Petroleum Economist
CCUS must grow 120-fold by 2050 to meet net zero
Current rate of deployment too slow to meet even 2°C warming target, consultancy McKinsey says
Brazilian indies enter rapid production growth phase
M&A activity may have slowed in recent months, but turbocharging production is the new goal for the country’s emerging independents
November 2022
The November 2022 issue of Petroleum Economist is out now!
EU to launch €3bn CCS funding round
Money will come from the Innovation Fund, which has already provided €1.5bn in support to 11 carbon-capture projects
Energy costs hit European refining
Margins narrowed considerably in the third quarter but still remain elevated for the time of year, as the continent continues to adapt following Russia’s invasion of Ukraine
Reabold management stands firm against board clear-out
The co-CEOs of the North Sea-focused E&P warn that an activist shareholder lacks the vision and portfolio-familiarity to add value
Global headwinds for Cop27 climate talks
High inflation and interest rates will hamper project development, but progress is still being made in key areas, says Energy Transitions Commission
Riyadh hedges bets on decarbonisation
The Kingdom is investing in projects to lower the lifecycle emissions of its oil and gas and become a major force in green hydrogen production
Africa remains a challenge for LNG to power
Developers have shown strong interest in the region, but the sector has yet to take off, panellists said at Petroleum Economist’s LNG to Power Forum EMEA
Jadestone advances in Australia but drops NZ plans
Regulatory clarity and swiftness allow the firm to make a rapid move into the North West Shelf, in contrast to its withdrawal from Maari
EU energy sector CO₂ emissions start to fall
Decline follows more than 12 months of rising year-on-year figures due to low nuclear output and increasing demand
EU doubles Innovation Fund to €3bn
Special focus on expanding renewables to make the bloc ‘immune to Russian energy blackmail’
Data software can help evaluate emissions
Rockwell Automation offers a predictive emissions monitoring service that can help give firms a real-time overview of their emissions
Cepsa to offset Spanish winter heating oil use
Spanish oil and gas company says reforestation and preservation offsets will be certified by external company
Norwegian oil output awaits Sverdrup boost
Liquids production continues to trend lower ahead of Q4 Phase 2 startup
No slowdown in oil demand growth
India’s increasing thirst for oil is unlikely to be blunted by planned gas use expansion or the energy transition
India seeks to trim crude import dependence
But ambitious government production targets cannot reverse years of underinvestment and mismanagement
Vaalco looks to expand
Independent’s CEO sees further opportunities for growth in Africa post-Transglobe merger
Southern Energy eyes expansion in the Deep South
The Canadian independent has ambitious plans in Mississippi
Government formation promises relief from Iraq’s upstream stasis
The new administration’s close ties to Tehran could mould its stance towards potential IOC investors
The curious case of the Hurricane bid
UKCS producer’s pared-back portfolio appears to tick few boxes
8 Rivers and JX Nippon to work on CCS technology
Firms intend to develop a gas calibration programme, aiming to burn previously unusable natural gas
EU CBAM will have ‘coercive effect’
Scheme will punish other trading blocs that do not have a carbon price of a similar level, industry seminar hears
Norway ends gas year at four-year high
A September dip fails to dent highest output since 2018
Aramco windfall trickles downstream
Refining, petchems and distribution businesses are feeling the investment impact of sustained oil market strength
Indonesia to develop 1bn t Sumatra CCS facility
Conversion of depleted Arun gas field could be first commercial CCS project in Asia to offer open-access storage
US to issue further methane regulation
EPA says new rules will reduce an estimated 36mn t of methane emissions between 2023-35
China ETS requires power market reform
Policymakers’ ongoing preference for regulated power tariffs over market-based pricing is one of key problems China needs to address
EQT remains bullish on Appalachian gas
The US producer is calling for a rapid buildout of pipeline and export infrastructure
Bearish demand forecasts dominate China’s winter gas outlook
Economic headwinds and little sign of colder weather suggest continuing weakness
Outlook 2023: Balancing the social and environmental impacts of the energy transition
The current supply crunch has brought concerns of a mismanaged energy transition to the fore for both the developing world and Western nations
Genel’s Somaliland drilling may slip to 2024
The UK-headquartered independent’s plans are now for the back end of next year or early the year after
Lithium shortage to slow Europe's battery growth
Volatile power prices have boosted revenues, but new entrants faced with higher capex thanks to spiking lithium prices
Renewables sectors form alliance to drive deployment
Associations representing sectors including green hydrogen, wind and geothermal launch unprecedented joint initiative at Cop27 in Egypt
Outlook 2023: Expect oil surpluses in the year ahead
Despite Opec+ cuts and Russia’s invasion of Ukraine, the fundamentals are not bullish
Cairn renews Barmer block PSC
Much-needed private capital for the upstream is closer to being unlocked, but legal uncertainties remain
Outlook 2023: Three major trends to drive Europe’s PPA market
Looking forward to next year, Pexapark explores three trends that will define the continent’s PPA sphere after a year of turmoil
Exodus from Canada’s oil sands continues
Companies are still fleeing the carbon-heavy assets, despite the industry committing to net-zero emissions by 2050 through the Pathways Alliance
UK ratchets up windfall tax
Analysts and industry are left dismayed by larger-than-expected hike and potential unintended consequences
Outlook 2023: Tighter times ahead for oil
Energy markets have had an extraordinary 2022, sparked by Russia’s invasion of Ukraine and subsequent retaliatory action. But the full effect on the oil market has yet to be seen
EU agrees to loss-and-damage fund
The bloc makes negotiating concession as it looks to tie loss-and-damage fund to mitigation
Cop27 yields new deal on loss and damage
Progress made on loss and damage and on carbon markets, but not on emissions reductions
This time for Iraqi gas?
