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NewBase Energy News 16 October 2017 - Issue No. 1084 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: Adnoc puts almost all of its subsidiaries under single
unified brand
The national - Mustafa Alrawi
The Abu Dhabi National Oil Company is aligning almost all of its subsidiary companies under its
Adnoc brand, the latest phase of its transformation into a more commercially-focused and
performance-driven company as it looks to unlock maximum value from its resources, operations
and partnerships.
The transformation strategy is being implemented by group chief executive Sultan Al Jaber, who
took on the role last year with a mandate to make Adnoc more efficient and resilient.
The unified branding move supports efforts to create a “culture that is progressive, performance-
driven, commercially focused and innovative”, said Dr Al Jaber. He described this “critical” change
as both a challenge and an opportunity that would define Adnoc’s success.
The activities of the Adnoc group encompass upstream, midstream and downstream sectors with
3 million barrels of oil and 9.8 billion cubic feet of raw gas produced a day.
Its 20 specialist subsidiaries and joint ventures will become 16 under the unified brand. For
example, the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating
Company (Adma-Opco) – the two offshore units that are currently going through a consolidation –
will be known as Adnoc Offshore.
Adnoc Logistics & Services will include shipping and ports services companies the Abu Dhabi
National Tanker Company (Adnatco), the Petroleum Services Company (Esnaad) and the Abu
Dhabi Petroleum Ports Operating Company (Irshad) - accounting for some 4,000 employees -
which have already been undergoing an integration process since the end of last year.
Abu Dhabi Gas Industries, or Gasco, will be rebranded Adnoc Gas Processing and Al Hosn Gas,
a joint venture with Occidental Petroleum, becomes Adnoc Sour Gas. National Drilling Company
(NDC) becomes Adnoc Drilling. The single brand identity will also be rolled out across the 317
service stations operated by Adnoc Distribution.
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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Dr Al Jaber said that each company will, however, maintain operational autonomy within the
group’s "centralised governance model". Suppliers, customers and other groups and individuals
that do business with Adnoc subsidiaries will be unaffected by the rebranding, he said.
Borouge, its petrochemicals joint venture with Austria’s Borealis will not be renamed because of
its “well-established brand and reputation” in that industry, according to Dr Al Jaber. Exploration
and production units Al Yasat and Al Dhafra, which are in the early stages of their operations, are
also exempted although they will eventually evolve and fall under the unified Adnoc brand identity,
he said.
Under Dr Al Jaber, Adnoc is opening up for new partnerships and co-investments, for the first time
across all areas of the group – not just in oil & gas concessions and petrochemicals but also in
drilling, pipelines, storage and refining – and potential partners include international pension
funds, private equity investors and global infrastructure specialists.
It is considering the sale of a stake to the public in Adnoc Distribution as part of its new corporate
strategy to more actively manage its portfolio of assets.
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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Pakistan: Kandhkot Achieves Record Gas Production TargetPakistan Petroleum Limited of 230
Kandhkot Gas Field, one of the oldest gas fields in Pakistan, has achieved a milestone reaching
gas production capacity of 230MMscfd recently. It is set to ramp up its production further to a
record level of 250 MMscfd. Situated on the right bank of Indus River, Kandhkot Gas Field’s
reserves are concentrated in the Habib Rahi Limestone, Sui Main and Upper Limestone
reservoirs.
The target of gas production was achieved ahead of time. The record production enhancement
within tight deadlines was made possible due to the company’s consistent efforts to tap optimal
potential of Kandhkot.
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It has committed to the government last year it would provide additional gas for power generation
through fast-track drilling in a challenging environment. Two compressor units and
debottlenecking of production facilities were added to the system.
Kandhkot Gas Field was discovered shortly after Sui Gas Field in 1959, however, its production
did not begin until 1983 due to low gas demand. In order to meet contractual delivery demand for
gas sale, development wells are being drilled in the field.
To this end, six development wells were drilled in record time of 9 months with multi-rig operation,
successfully finding sweet spots in a mature field and enhancing field capacity by 90 MMscfd gas
which can be delivered to national grid. An additional three development wells are planned to be
drilled this year to sustain the production plateau.
Minister of State for Petroleum Division, Ministry of Energy Jam Kamal Khan, Governor Sindh
Muhammad Zubair and other provincial and local government officials, area notables, media
personnel as well as company directors and staff were present on the occasion.
In his welcome address, MD and CEO Syed Wamiq Bokhari, highlighted the company’s
aggressive exploration and production program with a focus on remarkable production
enhancement from Kandhkot.
He also shared PPL’s recent achievements, including net production crossing the 1 Bcfpde mark
along with a record drilling of 25 wells in operated areas during 2016-17, an all-time high for the
company.
Pakistan Petroleum (PPL) has enhanced the production of gas by 8 percent to 1 billion cubic foot
daily (BCFD) in current fiscal year. Before this, gas output was declining with an average of 5
percent yearly.
PM Abbasi lauded PPL’s efforts to support the government’s resolve to bridge the demand-supply
gap by ramping up production, particularly from its mature fields like Kandhkot.
Prime Minister, Shahid Khaqan Abbasi, formally marked the exceptional production
enhancement at Kandhkot Gas Field (KGF) during a well-attended event hosted by Pakistan
Petroleum Limited (PPL).
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UK to publish draft energy price cap laws, seeking to fix 'broken' market
Reuters ( images by NewBase)
Britain will publish a draft law on Thursday designed to cap consumer gas and electricity prices for
millions of households, taking action to try and fix a market it says punishes loyal customers.
Prime Minister Theresa May first proposed a price cap on the energy sector earlier this year, the
biggest market intervention since its privatisation almost 30 years ago.
Her announcement last week that the plan would go ahead initially wiped more than 900 million
pounds ($1.19 billion) off the value of the two British listed companies Centrica and SSE alone.
Energy bills have doubled in Britain over the past decade to an average of about 1,200 pounds
($1,500) a year, putting the biggest providers in the sights of politicians.
"I have been clear that our broken energy market has to change — it has to offer fairer prices for
millions of loyal customers who have been paying hundreds of pounds too much," May said in an
emailed statement on Thursday.
The government will publish the draft laws later in the day, inviting scrutiny from parliament before
it begins the legislative process. No details about the level of the cap were provided in advance.
Under the bill, the regulator Ofgem would bring in a price cap on standard variable tariffs (SVTs),
which are basic rates that energy suppliers charge if a customer does not opt for a specific plan.
