Energy News to 13 Aug 2022., U.S. Rig Count is up 262 rigs from last year’s count of 501
WTI for September delivery closed +2.6% to $94.34 a barrel in New York
Brent for October settlement closed +2.3% to $99.60
OPEC re[ortedly cut forecasts for the amount of crude it will need to pump in the third quarter by 1.24 million barrels a day to 28.27 million a day, according to its latest monthly report.
DNO ASA, the Norwegian oil and gas operator, announced that the Company’s shares will be traded ex-dividend effective 15 August 2022.
A dividend payment of NOK 0.25 per share will be made on or about 23 August 2022 to all shareholders of record as of 16 August 2022. Read More
Acorn International has been selected to perform an Environmental Impact Assessment (EIA) and lead the public consultation program for ExxonMobil’s fifth offshore development project in Guyana. The project in question is the Uaru Project, operated by Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of ExxonMobil.Production is planned to begin at the end of 2026-2027. Read More–>
Cargo Sous Terrain (CST), or ‘Underground Cargo,’ will begin with a 46-mile (70 kilometer) stretch between Zurich and a major logistics hub in Härkingen/Niederbipp. It could grow to as many as 310 miles of tunnels (500 km) connecting all the Swiss cantons.
Run on renewable energy, the project is estimated to be able to take 40% of all freight-bearing traffic off the roadways in a sustainable way that doesn’t involve clearing any land for additional roads. The electric pods would receive ongoing electric charges as they move along the induction rails. A similar set of tracks would run on the tunnel ceilings for transporting baskets of smaller parcels. The tunnels are designed to be around 20 feet in diameter, and the pods will be big enough for a pallet or two, with refrigerated ones to carry temperature-sensitive goods. At the terminals, large elevators will pull the pods and podlets out of the gloom and up into fulfilment centers. Dynamic tracks will prevent the elevator stations from jamming the railways of the system. More
ANDRITZ has successfully received the Final Acceptance Certificate for a biomass handling plant at Eldorado’s Onça Pintada site in Três Lagoas, Mato Grosso do Sul.
This plant is part of the first thermoelectric power plant in Brazil to consume eucalyptus stumps and roots.
The plant will be able to generate 50 megawatts of electricity from an innovative source – eucalyptus stumps and roots, the parts of the trees not used in the pulp manufacturing process. This expands the capacity to generate energy from waste material originating from reforestation crops that are maintained by the company itself in the states of Mato Grosso do Sul and São Paulo.
The daily processing capacity is 1,500 tons of material that formerly went to waste in the forest – enough to generate the electricity needed to light up a city of 700,000 inhabitants in a fully sustainable way, and this power will also be fed to the Brazilian national grid. Read More
Energy projects must account for climate change
Responding to these needs will require tens of billion dollars over the next decades. At the same time, climate change presents major risks to the power system, particularly for aging power grids. A warming climate will affect generation capacity and efficiency of critical system equipment, including generation yield and batteries, and increase the need for more regular maintenance. Strong winds could directly threaten transmission and distribution lines, wind and solar farms, and rooftop solar PV installations; and droughts could present major issues for cooling thermal power plants and reducing hydropower generation. More frequent extreme weather events and coastal flooding could also destroy critical power infrastructure.
What does this mean for World Bank Group-financed projects to increase energy access in Africa? Read More–>
The World Bank Group announced $4.5 billion in additional financing mobilized for Ukraine under the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) Project, which aims to help the Government of Ukraine meet urgent needs created by the ongoing war. The financing package is comprised of a $4.5 billion grant provided by the United States.
The additional financing will contribute to sustaining the government’s administrative and service delivery capacity to exercise core functions at the national and regional levels. Specifically, the project will help the Government of Ukraine to cover social payments, healthcare services, and pensions, which are essential for the well-being of the country’s citizens in mitigating the social and economic impacts of the war. Read More
Legal claim concerning the allocation of additional electricity volumes at a regulated price for 2022
Following the French government’s announcement on January 13, 2022 of an additional allocation of 20 TWh of electricity to be sold at a regulated price (ARENH volumes) for 2022, EDF had announced that it was considering any measure to protect its interests.[1] In this context, the Chairman and CEO (Président-Directeur Général) of EDF had indicated at its annual general meeting that he had submitted a preliminary administrative recourse to the French State to request the withdrawal of the Decree[2] and the Orders of March 2022 relating to this allocation.[3]
Following an in-depth legal analysis, and in light of the losses incurred as a result of the Decree and Orders dated March 11, 12 and 25, 2022, EDF today filed a legal claim with the Conseil d’Etat (the French administrative supreme court), as well as a claim for indemnification, for an amount estimated to date at 8.34 billion euros, with the French State. Read More
British customers of energy company EDF are paying more than twice as much as their French counterparts.
