UAE tops world in electricity access

Copyright © 2015 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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NewBase Energy News 05 November 2017 - Issue No. 1096 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 tops world in getting electricity as World Bank Report 2017
World Bank
The UAE, represented by Dubai Electricity and Water Authority (Dewa), ranked first in the world in
getting electricity, as per the World Bank’s Doing Business 2018 report. The report uses multiple
criteria to measure the ease of doing business in 190 countries.
Dewa’s Al Namoos (Emirati word that describes a race winner) service provides consultants and
contractors with electricity connections of up to 150 kilowatts (kW) in just two steps within 10 days.
The first step takes eight days, and includes
the application for electricity connections
through low-voltage cables, with the first
monthly bill postponed until after the
electricity is connected. The second step
takes two days and includes technical
inspection and operation of the final service.
“We work to achieve the vision of our wise
leadership, represented by Sheikh Khalifa
bin Zayed Al Nahyan, President of the UAE;
and Sheikh Mohammed bin Rashid Al
Maktoum, Vice President and Prime
Minister of the UAE and Ruler of Dubai, to
shape the future and adopt innovation to
enhance the sustainability of development
across all sectors. This supports the
objectives of the UAE Centennial 2071 to
secure a brighter future for generations to
come, and make the UAE the best country in the world,” said Saeed Mohammed Al Tayer, MD &
CEO of Dewa.
Al Tayer commended the role of contractors and consultants who actively participated in the
creativity labs and seminars that Dewa organised. Participants made recommendations for
continuous improvements that facilitate and accelerate the mechanism of access to electricity
services, in accordance with the highest international standards and practices.
Dewa has achieved competitive results in efficiency and reliability, compared to European and
American utilities. It has reduced losses from electricity transmission and distribution networks to
3.3 per cent compared to 6-7 per cent in Europe and the US, and water network losses were
reduced to 8 per cent, compared to 15 per cent in North America, which is one of best results in
the world. Dewa also achieved 3.28 customer minutes lost per year compared to 15 minutes in
Europe

Kuwait's PIC signs contract with U.S. Jacobs for plant in Canada
REUTERS/Stephanie McGehee
Kuwait's Petrochemical Industries Co (PIC) has signed a contract with U.S. firm Jacobs
Engineering to carry out engineering and design work for a planned polypropylene plant it co-
owns in Canada, Kuwait's state news agency reported on Saturday.
Kuwait and its neighbours including Saudi Arabia are expanding their petrochemicals footprint
abroad, offering them a diversified feedstock for their growth in the sector. Work on the project is
expected to be completed in the fourth quarter of 2018
Canada Kuwait Petrochemical Corp. (CKPC), a joint venture between PIC, which is a subsidiary
of state-run Kuwait Petroleum Corp (KPC), and Canada's Pembina Pipeline Corp, plans to
develop the facility.
Jacobs will be in charge of carrying out front-end engineering and design for a propylene and
polypropylene facility in Alberta. The work includes identifying costs and a timeframe for the
project. No value for the contract was given. Work on the project is expected to be completed in
the fourth quarter of 2018, KUNA reported, citing a PIC statement.
Pembina said in a statement in May that the preliminary capital cost estimate for the project is
$3.8-$4.2 billion. The facility is expected to consume 22,000 barrels per day of propane produced
in Alberta, it said in May.

