Petroleum Economist
October 2022
The October 2022 issue of Petroleum Economist is out now!
Orsted drops out of Taiwanese offshore wind tender
Unfavourable regulation and inflationary pressure behind developer’s decision not to bid in upcoming 3GW tender
Argentina pursues LNG export dreams
Vaca Muerta production is rising sharply, but there are still hurdles to clear
Chevron looks to reduce CCS costs
The US oil major is investing in capture-technology startups and testing in San Joaquin Valley
RWE expands in US with $6.8bn Con Edison deal
German utility nearly doubles its US renewables portfolio with purchase of US’ second-largest solar operator
Bulgaria caught between east and west
Russian interference and domestic political instability threaten the country’s dream of becoming a regional energy hub
Cnooc ramps up wind development
Chinese state oil company following in footsteps of European counterparts as it looks to decarbonise its portfolio
Pay more tax to protect markets – van Beurden
Outgoing Shell chief sees higher government take as a much lesser threat to the oil and gas industry
Geopolitical risks threaten transition
Russia’s invasion of Ukraine has underscored how energy can be weaponised in times of conflict
Energy transition a ‘massively complex’ challenge – van Beurden
Shift to clean energy will take decades, but Shell has the skills to make it happen, outgoing CEO says
Asian LNG demand may tighten market
Demand, rather than supply issues, could keep prices high next year
Oman’s upstream aims to rock like its peers
Don’t call it a comeback, newly gas-focused majors have been here for years
Renewables still key to Europe’s post-crisis energy mix
Medium-term strategy should stay focused on expansion of clean energy, say speakers at Energy Intelligence Forum
Europe’s gas supply woes to persist
Next year may prove even tougher than 2022
US seeks to reassure over Russia price cap
The looming move threatens additional uncertainty and risk for the energy markets this winter
Early days for nuclear SMR sector
Industry needs more certainty on siting and finance before sector moves forward
EU ETS revenues will come from frontloading
Initial Commission proposal to sell allowances from Market Stability Reserve rejected by both EU Parliament and Council
Opec+ decision fallout grows
Crude price gains will not be the only result of the cartel’s decision to cut production
Will Russian gas ever return?
Views on the longer-term future of the pariah state’s gas resources are divergent
Accelerated gas focus for new UK licensing round
Regulator designates four priority clusters in Southern North Sea for fast track
Nuclear industry must be aware of conflict risk
Countries that lack the ability to protect sites should think carefully about nuclear buildout
Nigerian solar sector gains momentum
Companies are starting to invest in decentralised power projects as surging diesel prices drive demand for renewables in one of Africa’s least electrified countries
Low-carbon spending ratio must quadruple – BNEF
Expenditure must increase dramatically in comparison with cash going to fossil fuels if nations are to meet goals of the Paris Agreement
International aviation agrees net-zero goal
Sector now covered by long-term target for first time, but criticism remains over how it is to be achieved
Upstream independent forms Malaysian JV
Upland Resources is seeking opportunities near Brunei
Mainstream targets energy major status by 2030
New ownership positions renewables project developer for transition to long-term asset owner and operator
Australian states leading swift power transition
Laws at state level are enabling transition, but recent federal climate change legislation encourages direction of travel
Woodside sees long-term future for LNG
CEO Meg O’Neill is positive about the prospects for gas as the energy transition gathers pace
Asia gas body urges winter coordination
The demand side will have a greater short-term role than supply in the potentially difficult months ahead
Floating offshore wind capacity doubles in 2022
Sector is likely to continue to gain momentum as costs fall
Bakken’s best oil days may have passed
Output from the mature play has not bounced back as expected from Covid-19
Pavilion banks on supply diversity
Singapore’s gas dependency means the importer must find solutions to the problems the tight global gas market presents
International investors court Congo-Brazzaville
The West African country’s energy resources are once again attracting foreign attention, but the positive outlook for gas contrasts with that for oil
Energy crisis will not derail transition – DNV
Falling cost of renewables and rising carbon prices will outweigh short-term turbulence, risk management firm says in new forecast
CF targets blue ammonia market after signing CCS deal
US fertiliser firm aims to be first high-volume supplier of blue ammonia as it secures major CCS deal with ExxonMobil and Enlink
Another political false start in Kuwait
The opportunity offered by high oil prices to expand static oil and gas capacity is being squandered
Global CCS project pipeline grows 44pc in a year
Thirty projects are in operation, but deployment needs to accelerate sharply to meet Paris Agreement goals, thinktank says
Climate change threatens energy assets
More than 70pc of installed capacity is sited in regions that will face extreme heat and more tropical cyclones in future
Western Canada’s summertime gas glut
Pipeline maintenance is restricting routes to market, leading some producers to shut in production as prices fall
Wildcat aims for brownfield expansion in Sudan
London-listed independent intends to raise oil production in the country
Firms still lag on net-zero targets
