New base 19 august 2021 energy news issue 1450 by khaled al awad i

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NewBase Energy News 19 August 2021 - Issue No. 1450 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: FANR built a strong nuclear and radiological
regulatory infrastructure
WAM/Tariq alfaham
The Federal Authority for Nuclear Regulation (FANR), the United Arab Emirates’ independent
nuclear regulator, has issued its 2020
Annual Report, illustrating its efforts to
regulate nuclear and radiological sectors
in the UAE to ensure the protection the
public, workers and the environment.
In 2020, despite the challenges caused
by the Coronavirus pandemic, FANR successfully maintained its regulatory functions by conducting
oversight covering nuclear safety, radiation safety, nuclear security, nuclear non-proliferation,
continued its capacity building programme to equip Emiratis to ensure sustainability of the nuclear
and radiation sectors as well as streamlining its national and international cooperation.
The Barakah Nuclear Power Plant FANR issued the first operating license for the Unit 1 of the
Barakah Nuclear Power Plant in February 2020, making the UAE as the first Arab country to operate
a nuclear power plant.
The operating license was issued for Nawah Energy Company (Nawah), the operator, to operate
the plant for a period of 60 years. The issuance decision culminates FANR’s efforts since it received
the Operating License Application from the operator in 2015 and hence, FANR followed a systematic
The Federal Authority of Nuclear Regulation (FANR) has been awarded an
Intellectual Property Certification for the Regulatory Oversight Management
System (ROMS). The system provides an integrated solution to manage all
regulatory oversight data for the Barakah Nuclear Power Plant and measure
the licensee’s performance.

review process that included a thorough assessment of the application documentation, conducting
robust regulatory oversight and inspections.
FANR reviewed the 14,000 page Operating License Application, conducted more than 185
inspections and requested approximately 2,000 additional requests of information on various
matters related to reactor design, safety and other issues to ensure the Barakah Nuclear Power
Plant’s compliance with all regulatory requirements.
Following the operating license issuance, FANR conducted around-the-clock inspection of all the
various testing processes, including nuclear fuel loading, start-up phase, grid connection, leading
to the commercial operation of the unit to generate electricity in the country.
"2020 has been another milestone year for FANR in delivering its mandate to ensure the peaceful,
safe and secure use of nuclear energy and radiation sources as well as develop the sustainability
of the UAE’s regulatory infrastructure according to its 2017-2021 Corporate Strategy.
The year constituted a challenge nationally and internationally after the declaration by the World
Health Organisation of Coronavirus (Covid-19) as a global pandemic. The UAE, thanks to the vision
and wisdom of its leadership, has managed to steer safely through the situation.
In addition, FANR has efficiently and diligently maintained its regulatory functions to protect the
community, workers and the environment using its smart systems," said Abdulla Nasser Al Suwaidi,
Chairman of FANR.
"FANR in 2020 continued the journey towards realizing its vision to be a globally recognized nuclear
regulator by providing thorough oversight of the nuclear industry in the UAE.
Since its establishment in 2009, FANR has set up a robust regulatory infrastructure that has
procedures and processes in place that ensure we carry out our mission to protect the public and
environment from radiation hazards as well as ensuring the safety, security and peaceful use of all
nuclear activities in the country," said Christer Viktorsson, Director-General of FANR.
Nuclear Non-Proliferation FANR has been supportive of the UAE’s commitments towards
international nuclear non-proliferation regime. Despite the pandemic, FANR ensured business
continuity with respect to the correct, complete and timely submissions to the International Atomic
Energy Agency (IAEA) of nuclear material accounting reports, facility attachments records and
additional protocol declarations.
Furthermore, FANR played an important role in improving the UAE’s ranking in the Logistics
Performance Index as part of the UAE 2021 National Agenda. FANR’s Nuclear Technology
(NuTech) was integrated with the General Authority of Ports, Borders, & Free Zone Security
(Manafth) Advance Cargo Information (ACI).

