Petroleum Economist
Licensing round April update
The industry's most comprehensive list of current and recent rounds for onshore and offshore licences
Carbon border tariffs—the shape of things to come
The EU is very likely to push ahead with creating a carbon border adjustment mechanism, as soon as compliance with WTO rules can be assured
Carbon border tariffs—the shape of things to come (1)
The EU is very likely to push ahead with creating a carbon border adjustment mechanism, as soon as compliance with WTO rules can be assured
A new approach to coordinating offshore electricity grids
Sustained increases in UK and EU offshore wind power generation mean that making changes to regulation and infrastructure has become a priority
A new approach to coordinating offshore electricity grids (1)
Sustained increases in UK and EU offshore wind power generation mean that making changes to regulation and infrastructure has become a priority
Harbour Energy looks further afield
The Chrysaor-Premier combination starts trading in London. But it is keen to expand its horizons
Everyone has a role to play in achieving net zero
Contributions will be required from many sources—from people taking individual responsibility to the creation of economy-wide partnerships—if we are to achieve a sub-2°C outcome
April 2021
The April 2021 issue of Petroleum Economist is out now!
EU ETS emissions fall 12.6pc in 2020—official data
Record fall in verified emissions of participating installations was largely in line with expectations
Saudi-German team takes aim at green cracking
Petrochems titans are working together to electrify a carbon-intensive core process
Opec+ confounds market with three-month cuts easing
The group had been widely anticipated to keep the prior agreement in place, but a rapidly agreed deal will see cuts relaxed through the summer
LNG steps out of Qatar’s shadows
Investment in LNG liquefaction capacity got off to a flying start in 2021 with the North Field East expansion project. How much more can we expect?
Suez crisis highlights bottlenecks
The blockage of the Suez Canal by a single vessel highlights how important navigational chokepoints are for the shipping sector and commodities markets
Leading asset managers join forces to raise bar on net-zero
Net Zero Asset Managers Initiative signatories doubled in March to use £16.56tn combined AuM to tackle climate change
US embarks on a new kind of industrial policy
Washington reinvents strategy with focus on microchip production and charging stations, rather than traditional ‘roads and bridges’
Concerns grow ahead of UK carbon market launch
The UK is set to start its equivalent of the EU ETS on 19 May, but it may take some time for market participants to adjust
Letter from the US: offshore gets that sinking feeling
Low-carbon ambitions could jeopardise national energy security if drilling moratorium proves permanent
Occidental to utilise carbon dioxide in bioethylene plant
US oil and gas firm to expand partnership with Cemvita Factory to commercialise process
Mozambique coal exits could do more harm than good
Vale has committed to becoming carbon neutral by 2050—but selling its coal assets to a smaller operator could end up adding to environmental damage
US carbon price still some way off
Political reality means moves towards establishing a carbon price or a cap-and-trade system will at least have to wait until after mid-term elections
New LNG markets prove tough nuts to crack
Floating storage and regasification has reduced entry barriers for aspiring LNG importers. But opening up a new market remains a tricky business
Ancala sees Northern North Sea positives
The private equity-backed midstream specialist is bullish about the prospects in its Sage pipeline system catchment area
UK carbon intensity drops to new low
Sunny and windy conditions combined with low demand over Easter reduced the need for fossil fuels in the energy mix
Riyadh moves for regional green leadership
Elements of Saudi Arabia’s domestic strategy and sudden assertion of leadership stretch credibility, but its plans are indicative of a reluctant embrace of global trends
DNV establishes guidelines for CCUS pipelines
Standards will help with the construction of new infrastructure and repurposing of old pipelines
Winter LNG transit highlights Arctic’s growing role
Russia is leading the charge to normalise Arctic shipping as the region warms
Poland pivots towards more non-Russian crude
As in gas, the former Communist country is wary of dependence on its heavyweight eastern neighbour
US gears up for ‘big transmission’
Good technology and better policies are set to bring clean power from America’s remote regions to city centres
Ithaca sanctions Captain EOR 2 development
The UK independent presses go on its largest portfolio project after issuing M&A price warning
Egypt LNG restart optimism no substitute for gas strategy
The high-profile restart of the Damietta facility has ramped up rhetoric and expectations. But it may not be as simple as that
Timor-Leste looks to LNG imports
The Southeast Asian nation plans to convert three power plants to run on gas
Petrobras refinery sale in limbo
Downstream divestment programme at risk as federal office scrutinises auction
Hope for negotiated US infrastructure deal
Ruling by parliamentarian means Biden plan could be passed by a reconciliation bill if needed
Kuwait aims for investment reset
NOC reflates its spending and projects grind forward. But no-one should expect miracles
US energy storage could get tax credits
Industry hopes Biden administration will put in place a standalone tax credit for grid storage
Russian reforms drive refining change
Tax changes to incentivise refinery upgraders are bearing fruit
Lake Albert oil project and pipeline get go-ahead
The development will see Ugandan crude exported from the Tanzanian port of Tanga
African countries must benefit from transition
Renewables expertise must be improved on continent for economies to gain, says panel
Europe wind investment surges 70pc
