New base energy news 19 may 2019 issue no 1246 by khaled al awadi

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
publication. However, no warranty is given to the accuracy of its content. Page 1
NewBase Energy News 19 May 2019 - Issue No. 1246 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's Brooge Petroleum plans new 250KPD refinery in Fujairah
The National - Jennifer Gnana
UAE-based terminal operator Brooge Petroleum and Gas Investment Company plans to build a
250,000 barrel-per-day refinery in Fujairah to produce bunker fuel. The emirate is one of the world’s
largest bunkering hubs with bunker fuel used to power vessels docking at the Port of Fujairah.
The first phase of the refinery is planned to be complete by the first quarter of 2020, said Nicolaas
Paardenkooper, the company’s chief executive, according to state media agency Wam. The
250,000 bpd refinery will be designed to produce bunker fuel and the first phase is due to be
completed in 2020.

The company will comply with International Maritime Organisation (IMO) 2020 regulations to cap
sulphur content in bunker fuel, he added.
The UAE, which accounts for around 4.2 per cent of global oil production, is a major player in the
crude storage industry through hubs such as Fujairah, which is the world’s second-largest bunkering
port behind Singapore.
Just outside the congested Strait of Hormuz, Fujairah has the capacity to handle as much as 60
million barrels of crude and oil products, with that expected to increase with the entry of players
such as Brooge Petroleum.
Brooge listed on the Nasdaq Stock Exchange in April as it looks to tap into new opportunities,
including in Africa.
Mr Paardenkooper had said in September that the company planned to add 600,000 cubic metres
of storage capacity to its existing almost 400,000 cubic metres during the next phase of expansion,
which is set to complete by the second quarter of 2020.
About BPGIC
After three years of extensive market studies BPGIC was incorporated in 2013 in Fujairah’s Free
Zone in UAE. BPGIC’s activities cover: Liquid bulk product storage (Crude oil, Fuel oil, Refined Oil
products, blending components and gas), Building, Managing, Investment in refineries, Extraction
and Exploration of Crude oil.
BPGIC is governed by the Board of Directors , all reputed professionals with extensive track record
in the Oil and Gas Industry. The Board is primarly responsible for setting the strategy of BPGIC and
for the general management and overview of strategic, operational and financial decisions.
The Board has set up an Executive Committee (EXCOM) to monitor the implementation of the
companies Mission and Vision, Company Strategy and Business Development both in the UAE and
globally.

UAE: Uniper loads low sulphur fuel oil in Fujairah
Gulf News + NewBase
Uniper Energy yesterday revealed that it had loaded the largest-ever cargo of low sulphur fuel oil
for delivery to Asian customers in Fujairah earlier this month ahead of the implementation of the
International Maritime Organisation (IMO) 2020 rule compelling all shipowners to reduce the sulphur
content of their bunker fuel.
The tanker with 154,411 metric tonnes of low sulphur fuel oil is now en route to Singapore, the firm
said, adding they also commenced loading 80,000 metric tonnes set for Europe, making it a busy
month for low sulphur fuel oil shipments.
“Stakeholders in the bunkering supply chain — refineries, ports, traders, shippers and more — are
nearing a cliff of major change that they must adapt to quickly,” Chris Wood, managing director of
Uniper Energy DMCC, said in a statement.
Uniper Energy is part of the international energy company Uniper with offices in Dubai. It owns and
operates two crude processing units strategically located at the Port of Fujairah, the world’s second-
biggest bunkering hub.
Uniper Energy’s crude units annually produce more than 3 million tons of ultra low sulphur fuel oil
playing a crucial role in achieving the IMO targets to limit sulphur in ships fuels to 0.5 per cent from
today’s 3.5 per cent, from January 1, 2020.
Uniper Energy trades with more than 200 counterparties, both private and state-owned entities,
including national oil companies (NOCs).
The latest development is expected to boost Fujairah’s position as a world-scale storage and
bunkering centre alongside Rotterdam and Singapore. The emirate, strategically located on Arabian
coast is also set to benefit in the next few years from companies’ plans to expand crude and
petroleum product facilities to avail of the state-of-the-art physical infrastructure on offer.

