New base 02 november 2021 energy news issue 1467 by khaled al awadi

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NewBase Energy News 02 November No. 1467 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Aramco Earnings Surge on Higher Oil Output and Prices
Bloomberg - Matthew Martin and Paul Wallace
Saudi Aramco’s shares rose to a record after the oil giant’s earnings more than doubled from a year
ago.
Third-quarter net profit climbed to 114 billion riyals ($30.4 billion), beating analysts’ estimates
slightly, as crude prices and the company’s production increased. Free cash flow was $28.7 billion,
easily covering the quarterly dividend of $18.8 billion.
Aramco and its Big Oil rivals have benefited from the global economic recovery, which has helped
push crude up by more than 60% this year to around $83 a barrel.
Income was also lifted by higher oil output as Saudi Arabia ended unilateral supply cuts
implemented earlier this year as part of an OPEC+ deal. The kingdom’s crude production averaged
9.6 million barrels a day between July and September, up from 8.5 million in the second quarter.
“Some headwinds still exist for the global economy, partly due to supply chain bottlenecks, but we
are optimistic that energy demand will remain healthy for the foreseeable future,” Chief Executive
Officer Amin Nasser said in a statement on Sunday.

Last year, Aramco was struggling to fund its dividend after energy prices tanked with the spread of
the coronavirus. The world’s biggest oil firm made net income of just $12 billion in the third quarter
of 2020.
On Sunday, Aramco’s shares rose as much as 1.5% to a record 38.30 riyals, before paring gains to
37.90 riyals. They have increased 8.3% this year, taking the firm’s market value above $2 trillion.
The company will release more detail financial statements on Monday, including for its upstream
and downstream units.
Eyes on Dividend
Aramco’s annual dividend of $75 billion, the world’s largest, is a crucial source of funding for Saudi
Arabia. The government, which owns 98% of the company, is trying to narrow a budget deficit that
ballooned last year with the energy-price crash.
Yet, even with crude prices surging, Aramco has eschewed calls from some analysts to pay out
more cash to shareholders. Instead, the company has used its cash to reduce gearing, which has
fallen to 17.2% from 23% at the end of 2020.
Aramco is also sticking with its plans to spend about $35 billion on capital expenditure this year.
Part of that will go toward boosting oil-production capacity to 13 million barrels a day from 12 million
-- a project meant to be completed in 2027.

Saudi petchem giant Sabic to invest $1.37bn in UK plant
ArabiaNews + NewBase
Petrochemicals giant Saudi Basic Industries Corporation (Sabic) has announced plans to invest
nearly £1 billion ($1.37 billion) at its plant in Teesside located north of England.
The investment will go into strengthening operations at Teesside and enabling its chemical cracker
transformation, stated the Saudi company.
"This will reduce its carbon footprint by up to 60 per cent in phase one, making it one of the world’s
lowest carbon-emitting crackers," it added.
Welcoming the news, Prime Minister Boris Johnson said: "Fantastic to see nearly £1 billion invested
in Sabic's Teesside facility, creating and safeguarding 1,000 jobs. It's a huge vote of confidence in
the UK's chemicals and processing industry, which is pioneering innovation in clean, green
technology."
Sabic has manufacturing units across the globe including in the Americas, Europe, the Middle East
and the Asia Pacific. It produces chemicals, commodity and high-performance plastics, agri-
nutrients and metals. The company’s total production reached 60.8 million metric tonnes in 2020.
Saudi Aramco, the world’s largest oil-exporting company, which has a 70 per cent stake in Sabic,
also announced plans to become carbon neutral by 2050 in line with the kingdom’s goals to cut
emissions to protect the environment earlier this week. The kingdom has set a target of achieving
net-zero carbon emissions by 2060.