Calls to ease bottlenecks as capacity growth lags EU climate goals
Lithium miners explore all options as battery demand pulls away
Recycling may offer a third way as global lithium industry struggles to ramp up supply to feed growth of electric vehicles
Oil and gas firms look to big data to meet carbon challenge
Sharing data will help firms integrate solar, wind and gas offerings
Saudi Arabia celebrates moment in the sun
Belated progress on a plethora of renewables schemes signals newfound political will behind clean energy development
Oil prices to crash in 2°C world – Wood Mackenzie
Mass electrification of the transport sector will lead to dramatically falling levels of oil demand
Shell submits net-zero plan to shareholders
Decarbonisation targets are linked to the remuneration of Shell employees
Ecuador’s oil sector buoyed by new president
Former businessman has ambitious plans for domestic crude production but faces significant financial, political and ESG constraints
The big choices for oil and gas in navigating the energy transition
As oil and gas companies respond to the current economic discontinuities, they must choose how to compete as the world transitions to a low-carbon future
Carnarvon gears up for Buffalo drilling
Firm will drill first well offshore Timor-Leste in the second half of this year
Offloading assets drives US deal-making
An accelerating vaccine rollout and robust oil prices encourage consolidation across marginal plays
Serica remains circumspect on UKCS M&A
The North Sea independent is still determined not to overpay for assets
CCUS needs better credit rating visibility
Assessments of firm’s ESG performance does not adequately take into account key technology, says panel
US wind PPA prices under pressure
Prices fall in the wake of a tax credit extension but are still up more than 10pc year on year
Northland invests $1bn in Spanish renewables
Canadian company sees Spain as base for European expansion
Ecuador’s new president faces growing ESG challenges
International lenders distance themselves from Amazonian oil sector under pressure from climate campaigners
Banks put financed emissions under greater scrutiny
Carbon accounting initiative grows amid pressure on institutions to report emissions from investment portfolios
US emissions falls are part of wider trend
Emissions may not bounce back to levels seen before the Covid-19 pandemic
Leading futurist sets out vision for the transition
Transition Economist talks to Bank of America’s Haim Israel about how the world can achieve net zero by 2050—and how the associated ‘megatrends’ will shape society and the global economy
Further delays likely for Mozambique LNG
A fresh assault on Palma will at the very least slow planned liquefaction developments
Iraq’s upstream shows signs of life
Baghdad is once again looking towards much higher long-term capacity goals
Namibia's upstream defies downturn
Large-scale, deepwater prospects continue to draw deep-pocketed investors
Gulf of Mexico set to gather momentum
Buoyed by stronger oil prices and demand recovery, the region has plenty of projects on the roster
Generating value through digital transformation
Oil and gas firms must consider several factors when addressing digital maturity
Latin America pivots to digital
The pandemic has showcased the importance of reaching digital maturity, and state oil companies are taking notice
US gasoline demand unthreatened by driver assistance
New technologies that provide assistance for drivers have proved slow to penetrate the US market
Data clarity key to successful business strategy
Digitalisation gives oil and gas operators unmatched access to actionable data insights, eliminating previous operational ‘unknowns’
Data clarity key to successful business strategy (1)
Digitalisation gives oil and gas operators unmatched access to actionable data insights, eliminating previous operational ‘unknowns’
Gain granular control with engineering data in the cloud
Embracing technological agility is crucial for organisations to move at scale, work remotely and make better-informed operational decisions
Gain granular control with engineering data in the cloud (1)
Embracing technological agility is crucial for organisations to move at scale, work remotely and make better-informed operational decisions
Global emissions to rebound in 2021 – IEA
Emerging markets are driving energy demand back to 2019 levels, with coal offsetting renewables growth
Equinor puts transition plan to shareholders
Firm aims to make global operations carbon-neutral by 2030
York completes sub-terminal switch
The North Sea field extends its lifespan through a flip to alternative processing facilities believed to be a UK industry first
Gabon’s E&P sector stays active
The west African nation continues to attract upstream investment despite the global contraction in activity
European power trading innovation: Data begets more data
Historic and real-time fundamentals are not the only information show in town, says software provider Kyos
Sonangol exits Trafigura’s Puma
The NOC will sell its stake in Puma Energy in return for the firm’s Angolan assets
EU looks to strengthen Emissions Trading System
Scheme will undergo further reforms this summer as part of increased EU ambition to reach net zero by 2050
US must clarify renewable transport fuel support
Policy mechanisms at federal level must catch up with those at state level to be effective, says industry
Earth Day summit a step towards restoring US climate credibility
Gathering is an important opportunity to signal US commitment and resolve to sceptical leaders
My hope for Earth Day is to ‘humanise’ energy
Affordability, energy justice and societal acceptability matters are moving up the political agenda
Australian gas market poised for ‘transformation’
Timely delivery of new projects will be vital to avoid shortfalls, AEMO says
Protests compound Argentina’s gas woes
Efforts to raise Vaca Muerta production face financial and strike action hurdles
Every little counts when cutting emissions
