New base energy news 14 november issue 1294 by khaled al awadi

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NewBase Energy News 14 November 2019 - Issue No. 1294 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Adnoc and EGA sign long-term sales agreement -
petroleum coke
The National + NewBase
Abu Dhabi National Oil Company signed a long-term agreement to sell calcined petroleum coke to
Emirates Global Aluminium, the UAE's biggest industrial company outside the oil and gas sector.
The agreement with Adnoc will allow EGA to source up to 40 per cent of its calcined coke
requirements locally, reducing its logistics costs and reliance on imports, according to a statement
on Wednesday. EGA uses calcined petroleum coke in its aluminium smelting process.
The agreement was signed by Adnoc's director of marketing, supply and trading, Khaled Salmeen
and EGA's managing director Abdulla Kalban, and was witnessed by Adnoc Group chief executive
and UAE Minister of State Dr Sultan Al Jaber, and EGA chairman and Mubadala Investment
Company group chief executive Khaldoon Al Mubarak. Courtesy Adnoc .
"This agreement contributes to further increasing the local economic benefit generated from the
UAE’s natural resources and deepens ties and integration between two of the UAE’s most
important industries," Dr Sultan Al Jaber, UAE Minister of State and Adnoc Group chief executive,
said. "This partnership will enable Adnoc to maximise the value extracted from every barrel of oil
that is produced and processed."

Last week, Adnoc announced
additional hydrocarbon reserves of
7 billion "stock tank" barrels of oil
and 58 trillion cubic feet of
conventional gas and 160tcf of
unconventional gas, taking the UAE
to the sixth position from seventh
globally in terms of hydrocarbon
reserves, according to data listed
by the US Energy Information
Administration.
Adnoc Refining’s Carbon Black and Delayed Coker complex in Ruwais is central to the strategy of
maximising value from oil production and processing, Dr Al Jaber said. The facility processes the
heavy residue material left over from the refining of crude oil and converts it into more valuable
refined products.
The agreement with EGA represents the latest milestone in Adnoc's efforts to eliminate production
of high-sulphur fuel oil (or ‘residue oil’) and become a ‘zero-fuel oil’ refining business. Adnoc made
zero-fuel oil refining a priority in response to the International Marine Organisation’s (IMO) 2020
regulations, which seek to limit the environmental impact of global shipping fleets by reducing the
sulphur content in marine fuels to 0.5 per cent, from 3.5 per cent currently.
“Strengthening local supply chains that connect two of the nation’s most substantial energy and
industrial exporters demonstrates the maturity of our economic base,” EGA chairman Khaldoon
Khalifa Al Mubarak said.

UAE:ADNOC invests Dh1.8 Billion to upgrade Bab onshore field
Gulf News + NewBase
Abu Dhabi National Oil Company (Adnoc) on Wednesday announced a Dh1.8 billion investment to
upgrade its Bab onshore fieldImage Credit: Supplied
Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) announced on Wednesday, a significant
Dh1.8 billion investment to upgrade its Bab onshore field, one of its largest onshore producing
assets, located 160 kilometres southwest of Abu Dhabi city.
Adnoc Onshore, a subsidiary of Adnoc and the operator of the field, awarded the EPC
(engineering, procurement and construction) contract to Archirodon Construction Overseas SA Co
(Archirodon) to build the facilities and infrastructure required to sustain long-term crude oil
production capacity of the field at 485,000 barrels per day (bpd). The contract has a term of 39
months.
“This award follows an extremely competitive and rigorous tender process that ensures that over
75 per cent of the award value will flow into the UAE’s economy, stimulating local economic
growth and nurturing new business opportunities for the private sector,” said Abdulmunim Saif Al
Kindy, executive director of Adnoc’s Upstream Directorate.
“The Bab field is integral to our strategy to create a more profitable upstream business and this
award will ensure that we sustain long-term oil production capacity from a maturing field,
underlining our commitment to making smart investments,” he added.
The scope of the Bab field upgrade project includes the development of oil producing wells, water
injection wells, artificial lift wells, well-bays, let down stations, water injection clusters and other
infrastructure required to sustain the production capacity of the field.
With more than Dh1.35 billion expected to flow back into the UAE’s economy over the lifetime of
the project, the award will give significant stimulus to the country’s products and services and
create additional skilled employment opportunities for UAE nationals.
“The Bab field already plays an important role in supporting Adnoc’s production capacity
mandates and this upgrade complements Adnoc’s upstream growth plans,” said Yaser Saeed Al
Mazrouei, chief executive officer of Adnoc Onshore.
“The project will enable us to minimise life-cycle costs on the field and will deploy cutting-edge
technologies to allow us to progressively and efficiently unlock the full potential of the field’s
existing assets and wells, while tapping into new reservoirs to sustain long-term production
output.,” he added.

