Latest Energy News As Reported to 21 March, 2023,
London, 21 March, 2023, (Oilandgaspress): Brent crude futures for May reportedly fell $2.07 to $70.90/bl. US West Texas Intermediate crude contract for April was down $1.88 to $64.86/bl before its expiry on Tuesday. Goldman Sachs has nudged down its Brent crude futures forecasts following banking and recession fears.
The New York-listed investment bank is now expecting Brent to average $95 in the next 12 months and $94 in the second half of 2024, it said in a note dated March 18.
Oil prices fell despite demand boom in China, given banking stress, recession fears and an exodus of investor flows, the bank’s analysts said.
The bank has also lowered demand projections for Europe and North America in 2023, while raising them for China, as well as making a 600,000 barrel per day cut for 2024 estimates, while 2023 demand forecasts remained the same.
According to Goldman Sachs Research:
Hydrogen can be used as an energy fuel, energy vector and feedstock.
Hydrogen can be used to store energy over the long term, propel heavy vehicles, and heat furnaces for the manufacture of steel among other heavy industrial uses.
Hydrogen can get us closer to net zero.
“Green” hydrogen, which is produced by using renewable energy sources to electrolyze water and split it into hydrogen and oxygen, is one of the most promising alternatives to “gray” hydrogen, which relies on natural gas supplies – and produces carbon dioxide that then needs to be released or stored. According to a new report from Goldman Sachs Research, government incentives are powering major strides in green hydrogen investments, particularly in the United States.
The size of clean hydrogen projects is measured by the gigawatts (GW) used to power the electrolysis used in production. By this measure, the market is still in its infancy: At the end of 2020, only about 0.3 GW of capacity was installed.
However, based on projects that have been announced, GS Research estimates as much as 137 GW will be installed by the end of 2030, about 1.7 times more than last year’s estimate of 80 GW. Given the long lead times in creating clean hydrogen production facilities, GS expects even more projects will be announced in the next few years. “Many of the projects for the second half of this decade still have not yet been announced, and are therefore not captured here, implying further upside,” writes Goldman Sachs equity research analyst Michele Della Vigna.
The clean hydrogen industry is scaling up not just in the number of projects planned, but also in the average size of them. The research team estimates that the average project will increase more than 600 times from the current dimensions. Read More
New appointment strengthens safety seal manufacturer Roxtec’s marine and offshore operations
Leading cable and pipe seal manufacturer Roxtec has appointed Riyadh Choudhury to the role of Inside Technical Sales Engineer as it looks to further develop its presence in the marine and offshore sectors.
Riyadh’s role will see him supporting the company’s sales teams in those specialist areas to help them deliver projects and seek out future business opportunities.
He brings with him a wealth of experience in procurement and sales roles, working for businesses across a range of engineering industries during his career. His appointment comes as Roxtec, which has its UK headquarters in Bury in Greater Manchester, is looking to grow its marine industries and offshore oil and gas order books.
The UK marine sector was given a major boost last year when the government announced plans to commit £4bn to secure the future of the country’s regional shipbuilding industry. Roxtec cable and pipe seals are used to protect people, ships, vessels and other assets from multiple hazards including fire, flooding, the risk of explosion and electromagnetic disturbances.
Key benefits include durability, reliability and flexibility. Its innovative sealing systems have the capability to withstand harsh environments.
In the marine sector, Roxtec’s transits are used to seal cables and pipes aboard a large variety of ships including naval vessels, cruise liners and ferries, superyachts, offshore support vessels, carriers and cargo ships. They are also widely used in the offshore oil and gas sector.
Riyadh said: “What attracted me to Roxtec was the innovation that exists within the business and the range of creative solutions that it offers to clients.
“Roxtec has built its reputation on its engineering excellence and in the support that it delivers to its customers, and it is great to be taking all that forward.”
He added: “There is plenty of scope for further growth in the marine and offshore industries. The government’s investment announcement highlights just how important the marine sector is to the UK and is a real shot in the arm for shipbuilders and the supply chain. Shipbuilders and ship owners all over the world specify Roxtec transits to seal around cables, metal pipes and plastic pipes. Its sealing solutions were used by leading South Korean shipbuilder Hyundai Samho Heavy Industries on the world’s first LNG-powered oil tanker. The Hudong-Zhonghua Shipbuilding Group in China and power system provider ABB also specified Roxtec solutions for the new-build of four LNG carriers.
