New base 23 november 2017 energy news issue 1104 by khaled 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,
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NewBase Energy News 23 November 2017 - Issue No. 1104 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
India: Smog-Choked India Is Giving the Filthiest Fuel
a Tax Advantage
Bloomberg + NewBase
Indians grappling with the risk of stroke, heart disease and lung cancer from pollution have to
contend with an unlikely adversary: The taxman.
Prime Minister Narendra Modi’s rollout of the country’s biggest tax overhaul in decades is
encouraging the use of petroleum coke, a fuel that spews more emissions than others. That’s
because it’s being taxed at a rate that may be lower for some buyers than the alternative, and
much cleaner natural gas.
Petcoke is taxed at 18 percent under the new nationwide system. Natural gas, however, is
excluded and subjected instead to local levies that could add as much as 30 percent to its cost.
The goods and services tax, or GST, introduced in July is already posing a challenge for Modi,
with rising concerns over its impact on small businesses representing almost half the economy.
New Delhi shrouded in smog earlier this month

It’s also threatening his administration’s efforts to curb emissions in a nation that’s home to 14 of
the 30 most-polluted cities in the world. India has plans to more than double the share of gas in its
energy mix to 15 percent.
“The current tax structure is a deterrent for natural gas and encourages the use of dirtier fuels,”
said Rajeev Sharma, chief executive officer of Adani Gas Ltd., which distributes piped gas in cities
including Faridabad, an industrial township bordering the capital, New Delhi. “There is a clear
disincentive for industries to use natural gas because of the various taxes it is burdened with.”
While Chinese cities are more infamous for skylines marred by smog, pollution in New
Delhi skyrocketedearlier this month, with the deadly level of carcinogenic pollutants roughly 10
times the reading in Beijing. As a thick toxic haze enveloped the city, schools shut down, traffic
was halted on highways and residents went scurrying to buy air purifiers and filtration masks.
Experts called the situation a major public health emergency.
The use of petcoke is prohibited in New Delhi and some of its surrounding areas, and the nation’s
top court on Friday refused to relax the ban. Still, it remains in use in the rest of the country.
While China has limited the use of the fuel, its consumption in India nearly doubled to 23.3 million
tons in the year ended March from 2014, when oil prices crashed.
Petcoke has about 65,000-75,000 parts per million of sulfur, while coal has about 4,000 ppm and
natural gas has zero sulfur emissions, according to a Nov. 9 report from the Environment Pollution
(Prevention & Control) Authority for the National Capital Region, which includes Delhi and its
surrounding suburbs.

Under the new Indian tax system that aims to create a common market in the country of 1.3 billion
people, petcoke users can claim tax credits on its use. The exclusion of natural gas means its
users can’t. Coal is taxed at five percent under GST, with an additional environmental levy of 400
rupees a ton.
“The tax anomaly distorts natural gas prices,” by adding as much as $2 to a price of about $7 per
million British thermal unit, according to Debasish Mishra, a partner at Deloitte Touche Tohmatsu
LLP in Mumbai. “The government does realize it’s a problem and I expect natural gas to be
included in GST quite soon. It’s not going to be a difficult decision, as the states don’t rely on it for
revenues as much as they do for some other products.”
The price of petcoke and coal, excluding taxes and freight, was about a third of natural gas in the
northern state of Uttar Pradesh when measured by their gross heating value, according to
Bloomberg calculations based on data from Indraprastha Gas Ltd., a natural gas distributor.
“Natural gas needs a big push in the fight against pollution,” according to K. Ravichandran, senior
vice-president at credit assessor ICRA Ltd., the local unit of Moody’s Investors Service. “Bringing
gas under GST can narrow the price distortions and encourage industries to opt for the cleaner
fuel.”
Finance Ministry spokesman D.S. Malik didn’t respond to two calls to his mobile phone, while oil
ministry spokesman Alok Deshwal and environment ministry spokesman Himank Kothiyal couldn’t
immediately comment.

India met about 62 percent of its petcoke demand during the year to March 31 through imports
from countries such as the U.S., Saudi Arabia and China. Most Indian refiners including Reliance
Industries Ltd. and Indian Oil Corp. produce the fuel, a byproduct of refining crude oil.
“The dirtiest fuel -- pet coke -- is going to get a tax benefit in India, whereas gas will
not,” according to Chandra Bhushan, deputy director general at the Centre for Science and
Environment in New Delhi. “Petcoke has the highest sulfur content. It’s easy to access, it’s
cheaper, and we’re importing it from both China and the U.S.”

