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NewBase Energy News 14 February 2018 - Issue No. 1141 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Dewa, Siemens to launch solar-driven electrolysis facility
Siemens + Trade Arabia + NewBase + Dubai Expo 2020 Bureau
Dubai Expo 2020 Bureau, the organisers of the upcoming mega event, said it has signed an
agreement with Dubai Electricity and Water Authority (Dewa) and global technology giant
Siemens to launch a pilot project for the region’s first solar-driven hydrogen electrolysis facility.
The announcement came during the sixth edition of the World Government Summit (WGS 2018)
held on February 12. Dewa’s outdoor testing facilities at the Mohammed bin Rashid Al Maktoum
Solar Park in Dubai have been selected for the project, reported state news agency Wam.
The facility aims at testing and showcasing an integrated MW-scale plant to produce hydrogen
using renewable energy from solar photovoltaic at the Solar Park, store the gas, and then deploy
for either re-electrification, transportation or other industrial uses, it stated.
Hydrogen technologies will accelerate renewable energy integration and deployment in the region
and pave the way for the transition to a sustainable and green economy in the UAE, it added.
Dewa and Expo 2020 Dubai intend to use fuel-cell vehicles powered by the green hydrogen
generated at the facility, stated Reem bint Ibrahim Al Hashimy, Minister of State for International
Co-operation and Director-General of Dubai Expo 2020 Bureau after signing the MoU with Saeed
Mohammed Al Tayer, the managing director and CEO of Dewa, and Joe Kaeser, the president
and CEO of Siemens.
Visitors of Expo 2020 Dubai will be able to visit the key facilities at the Solar Park. Live data of the
green hydrogen electrolysis will be displayed at Expo 2020 Dubai, said the Wam report.
Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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"This project will not only result in the development of the region’s first solar-driven hydrogen
electrolysis facility, but is an example of what can be achieved through collaboration between
Expo 2020 Dubai and our partners, truly embodying the Expo theme of ‘Connecting Minds,
Creating the Future’," remarked Al Hashimy.
"The exhibition will be a celebration of creativity and innovation, providing a platform for new
sustainable technologies like this to be presented to a global audience of millions, and help us
move towards a cleaner, greener future," she added.
Al Tayer said the MoU is in line with the vision of the Vice President, Prime Minister and Ruler of
Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, to increase the share of Dubai’s total
power output from clean energy sources to 75 per cent by 2050 through the Dubai Clean Energy
Strategy 2050.
"It also supports Expo 2020 Dubai's themes to promote sustainability and innovation and Dewa’s
efforts to contribute to hosting the best edition of Expo in Dubai. This is part of our partnership with
Expo 2020 Dubai, as the official sustainable energy partner," he added.
Kaeser dubbed it as a truly landmark project for Dubai and the world, and a great step forward in
building a secure supply of sustainable energy for the region’s economic development.
"Green hydrogen can be a fuel of the future. It will accelerate the adoption of renewable energy in
the Middle East through sector coupling, offering new use cases, such as e-Mobility and other
environment-friendly industries," he added.
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Oman:New oil discoveries, hopes of further finds in Blocks 3&4
Oman Observer -Conrad Prabhu
Swedish based international energy firm Tethys Oil says it expects to invest around $60 million in
its Oman operations during 2018, the bulk of which is earmarked as its share of investments in the
further development of the onshore producing Blocks 3&4 located in the eastern part of the
country.
The new investments come against a backdrop of positive developments for the company, which
added a new 100 per cent owned and operated concession (Block 49) to its assets in the
Sultanate. New oil discoveries uncovered in 2017 have buoyed hopes for stronger reserves
growth and higher output going forward, Magnus Nordin (pictured), Managing Director, said.
“In 2018, Tethys Oil expects investments in Oman to amount to $53-62 million, the bulk of which
will be spent on Blocks 3&4.
The work programme will of course include the appraisal of the discoveries and the new seismic
area as well as further exploration wells. Included is also upgrading of the infrastructure and
production drilling on the older fields. On Block 49 work has commenced but, at least initially, at a
lower pace than on Blocks 3&4,” Nordin stated in comments on the company’s 2017 performance
and outlook for 2018.
Among the highlights of the past year was the discovery of “significant amounts” of oil in new
structures near its producing fields in Block 3&4, said the Managing Director. Tethys Oil has a 30
per cent interest in the two adjoining blocks, spread over a total area of 29,130 sq km.
Independent oil and gas exploration and production company CC Energy Development (CCED) is
the operator of the Block with a 50 per cent interest, while Mitsui has the balance 20 per cent
interest.
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“The Erfan, Ulfa and Samah discoveries are all undergoing long term production tests and thus
already contribute to our production,” said Nordin. “A major focus for 2018 will be to complete the
appraisal programmes on these discoveries and develop them into new oilfields and in the
process mature the resources into reserves,” he noted.
Besides bolstering contingent and 2P reserves (the sum of proved and probable reserves), the
new discoveries have also led to heightened optimism about the potential of leads and prospects
so far identified in the blocks, according to the Managing Director.
“In the area just east of the Ulfa discovery, we have some ten leads which will be evaluated by the
ongoing 3D seismic study covering 1,200 km2. Naturally we hope to mature the majority of these
leads into drillable prospects.”
Production from the new discoveries is expected to have a positive impact on the performance of
the two blocks, he stressed. “Production from the appraisal programmes and long term production
tests of the Erfan, Ulfa and Samah will contribute to 2018 and we would expect future production
from the discoveries to account for an increasing share of overall production. Production may from
time to time also be impacted by the Opec production quota arrangement,” he added.
While Oman represents Tethys Oil’s core upstream focus, the Swedish firm also has onshore
exploration licences in Lithuania and France and some production as well.
About Tethys Oil’s Oman core area is Oman. Oman is strategically located on the tip of the
eastern Arabian Peninsula, neighbouring the United Arab Emirates in the northwest, Saudi Arabia
in the west and Yemen in the southwest. Oman overlooks the Arabian Sea, the Sea of Oman and
the Arabian Gulf.