Britons with the French energy giant have had their bills capped at £1,971 by regulator Ofgem.
Yet French customers on regulated tariffs are facing costs of just €950 (£804), the Daily Telegraph reported. Read More
Nigeria’s oil production remained stable in the last three months, albeit low, going by its rig count and production volume, as reported by the latest data from the Organisation of the Petroleum Exporting Countries (OPEC) yesterday. According to OPEC, Nigeria’s production, based on secondary sources, went up marginally to 1.18 million barrels a day (mbpd) in July, from 1.17mbpd in June, just as its rig count remained unchanged at 11 for the two months.
Nigeria’s oil production crashed by about 14.94 million barrels in the second quarter of this year, an indication that the country’s oil earnings plunged by about N703.76bn, being the worth of the crude that was lost during the review period. Read More
Electric pickup truck maker, Rivian (RIVN), released its highly anticipated Q2 earnings, confirming a $1.7 billion loss as the EV maker races the competition towards profitability.
A challenging business environment in Q2 is forcing Rivian to cut its financial earnings outlook for the year. The EV maker says it expects a wider loss of $5.4 billion in 2022, compared to the $4.75 billion guidance in the first quarter.
Higher material costs and ongoing supply chain issues are major headwinds in the EV industry right now. For Rivian, or really any EV startup, the goal is to achieve positive gross margins.
Rivian generated a negative gross profit in the second quarter of $704 million. As the company scales production, a negative gross profit is to be expected. With this in mind, Rivian expects to continue running at a loss with rising labor and overhead costs Read More
Volcon Inc., the first all-electric, off-road powersports company, announced today that it will power all of its off-road utility terrain vehicles (“UTV”) with General Motors’ (“GM”) proven and tested electric propulsion systems, including the Company’s flagship UTV, the Volcon Stag, which was revealed to the public on July 1, 2022. Future models, including future versions of the Stag, as well as the Company’s planned “Project X” vehicle, will be designed and developed to utilize GM’s electric propulsion systems. Volcon will be the first, and currently only off-road powersports company to offer their full line of vehicles with GM’s electric propulsion.
In pursuit of a world with zero crashes, zero emissions and zero congestion, GM aspires to eliminate tailpipe emissions from its light-duty vehicles by 2035 on the way to carbon neutrality in its global products and operations by 2040. Volcon is dedicated to improving off-road vehicle performance and sustainability and this agreement will help bring the fun and strong performance of EVs to more people, faster. Read More
The U.S. holds major significance in battery production after China, which makes it one of the key lithium-consuming countries in the world. The country has huge reserves of this important metal. According to the USGS, lithium resources from brines and minerals accounted for 7.9 million tons in the U.S., in 2020. However, the country mines only about 1.0% of the total demand in the world. In 2020, the production took place at only one location in the U.S., which is a brine operation in Nevada. However, the country is expected to boost its mining capabilities in the industry over the coming years.
The market players in the U.S. are focusing on getting a hold on the battery supply chain owing to the increasing production of EVs in the country and as transportation of batteries is dangerous. In 2018, the Interior Department listed lithium as a critical mineral, which paced up the mine permitting process. In January 2021, the Bureau of Land Management approved the Thacker Pass Mine proposed by Lithium Nevada Corporation. The mine is believed to serve as the largest source of the commodity supply in the U.S. and is expected to be able to produce about 60 kilotons of battery-grade carbonate by 2026. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $90.40 | Down |
| Crude Oil (Brent) | USD/bbl | $96.39 | Down |
| Bonny Light | USD/bbl | $118.10 | — |
| Saharan Blend | USD/bbl | $117.77 | — |
| Natural Gas | USD/MMBtu | $8.64 | Down |
| OPEC basket 11/08/22 | USD/bbl | $103.2 | Up |
Wallbox (NYSE:WBX), a leading provider of electric vehicle (EV) charging and energy management solutions worldwide, announced its financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Highlights:
Generated record revenues of €39.5 million, an increase of 124% compared to the second quarter of 2021
Achieved gross margins of 41.1%
Sold almost 64,000 chargers, a 95% increase compared to the second quarter of 2021
Announced strategic partnership with Nissan to provide charger and installation services to buyers of its new Ariya EV across the U.S.