Oman Dry Dock plans mobile ship repair unit
Oman Observer - Conrad Prabhu
State-owned Oman Drydock Company (ODC), which owns and operates a major ship-repair yard
at Duqm, has unveiled plans for the establishment of a mobile ship repair unit that can be
despatched to the aid of vessels in distress or in need of non-drydocking standard repairs
anywhere in and around the Sultanate.
The so-called ‘Port Repair & On-Voyage Services’ Unit will be equipped to respond to requests for
technical assistance at any of Oman’s commercial ports at Suhar, Muscat and Salalah, or even
undertake repairs if the vessel is at anchorage, or traversing waters in and around the Sultanate, a
top official said.
“If the ship cannot come to the shipyard, the shipyard is coming to the ship — wherever required,”
ODC’s Chief Executive Officer Stephan Aumann (pictured) said. “In the
first stage, we will work with so-called flying squads based in Duqm, that
are prepared and ready to go to the ports in Oman, either Salalah, Suhar
or Muscat,” he added in an interview featured in Duqm Economist, the
quarterly newsletter of the Special Economic Zone Authority in Duqm
(SEZAD).
Supporting the initiative, said the CEO, are Oman Global Logistics Group
(ASYAD), the holding company of government-owned port, transport and
logistics interests, as well as Oman Shipping Company and the ports of
Salalah and Suhar.
The move comes against a backdrop of recent initiatives launched by the dry-dock — part of
ASYAD Group — to bolster its ship repair and maintenance capabilities, as well as attract new
vessel types to the yard.

Seeking to lend it greater flexibility in the handling to small vessels of up to Panamax-size
capacity, ODC is weighing plans to acquire a floating deck as well as ramp up its crane-lifting
capabilities, said Aumann in the interview.
“The investment in a floating dock is deemed a necessity for the expansion of the company’s
works and services. Moreover the market is demanding high lifting capacities, especially if we
want to enter the ship new-building and the offshore conversion markets.
In those markets, a shipyard requires crane lifting capacities from 300 to easily 700 tonnes. Our
actual maximum crane lifting capacity is 100 tonnes which is limiting our ability to receive high
value projects,” he said.
Furthermore, ODC is looking to leverage its multifaceted capabilities to offer industrial engineering
and fabrication services to the local and regional engineering construction sector. For example, it
is eyeing opportunities to supply the nearby Duqm Refinery project — a mega $7 billion
investment — with steel frames and structures.
Also in the works, the CEO said, is a new ‘Research & Development’ department that will help
ODC cater to the customised requirements of clients. Examples of such bespoke solutions
involve, among others, the transformation of ships into multi-purpose vessels, manufacture of
steel structures, repairs of naval vessels, cruise ships and super-yachts, and the provision of
engineering, repair and conversion services to the Oil & Gas industry.
“We are looking forward to rendering various services to make the dry-dock a major multi-purpose
hub to receive all types of vessels and equipment for a wide range of specialised services to its
esteemed clients in the maritime industry, that range goes from ship repair and conversion via
offshore rigs and Floating Production Storage and Offloading (FPSO) maintenance and
conversions to the field of industrial engineering and construction,” Aumann added.

Egypt: Engie consortium wins $400m Egypt renewable project
Engie + NewBase
Leading French energy company Engie said it won a contract from the Egyptian government to
develop a 250 MW wind farm in Rhas Gharib area on the Gulf of Suez together with its consortium
partners Toyota Tsusho Corporation/Eurus Energy Holdings Corporation (40 per cent) and
Orascom Construction Limited (20 per cent).
Total investment for the project is likely
to hit $400 million. Financing will be
provided by the Japanese Bank for
International Corporation (JBIC) in
coordination with commercial lenders
SMBC and Sociéte Générale.
In addition, the Japanese Export
Credit Agency, NEXI is providing an
insurance cover for the commercial
lenders. Construction is expected to
start end of 2017 and will take
approximately 24 months to complete.
The Gulf of Suez is the first wind farm
tendered on a build, own and operate (BOO) scheme and comes as part of the Egyptian
government’s drive to increase the share of renewables in the energy mix with a target wind
generation capacity of 7 GW by 2022.
The plan envisions significant private sector involvement, with the private sector taking the lead on
more than 60 per cent of the plan.
The wind farm will be located in Rhas Gharib on the Gulf of Suez an optimal site with more than
60 per cent of gross capacity factor. The energy will be sold under a 20-year Power Purchase
Agreement (PPA) to the Egyptian Electricity Transmission Company (EETC).
Bruno Bensasson, the CEO of Engie Africa, said: "Egypt is a country which expects a strong
power de-mand growth in the next years to accompany its economic and social development.
With this large wind project, Engie becomes an important player in Egypt’s ongoing renewable
energy transition."
"Gulf of Suez is definitely proof that good regulation can bring foreign investment at a competitive
price to the benefit of African countries. For our group it is an opportunity to scale up our presence
in a strategic country with a long-term contracted asset guaranteed by the government," he stated.
In Egypt, Engie remains committed to develop additional generation capacity and is looking to
extend its energy services activities and its offer for sustainable cities, taking the opportunity of the
Government’s “New Cairo” and “New urban planning of Suez canal area” programmes.-
TradeArabia News Service