UK:UAE Masdar and partner opens Dudgeon Offshore Wind Farm
Abu Dhabi future energy company Masdar has inaugurated its third wind farm in the UK, thus
bringing the combined power-generating capacity of all three projects to 1 GW, enough to supply
clean energy to nearly 1 million homes.
Masdar is a 35 per cent stakeholder in Dudgeon, alongside its Norwegian partners Statoil (35 per
cent) and Statkraft (30 per cent). Together with its partners Statoil and Statkraft, Masdar staged
the official "switch on" of the 402-MW Dudgeon Offshore Wind Farm, located 32 km off the Norfolk
coast in England.
Comprising 67 wind turbines, Dudgeon is now supplying around 410,000 UK homes in one of the
largest deployments of 6MW wind turbines, the most powerful on the market. Dudgeon joins
Hywind Scotland, the world’s first floating wind farm, which Masdar also developed with Statoil,
and the London Array, still the world’s largest offshore wind farm currently in operation at 630MW.
The ceremony was attended by Eldar Saetre, the president and chief executive of Statoil,
Mohamed Jameel Al Ramahi, the chief executive of Masdar, and Steinar Bysveen, the executive
VP of Wind Power, District Heating and Projects, Statkraft.
Also present were Hugo Robson, the chief commercial negotiator at the UK’s Department for
Business, Energy and Industrial Strategy; Mohammed Sharaf, UAE Assistant Minister of Foreign
Affairs and International Cooperation for Economic and Trade Affairs; Elnar Remi Holmen, State
Secretary at the Norwegian Ministry of Petroleum and Energy, and Kerry Robinson-Payne, Mayor
of Great Yarmouth.
Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and Chairman of Masdar, said: "Today’s
inauguration of Dudgeon highlights Masdar’s emergence as a global renewable energy leader and
the value of international partnerships in successfully deploying large-scale renewable energy
projects."

"Together with London Array and Hywind Scotland, it also positions the UAE at the forefront of the
UK's drive to meet its domestic power demand through clean energy sources. The increasing cost
efficiency of offshore wind technology is unlocking substantial commercial opportunities for the
wider energy sector, as illustrated by the success of Dudgeon," he stated.
Al Ramahi said: "Today marks the completion of a three-year journey to deliver our third wind
power project in the United Kingdom, but only the latest step in our collaboration with Statoil and
Statkraft."
"We are proud to have played a significant role in the delivery of Dudgeon, both on the operations
side and in terms of financing. The teamwork among our three companies has been exceptional, a
key factor in the successful delivery of this flagship wind energy project," he added.
Saetre said Statoil will grow significantly in renewable energy as part of its strategy to develop
from a traditional oil and gas company to a diversified energy provider. It has set up an ambition
plan to invest around NOK100 billion ($12 million) over the next few years.
"Dudgeon is a key part of this strategy to complement our oil and gas portfolio with profitable
renewable energy solutions, as well as adding to Statoil’s strong UK presence," he added.-
The Dudgeon Offshore Wind Farm 402 MW is an exciting £1.5 billion project to harness offshore wind to
power more than 410,000 UK homes.
All the offshore and onshore construction consents have been in place for this wind farm since late 2012,
and it is now scheduled to be completed and fully commissioned by late 2017.Through the joint venture
company Dudgeon Offshore Wind Limited, it is owned by Statoil, Statkraft and Masdar.
Statoil and Statkraft are two leading Norwegian energy companies and Masdar is an international investor
in renewable energy and sustainable technology based in Abu Dhabi, United Arab Emirates. Statoil is
developing the Dudgeon Offshore Wind Farm and will continue as its operator when it starts generating
electricity in early 2017.

Egypt, Cyprus to discuss building gas pipeline
Trade Arabia + NewBase
Egypt and Cyprus have agreed to begin talks next month on the construction of a pipeline to
transport natural gas from Cypriot fields to Cairo, a media report said.
The agreement includes the construction of gas lines on the Mediterranean coast, the first of
which will be dedicated to receive Cypriot gas from the Aphrodite and Cyprus 1 fields, in Damietta,
Egypt, for liquefying gas, reported Daily News Egypt, citing government sources.
The second line extends from Egypt across the Mediterranean Sea, reaching Cyprus and from
there, extending to Crete, Greece, and then continuing to northern Europe.
Egypt is liquefying the gas from the Aphrodite field for re-export to Europe, receiving revenues
from liquefied gas, and consuming part of it in the local market, thus diversifying gas resources,
the sources said.
Egypt and Cyprus have also signed a cooperation protocol for the electrical interconnection
process across the Mediterranean seabed, according to the report.

