Energy top stories to 05 July 2022. OPEC daily basket price stood at $115.30/bl, 04 July 2022
30 NATO allies signed off on the accession protocols for Sweden and Finland on Tuesday, sending the membership bids of the two nations to the alliance capitals for legislative approvals.
Equinor has initiated a safe shutdown of the Gudrun, Oseberg South and Oseberg East fields after members of the Norwegian Organisation of Managers and Executives (Lederne) trade union went on strike from midnight.
A further extension of the strike has been notified for the Heidrun, Kristin and Aasta Hansteen fields, taking effect from the night before Wednesday 6 July. To Equinor this means that the above-mentioned installations will perform a controlled shutdown of production, including the Tyrihans field, which is tied to the Kristin platform.
Total production from Heidrun, Kristin/Tyrihans and Aasta Hansteen is around 333,000 boe per day, of which 264,000 boe per day is natural gas. Read More
Nearly all of Norway’s electricity is generated from renewables. Hydroelectricity accounts for the highest share of renewables-based electricity generation. However, crude oil and natural gas production will continue to play an important role in Norway’s economy. Norway exports most of the crude oil and natural gas it produces. In 2021, crude oil and natural gas exports accounted for 50% of Norway’s export revenues and more than 20% of the country’s gross domestic product (GDP). Read More–>
India’s windfall tax on oil companies and refiners, introduced last week, could stay for a very long time, as the government plans to withdraw it only when oil prices drop by $40 per barrel from current levels, Indian Revenue Secretary Tarun Bajaj told Reuters on Monday.
India last week introduced a windfall tax on oil producers and refiners who are exporting more due to the high international price of crude oil and refined products. What’s more, fuel exporters will be required to sell at least some of their product domestically. The new taxes will serve as an incentive to keep more product at home and export less—a reality that will further tighten international markets for oil and oil products.
“As exports are becoming highly remunerative, it has been seen that certain refiners are drying out their pumps in the domestic market,” a government-issued statement read.
The windfall tax took effect on July 1 and could be in effect for a very long time, considering that India says it will terminate the windfall tax only when international crude oil prices fall by $40 per barrel from current levels. Read More
An International Monetary Fund (IMF) staff team, led by Carlo Sdralevich, mission chief for Ghana, will visit Accra from July 6 – 13 to begin initial discussions with the Ghanaian authorities about a possible IMF-supported program.
Mr. Sdralevich issued the following statement at the start of the visit:
“On the basis of a request from the Ghanaian authorities, an IMF staff team will in the coming days kick-start discussions on a possible program to support Ghana’s homegrown economic policies. We are at an early stage in the process, given that detailed discussions are yet to take place.”
“The IMF stands ready to assist Ghana to restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth, and address the impact of the war in Ukraine and the lingering pandemic.”
“We are looking forward to our engagement with the authorities in Accra.” Read More
Norwegian offshore oil and gas workers went on strike over pay on Tuesday, the first day of planned industrial action that could cut the country’s gas exports by almost 60% and exacerbate supply shortages in the wake of the Ukraine war, Reuters reports.
By Saturday, daily gas exports would be cut by 1,117,000 barrels of oil equivalent (boe), or 56% of daily gas exports, while 341,000 of barrels of oil would be lost, the Norwegian Oil and Gas (NOG) employer’s lobby said. Read More
Germany is considering amending its energy security law to allow the government to take stakes in struggling energy firms or impose levies on consumers, Reuters reported on Monday, citing three sources.
The government is discussing amendments that could be put for Parliament discussion as early as this week, according to Reuters’ sources.
These amendments would allow the German government to bail out energy firms or to impose a levy on consumers and thus pass on soaring energy costs and ease the burden on energy firms, the sources say.
Since Russia slashed supply to Germany and other major consumers in Europe, gas providers and buyers in Germany have been struggling with surging prices of non-Russian gas, which is severely burdening the companies’ finances.
