Japan, 5th April 2017: Mr. Areepong Bhoocha-Oom, Permanent Secretary of the Ministry of Energy of Thailand launched today the ‘Future Energy Asia Exhibition & Conference’ as a major initiative towards securing the path to Thailand’s Energy 4.0. The transformation and development of Thailand is a major priority for the government which creates incredible business opportunities for both integrated and non-integrated energy companies globally. As such, ‘Future Energy Asia Exhibition & Conference’ is the perfect platform for NOCs and IOCs to foster the transition from traditional fuel suppliers to integrated energy providers for a more efficient and sustainable energy mix across Asia.
Globally energy demand will increase by around 30% to 2030, driven by increasing prosperity in developing countries and by fast growing emerging markets. The energy mix is changing driven by technology and environment concerns.
The primary demand will still be Oil and Gas but industry is adapting and changing and is seeing these traditional fossil fuels provide the transition to the evolution that is underway Natural Gas and LNG will be the primary fuel source for Asia’s continued development
Future Energy Asia under support of the Thailand Ministry of Energy promises to be the largest energy industry gathering Asia has ever seen. Focusing on oil, gas and renewables, the event is set forth to outline the perfect scenarios of mixed fuels and technologies needed to meet growing energy demand, improve efficiency and support the transition to a lower-carbon economy. It will be held from 12-14 December 2018 at BITEC, Thailand with 15,000+ visitors, 2,500+ delegates, 300 speakers and over 600 exhibiting companies. His Excellency Permanent Secretary announced the launch to a gathering of dignitaries, officials, energy sector leaders and prominent media together with international organiser dmg events and expert event co-organisers, Exposis from Thailand.
Dr. Areepong Bhoocha-Oom said “Thailand 4.0 means opportunity and the transformation in the energy sector of the country as well. As we move more closely towards an improved energy system, energy production and consumption must adapt radically to ensure the demands of growing populations are met, whilst ensuring cleaner and more efficient delivery is achieved. While renewable and other carbon-free energy will play a primary role, the importance of fossil fuels, in particular natural gas, in delivering the cost-effective and immediate requirements of Asia’s growing demand cannot be ignored. Fossil fuel & renewable energy can certainly form the core elements of a transition to a cleaner & more sustainable energy future for Asia”
He affirmed that holding Future Energy Asia exhibition and conference in Thailand reflects Thailand’s continuous efforts to promote new projects, attract investments in the energy sector, and consolidate communication with foreign investors and large international corporations, which are foremost on the investment opportunities map. The event will act as a collaborative effort to publicise Thailand’s new policies and readiness as an investment hub and showcase Thailand’s potential to become the sustainable energy hub for Asia, as it transitions to Thailand 4.0.
He added “We are delighted to host Future Energy Asia 2018 and look forward to the interactions with its delegates for the continued improvement of the global energy sector. The decisions and relationships built will foster a collaborative and economically viable energy future.”
From his part, Mr. Christopher Hudson, President of DMG Events Global Energy, the company responsible for organising the ‘Future Energy Asia’ presented the plans for the event. He explained that “The 3-day exhibition and conference is dedicated to advancing future energy, energy efficiency and clean technology. Going by the overwhelming response from the global events dmg organises such as ADIPEC and Gastech, the event promises to be the most sought after meeting point for Asia’s stake holders to discuss, debate and embrace future energy scenarios and solutions concerning long-term global energy policies.”
“Thailand is clearly a growing market with huge opportunities, and ‘Future Energy Asia 2018’ presents the first opportunity for local, regional and international energy companies across the full value chain of this promising sector to come together and create a blueprint for the future energy security of Asia. This inaugural Show will provide an opportunity for global buyers and sellers to display their products and services on the exhibition floor, and to establish alliances and partnerships. The conference represents an unparalleled opportunity for the global energy industry to explore the opportunities and challenges of the exciting Asian market" he said.
Along with the conference and exhibition, the event will host strategic Ministerial meetings, an ‘awards ceremony and fund’ that will support research and development in energy and social programs on all the days to facilitate networking with peers, business partners and key stake-holders in the energy sector.
Commenting further on the conference element of the show, Mr. Hudson added “The Conference will not only address the technical aspects of gas, oil and renewables, but also host discussions addressing the challenges facing the industry to include both business and political issues. Some of the key topics include ‘delivering power to grids’, developing efficient and smart electricity distribution and transmission networks, lighting up Asia’s cities: next-generation power generation strategies and technology and ‘creating a blueprint for a harmonious fuel mix: maximising the use and efficiency of fossil fuels in conjunction with carbon-free energy’”.