Iran pushes to retain Asia oil buyers as possible U.S. sanctions loom
Reuters
Iran is pushing to retain customers for its oil in Asia, hoping that price reductions will boost the
appeal of its crude compared with other Middle Eastern supply even as the potential threat of
further U.S. sanctions on the country looms.
The National Iranian Oil Company has in the last few weeks offered spot cargoes, ranging from
light to heavy grades, to its term buyers in Asia, after setting December prices at the lowest in
years against comparable Saudi grades, three sources with knowledge of the matter said.
The sources declined to be identified as they were not authorized to speak with media, while
NIOC was not immediately available for comment.
That comes as U.S. Congress has until mid-December to decide whether to reimpose sanctions
on Iran that were lifted in exchange for it limiting its nuclear activity, with President Donald Trump
disavowing Tehran’s compliance with the terms of that deal.
“The threat of U.S. Congress sanctions has put pressure on Iran to ‘firm up’ markets via discounts
and freight adjustments for its crude,” said Tilak Doshi, consultant at Muse & Stancil in Singapore.
NIOC first cut the official selling price (OSP) of Iran Heavy crude against Saudi’s Arab Medium
grade for October, before lowering it again for December. That puts the Iran Heavy price for
December at the widest discount against Arab Medium in over a decade, data on Thomson
Reuters Eikon showed.
Meanwhile, price cuts for Iranian Light placed the oil at its lowest premium in two years against
Saudi Arabia’s Arab Light.
The discounts were made to retain existing buyers of Iranian oil, which already have government-
backed arrangements in place from when the original western sanctions hit Iran’s oil exports in
2012-2014, the sources said.

Japanese and Indian buyers responded to the price cuts for October by increasing imports and
are expected to keep volumes elevated due to competitive prices, trade sources said.
Iran’s offers for December come
weeks before the Organization of
the Petroleum Exporting Countries
and non-OPEC producers meet on
Nov. 30 to decide whether to extend
a deal to cut production and support
prices.
They also follow rising Basra crude
exports from Iraq and an increase in
Qatari supplies in January that have
been putting Iranian grades under
pressure, said Ehsan Ul-Haq,
director of crude oil and refined
products at consultancy Resource
Economist.
Still, traders and analysts do not expect a repeat of the battle for market share that was waged
prior to OPEC’s 2016 supply cut deal, with Tehran set to maintain steady output of about 3.8
million barrels per day and exports of 2.4 million-2.6 million bpd.
“They have maxed out their (export) volume unless they can increase production further,” said a
trader who handles Iranian oil.

NewBase November 23 - 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices dip after US crude hits near 2-yr high on pipeline shutdown
Reuters + NewBase+Bloomberg
Oil prices eased on Thursday, with U.S. crude dipping away from two-year highs reached the day
before, but the shutdown of the Keystone pipeline and a drawdown in fuel inventories continued to
bolster markets despite worries over rising output.
U.S. West Texas Intermediate (WTI) crude futures were at $57.89 a barrel at 0437 GMT, down 13
cents, or 0.2 percent, from their last settlement, but still close to 2015-highs of $58.15 a barrel
reached on Wednesday.
Brent crude futures, the international benchmark for oil prices, were at $63.17 per barrel, 15 cents,
or 0.2 percent, below their last close.
WTI has been buoyed by the shutdown of the 590,000 barrel-per-day (bpd) Keystone pipeline,
one of the largest crude pipelines from Canada to the United States, as well as by another
drawdown in commercial fuel inventories that came despite record U.S. oil production.
Oil price special
coverage