Blocks 3 & 4
Tethys Oil’s most significant asset in Oman is Blocks 3 & 4. The blocks are located in the eastern
part of Oman and cover an area of 29,130 square kilometres. Tethys Oil acquired the company’s
interest in the blocks in 2007. In 2010, an early production system was launched. In 2012, the
Field Development Plan was approved and the exploration and production terms for the licence
were extended until 2040.
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Oman: PDO, GlassPoint inaugurate Miraah Solar Plant
Oman Observer
Under the patronage of Salim bin Nasser al Aufi, Under-Secretary of the Ministry of Oil and Gas,
Petroleum Development Oman (PDO) and GlassPoint Solar have inaugurated the Miraah solar
plant yesterday.
Miraah, located at the Amal oilfield in the south of the Sultanate, will be among the world’s largest
solar projects when completed. Four blocks of the plant have now been constructed safely, on
time and on budget with steam production integrated with the Amal network. The event also
marked the official opening of the Miraah Visitor Centre with more than 200 guests in attendance,
including representatives from both the public and private sectors.
“Today marks an important milestone for Oman as it further cements its position as the regional
leader in energy convergence, uniting renewable and conventional energy industries. Deploying
solar on Oman’s oilfields to reduce the industry’s natural gas consumption has a significant and
lasting economic benefit for the Sultanate,” Al Aufi said.
Miraah will generate real In-Country Value (ICV) and create job opportunities for Omanis, largely
from future supply chain development and gas savings directed to other industries. Al Aufi added,
“The project, which stands to be among the largest solar projects in the world, has contributed to
developing local Omani talent in the renewable energy field and created job opportunities for local
companies.
We look forward to exporting our knowledge and expertise to the rest of the world as other
progressive oil and gas producers follow in PDO’s footsteps.” Miraah’s construction has
progressed on schedule with 1.9 million safe man-hours completed without a Lost Time Incident
since the project started in 2015.
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The first four blocks were commissioned successfully and the facility is now in daily operation
delivering steam to the Amal oilfield. The four blocks have a total capacity of over 100 MWt and
will deliver 660 tonnes of steam per day, providing significant gas savings.
Once complete, the one gigawatt installation will consist of 36 blocks built in a sequence, which
allows PDO to benefit from solar steam now and gradually ramp-up production over time to meet
the Amal oilfield’s steam demand. The project is on track to deliver an additional eight blocks in
early 2019.
“This is a very proud day for PDO and our partners GlassPoint Solar. Miraah provides a simple yet
innovative solution that allows us to develop our heavy oil, while at the same time reducing energy
consumption and costs,” said PDO Managing Director Raoul Restucci.
“For PDO, Miraah represents an important step in our journey to become a fully-fledged energy
company, as well as placing the Sultanate firmly on the global renewable energy map with this
pioneering project,” he added.
GlassPoint’s solar technology was specifically designed to harness the sun’s energy to generate
the steam required for thermal enhanced oil recovery (EOR), seamlessly integrating into existing
oilfield operations. The natural gas saved by using GlassPoint’s technology can be exported or
directed towards higher-value applications such as power generation or industrial development,
helping to diversify the economy.
“Today, alongside our partner PDO, we are ushering in a new era for renewables here in the
Sultanate and for the broader oil and gas industry,” said Ben Bierman, Chief Operating Officer and
Acting CEO of GlassPoint.
“The current climate of low oil prices and the transition to cleaner energy sources, validates the
important work we have achieved together with Miraah. Oman is becoming an epicentre of
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excellence for using solar energy to power oilfield operations and overcome today’s energy
challenges.”
Unlike solar panels that generate electricity, GlassPoint’s solution uses large mirrors to
concentrate sunlight and boil oilfield water directly into steam. The steam is used for the extraction
of viscous or heavy oil as an alternative to steam generated from natural gas.
GlassPoint’s innovation was to bring the mirrors and other system components indoors, using a
greenhouse structure to protect from wind and sand, which is common in remote oilfields like
Amal.
The greenhouse enables major cost and performance advantages compared to exposed solar
designs, from reducing overall material usage to automated washing operations.
GlassPoint’s partnership with PDO began over seven years ago when they built the first solar
EOR project in the Middle East.
The 7 MWt pilot project proved the effectiveness and cost efficiency of GlassPoint’s technology
and led to significant learnings and design improvements. No other technology has been proven
successfully for oil and gas operations.
GlassPoint’s track record in Oman has led to the company’s expansion in new markets, including
the recently announced project with oil and gas producer Aera Energy to build the largest solar
plant in California, USA.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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India's Oil Consumption Grows at Fastest Pace in 14 Months
Bloomberg + NeBase
Oil demand in India rose 10.3 percent in the first month of 2018, the fourth straight monthly gain.
Total oil consumption expanded at the fastest pace in 14 months to 16.9 million tons from 15.3
million a year ago, according to the oil ministry’s Petroleum Planning and Analysis
Cell. Improvement in road freight transport following the stabilization of the new nationwide sales
tax and growing use of cars and scooters boosted the consumption.
The growth in demand came over a low base as in January last year the nation’s oil
consumption fell the most in 13 years following the government’s crackdown on high-value
currency notes.
• Diesel usage gained 14.5 percent to 6.65 million tons
• Gasoline consumption rose 15.6 percent to 2.09 million tons
• Demand for liquefied petroleum gas increased 4.6 percent to 2.08 million tons
• Petroleum coke usage rose 9.2 percent to 1.98 million tons
The International Energy Agency sees India to be the center of global oil demand growth until
2030. The nation expects to double gasoline and diesel consumption by that year even as it
aspires to sell only electric vehicles in 2030. The two fuels account for more than half of India’s oil
usage.
The Society of Indian Automobile Manufacturers expects India’s passenger vehicles sales
to expand 9 percent in the year ending March. The new goods and services tax does not include
oil products at present.
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America's Supertanker Terminal Set to Export Oil for the First Time
Bloomberg + NewBase
The flood of crude leaving the U.S. could be about to get a major boost: the nation’s top imports
terminal is testing one of the industry’s biggest tankers to load an export cargo for the first time.