Incremental savings in emissions across the supply chain and in operations add up to significant environmental gains for oil and gas companies
US Department of the Interior language bodes ill for lease sales
Any hope the Biden administration might seek a compromise on federal land drilling ban looks increasingly forlorn
Papua New Guinea risks LNG ambitions
The county’s negotiating tactics are damaging its reputation among developers
German industry criticises gas omission from EU green taxonomy
Uncertainty over green status of natural gas in the EU could hamper investment
Taxing for takeoff: The hydrogen economy in the US
Lobbying season is underway for on Joe Biden's $2tn jobs plan, with a number of potential tax incentives for hydrogen on the table
Taxing for takeoff: The hydrogen economy in the US (1)
Lobbying season is underway for on Joe Biden's $2tn jobs plan, with a number of potential tax incentives for hydrogen on the table
Dubai nears floating solar debut
Both the emirate and neighbouring Abu Dhabi are considering the potential of the novel technology
Jordan back on the blocks
Amman rolls out some old favourites as it hopes to finally gain upstream traction
Ofse results emphasise US shale recovery
North American quarterly performance reflects returning production and gives reason for optimism
China’s carbon trading offers little gas-to-power help
Generation from the cleanest fossil fuel looks set to struggle to expand in China despite the start of carbon trading
European power trading innovation: The imperfection of data
While transparency and data provision have made huge strides, there are still information gaps and quality problems, warns the founder of UK power analysis firm Catalyst Commodities
Wind and solar approach critical deployment level
As technologies approach milestone, they could scale even faster
Biden’s net-zero power play
US sets out bold new emissions commitments ahead of Cop26
Letter from Amsterdam: Europe’s IOCs first out of the blocks
As investor sentiment shifts, companies that align with the transition have a significant competitive edge
Europe’s IOCs first out of the blocks
As investor sentiment shifts, companies that align with the transition have a significant competitive edge
Huge global electrification plan needed for net zero – ETC
World will need $2tn/yr to electrify new sectors, develop demand-side response and upgrade grids
EU net-zero target will help industry transition
Clarity on targets and supportive regulations will help set a clear roadmap for industry to decarbonise
BP and Shell prepare for the worst
The UK-headquartered majors are pursuing strategies that assume the future plays out least favourably for hydrocarbons
Double trouble for West African upstream
Corporate carbon goals and local regulatory regimes will determine whether the region’s deepwater sector can attract renewed interest from investors
European power trading innovation: Taking the short term to the long
The rise of renewables has revolutionised short-term trading. But that will have a feedback loop to the longer-term market
Letter from China: Coal phase-out raises energy security risk
Coal’s long goodbye means Beijing will need to brace for reduced energy security
Turner sets roadmap for decarbonisation
Former chair of UK Climate Change Committee lays out recommendations for reaching net zero
BP powers up EV charging roll-out
Questions over company’s ability to differentiate its electrons in a competitive market
China boosts energy storage as renewables expand
Policymakers bet on dramatic fall in cost of storage batteries this decade
BP and Shell prepare for the worst (1)
The UK-headquartered majors are pursuing strategies that assume the future plays out least favourably for hydrocarbons
US oil sector champions methane controls
Biden administration hopes to fast-track emission restrictions, a popular measure among many large-cap operators
US oil sector champions methane controls (1)
Biden administration hopes to fast-track emission restrictions, a popular measure among many large-cap operators
EV sales unaffected by pandemic – IEA
Sales in the sector are growing fast thanks to strong consumer demand and policy support from governments
Grid-scale battery storage set for strong growth
US leads the way but China emerges as fastest-growing market by 2030
Equinor earns $1.4bn from offshore wind equity sales
Norwegian firms makes progress on electrification of offshore operations and Norwegian CCS project
European power trading innovation: The rush to intra-day
The profits to be made from optimising a portfolio on a close-to-real-time basis have driven a significant shift in the market
Mexico compromises energy reforms
Investor uncertainty mounts as approved legislation threatens to return energy sector to state control
Clock ticks on Algeria
Time to ponder the value of its hydrocarbons is a luxury the North African state may no longer have
Iran deal faces many hurdles
A purported leak is just the latest potential obstacle to Washington-Tehran rapprochement
Heavy oil joins the UKCS M&A party
Even carbon-intensive production is being swept up in the rush of North Sea deals
Leaders emerge in US race to FID
Projects face tough global competition for funding, but some lead the pack
Arctic LNG 2 inks long-term contracts
Russia's Artic LNG 2 project continues to advance, with the signing of long-term sales and purchase agreements (SPAs) for the entirety of LNG production
Europe IOCs claim early progress in push for low carbon
Both Repsol and Total will funnel 25pc of 2021 investments towards low carbon ventures
2021 LNG Power Play awards open for nominations
The third edition of ExxonMobil’s signature Power Play awards has been launched—this year with more awards categories and an even more diverse panel of international judges
2021 LNG Power Play awards open for nominations (1)
The third edition of ExxonMobil’s signature Power Play awards has been launched—this year with more awards categories and an even more diverse panel of international judges