Oman: UK firm plans mega algae farm in Oman
Oman Observer - Conrad Prabhu + NewBase
A British-based firm plans to develop one of the world’s largest algae farms in the Sharqiyah
Governorate of the Sultanate — an initiative that will enable Oman’s entry into the booming
multibillion dollar global algae farming industry.
London-headquartered Feed Algae aims to invest RO 167.5 million ($440m approximately) in the
establishment of a mega algae cultivation project capable of producing a world-scale 100,000
tonnes of algae per annum
Oman’s authorities, led by the Implementation Support & Follow-up Unit (ISFU) — a task force
operating under the auspices of the Diwan of Royal Court — have been assisting the investor in
securing suitable land and other approvals for the landmark project.
When fully rolled out, the Al Sharqiyah Algae Farm will rank among the largest in the world, said
ISFU in a report on various initiatives and projects currently under implementation in support of
Oman’s economic diversification.
The first harvest of algae is slated during 2022, it stated.
Oman’s arid environment and climate conditions are conducive to the cultivation of high quality
algae, which is an increasingly important source of biofuels, nutrients, proteins and other valuable
ingredients. The global algae farming industry is projected to be worth around $48 billion over the
next five years, says ISFU, citing the growing demand for this environmentally-friendly and cost-
competitive natural resource.
“Algae has many uses other than food replacements, ranging from being a carbon sink and water
filter through to applications in biofuel, bioplastics, fertilisers and much more.
Due to a high concentration of protein and Omega-3 fatty acids, algal oil is an alternative to
expensive fish oils and thus in high demand in the aquaculture industry, and shellfish hatcheries in

particular, where they often have to produce their own,” the Implementation Support & Follow-up
Unit explained.
Underscoring the importance of the project to Oman’s economic diversification goals, the Ministry
of Housing, Ministry of Interior and Ministry of Agriculture and Fisheries are also coordinating efforts
to minimise delays in the speedy delivery of the initiative. A plot has also been provisionally allocated
for the farm.
During the course of this year, a consultant will be appointed to conduct an Environmental Impact
Assessment (EIA) while the investor finalises a feasibility study on the venture.
A usufruct contract with the Ministry of Housing, confirming the lease of land for the project, is slated
to be signed before the end of this year, according to ISFU.
What is Algaculture:
Algaculture is a form of aquaculture involving the farming of species of algae. The majority of algae
that are intentionally cultivated fall into the category of microalgae (also referred to
as phytoplankton, microphytes, or planktonic algae).
Macroalgae, commonly known as seaweed, also have many commercial and industrial uses, but
due to their size and the specific requirements of the environment in which they need to grow, they
do not lend themselves as readily to cultivation (this may change, however, with the advent of newer
seaweed cultivators, which are basically algae scrubbers using upflowing air bubbles in small
containers).
Commercial and industrial algae cultivation has numerous uses, including production of food
ingredients such as omega-3 fatty acids or natural colorants and dyes, food, fertilizer, bioplastics,
chemical feedstock (raw material), pharmaceuticals, and algal fuel, and can also be used as a
means of pollution control.
Global production of farmed aquatic plants, overwhelmingly dominated by seaweeds, grew in output
volume from 13.5 million tonnes in 1995 to just over 30 million tonnes in 2016.

Pakistan; OFID contributes US$50m to support energy security,
WAM/Hazem Hussein/MOHD AAMIR/Tariq alfaham
OPEC Fund for International Development, OFID, is contributing US$50 million to support energy
security and economic growth in Pakistan via a participation agreement with the International
Islamic Trade Finance Corporation, ITFC.
The ITFC and other financial institutions will provide
the remaining balance of the syndicated amount that
will enable Pakistan’s Ministry of Finance, Revenue
and Economic Affairs to purchase crude oil, refined
petroleum products and liquefied natural gas.
Since 1976 when OFID supported Pakistan with
balance of payments, the organisation has
committed more than US$1,672 million in public and
private sector lending in support of development operations in the country as well as in Trade
Finance and guarantees.
OFID is the development finance institution established by the Member States of OPEC as a
channel of aid to the developing countries. The fund works in cooperation with developing country
partners and the international donor community to stimulate economic growth and alleviate poverty
in all disadvantaged regions of the world.
OFID was established in January 1976 by the then 13 member countries of OPEC; including the
United Arab of Emirates.

