Energy News to 08 June 2022. OPEC daily basket price stood at $120.16/bl, 07 June 2022
The Worldwide Rig Count for May was 1,628, up 25 from the 1,603 counted in April 2022,and up 366 from the 1,262 counted in May 2021.
Car manufacturers stand to increase their market value and profit margins by switching to electric vehicles faster than they currently plan, according to a financial analysis of six car companies. It finds the automakers would add €800 billion to their stock value if they transition faster [1] this decade instead of hanging on to their combustion engine business model. The results run counter to the industry narrative that Europe’s drive to sell only zero-emissions cars in 2035 would hit profitability and cost jobs.
Manufacturers face the prospect of dwindling profits on combustion engines in the late 2020s as competition from cheaper battery electric vehicles and tighter regulations hit sales and reduce their economies of scale. To model their cash flow in the future, research house Profundo looked at the six carmakers’ financial figures and separated the EV and combustion engine businesses of each into two distinct companies. The analysis finds:
Operating profit margins for EV companies are expected to surpass combustion engine-makers’ in 3-5 years.
Towards the end of the 2020s, the profit margins of engine-makers are set to decrease and even become negative on balance sheets. Read More
Iraq’s Ministry of Oil has announced preliminary oil exports for May of 102,303,020 barrels, giving an average for the month of 3.300 million barrels per day (bpd), slightly down from the 3.380 million bpd exported in April.
The exports from the oilfields in central and southern Iraq amounted to approximately 98,946,914 barrels, while exports from the Kirkuk fields through the port of Ceyhan amounted to 3,002,133 barrels. Read More–>
CNPC-participated Phase I of Mero oilfield (Libra project) in Brazil put into operation
Recently, the first production unit Guanabara FPSO (offshore floating production and storage vessel) of Mero oilfield of the Libra project participated by CNPC was successfully put into operation. Guanabara FPSO is the first large-scale production platform of Mero oilfield after the pilot production unit Pioneer FPSO was brought on stream. With a daily processing capacity of 180,000 barrels of crude oil and 12 million cubic meters of natural gas, Guanabara enjoys the largest production capacity in Brazil by far. The FPSO has a natural gas reinjection system, which can effectively reduce greenhouse gas emissions and effectively improve recovery. Located in Santos basin, Brazil, the Libra Mero oilfield is a world-class deep-water oilfield with a water depth of 1800-2200 meters and is 164 kilometers away from the coastline. The oilfield is comprised of four production units. After the first production unit was put into operation, the other three production units with the same capacity are being built in China’s Tianjin, Yantai and Shanghai. Read More
To commemorate World Environment Day on June 5, Cairn Oil & Gas, India’s largest private oil and gas exploration and production company, has announced that its Mangala pipeline will now be converted to solar. The Mangala pipeline is the world’s longest continuously heated and insulated pipeline that runs from oil fields of Rajasthan to the refineries in Gujarat – traversing 705 km.
Discussing the company’s initiative to adopt solar power for its celebrated pipeline, Prachur Sah, Deputy CEO Cairn Oil & Gas, said, “The Mangala pipeline has been a great asset for Cairn Oil & Gas. Its unique technology has allowed the transportation of waxy crude from our Rajasthan fields to refineries in Gujarat. Mangala pipeline has been a testimony to our industry leading practices and now, its conversion to solar power is pioneering yet another first for the oil and gas industry. We look forward to several more years of successful production from Barmer and the Mangala pipeline will the backbone of sustaining our ambitions.”