There were other efforts to integrate the Nutech portal with other government entities across the
UAE. The portal achieved processed over 3,000 requests and hitting 99 percent customer
satisfaction.
Radiation Safety Protecting the workers, public and the environment represents the core of FANR’s
mission. FANR continued its regulatory mission by carrying out some 283 inspections for medical
& non-medical purposes. It also issued 1,097 licenses for medical and non-medical uses of radiation
sources as well as issued 1,307 permits.
FANR continued to monitor the radioactivity levels in the UAE environment, using the FANR
environmental laboratory in Abu Dhabi and various monitoring stations across the UAE. More than
150 samples were collected from the air, soil, water and sediment.
In addition to the laboratory analyses, more than 500,000 individual measurements of gamma dose
rates were collected from a network of 17 gamma monitoring stations throughout the UAE.
In addition, FANR’s Secondary Standards Dosimetry Laboratory (SSDL) provided over 600
calibration certificates to customers from medical, industrial and nuclear sectors in the UAE. FANR
also launched the smart SSDL Portal where it enables the customers to submit directly their
calibration requests and to download their calibration certificates.
Nuclear Emergency Preparedness The Emergency Operation Centre of FANR is equipped with
state-of-the art equipment to coordinate FANR’s response in case of any nuclear or radiological
emergency.
In 2020, FANR continued to strengthen its own system and capabilities to be able to response to
an emergency by organising drills and taking part in other exercises in coordination with national
entities and the International Atomic Energy Agency (IAEA). It conducted and took part in drills
nationally and internationally as well as held various training workshops.
Building Emirati Capacity in the nuclear sector FANR remains dedicated to developing Emiratis in
the nuclear sector, and this forms part of its capacity building and sustainability efforts. FANR
completed the Legal ‘Developee’ programme and two ‘developees’ joined the Legal Department of
FANR.
Moreover, 40 directors and managers took part in the first FANR’s Leadership Development Centre
as part of the Leadership and Management Development Programme. It establishes a platform for
FANR’s employees to become better leaders and contributors to FANR’s regulatory mission.
FANR’s various capacity-building programmes contribute to an increase of number of Emiratis to
reach around 68 percent and women to constitute almost 41 percent of total workforce.
To view the full report, please visit the following link:
https://www.fanr.gov.ae/PublishedOnline/Annual%20Report%202021/index.html#page-zero

Oman:EDO successfully secure $B2.5 financing transaction (2)
Oman Observer _ NewBase
Energy Development Oman (EDO) SAOC has successfully secured a $2.5 billion debut financing
transaction, which attracted an overwhelming market response at very competitive rates. Unlocking
value: The deal was oversubscribed by more than 100 per cent which is a testament to investors’
confidence in EDO and Oman’s economy.
The funding will further support EDO in achieving its key objective of alleviating the Government’s
Block 6 funding requirements. The Company is also mandated to create growth; enhance
efficiencies and governance in Oman’s oil, gas, and new energies sector; and unlock value through
diversification and value chain integration.
The deal was oversubscribed by more than 100 per cent which is a testament to investors’
confidence in EDO and Oman’s economy.
EDO Interim Chief Executive Officer Haifa al Khaifi said: “The creation of EDO and the progress
made since its establishment constitute a historic achievement for Oman, and it will serve as a
vehicle for accelerated development and value creation. In particular, the successful execution of
the syndicated deal is a major milestone for EDO and the country.
“The strong participation from local, regional and international banks is another sign of Oman’s
attractiveness for global investors and paves the way for fruitful and sustainable collaboration with
international partners”.
EDO was established through Royal Decree (128/2020) following which the Block 6 Oil Concession
was transferred (Royal Decree 21/2021) and a new Block 6 Gas Concession was granted (Royal
Decree 43/2021). Since then, EDO has made substantial progress in its journey to become Oman’s
energy champion and to support the Sultanate’s economic diversification.
With a vision “to be a world-class partner for growth, driving a sustainable energy future”, EDO takes
inspiration from Oman’s 2040 vision of transitioning to renewables, leveraging and maximising
Oman’s world-class development opportunities.

