Easwaran Kanason

Co - founder of NrgEdge
Last Updated: June 19, 2021
1 view
Business Trends
image

It was a headline that definitely opened eyes and definitely perked up ears. News that supermajor Shell was in the process of reviewing its holdings in the largest US oil field – the onshore Permian basin – came as a shock. On one hand, why was Shell looking to sell off its assets in the prized US shale patch only months after naming it one of its nine ‘core’ upstream areas? On the other hand, the prospect of taking over Shell’s sizable acreage in the Permian has set its competitors operating in the same shale patch sniffing around for opportunities.

The answer to the former has been most influenced by a recent judgement at a court in The Hague, where Royal Dutch Shell is headquartered. The court ruled that Shell’s carbon plans – which calls for a reduction of greenhouse gas emissions to net zero by 2050 and an absolute 20% reduction by 2030 – was insufficient and not in line with the climate change goals of the Paris Agreement. Instead, the court ordered that Shell must reduce its emissions by 45% from 2019 levels by 2030, siding with environmental NGO Friends of the Earth which brought on the case by claiming that Shell was violating human rights with its current plan. Crucially, and unusually, the court applied the verdict to Shell’s entire global operations, spanning multiple jurisdictions, rather than limited to just Dutch holdings. Shell has announced plans to appeal, which could drag the process on for years in higher courts. But on the off-chance that this judgement remains binding, it is perhaps looking for ways to shave off carbon-intensive assets.

Why else would chatter suddenly surface that Shell was considering selling off its collection of prime Permian acreage located in the prolific Delaware basin? After all, just a few months ago in February, Shell announced that it was planning to reshape its upstream business to focus on nine core areas that generated 80% of its revenue – Brazil, Brunei, the Gulf of Mexico, Kazakhstan, Malaysia, Nigeria, Oman, the UK North Sea and, of course, the Permian Basin in the US. Although Shell is not among the largest Permian players, its 260,000 acres are still sizable and its output of some 60,000 b/d ranks Shell among the Permian’s 20 largest producers. Valuations suggest that the sale could fetch as much as US$10 billion, which is a lot of cash that Shell could redirect to clean energy initiatives if the aim is to conform to the court order. Because Shell is not exactly in fire-sale mode; its asset divestment program to hive off non-core assets to pay for its US$53 billion acquisition of BG Group in 2015 was already complete.

To be fair, for all the activity in the Permian, sustained profitability has proven elusive. Not just to Shell, but other major players there as well. The rapid drop-off in well productivity after the first two years means that players have to be constantly drilling and discovering, while a large-scale traditional crude oil field could last for decades after initial production. Shell is also not the only one to consider shedding assets; Chevron and ExxonMobil are also rumoured to be considering divestment as well. And why not? With crude prices at their highest point since late 2018, it is a good time to fetch the best price for oil assets. Most Permian deals in 2021 have closed at between US$7,000 and US$12,000 per acre – already a major increase from 2020 and 2019 – but Shell’s prime 260,000 acres acquired from Chesapeake Energy and Anadarko in 2012 would fetch a major premium, possibly almost as high as US$40,000/acre that would be in line with Pioneer Natural Resources’ acquisition of DoublePoint Energy in April 2021. Any sale would definitely exceed Shell’s initial investment of US$1.9 billion, fetching a tidy profit. Of course, the move would also shrink Shell’s US footprint, limiting it to the Gulf of Mexico (where the Whale field FID is expected soon) and a single oil refinery (Norco), after selling its stake in the Deer Park refining site to Pemex from an unsolicited bid.

If the sale goes through – and it is still a big if at this point – then Shell’s loss will be someone else’s gain. Who would that be? Potential bidders include ConocoPhillips, Devon Energy, Chevron, EOG Resources or even private equity firms that have not been scared off by the potential debt burden of Permian assets. Shell is likely to be looking for an all-cash deal for the entirely of the asset, but is reportedly open to also parcelling up the land into multiple packages. According to sources, a data room with full information on the assets has already been opened.

Looking at the location of Shell’s Permian assets, synergies exist with ConocoPhiliips and Chevron, which both own acreage close to the Shell holdings. Other potential buyers that operate in the Delaware region of the Permian include Occidental and EOG, with Devon Energy being the smallest company that could likely afford a purchase. But Occidental is still busy adjusting after outbidding Chevron in a blockbuster acquisition of Anadarko, which could preclude a purchase by Shell’s partner in its Permian operations. Pioneer Natural Resources might also be excluded as a potential buyer, given that it primarily focuses on the Midland region east of Delaware. But even if the desire is there, there are additional hurdles. Given the immense focus on climate change and the industries that contribute to it, capital is increasingly a challenge, since the financing of fossil fuels is under massive pressure.

