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New base energy news 07 april 2019 issue no 1237 by khaled al awadi
- 1. Copyright © 2018 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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NewBase Energy News 07 April 2019 - Issue No. 1237 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 a unique model of emerging industrial power, says Suhail Al Mazrouei
WAM/Rola Alghoul/Hassan Bashir
The UAE is a unique model of the emerging industrial power that is inspired by the values of
innovation and global prosperity and seeks to devote it to both local and global levels, Suhail bin
Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry, noted.
This came during the UAE's participation in HANNOVER MESSE 2019 exhibition in Germany - one
of the largest industrial exhibitions in the world - headed by Minister Al Mazrouie.
He pointed out that the UAE regards global partnerships as the best way to build a global industrial
economy that guarantees the achievement of comprehensive and sustainable industrial
development.
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The UAE Minister attended the opening ceremony in which German Chancellor Angela Merkel
delivered the official speech along with other words delivered by Swedish Prime Minister Stefan
Lofven, as well as a number of leaders of German and international industrial sector.
Roughly 6,500 exhibitors from around the world presented solutions for the future of manufacturing
and energy supply, including more than 500 examples of the deployment of artificial intelligence in
industrial manufacturing, 5G applications, and solutions for the energy and mobility transitions.
Robotics was also a major draw for visitors. Leading robot manufacturers and robotics startups
demonstrated real-world applications for all industry sectors. With 160 exhibiting companies,
Partner Country Sweden stood out as a high-tech nation.
On the sidelines of the exhibition, Minister Al Mazrouei participated in a panel discussion organised
by the Global Manufacturing & Industrialisation Summit attended by LI Yong, Director-General of
the United Nations Industrial Development Organisation, UNIDO, in the presence of more than 200
global industry leaders.
He also affirmed the UAE's move towards establishing its position as the capital of the global
movement for the applications of the Fourth Industrial Revolution, benefiting from the vision of its
leadership and its national companies, which have been able to take a prominent place in the global
value chains of the most advanced industries worldwide.
He pointed out that the UAE seeks to add a unique value to the global industrial sector by dedicating
the international industry's commitment to achieving the United Nations Sustainable Development
Goals and ensuring that all countries in the world have the opportunity to build a comprehensive
and sustainable industrial sector based on a global partnership.
Minister Al Mazrouei also met with Peter Altmaier, Federal Minister for Economic Affairs and Energy
of Germany, where they discussed ways to enhance cooperation between the UAE and Germany
in the industry fields and strengthening the role of SMEs in the industrial sector.
He also met with Dr. Koh Poh Koon, Senior Minister of State at the Ministry of Trade & Industry of
Singapore, and discussed prospects for bilateral cooperation in innovation, research, and
development.
On the second day of the exhibition, the UAE Minister toured the event, where he visited several
pavilions of national and international companies in the industry, automation, digital transformation,
as well as small and medium innovation companies.
He also met with several global industry leaders.
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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
Saudi McDermott signs JV agreement with Zamil Offshore to
address MMO market in Saudi Arabia
Source: McDermott International
McDermott International has signed a Joint Venture Agreement with Zamil Offshore to target the
Maintenance, Modifications and Operations (MMO) market in Saudi Arabia.
McDermott and Zamil will work together on an exclusive basis to provide Saudi Aramco with
comprehensive offshore brownfield EPCI solutions and asset maintenance services. The new joint
venture will be uniquely positioned to offer integrated, cost effective MMO services, to address the
rising market demand in Saudi Arabia.
Zamil is renowned as the
largest offshore and marine
services provider in the
Middle East. The partnership
with Zamil will provide
McDermott access to a new
revenue stream in the
maintenance, turnaround,
inspection, and asset
integrity services market in
Saudi Arabia.
'Our partnership with Zamil
reflects McDermott's
commitment to supporting
Saudi Aramco across the oil
and gas production life
cycle,' said Linh Austin,
McDermott's Senior Vice President, Middle East and North Africa. 'Building on the strengths and
distinguished track-record of both companies and fueled by McDermott's technology and digital-
ready solutions," added Austin, "we will enable our customers to maximize the performance of
offshore assets by increasing reliability and production uptime.'
The joint venture bolsters McDermott's long-term growth plans in Saudi Arabia and is expected to
significantly contribute to the in-Kingdom Total Value Add (IKTVA) program and local content
commitments, ultimately supporting Saudi Vision 2030.