“We are extremely grateful for the support and understanding we have received from the Ministry of Energy of Thailand in ensuring the inaugural Future Energy Asia 2018 is a success. Having the Minister himself as Event Chairman underlines Thailand's commitment to bringing energy security to all..” concluded Mr. Hudson.
Future Energy Asia is also supported by Thailand Convention & Exhibition Bureau (TCEB). “TCEB, as a government organization dedicated to developing Thailand’s MICE industry, is pleased to support Future Energy Asia 2018. Thanks to DMG Events for the trust and confidence in Thailand to anchor the show for the first time in 2018 at Bangkok International Trade and Exhibition Centre (BITEC). Thailand’s trade exhibitions are well recognized as a high-potential marketplace and gateway to emerging business opportunities in ASEAN, Asia, and the world. With Thailand’s ASEAN-centric location, ease of doing business, TCEB’s strong network of local and international alliances, and the Thai government’s clear, forward-looking policy on energy, we are positive that locating Future Energy Asia in Thailand will be a contributing factor to its success, and that the show will be able to play a more effective role in connecting all key stakeholders in the development of ASEAN’s energy sector” said Mrs. Jaruwan Suwannasat, Exhibitions & Events Director, TCEB.
Future Energy Asia 2018 is the latest expansion in dmg events' Global Energy Division conference and exhibition portfolio, which includes some of the world's largest and most important events, including the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Gastech in Barcelona, and the Global Petroleum Show (GPS) in Canada.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
Source: U.S. Energy Information Administration, Short-Term Energy Outlook
In April 2019, Venezuela's crude oil production averaged 830,000 barrels per day (b/d), down from 1.2 million b/d at the beginning of the year, according to EIA’s May 2019 Short-Term Energy Outlook. This average is the lowest level since January 2003, when a nationwide strike and civil unrest largely brought the operations of Venezuela's state oil company, Petróleos de Venezuela, S.A. (PdVSA), to a halt. Widespread power outages, mismanagement of the country's oil industry, and U.S. sanctions directed at Venezuela's energy sector and PdVSA have all contributed to the recent declines.
Source: U.S. Energy Information Administration, based on Baker Hughes
Venezuela’s oil production has decreased significantly over the last three years. Production declines accelerated in 2018, decreasing by an average of 33,000 b/d each month in 2018, and the rate of decline increased to an average of over 135,000 b/d per month in the first quarter of 2019. The number of active oil rigs—an indicator of future oil production—also fell from nearly 70 rigs in the first quarter of 2016 to 24 rigs in the first quarter of 2019. The declines in Venezuelan crude oil production will have limited effects on the United States, as U.S. imports of Venezuelan crude oil have decreased over the last several years. EIA estimates that U.S. crude oil imports from Venezuela in 2018 averaged 505,000 b/d and were the lowest since 1989.
EIA expects Venezuela's crude oil production to continue decreasing in 2019, and declines may accelerate as sanctions-related deadlines pass. These deadlines include provisions that third-party entities using the U.S. financial system stop transactions with PdVSA by April 28 and that U.S. companies, including oil service companies, involved in the oil sector must cease operations in Venezuela by July 27. Venezuela's chronic shortage of workers across the industry and the departure of U.S. oilfield service companies, among other factors, will contribute to a further decrease in production.
Additionally, U.S. sanctions, as outlined in the January 25, 2019 Executive Order 13857, immediately banned U.S. exports of petroleum products—including unfinished oils that are blended with Venezuela's heavy crude oil for processing—to Venezuela. The Executive Order also required payments for PdVSA-owned petroleum and petroleum products to be placed into an escrow account inaccessible by the company. Preliminary weekly estimates indicate a significant decline in U.S. crude oil imports from Venezuela in February and March, as without direct access to cash payments, PdVSA had little reason to export crude oil to the United States.
India, China, and some European countries continued to receive Venezuela's crude oil, according to data published by ClipperData Inc. Venezuela is likely keeping some crude oil cargoes intended for exports in floating storageuntil it finds buyers for the cargoes.
Source: U.S. Energy Information Administration, Short-Term Energy Outlook, and Clipper Data Inc.
