Petroleum Economist
TotalEnergies targets 2027 startup for Papua LNG
Close collaboration between IOCs in Papua New Guinea means other developments may follow
July/August 2022
The July/August 2022 issue of Petroleum Economist is out now!
BP to invest in UK EV battery-testing facility
Project will help develop fluid technologies for managing temperatures in batteries to improve efficiency
Reading too much into the Saudi capacity ceiling
MbS almost certainly did not mean what oil bulls have convinced themselves he did
Nigeria upgrades oil export infrastructure
The much-delayed alternative to the Trans Forcados route has finally started commissioning
Japan and South Korea promise little immediate LNG market relief
East Asia’s power sector use may be poised to shrink from 2023, but demand for the fuel is expected to remain strong this year
Siemens Gamesa’s losses deepen on rising costs
Turbine prices must rise to reflect manufacturers’ costs or risk impact on transition, says CEO
Australia mulls LNG export controls
The recent energy supply crisis has resulted in a political backlash against the nation’s gas exporters
Cote d’Ivoire’s Baleine set for fast-track development
The field will be the African country’s largest oil and gas development and revive a declining upstream that has seen almost 20 years without a major discovery
Genel: Return cash or M&A?
Analysts are split on the best way forward for the Kurdistan-focused producer, in a dilemma many upstream firms may also face
Adnoc forgoes seasonal break
The Emirati heavyweight is racing to bring on new gas production to exploit rampant global thirst for the resource
Shell in talks with Lufthansa over SAF deal
Seven-year agreement with German airline would be Shell’s biggest such contract to date
Egypt’s renewables drive shifts focus
Green hydrogen and distributed solar grab investor attention as country prepares for Cop27 climate talks in November
US act would expand credits for transition technologies
Bill would provide support to companies involved in the manufacture of wind turbine components, solar panels and EV batteries
Australia set to pass climate bill
New Labor government wins support from Greens for bill to reach net-zero emissions by 2050
Shipping can underpin crucial steps in the energy transition
The industry will have a central role in decarbonising the economy of the future by transporting greener fuels, according to the International Chamber of Shipping
US politicians up windfall tax rhetoric ante
Surging downstream profits add fuel to the fire, but the spectre of demand destruction lurks
India legislates on emissions
Revision of energy conservation bill aims to enshrine updated NDC in law and introduce a carbon market
Nustar sees continuing Permian growth
The infrastructure firm expects flows through its pipeline system in the US shale heartland to be 10pc higher by the end of the year
Freeport LNG to restart in October
The unplanned outage that took the plant offline in June highlighted the growing global importance of US LNG
Revived Sahara pipeline still faces hurdles
Nigeria, Niger and Algeria are committed to the $13bn gas connection, but financial and security obstacles will be hard to overcome
Tehran makes a virtue of necessity
Iran aims to channel the fruits of accelerating upstream oil development into refining and petchems integration
US bill on climate passes Senate
The Inflation Reduction Act contains a series of measures to stimulate the low-carbon economy in the US
Russian seaborne crude exports slow
China and India remain the most important customers for Russian volumes
Letter from the Middle East: Opec balances Russia and the West
The cartel is happy to wait for further developments before committing to more drastic action
Siemens sees no slackening in European gas-to-power
Gas-to-oil conversions are nonetheless presenting the turbine maker with opportunities
Pemex reverses production decline
Mexico’s leading energy provider enjoyed a strong quarter but will have to overcome hurdles to achieve its upstream objectives
Suncor in no rush on UKCS sale
The Canadian producer’s exit from Norway may not be closely followed by divestment across the maritime border
World faces setbacks on energy challenges
Slower-than-expected progress on nuclear power means the world must look elsewhere for decarbonisation options
Little love lost as Serica and Kistos walk away
Neither firm will pursue their offer for the other, but they may look elsewhere
Vestas expects US order boost from climate act
Danish wind turbine maker welcomes Inflation Reduction Act but reports second-quarter loss as inflation and supply chain issues continue to weigh on performance
Burning developed fossil fuel reserves will exceed 1.5°C carbon budget
Significant proportion of CO₂ from oil, gas and coal assets either producing or under construction must be left unburned, study says
Is floating LNG coming of age in Africa?
Offshore liquefaction projects seem well-suited for the continent’s upstream
Ipieca launches industry principles
Global oil and gas association’s eight principles are grouped around four strategic pillars of climate, nature, people and sustainability
Orsted optimistic despite rocky Q2
Net loss on Gazprom contract has eaten into the Danish company’s quarterly profits, but it still expects an increase in full-year earnings amid renewables success
Hibiscus blossoms in Southeast Asia
The Malaysian independent sees the region as an increasingly important part of the world’s energy system, says managing director Kenneth Pereira
Letter from China: Taiwan tensions expose energy risks
China’s heavy reliance on energy imports means it too would be vulnerable in the event of armed confrontation
RWE raises 2022 renewables spend by 30pc
German utility targets €5bn investment in renewables but confirms temporary restart of lignite power plants to support winter supply
Kazakhstan seeks to chart own course
It may be too soon to speak of a divorce between Russia and Kazakhstan. Yet the former’s invasion of Ukraine is sending shivers through Central Asia
SEG looks to expand in Uzbekistan
The Central Asian country has introduced upstream reforms since President Mirziyoyev came to power
Dash for gas in the Haynesville
Bullish output projections and snowballing consolidation illustrate scramble to gain a foothold in the basin
CCUS use must grow vastly to reach net zero
Analysis of scenarios by Transition Economist shows that even recent positive developments are not consistent with required deployment pathways
Between East and West: Central Asia at a crossroads
The region holds huge gas and oil reserves, but getting those resources to market poses challenges
Brazilian upstream reaps divestment dividend
Petrobras is starting to see significant production gains in the pre-salt, while independents are already raising output at fields divested by the NOC
Future-proofing Aramco
Record profits allow for investment drive not just in the upstream but also the downstream and in lower-carbon
Letter from Mexico: Deepwater ambitions drowning in debt
Mexico must harness the vast resources in the Gulf to meet the government’s goal of energy autonomy
Independent producers’ scope three dilemma
Is it enough for pureplay upstream firms to concentrate solely on emissions within their control?
