Top Energy News As Reported; OPEC basket of thirteen crudes stood at $75.85 a barrel
London, 12 June, 2023, (Oilandgaspress) : U.S. Department of Energy’s (DOE) Office of Petroleum Reserves announced that contracts have been awarded for the acquisition of 3 million barrels of U.S. produced crude oil for the Strategic Petroleum Reserve (SPR). These contracts follow the Request for Proposal that was announced on May 15, 2023. Furthering the Biden-Harris Administration’s three-part replenishment plan, DOE also announced a new Notice of Solicitation to purchase approximately 3.1 million additional barrels of crude oil to the Big Hill SPR site this September.
This announcement advances the President’s replenishment strategy following his historic release from the SPR to address the significant global supply disruption caused by Putin’s war on Ukraine. Analysis from the Department of the Treasury indicates that SPR releases last year, along with coordinated releases from international partners, reduced gasoline prices by up to roughly 40 cents per gallon compared to what they would have been absent these drawdowns.
A total of 10 companies responded to the Request for Proposal submitting 30 proposals.
US Crude Oil Production indicator
Companies Affected by Crude Oil Production
US Crude Oil Production indicator measures the daily number of barrels produced in the United States in oil fields.
This list has performed -10.32% over the past year. By comparison, FTSE 100 Index is 3.35% over the same period. The beta of this list, which is a measure of volatility, is Moderately High at 1.41. List Beta is calculated using an equally weighted average beta of the securities within this list.
List performance is calculated using an equal-weight methodology. This list is generated by scanning the web and using our algorithms to surface potentially relevant securities to the topic.The list is intended to be educational and includes securities that may be suitable for a watchlist.It is not intended for investment or trading purposes. Microsoft does not recommend using the data and information provided as the basis for making any investment decision.. Read More
BP, power firm Drax, Heathrow Airport and international hoteliers IHG have become founding members of the British Chambers of Commerce (BCC) business council.
The British Chambers of Commerce (BCC) has announced a new Business Council, comprised of prominent UK business leaders, to design and drive the future of the British economy. The founding partners will be uniquely placed to shape the BCC’s policy and influencing, with the Council forming part of the organisation’s new national offer to businesses. Heathrow, Drax, IHG Hotels & Resorts and BP have joined the Council as the first founding partners.
BCC Director General Shevaun Haviland and BCC President Baroness Martha Lane Fox will join a wider group of business leaders at a roundtable meeting in central London this afternoon (Monday 5th June) to discuss the Council and the BCC’s new national offer. Read More
British Museum BP sponsorship deal ends
The British Museum has quietly ended its sponsorship deal with BP after 27 years, becoming the largest cultural institution to drop the fossil fuel giant.
Under pressure from climate activists, organisations including the Royal Shakespeare Company (RSC) and National Portrait Gallery have also discontinued sponsorship deals with the oil multinational.
BP’s sponsorship deal with the British Museum came to an end in February, making it the largest of the UK’s cultural institutions to cut financial ties to the oil firm.
The museum said this did not mean its relationship with the oil company has ended entirely. A spokesman said: “In times of reduced public funding, corporate sponsors like BP allow us to fulfil our mission to deliver unique learning experiences to our visitors. Read More
Shell puts profits above clean energy
Shell is set to scrap a target to reduce oil output by 1 to 2 per cent per year, its chief executive will tell investors next week.
The energy group will keep oil output steady or slightly higher for the rest of the decade as part of chief executive Wael Sawan’s efforts to regain investor confidence as the energy firm wrestles with poor returns from renewables while oil and gas profits are booming.
Mr Sawan, who took control of Shell in January with a vow to improve its financial performance as its shares lag rivals, will tell investors in New York this week that oil and gas will remain central to Shell for years to come, insisting that efforts to shift to low-carbon businesses cannot come at the expense of profits.
He is expected to argue that world’s growing demand for fossil fuels has changed the rate and extent to which it can transition to cleaner energy. Read More
The Companies Leading the Battery Revolution
The battery industry is undergoing a rapid transformation as demand for electric vehicles and renewable energy storage grows. Lithium-ion batteries, the dominant technology today, face challenges in terms of cost, performance, safety and environmental impact. To overcome these limitations, many companies are developing and investing in next-generation battery technologies that use alternative materials and designs. Whether it’s solid-state batteries, hydrogen fuel cells, redox flow batteries, bio-electrochemical batteries, sodium-based batteries, magnesium-based batteries or aluminum-ion batteries, companies in this list are behind some of the most promising battery innovations today. This list has performed -11.24% over the past year. By comparison, FTSE 100 Index is 3.35% over the same period. The beta of this list, which is a measure of volatility, is High at 1.60. List Beta is calculated using an equally weighted average beta of the securities within this list. This list includes 50.00% of Consumer Cyclicals stocks, 40.00% of Basic Materials stocks, 10.00% of Industrials stocks.