Egypt: United Oil and Gas announces spudding of the ASX-1X
exploration well … Source: United Oil & Gas
AIM-listed United Oil & Gas has announced the spudding of the ASX-1X exploration well in the Abu
Sennan Licence, Egypt on 14 August. United holds a 22% working interest in the Licence, which is
operated by Kuwait Energy Egypt.
Highlights:
 Drilling of the ASX-1X exploration well commenced on 14 August 2021
 The well is located c. 7km to the north of the producing Al Jahraa field and will test a number
of stacked reservoir targets
 In a success-case scenario, the well is expected to take up to 54 days to drill, test and
complete
United's Chief Executive Officer, Brian Larkin commented:
'There is considerable exploration potential in the Abu Sennan licence, and it is great to be actively
drilling our second exploration well this year to further unlock that potential. We are delighted that
the ASX-1X exploration well has been spudded and look forward to updating shareholders once the
well has reached the target reservoirs.'
ASX-1X Exploration Well
ASX-1X is a vertical exploration well, located c. 7km to the north of the producing Al Jahraa Field.
The well is targeting a similar structure to the nearby discovery that was recently made at ASD-1X,
with primary targets in the Abu Roash C and E reservoirs, and secondary targets in the deeper
Bahariya and shallower Khoman Formations.
The ASX prospect had always ranked highly for United among the identified exploration targets in
Abu Sennan, and with the de-risking provided by the positive result at ASD-1X only 11km away,
and the short timeframe in which that discovery was put into production, the ASX-1X prospect has
become a prioritised target.
The ASX-1X is expected to be the final well of the 2021 campaign, with longer-term plans for
unlocking the additional potential in the Abu Sennan licence currently under discussion.

Saudi Aramco take 30% stake in Sudair Solar 1500MW plant
Araian Business + NewBase
Oil giant will hold a 30% stake in the Sudair solar project, while ACWA and partner Water &
Electricity Holding Co. will each own 35%. Saudi Aramco is looking to spend on renewable energy
projects alongside the sovereign investor, the Public Investment Fund, as global economies seek
to transition to greener energy.
Saudi Aramco is joining a group led by ACWA Power to build a nearly $1 billion solar power plant
in the kingdom as the world’s largest oil-exporting nation expands renewable energy supply.
Aramco will hold a 30 percent stake in the Sudair solar project, while ACWA and partner Water &
Electricity Holding Co. will each own 35 percent. ACWA, itself 50 percent owned by the Saudi
sovereign wealth fund, said it had reached financial close with lenders on the 1,500 megawatt
project.
Saudi Arabia has been slow to move away from fossil fuels in favour of clean energy. Energy
Minister Prince Abdulaziz bin Salman announced the Sudair plant in April, saying it will be the
country’s largest when it starts operating. The plant will start producing power in second half of
2022.
Saudi Aramco is looking to spend on renewable energy projects alongside the sovereign investor,
the Public Investment Fund, as global economies seek to transition to greener energy. Aramco CEO
Amin Nasser said last week the company is studying hydrogen production and export even as
it invests to expand oil output capacity and sales.
The banks financing the project include Mizuho Financial Group, Riyad Bank, Korea Development
Bank, Arab Petroleum Investments Corp., Al Rajhi Bank, and Standard Chartered Plc as senior
lenders and mandated lead arrangers. Bank Al Bilad, Saudi British Bank and SMBC International
Plc will provide equity bridge facilities.
OVERVIEW
Sudair Solar PV is poised to become one of the largest single-contracted solar PV plants in the
world and the largest of its kind in Saudi Arabia at an installed capacity of ~1,500MW. First project
under The Public Investment Fund’s (PIF) renewable energy programme, the project has recorded
the second lowest cost globally for Solar PV electricity production [USD 1.239 cents/kwh].
The PIF-backed consortium, led by ACWA Power, signed a power purchase agreement with the
Saudi Power Procurement Company for 25 years. Sudair PV IPP will be capable of powering
185,000 homes and offsetting nearly 2.9 million tons of emissions per year. The project’s initial
commissioning is expected during the second half of 2022.