NewBase 19 May 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil slips but ends week higher on Mideast supply disruption fears
Reuters + NewBase + Bloomberg
Oil prices edged lower on Friday due to demand fears amid a standoff in Sino-U.S. trade talks, but
both benchmarks ended the week higher on rising concerns over supply disruptions in Middle East
shipments due to U.S.-Iran political tensions.
Iran said on Friday it could “easily” hit U.S. warships in the Gulf, the latest in days of sabre-rattling
between Washington and Tehran, while its top diplomat worked to counter U.S. sanctions and
salvage a nuclear deal denounced by President Donald Trump.
U.S. sanctions on Iran have already cut the OPEC member’s crude exports further in May, adding
to supply curbs implemented through an OPEC-led pact for the first six months of the year.
Brent crude fell 41 cents, or 0.6%, to settle at $72.21 a barrel. The global benchmark notched a
weekly gain of about 2%, having ended last week largely steady and fallen the week before.
U.S. West Texas Intermediate crude fell 11 cents to end the session at $62.76, and gained about
1.7% on the week.
Oil price special
coverage

Oil prices came under pressure on Friday from seesawing U.S. equity markets due to fears over
global economic growth amid the escalation of a trade war between the world’s top economies. [.N]
Chinese media took a hardline approach to the tariff dispute between the Washington and Beijing,
saying the trade war will only make China stronger and will never bring the country to its knees.
“Despite what we view as a balanced oil market both domestically and globally, oil pricing is
apparently still sensitive to evolving developments in the Persian Gulf where occasional minor
military events are slowly cranking up geopolitical risk premium,” said Jim Ritterbusch, president of
Ritterbusch and Associates.
Iran’s foreign ministry on Friday rejected accusations by Saudi Arabia that Tehran had ordered an
attack on Saudi oil installations claimed by Yemen’s Iran-aligned Houthi militia.
Iran’s elite Revolutionary Guards (IRGC) are “highly likely” to have facilitated attacks last Sunday
on four tankers including two Saudi ships off Fujairah in the United Arab Emirates, according to a
Norwegian insurers’ report seen by Reuters.
“When tensions are this high, with the U.S. deploying a sizeable military force, even a mistake or a
tactical error by Iran could ignite the Middle East powder keg,” Stephen Innes, head of trading and
market strategy at SPI Asset Management, told Reuters by email.
“There are lots of supply risks with tensions this high.”
Besides the drop in Iranian exports, Russian shipments have been disrupted and the North Sea -
home to the crude underpinning Brent futures - is also in tighter supply owing to oilfield maintenance
and outages.
The market is also awaiting a decision from the Organization of the Petroleum Exporting Countries
(OPEC) and other producers over whether to continue with supply cuts that have boosted prices
more than 30% so far this year.
A meeting of an OPEC-led ministerial committee in Saudi Arabia this weekend will assess member
states’ commitment to their deal to reduce oil production and could make a recommendation on
whether to extend or adjust the pact.

The mounting Middle East tensions overshadowed bearish developments for oil prices this week,
such as an unexpected increase in U.S. crude inventories and consistently record-high production
levels.
However, U.S. energy firms this week reduced the number of oil rigs operating for the second week
in a row, with the rig count at its lowest since March 2018, as some drillers follow through on plans
to cut spending.

EIA revises its crude oil price forecast upward as supply
expectations change U.S. EIA, Short-Term Energy Outlook, January, April, and May 2019 editions
In its May 2019 edition of the Short-Term Energy Outlook (STEO), EIA revised its price forecast for
Brent crude oil upward, reflecting price increases in recent months, more recent data, and changing
expectations of global oil markets. Several supply constraints have caused oil markets to be
generally tighter and oil prices to be higher so far in 2019 than previous STEOs expected.
Members of the Organization of the Petroleum Exporting Countries (OPEC) had agreed at a
December 2018 meeting to cut crude oil production in the first six months of 2019; compliance with
these cuts has been more effective than EIA initially expected.
In the January STEO, OPEC’s crude oil and petroleum liquids production was expected to decline
by 1.0 million b/d in 2019 compared with the 2018 level, but EIA now forecasts OPEC production to
decline by 1.9 million b/d in the May STEO.
Within OPEC, EIA expects Iran’s liquid fuels production and exports to also decline. On April 22,
2019, the United States issued a statement indicating that it would not reissue waivers, which
previously allowed eight countries to continue importing crude oil and condensate from Iran after
their waivers expired on May 2.
Although EIA’s previous forecasts had assumed that the United States would not reissue waivers,
the increased certainty regarding waiver policy and enforcement led to lower forecasts of Iran’s
crude oil production.

