Petroleum Economist
Rising oil prices help IOCs transition
Oil companies will have more cash available to invest in alternative energy, but high-target valuations mean M&A may be minimal
Supersize offshore wind buildout stymied by lack of vessels
Ships suitable for transporting the new generation of huge wind turbines are in short supply, but oil & gas EPC contractors are being attracted to the market
UN carbon market stuck in legal limbo
Following the postponement of Cop26, offset developers and investors must wait many months for uncertainty to be resolved
Australia’s gas-led recovery dream faces supply wake-up
Canberra’s flagship post-Covid energy policy faces headwinds from a looming supply shortfall
Guyana packs a punch for ExxonMobil
Achieving early production at the Liza project is only the first step in the US major’s ambitious strategy
March 2021
The March 2021 issue of Petroleum Economist is out now!
Licensing round March update
The industry's most comprehensive list of current and recent rounds for onshore and offshore licences
Iran hits crude comeback trail
Crude production has started to creep up in recent months, but much still hinges on the relaxation of US sanctions
BP and AWS tie-up shows value in transition partnerships–CeraWeek
BP supplies Amazon Web Services with renewable energy, with cloud services provided in the other direction
Book Review: Interviews add depth to commodity trading history
Protagonists in a world almost routinely described as ‘murky’ have proven remarkably open to shedding light on the industry’s less illuminated corners
Green light for road pricing could put brakes on US fuel demand
Washington may finally tip petrol demand into decline if it starts to back state-led policies
Australia's LNG projects regain momentum
The country’s liquefaction sector is trying to rebound from a challenging 12 months where billions of dollars’ worth of feedstock projects went on the back burner
Increased efficiency keeps Wintershall Dea in the black
The German producer is focused on high-graded production, including from its Dutch assets
Multiple business models key to CCS by 2030–CeraWeek
The emergence of diverse sequestration technologies, supported by incentives such as the US 45Q tax credits, will be essential to widespread adoption
Oil set for sweet-sour rebalancing
The unusual premiums sour grades have enjoyed over sweet may be coming to an end
Pressure mounts on US and China to present climate plans
NGOs and business groups unite on need for action from the world’s two biggest economies ahead of Cop26 in Glasgow
US wind and solar return to rapid growth
After a period of relative stagnation, wind and solar generation are set to continue their recent renaissance
Petrobras bucks the trend
The company’s pre-salt portfolio helped offset last year’s economic crisis, but investors will still be nervous about potential downstream interference
Climate variation fuelling developing nation security risks
In a range of security and humanitarian contexts, changes to local conditions are multiplying risks and producing contagion effects
Policy measures key to US net-zero goal
The new administration has set lofty low-carbon ambitions but must take radical action to overhaul the nation’s energy mix
Mark Carney: Offset market is not functioning—CeraWeek
Former BoE governor says ‘tiny’ offset market could play more influential role
Acore: World is moving to the ‘serious stage’ of fighting emissions
CEO Gregory Wetstone talks to Transition Economist
Neptune sees Dutch North Sea potential
The province may be mature, but still has elements to attract investment and shake off PR problems
Wintershall Dea sets tough decarbonisation targets
The gas-focused German producer has challenging ambitions on both CO2 and CH4
Latin America plays catch-up
The pandemic wreaked havoc on NOC balance sheets in 2020, but the region still has some competitive advantages
Policy measures key to US net-zero goal—CeraWeek
The new administration has set lofty low-carbon ambitions but must take radical action to overhaul the nation’s energy mix
Gulf of Guinea piracy worsens
Maritime regulators and the shipping industry issue warnings over escalating frequency, severity and range of pirate attacks
More Chinese firms enter global LNG market
Niche buyers in China are starting to make waves in the global LNG market, spurred by reforms that have opened up the country’s vast pipeline network
India makes progress on gas transition
Falling gas prices could help India to reduce its reliance on coal, while it gradually roll outs 450GW of renewables by 2030
Design of carbon markets is critical to success—CeraWeek
While a global carbon price would be ideal, political reality means a regional and sectoral approach will be needed to make short- to medium-term progress
The great run of US natural gas faces storage challenge
Further growth in the consumption of natural gas will need to overcome the trend for renewables paired with power grid storage
Engie biogas breakthrough set for commercialisation