Afghanistan's trillion-dollar mineral wealth power for EVs?
The National - Deena Kamel | Jennifer Gnana + NewBase
This week the Taliban seized control of Afghanistan for the second time in two decades giving it
access to the country's vast mineral deposits worth trillions of dollars, which are in high demand by
countries such as China and essential for the production of electric vehicles amid a global pivot to
clean energy. But can this wealth transform the country and help with the global pivot to clean
energy?
War-scarred Afghanistan's valuable resources remain largely untapped, due to decades of conflict
and corruption and any international ventures to extract Afghanistan's mineral wealth are fraught
with more risk and uncertainties than rewards, according to economists and industry experts.
"Afghanistan’s mines are significant, valued at over a trillion dollars and if utilised can lift many
people from poverty, create jobs and forge opportunities," Said Sabir Ibrahimi, non-resident fellow
at the Centre on International Cooperation in New York University, said. "There are opportunities
but the uncertainties are greater."
Afghanistan's mineral industry is valued at about $3 trillion and contributes seven to 10 per cent to
its gross domestic product, according to the country's Ministry of Mines and Petroleum. Plagued by
decades of conflict, Afghanistan could unlock great wealth from mining materials such as lithium,
gold and copper, but previous development attempts have stalled due to poor infrastructure, security
risks and a lack of transparency.
"Geologically speaking, Afghanistan’s mineral wealth is quite high with a rich mix of traditional
precious materials and gemstones as well as metallic minerals such as lithium and the rare earths
critical to a wide array of advanced and green technologies," said Rod Schoonover, head of the
Ecological Security Programme at the Council on Strategic Risks.
Afghanistan is sitting on rich reserves of iron ore, copper, gold and rare earth metals, according to
its mines ministry. Aluminium, tin, lead and zinc are located in multiple areas of the country.
Gemstones, rare earth metals, sulphur, talc, gypsum and chromite are predominant across central
Afghanistan, Baghlan, Kunduz, Logar and Khost, among other areas, it said.
Afghanistan stands to benefit from China's expanding economic might in Central Asia through the
Belt and Road Initiative.

The Central Asian country's vast mineral wealth, including deposits of lithium, could prove an
invaluable asset to China's efforts to expand the supply chain for batteries used in electric vehicles.
"Unlike in the 1990s, Afghanistan's neighbour China is now a manufacturing powerhouse with global
reach," said Michaël Tanchum, a senior fellow at the Austrian Institute for European and Security
Policy and a non-resident fellow at the Middle East Institute in Washington. "That changes the
equation since the Taliban's control over Afghanistan now comes at a time when there is a supply
crunch for these minerals for the foreseeable future and China needs them.
"Sky-rocketing demand for copper, lithium and cobalt, in particular, is being driven in large measure
by the transition to green energy."
Beijing dominates the lithium-ion battery supply chain, largely due to growing domestic demand,
which is estimated at 72 gigawatts per hour, as well as its control over 80 per cent of global raw
material refining, according to BloombergNEF.
China also wields significant clout as it controls 77 per cent of the world's cell capacity and 60 per
cent of component manufacturing, data showed.

Chinese interest in procuring materials required in batteries for electric vehicles is in line with the
country's efforts to decarbonise. Beijing, the world's biggest importer of oil, is looking to clear its
polluted cities and has mandated electric vehicles to make up 40 per cent of all car sales by 2030.
Lithium and cobalt are used to make electric batteries critical to the transition to electric vehicles
and the large-scale use of batteries to store power from renewable energy resources.
The lithium-ion battery market is expected to grow to $116.6 billion by 2030 from $41.1bn this year,
according to Grand View Research. The market is expected to grow at a compound annual rate of
12.3 per cent over the next decade. Lithium is a sought-after mineral for the battery market, which
is the main component of electric cars, sales of which are booming amid global efforts to reach net
carbon neutrality by 2050.
"China already has first-mover position in Afghanistan to mine these minerals," Mr Tanchum said.
In 2007, the Metallurgical Corporation of China (MCC) acquired a 30-year lease to mine copper at
Afghanistan's Mes Aynak for $3bn, the largest foreign investment in the country's history. MCC's
mining operations have been plagued by political instability and the conflict between the Taliban
and the former Afghan government.
"If the Taliban can provide China stable operating conditions, then the copper operations alone
potentially could produce tens of billions of dollars of revenue, spurring the development of lithium
and cobalt mining operations for other minerals in the country," Mr Tanchum said.
For Beijing, the search for and access to new lithium reserves is a particularly urgent proposition.
Currently, Chile, which lies several continents away from China, is the biggest source of lithium.
Australia, which has fraught relations with Beijing is second.
This makes China's search for lithium deposits in its own backyard a more economical option.

