need to access resources for water infrastructure improvements.
“The Biden Administration is committed to ensuring that all people have access to clean air to breathe, safe water to drink, and clean land to live on,” said EPA Deputy Administrator Janet McCabe. “To achieve this goal and protect public health, we must uplift and support underserved and overburdened communities across rural, suburban, and urban areas. The new Environmental Finance Centers EPA is announcing today will help connect communities in need with federal funding opportunities, including historic water infrastructure investments through the Bipartisan Infrastructure Law and investments in greenhouse gas and air pollution projects through the Inflation Reduction Act.”
EPA will award up to $150 million in grants to EFCs over the next five years, once all legal and administrative requirements are satisfied. The Bipartisan Infrastructure Law provides $98 million of the total investment through EPA’s Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF), with the remainder of funds coming from EPA appropriations. Read More
For the second year in a row, Laureus, in partnership with Sportspro, has named Nissan one of the world’s most socially impactful brands in its Laureus Sports for Good Index. The index highlights Nissan’s positive influence on sports through a variety of initiatives, including its participation in the all-electric Formula E racing series and projects designed to help people with disabilities participate in sporting activities, such as the Nissan Possibilities Project in the United Kingdom.
As the only automotive company named in the index, the recognition accredited Nissan’s commitment to become a truly sustainable company and to contribute to a cleaner, safer and more inclusive world. This is integral to the company’s long-term Nissan Ambition 2030 vision to empower mobility and beyond through electrification and vehicle intelligence technologies. Launched in 2021, the index celebrates 29 brands that, through collaboration, innovation and creativity, are making significant contributions across the 17 Sustainable Development Goals (SDGs) laid out by the United Nations.
Joji Tagawa, Nissan’s chief sustainability officer, said: “We are extremely proud to be recognized again by the Laureus Sport for Good Index, for our efforts to positively impact individuals and society through the power of sport. Sustainability is at the core of our business and is an enabler of our long-term vision. We will continue driving sustainability initiatives across our business that empower mobility and beyond.” Read More
Research body Welligence Energy Analytics has predicted that the likes of BP, Equinor and Shell will account for over 40 per cent of production by the end of the decade.
According to data shared with trade publication Energy Voice, it predicts the development of the largest untapped fossil fuel reserves such as Rosebank and Jackdaw, which are being developed by Equinor and Shell respectively, will change the dynamics of offshore energy sector. Read More
A nascent battery-materials start up has chosen Middlesbrough, Teeside, to build its new lithium refinery in a post-Brexit vote of confidence for the UK. The site will be the country first large-scale merchant lithium refinery, providing battery grade materials for electric vehicles, renewable energy and consumer technology supply chains. Green Lithium announced the decision today, pledging more than 1,000 jobs in construction and 250 long-term high-skill jobs for local people once the site is up and running.The company is backed by Trafigura, and has also been supported by the Government with a grant of over £600,000 through the Automotive Transformation Fund. 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 From 7:00 this morning, approximately 15 supporters of Just Stop Oil climbed onto the overhead gantries of the M25 in multiple locations, both clockwise and anti-clockwise causing police to halt traffic. Read More
DNO ASA, the Norwegian oil and gas operator, today announced that the Company’s shares will be traded ex-dividend effective 8 November 2022. A dividend payment of NOK 0.25 per share will be made on or about 16 November 2022 to all shareholders of record as of 9 November 2022. Read More
DP World recently opened its doors to students from the top universities in UAE and India to reimagine global supply chains and create new technology-driven solutions in its first-ever innovation challenge, THE BIG TECH PROJECT.
DP World challenged the university students to design and build prototypes of their proposed trade solutions, under the expert guidance of mentors from DP World’s Global Technology team.
After receiving dozens of entries, four finalists have now been selected, with three from India and one from the UAE. They will be flown on an all-expenses paid trip to Dubai in November to present their solutions to DP World’s THE BIG TECH PROJECT jury.