The business department said the cap would come in as soon as practicable after the legislation
has passed. It will be a temporary measure, in place until the end of 2020 and Ofgem will then
decide if the cap needs to remain, depending on how the market is working.
The cap is seen as a way to appeal to those voters who, after seven years of public spending
cuts, are struggling with rising inflation and weak wage growth. The leftist opposition Labour Party,
which has long advocated intervention in energy markets, performed better than expected at a
June snap election, depriving May of an outright majority in parliament.
Britain's energy market is dominated by the so-called big six providers — Centrica's British Gas,
SSE, Iberdrola's Scottish Power, Innogy's npower, E.ON and EDF Energy, which account for
about 85 percent of the retail electricity market.
More than 18 million customer accounts in Britain are currently on a standard variable tariff or
other default tariffs, many of which offer poor value to customers because they are priced higher
than the fixed-rate deals available to consumers who actively seek them out.
The government said it wanted to go further that plans announced on Wednesday by Ofgem to
extend an existing price cap which applies only to vulnerable consumers. Ofgem said that
whatever was contained in the upcoming legislation, the government's price cap would not come
into effect for the upcoming winter.
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,
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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OPEC Sees ‘Healthy’ Oil Demand Growth to 2022
Bloomberg - Wael Mahdi
Oil demand will grow at a “healthy pace” over the next five years as renewables show the fastest
expansion of any type of energy, the head of the Organization of Petroleum Exporting Countries
said.
Crude demand will climb an average 1.2 million barrels a day
through 2022 and slow to 300,000 barrels a day in 2035 to
2040, OPEC Secretary General Mohammad Barkindo said
Sunday in Kuwait, giving a preview of OPEC’s 2017 World Oil
Outlook set to be released Nov. 7. The share of fossil fuels in
the global energy mix will slip below 80 percent by 2020 and
fall to 75.4 percent by 2040, he said.
Wind, solar, geothermal and photovoltaic sources will be the
fastest-growing energy, increasing by an average of 6.8
percent a year from 2015 to 2040, though still accounting for less than 5.5 percent of the world’s
total energy mix by 2040, he said.
Barkindo discussed his outlook for oil demand as OPEC and allied producers wrestle with a global
oversupply that has dragged crude prices to half the level of their 2014 peak. OPEC, Russia and
other suppliers are debating whether to extend output cuts that are set to expire in March, in an
effort to drain the glut -- fed partly by U.S. shale -- and shore up prices.
Benchmark Brent crude, which ended Friday trading at $57.17 a barrel, is up 0.6 percent this year
as the cuts, which began in January, have taken effect. OPEC plans to meet next month in Vienna
to weigh its options.
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“The medium-term outlook for oil demand is for a significant increase to 2022 with a healthy
average annual increase,” Barkindo said. “In the global energy mix, we see fossil fuels retaining a
dominant role albeit with a declining overall share through 2040.”
‘Rapidly Improving’
With the global economy growing and oil demand expected to grow by 1.45 million barrels a day
this year, oil market indicators are “rapidly improving,” Barkindo said. Inventories in developed
nations stood at the beginning of the year at 338 million barrels above the five-year average,
OPEC’s main criteria for assessing the re-balancing of the market. In August, they were at 159
million barrels, he said.
The amount of crude in floating storage has also declined, down an estimated 40 million barrels
since the start of the year, he said. Backwardation in the Brent market is one more sign of
improving market conditions, Barkindo said.
“Retaining sustainability in market stability beyond 2018 is an absolute prerequisite for
investments to be able to cover future oil demand.,” Barkindo said. “Beyond our forecasts and the
positive momentum we are seeing now, there is still the fundamental need to ensure sustainable
stability, so that the market does not stall once the necessary stocks are withdrawn.”
OPEC's Output Curbs Squeeze World's Biggest Oil Refining Complex
Being sophisticated in the age of OPEC output curbs can prove a disadvantage, as the operator of
the world’s biggest oil-refining complex is discovering.
Reliance Industries Ltd.’s 1.24 million barrel-a-day facility in western India features highly
advanced units designed to process the globe’s heaviest types of crude, which have historically
been cheaper than lighter varieties because they are more difficult to break down into fuels. Now,
a drive by the Organization of Petroleum Exporting Countries to stabilize the oil market is
squeezing supplies of such grades and making them relatively costlier.
The result: Billionaire Mukesh Ambani’s company posted quarterly profit that lagged behind
estimates for the first time in more than two years. Reliance earned $12 for every barrel of crude it
turned into fuel in the second quarter ended Sept. 30, compared with a prediction by CLSA India
Pvt. for as much as $12.80 a
barrel.
Shares of the company were
down 0.7 percent on Monday at
12:28 p.m. in Mumbai, compared
with a 0.3 percent gain in the
broader S&P BSE Sensex Index.
Refining margins fell below
expectations as OPEC’s curbs led
to the lower availability of cheaper
grades of crude, according to
Srikanth Venkatachari, Reliance’s
joint chief financial officer. “There
is nothing which suggests that
suddenly supply of heavy crude
has eased, so this condition will
persist.”
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 October 16 - 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil Gains on Concern Iraq-Kurd Tensions Will Disrupt Crude Flows
Reuters + Blomberg + NewBase
Oil markets jumped on Monday on concerns over potential renewed U.S. sanctions against Iran
as well as conflict in Iraq, while an explosion at a U.S. oil rig and reduced exploration activity
supported prices there.
Brent crude futures, the international benchmark for oil prices, were at $57.85 at 0356 GMT, up 68
cents, or 1.2 percent, from the previous close. Traders said that worries over renewed U.S.
sanctions against Iran were pushing up prices.
U.S. President Donald Trump struck a blow against the 2015 Iran nuclear deal on Friday, defying
both U.S. allies and adversaries by refusing to formally certify that Tehran is complying with the
accord even though international inspectors say it is.
Oil price special
coverage
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Under U.S. law, the president must certify every 90 days to Congress that Iran is complying with
the deal. The U.S. Congress will now have 60 days to decide whether to reimpose economic
sanctions on Tehran that were lifted under the pact.
During the previous round of sanctions against Iran, some 1 million barrels per day (bpd) of crude
oil supplies were cut off global markets. While analysts said they did not expect renewed
sanctions to have such a big impact again, especially as the United States would likely act alone,
they did warn that such a move would be disruptive.