The new Baghdad government hopes to succeed where predecessors have failed in developing supply
Chinese policy stays in lane
Party set-piece points to pursuit of balance between economic expansion and competing priorities such as risk management and zero-Covid
India courts foreign investors
The government is seeking to revitalise the country’s upstream through a variety of reforms, says Petroleum Secretary Pankaj Jain
Petronas and Vopak cooperate on CCS
Malaysian oil and gas company and Dutch storage firm to focus on potential projects in Singapore
Outlook 2023: Energy crisis puts political commitments to the test
Governments around the world must decide how to approach the energy trilemma amid ongoing volatility
China’s gas storage reliance grows
Despite technical challenges and slow development times, storage capacity is expanding
Letter from Eastern Europe: Western Balkans a test for energy diplomacy
Common energy projects appear to be holding a famously fractious Balkan peninsula together—for now
Outlook 2023: The geothermal prize in tackling the energy trilemma
Geothermal has seen limited development to date. But technological improvements and the prospect of critical mineral recovery could tip the balance of project costs
SAF ‘most viable solution’ for aviation in short term – Shell
The oil major aims to scale up SAF production to help the aviation industry decarbonise
Eni wins support for second UK CCS project
Gas distributor Cadent and energy firm SSE Thermal among backers of project to store CO₂ in depleted North Sea gas field off eastern England
Mozambique upstream progress defies unrest
The east African country continues to attract investment in oil and gas projects, but concerns over security are still impeding developments in the gas-rich north
UK urged to deliver on CCS infrastructure
The government must make good on plans to support CO₂ pipeline transport and offshore geological storage infrastructure development for its track-one CCS clusters, thinktank says
Outlook 2023: Building the path to a just energy transition
With the right policies, security of supply should not be an opposing force to decarbonisation
MVP throws down the gauntlet to opponents
Developers are pushing to complete the Appalachian pipeline project despite years of delays
ConocoPhillips nearing Willow FID
Alaska's upstream continues to gain momentum despite environmental concerns
Outlook 2023: America’s role in global gas security
The US ‘Gaslift’ helped rescue Europe’s energy sector last winter, but with liquefaction plants already operating at capacity, what are the prospects for continued support?
Countries must stop coal approvals to reach net zero – IEA
Transition is complicated in countries with high coal dependency because of remaining lifetimes of plants and expense of gas
Turkey’s gas hub pipe dream
Erdogan and Putin’s rhetoric may be more about targeting domestic audiences than any realistic prospect of development
Norway and Switzerland cooperate on CCS
Two governments in bilateral talks on potential cross-border projects on carbon capture and storage and CO₂ removal
Direct air capture must cut costs to succeed
Project developers believe dramatic reductions are possible, but only with global policy support
EU must clarify CO₂ removal rules
Carbon removals proposal must prioritise emissions cuts and differentiate between short-term and long-term storage, according to NGOs
Strong support for CCUS in hydrocarbon processing sector – survey
Carbon capture, utilisation and storage set to be mainstay of industry, according to majority of respondents to survey conducted by Gulf Energy Information
Permian set for growth slowdown
A range of obstacles will hobble further output increases in the Lower 48’s most productive basin heading into 2023
Mexico aims for Atlantic Basin FLNG success
Rapid development of significant GoM gas deposit may yet be outpaced by a quicker pipeline solution
QatarEnergy keeps control
First expansion supply deals illustrate commitment to maintaining its grip of LNG volumes along the value chain
ExxonMobil and MHI to cooperate on CCS
Two companies to develop large-scale infrastructure based on MHI’s liquid amine CCS technology
Essar Oil to build CCS at Stanlow
Carbon dioxide will be permanently sequestered into depleted gas fields under the sea in Liverpool Bay as part of the Hynet cluster
Letter from China: Anger erupts at Covid policy
The revolt against zero-Covid is significant but is unlikely to sway Beijing this winter
EU reaches deal to include shipping in ETS
Provisional agreement is still subject to an overall deal on the ETS revision in late December.
Colombia at a crossroads
The new government is seen as unfriendly to oil and gas but will have to be pragmatic in the face of energy challenges