If the trial run signals the start of regular exports from Louisiana Offshore Oil Port, it will be a step
change in America’s capacity to export the burgeoning production that’s roiled global oil markets.
The ability to load very large crude carriers, the industry term for giant ships able to carry two
million barrels, will significantly cut the cost of shipping cargoes overseas.
On its website, the terminal said it’s testing a supertanker following modifications last year to allow
crude exports. Shipping data compiled by Bloomberg and cargo tracking firm Kpler show the
tanker is the Saudi Arabian-owned Shaden, chartered by China’s largest oil trader last month.
LOOP has been a vital piece of U.S. energy infrastructure for more than 30 years, handling
imports from across the world as well as gathering crude pumped from deepwater deposits in the
Gulf of Mexico.
LOOP LLC moored the supertanker and “initiated its detailed test and checkout procedure,” the
operator said on its website, without elaborating. The company said in July that it would seek
customer interest in loading services, modifying its facilities to allow the port to operate “bi-
directionally” to handle exports.
Infrastructure such as pipelines and ports has become the biggest bottleneck in U.S. oil exports,
with traders at times engineering logistically complex chains combining railways, trucks, pipelines,
barges, and a ship-to-ship transfers to get the crude out of the country. As U.S. output surpasses
the record high of 10 million barrels a day set in 1970, trading houses, pipeline owners and ports
are investing in new infrastructure to ship more American crude overseas.
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While U.S. crude has already been exported using supertankers, other ports are too shallow to
allow full loadings, meaning smaller ships must shuttle multiple cargoes to the giant vessels as
they wait to load offshore. LOOP, because of the depth of the waters around it, would allow the
industry’s largest tankers to load in one go.
The tanker Shaden is owned by the National Shipping Co. of Saudi Arabia, according to data from
IHS Maritime. It left the Middle East country’s biggest export terminal on about Dec. 20, delivering
its cargo to the U.S. Gulf of Mexico earlier this month.
The carrier was booked last month by Unipec, China’s biggest trader, charter data compiled by
Bloomberg show. Unipec is a unit of China Petroleum & Chemical Corp., or Sinopec, China’s
largest oil refiner. A Sinopec spokesman declined to comment.
It’s unclear which grade of crude Shaden will load. LOOP is connected by a 48 inch pipeline to a
storage hub at Clovelly, 25 miles inland, which normally feeds U.S. refineries.
Washington lifted a 40-year ban on most oil exports in late 2015, in the process reshaping the
world’s energy map with U.S. crude being sent to locations including Switzerland, China, Israel
and even Arab oil rich nations such as the United Arab Emirates. The de facto export ban, which
only allowed a few exceptions, was imposed in the aftermath of a 1973 to 1974 oil embargo led by
Saudi Arabia.
Since the ban was lifted, U.S. crude oil exports have surged to a record high of 2.1 million barrels,
up from a trickle a decade ago. China and other Asian nations have become big buyers of U.S.
crude.
Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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NewBase February 14 - 2018 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil stable on weak dollar, economic growth, oversupply linger
Reuters + Bloomberg + NewBase
Oil prices were stable on Wednesday, supported by a statement that Saudi crude output would
drop in March, healthy economic growth and on a weakening U.S. dollar.
Despite this, oil prices remain well below recent highs due to signs of lingering oversupply,
including rising U.S. inventories and ample physical flows globally. U.S. West Texas Intermediate
crude futures were at $59.19 a barrel at 0636 GMT, flat from their last settlement. WTI was trading
above $65 in early February.
Brent crude futures were at $62.81 per barrel, up 9 cents from their last close. Brent was above
$70 a barrel earlier this month. The Saudi energy ministry said on Wednesday that Saudi
Aramco’s crude output in March will be 100,000 barrels per day (bpd) below its February level
while exports would be kept below 7 million bpd.
Oil price special
coverage
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Ongoing weakness in the U.S. dollar as well as economic growth were also supporting oil
markets, traders said. Despite this, some analysts warned that not all indicators were bullish.
“While we continue to see a firming fundamental backdrop over the course of this year...investors
should not discount the caution signs that have been emerging,” investment bank RBC Capital
Markets said in a note to clients.
“Pockets of oversupply have been emerging in the physical market,” the Canadian bank said. “The
tempering physical oil backdrop is ... playing a central role in the recent price softness,” it said.
The American Petroleum Institute said on Tuesday that U.S. crude inventories rose by 3.9 million
barrels in the week to Feb. 9, to 422.4 million.
That was largely due to soaring U.S. crude production, which has jumped by over 20 percent
since mid-2016 to more than 10 million bpd, surpassing that of top exporter Saudi Arabia and
coming within reach of Russia, the world’s biggest producer.
U.S. crude is also increasingly appearing on global markets, and more is set to come as the
Louisiana Offshore Oil Port starts testing supertankers for exports.
The surge in U.S. supplies means oil may be in oversupply again soon, flipping the 2017 deficit
induced by supply restraint led by the Organization of the Petroleum Exporting Countries (OPEC)
and Russia.
The International Energy Agency said expects oil demand to grow by 1.4 million bpd in 2018, but
adding that output growth could outpace demand. Citi said it expected 2018 oil markets to be
balanced or in slight oversupply, forecasting a “market surplus of 0 to 0.2 million bpd.”
OPEC and the IEA “are vastly underestimating the magnitude and sustainability of non-OPEC oil
supply growth,” Citi said. Markets are already reacting, with physical prices for crudes from the
North Sea, Russia, the United States, and Middle East becoming cheaper.
Despite the warning lights from within oil markets, economic fundamentals remain healthy. Japan
on Wednesday reported an 8th straight quarter of growth, its longest continuous expansion since
the 1980s bubble economy, Cabinet Office data showed.
Oil is being held back after its worst week in two years as fears over rising U.S. crude supplies
curb investor optimism.
Futures are trading below $60 a barrel in New York, little changed after a near 10 percent decline
last week, as forecasts for rising American crude inventories compound concern U.S. shale’s
resurgence is hampering OPEC’s efforts to shrink global supplies. More cause for worry came
after industry data on Tuesday showed stockpiles of crude and gasoline had continued to expand.