"If Iran (were) found breaching their nuclear agreement and had their trade agreement revoked,
(that) would be the biggest catalyst for upward momentum on crude prices," said Shane Chanel,
equities and derivatives adviser at ASR Wealth Advisers.
There were also concerns about the stability of Iraq, the second biggest oil producer within the
Organization of the Petroleum Exporting Countries (OPEC) behind Saudi Arabia. Iraqi forces on
Sunday began moving towards oil fields and an important airbase held by Kurdish forces near the
oil-rich city of Kirkuk, Iraqi and Kurdish officials said.
Greg McKenna, chief market strategist at futures brokerage AxiTrader said that "Trump's
reopening of the Iran nuclear issue, (and) the ongoing threat of the Kurdish pipeline being cut off"
were the main factors pushing up oil prices.
U.S. oil rig explosion
An explosion overnight at an oil rig in Louisiana's Lake Pontchartrain drew market attention, with
at least six people injured. U.S. crude prices were also supported by drillers cutting back the
number ofrigs looking for new production.
U.S. West Texas Intermediate (WTI) crude futures were trading at $51.89 per barrel, up 44 cents,
or 0.9 percent. Drillers cut five oil rigs in the week to Oct. 13, bringing the total count up to 743, the
lowest since early June, General Electric Co's Baker Hughes energy services firm said late on
Friday.
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The Kurdish oil disruption immpact
Futures in London rose as much as 1.3 percent after gaining 2.8 percent last week. Iraqi
soldiers moved late Sunday to take over fields in the northern city of Kirkuk from Kurdish forces.
That’s amid an intensifying conflict after the semi-autonomous Kurdistan Regional Government,
Brent crude has risen in six of the past seven weeks on signs output curbs by OPEC and its allies
are draining a glut. While exports of about 600,000 barrels a day from Kirkuk’s oil fields and
deposits inside the adjacent Kurdish region were said to continue on Sunday, Eurasia Group
estimates Iraq taking control could cut shipments by 450,000 barrels daily until the government
repairs a pipeline to Turkey or reaches a revenue-sharing deal with the Kurds.
“Tensions are definitely escalating in Iraq at the moment, and it will be a supporting factor for oil
prices for the time being,” said Kim Kwangrae, a Seoul-based commodities analyst at Samsung
Futures Inc. “It’s a complex issue as it involves Kirkuk oil fields that produce about 550,000 barrels
a day as well as the neighboring countries such as Turkey, which is threatening to cut off the
pipeline.”
Brent for December settlement rose much as 73 cents to $57.90 a barrel on the London-based
ICE Futures Europe exchange, and traded at $57.84 at 7:45 a.m. in London. Prices added 92
cents to $57.17 on Friday. The global benchmark traded at a premium of $5.68 to December West
Texas Intermediate.
WTI for November delivery advanced as much as 54 cents, or 1.1 percent, to $51.99 a barrel on
the New York Mercantile Exchange. The grade gained 1.7 percent to $51.45 on Friday. Total
volume traded was about 3 percent above the 100-day average.
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Iraq is the second-largest producer in the Organization of Petroleum Exporting Countries,
pumping most of its 4.47 million barrels a day from fields in the south and shipping it from the
Persian Gulf port of Basrah. The Kurdish region, meanwhile, relies on a pipeline to the port of
Ceyhan in neighboring Turkey to get most of its crude to market. The conduit also transports
some 100,000 barrels a day of oil from federal-run fields in Kirkuk.
The shipments from Kirkuk combine crude pumped by Iraq’s state-owned North Oil Co. and by the
KRG, and both flows are normal, Kirkuk Governor Najmaddin Kareem said Sunday.
The Kurdistan Security Council confirmed in a Twitter message late Sunday that Iraqi forces and
Shiite militias have advanced from southern Kirkuk, intending to take over a military base near the
oil fields.
Although these produce much less than the fields in the south of the country they are nonetheless
important, both economically and strategically, to the Kurdish and Baghdad governments alike.
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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The Kurds built their own pipeline to the Turkish border after the Baghdad-controlled line fell into
the hands of ISIS in 2014. Kurdish troops also took control of areas around the city of Kirkuk,
including several oil fields, after the Iraqi army fled. While its actions certainly stopped those fields
from falling into the hands of insurgents, Baghdad now wants them back.
As if the situation weren't tense enough, the KRG has just held a referendum on independence.
The polling wasn't confined to the Kurdish governorates of northeast Iraq, but included the
disputed Kirkuk region as well. The result was overwhelming, with more than 92 percent voting in
favor of self-determination.
Does this matter to anyone outside the region? You bet.
On Par With Qatar
The Kurdish Regional Government exports around 565,000 barrels of crude a day, about the
same amount as OPEC member Qatar
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Note: Average exports January-September 2017 by discharge location
Turkey, fearing the impact of the referendum on its own Kurdish population, has threatened to
shut the pipeline from Kurdistan to its Mediterranean oil terminal at Ceyhan. The KRG has
exported 160 million barrels through Turkey so far this year, according to Bloomberg tanker
tracking. Although the flow has remained undiminished in the three weeks since voting took place,
Turkey could stop it overnight.
Around a third of this oil is produced by foreign investors like DNO ASA, Genel Energy Plc and
Gulf Keystone Petroleum Ltd. Bigger companies with strong political backing have also invested in
the region. Russia's Gazprom Neft and Rosneft both have interests in Kurdish projects, as does
Chevron. Not only could any disruption hurt these companies, European refiners would also get
squeezed.
MED MARGIN
And Baghdad's own northern output is at risk. After losing its pipeline to Turkey, the Iraqi
government has been shipping crude produced by its North Oil Company through the Kurdish
infrastructure. However two-faced officials must be about the operation -- they denounce oil sales
by the KRG as illegal -- they've got no choice but to use it during the long period it will take to
develop an alternative.
Kurdistan is clearly in a very vulnerable position. It is heavily dependent on revenues from oil
exports, but those in turn are entirely dependent on transit across Turkey. There is no other viable
route to get Kurdish crude to international markets in any meaningful quantity.
But it is not just Turkey's economic threat that the Kurds are facing. Iran has closed border
crossings, Baghdad has banned flights and imposed banking restrictions. Iraqi troops and Iranian-
backed Shia militias seem to be gathering on the borders of Kurdish controlled territory. The Kurds
have sent 6,000 additional troops to defend Kirkuk, fearing an attack.