Mauritania: Sterling Energy and Tullow Oil relinquishing Block C-10
Source: Sterling Energy
AIM-listed Sterling Energy has announced that the Operator, Tullow and Sterling through its
wholly owned subsidiary Sterling Energy Mauritania Limited ('SEML') have submitted a notice to
not enter the Third Renewal Period in relation to Block C-10, offshore Mauritania and exit the
block on 29 November 2017.
Block C-10
The PSC, awarded in 2011, is in the second phase of the exploration period ('Phase 2') and
covers Block C-10, offshore Mauritania, comprising an area of approx. 10,725km2. Phase 2 of the
PSC is will expire on 30 November 2017 and has a minimum work obligation of 1 exploration well.
Block C-10 lies in water depths of 50m
to 2,400m with full legacy 3D seismic
coverage. On entry in early 2015,
Tullow had matured a drill ready
Neocomian carbonate prospect in
water depth of approximately 100m.
The joint venture originally anticipated
that an exploration well to test this
prospect would be drilled in 2017, this
will not be satisfied prior 30 November
2017.
The Operator, on behalf of the joint
venture, has been negotiating with the
Government to secure a one year
extension through a new 3D survey.
To date, the Government has stated
that this work obligation proposal does
not warrant an extension to the second
term.
Subsequent, SEML has determined
that whilst the acreage is prospective,
there is insufficient commercial
justification in entering Phase 3 (3 year
term), with a minimum work obligation
of 2 wells. Given that the joint venture
will not fulfil the minimum work
obligation, the gross penalty payment due to the Government will be $7.5m ($1.125m net to SEML).
Eskil Jersing, the Company's Chief Executive Officer commented:
'Our entry into the C-10 block, was prefaced on extensive subsurface work demonstrating potential for both untested
inboard Neocomian carbonate and outboard Cenomanian to Albian plays, the latter proven by Kosmos. However,
subsequent technical and economic modelling has not matured a viable hub scale opportunity on block.
We entered the acreage in early 2015, at low cost and capital exposure together with exit options that we felt were of the
appropriate risk profile for the block potential. It is unfortunate that we have been unable to define commercially viable hub scale
opportunities on the block in this exploration period. As a result our relatively low cost exit of $1.125m net SEML is in-line with our
consistently disciplined approach to exploration asset execution and capital allocation. We would like to thank Tullow and Société
Mauritanienne des Hydrocarbures et de Patrimoine Minier - SMHPM, for their partnership and support on the block.'

