More Energy News As Reported | October 17th, WTI Crude stood at $86.43/bl
OPEC+ members, including Saudi Arabia, the United Arab Emirates, Iraq and Kuwait expressed support for the production cut over the weekend, expressing a joint need to stabilize oil prices amid headwinds from slowing economic growth
An International Monetary Fund (IMF) staff team led by Mariana Colacelli met with the Equatoguinean authorities in Washington, DC, during October 11-15, 2022, to discuss progress on Equatorial Guinea’s economic reform program supported by the extended arrangement under the Extended Fund Facility approved in 2019 and commitments under the 2021 Rapid Financing Instrument. The discussions were also focused on the macroeconomic outlook and policies. Read More
The UK government has today decided to make further changes to the mini-budget, and to reduce unhelpful speculation about what they are, we’ve decided to announce these ahead of the medium-term fiscal plan, which happens in two weeks,” Mr Hunt said.The changes Mr Hunt revealed include:
No cuts to dividend tax rates
Repeal of the easing of IR35 rules for the self-employed introduced in 2017 and 2021
No new VAT-free shopping scheme for overseas visitors to the UK
No freeze on alcohol duty rates
Basic rate of income tax to remain at 20%, not reduce to 19% from April 2023
Energy price guarantee only until April 2023.As Mr Hunt revealed the tax cut reversals, the pound strengthened by more than 1.2% to 1.139 against the US dollar and UK government bonds rallied further, with yields on 30-year gilts easing back by around 10%. Read More
Just Stop Oil supporters have stopped traffic on Victoria Road in Westminster and sprayed soup over the Department for Business, Energy, and Industrial Strategy (BEIS), while issuing an invitation to the Home Secretary for talks. They are demanding that the government halts all new oil and gas licences and consents.
At just after 11.30am, about 12 Just Stop Oil supporters walked onto Victoria Road outside of BEIS, the government department responsible for allowing new fossil fuel extraction, and sat down in the road with banners. A number glued themselves to the tarmac while others locked themselves together. Shortly afterwards, a number of supporters covered the glass fronted building in soup, a reference to the fact that countless families in this country can not afford a tin of soup, and famine is rife across sub-saharan Africa. Read More
In the OECD, total net electricity production was 991.9 TWh in July 2022, up by 2.6% or 25.4 TWh compared to the same month last year.
Electricity production from renewable sources grew by +9.9% y-o-y at 299.1 TWh, confirming the positive trend observed over previous months. Both wind and solar power production increased significantly, respectively by +26.6% y-o-y and +24.0% y-o-y, while hydropower production dropped by 1.6% y-o-y, mainly because of severe drought conditions affecting several countries in the OECD Europe region.
Nuclear electricity production in total OECD dropped by 8.1% at 141.9 TWh, as output in the OECD Europe region remains at historically low levels. Consequently, the share of nuclear power in the OECD electricity mix fell to only 14.3%.
Electricity production from combustible fuels increased by 2.2% y-o-y at 575.5 TWh, with higher output from natural gas power plants (+8.2% y-o-y) compensating for lower electricity generation from coal (-6.0% y-o-y). In particular, electricity production from natural gas grew in all OECD regions, driven by the OECD Americas, where the highest increase was observed (+10.0% y-o-y). Overall, the share of natural gas in the OECD electricity mix reached 33.2%. Read More
In a move that will expand and accelerate the growth of its strategic bioenergy business, bp today announced that it has agreed to acquire Archaea Energy Inc., a leading producer of renewable natural gas (RNG) in the US. The agreed acquisition, which is subject to regulatory and Archaea shareholder approval, will be for $3.3 billion in cash, as well as around $800 million of net debt2.
Bioenergy is one of five strategic transition growth engines that bp intends to grow rapidly through this decade. bp expects investment into its transition growth businesses to reach more than 40% of its total annual capital expenditure by 2025, aiming to grow this to around 50% by 2030.
Acquiring Archaea will expand bp’s presence in the US biogas industry, enhancing its ability to support customers’ decarbonization goals and also progressing its aim to reduce the average carbon intensity of the energy products it sells. bp aims to reduce that carbon intensity to net zero by 2050 or sooner Read More
In 2021 Equinor paid USD 8.9 billion dollars in corporate tax to authorities. Trough the tax contribution report, Equinor seeks to increase transparency on tax payments and principles.
“Equinor is dedicated to contributing to progress for societies, and paying the right tax where value is created is an important part of this commitment. We delivered strong earnings for 2021 and are hence able to contribute to society with larger tax payments,” says CFO Torgrim Reitan.
Torgrim Reitan – portrait
CFO Torgrim Reitan
In 2021, the Equinor group paid USD 8.9 billion in corporate income taxes and USD 2.9 billion in royalty payments and fees to local and national governments including host entitlement. USD 8.3 billion of the total amount was paid in Norway, where Equinor has the largest share of its operations and earnings.
In 2021 Equinor delivered excellent operational performance and increased production. Combined with higher prices for both gas and liquids, this resulted in stronger earnings. Tax payments for 2021 was considerably higher than for 2020, a year impacted by the global pandemic leading to relatively low commodity prices.
For 2021 Equinor paid close to USD 1 billion in environmental taxes and fees, including CO2 quotas. Taxes on emissions has increased over the years and are incentivising emissions reductions. “Carbon pricing is a key enabler of the energy transition. A price on carbon encourages emitters to reduce their greenhouse gas emissions. The early adoption of CO2 taxes in Norway has incentivised Equinor to keep reducing emissions from our oil and gas operations,” says Reitan. The tax contribution report complements other publications and disclosures such as Equinor’s Annual Report including Payments to Governments report and Sustainability Report. Read More
Eni met with the president of Tuscany, Eugenio Giani, and the mayors of Livorno, Luca Salvetti, and Collesalvetti, Adelio Antolini, to confirm that the company is investigating the opportunity to build a new bio-refinery at Eni’s industrial site in Livorno.
The feasibility study involves building three new plants for the production of hydrogenated biofuel: a biogenic feedstock pre-treatment unit, a 500,000 tonne/year Ecofining™ plant and a plant for the production of hydrogen from methane gas.
The construction of the new bio-refinery – located in an industrial area which houses fuel and lubricant production facilities – would maximise synergies from the infrastructure already available and secure the site’s future as an employment and production hub. Read More
Increased poverty. Food shortages. Energy shocks. Debt crises. Climate change. Inflation. War.
The headlines are grim. And they set an unavoidable backdrop for this year’s Annual Meetings of the World Bank Group and the International Monetary Fund. The Meetings provided an opportunity to raise the alarm to these dangers—and discuss how to move forward to help the poor and vulnerable.
“A series of harsh events and unprecedented macroeconomic policies are combining to throw development into crisis,” World Bank President David Malpass said in a speech ahead of the meetings at Stanford University. “The human consequence of these overlapping crises is catastrophic.”
At the Annual Meetings Plenary session on Friday, Malpass said the World Bank Group and other Bretton Woods Institutions should consider their roles and capital structure, and evolve to better address climate change and global public goods.
The statement issued Saturday by the Chair of the Development Committee, a ministerial-level forum that represents 189 member countries, noted that the overlapping crises have caused reversals in poverty reduction and a rise in inequality. Read More