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Slowing Oil Demand Growth to Push Oil From Cars to Chemicals
Bloomberg - Javier Blas
Global oil demand growth will slow to a crawl and gasoline use will peak within the next decade,
prompting the the world’s biggest energy companies to accelerate the shift to natural gas and
chemicals, according to consultant Wood Mackenzie Ltd.
Major crude producers will have to adapt to significant changes in the coming years, but their
businesses can grow. Oil consumption will keep expanding until at least 2035 as the
petrochemical industry, which provides the building blocks to manufacture everything from plastics
to pesticides, makes up for the contraction in some transport fuels, the industry consultant said in
a report on Monday.
There’s also natural gas, used in power plants and increasingly trucks and ships. In a sign of the
growing importance of this less carbon-intensive fuel, the Oil & Money conference, a gathering of
hundreds of industry executives that celebrates its 38th year on Tuesday in London, will open with
a full day devoted exclusively to gas.
"The issue for Big Oil is how companies position themselves in a fairly quickly moving landscape,"
Ed Rawle, Houston-based chief economist at Wood Mackenzie, said in an interview. Oil is unlikely
to drive long-term growth but "gas supply remains relatively robust through 2035, and is a growing
focus."
The prospect of peak oil demand is hotly contested in the energy industry. Some companies,
including Royal Dutch Shell Plc and BP Plc, anticipate it happening between 2025 and 2040.
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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Others, such as Exxon Mobil Corp. and Chevron Corp, still forecast decades of uninterrupted
growth.
No Peak
By 2035, the expansion in oil demand won’t have peaked but will be “minimal compared with what
we have seen over the past twenty years," Wood Mackenzie said in the report. Consumption will
have reached a plateau in regions including Europe, the U.S., China and Japan. Only India and
some other parts of Asia, Latin America, Africa and the Middle East will still be growing, the
consultant said.
The report said the prospect of an eventual peak in consumption is "is very real," but presented a
nuanced view of what will become a multi-speed market. Fuel oil and gasoline consumption will be
shrinking -- the latter in part due to the growing popularity of electric vehicles. Demand for naphtha
-- used as a feedstock in the petrochemical industry -- will be booming. Diesel consumption will
rise too, albeit at a slower pace.
Despite their differences about when oil demand will peak, the world’s largest integrated energy
companies are nonetheless preparing for the future, largely through a push to invest more in
natural gas. They see this fuel playing a greater role in emerging markets including China and
India, which are battling air pollution from coal-fired power stations.
The oil industry’s biggest deal in recent years was Shell’s purchase of BG Group Plc for $54 billion
in 2016, which consolidated its position as the world’s biggest producer and trader of liquefied
natural gas. The deal turned Europe’s largest energy producer from "an oil-and-gas company to a
gas-and-oil company," said Chief Executive Officer Ben Van Beurden.
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NewBase Special Coverage
News Agencies News Release October 16-2017
Lithium Race And Energy Revolution:Electric Cars Are A Hit
With Chinese Consumers.
Wall Street Journal made a very good report on the electric cars revolution which is happening
today in China. The video report is stressing that all this success is the result of the industrial
policy by the government in China.
We have The New Energy Plan for the transition to Post Carbon Economy in action in China on a
state level. With announcements from GM and Ford embracing electric cars, we have some hope
in the West now not to be left in the poisonous Diesel and Gas ICE Cars dust as well.
Lithium is the magic metal at the very heart of this Energy revolution and China is building the
supply chains for the Next Industrial revolution with military discipline leaving the rest of the world
totally unprepared for the coming geopolitical transition.
As you know, I have been preaching for years that security of lithium supply will be the most
important factor determining the competitive advantage among different producers of critical raw
materials for the Energy revolution.
This Lithium Race will have the very far-reaching geopolitical implications. Now it looks like that
Tesla is realizing that there is no secure supply of lithium for its massive expansion of operations
from the underneath of Gigafactory floor in Nevada. Even if Panasonic is producing cathode for
lithium cells which are made at Tesla Gigafactory in Nevada the supply chain is going all over the
globe and back to China.
The real test to the market and supply chains for Energy revolution will come with the coming tide
of Electric Cars and the following tsunami of Energy Storage. Bloomberg has recently reported
that there will be more than 120 models of electric cars by 2020 and you should not be surprised
as we have discussed here before that there are more than 70 models of electric cars on sale in
China already.
The next few years will determine who will have the keys to the new Energy revolution and control
the supply chains. Hungry Dragons are flying high already and mostly in China, the question
remains who and how will feed them without fear of being burnt in the process.
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,
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
We have finally actual steps taken by China in its transition into the Post Carbon Economy and
leaving literally The ICE Age in the poisonous dust behind. China is The Centre of The Lithium
Universe and now they are ready to start geopolitical shift which will affect everything.
BYD is talking about China going all electric from 2030, but today we have the first major step in
that direction with an introduction of a quota for electric cars from 2019. In short two years time, all
automakers in China with over 30,000 cars in annual sales will have to produce at least 10%
electric cars.
It can be translated in over 2.8 million new electric cars in China being sold in 2019! Last year
China has seen the fastest growth pace in three years with total auto sales climbing to 28.03
million cars. From 2020 automakers will have to produce 12% of electric cars.
Now we have a better understanding why Ganfeng Lithium: JV partner of International Lithium -
was going vertical last few months. This kind of news is travelling very fast in the state corridors
of power in China. This geopolitical move will have very wide political and economic
implications as we have discussed it here for a long time. China is very well positioned to take the
lead now and the ICE Age Of Oil is officially over.
We are reaching the tipping point this year: convergence of technology, new players who bring
competition and prices down; and anti-pollution movement by the most important countries for the
automakers. DieselGate was the last drop and auto lobby cannot just swipe it under the rug
anymore, consumers are not buying "Clean Diesel".
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,
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
Needless to say that lithium supply chains are not even close to the coming Tsunami of electric
cars after Tesla Model S Earthquake. Countries like China and India are very serious to clean up
their skies from deadly pollution and now we have lithium technology to make it possible: electric
cars will take the world over much faster than a lot of people think.
Electrification of China and India will drive the next phase of the worldwide growth in EV
fleet. India has announced that all new cars on sale will be electric by 2030 and they are taking it
seriously making the first tender for 10,000 EVs to be supplied for the government ministries and
agencies now. Transfer of the best technology for Lithium Batteries and Electric Cars will be
next. China is already The Centre of The Lithium Universe and exercises its state-level New
Energy Plan step by step with the military discipline, starting with securing a Lithium Supply Chain.
