Petroleum Economist
Nigeria’s ADM eyes further upstream acquisitions
Nigerian independent ADM Energy is seeking more West African assets to further its recent growth
October 2021
The October 2021 issue of Petroleum Economist is out now!
Six actions needed to close Paris emissions gap – ETC
Additional 17-20Gt of carbon dioxide reductions and 40pc cut in methane emissions necessary to keep 1.5°C target alive
Qatar orders first quarter of Chinese LNG tankers
The world’s largest LNG exporter has taken the first step in its vast fleet expansion
Technip and Siemens look to decarbonise olefin production
Technology uses a dynamic reactor system that replaces conventional furnaces with a combination of electric and hydrogen-fired gas turbines
Brent heads for $82/bl as Opec+ holds steady
The cartel dashes expectations it might boost production ahead of schedule
Petrobras refinery sales stutter
Pledge to divest half of the company’s refining capacity by year-end is starting to look doubtful
Traders see energy price spikes as transition progresses
Extreme volatility possible as underinvestment in upstream oil and gas creates supply gap, trading chiefs say
China scrambles to meet energy demand
The country is turning to gas to plug the gap in its energy supplies, but it will have to pay a hefty price
Giant oil and gas discoveries may prove irrelevant
The energy transition is increasing the risk of huge discoveries becoming stranded indefinitely
Oil demand may not peak until 2040s – Vitol
Near-term demand expected to reach pre-pandemic levels by summer 2022 as air travel rebounds
Gas price spike delivers trading volume record
Exchange Ice reports a slew of new highs as traders try to navigate unprecedented TTF price levels
Savannah Energy eyes expansion
The Africa-focused independent is looking for additional projects, says CEO Andrew Knott
Subsidies key to carbon capture growth
Attempts to scale up CCUS have failed due to lack of guaranteed long-term revenue
CCUS gains momentum despite midstream challenges
Major investment needed to expand CCUS infrastructure in US beyond existing use for enhanced oil recovery
Petronas backs faster exploration
The Malaysian NOC will continue with oil and gas exploration despite the energy transition, says CEO Tengku Muhammad Taufik
How commercially viable hydrogen offtake agreements can be developed
Market structures must be put in place to progress hydrogen past the pre-commercial stage
How commercially viable hydrogen offtake agreements can be developed (1)
Market structures must be put in place to progress hydrogen past the pre-commercial stage
Suriname poised to join upstream elite
The South American country has all the potential to become a major crude producer, as showcased by recent offshore discoveries
UAE declares 2050 net-zero target
Opec member announces initiative ahead of Cop26
Brazil fails to prevent energy crisis
Government inaction and rapidly changing climate have combined to highlight the importance of diversifying the country’s energy mix
Petroleum Economist 2022 Media Guide
Petroleum Economist's latest media guide is now available for download
Transition Economist 2022 Media Guide
Transition Economist's latest media guide is now available for download
UK could handle 150GW of offshore wind in 2050
Offshore wind seen as workhorse of UK system, but integration requires policy and market reforms, thinktank says
Orsted signs €2bn climate-linked revolving credit facility
Interest margin to depend on performance against predefined sustainability targets, Danish energy company says
Chevron sets net-zero 2050 target for upstream emissions
Firm also sets 2028 scope three emissions reduction target of 5pc below 2016 baseline by 2028
Brazil suffers acreage sale setback
Bidding round deemed a disappointment after most operators steer clear
Petrochina squeezed between markets and regulated prices
China’s energy supply crunch is contributing to mounting losses at the state-controlled firm
Uniper ups capacity in Gate LNG terminal
The German utility now owns the largest share of access to the Dutch terminal. But the deal offers little guarantee of supply security
Cheniere and China’s ENN sign LNG deal
The Chinese independent has secured more long-term LNG with a 13-year deal for 900,000t/yr
Saudi Arabia and Iraq could join the LNG export party
In the longer term, the two Gulf heavyweights may become gas exporters. But Egypt’s return to the table could be in doubt
Greenpeace makes further UK anti-oil protest after court defeat
The beleaguered E&P sector can breathe easier after legal ruling against the environmental NGO. But it has taken its message directly to the heart of the political establishment
Petrobras eyes Gulf of Mexico exit
The NOC has added another sale to its long list of divestment targets
Private operators drive Permian recovery
Strong market conditions are encouraging private producers in Texas and New Mexico to lift drilling activity
Making the market: How to structure commercial-scale hydrogen projects
A number of structuring options are available for commercial-scale green and blue hydrogen projects in the energy sector
Making the market: How to structure commercial-scale hydrogen projects (1)
A number of structuring options are available for commercial-scale green and blue hydrogen projects in the energy sector
Clean energy investment must triple by 2030 – IEA
Key role for startups as clean technology market hits $27tn under 2050 net-zero scenario, IEA says
Lightsource BP solar project to meet steel mill’s power demand
Solar developer launches largest US onsite solar facility dedicated to a single customer
Collaboration is key for African gas-to-power
The continent needs more regional cooperation to expand its gas sector, panellists told Petroleum Economist’s LNG to Power Forum
Sri Lanka poised to join LNG market
The country’s push to become an LNG importer is gathering pace, bolstered by the island nation’s location on major shipping lanes
US to offer up to seven offshore wind leases by 2025
Government aims to fire up key renewables sector with increased certainty and transparency for potential developers
Could Boris Johnson drop a Cop bombshell on UK oil and gas?