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Oman: Tethys Oil gearing up for Block 49 exploration
Oman Observer Conrad Prabhu
Tethys Oil, one of the largest concession-holders in the Sultanate’s upstream sector by acreage,
says it is preparing to intensify exploration activities targeting its wholly-owned and operated
onshore Block 49 in the southwest of Oman.
Block 49 — also known as the Montasar block — covers a 15,439 sq kilometre area in the far west
of Dhofar Governorate. Under-explored, yet promising, the licence is home to Dauka-1 — the first
well drilled in Oman in 1955.
“Prospect maturation on
Block 49 will get seriously
under way (in 2019),” said
Magnus Nordin
(pictured), Managing
Director — Tethys Oil. “We
have reprocessed some
1,500 km of vintage 2D
seismic data, and a number
of seismic anomalies were
identified. This could be
possible — primarily
stratigraphic — oil traps.
After integration of all
available data in Tethys
Oil’s geological model, the presence of source rock as well as potential reservoir rocks have also
been confirmed. Processing of the seismic data acquired late in 2018 is ongoing and the data will
be ready for interpretation and mapping during 2019,” Nordin stated in the company’s newly
published Annual Report for 2018.
The Swedish-based international oil and gas company acquired Block 49 in an Exploration &
Production Sharing Agreement (EPSA) signed with the Omani government in late 2017. It was
Tethys Oil’s first 100 per cent owned and operated licence in the Sultanate, having long had a
presence in Oman through its 30 per cent interests in Block 3&4 in the north of the country.
According to the company, more than 11,000 km of 2D seismic data acquired by previous operators
has been made available to Tethys Oil. Nine wells have been drilled by previous operators within
the block boundaries, several of which are reported to have encountered oil shows.
Speaking to the Observer during his recent visit to the Sultanate, Nordin said the company’s local
subsidiary, Tethys Oil Montasar Ltd, has its sights on drilling its first exploration well in Block 49
later this year.
Under the EPSA signed with the Ministry of Oil & Gas, Tethys Oil has committed to geological
studies, seismic acquisition and processing, and exploratory drilling during the initial three-year
exploration phase of the pact (extendable by a further three years).
Upon the discovery of a proven commercial find, the company is entitled to a further 15-year
extension while the government can exercise a back-in right to acquire 30 per cent of the equity
against refunding of pro rata past expenditure.
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Bahrain Seeks US Partners for Offshore Shale Discovery
by Matthew V. Veazey|Rigzone Staff|
The kingdom, whose capital Manama appears above, is pursuing another oil and gas industry first.
Home to the oil and gas talent base that has successfully developed world-class unconventional
resource plays such as the Permian Basin and the Eagle Ford Shale, Texas boasts a formidable
storehouse of world-class expertise within its extensive borders.
The smallest country in the Middle East wants to import some of that Texas-sized know-how to
develop a massive oil and gas discovery.
Shaikh Mohamed bin Khalifa Al-Khalifa, Bahrain’s oil minister who leads the island kingdom’s
National Oil and Gas Authority (NOGA), is visiting the Lone Star State this week to entice U.S.
operating and service companies to consider doing business in the Arabian Gulf country.
In 2018, NOGA announced the kingdom’s largest-ever oil and gas discovery in the shallow waters
of the Khalij Al-Bahrain Basin. The ministry, working alongside DeGolyer and MacNaughton,
Halliburton and Schlumberger to assess the find, has reported that the discovery could hold at least
80 billion barrels of tight oil in place – on a P50 basis – and deep gas reserves ranging from 10 to
20 trillion cubic feet.
According to a Columbia University Center on Global Energy Policy commentary written by the CEO
of consulting firm Qamar Energy, Bahrain would claim a milestone for the oil and gas industry by
developing the resource: the first instance of commercial offshore shale oil production. The feat,
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however, would not mark Bahrain’s first claim to fame in the industry. Standard Oil of California in
1932 made the first Arabian Gulf oil discovery in Bahrain, Al-Khalifa noted.
“This discovery is obviously an opportunity to increase production of oil but also rich gas – like in
Texas with the Eagle Ford and Permian and ethane and other natural gas liquids,” Al-Khalifa told
Rigzone. “We’re close to some of the region’s largest ethane processing facilities.”
For instance, Al-Khalifa pointed out that Bahrain is close to some of the Middle East’s largest
petrochemicals sites – such as Dow Chemical Co. and Saudi Aramco’s Sadara complex in Jubail
Industrial City, Saudi Arabia.