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,
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
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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 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 October 2017 K. Al Awadi
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,
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
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,
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 21

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New base 16 october 2017 energy news issue 1085 by khaled al awadi-

  • 1. 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, 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 16 October 2017 - Issue No. 1084 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: Adnoc puts almost all of its subsidiaries under single unified brand The national - Mustafa Alrawi The Abu Dhabi National Oil Company is aligning almost all of its subsidiary companies under its Adnoc brand, the latest phase of its transformation into a more commercially-focused and performance-driven company as it looks to unlock maximum value from its resources, operations and partnerships. The transformation strategy is being implemented by group chief executive Sultan Al Jaber, who took on the role last year with a mandate to make Adnoc more efficient and resilient. The unified branding move supports efforts to create a “culture that is progressive, performance- driven, commercially focused and innovative”, said Dr Al Jaber. He described this “critical” change as both a challenge and an opportunity that would define Adnoc’s success. The activities of the Adnoc group encompass upstream, midstream and downstream sectors with 3 million barrels of oil and 9.8 billion cubic feet of raw gas produced a day. Its 20 specialist subsidiaries and joint ventures will become 16 under the unified brand. For example, the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco) – the two offshore units that are currently going through a consolidation – will be known as Adnoc Offshore. Adnoc Logistics & Services will include shipping and ports services companies the Abu Dhabi National Tanker Company (Adnatco), the Petroleum Services Company (Esnaad) and the Abu Dhabi Petroleum Ports Operating Company (Irshad) - accounting for some 4,000 employees - which have already been undergoing an integration process since the end of last year. Abu Dhabi Gas Industries, or Gasco, will be rebranded Adnoc Gas Processing and Al Hosn Gas, a joint venture with Occidental Petroleum, becomes Adnoc Sour Gas. National Drilling Company (NDC) becomes Adnoc Drilling. The single brand identity will also be rolled out across the 317 service stations operated by Adnoc Distribution.
  • 2. 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, 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 Dr Al Jaber said that each company will, however, maintain operational autonomy within the group’s "centralised governance model". Suppliers, customers and other groups and individuals that do business with Adnoc subsidiaries will be unaffected by the rebranding, he said. Borouge, its petrochemicals joint venture with Austria’s Borealis will not be renamed because of its “well-established brand and reputation” in that industry, according to Dr Al Jaber. Exploration and production units Al Yasat and Al Dhafra, which are in the early stages of their operations, are also exempted although they will eventually evolve and fall under the unified Adnoc brand identity, he said. Under Dr Al Jaber, Adnoc is opening up for new partnerships and co-investments, for the first time across all areas of the group – not just in oil & gas concessions and petrochemicals but also in drilling, pipelines, storage and refining – and potential partners include international pension funds, private equity investors and global infrastructure specialists. It is considering the sale of a stake to the public in Adnoc Distribution as part of its new corporate strategy to more actively manage its portfolio of assets.
  • 3. 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, 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 Pakistan: Kandhkot Achieves Record Gas Production TargetPakistan Petroleum Limited of 230 Kandhkot Gas Field, one of the oldest gas fields in Pakistan, has achieved a milestone reaching gas production capacity of 230MMscfd recently. It is set to ramp up its production further to a record level of 250 MMscfd. Situated on the right bank of Indus River, Kandhkot Gas Field’s reserves are concentrated in the Habib Rahi Limestone, Sui Main and Upper Limestone reservoirs. The target of gas production was achieved ahead of time. The record production enhancement within tight deadlines was made possible due to the company’s consistent efforts to tap optimal potential of Kandhkot.
  • 4. 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, 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 It has committed to the government last year it would provide additional gas for power generation through fast-track drilling in a challenging environment. Two compressor units and debottlenecking of production facilities were added to the system. Kandhkot Gas Field was discovered shortly after Sui Gas Field in 1959, however, its production did not begin until 1983 due to low gas demand. In order to meet contractual delivery demand for gas sale, development wells are being drilled in the field. To this end, six development wells were drilled in record time of 9 months with multi-rig operation, successfully finding sweet spots in a mature field and enhancing field capacity by 90 MMscfd gas which can be delivered to national grid. An additional three development wells are planned to be drilled this year to sustain the production plateau. Minister of State for Petroleum Division, Ministry of Energy Jam Kamal Khan, Governor Sindh Muhammad Zubair and other provincial and local government officials, area notables, media personnel as well as company directors and staff were present on the occasion. In his welcome address, MD and CEO Syed Wamiq Bokhari, highlighted the company’s aggressive exploration and production program with a focus on remarkable production enhancement from Kandhkot. He also shared PPL’s recent achievements, including net production crossing the 1 Bcfpde mark along with a record drilling of 25 wells in operated areas during 2016-17, an all-time high for the company. Pakistan Petroleum (PPL) has enhanced the production of gas by 8 percent to 1 billion cubic foot daily (BCFD) in current fiscal year. Before this, gas output was declining with an average of 5 percent yearly. PM Abbasi lauded PPL’s efforts to support the government’s resolve to bridge the demand-supply gap by ramping up production, particularly from its mature fields like Kandhkot. Prime Minister, Shahid Khaqan Abbasi, formally marked the exceptional production enhancement at Kandhkot Gas Field (KGF) during a well-attended event hosted by Pakistan Petroleum Limited (PPL).