South China Sea is the LNG major trade rout , Almost 40% of it
U.S. EIA, based on IHS EDIN, BP Statistical Review of World Energy 2017, and Chinese import statistics from Global Trade Tracker
The South China Sea is a major route for liquefied natural gas (LNG) trade, and in 2016, almost
40% of global LNG trade, or about 4.7 trillion cubic feet (Tcf), passed through the South China
Sea.
The South China Sea is an important trade route for Malaysia and Qatar. The two LNG exporters
collectively accounted for more than 60% of total South China Sea LNG volumes in 2016. Almost
half of Qatar’s global LNG shipments traveled through the South China Sea in 2016.
All of Malaysia’s LNG exports pass through the South China Sea, as the country’s one LNG
export complex lies on the South China Sea coast.
Several other LNG exporters also use South China Sea trade routes to reach LNG importers. In
2016, Oman, Brunei, and the United Arab Emirates shipped between 84% and 100% of their total
LNG exports through the South China Sea.
Other LNG exporters in the region, such as Australia and Indonesia, make more use of other trade
routes to reach LNG markets. In 2016, about 23% of total Australian LNG exports and about 29%
of Indonesian LNG exports were shipped by way of the South China Sea.
Much of the remainder of Australia’s and Indonesia’s LNG exports passed to the east of the
Philippines and Taiwan, avoiding the South China Sea on the way to customers in Japan, South
Korea, and northern China.

The four LNG importers with the largest volumes passing through the South China Sea are Japan,
South Korea, China, and Taiwan, collectively accounting for 94% of total LNG volumes going
through the South China Sea in 2016. Japan is the world’s largest LNG importer, and slightly more
than half of all of Japan’s LNG imports in 2016 were shipped by way of the South China Sea.
Similarly, about two-thirds of the LNG imported by South Korea—the world’s second-largest LNG
importer—was shipped through the South China Sea that year.
More than two-thirds of China’s LNG imports and more than 90% of Taiwan’s LNG imports passed
through the South China Sea in 2016. Total imports of LNG to China have more than doubled
over the previous five years, from 0.56 Tcf in 2011 to 1.20 Tcf in 2016.
However, more than half of the growth in China’s LNG imports were volumes that went to
northern ports without transiting the South China Sea. Based on projections in the International
Energy Outlook 2017, EIA projects that China will surpass South Korea as the world’s second-
largest LNG importer by 2018 and nearly match Japan’s level of LNG imports by 2040.

Venezuelan Oil Too Big to Fail, at Least for China and Russia
Bloomberg - Alex Nussbaum
Venezuela’s sudden demand to renegotiate its billions in debt could complicate life for its two
biggest oil patrons, China and Russia.
President Nicolas Maduro caught bondholders off guard on Thursday with a vow to wring debt
relief from Venezuela’s creditors, sending the country’s bonds tumbling. But the move may also
have been calculated to reassure the countries that are among Maduro’s biggest lenders, and the
most vital customers of his nation’s crown-jewel oil industry.
State-owned Petroleos de Venezuela SA, keeper of the world’s largest oil reserves, has seen
output drop to a 14-year low, beset by the country’s economic collapse, a global plunge in crude
prices and U.S. sanctions. As American refineries, once PDVSA’s top customers, have bought
less, China and Russia have stepped in. The two countries have loaned more than $60 billion to
boost production there, prepaying for more than a billion barrels.
“Venezuela is too important for the likes of China and Russia to let it fail,” said Thomas Onley, an
analyst at consultant Facts Global Energy, in a phone interview Friday. “Things are getting tough,
no question about that, but China and Russia are the backstop.”
At a rally in Caracas, Maduro said his cash-strapped country would seek talks with creditors,
including for PDVSA’s outstanding debt. He blamed American sanctions for drying up the well for
new financing.
The step to restructure debt comes as Venezuela stands to receive more revenue for its oil. The
country’s crude oil basket price rose to CNY350.75 ($52.90) a barrel Friday, the highest since July