U.S. crude inventories fell 1.9 million barrels in the week to Nov. 17, to 457.14 million barrels.
Stocks have dropped by 15 percent from their records in March, to below 2016 levels. "Another
large drawdown in inventories buoyed investor sentiment," ANZ bank said.
The inventory drop came as the Keystone pipeline connecting Canada's Alberta oilfields to the
United States was shut last week after an oil spill in South Dakota. Operator TransCanada Corp is
cutting deliveries through at least the end of the month.
The tightening U.S. oil market means the WTI forward price curve has moved from contango,
when prices for future delivery are more expensive than those for immediate dispatch, into
backwardation, where spot prices are higher than those for later delivery.
Backwardation indicates a tightening market as it incentivizes traders to sell oil immediately
instead of putting it into storage.
Markets are also tightening globally due to an effort led by the Organization of the Petroleum
Exporting Countries (OPEC) and a group of non-OPEC producers, including Russia, to withhold
output.
The deal to curb production is due to expire in March 2018, but OPEC will meet on Nov. 30 to
discuss the outlook for the policy, and it is expected to extend the cuts. Top exporter and de facto
OPEC leader Saudi Arabia is lobbying for extended output restrictions.
Threatening to undermine OPEC's efforts, however, is U.S. production, which has risen by 15
percent since mid-2016 to a record 9.66 million bpd. This has turned the United States from the
world's biggest importer of crude oil into a significant exporter, with production now second only to
Russia and Saudi Arabia.
Oil Sets Itself Up for Fall If OPEC Can't Deliver Cuts Extension
Oil traders and analysts almost unanimously expect OPEC and Russia to prolong their production
cuts next week. However, behind the scenes Saudi Arabia and Russia are still debating what
course to follow.
These high expectations, coupled with a recent surge in bullish bets on crude, amplify the risk to
prices if the group can’t convince a hesitant Russia that it’s necessary to agree an extension right
away.

“Anything but an extension supported by Russia would have a significant impact on the price,”
said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “Not least due to the near
record-long oil bet, which has left little room for error in terms of the communication from the
OPEC ministers.”
Oil climbed to a two-year high in New York on Wednesday in anticipation that the reduction in oil
shipments from the Organization of Petroleum Exporting Countries and its allies would further
diminish the glut that’s weighed on prices for three years. The cuts are a success, but the job isn’t
done. To prevent the stockpile surplus expanding again, International Energy Agency forecasts
indicate OPEC needs to maintain the cuts beyond their March expiry.
That’s what almost everyone expects to happen. All of the 36 analysts and traders surveyed by
Bloomberg expected an extension, with another nine months of cuts the most popular prediction.
It’s also what OPEC’s largest and most powerful member wants. Last week, Saudi Arabia’s
Energy Minister Khalid Al-Falih told Bloomberg television the group should announce an
extension of the curbs in Vienna because surplus inventories won’t be eliminated by March.
Saudis push for nine-month extension of Opec-led oil cut
Top crude exporter Saudi Arabia is lobbying oil ministers to agree next week on a nine-month
extension to Opec-led supply cuts, sources familiar with the matter said, as Riyadh seeks to ensure a
price-sapping glut is eradicated.
The Organisation of the Petroleum Exporting Countries, non-member Russia and nine other producers
are cutting oil output by about 1.8 million barrels per day until March 2018, and will discuss extending
the deal at a November 30 meeting in Vienna.
Oil prices have risen to almost $65 a barrel, the highest since 2015, supported by lower inventories.
However, Opec is wary prices could fall again since excess supply persists, while a flare-up in Middle
Eastern political tensions has also played a part in the rally.
“The Saudis are lobbying to have a decision in November for nine months,” said a senior oil industry
source with knowledge of the matter who declined to be identified.
Indications of support for a nine-month extension have come from the very top in Saudi Arabia, Opec’s
de facto leader, and Russia, the largest non-Opec producer involved in the agreement.
Saudi Crown Prince Mohammad bin Salman signalled he was supportive of extending the agreement
further into 2018, following remarks by Russian President Vladimir Putin on Oct. 4 that the deal could
be stretched to the end of next year.
“The Saudi and Russian leaders have indicated it’s on the cards,” an Opec source said, referring to
the chances of a nine-month extension. “Why would I disagree with them?”
Other options
To be sure, the Opec-led group is also weighing other options.