  • 5. 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, 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 UK to publish draft energy price cap laws, seeking to fix 'broken' market Reuters ( images by NewBase) Britain will publish a draft law on Thursday designed to cap consumer gas and electricity prices for millions of households, taking action to try and fix a market it says punishes loyal customers. Prime Minister Theresa May first proposed a price cap on the energy sector earlier this year, the biggest market intervention since its privatisation almost 30 years ago. Her announcement last week that the plan would go ahead initially wiped more than 900 million pounds ($1.19 billion) off the value of the two British listed companies Centrica and SSE alone. Energy bills have doubled in Britain over the past decade to an average of about 1,200 pounds ($1,500) a year, putting the biggest providers in the sights of politicians. "I have been clear that our broken energy market has to change — it has to offer fairer prices for millions of loyal customers who have been paying hundreds of pounds too much," May said in an emailed statement on Thursday. The government will publish the draft laws later in the day, inviting scrutiny from parliament before it begins the legislative process. No details about the level of the cap were provided in advance. Under the bill, the regulator Ofgem would bring in a price cap on standard variable tariffs (SVTs), which are basic rates that energy suppliers charge if a customer does not opt for a specific plan. The business department said the cap would come in as soon as practicable after the legislation has passed. It will be a temporary measure, in place until the end of 2020 and Ofgem will then decide if the cap needs to remain, depending on how the market is working. The cap is seen as a way to appeal to those voters who, after seven years of public spending cuts, are struggling with rising inflation and weak wage growth. The leftist opposition Labour Party, which has long advocated intervention in energy markets, performed better than expected at a June snap election, depriving May of an outright majority in parliament. Britain's energy market is dominated by the so-called big six providers — Centrica's British Gas, SSE, Iberdrola's Scottish Power, Innogy's npower, E.ON and EDF Energy, which account for about 85 percent of the retail electricity market. More than 18 million customer accounts in Britain are currently on a standard variable tariff or other default tariffs, many of which offer poor value to customers because they are priced higher than the fixed-rate deals available to consumers who actively seek them out. The government said it wanted to go further that plans announced on Wednesday by Ofgem to extend an existing price cap which applies only to vulnerable consumers. Ofgem said that whatever was contained in the upcoming legislation, the government's price cap would not come into effect for the upcoming winter.
  • 6. 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, 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 OPEC Sees ‘Healthy’ Oil Demand Growth to 2022 Bloomberg - Wael Mahdi Oil demand will grow at a “healthy pace” over the next five years as renewables show the fastest expansion of any type of energy, the head of the Organization of Petroleum Exporting Countries said. Crude demand will climb an average 1.2 million barrels a day through 2022 and slow to 300,000 barrels a day in 2035 to 2040, OPEC Secretary General Mohammad Barkindo said Sunday in Kuwait, giving a preview of OPEC’s 2017 World Oil Outlook set to be released Nov. 7. The share of fossil fuels in the global energy mix will slip below 80 percent by 2020 and fall to 75.4 percent by 2040, he said. Wind, solar, geothermal and photovoltaic sources will be the fastest-growing energy, increasing by an average of 6.8 percent a year from 2015 to 2040, though still accounting for less than 5.5 percent of the world’s total energy mix by 2040, he said. Barkindo discussed his outlook for oil demand as OPEC and allied producers wrestle with a global oversupply that has dragged crude prices to half the level of their 2014 peak. OPEC, Russia and other suppliers are debating whether to extend output cuts that are set to expire in March, in an effort to drain the glut -- fed partly by U.S. shale -- and shore up prices. Benchmark Brent crude, which ended Friday trading at $57.17 a barrel, is up 0.6 percent this year as the cuts, which began in January, have taken effect. OPEC plans to meet next month in Vienna to weigh its options.
  • 7. 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, 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 “The medium-term outlook for oil demand is for a significant increase to 2022 with a healthy average annual increase,” Barkindo said. “In the global energy mix, we see fossil fuels retaining a dominant role albeit with a declining overall share through 2040.” ‘Rapidly Improving’ With the global economy growing and oil demand expected to grow by 1.45 million barrels a day this year, oil market indicators are “rapidly improving,” Barkindo said. Inventories in developed nations stood at the beginning of the year at 338 million barrels above the five-year average, OPEC’s main criteria for assessing the re-balancing of the market. In August, they were at 159 million barrels, he said. The amount of crude in floating storage has also declined, down an estimated 40 million barrels since the start of the year, he said. Backwardation in the Brent market is one more sign of improving market conditions, Barkindo said. “Retaining sustainability in market stability beyond 2018 is an absolute prerequisite for investments to be able to cover future oil demand.,” Barkindo said. “Beyond our forecasts and the positive momentum we are seeing now, there is still the fundamental need to ensure sustainable stability, so that the market does not stall once the necessary stocks are withdrawn.” OPEC's Output Curbs Squeeze World's Biggest Oil Refining Complex Being sophisticated in the age of OPEC output curbs can prove a disadvantage, as the operator of the world’s biggest oil-refining complex is discovering. Reliance Industries Ltd.’s 1.24 million barrel-a-day facility in western India features highly advanced units designed to process the globe’s heaviest types of crude, which have historically been cheaper than lighter varieties because they are more difficult to break down into fuels. Now, a drive by the Organization of Petroleum Exporting Countries to stabilize the oil market is squeezing supplies of such grades and making them relatively costlier. The result: Billionaire Mukesh Ambani’s company posted quarterly profit that lagged behind estimates for the first time in more than two years. Reliance earned $12 for every barrel of crude it turned into fuel in the second quarter ended Sept. 30, compared with a prediction by CLSA India Pvt. for as much as $12.80 a barrel. Shares of the company were down 0.7 percent on Monday at 12:28 p.m. in Mumbai, compared with a 0.3 percent gain in the broader S&P BSE Sensex Index. Refining margins fell below expectations as OPEC’s curbs led to the lower availability of cheaper grades of crude, according to Srikanth Venkatachari, Reliance’s joint chief financial officer. “There is nothing which suggests that suddenly supply of heavy crude has eased, so this condition will persist.”
  • 8. 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, 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 NewBase October 16 - 2017 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Oil Gains on Concern Iraq-Kurd Tensions Will Disrupt Crude Flows Reuters + Blomberg + NewBase Oil markets jumped on Monday on concerns over potential renewed U.S. sanctions against Iran as well as conflict in Iraq, while an explosion at a U.S. oil rig and reduced exploration activity supported prices there. Brent crude futures, the international benchmark for oil prices, were at $57.85 at 0356 GMT, up 68 cents, or 1.2 percent, from the previous close. Traders said that worries over renewed U.S. sanctions against Iran were pushing up prices. U.S. President Donald Trump struck a blow against the 2015 Iran nuclear deal on Friday, defying both U.S. allies and adversaries by refusing to formally certify that Tehran is complying with the accord even though international inspectors say it is. Oil price special coverage
  • 9. 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, 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 Under U.S. law, the president must certify every 90 days to Congress that Iran is complying with the deal. The U.S. Congress will now have 60 days to decide whether to reimpose economic sanctions on Tehran that were lifted under the pact. During the previous round of sanctions against Iran, some 1 million barrels per day (bpd) of crude oil supplies were cut off global markets. While analysts said they did not expect renewed sanctions to have such a big impact again, especially as the United States would likely act alone, they did warn that such a move would be disruptive. "If Iran (were) found breaching their nuclear agreement and had their trade agreement revoked, (that) would be the biggest catalyst for upward momentum on crude prices," said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers. There were also concerns about the stability of Iraq, the second biggest oil producer within the Organization of the Petroleum Exporting Countries (OPEC) behind Saudi Arabia. Iraqi forces on Sunday began moving towards oil fields and an important airbase held by Kurdish forces near the oil-rich city of Kirkuk, Iraqi and Kurdish officials said. Greg McKenna, chief market strategist at futures brokerage AxiTrader said that "Trump's reopening of the Iran nuclear issue, (and) the ongoing threat of the Kurdish pipeline being cut off" were the main factors pushing up oil prices. U.S. oil rig explosion An explosion overnight at an oil rig in Louisiana's Lake Pontchartrain drew market attention, with at least six people injured. U.S. crude prices were also supported by drillers cutting back the number ofrigs looking for new production. U.S. West Texas Intermediate (WTI) crude futures were trading at $51.89 per barrel, up 44 cents, or 0.9 percent. Drillers cut five oil rigs in the week to Oct. 13, bringing the total count up to 743, the lowest since early June, General Electric Co's Baker Hughes energy services firm said late on Friday.