Solid recovered fuel, which would otherwise end up in landfill, will be converted into biogas and industrial heat from 2026
Letter from Canada: Alberta’s debt quagmire
The province’s strategy of stimulating economic diversification through oil revenue largesse has largely proved a failure
IEA calls on Japan to clarify gas goals
Gas companies need greater certainty about the fuel’s long-term outlook
Climeworks and Northern Lights explore direct air capture project
Companies have agreed to investigate building full-chain CO2 removal and storage in Norway
Colombia kickstarts bidding round
Latin American producer expands acreage offer nationwide to capitalise on its upstream potential before time runs out
UK North Sea consolidation gathers pace
Two more deals see focused new entrants gain size as sellers exit
Chinese five-year plan to see expansion of EVs
Plan will focus on uptake beyond the largest and wealthiest cities, so consumption of petrol and diesel may peak mid-decade
US shale presses the reset button
Upstream producers stress permanent financial change even as those with the greatest acreage and deepest pockets begin to stir
Dated Brent goes Cif —ten key questions
Petroleum Economist asks Adi Imsirovic, former head of crude trading at Gazprom Marketing & Trading, about the major issues thrown up by Platts’ proposed change
Blockchain holds the answer to transition challenges
Shell’s blockchain lead Sabine Brink speaks to Transition Economist about how distributed ledger technologies can facilitate the energy transition
Ghana prepares for LNG imports
Robert Besseling, CEO of specialist intelligence company Pangea-Risk, explains why Ghana is about to start importing LNG despite having oil and gas reserves of its own
Taking the lid off digital transformation
Combining digitalisation with valuable real-time data helps businesses drive operational performance and counter stiff market competition
Taking the lid off digital transformation (1)
Combining digitalisation with valuable real-time data helps businesses drive operational performance and counter stiff market competition
China’s Five-Year Plan and ETS to see CO<sub>2</sub> rising till 2030
Concentration on reducing carbon intensity means total emissions are likely to continue to increase
Nuclear growth is set for further decay
The speed at which solar and wind projects can be completed means they will soon exceed nuclear plants in the global power mix
Rebrand accelerates Channoil Energy into net-zero era
New name reflects a sharpened commitment to the energy transition—and the simultaneous launch of net-zero division takes things a step further. Net-Zero-Solution lead Vincent Couffon talks to Transition Economist as the consultancy embarks on its new strategy
Pemex treading a tightrope
Mexican producer must weigh ambitious upstream strategy with rapidly rising debt
Troubled Tullow mulls Kenya options
The future of the Anglo-Irish independent’s Kenyan assets hangs in the balance as it puts its money on Ghana
UK investors welcome new infrastructure bank
The chancellor’s plan to create a new British infrastructure bank has been warmly welcomed—but how will this influence the UK's energy transition journey?
Neptune targets four projects under Norway’s enhanced tax regime
The London-headquartered producer hopes to fast-track FIDs to hit the 2022 deadline for relief
UAE embraces waste-to-energy
Aspirations to mitigate the federation’s throwaway culture are belatedly being turned into reality
Canadian oil sands in shackles
Producers tighten their belts even as financial conditions rally and midstream expansion looms
EU border carbon tariff set for long battle
Industry is pushing for carbon tax on imports while enjoying free allocations
North Sea transition set to boost growth and jobs
Jobs in hydrogen, wind and CCS can offset decline in oil and gas sector
US and Canada plot road to carbon border adjustments
The imposition of carbon tariffs is legitimate for tackling environmental concerns but risks initiating a slippery slope towards global trade protectionism, experts warn
Investors turn to sustainability-linked bonds
Institutional investors are looking beyond green bonds due to concerns about greenwashing
Europe’s refiners set for more pain
While the end of lockdowns may offer some respite, further consolidation looks inevitable
US offshore wind reaps tech boost after delay
‘Designing with uncertainty’ concept has worked out to the advantage of east coast projects
Japanese firms back carbon-neutral LNG
The buyers' group will promote use of the fuel to meet Japan’s decarbonisation goals
Pandemic casts shadow on US midstream
Lack of demand and permitting uncertainty paints gloomy picture for pipeline firms
Chevron puts Permian at heart of its net-zero strategy
Robust FCF and driving down emissions in the shale patch are central planks in the US major’s journey towards low-carbon energy
Chevron puts Permian at heart of its net-zero strategy (1)
Robust FCF and driving down emissions in the shale patch are central planks in the US major’s journey towards low-carbon energy