Sabic outlines plans for carbon neutrality
Sabic has outlined plans to achieve carbon neutrality from global operations including reducing the
carbon footprint of its cracker at Teesside, UK by up to 60% in phase one, making it one of the
world’s lowest carbon-emitting crackers.
In the second phase, a carbon
neutrality feasibility study will
be undertaken via use of
hydrogen as a fuel source,
Sabic said attending the fifth
Future Investment Initiative
(FII) where it is a strategic
partner. Sabic has total
investment in UK around 1
billion pounds ($1.37 billion).
Sabic is already contributing to
the Circular Carbon Economy
through a range of landmark
developments, including plastic chemical recycling, renewable energy deployment and its operation
of the world’s largest CO2 capture and purification plant in Jubail.
Earlier this year, the company also confirmed new collaborations aimed at developing and
demonstrating solutions for electrically heated steam cracker furnaces; and establishing the world’s
first large-scale chemical site to operate on 100% renewable power.
Earlier this week, at the Saudi Green Initiative conference in Riyadh, Saudi Crown Prince
Mohammed Bin Salman had pledged to make Saudi Arabia carbon neutral by 2060.
Sabic Vice Chairman and CEO, Yousef Al-Benyan said: “The aspiring targets set by His Royal
Highness provide the foundation for a brighter, more sustainable future. As Saudi Arabia transforms
towards carbon neutrality, the ripple effects will deliver significant benefits for the rest of the world.
“Saudi Arabia’s ambition is already inspiring more countries and regions to step up. As a proud
Saudi company and an industry leader, Sabic is pleased to share our innovative technologies and
invest for the future.”
Now in its fifth edition, the three-day FII conference from October 25 in Riyadh gathered together
global leaders from business, government, and investment to focus actions on the theme ‘Invest in
Humanity’.
This year’s FII brought together more than 250 top international speakers and facilitated discussions
revolving around the investments which can create the greatest benefits for humanity. The
conference included interactive summits on Investing in Education; Investing in the Metaverse; and
investing in Environmental, Social and Governance (ESG).
Sabic leadership also participated in a Saudi-UK Roundtable organized by the ministry of
investment and led by Khaled Al-Faleh Saudi Investment Minister and Lord Grimstone UK
Investment Minister. --

Egypt: Eni make 3 discoveries in Egypt's western desert has 50
million barrels of oil equivalent …. WION Web Team + NewBase
Italian energy group Eni made three oil and gas discoveries in Egypt's western desert with reserves
amounting to about 50 million barrels of oil equivalent, Egypt's Petroleum Ministry announced on
Tuesday.
The Egyptian Ministry of Petroleum and Mineral Resources stated on Tuesday that Eni, an Italian
multinational oil and gas corporation, has found three oil and gas discoveries in Egypt's Western
Desert.
"Eni made three fresh finds in Egypt's
Western Desert, in the Meleiha
Development Concession and
southwest of Meleiha," the ministry
stated in a statement.
According to the announcement, the
finds in the Meleiha Development
Concession were found via the Yasmin
W-1X and MWD-21 wells, which were
drilled in the Aman region near the
West Meleiha deep field, respectively.
The Yasmin W-1X well lies 5
kilometers west of the Yasmin field,
according to the ministry, and
production tests revealed that it has a
daily capacity of 2,000 barrels of light
oil and 7 million cubic feet of
associated gas.
In the meanwhile, the MWD-21 well
has been consistently producing 2,500
barrels of light oil per day.
The SWM-4X well, located 35 kilometers south of the Meleiha field, was used to make the find in
the South West Meleiha concession area, according to the ministry.
This well produced around 1,500 barrels of oil per day during tests.
The combined output of the three wells is around 6000 barrels of oil equivalent per day.
Eni has had a presence in Egypt since 1954, through its subsidiary IEOC Production.
IEOC now produces around 360,000 boepd of equity.

China sets target coal price in bid to ease power crunch - sources
Reuters
China's state planner has set an immediate price target for thermal coal in its most direct intervention
yet to cool the market for the key power-generating fuel amid a severe power crunch, trading and
power firm sources told Reuters.
The price target was revealed at meetings on Tuesday and Wednesday between the National
Development & Reform Commission (NDRC) and coal miners and distributors, as well as power
firms. Chinese coal futures slumped again on Thursday and have nearly halved from a record high
on Oct. 19.
China Energy coal-fired power plant is pictured in Shenyang, Liaoning province, China September
The top macro planner wants to cap ex-mine pit prices for 5,500 kilocalorie thermal coal at 1,200
yuan ($187.56) a tonne, sources said, well below the 1,450-1,900 yuan a tonne price cited by traders
on Wednesday in top coal producing regions of Inner Mongolia and Shanxi.
"The 1,200 yuan level appears to be the first target the NDRC is zooming in at, before pushing them
further lower, maybe by another 300 or 400 yuan," said a trader, who like others interviewed by
Reuters requested anonymity due to the sensitivity of the topic.
However, 1,200 yuan a tonne would still be above the break-even rate for power generators, which
analysts estimated at between 600 and 1,000 yuan depending on the region.
Top state-controlled power producers Huaneng Power International (600011.SS) and Datang
International Power Generation Co (601991.SS) are set to post steep falls in net income for the third
quarter due to surging fuel costs. read more

