Petroleum Economist
Wind turbine prices rise sharply as costs surge—Wood Mackenzie
Turbine prices are expected to trend higher until end of 2022 as manufacturers face soaring commodity and shipping costs
The CCS revival – part two: US dominance
45Q tax credit and fuel standards are spurring industry on in the US, although blue hydrogen development is still slow
Global EV sales nearly triple in H1 2021 – Wood Mackenzie
China and Europe leading growth markets but sales in US see only modest increase
September 2021
The September 2021 issue of Petroleum Economist is out now!
France lines up 25GW renewables expansion
Government plans new tranche of competitive tenders to bolster wind and solar sectors
OGUK issues North Sea investment warning
The industry lobby group is concerned that a slowdown in UKCS spending does not translate into a stop
Australia launches offshore energy bill
Bill aims to accelerate offshore wind and transmission cable development
Maha Energy targets onshore Brazilian ramp-up
The operator is expanding its footprint in the country’s northeast and has drilling plans for the Middle East
Enquest seeks more low-cost deals
The UK and Malaysia-focused producer is in the market for assets, but ideally those without a price tag
Eni makes 'major' Cote d’Ivoire discovery
Italian firm plans fast-track development of find in offshore Baleine prospect
Shell makes Malaysian FID
Peak production on the Timi gas development is forecast at 50,000bl/d oe
Dutch pension funds hasten exit from oil and gas sector
PME and Dutch hospitality fund unwind fossil fuel investments in wake of Shell climate case defeat
The CCS revival – part three: Canada’s advance
Proposals for six blue hydrogen-related projects are putting the nation at the forefront of the CCS sector
Goodrich Petroleum snaps up more acreage
The gas-focused operator is rapidly growing both its portfolio and production base in the Haynesville shale
Book review: A brave new energy world ahead, but few answers
Daniel Yergin’s new book offers a short but insightful history of key developments in the world of energy, but is less illuminating on the sector’s future prospects
Angola to build new oil and gas port
The development will support the country’s plans to capitalise on regional demand for refined products
Comstock Resources looks to offset hedging losses
Less supply hedged into next year should help drive company revenues if global gas demand stays strong
The curious case of Kurdish gas
The KRG is seeking to increase gas flows and reduce flaring, but its strategy has raised a few eyebrows
BP content with West of Shetland portfolio
The major pronounces itself satisfied with the assets it holds in the UKCS frontier region
MOL mulls LNG transshipment stakes
The Japanese shipping company is looking to acquire stakes in the FSUs serving Russia’s Arctic LNG 2 project
Oil and gas must reduce emissions across all scopes – CCC
UK governmental climate change adviser urges sector to take ownership of energy transition and scale up investments in clean energy alternatives
Letter from London: Shipowners propose carbon levy
Trade association the ICS is trying to take the initiative and steer the industry’s decarbonisation on its own course
Chesapeake Energy pounces on Haynesville
The recently bankrupt gas producer has splashed the cash on a merger that will significantly boost its stake in the southern play
Why the SNP is wrong about Cambo
Scotland’s largest party stands accused of failing to see the big picture on the UK oil and gas industry’s contribution to the energy transition
LNG shipbuilding capacity to tighten
Shipyards are nearing their limits due to strong demand for carriers
US highlights China coal consumption
Capacity additions continue despite falling demand and accelerating renewables rollout
Aker Carbon Capture pegs all-in CCS cost at €110/t
Norwegian firm aims for 10mn t by 2025 and targets UK gas-fired power sector
North Sea buyers wanted
The UKCS in particular has a pipeline of assets for sale. But who will the purchasers be?