Pakistan energy demand attracts suitors
Significant forecast growth in energy requirements means international firms are interested in the country’s downstream sector, but its upstream is struggling
China turns to nuclear for 2030 pledge
Reliance on coal will use up the national carbon budget, so nuclear will be needed to start reducing overall emissions
Lula return casts a cloud for Petrobras
Court case vindication could open the door to next year’s election, with implications for the NOC and wider energy reforms
Speculators discover EU ETS—and like what they see
Brushing aside debatable ethical considerations, traders have been pushing the world’s largest carbon market to record highs
WEC calls to ‘humanise’ global energy system
World Energy Council report finds that energy leaders’ perceptions of risk and strategic priorities have changed
Future looks bright for US solar
Solar PV again made the greatest contribution to new capacity last year, and the probable extension of policy incentives will help the sector thrive
UK splits £171mn across nine CCS and hydrogen projects
UKRI competition is latest stage of mission to create first net-zero industrial cluster by 2040
Carbon capture to play key role in Mol strategy
The Hungarian oil and gas firm aims to build a business on the back of not only its own carbon emissions, but also those of third parties
Australia extends Beetaloo exploration grant period
The government will provide the cash to explorers for a further six months
Delek boosts Israeli gas exports
Leviathan startup, combined with flows to Egypt and Jordan, shows a material bottom-line impact
Task force faces huge task to legitimise VCM
Private sector faces tough goal of bringing together stakeholders to give structure to the voluntary carbon market
Irena’s pathway to Paris a Herculean task
Renewables agency has produced preliminary figures for the scale of investment required to hit 1.5°C Paris target
Tullow back to square one in Suriname
Latin American exploration campaign stutters as producer continues search for major offshore oil find
Transition pioneer leads by example
Baker Hughes was one of the first companies with substantial exposure to oil and gas to get serious about tackling its carbon footprint. Allyson Anderson Book speaks to Transition Economist about the progress made so far and the challenges that lie in its future
Mol’s upstream positions for the long term
The oil and gas division wants a role beyond just providing cash for the group to pivot to lower-carbon alternatives
Oil and gas services firms pivot to renewables
Companies respond to safeguard their businesses following the outperformance of renewables during the pandemic
New Zealand’s revamped carbon market starts trading
Enhanced system covers half of the country’s emissions to support its climate ambitions
You will never guess who just declared peak gasoline…
The IEA has called the top of global demand, although it predicts demand for oil will continue to rise
Overseas oil and gas financing bans may herald sector crisis in emerging markets
Western governments are following the UK’s lead in ending ECA finance for fossil fuels overseas, leaving China as the main source of capital
India’s import opportunity trumps its upstream
International firms still see targeting India’s downstream demand as significantly more attractive than investing in its production, despite recent government reforms and efforts at promotion.
IPO highlights investors’ US shale hesitancy
Vine Energy’s financing efforts reveal lingering public market doubts despite healthy prospects for gas
China’s NOCs look to the future
The three state-controlled heavyweights are gearing up to announce 2020 earnings, with attention focused on addressing near-term challenges and opportunities
Opportunity knocks for collaboration increase
Oil and gas can improve its economics and decarbonise its value chain—and achieve those wins quickly—through changing its working practices
Investment opportunities abound in renewables infrastructure
Pension funds are seeking to invest more in clean energy infrastructure, and governments are keen to redress underinvestment
Permian leads the shale charge
Output is creeping up in the US but still faces a tough task in rebounding to pre-Covid levels
EV supply chains: The new great game
Volkswagen’s aggressive battery plans signal new worries for automakers in the EV era
Aramco rolls with the Covid punches
The Saudi heavyweight posts an eye-watering drop in profits but pays its dividends and remains in the black
Climate change impacting insurability of renewables
Transition Economist talks to Andrew Slevin, CEO of John Foord, about the challenge of insuring renewable energy assets amid extreme weather
Philippine LNG sector picks up speed
As much as 10.5mn t/yr of regasification capacity could be coming online in 2022
UK GBA ticks Lundin boxes
The Swedish-headquartered producer says it is comfortable sticking with Norway. But could JOG’s farm-out process attract it over the median line?