.
However, foreign investors seeking to tap into Afghanistan's mineral riches face great risks and
mounting uncertainties, analysts said.
The current regime will need to ensure security, eradicate corruption, attract international
companies and gain international recognition to develop ties and be able to attract foreign direct
investment, experts said.
"As far as investment in copper, cobalt or lithium goes, it will be very difficult to attract any significant
investment/capex in the mining sector," Amit Bhandari, fellow of energy and environment at
Gateway House, said. "These are large investments which pay back over several years – in the
current political and security climate, any corporate will be very hesitant to put down money in
Afghanistan."
In addition, the landlocked country will face logistical challenges in transporting its minerals to key
markets, he said. Sea access via Iran is difficult because the country is under sanctions while
Pakistan's national railway network is not sufficiently well-developed to get bulk commodities by
sea, he said.
"Fully realised mineral extraction requires more than geological abundance: Security, infrastructure,
energy and water resources, and a trained workforce are all necessary as well," Mr Schoonover
said.
Australia, Chile, China, Argentina are among countries apart from Afghanistan that already produce
stable supply chains for lithium, he added.
Afghanistan's mineral resources have been untouched for about 40 years, with the previous
government failing to meaningfully capitalise on this wealth in a major way, with past attempts at
extraction from mines leading to no major successes.

Afghan miners work in a coal mine in 100 km east of the western city of Herat in Afghanistan. There
are trillions of dollars worth of mineral deposits in Afghanistan, however with barely any mining
industry or infrastructure in place in the war-torn country, there are doubts as to how Afghanistan
will be able to manage this windfall. Getty Images.
"It will be a heavy lift for the new regime to capitalise on its mineral resources in a way that benefits
the Afghan people," Mr Schoonover said. "Beyond the lack of necessary security measures needed
for extraction, the country also suffers from a great deal of illegal and unregulated mining that both
enables and benefits from corruption."
Analysts also cast doubt on the Taliban’s interest in developing the Afghan economy and
establishing their legitimacy with the international community.
“The new regime may also struggle with international legitimacy which will make it harder for
companies to invest in Afghanistan,” Mr Ibrahimi said. “Remember the Taliban were in control in the
1990s and they did nothing major for the economy or governance in general.”
The approach to mining must also take into consideration environmental factors.
"Viewing mining possibilities narrowly through an economic lens, with disregard to adverse impacts
on people and almost certain ecological harm, is quite likely to worsen conditions for the average
Afghan rather than benefit them," Mr Schoonover said.
Afghanistan’s economy has been primarily dependent on foreign aid with domestic revenue
sufficient to finance only around half of budgeted expenditures, according to the World Bank.
The country's economy grew by an average of 9.4 per cent between 2003 and 2012, driven by a
booming aid-supported services sector and farming output. Economic activity slowed to about 2.5
per cent per annum between 2015 and 2020, according to the Washington-based lender.
As a result of Covid-19, the onset of a drought, lower remittances, declining trade and growing
instability in the country, the International Monetary Fund revised its growth forecast downwards in
June to 2.7 per cent this year from an earlier 4 per cent estimate.
With the world's future economy becoming increasingly electric, Afghanistan's ability to make use
of its vast resources will be crucial for its economy and for the global race for electric cars and
cleaner technologies.

U.S. natural gas net trade is growing as annual LNG exports
exceed pipeline exports…U.S. Energy Information Administration, Short-Term Energy Outlook (STEO)
In our August 2021 Short-Term Energy Outlook (STEO), we forecast that U.S. natural gas exports
will exceed natural gas imports by an average of 11.0 billion cubic feet per day (Bcf/d) in 2021, or
almost 50% more than the 2020 average of 7.5 Bcf/d.
Increases in liquefied natural gas (LNG) exports and in pipeline exports to Mexico are driving this
growth in U.S. natural gas exports. For the first time since U.S. LNG exports from the Lower 48
states began in 2016, annual LNG exports are expected to outpace pipeline exports—by an
estimated 0.6 Bcf/d—this year.