The NDRC said Wednesday's meeting "focused on the reasonable price range and profit margin
that should be maintained to promote the coordinated and sustainable development of the coal
industry and downstream power industries." read more
It did not disclose a price level, but three major coal producers said on Wednesday they would fix
ceilings for prices of thermal coal at 1,200 yuan ($188) a tonne for the winter heating season. The
most-traded thermal coal futures contract on the Zhengzhou Commodity Exchange fell 13% on
Thursday to 1,033.8 yuan ($161.47) per tonne, hitting the daily trading limit.
Coal futures have slumped 47.8% from a record high of 1,982 yuan on Oct. 19, falling to their lowest
level since Sept. 17. They are still up nearly double for the year.
HOLD PRICES LOWER
"There have been meetings almost every single day. The message is clear - to hold the prices down,
said a Beijing-based analyst.
"We're anticipating Beijing to
take unprecedented steps to
ease the power/coal crisis,
though the power rationing risk
may persist over the winter
while coal price may continue
going down from current level."
In the longer-run, the NDRC on
Wednesday proposed
benchmark guidance of 440
yuan per tonne at ex-pit levels,
with an allowed 20% upward
float, according to several
sources with knowledge of the
discussions.
The NDRC did not immediate
respond to a request for comment on the target prices. Local authorities will be responsible for
guiding the prices that coal dealers and distributors charge retail consumers as well as intervening
where necessary, the sources added.
The more aggressive price targets, which some traders said would be difficult to achieve, are
designed to last through this winter but are pending a final nod from the Chinese State Council, or
cabinet, sources said.
Wednesday's meeting also aimed to identify firms deliberately inflating coal prices, the state planner
said. Along with the market regulator, it has sent four teams to carry out "special supervision" of
spot coal prices in the top three production regions.
These are the provinces of Shanxi, Shaanxi and Inner Mongolia and the major coal port of
Qinhuangdao in the central province of Hebei, among northern ports. On Tuesday, the planner said
it was studying a new mechanism to guide thermal coal prices into a reasonable range over the long
run. read more
On Wednesday, the State Council said it would defer taxes of about 17 billion yuan in the fourth
quarter to help coal and heating firms resolve operational woes, and also ease taxes on some
manufacturing firms. ($1=6.4023 Chinese yuan renminbi)

NewBase 02 November 31-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices rise clamping near $85 per Barrel with stable Supplies
NewBase + Reuters
Oil prices rose on Tuesday as key producer group OPEC undershot its expected pace of output
increases last month, while the world’s top oil consumer China ramped up operating rates to meet
a spike in diesel demand.
Brent crude futures are stable for days near to $85 while U.S. West Texas Intermediate (WTI) crude
futures is near $84 a barrel.
“Crude prices still seemed poised to head higher, with some traders waiting for confirmation after
both the EIA crude oil inventory shows demand for most products are headed in the right direction,
while U.S. production is stable and with OPEC+ sticking to their gradual 400,000 bpd increase plan,”
said Edward Moya, senior analyst at OANDA.
Oil rallied to multi-year highs last week, helped by a post-pandemic demand rebound and the
Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, sticking to
Oil price special
coverage

gradual, monthly production increases of 400,000 barrels per day (bpd), despite calls for more oil
from major consumers.
The increase in OPEC’s oil output in October fell short of the rise planned under a deal with allies,
a Reuters survey found on Monday, as involuntary outages in some smaller producers offset higher
supplies from Saudi Arabia and Iraq.
OPEC pumped 27.50 million barrels per day (bpd) in October, the survey found, a rise of 190,000
bpd from the previous month but below the 254,000-increase permitted under the supply deal.
Meanwhile, national oil firms in China have ramped up refinery run rates, increasing its appetite for
crude oil, to avert a diesel shortage in the world’s second-largest oil user.
U.S. crude oil stocks were expected to have risen last week, while gasoline and distillate inventories
were seen falling, a preliminary Reuters poll showed on Monday.
The poll was conducted ahead of reports from the American Petroleum Institute, an industry group,
due on Tuesday, and the EIA, statistical arm of the U.S. Department of Energy, due on Wednesday.