Oil has erased this year’s gains after the best start to the year in more than a decade, putting in
jeopardy the Organization of Petroleum Exporting Countries and allies’ strategy as well as prices.
While the International Energy Agency said crude inventories in developed nations are falling and
demand is rising, it warned that higher prices are stimulating more supply from American shale
drillers.
“The supplies in the U.S. are in focus once again and the increase in barrels is really happening,”
Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone from Seoul. “Until we
see more positive signs that can impact the fundamentals of the market, it may be difficult to even
maintain current prices.”
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Inventory Concerns
West Texas Intermediate for March delivery was down 0.2 percent to $59.08 a barrel at 7:39 a.m.
in London after falling as much as 36 cents on the New York Mercantile Exchange earlier. The
contract fell 10 cents to settle at $59.19 on Tuesday. Total volume traded was about 6 percent
above the 100-day average.
Brent for April settlement dropped 3 cents to $62.69 on the London-based ICE Futures Europe
exchange. The global benchmark was at a $3.77 premium to April WTI.
In the U.S., the American Petroleum Institute was said to have reported nationwide crude
stockpiles rose by 3.95 million barrels last week, while gasoline supplies expanded by 4.63 million
barrels. Meanwhile, a Bloomberg survey ahead of the government data Wednesday shows crude
inventories probably increased by 3.1 million barrels, a third-weekly gain after a record run of
declines.
“Crude oil prices will face severe pressure in the near term as rising U.S. rig countand inventories
are expected to hamper OPEC’s collective efforts,” Avtar Sandu, a senior commodities manager
at brokerage Phillip Futures Pte said in an emailed note Wednesday.
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World oil demand is foreseen to reach 98.60 mb/d in 2018
WAM/Tariq alfaham/Hassan Bashir
World oil demand is foreseen to reach 98.60 mb/d in 2018, representing growth of 1.59 mb/d, 60
thousand barrels per day higher than the previous month’s projections and mainly reflecting the
positive economic outlook, according to OPEC Monthly Oil Market Report (MOMR) for February.
''World oil demand growth in 2017 was estimated to increase by 1.60 mb/d, representing an
upward adjustment of some 30 tb/d compared to last month’s projections, mainly to reflect the
continuing better-than-expected data in OECD Europe in 3Q17.
Total world oil demand stood at 97.01 mb/d in 2017. Demand for OPEC crude in 2017 was
estimated to stand at 32.8 mb/d, some 0.6 mb/d higher than the 2016 level. In 2018, demand for
OPEC crude is forecast at 32.9 mb/d, slightly higher than the 2017 level,'' the MOMR said.
Cumulatively, between 2015 and 2017, the world has added around 5 mb/d of demand for oil
products on the back of healthy economic conditions globally and a relatively steady product price
environment.
''Middle East oil demand growth flipped into positive territory in 2017, with the two regions adding
a combined 0.13 mb/d, on the back of an uptick in economic conditions in Brazil, along with firm
growth in some countries in Middle East,'' the report added.
For 2018, it continued, the major assumptions accounted for in the oil demand forecast include: a
steady rise in global economic activities, which are projected to increase by 3.8% y-o-y;
transportation fuels – namely gasoline, jet fuel and diesel oil – are anticipated to provide the bulk
of growth in 2018, propelled by steady vehicle sales in the US, China and India; and capacity
additions as well as expansions in petrochemical sector projects, which are expected to provide
support to light distillates requirements, mainly in the US, and to a lesser extent in China.
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NewBase Special Coverage
News Agencies News Release February 14-2018
Broadest ever participation in IEA emergency response exercise
IEA
As part of its mandate to promote oil security, the International Energy Agency (IEA) conducted an
emergency response exercise (ERE) from 5-9 February 2018. While previous EREs have featured
only IEA Member Countries with some partner countries observing the exercise, last week’s
exercise featured the broadest ever real participation, with 44 countries around the globe taking
part.
The purpose of the ERE is to simulate how the IEA coordinates the release of emergency oil
stockpiles in the event of an oil supply disruption. Participants are guided through the “Initial
Contingency Response Plan” in real time, in order to help countries gain a better understanding of
the procedures and mechanisms that need to be implemented during an IEA coordinated action.
The exercise tests communication within and between participating countries and the IEA
Secretariat under time pressure, and also tests the emergency data reporting capabilities of
participating countries.
The exercise began with a training session in which participants were briefed on IEA emergency
response procedures during a crisis. Following the training session, participants worked to
develop strategies to respond to a realistic, hypothetical supply disruption scenario.
Previous EREs have simulated major disruptions to global oil supplies, ranging from large-scale
natural disasters to geopolitical conflicts. Participating countries watch the details of the situation
unfold through a series of simulated news clips, which are followed by discussion on possible
courses of action.
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This year’s ERE featured all 29 IEA member countries, IEA Accession countries Chile and
Mexico, Association countries China, India, Indonesia, Morocco, and Thailand and via the
European Commission the eight EU countries that are not a member of the IEA. In total, countries
representing some 70% of global oil demand participated in the exercise, compared to only 46% if
it had been limited to IEA Members alone.
“I believe this is a good example of the concrete benefits of our modernisation strategy,” said IEA
Executive Director Dr Fatih Birol, “It underscores the synergies between our efforts to open the
doors of the IEA to emerging economies and the IEA’s core mandate of enhancing energy
security.”
Since the creation of the IEA, there have been three collective actions: in the buildup to the Gulf
War in 1991; after Hurricanes Katrina and Rita damaged offshore oil rigs, pipelines and oil
refineries in the Gulf of Mexico in 2005; and in response to the prolonged disruption of oil supply
caused by the Libyan Civil War in 2011.
Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 28 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase February 2018 K. Al Awadi
Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
Thank you for sharing with us your comments and thoughts on the above issue, similarly we would like to share with our daily
publications on Energy news via own NewBase Energy News - call us for details khdmohd@hawkenergy.net
Your Energy Consultant for the GCC area
Khaled Al Awadi
Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Ne base 14 feruary 2018 energy news issue 1141 by khaled al awadi

  • 1. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 14 February 2018 - Issue No. 1141 Senior Editor Eng. Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE: Dewa, Siemens to launch solar-driven electrolysis facility Siemens + Trade Arabia + NewBase + Dubai Expo 2020 Bureau Dubai Expo 2020 Bureau, the organisers of the upcoming mega event, said it has signed an agreement with Dubai Electricity and Water Authority (Dewa) and global technology giant Siemens to launch a pilot project for the region’s first solar-driven hydrogen electrolysis facility. The announcement came during the sixth edition of the World Government Summit (WGS 2018) held on February 12. Dewa’s outdoor testing facilities at the Mohammed bin Rashid Al Maktoum Solar Park in Dubai have been selected for the project, reported state news agency Wam. The facility aims at testing and showcasing an integrated MW-scale plant to produce hydrogen using renewable energy from solar photovoltaic at the Solar Park, store the gas, and then deploy for either re-electrification, transportation or other industrial uses, it stated. Hydrogen technologies will accelerate renewable energy integration and deployment in the region and pave the way for the transition to a sustainable and green economy in the UAE, it added. Dewa and Expo 2020 Dubai intend to use fuel-cell vehicles powered by the green hydrogen generated at the facility, stated Reem bint Ibrahim Al Hashimy, Minister of State for International Co-operation and Director-General of Dubai Expo 2020 Bureau after signing the MoU with Saeed Mohammed Al Tayer, the managing director and CEO of Dewa, and Joe Kaeser, the president and CEO of Siemens. Visitors of Expo 2020 Dubai will be able to visit the key facilities at the Solar Park. Live data of the green hydrogen electrolysis will be displayed at Expo 2020 Dubai, said the Wam report.
  • 2. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 "This project will not only result in the development of the region’s first solar-driven hydrogen electrolysis facility, but is an example of what can be achieved through collaboration between Expo 2020 Dubai and our partners, truly embodying the Expo theme of ‘Connecting Minds, Creating the Future’," remarked Al Hashimy. "The exhibition will be a celebration of creativity and innovation, providing a platform for new sustainable technologies like this to be presented to a global audience of millions, and help us move towards a cleaner, greener future," she added. Al Tayer said the MoU is in line with the vision of the Vice President, Prime Minister and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, to increase the share of Dubai’s total power output from clean energy sources to 75 per cent by 2050 through the Dubai Clean Energy Strategy 2050. "It also supports Expo 2020 Dubai's themes to promote sustainability and innovation and Dewa’s efforts to contribute to hosting the best edition of Expo in Dubai. This is part of our partnership with Expo 2020 Dubai, as the official sustainable energy partner," he added. Kaeser dubbed it as a truly landmark project for Dubai and the world, and a great step forward in building a secure supply of sustainable energy for the region’s economic development. "Green hydrogen can be a fuel of the future. It will accelerate the adoption of renewable energy in the Middle East through sector coupling, offering new use cases, such as e-Mobility and other environment-friendly industries," he added.
  • 3. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 Oman:New oil discoveries, hopes of further finds in Blocks 3&4 Oman Observer -Conrad Prabhu Swedish based international energy firm Tethys Oil says it expects to invest around $60 million in its Oman operations during 2018, the bulk of which is earmarked as its share of investments in the further development of the onshore producing Blocks 3&4 located in the eastern part of the country. The new investments come against a backdrop of positive developments for the company, which added a new 100 per cent owned and operated concession (Block 49) to its assets in the Sultanate. New oil discoveries uncovered in 2017 have buoyed hopes for stronger reserves growth and higher output going forward, Magnus Nordin (pictured), Managing Director, said. “In 2018, Tethys Oil expects investments in Oman to amount to $53-62 million, the bulk of which will be spent on Blocks 3&4. The work programme will of course include the appraisal of the discoveries and the new seismic area as well as further exploration wells. Included is also upgrading of the infrastructure and production drilling on the older fields. On Block 49 work has commenced but, at least initially, at a lower pace than on Blocks 3&4,” Nordin stated in comments on the company’s 2017 performance and outlook for 2018. Among the highlights of the past year was the discovery of “significant amounts” of oil in new structures near its producing fields in Block 3&4, said the Managing Director. Tethys Oil has a 30 per cent interest in the two adjoining blocks, spread over a total area of 29,130 sq km. Independent oil and gas exploration and production company CC Energy Development (CCED) is the operator of the Block with a 50 per cent interest, while Mitsui has the balance 20 per cent interest.
  • 4. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 “The Erfan, Ulfa and Samah discoveries are all undergoing long term production tests and thus already contribute to our production,” said Nordin. “A major focus for 2018 will be to complete the appraisal programmes on these discoveries and develop them into new oilfields and in the process mature the resources into reserves,” he noted. Besides bolstering contingent and 2P reserves (the sum of proved and probable reserves), the new discoveries have also led to heightened optimism about the potential of leads and prospects so far identified in the blocks, according to the Managing Director. “In the area just east of the Ulfa discovery, we have some ten leads which will be evaluated by the ongoing 3D seismic study covering 1,200 km2. Naturally we hope to mature the majority of these leads into drillable prospects.” Production from the new discoveries is expected to have a positive impact on the performance of the two blocks, he stressed. “Production from the appraisal programmes and long term production tests of the Erfan, Ulfa and Samah will contribute to 2018 and we would expect future production from the discoveries to account for an increasing share of overall production. Production may from time to time also be impacted by the Opec production quota arrangement,” he added. While Oman represents Tethys Oil’s core upstream focus, the Swedish firm also has onshore exploration licences in Lithuania and France and some production as well. About Tethys Oil’s Oman core area is Oman. Oman is strategically located on the tip of the eastern Arabian Peninsula, neighbouring the United Arab Emirates in the northwest, Saudi Arabia in the west and Yemen in the southwest. Oman overlooks the Arabian Sea, the Sea of Oman and the Arabian Gulf. Blocks 3 & 4 Tethys Oil’s most significant asset in Oman is Blocks 3 & 4. The blocks are located in the eastern part of Oman and cover an area of 29,130 square kilometres. Tethys Oil acquired the company’s interest in the blocks in 2007. In 2010, an early production system was launched. In 2012, the Field Development Plan was approved and the exploration and production terms for the licence were extended until 2040.