2015. And Venezuela did approve a $1.1 billion principal payment on a PDVSA bond on
Thursday.
However, that came with the country holding just $10 billion left in hard-currency reserves, a sign,
perhaps, of how wary Maduro might be of getting the oil company embroiled in a messy default.
That he immediately followed that with a demand for relief is an indication he sees the situation as
unsustainable.
In 2001, Venezuela was pumping more than 3 million barrels a day. Last month, national crude
production fell to 1.95 million barrels a day and Venezuelan rig counts are at their lowest level
since June 2012.
With output tanking, PDVSA has been forced to buy more cargoes from abroad to blend with its
own, tar-like low-quality oil. Meanwhile, many of its refineries have shut because of recurring
breakdowns or a lack of domestic supplies to process.
Sanctions imposed by U.S. President Donald Trump, meant to punish Maduro’s crackdown on his
political opposition, helped drive down exports to the U.S. by 35 percent from August to October.
Over the same period, daily shipments to China doubled while cargoes to Russia’s state-owned oil
company Rosneft PJSC more than tripled, according to U.S. Customs data and a shipping report
compiled by Bloomberg. But income from those sales are limited because they’re repayments for
previous loans.
Price Paid
Turning to the risky process of renegotiation may be the price paid by Venezuela to preserve that
lifeline, said Francisco Monaldi, a fellow in Latin American energy policy at Rice University in
Houston.
“Russia and China have incentives to provide financing just for oil investment, so that they are
able to get the oil repayments," Monaldi said in an email. “If Venezuela was able to successfully

restructure the debt with bond holders that would make it more attractive for Russia and China to
help, but giving them more money just to pay bond holders is unlikely to happen."
Rosneft said in August it isn’t planning any further advance payments to PDVSA after providing
about $6 billion in loans, including interest.
Seeking more help, PDVSA in recent weeks turned to oil trading houses in search of more
prepayment deals. The company held talks with Trafigura Group over a proposal that envisaged
the Singapore-based merchant house paying as much as 80 percent of a $700 million oil contract
upfront, according to emails and PowerPoint presentations reviewed by Bloomberg News.
PDVSA approached at least one other trading house with a similar deal, according to a person
familiar with the matter who asked not to be named because the discussions were private. Neither
deal was consummated.
PDVSA has refineries overseas and oil receivables that could become a target in any debt fight.
The company’s U.S. refining arm, Citgo Holding Inc., has already been used as collateral to back
some bonds. If creditors start going after the assets, buyers are apt to turn to other sources of
crude, depressing not only demand but the price of Venezuela’s main treasure.
An actual default at PDVSA would create “significant downside risks to both oil production and
exports,” Luisa Palacios, senior managing director at Medley Global Advisors, said in an email.
She’ll be watching to see whether the oil producer makes its bond coupon payments next week,
she said. “We will know by Nov. 10."

Mexico PEMEX Announces Biggest Onshore Oil Discovery in 15 Years
Pemex
Petroleos Mexicanos announced its biggest onshore discovery in 15 years, just three months after
Mexico reported the first major find by private companies, bolstering the nation’s efforts to revive
its oil industry.
The Ixachi-1 well that lies 72 kilometers (45 miles) south of the port of Veracruz is believed to
contain 1.5 billion barrels of oil in place, or about 350 million in proven, probable and possible
reserves.
Production of light oil and wet gas could start “in a year, the end of 2018 or 2019”, Pemex Chief
Executive Officer Jose Antonio Gonzalez Anaya said Friday in a phone interview. “It is in an area
where there is already a lot of infrastructure that will help to develop the field.”
For Pemex, the find comes amid declining output and continuous budget cuts. Mexico is counting
on an energy reform approved in 2013 to help revive the ailing industry and the state-owned oil
company.
Joint ventures with international exploration firms will allow Pemex to reach areas that demand
heavy investment and state-of-the-art technology. About a fifth of Mexico’s public budget relies on
oil revenue, with production averaging 2.15 million barrels a day last year, the lowest level in more
than three decades.
“This is the most important discovery in onshore fields by the company in 15 years,” said Mexico President
Enrique Pena Nieto during an event on Friday at the Tula refinery in Hidalgo state. The find is located next
to already existing infrastructure and extracting the crude will begin “relatively soon,” he said.
The discovery follows the announcement in July by Premier Oil Plc, Sierra Oil & Gas and Talos Energy
LLC of a reservoir with an estimated 1.4 billion to 2 billion barrels in shallow waters.
Pemex has yet to determine the amount of investment needed to develop the discovery or whether the
company will seek partners, according to Gonzalez Anaya. “First we have to begin with a plan for
development before we know how much it’s going to cost,” he said. ‘There’s a lot of work to do.”