On the TUI cruise liner Mein Schiff, built at the Meyer Turku shipyard in Finland, thousands of Roxtec transits provide certified protection against fire, gas, water and electromagnetic disturbance. Roxtec has also supplied support construction of the world’s most powerful tidal turbine, the Orbital O2 2MW and to offshore platforms operating in waters including the North Sea. . Read More
Shell announces Executive Committee changes
After 33 years of service with Shell, Harry Brekelmans will step down from his role as Projects & Technology Director, a position he has held for almost nine years, effective 30 June 2023. Robin Mooldijk, currently Executive Vice President (EVP) Chemicals & Products, will be appointed Projects & Technology Director, effective 1 July 2023.
And following more than 33 years of service with Shell, Donny Ching will step down from his role as Legal Director, a position he has held for just over nine years, effective 30 June 2023. Philippa Bounds, currently General Counsel, Trading & Supply, will be appointed Legal Director, effective 1 July 2023.
Shell CEO Wael Sawan said: “Harry and Donny have both had long and distinguished careers in Shell, and I wish them all the best for the future.
“Harry was instrumental in improving project and well delivery in Shell, and in developing Shell’s sustainability and carbon ambitions. He launched the Technology Centre in Bangalore, transformed its equivalent in Amsterdam, and has been a powerful advocate for safety, technology and innovation across the company.
“Donny’s commitment to the highest standards of transparency on ethics and compliance has been outstanding, as has his work on many important legal cases involving Shell. He’s a true champion of our people, of DE&I, and of developing talent across the globe – he has helped to make Shell a truly better place to work.
“I’d like to welcome Robin and Philippa to the Executive Committee. They have important roles to play as we build our new top team to deliver our Powering Progress strategy through providing the energy the world needs, now and in the future, purposefully and profitably.” Read More
Liquid Intelligent Technologies announced that it acquired Cysiv MEA, a technology company that was formerly SecureMisr, headquartered in Cairo. The business specialises in providing enterprise cloud and cyber security services to some of Egypt’s leading companies, particularly in the financial services sector. The acquisition allows the London-based group with operations in Africa, UK, the US and Latin America, to bring some of the best global cloud and cyber security products to the Egyptian market. Liquid is a recognised integrator on behalf of some of the biggest technology companies in the world.
The organisation will rebrand Cysiv MEA to ‘Liquid C2’ to align it with its global cloud and cybersecurity identity. Liquid plans to significantly grow the Egyptian business by tapping into the wealth of local tech talent, making Egypt a key hub for the Middle East and North Africa (MENA) region. Read More
South Africa is facing an energy crisis on a very large scale. It’s not for nothing that President Cyril Ramaphosa took the unprecedented step of declaring a “national disaster” in February. The country’s fuel and energy sector is truly in trouble, with power shortages and blackouts worse than ever before.
There are some hopes for relief, including efforts to find new sources of fuel for thermal power plants (TPPs). On the one hand, South Africa possesses large offshore natural gas reserves in the Outeniqua basin and may be able to find more in its section of the Orange basin and elsewhere. On the other hand, it shares borders with other two future gas producers – Namibia and Mozambique, both of which have sizeable reserves and smaller populations than South Africa – that may be willing to export some of their bounty under the right conditions.
Nevertheless, these solutions are still some distance away, given that it will take years to bring gas from these large-scale projects to market.Gas will help South Africa find ways to produce the additional electricity it needs to provide all of its citizens with reliable and secure power — both in the longer run as new offshore fields come online and in the shorter term as companies such as Kinetiko and Renergen develop onshore resources. But South Africa could also use gas for other purposes. It could use gas as a substitute for diesel in long-haul trucking — and thereby reduce emissions in the transport sector. It could introduce LNG as a fuel for industrial customers — and thereby reduce emissions in that part of the economy, while also reducing the drain on the national transmission grid. Read More
TechnipFMC Announces First Quarter 2023 Earnings Release and Conference Call
TechnipFMC (NYSE: FTI) will host its first quarter 2023 earnings conference call on Thursday, April 27, 2023, at 1:30 p.m. London time (8:30 a.m. New York time). A press release announcing the results will be issued prior to the call at approximately 11:45 a.m. London time (6:45 a.m. New York time). Read More
COP28 President discusses energy and climate challenges with over 50 countries at IEA
COP28 President-Designate Sultan Al-Jaber visited our headquarters in Paris last week for a special event on the role of the energy sector in accelerating climate action in the lead up to the global UN climate change conference, which is taking place this November in Dubai.