Not that those hurdles are insurmountable. The pressures facing a supermajor like Shell – or even ExxonMobil and Chevron – do not necessarily apply in the same measure to other players. If Shell is willing to sell, then there will be plenty of willing buyers vying for the assets. But what is also certain is that recent climate change moves that are ongoing in the boardrooms of energy giants are starting to have very concrete implications and applications on operations. The heat fuelling merger and acquisition activity in the Permian is about to get a lot hotter.

Market Outlook:

  • Crude price trading range: Brent – US$72-74/b, WTI – US$70-72/b
  • Both global crude benchmarks – Brent and WTI – cross the US$70/b threshold, recording the highest level of crude prices since October 2018, as the market focuses on the sustained improvements in fuel demand heading into the crucial summer season in the normal atmosphere that typically boosts road and air travel
  • The outbreak of new Covid variants is still a concern, but the accelerating pace of vaccinations – even in the hardest-hit countries– are providing some reassurance that any current lockdowns will not be prolonged
  • OPEC+ is predicting that oil demand growth will jump by 5 mmb/d in the 2H21 from 1H21 levels, setting the stage for further easing of the OPEC+ supply quotas; Iran’s return to international crude markets is likely to be further afield as talks to revive the 2015 nuclear deal enter into roadblocks

End of Article

Get timely updates about latest developments in oil & gas delivered to your inbox. Join our email list and get your targeted content regularly for free. No alt text provided for this image

Learn more about this course - here


Read more:
WTI West Texas Intermediate Brent USA Storage Shale Permian Cushing Trump Opec
3
2 0

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

Latest NrgBuzz

Making use of commercial timber pellet mill

Today we  will certainly  discuss industrial  timber pellet mill  Most of us know that  contemporary society  promotes the recycling of resources, especially waste wood, sawdust, straw,  and so on. The  timber that  might not be  utilized before can be  refined into sawdust after  squashing  and also processing., sawdust  as well as other raw materials,  advertise the recycling of waste wood,  as well as facilitate our lives.

Related post: wood pellet mill for sale

Sawdust  source has the  features of high calorific value  as well as  reduced emission of  unsafe gas. It can be used as a high-quality biomass  resources for  power  usage, which can  lower the  intake of non-renewable energy such as coal, oil  as well as natural gas.  Currently, the energy  use  techniques of sawdust in my country  generally  consist of:  straight combustion heating, granulation, gasification, liquefaction  as well as carbonization.

Around us, waste wood, branches, waste wood scraps, bark, branches, waste boards, veneers,  furnishings factory scraps,  assorted wood, etc can be  grated into sawdust,  and also biomass pellet fuel is  generated through the industrial  timber pellet mill The finished product has high  burning efficiency and little harm to the  atmosphere, which can be  claimed to kill two birds with one  rock.

Related post: biomass pellet mill for sale

1.  Making use of industrial  timber pellet mill.

The industrial wood pellet mill is a good  gadget that can make sawdust energy. There are  numerous  house  suppliers, which produce a large  quantity of sawdust  each year.  Nevertheless, due to the influence of  standard  manufacturing  techniques  and also living  routines, the  use  price of sawdust is extremely low, and a  substantial amount of sawdust  sources are  disposed of or  blazed, which not  just  creates waste of  sources,  yet  additionally pollutes the air. The use of industrial  timber pellet mills  successfully recycles these resources.

Over the years, Richi Machinery  has actually focused on the research and development, design  and also production of  commercial  timber pellet mills, wood  cutting pellet machines, sawdust pellet  makers, biomass pellet machines, wood pulverizers,  timber pellet  assembly line,  timber processing  tools  and also  various other  items. All  items have passed ISO9001 :2008 The international  high quality  monitoring system  qualification  as well as EU CE  qualification have  gotten to the  worldwide  sophisticated  degree,  as well as the  items  swiftly cover the domestic market and are exported to countries  all over the world.

Related post: fuel pellet plant

Considering that its  facility, Richi Machinery has won the honorary titles of "Advanced  High Quality  Device" and " Top Quality Trustworthy Unit"  each year,  and also has been  identified as a national AAA-level enterprise for  high quality,  track record and service. The  firm  has actually always  stuck to the principle of " top quality first,  online reputation  initially",  according to the tenet of "survive by  top quality,  and also  look for  take advantage of development", exerting its own  benefits  as well as gradually  increasing its scale. In the future, the  industrialized people will make persistent efforts to  establish and develop products that are well  gotten by  residential  and also foreign customers,  as well as  stroll in the forefront of the industry.