We forecast total U.S. natural gas exports to continue to grow throughout 2021 and 2022, exceeding
the record of 14.4 Bcf/d set in 2020. We expect U.S. exports of natural gas by pipeline and as LNG
combined to average 18.3 Bcf/d in 2021 and 19.3 Bcf/d in 2022.
LNG exports exceeded pipeline exports for the first time on a monthly basis in November 2020, and
we expect them to average 9.5 Bcf/d and exceed natural gas imports by pipeline (8.9 Bcf/d) in 2021.
In 2020, natural gas exports accounted for 23% of total U.S. energy exports in energy equivalent
terms. U.S. LNG exports in particular have grown as the United States has added LNG export
capacity and expanded its LNG export destinations.
We expect U.S. imports of natural gas by pipeline and as LNG, combined, to increase by 6%
compared with 2020, averaging 7.4 Bcf/d in 2021, before declining to 6.9 Bcf/d in 2022. Almost all
U.S. natural gas imports enter the United States from Canada into midwestern and western demand
markets.
U.S. pipeline imports previously had been declining annually since 2008. However, we expect
pipeline imports of natural gas to increase in 2021 because of relatively flat U.S. dry natural gas
production and slightly higher U.S. natural gas consumption.
Natural gas exports by pipeline—almost all of which are sent to Mexico—began exceeding gross
pipeline imports on an annual basis in 2019. In 2020, U.S. pipeline exports exceeded imports by
1.1 Bcf/d, and we expect this difference to increase to 1.7 Bcf/d in 2021 and 2.5 Bcf/d 2022.
NewBase August 19-2021 Khaled Al Awadi

NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil drop lowest Since May on COVID surge & more supply
NewBase + Reuters + Bloomberg
Crude prices fell for a sixth day on Thuresday, as investors remain worried about the outlook for
fuel demand as COVID-19 cases surge worldwide just as more supply reaches the market from
large global producers, including the United States.
Oil benchmarks have been under pressure for the last few weeks due to the rise in infections caused
by the Delta variant of the coronavirus worldwide. Several countries have re-introduced travel
restrictions and air traffic has softened in recent weeks. read more
Minutes of the U.S. Federal reserve's July 27-28 policy meeting showed officials noted the spread
of the Delta variant could temporarily delay the full reopening of the economy, and restrain the jobs
market. read more
Brent crude ended down 80 cents, or 1.2%, at $68.23 a barrel. The global benchmark has lost 11%
in the last 13 trading days dating to the end of July. U.S. crude futures settled down $1.13, or 1.7%,
to $65.46 a barrel.
U.S. crude inventories fell 3.2 million barrels last week to 435.5 million barrels, their lowest since
January 2020, according to U.S. Energy Department figures. Gasoline stocks, however, rose
modestly, and gasoline product supplied to the market - a measure of demand - was 9.5 million
barrels per day, just 1% below 2019 levels.
Oil price special
coverage

Fuel demand in the world's top consumer has steadily increased throughout the year with the four-
week average of overall U.S. product supplied was 20.8 million bpd, in line with pre-coronavirus
levels from 2019.
Although weekly production figures are volatile, analysts noted that U.S. crude output continued its
steady rise, hitting 11.4 million bpd last week.
That has come just as the Organization of the Petroleum Exporting Countries, along with allies like
Russia, agreed to raise output by 400,000 bpd every month for the next several months, returning
some of the supply the group has held back since early 2020.
"In combination with the weaker demand outlook, and in combination with OPEC saying they were
going to add, U.S. supply is beginning to creep up," said Al Salazar, vice president of intelligence at
Enverus in Calgary.
The International Energy Agency last week said that demand for crude oil was expected to increase
at a slower rate over the rest of 2021 because of surging cases of the Delta variant.
Also bearish for the markets in the longer term, a U.S. offshore regulator on Wednesday said efforts
to resume a federal oil and gas leasing program were underway and would soon bear results
following a court decision ending a suspension.
Fed Signals Intent to Taper
Oil tumbled again, dropping to the lowest level since May as the U.S. Federal Reserve signaled it
was set to start tapering asset purchases within months, hurting commodities and lifting the dollar.
West Texas Intermediate futures fell 3.7%, declining for a sixth straight day and sinking in tandem
with equities and other commodities like copper and iron ore. The Fed delivered a fresh blow to
crude, which had already been weakening as the delta virus variant hits demand in Asia. A surprise
jump in U.S. gasoline stockpiles underscored the risks.