Reuters reported last month, citing Opec sources, that the producers were leaning towards extending
for nine months but could postpone a decision until early next year, given the recent rise in prices.
Despite Putin’s comments on a nine-month extension, Russia has been reluctant to give a position
publicly. Oil producers and the energy ministry have discussed a six-month prolongation, TASS news
agency reported.
Energy Minister Alexander Novak said on Monday that Russia would determine its position later in
November. While there is a chance that a shorter time frame of six or even three months could be
agreed, and that producers may defer a decision, Opec sources consider this less likely.
“There is a 90 per cent chance it will be announced in November,” a second Opec source said. “Yes,
for nine months.” Two other Opec sources also said nine months was the most likely period. The
supply pact is aimed at reducing oil stocks in industrialised countries to their five-year average, and
the latest figures suggest Opec is more than halfway there.
A fifth Opec source said a nine-month extension was likely, since part of the recent price rally was
driven by factors such as the anti-corruption crackdown in Saudi Arabia and Lebanese tensions, rather
than a further tightening of supply.
“If the price hike stemming from recent geopolitical developments in the Middle East eases, the
likelihood of an extension of the existing agreement for a longer period will increase,” the source said.
Russian Reservations
Yet the dominant non-OPEC participant in the deal has reservations. Russia believes it’s too early
to announce anything this month, two people with knowledge of matter said last week. Another
issue was the duration of the extension, with options including an additional three months of cuts
being considered, they said.
Kuwait, the fifth largest OPEC producer and a member of the committee that oversees the accord,
also believes the decision to extend should be taken closer to expiry, said people familiar with the
matter. Ministers from both nations set out that position publicly at their last meeting in Vienna in
September.
Saudi Arabia has had “extensive” consultations with Russia and feels “fully convinced” that
country will be “fully on board,” Al-Falih said last week. Most seasoned OPEC observers tend to
agree that the group’s most powerful member will prevail.
“Despite the signs that the Russians may be having second thoughts, I think in the end they are
going to agree on an extension,” but it’s not a slam dunk, said Mike Wittner, head of oil market
research at Societe Generale SA in New York. The Saudis may not get the extra nine months of

cuts they’re pushing for and “if they don’t do anything it will be a severe disappointment to the
market.”
Oil Jumps are signs of U.S. Supply Drop Adds to OPEC Optimism
Oil settled at a two-year high as a drop in U.S. crude stockpiles added optimism to a rally
underpinned by hopes for an OPEC deal extension.
Futures in New York surged 2.1 percent to close above $58 a barrel for the first time since mid-
2015. Crude inventories fell by 1.86 million barrels last week, the Energy Information
Administration said Wednesday. Prices briefly dipped after the report as the draw came in smaller
than the 6.36 million decline posted by the American Petroleum Institute. Meanwhile, an outage
on TransCanada Corp.’s Keystone pipeline has led inventories to contract in the Cushing,
Oklahoma distribution hub.
“There is a fundamental under-supply right now in the global oil market, which is by definition
bullish,” Pavel Molchanov, an energy research analyst at Raymond James in Houston, said by
telephone. There’s a “growing recognition in the market-place that global inventories are coming
down and by a substantial amount.”
The U.S. benchmark has jumped more than 6 percent this month amid signals that the
Organization of Petroleum Exporting Countries and its allies may agree to prolong supply
curbs beyond March when producers meet in Vienna next week.
OPEC will extend its deal through the end of 2018 when the group meets on Nov. 30, according to
a Bloomberg survey of analysts and traders. The cartel is said to have invited another 20 non-
members to its meeting in an effort to rebalance world oil markets, according to a person familiar
with the matter.
“There is an expectation that they will extend,” Molchanov, said. “If they confirm that the cuts will
be extended for a considerable length of time, let’s say nine more months, and everybody will
continue to be covered who has been covered before, that may spur some additional uplift in oil.”

West Texas Intermediate for January delivery advanced $1.19 to settle at $58.02 a barrel on the
New York Mercantile Exchange, the highest level since June 30. Total volume traded was about
52 percent above the 100-day average.
Keystone Outage
The front-month contract for WTI traded at a premium to all the other longer-dated futures during
the session, before closing at parity with the second-month one. This market structure, known as
backwardation, typically indicates strong demand and tight supplies. The last time the WTI futures
curve consistently displayed this pattern was in 2014.
TransCanada plans to deliver about 15 percent of crude it hasn’t yet injected on its Keystone
pipeline in November to at least one customer, according to a person familiar with the matter. The
line shut last week after a leak in South Dakota. The closure has led to a tightening of crude in the
U.S.
“You’re going to have a bit of a distortion with Keystone being down,” Craig Bethune, a senior
portfolio manager at Manulife Asset Management, says. Yet the backwardation “indicates the
market’s in relatively good health, where near-term demand is fairly strong”
Brent for January settlement climbed 75 cents to end the session at $63.32 a barrel on the
London-based ICE Futures Europe exchange. The global benchmark traded at a premium of
$5.30 to WTI, the smallest since early October.
Nationwide crude stockpiles declined for the first time in three weeks to about 457.1 million
barrels, according to the EIA. Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI
and the biggest oil-storage hub, slid by 1.83 million barrels, the biggest draw since July. Yet, U.S.
output surged for a fifth week to 9.66 million barrels a day.