  • 5. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 Oman: PDO, GlassPoint inaugurate Miraah Solar Plant Oman Observer Under the patronage of Salim bin Nasser al Aufi, Under-Secretary of the Ministry of Oil and Gas, Petroleum Development Oman (PDO) and GlassPoint Solar have inaugurated the Miraah solar plant yesterday. Miraah, located at the Amal oilfield in the south of the Sultanate, will be among the world’s largest solar projects when completed. Four blocks of the plant have now been constructed safely, on time and on budget with steam production integrated with the Amal network. The event also marked the official opening of the Miraah Visitor Centre with more than 200 guests in attendance, including representatives from both the public and private sectors. “Today marks an important milestone for Oman as it further cements its position as the regional leader in energy convergence, uniting renewable and conventional energy industries. Deploying solar on Oman’s oilfields to reduce the industry’s natural gas consumption has a significant and lasting economic benefit for the Sultanate,” Al Aufi said. Miraah will generate real In-Country Value (ICV) and create job opportunities for Omanis, largely from future supply chain development and gas savings directed to other industries. Al Aufi added, “The project, which stands to be among the largest solar projects in the world, has contributed to developing local Omani talent in the renewable energy field and created job opportunities for local companies. We look forward to exporting our knowledge and expertise to the rest of the world as other progressive oil and gas producers follow in PDO’s footsteps.” Miraah’s construction has progressed on schedule with 1.9 million safe man-hours completed without a Lost Time Incident since the project started in 2015.
  • 6. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 The first four blocks were commissioned successfully and the facility is now in daily operation delivering steam to the Amal oilfield. The four blocks have a total capacity of over 100 MWt and will deliver 660 tonnes of steam per day, providing significant gas savings. Once complete, the one gigawatt installation will consist of 36 blocks built in a sequence, which allows PDO to benefit from solar steam now and gradually ramp-up production over time to meet the Amal oilfield’s steam demand. The project is on track to deliver an additional eight blocks in early 2019. “This is a very proud day for PDO and our partners GlassPoint Solar. Miraah provides a simple yet innovative solution that allows us to develop our heavy oil, while at the same time reducing energy consumption and costs,” said PDO Managing Director Raoul Restucci. “For PDO, Miraah represents an important step in our journey to become a fully-fledged energy company, as well as placing the Sultanate firmly on the global renewable energy map with this pioneering project,” he added. GlassPoint’s solar technology was specifically designed to harness the sun’s energy to generate the steam required for thermal enhanced oil recovery (EOR), seamlessly integrating into existing oilfield operations. The natural gas saved by using GlassPoint’s technology can be exported or directed towards higher-value applications such as power generation or industrial development, helping to diversify the economy. “Today, alongside our partner PDO, we are ushering in a new era for renewables here in the Sultanate and for the broader oil and gas industry,” said Ben Bierman, Chief Operating Officer and Acting CEO of GlassPoint. “The current climate of low oil prices and the transition to cleaner energy sources, validates the important work we have achieved together with Miraah. Oman is becoming an epicentre of
  • 7. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 excellence for using solar energy to power oilfield operations and overcome today’s energy challenges.” Unlike solar panels that generate electricity, GlassPoint’s solution uses large mirrors to concentrate sunlight and boil oilfield water directly into steam. The steam is used for the extraction of viscous or heavy oil as an alternative to steam generated from natural gas. GlassPoint’s innovation was to bring the mirrors and other system components indoors, using a greenhouse structure to protect from wind and sand, which is common in remote oilfields like Amal. The greenhouse enables major cost and performance advantages compared to exposed solar designs, from reducing overall material usage to automated washing operations. GlassPoint’s partnership with PDO began over seven years ago when they built the first solar EOR project in the Middle East. The 7 MWt pilot project proved the effectiveness and cost efficiency of GlassPoint’s technology and led to significant learnings and design improvements. No other technology has been proven successfully for oil and gas operations. GlassPoint’s track record in Oman has led to the company’s expansion in new markets, including the recently announced project with oil and gas producer Aera Energy to build the largest solar plant in California, USA.
  • 8. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 India's Oil Consumption Grows at Fastest Pace in 14 Months Bloomberg + NeBase Oil demand in India rose 10.3 percent in the first month of 2018, the fourth straight monthly gain. Total oil consumption expanded at the fastest pace in 14 months to 16.9 million tons from 15.3 million a year ago, according to the oil ministry’s Petroleum Planning and Analysis Cell. Improvement in road freight transport following the stabilization of the new nationwide sales tax and growing use of cars and scooters boosted the consumption. The growth in demand came over a low base as in January last year the nation’s oil consumption fell the most in 13 years following the government’s crackdown on high-value currency notes. • Diesel usage gained 14.5 percent to 6.65 million tons • Gasoline consumption rose 15.6 percent to 2.09 million tons • Demand for liquefied petroleum gas increased 4.6 percent to 2.08 million tons • Petroleum coke usage rose 9.2 percent to 1.98 million tons The International Energy Agency sees India to be the center of global oil demand growth until 2030. The nation expects to double gasoline and diesel consumption by that year even as it aspires to sell only electric vehicles in 2030. The two fuels account for more than half of India’s oil usage. The Society of Indian Automobile Manufacturers expects India’s passenger vehicles sales to expand 9 percent in the year ending March. The new goods and services tax does not include oil products at present.