NewBase November 05 - 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Russia, Saudi Arabia ready for more work to cut global oil inventory
Reuters + NewBase
Russia, Saudi Arabia, Uzbekistan and Kazakhstan are ready to do more work to reduce global oil
inventories, the Russian energy ministry said in a statement on Saturday after a meeting of
officials from the four countries.
Saudi Oil Minister, Khalid al-Falih, arrives to attend the Future Investment Initiative conference in
Riyadh, Saudi Arabia October 24, 2017. Russia and Saudi Arabia are leading a deal between
OPEC and non-OPEC producers to cut global oil production, with the aim of propping up oil
prices.
“The states-participant signified satisfaction of reducing commercial stocks of oil and stated their
readiness to continue (to make) join efforts towards such a direction”, the statement said. OPEC,
Russia and other oil producers are due to meet at the end of November in Vienna to decide
whether to extend the current supply-cut pact.
According to the Russian Energy Ministry, the formerly Soviet state Turkmenistan will take part at
the meeting as an observer. Saudi Arabian oil minister Khalid al-Falih said after the meeting that
more work was needed to cut inventories.
“There is a general satisfaction with the strategy of 24 countries that signed a declaration of
cooperation”. “Everybody recognizes that (the) job is not done yet by any means, we still have
significant amount of work to do to bring inventories down. Mission is not yet complete, more
needs to be done,” he added.
He said members of the global pact he had spoken with have expressed the same views. “This is
the same sentiment I’ve heard yesterday from (Kazakh) President (Nursultan) Nazarbayev, this is
the same sentiment I’ve heard from all the oil-producing members of the Asia energy ministers’
round table”, he said.
Officials from Malaysia, Ecuador, Nigeria and Libya have also given him similar feedback, Falih
said. “All committed to working with other producers and supporting the agreement”, the Saudi oil
minister added.
Oil price special
coverage

USA Rig count drops
The oil rig count fell to 729 in the week to November 3, the lowest level since May, General
Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.
Hedge funds and money managers raised their bullish wagers on US crude to the highest in more
than six months, data showed on Friday.
Opec meets at the end of November to discuss further action after it agreed nearly a year ago with
Russia and other producers to hold back 1.8 million barrels per day (bpd) of oil supply.
Saudi's Falih says more work needed to cut global oil inventory
Saudi Arabia's Energy Minister Khalid al-Falih talks to journalists during a meeting of the
Organization of the Petroleum Exporting Countries (OPEC) in Vienna, November 30, 2016.
Saudi oil minister Khalid al-Falih said on Saturday that more work was needed to bring
global oil inventories down.
"There is a general satisfaction with the
strategy of 24 countries that signed a
declaration of cooperation", he said after
meeting attended by his Russian, Uzbek and
Kazakh counterparts. Russia and Saudi Arabia
are leading the global oil production cut deal
aimed at propping up global oil prices.
"Everybody recognizes that (the) job is not
done yet by any means we still have significant
amount of work to do to bring inventories down.
Mission is not yet complete, more needs to be
done," he added.

LNG May Battle Oil for Buyers This Winter
Bloomberg
A shrinking discount for liquefied natural gas versus oil will stoke competition for buyers in some
markets heading into the winter heating season, said Madeline Jowdy, senior director of global
gas and LNG at Pira Energy Group in New York.
WGI Northeast Asia Spot LNG, a regional benchmark, was recently assessed at $9.20 per million
British thermal units, $1.37 less than what December Brent would cost Friday on an mmbtu basis.
The spread was more than $3 in June.
“When LNG reaches or surpasses oil parity, it means that some more price sensitive utilities or
industrial users will switch to oil,” India is one example of where industrial users would switch.
Japanese and Korean utilities may follow if the narrow discount holds, she said.

