NrgEdge Editor

Sharing content and articles for users
Last Updated: June 8, 2017
1 view
Business Trends
image

Last week in the world oil:

Prices

  • President Trump’s decision to pull the US out of the Paris Climate Agreement may have sent prices down, but now a more serious rift has appeared. Saudi Arabia has cut off all diplomatic ties with Qatar, as well as its land border, joined by the UAE, Bahrain and Egypt. Crude prices tumbled in response, with Brent falling below US$50/b. The worry is long term; Qatar may be the smallest producer within the OPEC cartel, but these new tensions could unleash discontent within the cartel, potentially weakening its supply deal and derailing attempts to support oil prices.

Upstream & Midstream

  • Canada’s Husky Energy is proceeding with its C$2.2 billion (US$1.6 billion) West White Rose project off the country’s Atlantic coast, slated to begin production in 2022 and scale up to peak capacity of 75 kb/d by 2025. A new oil discovery has also been made at Husky’s Northwest White Rose production area, as it remains undeterred by the downturn.
  • Even as crude oil prices tumbled, American rig operators show no sign of slowing down. Eleven new oil rigs were started up last week, offsetting the loss of three gas rigs to bring the total number to 916.

Downstream

  • Nigeria’s parliament has halted an agreement with Eni that would have seen the Italian major takeover operations of the Port Harcourt refinery. The site, with capacity of 445 kb/d, has been languishing in disrepair, forcing Nigeria to import most of its oil products. Eni’s participation would be led to major repairs necessary, but the government has called off the deal with Nigerian company Oando, citing a ‘lack of transparency.’
  • Canada’s first new refinery since 1984 has started up, entering a field that has significantly changed since it was first approved. The Sturgeon plant in Alberta was designed to process oil sands into diesel, in response to a diesel shortage in 2012. The market, however, has already changed, with diesel now in oversupply and prices in challenging territory.

Natural Gas and LNG

  • BP has been busy in the Caribbean, signing off on its US$500 million Angelin offshore gas development in Trinidad & Tobago. The first major offshore project approved by BP this year, first gas is expected to flow in 2019. BP also announced two ‘significant’ gas discoveries in its Savannah and Macademia exploration wells offshore Trinidad, potentially holding 2 trillion cubic feet of gas. The finds will be significant for BP, which has faced declining production in Trinidad since 2010.
  • Italy’s Eni has sanctioned its Coral South LNG project in Mozambique, a US$8 billion gas development that will transform the African nation into a major supplier of LNG. Exports, which should number 3.4 million tons, are expected to begin in 2022, and additional LNG projects tapping into the 85 tcf Rovuma Basin are expected come onstream as well.
  • American regulators have cleared the way for the first floating LNG terminal in the Gulf of Mexico. The 13 mtpa Delfin project by Fairwood also received approval from the Energy Department to 1.8 bcf of LNG to countries with no free-trade agreements with the US, adding to permission to ship to countries already with trade pacts.

Last week in Asian oil

Upstream

  • BP expects to complete its production sharing deal extension in Azerbaijan by the end of the month. The deal, which involves the Central Asian nation’s largest oilfields, will extend the agreement between a BP-led consortium and Azeri state oil firm SOCAR from the original expiration date of 2024 to 2050. Other partners in the consortium include Chevron, Inpex, Statoil, ExxonMobil and Itochu.

Downstream

  • Binh Son Refinery, operators of Vietnam’s sole refinery in Dung Quat, announced that it had bee valued at 72.88 trillion dong (US$3.21 billion) at end-2015, which would be the basis of its planned IPO. Aimed to be launched by end 2017, the IPO will see 5-6% of the company’s shares sold publicly, which is part of a drive to reduce government ownership in Vietnamese state-run enterprises.
  • Pricing agency S&P Global Platts has added Indonesia’s Oiltanking Karimun Terminal to its Singapore prices for gasoil, jet fuel and gasoline, expanding the geographical reach of its Singapore price assessments. This will be the first Indonesian delivery point in the Platts assessment, which already includes several Malaysia terminals like Tanjung Langsat, Tanjung Bin, Pengerang and several floating storage units.