For example, energy giant Uniper, one of the largest customers of Russia’s Gazprom, said this week it had initiated talks with the German government on possible measures to stabilize its finances amid low Russian gas deliveries and soaring gas prices. Read More
Close Brothers Leasing announced it has provided a development loan for the construction phase of Pacific Green Technologies’ 99.98 MW battery energy storage system (BESS) at Richborough Energy Park in Kent.
Close Brothers Leasing funds large battery energy storage system to be developed in Kent, UK
Pacific Green Technologies Group is a world leading provider of sustainable cleantech solutions aimed at solving climate warming, green energy and resource scarcity challenges.
“We are thrilled to participate in this ground-breaking project finance scheme on one of the UK’s largest battery energy storage systems and we look forward to working with Pacific Green on this project and the rest of their 1.1 GW UK pipeline” said James Sutcliffe, Managing Director of Close Brothers Leasing’s Energy team. More
Loop Energy™ (TSX: LPEN) has signed a multi-year fuel cell supply agreement with Tevva Motors Ltd (Tevva), which includes delivery commitments in excess of US$12 million thru 2023. As a result of the agreement, which extends through to 2024, Tevva becomes the first customer to move into the Full Production Phase of Loop Energy’s Customer Adoption Cycle. Details to join the analyst conference call on July 5 are at the end of release.
Tevva will integrate Loop Energy’s fuel cell systems into its manufacturing process as it scales production of its Hydrogen-Electric Trucks to meet demand in 2023. The two companies’ relationship continues to gain momentum after Loop Energy’s eFlow™ technology won the competitive tender process in 2021, which resulted in Tevva placing initial orders. Read More
Wärtsilä will supply three more of its Compact Reliq reliquefaction plants to Norway based Knutsen OAS Shipping. This brings the total number of orders for the same customer to eight, with two having been ordered in 2020, and a further three in 2021. The systems are being installed on eight new LNG carrier vessels being built for Knutsen OAS at the Hyundai Heavy Industries (HHI) yard in South Korea. The latest order with Wärtsilä was placed in June 2022.
The Compact Reliq solution is based on the well-proven reversed nitrogen Brayton cycle refrigeration technology. The solution is designed to reliquefy the boil-off gas (BOG) from gas carriers and LNG bunker vessels, and for keeping the cargo cool under all operating conditions. It allows a portion of the BOG to be used as fuel for the ship’s engines, with the excess able to be sold as part of the LNG cargo. Read More
EDF Renewables North America and Ameren Missouri, a subsidiary of Ameren Corporation (NYSE: AEE), announced today an agreement by which Ameren will acquire, after construction, the 200 megawatt (MWac) / 270 MWdc Huck Finn Solar Project. The deal is subject to closing conditions, including regulatory approvals.
Developed by EDF Renewables, Huck Finn Solar is expected to create more than 250 jobs at peak construction. Once operational in late 2024, the project is expected to generate more than $14 million in revenue for the local communities in both Audrain and Ralls Counties. This new generation will help Ameren Missouri meet its goal of net-zero carbon emissions by 2045 as well as provide new clean energy options to help customers meet their clean energy goals. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $103.00 | Down |
| Crude Oil (Brent) | USD/bbl | $107.00 | Down |
| Bonny Light | USD/bbl | $118.10/td> | Up |
| Saharan Blend | USD/bbl | $117.77 | — |
| Natural Gas | USD/MMBtu | $5.57 | Down |
| OPEC basket 04/07/22 | USD/bbl | $115.30 | Up |
International Rig Count is up 7 rigs from last month to 824 with land rigs down 3 to 621, offshore rigs up 10 to 203.
U.S. Rig Count is down 3 from last week to 750 with oil rigs up 1 to 595, gas rigs down 4 to 153 and miscellaneous rigs unchanged at 2.
Canada Rig Count is up 12 from last week to 166, with oil rigs up 5 to 109, gas rigs up 7 to 57.
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 01 July 2022 | 750 | -3 |
| Canada | 01 July 2022 | 166 | +12 |
| International | June 2022 | 824 | +7 |
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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