Independent producers’ scope three dilemma (1)
Is it enough for pureplay upstream firms to concentrate solely on emissions within their control?
Western turbine firms in the doldrums
US and European manufacturers face continued losses up to 2024 due to dwindling orders, project delays and cost inflation
IRA gives US upstream tax and buyback headaches
The landmark legislation with the unfortunate acronym has garnered a largely negative oil and gas industry reaction, barring a few exceptions
Ratch Group buys Nexif Energy for $605mn
Thai energy firm acquires portfolio of renewables, gas and battery storage from investment firm Denham Capital and project developer Nexif
Developers stay on course for Taiwanese offshore wind
Despite geopolitical tensions and stringent localisation requirements, companies are gearing up for an upcoming offshore wind development tender
Indian hybrid renewables project secures $1bn loan
Loan provided by 12 international lenders is largest to a single renewables project in India, developer Renew Power says
UKCS backers take big EPL hit
The basin’s champions over a challenging period may lose most from timing of the so-called windfall tax
Record prices reflect Europe’s winter gas fears
It is difficult to predict just how the continent’s supply and demand will balance
German utilities take on LNG supply duties
The first two floating import terminals now have commitments to full deliveries
Power crisis an opportunity for South African renewables
Accelerating and liberalising solar and wind power procurement is central to the government’s latest pledge to tackle crippling electricity shortages
Power demand threat to Europe’s winter gas security
Greater-than-expected requirements to burn the fuel to keep the lights on could harm supply conservation efforts
Scotland awards Shetland offshore wind rights
Mainstream Renewable Power, Ocean Winds and ESB pay combined £56mn for option to develop 2.8GW of floating capacity with green hydrogen potential
Private capital holds the key to the oil and gas kingdom
Equity investors may remain cautious, while funds are evolving in response to a changing market landscape
Letter from London: Leadership lacking as energy crisis looms
The UK is facing a winter of energy price discontent, but the governing Conservative party is focused on its own internal struggle
Eni and TotalEnergies strike more gas in Cyprus
The European producers celebrate further success in Block 6 but the East Med export conundrum remains unsolved
Norway’s DNO buys into Cote d’Ivoire
DNO is diversifying beyond its usual regions of operation and plans further expansion
Storage disincentives and regional dislocations roil European gas trading
The loss of Russian volumes has made for unusual market conditions
Letter from Canada: Federal government attempts emissions strategy
Federal carbon pricing options may allow the central government to outflank provincial opposition
EU ETS prices rise on high coal burn, low auctions
Prices in the EU’s emissions trading scheme hit an all-time high last week after an August rally on reduced volumes and an increase in coal burn
Australia’s Pluto LNG kicks off expansion
The new train will be fed by the huge Scarborough gas field development
Mixed appetite for UKCS farm-outs
Deltic reports progress but will also relinquish two licences after failed processes
Uzbekistan lays out energy goals
The Central Asian nation seeks to attract significant foreign investment for its energy sector
China holds the key for European winter LNG
Demand in the East Asian powerhouse is the major variable for pace of deliveries into the Russian gas-starved continent
Harbour plans Indonesian FID for end-2023
The UK firm is expanding its Indonesian upstream presence
Central Asia taps Saudi funds for renewables push
Saudi Arabia’s Acwa Power makes inroads in Central Asia through investment in renewables and green hydrogen
North American LNG export contracts approach 50mn t/yr
Shell and Centrica deals latest in post-Ukraine invasion SPA boom for liquefaction projects
European majors to spend over a third of capex on low carbon by 2025
Six of the largest European oil and gas firms have set 2025 targets for low-carbon investment as part of their climate transition plans, with goals to increase spending by 2030
Australian indie expands Gambian interests
Far is seeking new partners to advance developments
Equinor and Wintershall launch major CCS project
Open access pipeline will link north German CO₂ collection hub with offshore storage sites on Norwegian continental shelf
Charting the global energy landscape to 2050: Sustainable fuels
Sustainable fuels can provide GHG reductions comparable to battery-electric vehicles and are applicable in multiple sectors, according to McKinsey
EU aims to reform electricity markets
European Commission is working on both an emergency intervention and long-term structural reform following high electricity prices
Indian refiners reap Russian discount rewards
India continues to take significant volumes of discounted Russian crude
Southwest China hit by energy shortages
Extreme weather in the region means more headwinds for the Chinese economy
Darwin LNG backfill remains on track
The project to switch the liquefaction plant from a Timorese to Australian gas source continues to advance
UK gas producers need to read the room
The reality of price rises facing consumers means the dialogue has shifted
Chinese NOCs delist from NYSE
The voluntary move demonstrates the growing distance between the US and China