  • 9. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 America's Supertanker Terminal Set to Export Oil for the First Time Bloomberg + NewBase The flood of crude leaving the U.S. could be about to get a major boost: the nation’s top imports terminal is testing one of the industry’s biggest tankers to load an export cargo for the first time. If the trial run signals the start of regular exports from Louisiana Offshore Oil Port, it will be a step change in America’s capacity to export the burgeoning production that’s roiled global oil markets. The ability to load very large crude carriers, the industry term for giant ships able to carry two million barrels, will significantly cut the cost of shipping cargoes overseas. On its website, the terminal said it’s testing a supertanker following modifications last year to allow crude exports. Shipping data compiled by Bloomberg and cargo tracking firm Kpler show the tanker is the Saudi Arabian-owned Shaden, chartered by China’s largest oil trader last month. LOOP has been a vital piece of U.S. energy infrastructure for more than 30 years, handling imports from across the world as well as gathering crude pumped from deepwater deposits in the Gulf of Mexico. LOOP LLC moored the supertanker and “initiated its detailed test and checkout procedure,” the operator said on its website, without elaborating. The company said in July that it would seek customer interest in loading services, modifying its facilities to allow the port to operate “bi- directionally” to handle exports. Infrastructure such as pipelines and ports has become the biggest bottleneck in U.S. oil exports, with traders at times engineering logistically complex chains combining railways, trucks, pipelines, barges, and a ship-to-ship transfers to get the crude out of the country. As U.S. output surpasses the record high of 10 million barrels a day set in 1970, trading houses, pipeline owners and ports are investing in new infrastructure to ship more American crude overseas.
  • 10. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 While U.S. crude has already been exported using supertankers, other ports are too shallow to allow full loadings, meaning smaller ships must shuttle multiple cargoes to the giant vessels as they wait to load offshore. LOOP, because of the depth of the waters around it, would allow the industry’s largest tankers to load in one go. The tanker Shaden is owned by the National Shipping Co. of Saudi Arabia, according to data from IHS Maritime. It left the Middle East country’s biggest export terminal on about Dec. 20, delivering its cargo to the U.S. Gulf of Mexico earlier this month. The carrier was booked last month by Unipec, China’s biggest trader, charter data compiled by Bloomberg show. Unipec is a unit of China Petroleum & Chemical Corp., or Sinopec, China’s largest oil refiner. A Sinopec spokesman declined to comment. It’s unclear which grade of crude Shaden will load. LOOP is connected by a 48 inch pipeline to a storage hub at Clovelly, 25 miles inland, which normally feeds U.S. refineries. Washington lifted a 40-year ban on most oil exports in late 2015, in the process reshaping the world’s energy map with U.S. crude being sent to locations including Switzerland, China, Israel and even Arab oil rich nations such as the United Arab Emirates. The de facto export ban, which only allowed a few exceptions, was imposed in the aftermath of a 1973 to 1974 oil embargo led by Saudi Arabia. Since the ban was lifted, U.S. crude oil exports have surged to a record high of 2.1 million barrels, up from a trickle a decade ago. China and other Asian nations have become big buyers of U.S. crude.
  • 11. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 NewBase February 14 - 2018 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Oil stable on weak dollar, economic growth, oversupply linger Reuters + Bloomberg + NewBase Oil prices were stable on Wednesday, supported by a statement that Saudi crude output would drop in March, healthy economic growth and on a weakening U.S. dollar. Despite this, oil prices remain well below recent highs due to signs of lingering oversupply, including rising U.S. inventories and ample physical flows globally. U.S. West Texas Intermediate crude futures were at $59.19 a barrel at 0636 GMT, flat from their last settlement. WTI was trading above $65 in early February. Brent crude futures were at $62.81 per barrel, up 9 cents from their last close. Brent was above $70 a barrel earlier this month. The Saudi energy ministry said on Wednesday that Saudi Aramco’s crude output in March will be 100,000 barrels per day (bpd) below its February level while exports would be kept below 7 million bpd. Oil price special coverage
  • 12. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 Ongoing weakness in the U.S. dollar as well as economic growth were also supporting oil markets, traders said. Despite this, some analysts warned that not all indicators were bullish. “While we continue to see a firming fundamental backdrop over the course of this year...investors should not discount the caution signs that have been emerging,” investment bank RBC Capital Markets said in a note to clients. “Pockets of oversupply have been emerging in the physical market,” the Canadian bank said. “The tempering physical oil backdrop is ... playing a central role in the recent price softness,” it said. The American Petroleum Institute said on Tuesday that U.S. crude inventories rose by 3.9 million barrels in the week to Feb. 9, to 422.4 million. That was largely due to soaring U.S. crude production, which has jumped by over 20 percent since mid-2016 to more than 10 million bpd, surpassing that of top exporter Saudi Arabia and coming within reach of Russia, the world’s biggest producer. U.S. crude is also increasingly appearing on global markets, and more is set to come as the Louisiana Offshore Oil Port starts testing supertankers for exports. The surge in U.S. supplies means oil may be in oversupply again soon, flipping the 2017 deficit induced by supply restraint led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia. The International Energy Agency said expects oil demand to grow by 1.4 million bpd in 2018, but adding that output growth could outpace demand. Citi said it expected 2018 oil markets to be balanced or in slight oversupply, forecasting a “market surplus of 0 to 0.2 million bpd.” OPEC and the IEA “are vastly underestimating the magnitude and sustainability of non-OPEC oil supply growth,” Citi said. Markets are already reacting, with physical prices for crudes from the North Sea, Russia, the United States, and Middle East becoming cheaper. Despite the warning lights from within oil markets, economic fundamentals remain healthy. Japan on Wednesday reported an 8th straight quarter of growth, its longest continuous expansion since the 1980s bubble economy, Cabinet Office data showed. Oil is being held back after its worst week in two years as fears over rising U.S. crude supplies curb investor optimism. Futures are trading below $60 a barrel in New York, little changed after a near 10 percent decline last week, as forecasts for rising American crude inventories compound concern U.S. shale’s resurgence is hampering OPEC’s efforts to shrink global supplies. More cause for worry came after industry data on Tuesday showed stockpiles of crude and gasoline had continued to expand. Oil has erased this year’s gains after the best start to the year in more than a decade, putting in jeopardy the Organization of Petroleum Exporting Countries and allies’ strategy as well as prices. While the International Energy Agency said crude inventories in developed nations are falling and demand is rising, it warned that higher prices are stimulating more supply from American shale drillers. “The supplies in the U.S. are in focus once again and the increase in barrels is really happening,” Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone from Seoul. “Until we see more positive signs that can impact the fundamentals of the market, it may be difficult to even maintain current prices.”