2. The development  possibility of industrial wood pellet mill.

Over the last few years, many  nations have  better  enhanced the development of  brand-new  power  as well as the management of environmental  issues. Biomass  commercial wood pellet mills are not only environmentally friendly  and also resource-saving, but also bring us economic value. They have been affirmed by  several  individuals  as well as  buddies, and the market sales are  likewise high.  For that reason, the development prospect of  commercial wood pellet mill can be  claimed to be  extremely  excellent.

Related post: biomass wood pellet plant in Indonesia

In order to meet the  demands of different life  as well as production, industrial wood pellet mills  have actually  likewise been innovated  and also upgraded. These  cutting-edge  technical products are  made use of more and more widely in our lives. It brings us a very safe material for  individuals's livelihood heating  and also living  power. This  gas has a high  usage  price and is  simple to  shop. Especially, it can be  made use of as the  primary  gas type for thermal power generation, which greatly replaces the existing ones.  Different non-renewable  power sources such as raw coal and firewood,  gas  dissolved gas, etc can  successfully save the input of non-renewable fuel.

This  strong  gas that  has actually been crushed  as well as pressed by an industrial wood pellet mill has  outstanding  burning performance. Its  thickness is larger than that of  common fuels, and at the same time, the  launch of various  unsafe gases is reduced. It is a safe, green  as well as environmentally friendly  gas  kind.

Related post: https://www.richipelletmachine.com/wood-pellet-mill-for-sale/

When  individuals have a  complete understanding of the  strong  gas of "biomass pellet fuel",  the marketplace demand for industrial wood pellet mills  as well as  various other mechanical  devices is also  boosting. The advent of industrial  timber pellet mill  has actually  developed  remarkable economic value  and also social  worth.

Now, countries around the world pay more and more  focus to the  security of the environment and the  application of  numerous  power sources. The innovative  study of industrial wood pellet mill has brought us the  efficient use of renewable energy to a  huge extent,  enabling us to obtain convenient, energy-saving, pollution-free  eco-friendly  power, and  likewise bring us  excellent resource maintenance.  Obviously, when we use the biomass  timber pellet mill  maker, we  should  follow the operating  specs  and also its  collection of  needs for material processing  and also  manufacturing, so as to increase its  result as  high as  feasible  as well as prolong its service life.

For details please contact: Richi Machinery
https://www.richipelletmachine.com/
WhatsApp:86 138 3838 9622
Email:[email protected]

August, 03 2022
Seven Tips for Online Learning During COVID-19

It is no secret that the COVID-19 epidemic has forced us all to make significant changes in our lives. Remote work has been an option for businesses; K-12 schools have adopted distance learning as a necessity; many college students, who were previously enrolled in on-campus courses, now have to learn online.

While online learning carries many positive benefits that make it the preferred choice for millions of students, it doesn't come without its challenges--especially for students who are more familiar with in-person courses.

Here are seven tips from Jonathan Small (associate vice president for online learning at Regis College), that will help you to adapt your study habits to fully online learning.

Tips for Online Classes1. Take the time to plan ahead and understand when your assignment is due.

Online students interact with the subject matter and complete assignments via learning management software (LMS). Regis offers online classes through Moodle. Other popular tools include Canvas and Blackboard.

It doesn't matter what LMS you use, it is important that you take the time to familiarize yourself with the interface as well as your assignments. Take a look at the due dates for your assignments so you can create a realistic plan to complete them.

Small says that online classes are often structured in modular formats, which is different from face-to-face classes. You don't always have the physical reminder that your work is due in class. Online classes can be very busy, so students must organize their time.

2. Make sure you have enough time to study.

Many students at Regis and other universities pursue their education while also fulfilling other obligations. You have to balance work, childcare, family obligations, and internships.

Small says, "Chunking tasks is a great way for students to feel accomplished." You feel like you are making progress. You can also schedule a time to study, which will help you establish and maintain a routine.

3. Regular communication is essential for group projects.

Many college courses include group projects and assignments that you must compete with others in the class. This is true for both online and in-person courses. Small says that while in-person courses allow for group projects and bring people together face to face, online students must be careful about communicating effectively.

Groups must prioritize communication, regardless of whether it's via Zoom, email or phone call, instant messaging, shared documents, or any other form altogether.

Small says, "Find a system which works for everyone in your group and then follow up often."

4. Split up work groups early.

It is important that groups are able to properly divide tasks so that everyone has a fair share and everyone knows exactly what they have to do.

Small advises that group projects should be planned far in advance so that everyone can share the work and coordinate their efforts. This way, even if something isn’t due for a few more weeks, everyone has the opportunity to use their time and work on their tasks as they can.

5. Keep in touch with your professor frequently.

As important as it is to communicate with your classmates and group members, it's equally important that you communicate with your instructor or professor. Whether you need help with an assignment, or simply want to share your struggles with them, make the effort to contact your professor.