Analysis by South Pole suggests major companies are still failing to set net-zero goals
Transition investment falling short – Browne
Annual investment only about a third of required levels as risks deter investors, say former BP chief and chair of Beyondnetzero
BP announces $4.1bn Archaea acquisition
The oil major aims to expand its presence in the US biogas industry
Germany stands firm on nuclear phase-out
Government plans to end nuclear generation in near term despite move to keep plants operational through this winter in response to energy crisis
US opens first California offshore wind auction
First lease sale on the west coast to be held in December
Global carbon emissions set to rise in 2022 – IEA
World on course for 33.8bn t of CO₂ emissions this year, but major deployments of renewables and EVs have slowed rate of increase
Turkey reignites East Med boundary dispute
A new deal heats up simmering clash over exploration rights
China boosts Central Asian gas links
Beijing’s decision to expand the gas pipeline network linking it to Central Asia may threaten Russia’s eastern pivot
Petrobras in the crosshairs as election run-off looms
Ballot box verdict could prove existential for the NOC, amid controversial calls from the incumbent to break apart the Brazilian energy giant
Tellurian suffers Driftwood LNG setbacks
Cancellation of a bond sale and termination of SPAs spell trouble for the project
No imminent slowdown in Indian oil demand growth
The country’s increasing thirst for oil is unlikely to be blunted by planned gas use expansion or the energy transition
Letter from Canada: New Alberta premier brings uncertainty
Danielle Smith’s proposals to take power back from Ottawa do not even have the oil and gas sector’s support
Nigeria’s Dangote refinery startup in doubt
The market is growing increasingly pessimistic about the potential timeline for the ‘game-changing’ West African refinery project
Trafigura joins US cobalt processing project
Commodities trader agrees with Evelution Energy to develop plant in Arizona to supply battery-grade cobalt to electric vehicle manufacturers
No new oil and gas to meet 1.5°C
Report from IISD says new hydrocarbon investments are not compatible with 1.5°C carbon budgets
Schlumberger rebrands to reflect transition focus
Houston-based oil and gas services company becomes SLB and outlines strategy including focus on hydrogen, geothermal and CCUS
Markets await Chinese product export quotas
The normal quarterly uncertainty is more pronounced than usual, and the effect on the market may be delayed
Europe’s refining sector struggles to adapt
Aftershocks from Russia’s invasion of Ukraine continue to roil refining and flows of products around Europe, in the Atlantic basin and across the world
Trinidad’s tax reforms receive mixed reviews
The measures appear to have produced some results, but may not go far enough
UAE powers up clean energy push
Funded by soaring oil revenues and spurred by the European energy crisis, the federation’s renewables and hydrogen plans are rapidly advancing
Industry frets over EU power revenue caps
Patchwork approach could damage wholesale markets and discourage investment in renewables, industry groups say
Russia offers Middle East a card in US game
Opec+ cut agreement suggests Moscow’s Middle Eastern stock remains high
Letter from China: Geopolitics injects uncertainty into US LNG take
China has drastically cut its imports of US LNG this year, but Chinese buyers are still signing up for more volumes
Global GHG cuts still well short of 2°C goal – UNFCCC
Synthesis reports shows that, even after the latest round of NDC updates, signatories to the Paris Agreement are not cutting emissions fast enough
Energy sector carbon emissions to peak in 2025 – IEA
New policies in the EU, the US and China will cause emissions to peak this decade, the first time this has been forecast in an IEA Steps scenario
Renewables count the cost of rate hikes
Levelised cost of electricity rises on higher cost of capital but renewables remain highly competitive against fossil fuels
Fears grow as Russian oil price cap looms
Worries over unintended consequences of interference in traded markets increase as December nears
Letter from South Africa: States and industry eye opportunities
Governments and private firms came together at Africa Oil Week to discuss how to ensure the continent’s hydrocarbons resources do not stay in the ground
Blackstone digs deeper on transition
Private equity division Blackstone Energy Partners is looking to finance critical energy infrastructure assets
No investor punishment for TotalEnergies loosening the purse strings
The European major’s upping of capex forecasts is not ringing alarm bells despite wider shareholder desire for discipline
CO₂ pipelines face US woes
Developers are struggling with public perception and local engagement
EU takes aim at the TTF
The bloc’s energy crisis plans include proposals that threaten to distort the global gas market and may have unintended consequences
QatarEnergy’s INOC paradox
The state-owned LNG heavyweight is adamant that it is a purely commercial enterprise, but the evidence is conflicting
Europe tops storage targets
Europe has already exceeded its gas storage targets for this winter, but risks remain
EU refineries prepare for life without Russian crude
European refiners have strong incentives to adapt to the technological and logistical challenges of the continent turning away from Russia
EU road transport to be zero-emission by 2035
New legislation will phase out diesel and petrol vehicles over next 12 years
Linde and SLB partner on CCUS
The firms plan to focus on CCUS for natural gas processing, as well as hydrogen and ammonia production