Calling unconventional oil and
gas production “very much a
U.S.-based phenomenon,” Al-
Khalifa pointed out that he and
other Bahraini officials held
earlier meetings with U.S.
players last summer. This time
around, they are collaborating
in talks with operating and
service companies as well as
entities such as the American
Chamber of Commerce
(AmCham) and the U.S.
Chamber of Commerce.
“We’re trying to learn from the
phenomenon that happened
here and see if we can attract some of the companies to locate in Bahrain,” said Al-Khalifa, adding
that the kingdom has set up a virtual data room and has “invested money” to better explain the
quality of the resource to interested parties. “We’re collecting information and trying to set up the
right structure for companies to invest. We want them to make money and apply their technologies.”
Al-Khalifa added that Bahrain’s free trade agreement with the United States, coupled with its close
proximity to Saudi Arabia and other Gulf Cooperation Council countries, make the kingdom a good
launching pad for business opportunities in the region. Moreover, he noted that Bahrain boasts a
“very liberal and relaxed environment for foreign companies.”
“It’s an easy place to set up shop” for companies of various sizes, said Al-Khalifa, adding that the
kingdom is also looking at the possibility of direct flights to Houston to facilitate trade ties.
The oil minister declined to reveal specifics tied to ongoing analysis of the discovery, but he said
that early signs appear positive. A pair of rigs, one operated by Helmerich and Payne and another
by Trinidad Drilling, are currently mobilized under a two-year drilling program to evaluate the
resource.
“I think it’s a bit too early to throw out (anticipated) production numbers, but I can tell you the quality
of the rock is very superior,” Al-Khalifa said. “We’re drilling a few wells to make the data available.
It is the source rock (the Ghawar Uplift) that gave you the largest oil field in the world.” According to
a 2018 NOGA written statement, Bahrain officials aim to have the discovery on production within
five years.
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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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S. Sudan China Gets 30,000 B/D Oil Output to Build Highways
Bloomberg - Okech Francis
South Sudan tripled the amount of oil it’s providing to the Export-Import Bank of China to fund the
nation’s biggest infrastructure-development project.
The East African country will provide 30,000 barrels per day of crude to the state-owned lender, up
from 10,000 barrels it agreed in February, Information Minister Michael Makuei Lueth told reporters
Friday in the capital, Juba. The country currently produces about 170,000 barrels per day, according
to the Petroleum Ministry.
South Sudan, which became independent in 2011, is rebuilding an economy shattered by five years
of civil war in which almost 400,000 people died. It’s also reviving oil production that declined by
two-thirds to about 120,000 barrels per day because of the conflict.
“We have adopted the policy of oil for development,” Lueth said. ‘The cabinet approved an additional
20,000 drums to make it 30,000 drums per day to be deposited in an account in China for
infrastructure, especially for the roads and other development.”
The crude will fund projects including a 392-kilometer (244-mile) road from Juba to Rumbek in the
central region, with work set to begin in mid-April. Other routes are planned from the south to the
Bahr el-Ghazal region and from Juba to Nadapal on the Kenyan border.
China’s Shandong Hi-speed Co. is carrying out the construction, which will take 36 months to
complete, Lueth said.
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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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Egypt's gas exports can give it a foreign policy edge, petroleum minister says
CNBC.com Natasha Turak | @NatashaTurak
Cairo is expected to become a net gas exporter by the end of 2019.
Energy consultancy Wood Mackenzie estimates that Egypt's existing fields have gas reserves of 61 trillion cubic
feet, with a further 45 trillion cubic feet yet to be discovered.
Egypt's goal to be a net gas exporter by the end of this year will strengthen it politically, Egypt's
petroleum minister said Saturday, stressing the opportunities for growth that would come from the
recently-launched Eastern Mediterranean Gas Forum.
"We cannot deny that if we are able to have our own energy this will give us some — not
independence but let us say some strength, edge," Tarek el Molla told CNBC's Hadley Gamble at
the World Economic Forum on the Middle East and North Africa in Amman, Jordan.
The minister was speaking in response to a question about many Middle Eastern countries' reliance
on their wealthier Gulf patrons like Saudi Arabia — and the fact that economic support from the Gulf
also often means forfeiting independence in the foreign policy arena.
"The destiny of each country is at its own decision, however, you get to capitalize on what you have
— so if you have the resource, the gas, you can play smart. And of course it would be a tool, or a
card, that you can play with in politics, definitely," el Molla said.