Industry figures warn the quixotic British prime minister might choose Glasgow talks to make a grand gesture on the UKCS’ future
Gran Tierra cranks up the gears
Midstream takeaway has returned to normal in Colombia, paving the way for production growth opportunities
Strong policy push needed to reduce oil and gas demand
Mismatch between tightening supply and continued demand will result in continued volatility unless action taken on demand side, says IEA report
Occidental exits Ghana
The US super-indie is divesting its assets in the country
Beijing strives to balance security and decarbonisation
The ongoing global energy crunch underlines the difficult task facing China’s leaders in balancing energy supply security while reaching net zero in the next 40 years
UK oil and gas could miss 2030 emissions reduction target – OGA
Regulator urges industry to ramp up efforts to electrify infrastructure and stop routine flaring to meet 50pc emissions target
South Africa's Eskom seeks transition funding
State-owned South African utility Eskom is seeking financial backing for its decarbonisation efforts, including the construction of at least 4GW in gas-fired generation capacity
Winter warning signs for US gas market
Upward price pressures may benefit producers, but consumers will be hoping for a mild winter this year
Iraq’s two months in the sun
Baghdad has recently pulled off a string of deals promising a manyfold expansion in solar capacity
How to debate the transition with oil and gas firms
Is anger and a refusal to allow any comeback a useful tactic to shake up cosy complacency? Or is reasoned debate more useful?
Oil companies missed transition pivot
Shell and activist investor both agree that mistakes were made in the ’00s
Western Canada’s gas revival
Midstream pipeline expansion and cautious operator spending is fuelling an uptick in prices
UAE tries to ride two horses
Abu Dhabi’s plans to raise oil and gas production are advancing despite the federation’s carbon-cutting pledges
UK to unlock £90bn transition investment by 2030
Renewables, CCS, nuclear and hydrogen are all earmarked for government support, according to a recently published strategy
Uncertainty hangs over Permian permits
Output may be climbing fast, but producers are still waiting for clarity from the government on the future of federal drilling
Corallian seeks bidders
The pre-production North Sea independent has put itself up for sale
Petrobras’ downstream dilemma
President Bolsonaro considers privatising the NOC as fuel prices climb and divestments drag
Gas at the heart of Iraq’s transition
While oil has grabbed the headlines for Iraq, tapping its gas potential could transform the country’s economic fortunes
UK includes aviation and shipping in emissions targets
The country’s recently published Net Zero Strategy aims to reduce transport emissions by 22-33pc by 2030 and 46-59pc by 2035 compared with 2019 levels
Bullish outlook for US oilfield services
Quarterly financial results have rebounded and prospects look even better heading into next year
Letter from South America: Venezuela secures Iranian lifeline
The crude-for-diluent swap deal with Iran is underway
Iraqi election results offer domestic gas promise
A poor showing for Iranian-backed factions may add impetus to efforts to reduce import dependence
TV review: Shell comes under fire on UK primetime
Comedian’s documentary had dishonesty at its core. But its very commissioning should give the European oil industry pause for thought
Delivering an effective framework for cybersecurity
A systematic approach is key to creating a ship security programme and ensuring the crew are involved in its delivery
Tackling emissions with AI
O&G firms must embrace greater digitisation to mitigate the impact of global warming and meet climate goals
Scaling your digital twin strategy
Firms should look to an enterprise-wide use of the technology to reap the operational benefits and support a sustainable future
Scaling your digital twin strategy (1)
Firms should look to an enterprise-wide use of the technology to reap the operational benefits and support a sustainable future
Australia pledges net-zero emissions by 2050
Government says clean technology can deliver bulk of cuts and rules out use of carbon taxes
Letter from the Middle East: Adnoc’s road to net zero
The NOC must decarbonise rapidly if the UAE is to meet its emissions pledge
Energy crises will not derail transition
Veteran analysts conclude that short-term risks to the longer-term trend towards net zero are overblown
Middle East expands Asian market share