Natural Gas & LNG

  • As it is isolated politically and geographically by its neighbours, Qatar is facing challenges to its status as the world’s largest LNG exporter. Looking to the future, state-run Qatar Petroleum is now mulling over raising the capacity at Ras Laffan trains through debottlenecking, to prepare from additional gas that it expects to come from its new North Field project.
  • With a tsunami of LNG expected out of the US Gulf Coast, Japan has agreed in principal to help promote American LNG usage during a trip by US Energy Secretary Rick Petty to Tokyo. The agreement is in line with Japan’s ambitions to seek new outlets for natural gas consumption domestically and in Asia, as well as establish itself as the LNG trading hub in the region, which would depend on American spot cargoes.
  • PNOC has unveiled its plans for the Energy City in Limay, Bataan. Centred around an LNG receiving and regasification facility, as well as associated facilities, power generation plants and transmission infrastructure, the project is a step forward to implement the country’s decades-long ambition to build an LNG import plant to meet its growing power needs. Japan’s Osaka Gas and Mitsui will be partners in the US$2.4 billion project, with construction aimed to begin in 2020. Corporate

 Malaysia’s Petronas reported that its profits have more than doubled on a yearly basis. Revenue for the quarter ending March 31 was RM61.6 billion, up 25%, while net profit was up from RM4.6 billion to RM 10.3 billion (US$2.41 billion), as a cost-cutting drive helped trim operating expenses. Its conservative price expectations for the year are US$45/b, a level that crude prices are currently dangerously close to.

3
2 0

Something interesting to share?
Join NrgEdge and create your own NrgBuzz today

Latest NrgBuzz

Chicago Cubs Shirts: Wear Style with Ultimate Comfort!

For most people, embracing style can be really overwhelming. The bodycon dress might look fabulous but what about comfort? This type of dress clasp all the body and sometimes it becomes really hard to take a fine breath! In fact, the satin cloths that look super lustrous and voguish, but only the person who is wearing that knows how uneasiness feels like. Moreover, these types of clothing can not be worn on all occasions. You literally have to pick the right piece of outfit according to a specific occasion keeping the ambiance of the situation in mind. This is simply the reason, why ladies always complain that they have nothing to wear. To save people from this fashion crisis, sport wears emerges to be the ultimate lifesaver and in this connection, the mention must be made of Chicago Cubs Shirts.


This exclusive range of sportswear apparel is now currently flooding the market with exceptionally designed shirts that can be worn by people of all ages, gender and fashion taste. They are affordable and comfortable at the same time. Chicago Cubs Shirts adopt the classic sport design with exceptionally hemmed collar shapes that are sober and fashionable at the same time. The trend of sportswear can never be old and apart from sports lovers, people who worship fashion are now greatly turning their heads towards the contemplation of sporty shirts. Although they have a very simple design, they look highly versatile on everyone. 


Whether you are partying, enjoying social gathering, attending boring lectures, going on a date, traveling or just chilling at your couch with a cozy blanket, Chicago Cubs Shirts can be worn at any time and any situation. The material of the cloth is extremely comfortable and they are breathable. The shirts keep you from over sweating and at the same time, it allows you to look super cool in a sober manner. To know more please visit the websitehttps://www.sportsworldchicago.com/Chicago_Cubs_Shirts/


September, 16 2021
The New Wave of Renewable Fuels

In 2021, the makeup of renewables has also changed drastically. Technologies such as solar and wind are no longer novel, as is the idea of blending vegetable oils into road fuels or switching to electric-based vehicles. Such ideas are now entrenched and are not considered enough to shift the world into a carbon neutral future. The new wave of renewables focus on converting by-products from other carbon-intensive industries into usable fuels. Research into such technologies has been pioneered in universities and start-ups over the past two decades, but the impetus of global climate goals is now seeing an incredible amount of money being poured into them as oil & gas giants seek to rebalance their portfolios away from pure hydrocarbons with a goal of balancing their total carbon emissions in aggregate to zero.

Traditionally, the European players have led this drive. Which is unsurprising, since the EU has been the most driven in this acceleration. But even the US giants are following suit. In the past year, Chevron has poured an incredible amount of cash and effort in pioneering renewables. Its motives might be less than altruistic, shareholders across America have been particularly vocal about driving this transformation but the net results will be positive for all.

Chevron’s recent efforts have focused on biomethane, through a partnership with global waste solutions company Brightmark. The joint venture Brightmark RNG Holdings operations focused on convert cow manure to renewable natural gas, which are then converted into fuel for long-haul trucks, the very kind that criss-cross the vast highways of the US delivering goods from coast to coast. Launched in October 2020, the joint venture was extended and expanded in August, now encompassing 38 biomethane plants in seven US states, with first production set to begin later in 2021. The targeting of livestock waste is particularly crucial: methane emissions from farms is the second-largest contributor to climate change emissions globally. The technology to capture methane from manure (as well as landfills and other waste sites) has existed for years, but has only recently been commercialised to convert methane emissions from decomposition to useful products.