At COP 26 last year, Prime Minister Narendra Modi announced that India will achieve net-zero emissions by 2070. In line with the country’s ambitious goals, Cairn Oil & Gas is today pioneering ESG leadership in the sector and has committed to achieve net-zero carbon by 2050. For this, the company has created a robust ESG roadmap with a slew of diverse initiatives – the first in the country’s oil and gas sector to take this step. In fact, Cairn decision to convert its much-celebrated Mangala pipeline into a fully solar-operated pipeline flows from this ESG vision. Read More
Cairn Oil & Gas’s Badalta Barmer campaign has emerged victorious in the PRCA Asia Pacific Awards 2022 and the 4th ET Kaleido Awards 2022. While the campaign won the ‘Strategic Communications Award’ at the PRCA APAC awards, it won the ‘Silver Award’ under the ‘Energy’ category at the ET Kaleido Awards. The campaign, centered around the company’s prime area of operation in Barmer, Rajasthan, aims to spread the message of the good work that Cairn has been conducting at the grassroots level for encompassing, holistic development. This campaign has, in turn, aided the company further its business vision of doubling crude production for India’s energy security.
Both the awards are regarded as among the most prestigious in the communications fraternity. The PRCA Awards are held annually across the globe and are among the most coveted awards in the field of public relations. The Kaleido Awards, organized annually by ET BrandEquity, aims to recognize inspiring work done in public relations and corporate communications. Read More
Polestar 3 reimagines the SUV through premium electric performance and innovative, sustainable technology. Changing the automotive landscape while keeping the environment a priority.
A new perspective: Premium electric performance has found a new form. One that brings new context to both the SUV and the EV. One that incorporates NVIDIA computing power, a fully electric drivetrain, and sustainable material innovations. One that shows what comes after 1 and 2 is indeed 3, yet so much more. Polestar 3. The SUV for the electric age. Read More
The U.S. Department of Energy (DOE) announced a new $10 million funding opportunity, Energyshed: Exploring Place‐Based Generation, to develop tools and processes to assess the impacts of electricity generated and used within a discrete geographic area.
These tools will empower stakeholders to make better decisions about using locally generated energy and can enable more reliable, resilient, efficient, and affordable grids that address long-standing inequities in the distribution of cost and benefits across energy systems. Projects will incorporate local data relevant to the environmental, economic, and equity attributes of the power system, and will develop tools that are easy to use for a wide array of non-technical audiences.
Empowering local stakeholders with the knowledge to understand and shape their “energyshed”—the area in which their energy is produced and used—will help to advance energy justice, decarbonize the nation’s economy, and create high-quality local jobs.
Successful projects will use economic and grid analyses and communicate them with dashboards, applications, and other novel methods.
DOE expects to make two to five awards under this funding opportunity, each ranging from $2 to $5 million. DOE seeks a diverse set of applicants, including universities, research and development centers, individuals, and civil society organizations. More
New regulations, which will be introduced on June 15, 2022, states that electric vehicle charge points must be installed at new residential homes and buildings. Any new building developments with associated parking must have access to electric car charge points, according to the Department for Transport.
Any buildings undergoing large scale renovations to install EV charge points will also need EV charge points, provided they have more than 10 parking spaces.
In November 2021, Prime Minister Boris Johnson praised the move, calling it a “pivotal moment”, with an estimated 145,000 EV chargers being installed as a result of the regulations. This law change is part of the Government’s wider plan to cut carbon emissions, with £1.3billion of investment being committed to electric vehicle charging infrastructure rollout. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $119.91 | Up |
| Crude Oil (Brent) | USD/bbl | $120.87 | Up |
| Bonny Light | USD/bbl | $126.38 | Up |
| Saharan Blend | USD/bbl | $125.62 | Up |
| Natural Gas | USD/MMBtu | $9.34 | Up |
| OPEC basket 07/06/22 | USD/bbl | $120.16 | Up |
U.S. Rig Count is unchanged from last week at 727 with oil rigs unchanged at 574, gas rigs unchanged at 151 and miscellaneous rigs unchanged at 2. Canada Rig Count is up 14 from last week to 117, with oil rigs up 17 to 72, gas rigs down 3 to 45.International Rig Count is up 11 rigs from last month to 817 with land rigs up 9 to 624, offshore rigs up 2 to 193.
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 03 June 2022 | 727 | — |
| Canada | 03 June 2022 | 117 | +14 |
| International | May 2022 | 817 | +11 |