Widening Brent-WTI price spread unlikely to change the USA
East Coast crude oil supply… U.S. Energy Information Administration, based on Thomson Reuters
In September and October 2017, the difference between domestic and foreign crude oil prices has
risen to the highest level since 2015. In the past, price differences between West Texas
Intermediate (WTI) and Brent crude oil led to changes in crude oil supply for petroleum refineries
in the U.S. East Coast region. However, recent price changes are not expected to affect East
Coast crude oil supply unless the gap continues and widens.
Between 2011 and 2013, when domestic crude oil prices (WTI) ranged from $3 per barrel (b) to
$27/b lower than foreign crude oil (Brent) on a monthly average basis, refineries on the U.S. East
Coast changed how they were supplied with crude oil. The recent price spread, which has
averaged $6/b in September and October, has not grown large enough—and is not expected to
last long enough—for changes similar to those seen between 2011 and 2013.
For U.S. East Coast refineries, the Brent-WTI spread can partially determine when switching to
domestic crude oil would be more profitable. Before 2011, refineries on the U.S. East Coast
(defined as Petroleum Administration for Defense District 1) typically processed imported crude oil
because transportation options for sourcing domestically produced crude oil were limited and
relatively expensive.
Between 2011 and 2013, U.S. crude oil production grew faster than transportation, storage, and
refining capacity could accommodate, and restrictions on exporting domestically produced crude
oil led to relatively low prices for WTI compared with Brent. The large and prolonged domestic
crude oil price discount from 2011 to 2013 prompted East Coast refineries to source domestic
crude oil by coastwise-compliant shipping arrangements and by investing in crude-by-rail projects,
among other means.

These investments resulted in a major shift in East Coast crude oil supply trends. In January
2014, domestic crude oil receipts equaled receipts of foreign crude oil into East Coast refineries
for the first time. Domestic crude oil receipts accounted for as much as 60% of total East Coast
refinery crude oil receipts in February 2015.
However, the Brent-WTI spread narrowed throughout the rest of 2015. In 2016, the price
difference between the two crude oils averaged less than $1/b. East Coast refiners responded by
canceling or not renewing domestic crude oil supply contracts, and domestic crude oil receipts at
East Coast refineries decreased from a high of 535,000 barrels per day (b/d) in February 2015 to
101,000 b/d in July 2017.
Other factors have changed since the 2011–2013 period. Crude oil suppliers to East Coast refineries have
found other outlets for their crude oil, such as refineries in other regions and export markets. Expanded
pipeline infrastructure has given domestic crude oil producers access to refiners in the Midwest and Gulf
Coast regions, reducing the need to ship crude oil by rail.
In December 2015, restrictions on exporting domestic crude oil were removed, so East Coast refiners must now
compete with international buyers for domestic crude oil, and pay the typically higher coastwise-compliant shipping
rates for a U.S. Gulf Coast-to-U.S. East Coast tanker shipment. U.S. East Coast refiners are unlikely to repeat shifts
in crude oil supply patterns despite the widening price difference. Additional information about factors that affect East
Coast crude oil supply—and how those factors differ from those present in 2011 through 2013—is discussed in the
latest This Week in Petroleum.

NewBase Special Coverage
News Agencies News Release November 02-2017
Growth in plug-in EV depends on future market conditions,says EIA
Cumulative sales of plug-in electric vehicles (PEVs), including battery electric vehicles and plug-in
hybrid electric vehicles, reached 1.2 million worldwide in 2015. Still, PEVs account for less than
1% of vehicles in use globally.
Future developments in battery technology, policy, and consumer preference have important
implications for future PEV adoption and serve as a great source of uncertainty in meeting future
mobility demand.
An Issues in Focus analysis conducted for EIA’s most recent International Energy
Outlook (IEO2017) considers some of these uncertainties through different PEV penetration
scenarios and considers the effect that differing rates of adoption have on worldwide energy
consumption.
EIA developed two IEO2017 side cases to determine the effect on worldwide energy use if PEV
adoption were higher or lower than projected in the Reference case.
The Low PEV Penetration case reflects low consumer acceptance of PEV technology and projects
a little less than half of the PEV stock as in the Reference case by 2040. The High PEV
Penetration case reflects high consumer acceptance of PEV technology and projects almost
double the PEV stock as in the Reference case by 2040.
Source: U.S. Energy Information Administration, International Energy Outlook 2017