UAE: Baker Hughes opens wellhead facility in Abu Dhabi
Baker Hughes + NewBase
Baker Hughes, an energy technology solutions provider, has opened its new wellhead facility in
Abu Dhabi, in partnership with its local channel partner, Al Ghaith Oilfield Supplies and Services, a
media report said.
The 1,200-sq-m facility will support wellhead repair and maintenance activities, providing greater
equipment availability and faster turnaround times for customers in the UAE and across the
Middle East, reported Emirates news agency Wam.
The site will be fully operational within the next month, with the potential to expand in the future.
This next phase would include the addition of chemical storage, cement bulk plant, wireline fluids
and pressure pumping, as well as a digital solutions lab.
Ahmed Mousbah, vice president, Mena, Oilfield Equipment at Baker Hughes, said: "The new
wellhead assembly, repair and service facility in Abu Dhabi further underlines our commitment to
be closer to our customers and to create In-Country Value through enhanced local capabilities.
With our growing footprint in the UAE and the region, this expansion supports our focus on
delivering advanced equipment and services to our customers to help them achieve higher
operational efficiency and productivity."
Atif Arikat, CEO, Al Ghaith Oilfield Supplies and Services Abu Dhabi local distributer for Baker
Hughes SPC, added: "Partnering with Baker Hughes on this new facility will further enable us to
serve our customers and create a local supply chain for the industry.
In addition to meeting the demand for wellhead equipment, the advanced service facility will
ensure timely maintenance that will enable our customers to achieve increased uptime. With this
facility, we are contributing to added In-Country value generation that differentiates Baker Hughes
and our services."
This investment builds on Baker Hughes’ 40+ year presence in the UAE, with more than 1,000
employees. Baker Hughes facilities in the UAE include four workshops and manufacturing sites
covering wireline, completion systems, coil tubing, drilling systems, pressure pumping, artificial lift
and measurements and control. Additionally, the company has two training centres that serve
employees and customers from across the globe.

Indonesia: Coro Energy's Tambak-1 well successfully appraises
Mako gas field….Source: Coro Energy
Coro Energy has provided an operational update in relation to the drilling campaign in the Duyung
Production Sharing Contract ('PSC') in the West Natuna basin, offshore Indonesia, in which Coro
holds a 15% interest.
Tambak-1, located approx. 4.5 km north of the Mako South-1 well, has been drilled to an
intermediate depth of 513 metres true vertical depth sub-sea ('TVDSS').
The well has intersected the intra-Muda reservoir of the Mako field and a full suite of wireline logs
have been acquired together with a pressure survey and extensive fluid and gas samples
recovered. These data have established the well as a successful appraisal of the Mako gas
field and confirm the large, areally extensive single tank model for the field.
Highlights
 Top reservoir depth came in at circa 389 metres TVDSS as predicted
 A very well developed upper sandstone unit of approximately 5.2 metres with wireline logs
showing excellent porosity & permeabilities
 The well encountered a much better developed intra-Muda sand package than expected. In
addition to the upper unit, a thick, lower sandstone unit of almost 20 metres was found,
providing an overall gross thickness of approximately 25 metres of intra-Muda sandstone,
compared to a 7.3 metre reservoir sandstone seen in Mako South-1, providing volumetric
upside potential for the field
 Pressure data confirm the same pressure system as Mako South-1 and Tambak-2
 Gas samples recovered from the reservoir confirm gas composition as seen in Mako
South-1