"When I talk about the Eastern Mediterranean Gas Forum, and we talk about the hub, I say that we
will together be the hub," the minister stressed. "Egypt will not ever be able to be the hub, no, it will
be the hub together with its neighboring countries, allies, partners … we are complementing each
other in this field."
The forum, which aims to establish a regional gas market and offer more competitive prices, consists
of Egypt, Jordan, Israel, Italy, Greece, Cyprus, and the Palestinian Authority, with its headquarters
in Cairo. El Molla has described high investor interest in the opportunities the forum will offer.
Hit by revolution and terrorist attacks from 2011 onward, Egypt ceased exporting its gas for several
years, but has now made a comeback, becoming a key player in what many energy experts have
called the "Eastern Mediterranean gas gold rush."
Cairo is expected to become a net gas exporter
by the end of 2019 and the country has seen
widespread interest in its natural gas potential
— particularly after the success of Egypt's Zohr
gas field, an offshore natural gas field in the
Mediterranean Sea operated by Italian energy
firm Eni.
Energy consultancy Wood Mackenzie has
called it "Egypt's astonishing gas renaissance,"
and estimates that existing fields have gas
reserves of 61 trillion cubic feet, with a further
45 trillion cubic feet yet to be discovered.
Foreign direct investment (FDI) in Egypt's oil and gas sector reached $10 billion in the full fiscal year
of 2017/18, el Molla told an Egyptian newspaper last August, and expects at least the same in
2018/2019. In December, el Molla said Egypt had signed over 12 exploration and production
agreements with international oil companies (IOCs) during 2018. The petroleum minister told CNBC
in January that Egypt's gas reserves could even be a catalyst for peace in the region.
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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
Kazakhstan: LUKOIL signs contract for Zhenis block in the
Kazakh Sector of the Caspian Sea
LUKOIL, the Ministry of Energy of the Republic of Kazakhstan and KazMunayGas have concluded
a contract for the exploration and development of hydrocarbons on the Zhenis block in the Kazakh
Sector of the Caspian Sea. Zhenis Operating (a fifty-fifty joint venture between LUKOIL and
KazMunayGas) will be operator of the project.
In accordance with the concluded contract main
minimal obligations include drilling of one
exploration well and a 3D seismic survey.
The new project in the Caspian Sea is an
important step in expanding the resource base in
the region which has a strategic importance for
the Company and where it has accumulated
considerable expertise.
Zhenis block is located in the southern part of the
Kazakh Sector of the Caspian Sea. The distance
to the shore is 80 kms, the nerest sea port is
Aktau. In 2018 LUKOIL and KazMunayGas
concluded a Joint Operating Agreement and a
Financing Agreement on the Zhenis project and
in February 2019 the Ministry of Energy of the
Republic of Kazakhstan issued mineral rights on the block.
LUKOIL has been operating successfully in Kazakhstan since 1995. The Company participates in
the development of the Tengiz, Karachaganak and Kumkol fields, in a joint venture developing the
Tsentralnoye field in the Caspian Sea as well as in the Caspian Pipeline Consortium.
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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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U.S. refinery runs hit fifth consecutive
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
Gross inputs to U.S. petroleum refineries, also referred to as refinery runs, averaged 17.3 million
barrels per day (b/d) in 2018, the highest annual average on record and the fifth consecutive year
of record-high refinery runs. Refinery runs peaked in June at an average of 18.0 million b/d, with
average weekly runs exceeding 18.0 million b/d during six weeks in 2018.
High refinery diesel margins—the difference between the acquisition price of crude oil and the
wholesale price of diesel fuel—have provided an incentive for refiners to maintain high runs despite
low gasoline refinery margins. The record-high U.S. gross refinery input levels are driven in large
part by refinery operations in the Gulf Coast and Midwest regions (Petroleum Administration for
Defense Districts, or PADDs, 3 and 2, respectively).
In the Gulf Coast, which is home to more than half of all U.S. refinery capacity, refinery runs
averaged more than 9.2 million b/d in 2018, 8% higher than the previous five-year average for that
region and the first time the annual average surpassed 9.0 million b/d. The Midwest has the second-
highest refinery capacity, and refinery runs averaged 3.8 million b/d in 2018, or 6% higher than the
previous five-year average.
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Refinery utilization as a percentage of operable capacity averaged 93.2% in 2018, an increase of
about 2.1% from 2017. Despite record-high inputs, utilization rates have not surpassed the record
of 95.6% set in 1998. Rather than running at higher utilization rates, refineries have increased their
capacity: U.S. refinery capacity increased by 783,000 barrels per calendar day between December
2013 and December 2018.