Different levels of projected PEV penetration have noticeable effects on worldwide liquids fuel
consumption. Liquids fuel consumption in the light-duty vehicle (LDV) sector is almost two
quadrillion British thermal units (Btu) higher in 2040 in the IEO2017 Low PEV Penetration case
than in the Reference case. The High PEV Penetration case projects liquids fuel consumption to
be 2.75 quadrillion Btu lower than in the Reference case in 2040.
Projected changes in light-duty vehicle electricity consumption is not one-to-one with the changes
in light-duty vehicle petroleum fuel consumption. Higher adoption of PEVs results in less
petroleum use, both because of the greater efficiency of the PEV powertrain and the switch from
using petroleum to electricity. In the Low PEV Penetration case, LDVs consume almost one
quadrillion Btu less electricity than in the Reference case. In the High PEV Penetration case LDVs
consume 1.8 quadrillion Btu more electricity than in the Reference case in 2040
Ford and Europe's auto giants to build a long-distance electric charging network
20 fast-charging stations to be in operation by the end of 2017
400 stations aimed to be built across Europe by 2020
Technology would have twice charging capacity of Tesla's offering
Ford, BMW, Daimler and Volkswagen Group with Audi and Porsche have unveiled a joint plan to
build fast-charging stations for electric cars across Europe.
Named as 'IONITY', the joint venture aims to install 400 high-power charging stations by 2020,
with the first 20 locations to be up and running by the end of this year.
The leader of the venture, IONITY chief executive Michael Hajesch, said in a press statement
Friday that the network will ease fears about electric cars and long-distance travel.
"IONITY will deliver our common goal of providing customers with fast charging and digital
payment, to facilitate long-distance travel," he said.
An initial phase of 20 charging
stations will be built at existing gas
stations on major roads in Germany,
Austria and Norway. Placed at
intervals of 75 miles apart, each
charging point will allow multiple
drivers to charge at the same time.
The network will be based on a new
Combined Charging System (CCS)
technology standard that will accept
different makes and models of cars.
The promised capacity of 350
kilowatts per charging point more

than doubles Tesla's current standard for its 'second generation' chargers that have a capacity of
up to 145 kW.
Daimler said in its release that battery electric cars built to accept the new technology will be able
to recharge in a "fraction of the time" of today's current stations.
And although no solid estimates of recharge time are available, Porsche claimed in 2016 that if
fast recharging stations were built, its 2019 Mission E car battery could charge to 80 percent from
flat in around 15 minutes.
Today there’s no comparable public transit boom, and switching from gas-powered to electric cars
is much easier than switching from horses to cars was a century ago. The researchers conclude
that the fast-adoption scenario—which matches the actual EV adoption rate between 2011 and
2015—is much more likely.
It projects 30 percent of vehicles in the U.S. will be electric by the late 2020s and 93 percent by
the early 2040s.
If that sounds implausible, consider cell phones, says Cherif. In the 1980s, when cell phones were
bulky, expensive, and had a short battery life, experts predicted that by 2000 the industry might
sell 900,000 units a year. Actual sales that year were 109 million—and by 2014 another
unexpected technology transition had happened: Virtually all of those phones were smart phones.
“Adoption of a new technology like electric cars may seem slow or look like it’s never going to
happen,” says Cherif, “until it passes a threshold and then it just takes off.”

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
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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 27 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 November 2017 K. Al Awadi

UAE tops world in electricity access

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