Asia’s crude supply has shifted in recent months as Mideast Gulf producers have increased exports. And that trend may continue into the new year
OGA takes aim at Elgin-Franklin laggards
The UK upstream regulator is unhappy at partners in the field dragging their feet on the sale of ExxonMobil’s stake
Siemens Gamesa plans first US offshore wind factory
Virginia facility marks first step in development of US supply chain for offshore wind
Global climate commitments fall short – Unep
Current pledges to Paris Agreement would lead to 2.7°C of global warming this century
Cairo eyes role as clean energy exporter
Egypt starts to look beyond decarbonisation of its domestic power sector as investment in its renewables and emerging clean hydrogen sector gain momentum
Big potential seen for CCUS in Southeast Asia
Technology uniquely positioned to support region’s decarbonisation of power generation and gas processing, conference panellists say
Aker advances plan to launch €1bn energy transition fund
Norwegian company also unveils plan to form green industrial hub at site north of Arctic Circle
Var looks at IPO
The Norway-focused IOC/private equity company is mulling a flotation
South Africa’s energy sector and the just transition
Continuous engagement by stakeholders crucial in ensuring energy sector is sustainable while also managing social impacts of shift
South Africa’s energy sector and the just transition (1)
Continuous engagement by stakeholders crucial in ensuring energy sector is sustainable while also managing social impacts of shift
Hydrogen: A confirmed green strategy for NSW
Strategy capitalises on New South Wales’ sustainable water resources, fast planning pathways and growing renewable energy generation capacity
Hydrogen: A confirmed green strategy for NSW (1)
Strategy capitalises on New South Wales’ sustainable water resources, fast planning pathways and growing renewable energy generation capacity
Chinese policy critical to Asian crude prospects
All eyes are on Beijing as forecasters debate the prospects for the recovery of Asia’s oil demand
Taiwan’s recipe for success in offshore wind
Supportive policies and growing corporate PPA market drive growth in Taiwan but progress stalls elsewhere in Southeast Asia
Letter from Canada: Under siege oil sands pledge support for emissions cuts
Critics highlight that the energy sector needs to accelerate decarbonisation if Canada is to meet its climate goals
Cote d’Ivoire well-positioned for upstream development
Potential ‘world-class find’ at Baleine bodes well for the West African country’s prospects
Shell defends itself against call for break-up
Breaking up company, as activist investors want, would not help firm transition, say executives
The role of tax policy in promoting a low-carbon hydrogen industry
Governments globally must determine which policy levers are most suited to incentivise the establishment and growth of a low carbon hydrogen economy
The role of tax policy in promoting a low-carbon hydrogen industry (1)
Governments globally must determine which policy levers are most suited to incentivise the establishment and growth of a low carbon hydrogen economy
Letter from China: LNG deals show pragmatism in US-China ties
A US LNG project developer has signed the first long-term supply contracts with a Chinese buyer in nearly four years
LNG market poised ahead of winter
Prices hit record levels recently, well in advance of the winter demand peak, but the outlook for the market is mixed
ExxonMobil LNG receives 2021 Gastech Diversity & Inclusion Award
Firm’s commitment to inclusivity through its Power Play initiative saw it scoop award at Gastech conference
ExxonMobil LNG receives 2021 Gastech Diversity & Inclusion Award (1)
Firm’s commitment to inclusivity through its Power Play initiative saw it scoop award at Gastech conference
US lawmakers consider regulatory framework for hydrogen transport
Observers are concerned further action is needed to clarify and enhance regulations for transporting hydrogen
US lawmakers consider regulatory framework for hydrogen transport (1)
Observers are concerned further action is needed to clarify and enhance regulations for transporting hydrogen
Innovative energy solutions at the 23rd World Petroleum Congress
WPC comes to the energy capital of the world 5-9 December 2021 during a crucial time of transition and innovation
Nigerian domestic gas plans advance
The Anoh plant is due to come online in H1 2022
Oil majors say fossil fuels still needed in US committee hearing
ExxonMobil, Chevron, Shell and BP executives support Paris Agreement but say fossil fuels will be required for some time