  • 13. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 Inventory Concerns West Texas Intermediate for March delivery was down 0.2 percent to $59.08 a barrel at 7:39 a.m. in London after falling as much as 36 cents on the New York Mercantile Exchange earlier. The contract fell 10 cents to settle at $59.19 on Tuesday. Total volume traded was about 6 percent above the 100-day average. Brent for April settlement dropped 3 cents to $62.69 on the London-based ICE Futures Europe exchange. The global benchmark was at a $3.77 premium to April WTI. In the U.S., the American Petroleum Institute was said to have reported nationwide crude stockpiles rose by 3.95 million barrels last week, while gasoline supplies expanded by 4.63 million barrels. Meanwhile, a Bloomberg survey ahead of the government data Wednesday shows crude inventories probably increased by 3.1 million barrels, a third-weekly gain after a record run of declines. “Crude oil prices will face severe pressure in the near term as rising U.S. rig countand inventories are expected to hamper OPEC’s collective efforts,” Avtar Sandu, a senior commodities manager at brokerage Phillip Futures Pte said in an emailed note Wednesday.
  • 14. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 World oil demand is foreseen to reach 98.60 mb/d in 2018 WAM/Tariq alfaham/Hassan Bashir World oil demand is foreseen to reach 98.60 mb/d in 2018, representing growth of 1.59 mb/d, 60 thousand barrels per day higher than the previous month’s projections and mainly reflecting the positive economic outlook, according to OPEC Monthly Oil Market Report (MOMR) for February. ''World oil demand growth in 2017 was estimated to increase by 1.60 mb/d, representing an upward adjustment of some 30 tb/d compared to last month’s projections, mainly to reflect the continuing better-than-expected data in OECD Europe in 3Q17. Total world oil demand stood at 97.01 mb/d in 2017. Demand for OPEC crude in 2017 was estimated to stand at 32.8 mb/d, some 0.6 mb/d higher than the 2016 level. In 2018, demand for OPEC crude is forecast at 32.9 mb/d, slightly higher than the 2017 level,'' the MOMR said. Cumulatively, between 2015 and 2017, the world has added around 5 mb/d of demand for oil products on the back of healthy economic conditions globally and a relatively steady product price environment. ''Middle East oil demand growth flipped into positive territory in 2017, with the two regions adding a combined 0.13 mb/d, on the back of an uptick in economic conditions in Brazil, along with firm growth in some countries in Middle East,'' the report added. For 2018, it continued, the major assumptions accounted for in the oil demand forecast include: a steady rise in global economic activities, which are projected to increase by 3.8% y-o-y; transportation fuels – namely gasoline, jet fuel and diesel oil – are anticipated to provide the bulk of growth in 2018, propelled by steady vehicle sales in the US, China and India; and capacity additions as well as expansions in petrochemical sector projects, which are expected to provide support to light distillates requirements, mainly in the US, and to a lesser extent in China.
  • 15. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 NewBase Special Coverage News Agencies News Release February 14-2018 Broadest ever participation in IEA emergency response exercise IEA As part of its mandate to promote oil security, the International Energy Agency (IEA) conducted an emergency response exercise (ERE) from 5-9 February 2018. While previous EREs have featured only IEA Member Countries with some partner countries observing the exercise, last week’s exercise featured the broadest ever real participation, with 44 countries around the globe taking part. The purpose of the ERE is to simulate how the IEA coordinates the release of emergency oil stockpiles in the event of an oil supply disruption. Participants are guided through the “Initial Contingency Response Plan” in real time, in order to help countries gain a better understanding of the procedures and mechanisms that need to be implemented during an IEA coordinated action. The exercise tests communication within and between participating countries and the IEA Secretariat under time pressure, and also tests the emergency data reporting capabilities of participating countries. The exercise began with a training session in which participants were briefed on IEA emergency response procedures during a crisis. Following the training session, participants worked to develop strategies to respond to a realistic, hypothetical supply disruption scenario. Previous EREs have simulated major disruptions to global oil supplies, ranging from large-scale natural disasters to geopolitical conflicts. Participating countries watch the details of the situation unfold through a series of simulated news clips, which are followed by discussion on possible courses of action.
  • 16. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 This year’s ERE featured all 29 IEA member countries, IEA Accession countries Chile and Mexico, Association countries China, India, Indonesia, Morocco, and Thailand and via the European Commission the eight EU countries that are not a member of the IEA. In total, countries representing some 70% of global oil demand participated in the exercise, compared to only 46% if it had been limited to IEA Members alone. “I believe this is a good example of the concrete benefits of our modernisation strategy,” said IEA Executive Director Dr Fatih Birol, “It underscores the synergies between our efforts to open the doors of the IEA to emerging economies and the IEA’s core mandate of enhancing energy security.” Since the creation of the IEA, there have been three collective actions: in the buildup to the Gulf War in 1991; after Hurricanes Katrina and Rita damaged offshore oil rigs, pipelines and oil refineries in the Gulf of Mexico in 2005; and in response to the prolonged disruption of oil supply caused by the Libyan Civil War in 2011.
  • 17. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE The Editor :”Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced daily (Sunday to Thursday) and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscription emails please contact Hawk Energy Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 Mobile: +97150-4822502 khdmohd@hawkenergy.net khdmohd@hotmail.com Khaled Al Awadi is a UAE National with a total of 28 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation, operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally, via GCC leading satellite Channels. NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase February 2018 K. Al Awadi
  • 18. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18 Thank you for sharing with us your comments and thoughts on the above issue, similarly we would like to share with our daily publications on Energy news via own NewBase Energy News - call us for details khdmohd@hawkenergy.net Your Energy Consultant for the GCC area Khaled Al Awadi
  • 19. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19
  • 20. Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20 For Your Recruitments needs and Top Talents, please seek our approved agents below