List performance is calculated using an equal-weight methodology. This list is generated by scanning the web and using our algorithms to surface potentially relevant securities to the topic.The list is intended to be educational and includes securities that may be suitable for a watchlist.It is not intended for investment or trading purposes. Microsoft does not recommend using the data and information provided as the basis for making any investment decision. Read More
Baker Hughes Rig Count
U.S. Rig Count is down 1 from last week to 695 with oil rigs up 1 to 556, gas rigs down 2 to 135 and miscellaneous rigs unchanged at 4.
Canada Rig Count is up 39 from last week to 136, with oil rigs up 34 to 85, gas rigs up 5 to 51.
| Region | Period | Rig Count | Change |
| U.S.A | 02 June 2023 | 695 | -1 |
| Canada | 02 June 2023 | 136 | +39 |
| International | May 2023 | 965 | +18 |
Governments continuing to push investment into clean energy
IEA Government Energy Spending Tracker, formerly the Sustainable Recovery Tracker, provides periodic updates on the latest approved policies and their expected fiscal contributions to energy. The latest update, issued in June 2023, focuses on tracking two types of spending policies:
The amount of money allocated by governments to support clean energy investment since 2020 has risen to USD 1.34 trillion, according to the latest update of the IEA’s Government Energy Spending Tracker. Around USD 130 billion of new spending was announced in the last six months – among the slowest periods for new allocations since the start of the Covid-19 pandemic.
This slowdown may be short-lived, however, as a number of additional policy packages are being considered in Australia, Brazil, Canada, the European Union and Japan. Already, government spending is playing a central role in the rapid growth of clean energy investment and expanding clean technology supply chains, and is set to drive both to set to drive both to new heights in the years ahead. Notably, direct incentives for manufacturers aimed at bolstering domestic manufacturing of clean energy technologies now total around USD 90 billion.
At the same time, governments continue to increase spending on managing the immediate energy price shocks for consumers. Since the start of the global energy crisis in early 2022, governments have allocated USD 900 billion to short-term consumer affordability measures in addition to pre-existing support programmes and subsidies. Around 30% of this affordability spending has been announced in the past six months. Read More
Global energy access gap persists
A new report by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO), released today, finds that the world is not on track to achieve the Sustainable Development Goal (SDG) 7 for energy by 2030.
This year marks the halfway point for achieving SDGs by 2030. SDG 7 is to ensure access to affordable, reliable, sustainable and modern energy. The goal includes reaching universal access to electricity and clean cooking, doubling historic levels of efficiency improvements, and substantially increasing the share of renewables in the global energy mix. Attaining this goal will have a deep impact on people’s health and well-being, helping to protect them from environmental and social risks such as air pollution, and expanding access to primary health care and services. The 2023 edition of Tracking SDG 7: The Energy Progress Report warns that current efforts are not enough to achieve the SDG 7 on time. There has been some progress on specific elements of the SDG 7 agenda – for example, the increased rate of using renewables in the power sector – but progress is insufficient to reach the targets set forth in the SDGs. The global energy crisis is expected to stimulate the deployment of renewables and improve energy efficiency with several government policies pointing to increasing investment. However, IRENA estimates show that international public financial flows in support of clean energy in low- and middle-income countries have been decreasing since before the COVID-19 pandemic and funding is limited to a small number of countries. To meet SDG 7 targets and to ensure that people fully benefit from the socio-economic gains of the shift to sustainable energy, it is necessary to structurally reform international public finance and define new opportunities to unlock investments. Read More
IEA’s Committee on Energy Research and Technology (CERT)
The International Energy Agency last week brought together government, industry and civil society representatives to discuss the role of direct air capture and storage (DACS) in meeting climate objectives, and the challenges and opportunities involved in further deployment.
The hybrid event, a thematic workshop of the IEA’s Committee on Energy Research and Technology (CERT), took place on 31 May and was attended by around 60 in-person participants from around 15 countries including the United States, Canada and Japan, as well as around 30 online attendees. Attendees comprised senior officials from government, including the delegates of IEA’s CERT, industry representatives involved in direct air capture and international carbon markets, and civil society.
Directly reducing emissions in all sectors that produce and consume energy is the primary route to net zero, but carbon dioxide removal (CDR) technologies such as DACS are also needed to meet the Paris Agreement’s goal of limiting global temperature rise to 1.5 °C. In the IEA Net Zero Emissions by 2050 (NZE) Scenario, DACS is scaled up to capture almost 60 million tonnes of CO2 per year (MtCO2/year) by 2030, a significant step-up from the less than 0.01 MtCO2/year currently captured. This level of deployment is achievable but will require more large-scale demonstration plants to refine the technology and reduce costs.
A number of governments are providing policy and funding support to scale up DACS but, as a nascent and energy-intensive technology, it is currently very expensive. One way to increase demand for DACS, and thereby make it more cost-competitive, is through carbon markets that recognise the removed and stored CO2 in the form of carbon credits that can be sold to companies and governments through voluntary carbon markets or Article 6 of the Paris Agreement. However, putting this into practice will require a lot of technical work to develop credible and reliable monitoring, reporting and verification systems and baseline methodologies; robust accounting frameworks; and a revision of the current additionality criteria used in carbon markets to issue carbon credits to DACS-specific circumstances. Read More
Petrofac confirms signing of US$1.5 billion EPC contract in Algeria
Further to the announcement of 18 May 2023, Petrofac today confirms it has entered into a definitive agreement with STEP Polymers SPA (‘STEP’, a 100% subsidiary of Sonatrach) for the design and build of its petrochemical complex in the Arzew Industrial Zone in Algeria. As previously announced, Petrofac will deliver the US$1.5 billion project with its joint venture partner China Huanqiu Contracting & Engineering Corporation (HQC), with Petrofac’s share valued at over US$1 billion. The contract was signed at an official ceremony in Algiers by representatives of Petrofac, HQC and STEP.