 Gas-water contact found in the main upper sandstone unit circa 1.5 metres deeper than
Mako South-1 and Tambak-2
As previously reported, the Tambak-1 well is designed as both an appraisal of the northeast flank
of the Mako gas field as well as an exploration test of the Tambak prospect. An independent
review by Gaffney Cline & Associates had previously ascribed gross 2C resources of 276 Bcf
(48.78 MMboe) of recoverable dry gas in the Mako field with gross 3C resources of 392 Bcf (69.3
MMboe) representing additional field upside.
Coro management estimate that an increase in 2C resources of circa 100 Bcf is justified from the
results of the successful appraisal drilling in both Tambak-1 and -2, representing a very significant
value addition.
As a next step, the well will be drilled to a total
depth of approx. 1,370 metres TVDSS in order to
test the potential of the deeper Tambak prospect.
Coro estimate Tambak as having a mid-case
prospective resource potential of 250 Bcf and a
geological chance of success of 45%. The
Tambak-1 well is planned to be plugged and
abandoned once operations are complete.
Further announcements will be made, as
appropriate. Coro remains fully funded for its share
of costs associated with the drilling campaign.
he JV partners in the Duyung PSC are: Conrad
Petroleum (Operator) 76.5%; Coro
Enegy 15%; Empyrean Energy 8.5%.

NewBase 14 November 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil Rises on Tighter U.S. Supplies, Potential for Non-OPEC Cuts
Bloomberg + Reuters + NewBase
Oil rose for a second day after an industry report pointed to a drop in U.S. inventories and OPEC
said it sees potential for a “sharp” cut in crude production next year from countries outside the
group.
Futures added as much as 1.1% in New York after climbing 0.6% the previous day. The American
Petroleum Institute reported that stockpiles fell by 541,000 barrels last week, according to people
familiar with the data, while OPEC Secretary-General Mohammad Barkindo said there will likely
be downward revisions to U.S. shale output going into 2020.
Brent for January climbed 38 cents, or 0.6%, to $62.75 a barrel on the London-based ICE Futures
Europe Exchange after advancing 0.5% on Wednesday. The global benchmark crude traded at a
$5.18 premium to WTI for the same month.
West Texas Intermediate for December delivery rose 41 cents, or 0.7%, to $57.53 a barrel on the
New York Mercantile Exchange as of 2:45 p.m. in Singapore, breaking through its 200-day moving
average. It settled 32 cents higher at $57.12 on Wednesday.
Oil price special
coverage

OPEC’s prediction comes after major American shale producers including Pioneer Natural
Resources Co. warned that the shale boom is ending, although the Energy Information
Administration increased its production forecast for next year on Wednesday. The Organization of
Petroleum Exporting Countries also said it sees a possible upswing in demand, especially if the
U.S. and China reach a preliminary trade deal.
“OPEC’s comments are likely to have a limited impact” and the main driver will be whether the
producer group cuts supply further next month, said Howie Lee, a Singapore-based economist at
Oversea-Chinese Banking Corp. That’s possible, but non-compliance is a challenge with Iraq and
Nigeria consistently overproducing, he said.
U.S. gasoline stocks USOILG=ECI fell by 2.6 million barrels in the week to Oct. 11, while distillate
stockpiles USOILD=ECI, which include diesel and heating oil, fell by 3.8 million barrels, the U.S.
Energy Information Administration said on Thursday.
But a soaring rise in crude inventories offset the draws. Crude stocks rose by 9.3 million barrels,
far surpassing estimates for a build of 2.8 million barrels.
The rise was the result of a reduction in refining output for the week to its lowest capacity use
nationwide since Hurricane Harvey in September 2017. Refining capacity use fell to 83.1% as
refiners shut in capacity across the country.
“This is generally a bullish report,” said Phil Flynn, senior energy analyst at Price Futures Group in
Chicago. “Part of the problem for the build is that refineries are not running. Refinery runs fell
down, which is a concern.”
Overall imports have fallen, in part due to sanctions imposed on Chinese shipping firm COSCO
that have raised freight costs. The United States imposed sanctions on COSCO Shipping Tanker
(Dalian) Co and subsidiary COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co for
allegedly carrying Iranian oil.