Small says that talking to your instructor is key to success. Small says that you don't have to struggle with your questions and concerns alone. The professor can help. Talking to your instructor for five minutes can help you save days of stress. You will feel better, get more clarity, and be more successful.

You don't have to communicate only when things are going wrong. You can build a rapport with your instructor by letting them know when things are going well.

6. Participate as often as you can

Participation is key to your success, no matter if you are taking classes online or in person. Active participation not only shows your professor you are engaged but also shows you are learning and willing to do the work required to succeed. Participation transforms education from a passive process to one that is active.

Small says that the more you take part as a student the better your experience will be.

7. Flexibility is key.

Flexibility is key to online learning, both for you and your fellow students--and even your professors.

Small says, "Remember that your instructors had only to switch to remote teaching within a weekend. That's the same time it took to transition to online learning."

"This happened by accident. It's possible to restore the campus community by simply being compassionate, active in your course material, and talking to your instructors. This will make the transition smoother.

Put in the Work

Online learning might not be your first choice. However, the tips and advice above will help you make the most of your online courses. Clear and open communication with your classmates and instructors, as well as staying focused on the course material, will be key to your success in this difficult time.

Related article from studentjob.co.uk : http://www.studentjob.co.uk/blog/5757-best-online-exam-help-top-five-websites-you-can-trust 

Related Resources:

Are Online Classes Worth It? 12 Pros & Cons Of Online Learning

Tips to Be Successful in Your Online Classes In 2022

5 Reasons Why Online Learning is the Future of Education

The Impact of Online Classes on Students


August, 02 2022
What is a Satire Essay and How Does It Work?

One of the most popular literary devices or genres is Satire. This genre is especially designed to criticize someone or group of people for their vices, wrongdoings, or shortcomings.


Usually, humor is used to highlight important political and cultural issues in a society. A satire article is a type essay that uses humor, sarcasm, and irony to ridicule a person, situation, or ideology. It pokes fun in an elite and sarcastic fashion at certain people or situations.


How to Write Satire Essays: Writing Tips

How do you write a satire article? It doesn't have to be difficult, even though it seems daunting. However, once you use the following tips, it can be an easy task to write a satire article.


Choose a relevant and original topic

This is why you will need to create a satire essay. Your first step is to pick a satirical essay topic. You may be assigned a topic by your professor or teacher in some instances, but you would need to create your topic.


Decide the topic of your essay. Depending on what you are interested in, you can choose to concentrate on either a political or societal situation.


However, it's a good idea to choose a topic you are already familiar with. This will make it easier to locate facts and evidence to support the views you hold.


Consider your audience

Your essay is the center of attention. You must consider your audience at every stage of the writing process. Your essay should be addressed to college professors or high school students.


Are professionals reading it or are you just a student? It is important to consider your audience and determine the right tone for your essay.


A casual tone is acceptable if your target audience is mostly friends and students. It's best to use a formal tone if your target audience is professionals.


Add humor!

What makes a humorous essay so engaging? It is the topic, or the writer's writing style that makes satire essays so interesting. Humor is the key ingredient to any satire essay. You want your audience to laugh at the absurdity or inanity of a person or situation. Irony, sarcasm or hyperbole are all great ways to accomplish this end.


These devices can be very effective if used in a thoughtful manner.


Be clear about the facts

Because satirical essays often use exaggeration and humor, it is crucial to write an essay that is straightforward. An essay that contains false or misleading information will not be accepted by the court of public opinion.


Therefore, facts should only be stated that are supported by strong evidence. If you want to give credibility, be sure to cite the source of your information after citing figures, theories, opinions, etc.


This would ensure your audience that your essay was credible. Avoid including arguments that you are unable to prove or find evidence.


Use the ELP Format

ELP format is a great tool to ensure that your satire essay will be professional and high-quality. ELP is an acronym that stands for ethos, logos, and pathos.


These three elements make up a large part of an essay and can either help or hinder your work. These elements are important and can be used in your essay.


Ethos informs readers about the topic at hand and their preexisting beliefs. To provide a foundation for readers, Ethos should be used as a tool in the introduction.


Logos give credibility to your work by providing facts and figures for the audience.


As the name implies, pathos will elicit the appropriate emotions and feelings from your audience. You can use this tool to invoke sadness, sympathy, anger or any other emotion.


Be tolerant

It is important to avoid making offensive statements in satire essays, even though they are often filled with irony or sarcasm.


Your audience will likely include people from all walks of life. Therefore, it is important not to make comments that could be considered discriminatory or offensive for a particular section.


The art of discerning the right line between humor and offensiveness is delicate and requires practice. You can ask teachers or colleagues to give you second opinions so that your essay doesn't offend.

Learn more at: https://proessays.net/blog/40-witty-topics-for-a-satirical-essay


July, 25 2022