The grand finale will take place at the end of November where the finalists will compete for DP World’s first-ever Student Innovators title. All finalists will be given guaranteed internships at DP World and Macbook laptops, while the winner and runner up will receive cash prizes as well. Read More
In October, Polestar (Nasdaq: PSNY), delivered its 10,000th car cementing a record sales month despite challenging market conditions. Today’s SMMT sales figures show that the Swedish electric performance car company delivered 1,069 Polestar 2 models in October representing growth of 62% over the same period last year. Polestar 2 has experienced its best month of sales in the UK since launching two years ago and is 62% up year to date. This increase has been helped by the growth in both the retail and fleet sectors as more businesses and private customers make the transition to pure EV.
“Polestar, through its direct to customer business model, is gathering serious momentum in the UK, now being one of the brand’s biggest markets globally. I am delighted that we have reached this milestone so soon after we introduced the Polestar 2 in 2020”, commented Jonathan Goodman, Head of Polestar UK. This year, Polestar opened its largest Space at Battersea Power Station in London and will follow with the opening of its UK Headquarters in December housing the commercial and customer care centre. In 2023, the brand will start Polestar 3 electric SUV deliveries towards the end of the year opening Polestar to the fastest growing segment. Read More
Polestar on 27 October 2022 opened its first retail location, a Polestar Space in Dublin formalising its entry into the market which began with first Polestar 2 deliveries in July. By repurposing retired shipping containers in a clean and minimalistic architectural manner, Polestar continues to debut innovative retail environments that strive to sustainably enhance the car buying experience. The Polestar Space situated in Sandyford creates a new landmark in a busy area of the city. As with all Polestar Spaces, Polestar Dublin continues to buck the traditional automotive retail model by championing a direct-to-consumer, digital-first sales approach.
Visitors to the new Space will be able to interact with non-commissioned Polestar Specialists to gain information about the brand and how to order their own car online if required. Guests can alsotake a test drive of the fully electric performance fastback Polestar 2 from the facility with a one-hour drive route direct from the site. Read More
Renault installed on a 1,500m2 stand, unveiled a world premiere of a reinterpretation of its iconic Renault 4 model with its 4EVER Trophy concept car and presented its first electric Kangoo E-Tech dedicated to families. This edition was also the occasion to conclude the year of celebration of the 50th anniversary of the Renault 5 with a sporty and quirky show car called R5 Turbo 3E .
Renault also exhibited its C-segment reconquest models with the new electric Megane E-Tech and the new hybrid Austral E-Tech presented to the public for the first time. Renault recorded 500 sales in total over the six public days. In this performance, the new Austral E-Tech hybrid is the 1 st vehicle sold and the innovative E-Tech technology (hybrid + electric) represents 86% of order intake. Finally, 1,100 leads showed their interest in the Renault range.
Renault allowed visitors to discover its driver assistance technologies, its hybrid E-Tech transmission and its future avatar Reno thanks to dedicated experiential demonstrators. Similarly, the ”The Originals” store of derivative objects presented a renewed and complete range. Nearly 4,000 buyers concluded their visit to the Renault stand with a souvenir to take home. Read More
Emirates Airline is investing in new Boeing freighters to boost its air cargo fleet. The airline confirmed on Tuesday a firm order for five new Boeing 777-200 LR freighter aircraft in a deal worth $1.7 billion at list prices. The deal takes the carrier’s total order book to 200 wide-body aircraft. Two of the units are scheduled for delivery in 2024, while the remaining three aircraft will be delivered in 2025. Read More
Energy costs for households across Europe nearly doubled compared to a year ago, new data has revealed.
Gas bills have soared 111% and electricity ones 69%, according to the latest figures from the Household Energy Price Index. Averaged, these two figures mean an energy bill increase of 90% — or nearly double — compared to October 2021. The research, published on Monday by Energie-Control Austria, the Hungarian Energy and Public Utility Regulatory Authority (MEKH) and VaasaETT, highlights the bruising impact of the Ukraine war on Europe, which has triggered a cost of living crisis and plunged many economies into recession. Read More
WTI for December delivery at $92.61 a barrel in New York.. Brent for January settlement $98.57 a barrel.