Adding to concerns about the global economy, and therefore energy demand, U.S. retail sales fell
for the first time in seven months, while housing starts and industrial output dropped as well.
Earlier data showed a moderation in job growth and services sector activity.
“If we see more indications of slowing demand, I think the market is going to continue to sink
lower,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford,
Connecticut.
Brexit developments gave oil prices some support. European Union leaders gave their unanimous
backing to a Brexit deal with Britain on Thursday, putting the onus on Prime Minister Boris
Johnson to secure the British parliament’s approval for the deal in a vote in two days.
Crude got a short-lived boost mid-morning in Asia after White House Trade Adviser Peter Navarro
told Fox Business that the U.S. and China were on a “glide path” to a “phase one” trade
agreement. He played down a Wall Street Journal report that talks had hit a snag over farm
purchases.
China’s investment growth fell to a record low in October, while industrial output and retail sales
were well below estimates, according to data released Thursday. The disappointing numbers may
make Beijing more likely to make concessions to reach a limited trade deal.
The API report compares with the median forecast in a Bloomberg survey for a 1.5 million barrel
increase in U.S. crude inventories last week. The official EIA data is due later Thursday.
U.S. Boosts Oil-Output Forecast While Industry Warns of Slowdown
The pioneers of the U.S. shale boom are warning of a slowdown in oil production growth, but it
appears the U.S. government doesn’t agree.

The Energy Information Administration revised up its forecast for the growth rate for crude output
in 2020 to 1 million barrels a day from 910,000 barrels a day in October, according to the monthly
Short-Term Energy Outlook on Wednesday.
The report came as a surprise given signs that companies are reining in spending to focus on
shareholder returns rather than keep burning through cash.
“The EIA is not really convinced that’s the case,” said Bob Yawger, director of the futures division
at Mizuho Securities USA in New York. “It seems to me that they will walk those numbers down.”
Just hours earlier, Pioneer Natural Resources Co.’s Scott Sheffield expressed doubts that U.S. oil
output will meet the latest growth forecasts made by the International Energy Agency as
producers rein in spending, speaking in an interview on Bloomberg TV. The IEA said Tuesday that
the U.S. will account for 85% of the growth in production worldwide to 2030.
And analysts at Goldman Sachs Group Inc. said they see U.S. output rising by 600,000 barrels a
day next year, down from a previous estimate of 700,000 barrels.

NewBase Special Coverage
News Agencies News Release 03 August 2019
IEA Sees Global Oil Demand Hitting a Plateau Around 2030
The energy world is marked by a series of deep disparities. The gap between the promise of
energy for all and the fact that almost one billion people still do not have access to electricity. The
gap between the latest scientific evidence highlighting the need for evermore- rapid cuts in global
greenhouse gas emissions and the data showing that energy-related emissions hit another
historic high in 2018.
The gap between expectations of fast, renewables-driven energy transitions and the reality of
today’s energy systems in which reliance on fossil fuels remains stubbornly high. And the gap
between the calm in wellsupplied oil markets and the lingering unease over geopolitical tensions
and uncertainties.
More than ever, energy decision makers need to take a hard, evidence-based look at where they
stand and the implications of the choices they make. The World Energy Outlook does not provide
a forecast of what will happen. Instead, it provides a set of scenarios that explore different
possible futures, the actions – or inactions – that bring them about and the interconnections
between different parts of the system.
The Current Policies Scenario shows what happens if the world continues along its present path,
without any additional changes in policy. In this scenario, energy demand rises by 1.3% each year
to 2040, with increasing demand for energy services unrestrained by further efforts to improve
efficiency. While this is well below the remarkable 2.3% growth seen in 2018, it would result in a
relentless upward march in energy-related emissions, as well as growing strains on almost all
aspects of energy security.