In the March update of its Short-Term Energy Outlook, EIA expects U.S. refinery runs in 2019 to be
relatively flat compared with the record-high 2018 levels, partially as a result of expected high levels
of refinery maintenance in 2019. Refinery runs are then expected to increase and reach a new
record of 17.8 million b/d in 2020.
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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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NewBase 07 April 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices hit 5-month highs, Brent settles above $70 on strong
US jobs report and Libya conflict… Reuters + NewBase + Bloomberg
Crude futures are set for weekly gains on OPEC supply cuts and U.S. sanctions.
An eastern Libyan commander ordered his troops to march on the capital of Tripoli, escalating a conflict with the
internationally recognized government.
Bureau of Labor Statistics reports the U.S. added 196,000 jobs in March, marking a return to solid employment growth after
a weak report in February.
Oil prices rose more than 1 percent on Friday on bullish U.S. employment data that tempered fears
about a decline in global crude demand and on expectations that an escalating conflict in Libya
could tighten oil supplies.
U.S. West Texas Intermediate crude settled 98 cents higher at $63.11 a barrel on Friday, rising
1.6% to a new five-month closing high. WTI posted its fifth consecutive weekly gain, rising 4.9%
over the last five days. Brent crude futures rose 94 cents, or 1.4%, to $70.34 a barrel, marking the
first time the international benchmark has settled above $70 in five months. Brent finished the week
2.9% higher.
Both contracts hit new five-month highs after Friday's settle.
Oil price special
coverage
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"Oil prices are rallying in reaction to the U.S. employment report," said John Kilduff, a partner at
Again Capital LLC in New York. "Signs of global economic slowdown had been a headwind for oil
prices, but this morning's report seemed to dispel at least some of those concerns."
Crude futures rose with the U.S. stock market after the Bureau of Labor Statistics said the U.S.
added 196,000 jobs in March, marking a return to solid employment growth after a weak report in
February.
Military action in Libya, which could disrupt supply from the OPEC member, also supported
prices.Any potential oil outages in Libya would "noticeably increase the pressure on Saudi Arabia
to open up the oil tap again, as it did in the autumn," Commerzbank said in a note.
Crude futures also received a boost from news of a potential slowdown in crude production out of
Venezuela, as U.S. sanctions and energy blackouts hit the OPEC nation's oil industry. Venezuelan
state-owned oil company PDVSA expects its crucial crude upgraders to operate well below capacity
this month, according to industry sources and documents seen by Reuters.
Venezuela depends on the upgraders, which are mostly operated by joint ventures with foreign
companies, to convert the extra-heavy crude oil produced in the Orinoco Belt into exportable grades
usable in overseas refineries.
U.S. energy firms this week increased the number of oil rigs operating for the first time in seven
weeks. Companies added 15 oil rigs in the week to April 5, the biggest increase since May, bringing
the total count to 831, General Electric's Baker Hughes energy services firm said in its closely
followed report on Friday.
Lingering concerns over U.S.-China trade relations limited oil price gains. The United States and
China, the world's two biggest oil consumers, could be close to ending their trade dispute, though
some hurdles remain.
U.S. President Donald Trump on Thursday said the two sides were "very close to making a deal,"
but the United States remains hesitant to lift its tariffs on $250 billion worth of goods. Prices for
thermal coal and natural gas, the main power generation fuels, have already fallen sharply amid a marked
slowdown in consumption.
Crude Oil Market Rallies on Fading Fears of a Glut
Money managers haven’t been this optimistic about U.S. oil prices since early October, just before
the crude market began a steep decline on fears of a global oversupply. Crude made a steady
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comeback this year and sentiment has climbed alongside it, with the net-long position rising for
the sixth straight week in data posted on Friday.
West Texas Intermediate crude prices rallied almost 5 percent this week as OPEC stuck to output
cuts and blackouts continued to sap Venezuelan production. While the economic outlook remains
uncertain, there have been enough positive signs -- including encouraging U.S. jobs data -- to allay
the worst fears about demand, said Nick Holmes, an analyst at Leawood, Kansas-based Tortoise.
“China has put on stimulus, the Fed is pretty much all-in dovish on interest rates and it seems like
we could be near an end to the trade war,”’ said Holmes, whose firm manages $16 billion in energy
investments. “A lot of the risks that people saw have abated here in 2019 and that’s driving the
market higher.”