UKCS licensing set to continue
The country’s North Sea Transition Deal will apply new conditions to future drilling permits but allow oil and gas activity to proceed
Algeria has ‘excellent chance’ to capitalise on transition
Massive solar potential and rapid PV rollout plan puts north African country in prime position for international clean energy deals
Cnooc looks to South China Sea
The NOC’s delisting from the NYSE may only serve to embolden its South China Sea drilling despite lingering controversy surrounding projects in the region
Canada’s massive hydro potential to remain elusive
Despite its southern neighbour seeking new sources of low-carbon power, further expansion of Canadian hydropower is unlikely to be competitive
Investors unimpressed by carbon offsets
Asset managers and institutional investors are looking past largely unregulated means of reducing emissions to companies implementing science-based targets
Banks call for global rules on climate risk
Common standards would help banks to factor climate risk into assessments and finance decarbonisation
IEA cries wolf again
The agency may be overestimating demand and lowballing Opec supply to foresee a tighter market than will materialise
Nigeria promises state-owned refinery progress
The country has set out an ambitious timeline to refurbish its long-neglected Port Harcourt refineries
Siemens Energy turns strategy into reality
Head of industrial applications business writes about the transformational journey the pure-play energy company has been on since it became independent last year
Oil firms insist fossil fuels have a role in the transition
Pivot from oil to gas and development of CCS will form initial part of firms’ decarbonisation strategies
UK to support North Sea oil and gas transition
State and industry to co-invest up to £16bn in developing hydrogen, CCUS and offshore electrification
Startup aims to bring transparency to carbon offsets
Viridios has developed artificial intelligence to enhance price discovery and help match companies with offsets that have suitable characteristics
Deals still to be done in US shale patch
Operators including majors have snapped up nearby acreage to leverage synergies at lower cost. But with oil prices higher and discounts potentially fading, will prolific spending slacken?
Letter from China: Five-Year Plan puts energy over decarbonisation
China’s reluctance to ease back on fossil fuels highlights the contrasting narratives of energy security and decarbonisation
UAE’s Taqa embraces transition with portfolio shake-up
The Emirati utility has committed to a transition strategy that will reduce its reliance on oil and gas for power generation
Is the Middle East the key to Japan’s ‘hydrogen society’?
Without the ability to generate low-carbon hydrogen for the foreseeable future, the Asian nation needs a strategic partner to turn its ambitious plans into reality
Is the Middle East the key to Japan’s ‘hydrogen society’? (1)
Without the ability to generate low-carbon hydrogen for the foreseeable future, the Asian nation needs a strategic partner to turn its ambitious plans into reality
Biden seeks to address weak infrastructure track record
US faces deep investment hole built over decades, and a lack of skill to address it
Investors take harder line on scope three
ESG asset managers have focused mostly on scope one and two greenhouse emissions but are increasingly scrutinising companies on the more challenging scope three data
Australia aims to slash decommissioning bill
A government-funded company has launched an initiative intended to save more than $14bn in decommissioning costs over the next few decades
LNG’s buoyant brave new world
The industry’s big players remain optimistic despite the headwinds of the last two years
Industry must lead way on UK jobs transition
Firms are better placed than the government to know what skills will be needed in a low-carbon economy, says UK Onward
Letter from the Middle East: UAE unveils Murban benchmark
Pivot towards Asia paves the way for a new crude futures contract, offering an attractive alternative to long-established grades
Poland and Bosnia-Herzegovina ramp up renewables
Eastern European countries are racing to build capacity to wean themselves off coal and hydropower respectively
Shipping faces tough decarbonisation choices
Supply chains will be critical as the maritime sector looks for alternative fuels
Shipping faces tough decarbonisation choices (1)
Supply chains will be critical as the maritime sector looks for alternative fuels
Basrah Medium gets off to a promising start
Iraq’s new crude grade has had a relatively successful first few months. But Basrah Light issuers remain unresolved
Friendship deal buoys fresh Caspian hopes
Having settled a 30-year field demarcation dispute with Turkmenistan, Azerbaijan is cheerleading for a second phase of the Southern Gas Corridor
LNG trade trends defy assumed truths
The inexorable rise of spot trading may be losing momentum as the market finds new ways to balance
Rethinking the levelised cost of energy
The market appears to be factoring in the decline of capacity factors for conventional energy assets
Decarbonising LNG: the heat is on
When the largest buyer in the largest consuming country commits to net-zero emissions by 2050, suppliers must start to respond. And they are
Decarbonising LNG: the heat is on (1)
When the largest buyer in the largest consuming country commits to net-zero emissions by 2050, suppliers must start to respond. And they are
Cop26 head calls for ‘immediate action’ on international collaboration
Alok Sharma says not enough is being done and world is on track to 3°C ‘apocalyptic future’
Aggregation holds key for UKCS offshore electrification
Midstream firm says demand needs to be pooled to justify investment
Etinde hinges on government talks
The future of the Cameroonian gas project depends on the outcome of commercial and contractual negotiations