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $90.53 | Down |
| Crude Oil (Brent) | USD/bbl | $96.89 | Down |
| Bonny Light | USD/bbl | $100.13 | Up |
| Saharan Blend | USD/bbl | $102.07 | Up |
| Natural Gas | USD/MMBtu | $6.53 | Down |
| OPEC basket 07/11/22 | USD/bbl | $97.32 | Up |
According to FactSet Earnings Insights, the Energy sector is reporting the highest earnings growth of any market sector at 134%. All five sub-industries in the Energy sector are reporting year-over-year earnings growth for the third-quarter, with Oil & Gas Refining & Marketing (269%), Integrated Oil & Gas (140%), Oil & Gas Exploration & Production (105%), and Oil & Gas Equipment & Services (91%) reporting the highest earnings growth. But the clean energy sector is proving to be no laggard, either. Sweeping new federal legislation has pumped new energy into the renewable energy and the solar sector in particular. Read More
Beijing has also continued to burn increasingly massive quantities of coal in order to keep the lights on at home. From some angles, China has already won the clean energy race.In the west, the kind of rapid decarbonization called for by the Paris Agreement and the Intergovernmental Panel on Climate Change has been all but impossible to achieve, due to the massive inertia built into the thoroughly carbon-based economy and the incredible strength of fossil fuel lobbies and their political allies. China, however, has none of these roadblocks due to its authoritarian power structure. This has allowed Beijing to progress leaps and bounds beyond the West in terms of renewable energy technology, know-how and infrastructure. Read More
Shell closes UK hydrogen filling stations due to lack of demand with fewer than 500 models on the road. The oil giant said the technology had ‘reached its end of life’ and it will now be concentrating on creating hydrogen refuellling sites for larger vehicles rather than passenger cars.
Just two hydrogen fuel cell cars have been sold to Britons – two generations of the Toyota Mirai and the Hyundai Nexo – but fewer than 500 have been bought in total, with most of these registered to businesses. Shell and its hydrogen partner in the UK, Motive, confirmed last month that its hydrogen filling stations in Cobham, Gatwick and Beaconsfield had been closed. Read More
Motive Fuels announces appointment of Jean-Marc Gales as its new Chief Executive Officer effective 30th January 2023.
Jean-Marc has spent 30 years in the automotive industry and brings a wealth of technical, design, engineering, commercial and sales experience as a very senior executive, most recently serving as Chairman of Williams Advanced Engineering before its sale to Fortescue. In a distinguished career, Jean-Marc led the successful turnaround of Lotus as CEO. He was a former CEO of Peugeot and Citroen, where he delivered a new product portfolio, and CEO of CLEPA, the European Association of Automotive Suppliers. Read More
On the 14th September 2022 the European Parliament voted to amend the Renewable Energy Directive altering the rules for producing renewable fuels of non-biological origin (RFNBOs) including green hydrogen. Hydrogen is considered to be green if the power source used is renewable energy either through a direct link to a renewable energy asset or through a renewable power purchase agreement (PPA).
To speed up the delivery of low carbon hydrogen into the energy mix in the EU, the Additionality Principle has now been scrapped meaning that existing renewable energy assets can be used to produce green hydrogen. In addition, the requirement for localised energy generation has not been imposed and temporal correlation has been extended to a quarterly period whereas, in the UK, renewable energy supplies must be correlated every 30 minutes.
30-minute correlation in the UK means that up to 5 separate power purchase agreements (PPAs) would be needed to achieve full renewable energy correlation. This considerably increases the cost of green hydrogen produced at the point of use and assumes that surplus energy committed to under all 5 PPA’s can be sold back to the grid at cost. Given market balancing dynamics, the incremental cost of Hydrogen resulting from shorter correlation requirements grow exponentially with shorter the correlation windows. For instance, weekly correlation of energy supply compared to 30-minute windows would halve the risk attached to a green hydrogen project and quarterly correlation would remove the correlation risk completely whilst also reducing the outright levelized cost of hydrogen by a considerable amount. Read More
ITM Power (AIM: ITM), the energy storage and clean fuel company, announces that it has concluded a strategic partnership agreement with Vitol Holdings SARL (“Vitol”) for wholly owned subsidiary ITM Motive Limited, trading as Motive, to become a 50/50 joint-venture owned between ITM Power and Vitol.