Ambassadors representing over 50 countries from across the globe – accounting for around 80% of global CO2 emissions – as well as leaders from major energy companies were in attendance. The roundtable meeting was an opportunity for Dr Al-Jaber, who is leading the United Arab Emirates’ COP28 Presidency, to outline his priorities for the climate conference. It allowed countries present – a diverse group of advanced, emerging and developing economies spanning Africa, the Americas, Asia-Pacific, Europe and the Middle East – to give their perspectives, pose questions and make suggestions.
In his opening remarks introducing Dr Al-Jaber, our Executive Director Fatih Birol said a successful COP28 is vital for all countries because the Paris Agreement target of limiting global warming to 1.5°C – and therefore the future of the planet – is at risk. He added that COP28 gives the UAE the opportunity to demonstrate leadership on climate action for other oil and gas producers, setting a path that moves them away from over-reliance on hydrocarbons towards a cleaner and more secure future. The IEA will help map out this path with a special report that we will publish ahead of COP28 on the role of oil and gas producers in the transition to net zero emissions.
Dr Al-Jaber, who also had a separate bilateral meeting with Dr Birol during his visit, said the IEA was an important stop on his current international “listening tour”, describing the IEA as “the global headquarters of energy” and highlighting our Agency’s role as a thought leader that helps guide global energy policy and improve knowledge and understanding of energy systems worldwide. After his meetings at the IEA, Dr Al-Jaber also met with President Emmanuel Macron of France and several French ministers, political figures and civil society leaders.
In his remarks during the roundtable, Dr Al-Jaber underlined the scale of the world’s energy and climate challenges and stressed that incremental change will not be enough to overcome them. He said that meeting the world’s fast-growing energy needs while dramatically reducing emissions is one of the most complex challenges that humanity has ever faced. And he called for transformational progress in all the key areas of mitigation, adaptation, climate finance, and loss and damage. Read More
Oil market caught in cross currents, with supply surplus set to swing to deficit this year
The global oil market is caught in the cross currents of supply outstripping demand at the moment – but with the prospect of the market swinging into deficit during the second half of the year when China is expected to drive world oil demand to record levels, according to our latest monthly Oil Market Report. The current lacklustre demand has resulted in global oil stocks building to their highest levels in 18 months. Much of the supply overhang reflects a trend of ample Russian supplies racing to re-route to new destinations in response to the full force of EU embargoes.
Our report notes that building up oil stocks today will help ease tensions later in the year, since global demand is set to surge by 3.2 million barrels a day between the first and fourth quarters, taking average annual growth to 2 million barrels a day.Read the overview of our March Oil Market Report. Read More
KBR has been awarded NASA’s Large Business Prime Contractor of the Year for 2022 at two agency centers: NASA Goddard Space Flight Center (GSFC) and NASA Ames Research Center (ARC). Announced yearly, these accolades are a part of NASA’s Small Business Industry Awards, which honors its contractors’ small business partnerships. KBR earned the Large Business Prime Contractor of the Year awards for its overall contract performance, participation in NASA-related outreach events, sound small business practices and use of small business contractors.
Nominated by its customers, KBR’s dual win is indicative of its operations and procurement teams’ strategic efforts to support diversity and small business growth around the country.
“As we grow, so do our small business partnerships,” said Byron Bright, President of KBR Government Solutions U.S. “This honor recognizes not only KBR’s leadership, but how we support and value our small business partnerships, and collectively work together to ensure the success of NASA missions around the globe.”