Haynesville tempts gas operators
Bullish LNG export prospects on the Gulf Coast are driving M&A activity in the southern shale play
UK sets £200mn budget for offshore wind CfD
Latest budget will ringfence £24mn for floating offshore wind, and includes onshore wind and solar for first time since 2015
India’s green growth challenges
Despite $1.2bn of additional investment, India could miss its 2022 renewable energy capacity target
Guyana keeps the oil finds flowing
Latin America’s latest crude producer again proves its status as a world-class petroleum province
Political row threatens Libya’s oil recovery
Tug-of-war to steer Africa’s largest oil reserves risks stalling the country’s recent upstream progress
Carbon abatement cost debate evolves
Previous analysis tended to neglect cross-measure interactions and simplify diminishing marginal returns
US shale upsurge put on hold
Domestic production has gradually crept up since the worst of the pandemic, but significant growth is unlikely to take place before 2023
Chinese gas demand growth to slow
Consumption will continue to rise over winter, but a stalling post-Covid recovery will put a brake on the market’s expansion
Advance Energy eyes expansion opportunities
Quality oil assets can still attract funding and interest even amid the current ESG environment, says Advance CEO
Jadestone’s expansion plans mature
The independent is looking to capitalise as more companies move to exit mature oil and gas assets, CEO Paul Blakeley tells Petroleum Economist
Chevron outlines new climate strategy
Firm to invest in renewable fuels, hydrogen and CCUS to decarbonise its operations
Chevron outlines new climate strategy (1)
Firm to invest in renewable fuels, hydrogen and CCUS to decarbonise its operations
How to make a commercial return from hydrogen and access funding
Funding and processes are already in place for the green hydrogen economy, meaning the time is right for companies to make the market happen
How to make a commercial return from hydrogen and access funding (1)
Funding and processes are already in place for the green hydrogen economy, meaning the time is right for companies to make the market happen
Tellurian inches towards FID
The Gulf Coast LNG company is confident about global gas demand but first needs to source its Haynesville feedstock
US solar targets a ‘challenge’
Industry faces headwinds including supply chain tariffs and rising commodity prices
Ukraine trumpets carbonates potential
State-owned oil firm heralds success in the Dnieper-Donetsk basin. But there could be even greater deeper potential for those with risk appetite and deep pockets
Tullow-led joint venture reveals revised Kenya plans
Kenya’s ambitions to become a crude exporter might be back on track, as Tullow and partners have revised their Turkana plans
Nigerian reforms leave lingering doubts
Questions remain over some specifics of the recently passed Petroleum Industry Bill and whether the reforms will be enough to jumpstart the country’s stalled upstream
Trinidad scrambles to prevent gas nosedive
The country’s production has been freefalling for years, but expected startups will not be enough to avert further long-term losses
Letter from Singapore: Exploring Southeast Asia’s upstream mix
The region’s upstream is not just a space for NOCs
Saudis move to accelerate sluggish renewables push
Riyadh’s ambitions to enter the green hydrogen sector sit uncomfortably with a slow renewables build-out
China flexes SPR in oil market show of force
China’s upcoming release of crude from its strategic petroleum reserve may signal more measured buying ahead for the world’s top importer
Equinor promises more Norwegian gas
The supplier hails expanded Troll and Oseberg production permits. But the latter is already far exceeding its quota
Lightsource BP secures $1.8bn to boost solar growth
The developer plans to increase total global capacity to 25GW by 2025
UK parliamentarians take aim at Russian gas politics
Fingers pointed at the Kremlin as the primary driver of spiking European gas prices
Hurricane season tests Gulf of Mexico
The region has mostly avoided devastating violent storms over the past decade, but 2020 may have been a turning point
Letter from Canada: Kenney gives Alberta a clean energy image problem
The home of Canada’s oil and gas sector is seeking to reposition itself but is being hamstrung by the record of its provincial government
‘Gas crisis’ brings UKCS supply into focus
The UK’s vulnerability to high international prices may offer an opportunity to remake the argument for domestic production
US industry calls for immediate LNG export limits
Dissenting voices demand gas supplies stay in-country amid falling stocks and energy security concerns
Rallying LNG prices put pressure on buyers
High prices are already having an impact on consumption in emerging markets and might soon affect demand from key importers
PDO outlines stiff 2030 emissions targets
Beyond a flashy pledge of long-term carbon-neutrality lie some meaningful medium-term goals that could substantially speed up Muscat’s lagging decarbonisation efforts
Letter from China: Beijing’s stability focus threatens climate goals
The Chinese government’s renewed focus on centralised control and economic pressure may undermine decarbonisation efforts
China wind power set for rapid growth and plunging costs – Wood Mackenzie
Onshore wind costs expected to drop by 46pc by 2030 as state policies drive sustained capacity growth, consultancy says
Clock ticks on Romgaz Black Sea deal
The state-owned firm has just over three weeks left on an exclusivity agreement for a transaction key to unlocking Romania’s offshore potential
ConocoPhillips captures Shell’s Permian portfolio
Houston-based firm swoops in to take the European major’s entire Delaware footprint and bolster its position in the basin
UK sets out plans for hydrogen
Publication of the UK’s Hydrogen Strategy is a welcome step forward, but the sector is still nascent and more detail is required
UK sets out plans for hydrogen (1)
Publication of the UK’s Hydrogen Strategy is a welcome step forward, but the sector is still nascent and more detail is required
More thinking, less clicking: AI improves geoscientist efficiency
Upstream operators increasingly value the transformational potential of AI solutions
ExxonMobil LNG announces 2021 Power Play winners
Four remarkable professionals recognised across different categories that celebrate advances in diversity and equality and accomplishments in the LNG value chain
ExxonMobil LNG announces 2021 Power Play winners (1)
Four remarkable professionals recognised across different categories that celebrate advances in diversity and equality and accomplishments in the LNG value chain
What does TotalEnergies see in Iraq?