Vitol is a leader in the energy sector with a presence across the spectrum: from oil through to gas, power, renewables and carbon. Vitol will invest up to £30m in the venture, which will be matched by a similar investment from ITM Power. Motive owns all UK public hydrogen refuelling stations constructed by ITM Power. It was set up as a Group division in 2020 and became a separate legal entity in May 2021. On completion it will operate as a distinct entity with its own board, which will comprise three directors from ITM Power and three from Vitol.
As part of the transaction, Motive has entered into a framework agreement with ITM Power, under which Motive appoints ITM Power as its preferred supplier for up to 240 MW of electrolysis equipment to support Motive with the development and roll-out of new green hydrogen refuelling stations. Motive has also appointed Vitol as its preferred supplier for up to 240 MW of electricity demand, which will provide green power to the network of new refuelling stations. 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 |
A wide range of countries make efforts to track their entire national public energy research, development and demonstration (RD&D) activity on an ongoing basis, also sharing the collected data with the IEA through a standardised template. However, the approaches adopted to collect data vary significantly across countries.
This roadmap describes the variety of country approaches, also identifying the most important common components: the institutional arrangements; the methods for collecting, classifying and validating the data; the data management and technology processes; and, finally, the dissemination. It is intended not only as a guide for countries near the beginning of their journeys towards the collection of energy RD&D, but also for countries with more advanced systems looking to strengthen specific areas.
The roadmap is the product of interviews held with representatives of 20 governments between November 2021 and March 2022, and it is indebted to their generosity in sharing their experiences with tracking national energy RD&D spending. Case studies based on the interviews are used to highlight noteworthy methods, while complete national systems descriptions are included in the annex. It is hoped that this publication will serve as a reference and inspiration for experts in this important area of tracking clean energy transitions and that new experiences can be added in the future. Read More
Maersk Supply Service awarded contract with ExxonMobil Guyana.ExxonMobil Guyana has signed the Subsea Support Vessel (SSV) Maersk Nomad for a minimum 1-year contract, supporting its field development activities offshore Guyana.
Maersk Nomad will be operating with two ROVs onboard, providing general and subsea support scopes for ExxonMobil’s six ultra-deepwater drillships currently operating offshore Guyana in the Stabroek Block. All are expected to continue operating for the foreseeable future. Read More
Diamondback Energy, Inc. announced financial and operating results for the third quarter ended September 30, 2022.
THIRD QUARTER 2022 HIGHLIGHTS
Average production of 224.3 MBO/d (390.6 MBOE/d)
Cash flow from operating activities of $1.93 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $1.65 billion
Cash capital expenditures of $491 million
Free Cash Flow (as defined and reconciled below) of $1.16 billion
Declared Q3 2022 base cash dividend of $0.75 per share payable on November 25, 2022; implies a 1.9% annualized yield based on November 4, 2022 closing share price of $161.37
Declared a variable cash dividend of $1.51 per share payable on November 25, 2022; total base-plus-variable dividend of $2.26 per share implies a 5.6% annualized yield based on November 4, 2022 closing share price of $161.37
Repurchased 3,922,418 shares of common stock in Q3 2022 for $472 million (at a weighted average price of $120.50/share)
Total Q3 2022 return of capital of $874 million from stock repurchases and the declared base-plus-variable dividend; represents ~75% of Q3 2022 Free Cash Flow (as defined and reconciled below)
As previously announced, completed Rattler Midstream LP (“Rattler”) buy-in transaction on August 24, 2022 Read More
UK is expected to announce a major LNG supply agreement with the United States as Britain aims to boost its gas supply to avoid blackouts this winter, The Telegraph reports, citing UK government sources. UK Prime Minister Rishi Sunak is set to announce the agreement with the U.S. after the COP27 climate summit in Egypt, which ends on November 18. Read More
Crude oil and copper bought; gold sold ahead of FOMC
Summary: Our weekly Commitment of Traders update highlights future positions and changes made by hedge funds and other speculators across commodities and forex during the week to Tuesday, November 1, the day before Fed Chair Powell sent shivers across markets. Ahead of the meeting speculators cut bullish dollar bets to a 15-month low, in commodities buying was concentrated in crude oil, natural gas, copper and soybeans with gold, sugar and coffee seeing continued selling.