This is an arena that another supermajor – BP – has also made a recent significant investment in. BP signed a 15-year agreement with CleanBay Renewables to purchase the latter’s renewable natural gas (RNG) to be mixed and sold into select US state markets. Beginning with California, which has one of the strictest fuel standards in the US and provides incentives under the Low Carbon Fuel Standard to reduce carbon intensity – CleanBay’s RNG is derived not from cows, but from poultry. Chicken manure, feathers and bedding are all converted into RNG using anaerobic digesters, providing a carbon intensity that is said to be 95% less than the lifecycle greenhouse gas emissions of pure fossil fuels and non-conversion of poultry waste matter. BP also has an agreement with Gevo Inc in Iowa to purchase RNG produced from cow manure, also for sale in California.

But road fuels aren’t the only avenue for large-scale embracing of renewables. It could take to the air, literally. After all, the global commercial airline fleet currently stands at over 25,000 aircraft and is expected to grow to over 35,000 by 2030. All those planes will burn a lot of fuel. With the airline industry embracing the idea of AAF (or Alternative Aviation Fuels), developments into renewable jet fuels have been striking, from traditional bio-sources such as palm or soybean oil to advanced organic matter conversion from agricultural waste and manure. Chevron, again, has signed a landmark deal to advance the commercialisation. Together with Delta Airlines and Google, Chevron will be producing a batch of sustainable aviation fuel at its El Segundo refinery in California. Delta will then use the fuel, with Google providing a cloud-based framework to analyse the data. That data will then allow for a transparent analysis into carbon emissions from the use of sustainable aviation fuel, as benchmark for others to follow. The analysis should be able to confirm whether or not the International Air Transport Association (IATA)’s estimates that renewable jet fuel can reduce lifecycle carbon intensity by up to 80%. And to strengthen the measure, Delta has pledged to replace 10% of its jet fuel with sustainable aviation fuel by 2030.

In a parallel, but no less pioneering lane, France’s TotalEnergies has announced that it is developing a 100% renewable fuel for use in motorsports, using bioethanol sourced from residues produced by the French wine industry (among others) at its Feyzin refinery in Lyon. This, it believes, will reduce the racing sports’ carbon emissions by an immediate 65%. The fuel, named Excellium Racing 100, is set to debut at the next season of the FIA World Endurance Championship, which includes the iconic 24 Hours of Le Mans 2022 race.

But Chevron isn’t done yet. It is also falling back on the long-standing use of vegetable oils blended into US transport fuels by signing a wide-ranging agreement with commodity giant Bunge. Called a ‘farmer-to-fuelling station’ solution, Bunge’s soybean processing facilities in Louisiana and Illinois will be the source of meal and oil that will be converted by Chevron into diesel and jet fuel. With an investment of US$600 million, Chevron will assist Bunge in doubling the combined capacity of both plants by 2024, in line with anticipated increases in the US biofuels blending mandates.

Even ExxonMobil, one of the most reticent of the supermajors to embrace renewables wholesale, is getting in on the action. Its Imperial Oil subsidiary in Canada has announced plans to commercialise renewable diesel at a new facility near Edmonton using plant-based feedstock and hydrogen. The venture does only target the Canadian market – where political will to drive renewable adoption is far higher than in the US – but similar moves have already been adopted by other refiners for the US market, including major investments by Phillips 66 and Valero.

Ultimately, these recent moves are driven out of necessity. This is the way the industry is moving and anyone stubborn enough to ignore it will be left behind. Combined with other major investments driven by European supermajors over the past five years, this wider and wider adoption of renewable can only be better for the planet and, eventually, individual bottom lines. The renewables ball is rolling fast and is only gaining momentum.

End of Article

Follow us for weekly updates! 

Market Outlook:

  • Crude price trading range: Brent – US$71-73/b, WTI – US$68-70/b
  • Global crude benchmarks have stayed steady, even as OPEC+ sticks to its plans to ease supply quotas against the uncertainty of rising Covid-19 cases worldwide
  • However, the success of vaccination drives has kindled hope that the effect of lockdowns – if any – will be mild, with pockets of demand resurgence in Europe; in China, where there has been a zero-tolerance drive to stamp out Covid outbreaks, fuel consumption is strengthening again, possibly tightening fuel balances in Q4
  • Meanwhile, much of the US Gulf of Mexico crude production remains hampered by the effects of Hurricane Ida, providing a counter-balance on the supply side

No alt text provided for this image

Learn more about this course

September, 16 2021
How I get so many followers for my instagram page?

I have been looking for a fast way to get followers for my insta page for a long time and recently I have found it. Now I buy instagram followers for my profile every week and my page is very popular

September, 15 2021