Oil’s impressive rally in the first half of the year has lost momentum in July and August amid the
threat to demand posed by spread of delta, including in key importer China. Gains in the dollar in
recent weeks have also acted as a brake on prices, making commodities priced in the U.S. currency
more expensive. At the same time, OPEC+ has pushed ahead with gradually restoring supplies.
“Economic growth concerns, stronger dollar and a risk-off environment are not helping oil,” said
Giovanni Staunovo, an analyst at UBS Group AG. “Demand will continue to recover in an uneven
way over the coming weeks and the oil market remains undersupplied. So that should still support
prices down the road.”
To cushion the U.S. economy from the blow inflicted by the pandemic, the Fed has been buying
$120 billion of assets every month, buoying commodities and stocks. The minutes of the meeting
showed that most participants now judged it could be appropriate to start reducing them.
“The overall environment was fragile to begin with, so I think the Fed minutes yesterday just added
another layer of fragility to that,” said Howie Lee, an economist at Oversea-Chinese Banking Corp.
“It’s just broad risk aversion across markets.”
U.S. shale oil output to rise to highest since May 2020
U.S. shale oil output is expected to rise to 8.1 million barrels per day (bpd) in September, the highest
since May 2020, according to the Energy Information Administration’s monthly drilling productivity
report on Monday.
The forecast is led by growth in the largest formation, the Permian Basin, where crude output is
estimated to rise 49,000 bpd in the month, offsetting falling output expected from the Bakken and
other top regions.
Production in the Permian is expected to reach 4.8 million bpd in September, the highest since
March 2020.

In contrast, output in the Eagle Ford in South Texas is expected to slide by 5,000 bpd to 1.05 million
bpd while the Bakken basin of North Dakota and Montana is expected to see a decline of about
1,000 bpd to 1.14 million bpd.
As oil prices recovered from the lows seen last year, U.S. energy firms have ramped up some drilling
activity. U.S. oil rigs rose 10 to 397 last week, their highest since April 2020, and up from 172 a
year ago, Baker Hughes data showed.
Enverus, a provider of energy data with its own closely watched rig count, said the number of active
rigs increased by eight to 575 in the week to Aug. 11 with most of the increases in Appalachia and
the Permian.
Total gas output will increase by 0.16 billion cubic feet per day (bcfd) to 86.1 bcfd in September, the
EIA said.
Gas output in Appalachia, the biggest shale gas basin, was expected to increase by less than 0.1
bcfd to 34.4 bcfd in September. That compares with a monthly record of 35.6 bcfd in December
2020.
Gas output in the Haynesville in Texas, Louisiana and Arkansas was expected to increase by over
0.1 bcfd to 13.5 bcfd in September.

U.S: Coronavirus flare-ups delay full oil demand recovery: Kem
By John Kemp
U.S. petroleum consumption has recovered to pre-pandemic levels, but there has been a marked
shift from consumer-facing sectors towards industry and freight transportation, mirroring the uneven
economic recovery.
The total volume of petroleum products supplied to domestic customers climbed to 20.1 million
barrels per day (bpd) in May, according to the Energy Information Administration (“Petroleum supply
monthly”, EIA, July 30).
Volumes were down by less than 300,000 bpd (1.4%) from the same month in 2019, before the
COVID-19 pandemic, and were actually 200,000 bpd (1.1%) above the pre-pandemic five-year
average for 2015-2019.
But continued strong growth in consumption of hydrocarbon gas liquids (HGLs), mostly used in
petrochemicals and other industries, has masked an incomplete recovery in fuels supplied to end-
users.
HGL consumption reached 3.4 million bpd in May, up from 2.7 million bpd in May 2019, and an
average of 2.5 million bpd in the five years before the coronavirus hit.
By contrast, consumption of finished petroleum products was 16.5 million bpd, down from 17.5
million bpd two years earlier and a five-year average of 17.3 million bpd.