In the Stated Policies Scenario, energy demand rises by 1% per year to 2040. Low-carbon
sources, led by solar photovoltaics (PV), supply more than half of this growth, and natural gas,
boosted by rising trade in liquefied natural gas (LNG), accounts for another third. Oil demand
flattens out in the 2030s, and coal use edges lower.
Some parts of the energy sector, led by electricity, undergo rapid transformations. Some
countries, notably those with “net zero” aspirations, go far in reshaping all aspects of their supply
and consumption. However, the momentum behind clean energy technologies is not enough to
offset the effects of an expanding global economy and growing population. The rise in emissions
slows but, with no peak before 2040, the world falls far short of shared sustainability goals.
The Sustainable Development Scenario maps out a way to meet sustainable energy goals in full,
requiring rapid and widespread changes across all parts of the energy system. This scenario
charts a path fully aligned with the Paris Agreement by holding the rise in global temperatures to
“well below 2°C …
and pursuing efforts to limit [it] to 1.5°C”, and meets objectives related to universal energy access
and cleaner air. The breadth of the world’s energy needs means that there are no simple or single
solutions. Sharp emission cuts are achieved across the board thanks to multiple fuels and
technologies providing efficient and cost-effective energy services for all.
Energy security remains paramount, and oil stays in the spotlight
A fast-moving energy sector highlights the importance of a broad and dynamic approach to energy
security. The attacks in Saudi Arabia in September 2019 underlined that traditional energy
security risks have not gone away. Meanwhile, new hazards –

from cybersecurity to extreme weather – require constant vigilance from governments. We
estimate that almost one-fifth of the growth in global energy use in 2018 was due to hotter
summers pushing up demand for cooling and cold snaps leading to higher heating needs.
Shale output from the United States stays higher for longer, reshaping global markets, trade flows
and security. Annual US production growth slows from the breakneck pace seen in recent years,
but updated official estimates of underlying resources nonetheless mean that the United States
accounts for 85% of the increase in global oil production to 2030 in the Stated Policies Scenario,
and for 30% of the increase in gas.
This bolsters the position of the United States as an exporter of both fuels. By 2025, total US
shale output (oil and gas) overtakes total oil and gas production from Russia.
Higher US output pushes down the share of OPEC countries and Russia in total oil production.
This share drops to 47% in 2030, from 55% in the mid-2000s, implying that efforts to manage
conditions in the oil market could face strong headwinds. Pressures on the hydrocarbon revenues
of some of the world’s major producers also underline the importance of their efforts to diversify
their economies.
Whichever pathway the energy system follows, the world still relies heavily on oil supply from the
Middle East. The region remains by far the largest net provider of oil to world markets, as well as
an important exporter of LNG.
This means that one of the world’s busiest trade routes, the Strait of Hormuz, retains its position
as a crucial artery for global energy trade, especially for Asian countries such as China, India,
Japan and Korea that rely heavily on imported fuel.
In the Stated Policies Scenario, 80% of international oil trade ends up in Asia in 2040, propelled
in large part by a doubling of India’s import needs.

Electricity moves to the heart of modern energy security
Cost reductions in renewables and advances in digital technologies are opening huge
opportunities for energy transitions, while creating some new energy security dilemmas. Wind and
solar PV provide more than half of the additional electricity generation to 2040 in the Stated
Policies Scenario and almost all the growth in the Sustainable Development Scenario.
Policy makers and regulators will have to move fast to keep up with the pace of technological
change and the rising need for flexible operation of power systems. Issues such as the market
design for storage, the interface between electric vehicles and the grid, and data privacy all have
the potential to expose consumers to new risks.
Hour-to-hour adjustments required in power systems due to variability in demand, wind and solar
Africa – the special focus of WEO-2019 – is increasingly influential for global energy trends. In the
Stated Policies Scenario, the rise in Africa’s oil consumption to 2040 is larger than that of China,
while the continent also sees a major expansion in natural gas use, prompted in part by a series of
large discoveries made in recent years.
The big open question for Africa remains the speed at which solar PV will grow. To date, a
continent with the richest solar resources in the world has installed only around 5 gigawatts (GW)
of solar PV, less than 1% of the global total. Solar PV would provide the cheapest source of
electricity for many of the 600 million
people across Africa without electricity
access today.
More than half a billion people are added
to Africa’s urban population by 2040. This
is much higher than the growth seen in
China’s urban population between 1990
and 2010, a period in which China’s
production of materials such as steel and
cement sky-rocketed.
Africa’s infrastructure development is not

set to follow the same path, but the energy implications of African urbanisation trends are still
profound. The expected growth in population in Africa’s hottest regions also means that up to half
a billion additional people would need air conditioners or other cooling services by 2040.
Our Africa analysis underlines that the planning, design and governance of the world’s growing
cities, the industrial materials that are used in their construction, and the transport options that are
available to their inhabitants are critical issues for the global outlook.
An urgent need to take full advantage of the world’s “first fuel”
The faltering momentum behind global energy efficiency improvements is cause for deep concern.
It comes against a backdrop of rising needs for heating, cooling, lighting, mobility and other
energy services.
Improvements in the energy intensity of the global economy (the amount of energy used per unit
of economic activity) are slowing: the 1.2% improvement in 2018 was around half the average rate
seen since 2010. This reflects a relative lack of new energy efficiency policies and of efforts to
tighten existing measures.