A series of ongoing nationwide power outages in Venezuela that began on March 7 cut electricity to the country's oil-producing areas, likely damaging the reservoirs and associated infrastructure. In the Orinoco Oil Belt area, Venezuela produces extra-heavy crude oil that requires dilution with condensate or other light oils before the oil is sent by pipeline to domestic refineries or export terminals. Venezuela’s upgraders, complex processing units that upgrade the extra-heavy crude oil to help facilitate transport, were shut down in March during the power outages.
If Venezuelan crude or upgraded oil cannot flow as a result of a lack of power to the pumping infrastructure, heavier molecules sink and form a tar-like layer in the pipelines that can hinder the flow from resuming even after the power outages are resolved. However, according to tanker tracking data, Venezuela's main export terminal at Puerto José was apparently able to load crude oil onto vessels between power outages, possibly indicating that the loaded crude oil was taken from onshore storage. For this reason, EIA estimates that Venezuela's production fell at a faster rate than its exports.
EIA forecasts that Venezuela's crude oil production will continue to fall through at least the end of 2020, reflecting further declines in crude oil production capacity. Although EIA does not publish forecasts for individual OPEC countries, it does publish total OPEC crude oil and other liquids production. Further disruptions to Venezuela's production beyond what EIA currently assumes would change this forecast.
Headline crude prices for the week beginning 13 May 2019 – Brent: US$70/b; WTI: US$61/b
Headlines of the week
Midstream & Downstream
The world’s largest oil & gas companies have generally reported a mixed set of results in Q1 2019. Industry turmoil over new US sanctions on Venezuela, production woes in Canada and the ebb-and-flow between OPEC+’s supply deal and rising American production have created a shaky environment at the start of the year, with more ongoing as the oil world grapples with the removal of waivers on Iranian crude and Iran’s retaliation.
The results were particularly disappointing for ExxonMobil and Chevron, the two US supermajors. Both firms cited weak downstream performance as a drag on their financial performance, with ExxonMobil posting its first loss in its refining business since 2009. Chevron, too, reported a 65% drop in the refining and chemicals profit. Weak refining margins, particularly on gasoline, were blamed for the underperformance, exacerbating a set of weaker upstream numbers impaired by lower crude pricing even though production climbed. ExxonMobil was hit particularly hard, as its net profit fell below Chevron’s for the first time in nine years. Both supermajors did highlight growing output in the American Permian Basin as a future highlight, with ExxonMobil saying it was on track to produce 1 million barrels per day in the Permian by 2024. The Permian is also the focus of Chevron, which agreed to a US$33 billion takeover of Anadarko Petroleum (and its Permian Basin assets), only for the deal to be derailed by a rival bid from Occidental Petroleum with the backing of billionaire investor guru Warren Buffet. Chevron has now decided to opt out of the deal – a development that would put paid to Chevron’s ambitions to match or exceed ExxonMobil in shale.
Performance was better across the pond. Much better, in fact, for Royal Dutch Shell, which provided a positive end to a variable earnings season. Net profit for the Anglo-Dutch firm may have been down 2% y-o-y to US$5.3 billion, but that was still well ahead of even the highest analyst estimates of US$4.52 billion. Weaker refining margins and lower crude prices were cited as a slight drag on performance, but Shell’s acquisition of BG Group is paying dividends as strong natural gas performance contributed to the strong profits. Unlike ExxonMobil and Chevron, Shell has only dipped its toes in the Permian, preferring to maintain a strong global portfolio mixed between oil, gas and shale assets.
For the other European supermajors, BP and Total largely matched earning estimates. BP’s net profits of US$2.36 billion hit the target of analyst estimates. The addition of BHP Group’s US shale oil assets contributed to increased performance, while BP’s downstream performance was surprisingly resilient as its in-house supply and trading arm showed a strong performance – a business division that ExxonMobil lacks. France’s Total also hit the mark of expectations, with US$2.8 billion in net profit as lower crude prices offset the group’s record oil and gas output. Total’s upstream performance has been particularly notable – with start-ups in Angola, Brazil, the UK and Norway – with growth expected at 9% for the year.
All in all, the volatile environment over the first quarter of 2019 has seen some shift among the supermajors. Shell has eclipsed ExxonMobil once again – in both revenue and earnings – while Chevron’s failed bid for Anadarko won’t vault it up the rankings. Almost ten years after the Deepwater Horizon oil spill, BP is now reclaiming its place after being overtaken by Total over the past few years. With Q219 looking to be quite volatile as well, brace yourselves for an interesting earnings season.
Supermajor Financials: Q1 2019