NewBase Special Coverage
The Energy world – Nov-02 -2021
What’s at stake at the COP26 climate summit? Here’s a guide to
the make-or-break issues … Sam Meredith@SMEREDITH19
KEY POINTS
 The major climate event, known as COP26, will take place in Glasgow, Scotland from Sunday
through to Nov. 12.
 Climate scientists have repeatedly stressed that the best weapon to tackle rising global
temperatures is to cut greenhouse gas emissions — fast.
 Johan Rock Strom, director of the Potsdam Institute for Climate Impact Research and one of
the world’s most influential Earth scientists, told CNBC that he believes the success of
COP26 will come down to negotiations on five make-or-break issues.
World leaders are under huge pressure to outline how they plan to reduce emissions and
mitigate climate change at one of the most important diplomatic summits in history.
The major climate event, known as COP26, will take place in Glasgow, Scotland from Sunday
through to Nov. 12. It was initially scheduled to be held last year but was delayed due to the
coronavirus pandemic.
Diplomats and world leaders have sought to downplay expectations of success in the run-up to the
summit, although a position paper of more than 100 developing countries representing more than
half of the world has insisted there can be “no more excuses for unfulfilled promises.”
To have any chance of capping global heating to 1.5 degrees Celsius above pre-industrial levels,
the aspirational goal of the 2015 Paris Agreement, the world needs to almost halve greenhouse gas
emissions in the next 8 years and reach net-zero emissions by 2050.
Climate scientists have repeatedly stressed that the best weapon to tackle rising global
temperatures is to cut greenhouse gas emissions — fast.
Johan Rock Strom, director of the Potsdam Institute for Climate Impact Research and one of the
world’s most influential Earth scientists, told CNBC that he believes the success of COP26 will come
down to negotiations on five make-or-break issues.

These are mitigation, climate finance, carbon pricing, nature solutions and the phasing out of fossil
fuels.
Mitigation
“We must, at a minimum, have 195 countries aligning with science in their plans — not even
delivering, but just in their plans — and that requires net zero targets by 2050 at the latest,” Rock
Strom said.
“We only have a small number of countries that have done that so far,” he added, noting that
countries such as Indonesia, Russia and Brazil were all yet to publicly declare net-zero targets by
the middle of the century.
A U.N. report published earlier this week found new and updated Nationally Determined
Contributions put the world on track for a dangerous global temperature rise of at least 2.7 degrees
Celsius by the end of the century — even if plans were fully met.
NDCs are the efforts of each country to reduce national emissions. At present, the U.N. says
updated NDCs would only lead to an additional 7.5% reduction in annual greenhouse gas emissions
compared to previous commitments.
Climate activists “set fire” to George Square, Glasgow, with an art installation of faux flames, smoke, and banners, and
giant fire extinguishers, creating a field of climate fire to welcome world leaders to Glasgow for the Cop26 conference.
Andrew Milligan | PA Images | Getty Images
Farhana Yamin, a climate lawyer and advisor to the Climate Vulnerable Forum, told CNBC via
telephone that COP26 must trigger a profound “justice reset” if it is to be considered a successful
summit. “Success can only come from grasping hard truths, speaking honestly and recognizing the
situation of vulnerable countries.”

It is not good enough, she added, for those at COP26 to continue talking about their optimism for
the future when countries are nowhere close to meeting the demands of the climate emergency.
“Beating the drum and calling it optimism isn’t cutting the mustard with anybody. Optimism isn’t
solving the lives of developing countries or vulnerable groups right now who are facing the
consequences of failure,” Yamin said.
“It’s like a further insult. What is optimism for a country that is now facing complete devastation?”
Finance
High-income countries promised in 2009 to deliver $100 billion a year for five years from 2020 to
help low-income countries pivot away from fossil fuels and protect against climate breakdown. This
Paris Agreement target has still not been fulfilled and is not expected to be met until at least
2023.
“In all honesty, this is really just small money,” Rockstrom said, noting the trillions of dollars in
bailouts spent by global governments in an effort to recover from the coronavirus pandemic.
“We are talking about the trillions that are needed to have a full 100% transition of investments from
fossil-fuel-based infrastructure to renewable infrastructure so that we can really see decisive change
and direction. There must be a finance discussion.”