A sharp pick-up in efficiency improvements is the single most important element that brings the
world towards the Sustainable Development Scenario. The pursuit of all economically viable
opportunities for efficiency improvement can reduce global energy intensity by more than 3% each
year.
This includes efforts to promote the efficient design, use and recycling of materials such as steel,
aluminium, cement and plastics. This increased “material efficiency” could be enough in itself to
halt the growth in emissions from these sectors.
Innovative approaches also include the use of digital tools to shift electricity demand to cheaper
and less emissions-intensive hours of the day, reducing electricity bills for consumers and helping
with system balancing, while also helping to reduce emissions.
Critical fuel choices hang in the balance
A three-way race is underway among coal, natural gas and renewables to provide power and heat
to Asia’s fast-growing economies. Coal is the incumbent in most developing Asian countries: new
investment decisions in coal-using infrastructure have slowed sharply,
but the large stock of existing coal-using power plants and factories (and the 170 GW of capacity
under construction worldwide), provides coal with considerable staying power in the Stated
Policies Scenario.
Renewables are the main challenger to coal in Asia’s power sector, led by China and India.
Developing countries in Asia account for over half of the global growth in generation from
renewables.
Demand for natural gas has been growing fast as a fuel for industry and (in China) for residential
consumers, spurring a worldwide wave of investment in new LNG supply and pipeline
connections. In our projections, 70% of the increase in Asia’s gas use comes from imports –
largely from LNG – but the competitiveness of this gas in price-sensitive markets remains a key
uncertainty.

In the Stated Policies Scenario, global growth in oil demand slows markedly post-2025 before
flattening out in the 2030s. Oil demand for long-distance freight, shipping and aviation, and
petrochemicals continues to grow.
But its use in passenger cars peaks in the late 2020s due to fuel efficiency improvements and fuel
switching, mainly to electricity. Lower battery costs are an important part of the story: electric cars
in some major markets soon become cost-competitive, on a total-cost-of-ownership basis, with
conventional cars.
Consumer preferences for SUVs could offset the benefits from electric cars. The growing appetite
among consumers for bigger and heavier cars (SUVs) is already adding extra barrels to global oil
consumption.
SUVs are more difficult to electrify fully, and conventional SUVs consume 25% more fuel per
kilometre than medium-sized cars. If the popularity of SUVs continues to rise in line with recent
trends, this could add another 2 million barrels per day to our projection for 2040 oil demand.
However fast overall energy demand grows, electricity grows faster
Electricity use grows at more than double the pace of overall energy demand in the Stated
Policies Scenario, confirming its place at the heart of modern economies. Growth in electricity use
in the Stated Policies Scenario is led by industrial motors (notably in China),
followed by household appliances, cooling and electric vehicles. In the Sustainable Development
Scenario, electricity is one of the few energy sources that sees growing consumption in 2040 –
mainly due to electric vehicles – alongside the direct use of renewables, and hydrogen. The share
of electricity in final consumption, less than half that of oil today, overtakes oil by 2040.

Solar PV becomes the largest component of global installed capacity in the Stated Policies
Scenario. The expansion of generation from wind and solar PV helps renewables overtake coal in
the power generation mix in the mid-2020s.
By 2040, low-carbon sources provide more than half of total electricity generation. Wind and solar
PV are the star performers, but hydropower (15% of total generation in 2040) and nuclear (8%)
retain major shares.
The speed at which battery costs decline is a critical variable for power markets as well as for
electric cars. India is the largest overall source of energy demand growth in this year’s Outlook,
and we examine how a cost-effective combination of cheaper battery storage and solar PV could
reshape the evolution of India’s power mix in the coming decades.