This is not the first time NASA’s Office of Small Business Programs has recognized KBR for this achievement. KBR received the agency-level Mentor-Protégé Agreement of the Year Award for three consecutive years from 2018 through 2020, distinguishing KBR as NASA’s best overall mentor during this time. Specifically, KBR was praised for its mentorship of MORI Associates in 2018, as well as for its mentorship of JES Tech, a woman-owned small business, in 2019 and 2020. NASA also honored KBR as its Large Business Prime Contractor of the Year for ARC in 2019 and Johnson Space Center (JSC) in 2020. KBR won the same award in 2018 for JSC and GSFC, which continue to be its most heavily supported centers. KBR has provided mission-critical space support services to civil, military and commercial customers for more than 60 years. It currently operates at 11 NASA centers and facilities and is one of the world’s largest human spaceflight support organizations. Read More
The United Nations chief said it more bluntly, calling for an end to new fossil fuel exploration and for rich countries to quit coal, oil and gas by 2040.
“Humanity is on thin ice — and that ice is melting fast,” United Nations Secretary-General Antonio Guterres said. “Our world needs climate action on all fronts — everything, everywhere, all at once.” Stepping up his pleas for action on fossil fuels, Guterres called for rich countries to accelerate their target for achieving net zero emissions to as early as 2040, and developing nations to aim for 2050 — about a decade earlier than most current targets. He also called for them to stop using coal by 2030 and 2040, respectively, and ensure carbon-free electricity generation in the developed world by 2035, meaning no gas-fired power plants either. Read More
Shell plc has today published its latest scenarios: the Energy Security Scenarios. The two new scenarios explore how the world could evolve following Russia’s invasion of Ukraine. Specifically, they look into the possible energy and climate outcomes that could result from a world that has security as its dominant concern.
Shell Scenarios are not predictions or expectations of what will happen, or what will probably happen. They are not expressions of Shell’s strategy, and they are not Shell’s business plan; they are one of the many inputs used by Shell to stretch thinking whilst making decisions.
The first scenario, called Archipelagos, follows how today’s pressures could play out to the end of the century. National interest remains key and renewables are mainly seen as a way to improve energy security. By 2100, net-zero emissions is within sight, but the world has failed to meet the goal of the Paris Agreement. This scenario is “exploratory”: it seeks to plot a course from where the world stood in 2022.
The second scenario, called Sky 2050, shows just how fast the world must move to meet the goal of the Paris Agreement. Global climate security becomes the primary concern. Nations race to switch to cleaner energy and a competitive landscape emerges for technology, minerals and manufacturing capacity. Competition drives rapid change and the world reaches net-zero emissions in 2050. This scenario is “normative” and extremely challenging: it set goals of net-zero emissions by 2050 and warming restricted to below 1.5°C by 2100, and then worked back to the realities of 2022 to explore how these end points could be reached.
Key points from the Energy Security Scenarios include:
• Fossil fuels lose market share. The energy system is decarbonising, the questions is: how fast?
• There is no realistic path to an instant and steep drop in emissions.
• The average temperature rise is highly likely to breach 1.5°C.
• The future of energy is electricity, although hydrogen and bioenergy have significant roles to play.
• Bringing the temperature rise back down below 1.5°C will require large-scale carbon removal and storage.
Scenarios are informed by data, constructed using models and contain insights from leading experts in the relevant fields. Ultimately, for all readers, scenarios are intended as an aid to making better decisions. They stretch minds, broaden horizons and explore assumptions. Read More
Infinity Power, a joint venture between Egypt’s Infinity and UAE’s Masdar, announced today it has completed the acquisition of the entire shareholding of Lekela Power. The transaction makes Infinity Power the largest renewable energy company on the African continent. Infinity’s key stakeholders include Africa Finance Corporation (AFC) and European Bank for Reconstruction and Development (EBRD). Lekela currently operates 1 gigawatt (GW) of wind power projects in South Africa, Egypt and Senegal, and has a 1.8 GW project pipeline, which are in various stages of development.The transaction was funded through equity investment from shareholders and debt from Absa Corporate and Investment Banking (Absa CIB) and Mauritian Commercial Bank (MCB) Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $68.37 | Up |
| Crude Oil (Brent) | USD/bbl | $74.43 | Up |
| Bonny Light | USD/bbl | $72.65 | Down |
| Saharan Blend | USD/bbl | $72.40 | Down |
| Natural Gas | USD/MMBtu | $2.25 | Down |
| OPEC basket 20/03/23 | USD/bbl | $70.77 | Down |
Baker Hughes Rig Count
U.S. +8 to 754 Canada -16 to 207
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 17 March 2023 | 754 | +8 |
| Canada | 17 March 2023 | 207 | -16 |
| International | February 2023 | 915 | +14 |
The Board of Directors of Dana Gas PJSC today announced it has recommended an incremental dividend payment of 4.5 fils per share for H2 2022. A payout of 4.5 fils per share for the second half of 2022 would take the total dividend payment for 2022 to AED 630 million or 9 fils per share, a 12.5% increase compared to the dividend for 2021. This follows the interim dividend paid in October of 4.5 fils per share. The increased payout reflects higher global energy prices and the Company’s good operational performance for the year. The outlook remains positive given the global energy market dynamics and despite some of the security and macro-economic challenges faced.