CLIMATE LAWYER
Climate finance is widely regarded as a critically important issue, particularly when it comes to
repairing global trust.
“Success would be for countries to stop playing games with the issue of loss and damage and
actually fund it,” Yamin said. “Stop pretending loss and damage isn’t happening and find a way to
fund it.”
Carbon pricing
To its proponents, carbon pricing is seen as an important way to incentivize emissions reductions
and help low-carbon technologies compete with established, heavily polluting alternatives.
To its critics, however, Article 6 of the Paris Agreement risks undermining the ambition of the
accord at a time when there is overwhelming evidence of the need to go further and faster to avoid
climate tipping points. This is because some fear carbon trading arrangements could allow
countries to hit already-weak targets without cutting additional emissions.
“The third part which, whether we like it or not, has to be on the table is a price on carbon. That has
to be discussed globally,” Rockstrom said.
He argued that COP26 represented a “completely new situation” when it came to carbon pricing
because, for the first time, Europe’s Emissions Trading System was “starting to bite” polluting
industries.
The EU’s benchmark carbon price was last seen trading at around 60 euros per metric
ton, having stood at around 20 euros before the coronavirus pandemic. The price rise
has resulted in some coal-fired power plants being shut down, Rockstrom said. “I think
we will start seeing carbon pricing spreading and so that has to be on the table at a global
level,” he added.

Nature
“The fourth part and perhaps the most important one for Glasgow is to make this the first COP
meeting that is really a nature COP,” Rockstrom said. “It has to be the climate negotiating moment
where we recognize that the only way to land the Paris Agreement, I mean the only way, is to secure
the carbon sinks in nature — on land and in oceans. There is no carbon budget remaining unless
we secure those sinks.”
Carbon sinks are natural areas, such as oceans and forests, that absorb more carbon than they
emit. Rockstrom suggested pricing carbon in biomass, in soils and in all ecosystems should be
taken into account in the coming weeks.
The U.K. COP26 presidency has recognized the twin threats of climate change and biodiversity loss
cannot be solved without addressing the other. Sustainable agriculture and land use and action on
restoring forests and other critical ecosystems are set to be discussed in Scotland.
In an article published online for London-based think tank Chatham House earlier this month, Yamin
suggested that considering the rights of nature through legal tools such as ecocide, for example,
and the taking the interests of future generations should be on the table in Glasgow.
Another area to be considered, Yamin said, would be for COP26 to consider creating a post for a
“High-Level Champion” to speak up for the incorporation of justice, equality, diversity and inclusion
issues. She argued a COP-appointed position such as this could help to challenge greenwashing.
Phasing out fossil fuels
Burning fossil fuels, such as coal, oil and gas, is the chief driver of the climate emergency.
At COP26, Costa Rica and Denmark are expected to formally launch the Beyond Oil and Gas
Alliance, the world’s first diplomatic alliance to manage the decline of oil and gas production.
It is coal, however, that is the most carbon-intensive fossil fuel in terms of emissions and therefore
the most important target for replacement in the pivot to renewable alternatives.
A global energy supply crunch this year has coincided with a resurgence of coal production, raising
serious questions about the so-called “energy transition.”
A freight train transports coal from the Gunnedah Coal Handling and Preparation Plant, operated by Whitehaven Coal
Ltd., in Gunnedah, New South Wales, Australia, on Tuesday, Oct. 13, 2020.

“We have to have a serious discussion on end-dates on fossil fuels use. An end date on
coal and an end date on the internal combustion engine,” Rockstrom said.
“We’ve never had that moment arising in such a concrete way before. How do we create
a way for the big emerging economies to seriously take on the challenge of phasing out
coal in a way that allows a soft social landing? It is tremendously challenging but an
absolute necessity.”
Research published in the scientific journal Nature on Sept. 9 found the vast majority of
the world’s known fossil fuel reserves must be kept in the ground to have some hope of
preventing the worst effects of climate change.

NewBase Energy News 02 November 2021 - Issue No. 1467 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. 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 the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energies program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.

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