Tareq Kawash, Petrofac’s Group Chief Executive, said: “I am delighted to be in Algiers alongside our partner and client to mark the official award of this pioneering project. Broadening Petrofac’s portfolio within the petrochemical sector, this contract builds on our 25-year track record of safely delivering strategically significant energy infrastructure in Algeria, while developing local workforces.” Read More
SDX Energy confirms potential sale of its Egyptian assets
SDX Energy are aware of rumours concerning its Egyptian business and confirms that the Company has received multiple offers in regard to the sale of its Egyptian assets, which the Board are evaluating. Any proposed transaction would be subject to the usual conditions associated with a transaction of this nature, including but not limited to the satisfaction of a number of condition precedents such as Government and Shareholder approval. The Company will be providing further details in due course as well as further information on the plans to return value to its shareholders via organic and inorganic growth. Read More
PetroNor restarts PNGF Sud field complex infill drilling program
PetroNor has provided an update on the Congo operations related to the PNGF Sud field complex. The infill drilling programme, which was paused at the end of 2022 as planned following the successful drilling of six wells on the Litanzi and Tchibeli NE fields, has restarted on the Tchibeli field.
The first infill well on Tchibeli spudded on 21 May 2023 with the drilling rig Axima. As of 9 June 2023, the well has been drilled, logged and cased at the targeted total depth of 2,694 mMD/2,172 mTVDSS and is about to undergo completion. Base case plans are to drill four wells in the field with first oil estimated in August from the initial two wells. The drilling programme is planned to extend through October. Read More
Short-term contract extension for Espoir Ivoirien
BW Offshore has signed a short-term extension for the lease and operation of the FPSO Espoir Ivoirien in order to discuss a potential purchase of the FPSO by the client. The firm period has been extended until 15 June 2023. Read More
PGS reports contract termination
Reference is made to the contract award announced March 22, 2023. PGS was during the weekend informed by the client that it will terminate the contract.
Ramform Titan was contracted to commence mobilization for the 3D exploration survey in June with acquisition to complete in August. Following successful completion of an acquisition campaign in Namibia late May, Ramform Titan was steaming to the survey area in South America when the notice of termination was received.
PGS is in dialog with the client relating to compensation and/or alternative work for the vessel. The dialog with the client is constructive and the aim is to minimize any financial impact on PGS. It is however a risk that the vessel will be idle for up to 2-3 months. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $69.14 | Down |
| Crude Oil (Brent) | USD/bbl | $73.71 | Down |
| Bonny Light | USD/bbl | $75.43 | Down |
| Saharan Blend | USD/bbl | $75.84 | Up |
| Natural Gas | USD/MMBtu | $2.26 | Down |
| OPEC basket 08/06/23 | USD/bbl | $75.85 | Down |
Centrica opens its first UK solar farm
Power generation is underway at Codford Solar Farm, the first newly built solar farm owned and operated by Centrica, under the company’s plans to build out a portfolio of flexible energy assets.
Construction began at the site in Wiltshire in April 2022, after the consent was acquired by Centrica Business Solutions in 2021. Made up of 33,000 panels, the project has a total capacity of 18MW and should produce 19GWh of green electricity every year, enough to power some 4,850 homes.
The deal not only brings additional renewable power provision to the UK grid but supports the UK government’s ambition to focus on home-grown renewable energy to boost long-term energy independence and security.
In late 2021, Centrica announced ambitions to deliver 900MW of low carbon assets by 2026. The company is currently building battery storage projects at former gas peaking plants at Brigg, Lincolnshire, Knapton, North Yorkshire, and Ostend in Belgium, and has developed a multi GW pipeline of projects.
Vodafone will purchase half of the electricity output from the solar farm, helping to support its development and bringing additional renewable power provision to the UK Grid. Combined with agreements already in place, around 47% of the company’s annual energy requirement will come from UK-based renewable power sources by 2025. The long-term Power Purchase Agreement (PPA) will see approximately 9GWh of green electricity dedicated to Vodafone UK. The remainder will be sold into the national grid through Centrica’s Energy Marketing & Trading business.
The deal is the third PPA signed by Vodafone and Centrica Energy Marketing & Trading over the last year. In May 2022, Vodafone and Centrica announced a long-term PPA with MYTILINEOS S.A for the output from three solar farms in the UK. And, in February 2023, Vodafone committed to take a significant proportion of the output from a further five solar farms in one of the largest corporate solar PPAs to date. Read More
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OilandGasPress Energy Newsbites and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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