  • 10. 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, 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 The Kurdish oil disruption immpact Futures in London rose as much as 1.3 percent after gaining 2.8 percent last week. Iraqi soldiers moved late Sunday to take over fields in the northern city of Kirkuk from Kurdish forces. That’s amid an intensifying conflict after the semi-autonomous Kurdistan Regional Government, Brent crude has risen in six of the past seven weeks on signs output curbs by OPEC and its allies are draining a glut. While exports of about 600,000 barrels a day from Kirkuk’s oil fields and deposits inside the adjacent Kurdish region were said to continue on Sunday, Eurasia Group estimates Iraq taking control could cut shipments by 450,000 barrels daily until the government repairs a pipeline to Turkey or reaches a revenue-sharing deal with the Kurds. “Tensions are definitely escalating in Iraq at the moment, and it will be a supporting factor for oil prices for the time being,” said Kim Kwangrae, a Seoul-based commodities analyst at Samsung Futures Inc. “It’s a complex issue as it involves Kirkuk oil fields that produce about 550,000 barrels a day as well as the neighboring countries such as Turkey, which is threatening to cut off the pipeline.” Brent for December settlement rose much as 73 cents to $57.90 a barrel on the London-based ICE Futures Europe exchange, and traded at $57.84 at 7:45 a.m. in London. Prices added 92 cents to $57.17 on Friday. The global benchmark traded at a premium of $5.68 to December West Texas Intermediate. WTI for November delivery advanced as much as 54 cents, or 1.1 percent, to $51.99 a barrel on the New York Mercantile Exchange. The grade gained 1.7 percent to $51.45 on Friday. Total volume traded was about 3 percent above the 100-day average.
  • 11. 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, 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 Iraq is the second-largest producer in the Organization of Petroleum Exporting Countries, pumping most of its 4.47 million barrels a day from fields in the south and shipping it from the Persian Gulf port of Basrah. The Kurdish region, meanwhile, relies on a pipeline to the port of Ceyhan in neighboring Turkey to get most of its crude to market. The conduit also transports some 100,000 barrels a day of oil from federal-run fields in Kirkuk. The shipments from Kirkuk combine crude pumped by Iraq’s state-owned North Oil Co. and by the KRG, and both flows are normal, Kirkuk Governor Najmaddin Kareem said Sunday. The Kurdistan Security Council confirmed in a Twitter message late Sunday that Iraqi forces and Shiite militias have advanced from southern Kirkuk, intending to take over a military base near the oil fields. Although these produce much less than the fields in the south of the country they are nonetheless important, both economically and strategically, to the Kurdish and Baghdad governments alike.
  • 12. 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, 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 The Kurds built their own pipeline to the Turkish border after the Baghdad-controlled line fell into the hands of ISIS in 2014. Kurdish troops also took control of areas around the city of Kirkuk, including several oil fields, after the Iraqi army fled. While its actions certainly stopped those fields from falling into the hands of insurgents, Baghdad now wants them back. As if the situation weren't tense enough, the KRG has just held a referendum on independence. The polling wasn't confined to the Kurdish governorates of northeast Iraq, but included the disputed Kirkuk region as well. The result was overwhelming, with more than 92 percent voting in favor of self-determination. Does this matter to anyone outside the region? You bet. On Par With Qatar The Kurdish Regional Government exports around 565,000 barrels of crude a day, about the same amount as OPEC member Qatar
  • 13. 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, 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 Note: Average exports January-September 2017 by discharge location Turkey, fearing the impact of the referendum on its own Kurdish population, has threatened to shut the pipeline from Kurdistan to its Mediterranean oil terminal at Ceyhan. The KRG has exported 160 million barrels through Turkey so far this year, according to Bloomberg tanker tracking. Although the flow has remained undiminished in the three weeks since voting took place, Turkey could stop it overnight. Around a third of this oil is produced by foreign investors like DNO ASA, Genel Energy Plc and Gulf Keystone Petroleum Ltd. Bigger companies with strong political backing have also invested in the region. Russia's Gazprom Neft and Rosneft both have interests in Kurdish projects, as does Chevron. Not only could any disruption hurt these companies, European refiners would also get squeezed. MED MARGIN And Baghdad's own northern output is at risk. After losing its pipeline to Turkey, the Iraqi government has been shipping crude produced by its North Oil Company through the Kurdish infrastructure. However two-faced officials must be about the operation -- they denounce oil sales by the KRG as illegal -- they've got no choice but to use it during the long period it will take to develop an alternative. Kurdistan is clearly in a very vulnerable position. It is heavily dependent on revenues from oil exports, but those in turn are entirely dependent on transit across Turkey. There is no other viable route to get Kurdish crude to international markets in any meaningful quantity. But it is not just Turkey's economic threat that the Kurds are facing. Iran has closed border crossings, Baghdad has banned flights and imposed banking restrictions. Iraqi troops and Iranian- backed Shia militias seem to be gathering on the borders of Kurdish controlled territory. The Kurds have sent 6,000 additional troops to defend Kirkuk, fearing an attack.