Acquired COIL Inc., a leading EV charging installer serving the U.S. market, enabling in-house installation and maintenance solutions for commercial, public and residential charging applications
Acquired ARES Electronics, an innovative provider of printed circuit boards, expanding Wallbox’s design and manufacturing capabilities while increasing innovation cycle time and improving its supply chain resilience
Executive Commentary
Enric Asuncion, CEO of Wallbox, said, “It’s been a very busy quarter for Wallbox. The team performed very well and once again, exceeded expectations. Revenue grew by 124% on a year-over-year basis, and we’re really pleased with our gross margin of 41.1%. We’ve forged amazing new partnerships, aggressively ramped production of our Supernova DC fast chargers, and acquired two leading companies that are expected to expand our offering, improve our capabilities, and strengthen our competitive position in a fast growing market. While geo-political uncertainty and inflation pose challenges to most businesses, we’re uniquely positioned in a very attractive market that is benefiting from strong secular tailwinds.” Read More
U.S. Rig Count is down 1 from last week to 763 with oil rigs up 3 to 601, gas rigs down 1 to 160 and miscellaneous rigs down 3 to 2.
Canada Rig Count is down 2 from last week to 201, with oil rigs down 3 to 137, gas rigs up 1 to 64.
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 12 August 2022 | 763 | -1 |
| Canada | 12 August 2022 | 201 | -2 |
| International | July 2022 | 833 | +9 |
Nel ASA has resolved, in accordance with the authorization granted by the extraordinary general meeting on 2 August 2022, to issue 4,452,600 new shares to fulfil the Company’s obligations in the groupwide share option program comprising all employees in Nel fulfilling certain criteria, specified in the Company’s annual report (note 2.5), thereby increasing the Company’s share capital by NOK 890,520. In total 136 employees in the group exercised 4,452,600 options at the strike price of NOK 7.8. The options were granted in 2019.
As stated in the general terms and conditions of the share option plan, as well as in the participants’ award agreement, the maximum gain is NOK 5.0 per share option, reached at share price of NOK 12.8. If the cap is reached, a reduced number of shares will be transferred to the participants, and the remainder of shares issued will be added to the company’s holding of treasury shares. Final information related to the number of shares transferred to share option holders and the number of shares added to the company’s holding of treasury shares will be disclosed following the finalization of the stock option exercise process.
- Options exercised by primary insiders 12 August 2022:
- Anders Søreng, Chief Technology Officer, has exercised 184,800 options at the
strike price of NOK 7.8
- Hans Hide, Chief Project Officer Electrolyser, has exercised 180,000 options at the strike price of NOK 7.8
- Stein Ove Erdal, SVP Legal and General Counsel, has exercised 180,000 options at the strike price of NOK 7.8
- Transfer of rights and sale of shares:
On 12 August 2022, the primary insiders mentioned below transferred their rights to receive shares resulting from the exercise of options to a third party. The final gain for the primary insiders is equal to the cap of NOK 5.00 per share option exercised.
- Anders Søreng
- Hans Hide
- Stein Ove Erdal
The final sales price for the transferred rights will be reported to the stock exchange when known.
- New holding:
- After exercising options, Anders Søreng holds 465,000 unexercised options with strike prices ranging from 15.125 to 21.72 NOK. As of today, the primary insider holds 200,000 shares in the Company.
- After exercising options, Hans Hide holds 476,000 unexercised options with strike prices ranging from 15.125 to 21.72 NOK. As of today, the primary insider holds 20,000 shares in the Company.
- After exercising options, Stein Ove Erdal holds 510,000 unexercised options with strike prices ranging from 15.125 to 21.72 NOK. As of today, the primary insider holds 0 shares in the Company. Read More
The latest IEA’s Monthly Electricity Statistics report including May 2022 data shows that for Total OECD:
In total OECD, total net electricity production was 864.1 TWh in May 2022, corresponding to a 3.6% increase compared to May 2021. Out of this production, 48.3% (417.4 TWh) originated from fossil fuels, 36.2% (312.8 TWh) from renewable sources and 15.2% (131.6 TWh) from nuclear power.
Electricity production from nuclear power decreased by 8.6% y-o-y, as many countries had nuclear plants undergoing maintenance in May 2022. Production from both fossil fuels (+7.2% y-o-y) and renewables (+5.4% y-o-y) increased to make up for the decrease in nuclear.
The increase of electricity production from fossil sources was driven by an increase of electricity production from natural gas (11.0% y-o-y), corresponding to 28.7% of total net electricity production.
Solar (+21.5% y-o-y) and wind (+9.3% y-o-y) power drove the increase of electricity production from renewable sources. While solar power has grown in all OECD regions, electricity from wind dropped by 5.4% (y-o-y) in OECD Europe as low wind speeds affected several countries.
Highlight of the month:
In Japan , electricity production from solar power was 9.9 TWh in May 2022, up by 26.3% or 2.1 TWh compared to the same month last year, driving the overall increase observed in the region. This set a new record high of 13.9% solar power share in the country’s electricity mix. Conversely, nuclear electricity generation continued to decrease for the fourth month in a row, settling at 2.7 TWh (-45.6% y-o-y), as a few reactors still undergo maintenance operations. Read More
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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