Battery storage is well suited to provide the short-term flexibility that India needs, allowing a
lunchtime peak in solar PV supply to meet an early evening peak in demand. In the Stated
Policies Scenario, a major reduction in battery costs means that some 120 GW of storage are
installed by 2040.
We also examine the possibility that battery costs could decline even faster – an extra 40% by
2040 – because of greater industrial economies of scale or a breakthrough in battery chemistry,
for example. In this case, combined solar and battery storage plants would be a very compelling
economic and environmental proposition, reducing sharply India’s projected investment in new
coal-fired power plants.
Offshore wind is gathering speed
Cost reductions and experience gained in Europe’s North Sea are opening up a huge renewable
resource. Offshore wind has the technical potential to meet today’s electricity demand many times
over.
It is a variable source of generation, but offshore wind offers considerably higher capacity factors
than solar PV and onshore wind thanks to ever-larger turbines that tap higher and more reliable
wind speeds farther away from shore.
There are further innovations on the horizon, including floating turbines that can open up new
resources and markets. Increasingly cost-competitive offshore wind projects are on course to
attract a trillion dollars of investment to 2040. Europe’s success with the technology has sparked
interest in China, the United States and elsewhere.
In the Sustainable Development Scenario, offshore wind rivals its onshore counterpart as the
leading source of electricity generation in the European Union, paving the way to full
decarbonisation of Europe’s power sector. Even higher deployment is possible if offshore wind
becomes the foundation for the production of low-carbon hydrogen.
Tackling the legacy issues head on
If the world is to turn today’s emissions trend around, it will need to focus not only on new
infrastructure but also on the emissions that are “locked in” to existing systems. That means
addressing emissions from existing power plants, factories, cargo ships and other capital-intensive
infrastructure already in use. Despite rapid changes in the power sector, there is no decline in

annual power-related CO2 emissions in the Stated Policies Scenario. A key reason is the
longevity of the existing stock of coal-fired power plants that account for 30% of all energy-related
emissions today.
Over the past 20 years, Asia has accounted for 90% of all coal-fired capacity built worldwide, and
these plants have potentially long operational lifetimes ahead of them. In developing economies in
Asia, existing coal-fired plants are just 12 years old on average.
We consider three options to bring down emissions from the existing stock of plants: to retrofit
them with carbon capture, utilisation and storage (CCUS) or biomass co-firing equipment; to
repurpose them to focus on providing system adequacy and flexibility while reducing operations;
or to retire them early. In the Sustainable Development Scenario, most of the 2 080 GW of
existing coal-fired capacity would be affected by one of these three options.
What’s in the pipeline for gas?
Gas grids provide a crucial mechanism to bring energy to consumers, typically delivering more
energy than electricity networks and providing a valuable source of flexibility. From an energy
security perspective, parallel gas and electricity grids can be complementary assets.
From an energy transitions perspective, natural gas can provide near-term benefits when
replacing more polluting fuels. A key longer-term question is whether gas grids can deliver truly
low- or zero-carbon energy sources, such as low-carbon hydrogen and biomethane.
Low-carbon hydrogen is enjoying a wave of interest, although for the moment it is relatively
expensive to produce. Blending it into gas networks would offer a way to scale up supply
technologies and reduce costs.
Our new assessment of the sustainable potential for biomethane supply (produced from organic
wastes and residues) suggests that it could cover some 20% of today’s gas demand. Recognition
of the value of avoided CO2 and methane emissions would go a long way towards improving the
cost competitiveness of both options.

Shale and solar PV show that rapid change is possible, but the direction and speed
is set by governments
Ten years ago, the idea that the United States could become a net exporter of both oil and gas
was almost unthinkable. Yet the shale revolution – and over $1 trillion in upstream and midstream
investment – is making this a reality.
The foundations date back to a publicly funded research and development effort that began in the
1970s. This was followed by tax credits, market reforms and partnerships that provided a platform
for private initiative, innovation, investment and rapid reductions in cost.
Today, solar PV and some other renewable technologies – mostly in the power sector – are
similarly turning initial policy and financial support into large-scale deployment. Transforming the
entire energy system will require progress across a much wider range of energy technologies,
including efficiency, CCUS, hydrogen, nuclear and others. It will also require action across all
sectors, not just electricity.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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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,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 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

New base energy news 14 november issue 1294 by khaled al awadi

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New base energy news 14 november issue 1294 by khaled al awadi