The net-long WTI position -- the difference between bets on higher prices and wagers on a decline
-- climbed 2.8 percent to 244,807 futures and options contracts for the week ended April 2, according
to the U.S. Commodity Futures Trading Commission. Long positions edged up by almost 1 percent,
while shorts plunged by 10 percent.
“There’s room for sentiment to expand without being completely stretched out -- but you’re at the
higher end of the range,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth
Management in Seattle, which oversees $164 billion. “I think there’s a question about how far this
sentiment can go.”
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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
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NewBase Special Coverage
News Agencies News Release 07 April 2019
After being rocked by Trump tariffs, the solar energy business is
bouncing back … CNBC.comKate Rogers | @KateRogers
The solar energy industry has seen its share of ups and downs over the last decade, in part due to tariffs
imposed by the Trump administration.
After two years of job losses in the industry, however, advocates are projecting demand to pick up, thanks to
state initiatives to promote the use of solar power.
As business heats up, solar companies are facing a familiar problem — finding qualified workers.
The home improvement company offers both roofing and solar installations, and is seeing an
increase in demand for solar panels thanks in large part to a mandate in California where it's based.
The state requires newly built homes to include solar power as a feature. The rule was passed last
year and takes effect in 2020. As result, PetersenDean is projecting some 11,000 to 12,000 solar
installations in 2019, meaning it needs workers, fast.
"We are constantly hiring installers," Gary Liardon, PetersenDean's consumer group president and
chief operating officer said, as California has long been a leader in solar jobs. "But that mandate is
going to increase our need for installers by roughly 300% just based on current install rates today,"
he said. "So translated into literal terms, we will need another 350 to 400 installers by year-end."
After two years of job losses in the solar industry, the mandate is welcome and advocates are
projecting demand to pick up beyond just the Golden State.
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Since 2010, the solar industry has grown rapidly — increasing some 150% to nearly 243,000
workers in 2018 from just under 100,000 eight years earlier, the Solar Energy Industries Association
(SEIA) said.
But recently the industry has struggled with the uncertainty brought on by new tariffs imposed in
January 2018 by the Trump administration of 30% on imported solar panels. (Those tariffs are set
to decline by 5% each year. The first 2.5 gigawatts of imported cells are also exempted each year,
and certain products, including some cells made by SunPower, were exempted from the list.)
The Trump tariffs were intended to encourage American manufacturing but were met with criticism
from industry advocacy groups, like the SEIA, where PetersenDean's Liardon is a board member.
The groups argued that higher costs and uncertainty for the industry would lead to job losses —
and they were right: in 2017 and 2018, solar employment declined by some 18,000 jobs.
At the time the tariffs were announced last year, U.S. Trade Representative Robert Lighthizer
released a statement that said in part, "[T]he President's action makes clear again that the Trump
administration will always defend American workers, farmers, ranchers, and businesses." The Office
of the U.S. Trade Representative refused to comment for this story, beyond its published materials.
"When tariffs were put on our product and our prices became more expensive, we couldn't compete
as well against other energy sources," said Abigail Ross Hopper, president and CEO of the SEIA.
"That additional cost has to be borne ultimately by the consumer."
Now the industry is poised for a comeback of sorts, in part thanks to state initiatives such as
California's push to go solar. The outlook for job growth in 2019 sees an increase of 7%, to a total
of 259,400 jobs, according to advocacy group The Solar Foundation's National Solar Jobs Census
for 2018.
SEIA's Ross Hopper said the California mandate, along with corporate procurement of solar
products by big names like Target — and utility companies investing more in solar options to save
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customers money — are all favorable developments that will likely boost job growth in years to
come.
"As we look forward and at 2019 and beyond, we see that more solar will be installed in this country,"
she said. "And with that, obviously there will be more solar jobs created because we need folks to
actually do that development and that installation."
That's where PetersenDean's focus is right now, on finding skilled workers like 36-year-old Ruben
Trujillo to meet demand. Installers make anywhere from $22 to $50 an hour, depending on skill set
and experience. The company's benefits include health-care coverage and 401(k) retirement
savings plans, as well as ongoing training.
"Every day is different. Every house is different, designs are different. So you never really see the
same thing every day," Trujillo said. "I wake up looking forward to actually come to work."
NewB ase For discussion or further details on the news below you may contact us on +971504822502,
Dubai, UAE
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The Editor :”Khaled Al Awadi” Your partner in Energy Services
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Khaled Al Awadi is a UAE National with a total of 28 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 2019 K. Al Awadi
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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 22