The major has bucked the trend of Iraqi exits and reorganisations. Why is it going where others fear to tread?
Angola promotes E&P prospects
The country continues to roll out a busy programme in the hope of reversing the recent decline in its upstream sector
Iraq turns an IOC corner
Following months of uncertainty about potential partner exits, Baghdad now has cause for optimism
Iran talks the talk on Caspian gas
The Chalous deposit is both significant and conveniently located for potential export purposes. But production is likely a long way off
Digital twin plans need process focus
Despite many companies accelerating digitalisation initiatives, outdated procurement processes present obstacles to long-term success and scale-up
Digital twin plans need process focus (1)
Despite many companies accelerating digitalisation initiatives, outdated procurement processes present obstacles to long-term success and scale-up
New York City pitches for offshore wind business
City sets out 15-year plan to attract investment of over $1bn/yr and launch technology accelerator
Harbour talks up acquisition options
The UK-listed independent hails a “pretty good” M&A landscape
Climate will warm at least 2.2°C - TotalEnergies
Report by oil and gas major outlines scenarios based on current commitments and what is necessary to keep to 1.5°C warming
Industrial AI and our energy future
The energy industry has lagged in adopting AI, but industrial AI could create value through predictive maintenance and optimisation
Fit for 55: Challenges and opportunities for EU industry
Stricter rules and higher targets demand a rethink of value chains and business models by energy-intensive companies
Fit for 55: Challenges and opportunities for EU industry (1)
Stricter rules and higher targets demand a rethink of value chains and business models by energy-intensive companies
Australia and Japan forge new trade links for transition
New wave of investment by Japanese companies could mirror past development of Australian iron ore and coal sectors, PwC says
Australia and Japan forge new trade links for transition (1)
New wave of investment by Japanese companies could mirror past development of Australian iron ore and coal sectors, PwC says
Paris-compliant transition needs massive redirection of capital – DNV
Financiers face multiple challenges as they tackle high-risk, low-return clean energy projects, report says
Mixed outlook for Mauritania’s upstream
As a major LNG scheme continues to advance on the Mauritania-Senegal border, other Mauritanian upstream prospects may be left behind
Enbridge’s Line 3 replacement enters final stretch
The Canadian company is edging closer to startup on its long overdue pipeline project, but several potential hurdles still lie ahead
Letter from South America: Guyana and Suriname poised for change
The enormous exploration success of recent years leaves the South American neighbours at a crossroads
Lone Star state has chance to shine in energy transition
Explosion in jobs and investment among benefits energy transition could bring to Texas and the Gulf Coast
Lone Star state has chance to shine in energy transition (1)
Explosion in jobs and investment among benefits energy transition could bring to Texas and the Gulf Coast
Qatar and China ink another LNG supply deal
State-owned Qatar Petroleum has signed another long-term LNG supply deal, this time with Chinese NOC Cnooc
Will the UK’s “colour-blind” hydrogen strategy accelerate the transition?
The government’s strategy proposes a twin-track of blue and green hydrogen development
Will the UK’s “colour-blind” hydrogen strategy accelerate the transition? (1)
The government’s strategy proposes a twin-track of blue and green hydrogen development
Slow start for Japan’s offshore wind push
Grid constraints and local opposition present major obstacles to Japan’s plans for 45GW offshore wind by 2040
Shell and Octopus join ‘Big Six’ in backstopping UK supplier collapses
Oil major and established independent step in as smaller new gas and power market entrants flounder
Papuan tactics continue to threaten foreign investment
Singapore-based Twinza Oil’s Papua New Guinea plans remain under threat as seeming favouritism towards state-owned Kumul Petroleum presents another blow to Pasca A ambitions
Serica factors ESG into North Sea M&A ambitions
The firm has added environmental footprint into its criteria when assessing potential buys