  • 14. 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, 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 Slowing Oil Demand Growth to Push Oil From Cars to Chemicals Bloomberg - Javier Blas Global oil demand growth will slow to a crawl and gasoline use will peak within the next decade, prompting the the world’s biggest energy companies to accelerate the shift to natural gas and chemicals, according to consultant Wood Mackenzie Ltd. Major crude producers will have to adapt to significant changes in the coming years, but their businesses can grow. Oil consumption will keep expanding until at least 2035 as the petrochemical industry, which provides the building blocks to manufacture everything from plastics to pesticides, makes up for the contraction in some transport fuels, the industry consultant said in a report on Monday. There’s also natural gas, used in power plants and increasingly trucks and ships. In a sign of the growing importance of this less carbon-intensive fuel, the Oil & Money conference, a gathering of hundreds of industry executives that celebrates its 38th year on Tuesday in London, will open with a full day devoted exclusively to gas. "The issue for Big Oil is how companies position themselves in a fairly quickly moving landscape," Ed Rawle, Houston-based chief economist at Wood Mackenzie, said in an interview. Oil is unlikely to drive long-term growth but "gas supply remains relatively robust through 2035, and is a growing focus." The prospect of peak oil demand is hotly contested in the energy industry. Some companies, including Royal Dutch Shell Plc and BP Plc, anticipate it happening between 2025 and 2040.
  • 15. 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, 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 Others, such as Exxon Mobil Corp. and Chevron Corp, still forecast decades of uninterrupted growth. No Peak By 2035, the expansion in oil demand won’t have peaked but will be “minimal compared with what we have seen over the past twenty years," Wood Mackenzie said in the report. Consumption will have reached a plateau in regions including Europe, the U.S., China and Japan. Only India and some other parts of Asia, Latin America, Africa and the Middle East will still be growing, the consultant said. The report said the prospect of an eventual peak in consumption is "is very real," but presented a nuanced view of what will become a multi-speed market. Fuel oil and gasoline consumption will be shrinking -- the latter in part due to the growing popularity of electric vehicles. Demand for naphtha -- used as a feedstock in the petrochemical industry -- will be booming. Diesel consumption will rise too, albeit at a slower pace. Despite their differences about when oil demand will peak, the world’s largest integrated energy companies are nonetheless preparing for the future, largely through a push to invest more in natural gas. They see this fuel playing a greater role in emerging markets including China and India, which are battling air pollution from coal-fired power stations. The oil industry’s biggest deal in recent years was Shell’s purchase of BG Group Plc for $54 billion in 2016, which consolidated its position as the world’s biggest producer and trader of liquefied natural gas. The deal turned Europe’s largest energy producer from "an oil-and-gas company to a gas-and-oil company," said Chief Executive Officer Ben Van Beurden.
  • 16. 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, 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 NewBase Special Coverage News Agencies News Release October 16-2017 Lithium Race And Energy Revolution:Electric Cars Are A Hit With Chinese Consumers. Wall Street Journal made a very good report on the electric cars revolution which is happening today in China. The video report is stressing that all this success is the result of the industrial policy by the government in China. We have The New Energy Plan for the transition to Post Carbon Economy in action in China on a state level. With announcements from GM and Ford embracing electric cars, we have some hope in the West now not to be left in the poisonous Diesel and Gas ICE Cars dust as well. Lithium is the magic metal at the very heart of this Energy revolution and China is building the supply chains for the Next Industrial revolution with military discipline leaving the rest of the world totally unprepared for the coming geopolitical transition. As you know, I have been preaching for years that security of lithium supply will be the most important factor determining the competitive advantage among different producers of critical raw materials for the Energy revolution. This Lithium Race will have the very far-reaching geopolitical implications. Now it looks like that Tesla is realizing that there is no secure supply of lithium for its massive expansion of operations from the underneath of Gigafactory floor in Nevada. Even if Panasonic is producing cathode for lithium cells which are made at Tesla Gigafactory in Nevada the supply chain is going all over the globe and back to China. The real test to the market and supply chains for Energy revolution will come with the coming tide of Electric Cars and the following tsunami of Energy Storage. Bloomberg has recently reported that there will be more than 120 models of electric cars by 2020 and you should not be surprised as we have discussed here before that there are more than 70 models of electric cars on sale in China already. The next few years will determine who will have the keys to the new Energy revolution and control the supply chains. Hungry Dragons are flying high already and mostly in China, the question remains who and how will feed them without fear of being burnt in the process.
  • 17. 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, 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 We have finally actual steps taken by China in its transition into the Post Carbon Economy and leaving literally The ICE Age in the poisonous dust behind. China is The Centre of The Lithium Universe and now they are ready to start geopolitical shift which will affect everything. BYD is talking about China going all electric from 2030, but today we have the first major step in that direction with an introduction of a quota for electric cars from 2019. In short two years time, all automakers in China with over 30,000 cars in annual sales will have to produce at least 10% electric cars. It can be translated in over 2.8 million new electric cars in China being sold in 2019! Last year China has seen the fastest growth pace in three years with total auto sales climbing to 28.03 million cars. From 2020 automakers will have to produce 12% of electric cars. Now we have a better understanding why Ganfeng Lithium: JV partner of International Lithium - was going vertical last few months. This kind of news is travelling very fast in the state corridors of power in China. This geopolitical move will have very wide political and economic implications as we have discussed it here for a long time. China is very well positioned to take the lead now and the ICE Age Of Oil is officially over. We are reaching the tipping point this year: convergence of technology, new players who bring competition and prices down; and anti-pollution movement by the most important countries for the automakers. DieselGate was the last drop and auto lobby cannot just swipe it under the rug anymore, consumers are not buying "Clean Diesel".
  • 18. 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, 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 Needless to say that lithium supply chains are not even close to the coming Tsunami of electric cars after Tesla Model S Earthquake. Countries like China and India are very serious to clean up their skies from deadly pollution and now we have lithium technology to make it possible: electric cars will take the world over much faster than a lot of people think. Electrification of China and India will drive the next phase of the worldwide growth in EV fleet. India has announced that all new cars on sale will be electric by 2030 and they are taking it seriously making the first tender for 10,000 EVs to be supplied for the government ministries and agencies now. Transfer of the best technology for Lithium Batteries and Electric Cars will be next. China is already The Centre of The Lithium Universe and exercises its state-level New Energy Plan step by step with the military discipline, starting with securing a Lithium Supply Chain.
  • 19. 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, 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 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE 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 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 October 2017 K. Al Awadi
  • 20. 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, 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
  • 21. 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, 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 21