This summary highlights futures positions and changes made by hedge funds across commodities and forex during the week to Tuesday, November 1. The day before the FOMC delivered its fourth consecutive 75 basis rate hike in this cycle while pouring cold water on the markets hope for a slowdown after Fed Chair Powell said there is still some way to go and that incoming data means will help determine the “ultimate level” that the Fed funds reaches. In the reporting week prior to the meeting technology stocks had sold of on disappointing earnings while the dollar and US Treasury yields traded softer. The commodity sector was mixed with gains in industrial metals and grains being partly offset by softness elsewhere.
Commodities
The Bloomberg Commodity traded higher on the week with a small 0.6% gain reflecting a mixed market where gains in industrial metals and especially the grains sector was being offset by losses in softs and livestock. The energy sector traded lower with losses in natural gas and gas oil disguising an otherwise strong week for crude oil.
Speculators where net buyers of commodities with length being added to 13 out of the 24 commodity futures tracked in this, led by and concentrated in crude oil, natural gas , copper and soybeans. Selling was concentrated across the softs sector where all four contracts continued to be sold. Read More
Aker Solutions has been awarded a frame agreement from Petrobras and Partners (Consortiums) to provide subsea production systems (SPS) and subsea lifecycle services (SLS) for Petrobras-operated oil and gas fields offshore Brazil.The frame agreement has a fixed period of five years, from the fourth quarter of 2022 to the fourth quarter of 2027. The framework agreement will be managed from Aker Solutions’ locations in Brazil.
The scope of the agreement covers the delivery of complete subsea production systems, including equipment such as subsea trees, the company’s latest generation of subsea controls called “Vectus”, subsea distribution units and spare parts, for Petrobras-operated fields offshore Brazil. Over the duration of the frame agreement, it is estimated that the number of subsea trees to be called off could be up to 33 trees. This estimate does not represent a minimum or maximum amount. Read More
Petrobras informs that it has started the opportunity disclosure stage (teaser), regarding the sale of its entire shareholding, corresponding to 50% of the voting capital and 34.54% of the total capital, in the company METANOR S/A – Methanol do Nordeste ( Metanor), headquartered in Camaçari, in the state of Bahia.
The teaser, which contains the key information about the opportunity, as well as the eligibility criteria for the selection of potential participants, is available on Petrobras’ Investor Relations website: https://www.investidorpetrobras.com.br/en/results- and-notices/teasers.
The main subsequent stages of the project will be informed to the market in due course.
This disclosure is in accordance with Petrobras’ internal rules and with the special regime for investment of assets by federal mixed economy companies, provided for in Decree 9,188/2017. This transaction is aligned with the portfolio management strategy and the improvement of the company’s capital allocation, aiming at the maximization of value and greater return to society. Read More
The National Agency for Petroleum, Gas and Biofuels (ANPG), ExxonMobil Angola and the Angola Block 15 partners announced a new discovery at the Bavuca South-1 exploration well.The well encountered 30 meters (98 feet) of high-quality, hydrocarbon-bearing sandstone. It is located approximately 365 kilometers northwest off the coast of Luanda and was drilled in 1,100 meters (3,608 feet) of water by the Valaris DS-9 rig.The Bavuca South-1 well is part of the Angola Block 15 redevelopment project. As the Block’s operator, ExxonMobil is leading the installation of new technology and a multi-year drilling program aimed at producing approximately 40,000 barrels of oil per day to help offset natural production declines.
There have been 17 previous discoveries on Block 15: Hungo, Kissanje, Marimba and Dikanza in 1998; Chocalho and Xikomba in 1999; Mondo, Saxi and Batuque in 2000; Mbulumbumba, Vicango and Mavacola in 2001; Reco Reco in 2002; and Clochas, Kakocha, Tchihumba and Bavuca in 2003. Read More
------------------------------------------------------------------------------------------------ OilandGasPress Energy Newsbites and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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