Of 1 million bpd of finished consumption lost compared with the final year before the epidemic, half
was jet fuel (-0.5 million bpd) with smaller amounts of gasoline (-0.4 million bpd) and diesel (-0.2
million bpd).
Gasoline consumption was down by only 4% from 2019, and diesel down by 6%, but jet fuel was
still down by 26%, mostly owing to the sharp reduction in international flights .
Since then, gasoline consumption has continued to rise and is now down less than 2% from the pre-
epidemic average, according to high-frequency weekly surveys.
The resumption of aviation, especially long-haul passenger flights, has therefore become critical to
the full recovery in petroleum consumption.
The same pattern is apparent in other major oil-consuming areas, including Europe and China,
where data is published with longer delays.
This is why the resurgence of the coronavirus in North America, Europe and China, as well as the
continuing epidemics across the rest of the world, has had such a strong impact on oil prices.
Governments are unlikely to remove the remaining quarantines and social-distancing controls fully
until there are stronger signs that outbreaks are under control and the northern hemisphere winter
has passed.

As a result, the expected resumption of widespread long-haul flying, which had already been pushed
back from the second quarter of 2021 to the second half, now looks likely to be delayed even further
until well into 2022.

NewBase Special Coverage
The Energy world – August - 19- -2021
Global oil & gas market to grow this year to $5.87 trillion
www.W7worldwide.com
The global oil and gas market is expected to grow from $4.68 trillion in 2020 to $5.87 trillion in 2021
at a compound annual growth rate (CAGR) of 25.5%.
According to the Oil and Gas Global Market Report 2021: Covid-19 Impact and Recovery to 2030
by W7Worldwide, the market is expected to reach $7.43 trillion in 2025 at a CAGR of 6%.
The oil and gas industry is adopting the development of a circular economy to make its operations
more sustainable and help address climate change. The circular economy presents a unique market
opportunity upwards of $4.5 trillion by 2030.
Saudi Arabia, for example, has used its year in the G20 presidency to promote its circular carbon
economy scheme. As part of the Vision 2030 programme, the kingdom is the first country to export
blue hydrogen for zero carbon power generation. Saudi Arabia is targeting to take supply leadership
in the rapidly growing hydrogen market.
“Public opinion has always played a large part in the oil and gas industry around economic,
environmental, community and safety issues,” emphasises Abdulrahman Inayat, Co-Founder and
Director of W7Worldwide.
“Effective communication is therefore critical as a vital tool for companies to differentiate themselves
from competitors and demonstrate credibility, expertise, and trustworthiness. Employees,
customers, the industry, the community, and other audiences need to hear from you with your plans
for a resilient and sustainable future.”
W7Worldwide has produced a ‘7-Step Communications Guide to help Transform Oil & Gas Sector
Post Covid-19’, setting out the key tactics to apply for a future-proof communications strategy.

The report advises that leaders in the oil and gas sector need to adopt climate-focused principles
into their business models; organising messaging about both the energy transition, the expected
need for oil and gas for decades to come, as well as the value of oil and gas companies in building
the next generation of clean energy resources and technologies.
A multitude of stakeholders are involved throughout all various stages of an oil and gas project, so
they need to be kept well informed and engaged to create positive outcomes for everyone.
Companies are advised to expand their influence with thought leadership, industry and government
level outreach to see the organisation’s perception shift from operator to thought leader and change-
maker.
To appeal to today’s talent, publics, and customers, oil and gas companies must meet them where
they are, and that is online. Branded messaging needs to move away from the technical jargon and
instead present compelling content that resonates.
With the Covid-19 pandemic, the kind of emergencies and crises the oil and gas sector is used to
dealing with have changed and become more wide-ranging. The combination of personnel
accountability and effective communications drives a fast and effective crisis response.
The oil and gas sector is currently facing the twofold challenge of sustaining operations and
managing their workforce. The industry has long been grappling with high employee turnover and
attracting talent to often remote or difficult locations. Business success therefore depends on
focusing on people’s engagement in the company culture.
Corporate PR and Communications can no longer be considered a support function to the oil and
gas sector. Sustained public relations campaigns will help drive the organisational and business
strategy change imposed by Covid-19, build public perceptions around safety and sustainability
issues, and drive reputation with key stakeholders.-- TradeArabia News Service

NewBase Energy News 19 August 2021 - Issue No. 1450 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.

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