For FY 2022, the Company reported net profit of AED 667 million ($182mm) in 2022 as compared to AED 1.16 billion ($317mm) in 2021. Excluding other income and impairments, Dana Gas reported adjusted net profit of AED 718 million ($196mm) as compared to AED 469 million ($128mm) in 2021, an increase of 53%. The strong year-on-year profits were sustained by high energy prices, steady production and prudent cost control. Revenue rose 17% to AED 1.94 billion ($529mm) in 2022 compared to AED 1.66 billion ($452mm) in 2021 due to higher realized prices and production output in the Kurdistan Region of Iraq (KRI). Production in the KRI and Egypt remained uninterrupted throughout the year. Operational costs decreased by 5% to AED 209 million ($57mm) in 2022 compared to AED 220 million ($60mm) in 2021. Read More
Scientists from Swansea University in Wales have created what is described as the world’s first ‘fully printable’ perovskite solar cells using an innovative process.
The team sought to replace the expensive and slow evaporation process for applying gold electrodes and identified the right solvent mix for the carbon electrode ink to dry as a film without dissolving the underlying layer. The devices with carbon electrodes showed a similar photovoltaic performance to those with evaporated gold electrodes, but with the added benefits of outperforming at higher temperatures and having better long-term stability.
The researchers received funding from the European Regional Development Fund and the Engineering and Physical Sciences Research Council for their work. Read More
Traction Uranium Corp. along with UGreenco Energy Corp., announced that it has finished drilling the first hole (“KLS23-001”) in the Phase 1 Diamond Drill Program at their Key Lake South (“KLS”) Project in northern Saskatchewan’s Athabasca Basin, and is currently mobilizing the drill rig to the second diamond drill hole (“KLS23-002”) (see Figure 1) targeting the “radioactive swamp” discovered by the Company in a Fall 2022 exploration program (see news release dated September 27, 2022) (the “Fall 2022 Program”).KLS23-001 is located on the logistically most challenging area furthest from the radioactive swamp and targeted the edges of both the broad gravity low and the “Athabasca Sandstone” mapped from cobble found in the till during the 1970’s (see Figure 2). During the Fall 2022 Program, the Company was unable to get above the swamp to test the radioactive anomaly; however, with the ground fully frozen, the Company is now able to minimize ground impact and mobilize the drill rig to hole KLS23-002 sitting right above the radioactive swamp to test for uranium mineralization potential beneath the anomaly. Read More
Aramco and international contract logistics provider DHL Supply Chain have announced the signing of a shareholders’ agreement for a new Procurement and Logistics Hub in Saudi Arabia, to enhance supply chain efficiency and sustainability. It would be the region’s first such hub catering to customers in the industrial, energy, chemical and petrochemical sectors. The joint venture aims to be operational in 2025 and provide reliable end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical and petrochemical sectors. The joint venture would initially focus on Saudi Arabia, with aspirations to expand across the MENA region.
Aramco’s preeminent energy and industrial supply chain ecosystem and DHL’s world-class logistics expertise are expected to enable the joint venture to add value in meeting customers’ supply chain purchasing, warehouse and inventory management, transportation and reverse logistics needs. The aim is for the joint venture to achieve industry best practices in procurement and supply chain management, as well as the deployment of more sustainable supply chain, transport and warehousing solutions. Read More
OilandGasPress Energy Newsbites and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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