NewBase Special Coverage
News Agencies News Release November 23-2017
U.S. average gasoline prices this Thanksgiving are higher than
the previous two years…
Source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update
Heading into the Thanksgiving holiday weekend, U.S. retail regular-grade gasoline averaged
$2.57 per gallon (gal), up 41 cents/gal from the same time last year. Although gasoline prices are
higher than in both 2015 and 2016, the Thanksgiving 2017 gasoline price is still the third-lowest
since 2008.
The Thanksgiving holiday weekend is one of the heaviest travel times of the year. AAA
forecasts 50.9 million people will be traveling 50 miles or more for the holiday this year, 1.6 million
more travelers than last year and the most since 2005. Of the 50.9 million total travelers, AAA
expects that 45.5 million of them will drive, an increase of nearly 1.5 million over last year.
Gasoline prices across the country reflect differences in taxes, fuel specifications, and regional
market supply and demand balances. Based on data for the selected major metropolitan areas
surveyed in EIA's Gasoline and Diesel Fuel Update, retail gasoline prices as of November 20
range from a low of $2.18/gal in Houston, Texas, to a high of $3.26/gal in San Francisco,
California.

In 2017, retail gasoline prices as a whole remained relatively stable until significant refinery
operations were interrupted because of Hurricane Harvey in late August. In the wake of that
hurricane’s landfall, the U.S. average regular retail gasoline price increased 28 cents per gallon,
from $2.40/gal on August 28 to $2.68/gal on September 4, based on weekly data collected in
EIA’s Gasoline and Diesel Fuel Update.
Gasoline prices continue to be closely linked to crude oil prices. The spot price for Brent, a key
global crude oil benchmark, was $62.94 per barrel as of November 13, more than $21 per barrel
higher than the price from the same time last year.
EIA’s November Short-Term Energy Outlook forecasts that both crude oil and gasoline prices will
decrease in the coming months, with U.S. average gasoline prices reaching a low of $2.31/gal in
January 2018. Retail gasoline prices are forecast to average $2.45/gal in 2018, compared to
$2.40/gal in 2017.

U.S: Natural gas inventories end October just below the
previous five-year average
Working natural gas in storage in the Lower 48 states as of October 31, 2017, totaled 3,784 billion
cubic feet (Bcf), as interpolated from EIA’s Weekly Natural Gas Storage Report data. Natural gas
storage levels typically increase from April through October, although net injections sometimes
occur in November.
Inventories at the end of October 2017 were 2% lower than the previous five-year end-of-October
average and 5% lower than the record-setting end-of-October level of 3,977 Bcf last year.
Injection levels during refill season level can vary considerably, depending in part on inventory
levels at the start of the refill season. This year, relatively high inventory levels at the beginning of
the injection season (April) would naturally have resulted in a slower-than-average pace of
injections.
Nevertheless, injections were insufficient to return inventories to their recent historical average.
From May 2015 through mid-September 2017, working gas levels were higher than the five-year
average for 118 out of 122 weeks. However, since late September 2017, working natural gas
levels have been lower than the previous five-year average for seven consecutive weeks, based
on data through November 10.
Natural gas storage is used to balance out seasonal fluctuations in demand. Natural gas demand
is highest in the winter months, when residential and commercial demand for natural gas for

space heating increases. Natural gas consumption in the power sector is highest in summer
months, when overall electricity demand is relatively high for cooling.
Source: U.S. Energy Information Administration, Natural Gas Monthly
Based on data through August, year-over-year declines in electric power sector consumption have
been partially offset by changes in natural gas trade, as exports have increased and imports have
remained relatively flat. EIA’s latest Short-Term Energy Outlook expects the United States to be a
net exporter of natural gas on an annual basis in 2017.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
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For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
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MS & BS Mechanical Engineering (HON), USA
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Mobile: +97150-4822502
khdmohd@hawkenergy.net
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Khaled Al Awadi is a UAE National with a total of 27 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase November 2017 K. Al Awadi

New base 23 november 2017 energy news issue 1104 by khaled al awadi

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