Venezuela—another OPEC member—has experienced declines in production and exports as a
result of recurring power outages, political instability, and U.S. sanctions. In addition to supply
constraints that have already materialized in 2019, political instability in Libya may further affect
global supply.
Any further escalation in conflict may damage crude oil infrastructure or result in a security
environment where oil fields are shut in. Either situation could reduce global supply by more than
EIA currently forecasts.
In the May STEO, total OPEC crude oil and other liquids supply was estimated at 37.3 million b/d
in 2018, and EIA forecasts that it will average 35.4 million b/d in 2019. EIA assumes that the
December 2018 agreement among OPEC members to limit production will expire following the June
2019 OPEC meeting.
Source: U.S. Energy Information Administration, Short-Term Energy Outlook, January, April, and May 2019 editions
U.S. crude oil and other liquids production is sensitive to changes in crude oil prices, taking into
account a lag of several months for drilling operations to adjust. As crude oil prices have increased
in recent months, so too have EIA’s domestic liquid fuels production forecasts for the remaining
months of 2019.
U.S. crude oil and other liquids production, which grew by 2.2 million b/d in 2018, is forecast in EIA’s
May STEO to grow by 2.0 million b/d in 2019, an increase of 310,000 b/d more than anticipated in
the January STEO. In 2019, EIA expects overall U.S. crude oil and liquids production to average
19.9 million b/d, with crude oil production alone forecast to average 12.4 million b/d.
Relative to these changes in forecasted supply, EIA’s changes in forecasted demand were relatively
minor. EIA expects that global oil markets will be tightest in the second and third quarters of 2019,
resulting in draws in global inventories. By the fourth quarter of 2019, EIA expects that inventories
will build again, and Brent crude oil prices will fall slightly.

U.S. crude stockpiles rise unexpectedly to highest since 2017: EIA
U.S. crude oil stockpiles rose unexpectedly last week, climbing to their highest since 2017 amid a
release from the national emergency reserve, while gasoline inventories decreased more than
forecast, the Energy Information Administration said on Wednesday.
Crude inventories rose by 5.4 million barrels in the last week, compared with analysts’ expectations
for a decrease of 800,000 barrels.
Nearly 1.8 million barrels was added to supply through the release from the U.S. Strategic Petroleum
Reserve. The U.S. Energy Department said in February it was offering up to 6 million barrels of
sweet crude oil for delivery in May from the SPR in a sale mandated by a previous law to raise funds
to modernize the facility.
Overall crude inventories, not including the SPR, rose to 472 million in the latest week, their highest
since September, 2017 and about 2% above the five year average for this time of year, according
to EIA data.
“The report was bearish due to the large crude oil inventory build,” said John Kilduff, a partner at
Again Capital Management in New York. “There was also a large increase in crude oil inventories
at the Cushing, Oklahoma delivery hub, which adds to the bearishness of the report.”
Crude stocks at the Cushing, Oklahoma, delivery hub for U.S> crude futures rose by 1.8 million
barrels to 47.8 million barrels, their highest since December 2017, the data showed.

Oil prices fell after the data, although by 11:46 a.m. EDT (1546 GMT), U.S. crude futures was up
27 cents a barrel at $62.05 and Brent crude gained 75 cents at $71.99 a barrel.
The increase in crude stocks came despite higher refinery utilization and a rise in exports.
Net U.S. crude imports fell last week by 106,000 bpd as exports alone soared over 1 million bpd to
nearly 3.4 million bpd, just short of the record highs touched in February.
Refinery crude runs rose by 271,000 barrels per day as refinery utilization rates rose by 1.6
percentage points to 90.5 percent of total capacity, its highest since February, the EIA data showed.
More bullish especially just ahead of summer driving season, gasoline stocks fell by 1.1 million
barrels, compared with analysts’ expectations in a Reuters poll for a 299,000-barrel drop. At 225
million barrels, gasoline stocks were about 2% below the five year average for this time of year.
Distillate stockpiles, which include diesel and heating oil, rose by 84,000 barrels, versus
expectations for a 1 million-barrel drop, the EIA data showed.

Shale Overhead Costs Under Fire as Investors Drill Even Deeper
Bloomberg - Rachel Adams-Heard + NewBase
U.S. shale producers that have reined in growth plans to mollify investors are now facing increasing
pressure to slash their own pay and gut bloated offices.
Almost all major U.S. explorers cut their capital budgets after oil prices fell at the end of 2018. The
goal: Show they were willing to pay back shareholders at a time when their stocks were under-
performing the broader market. But it didn’t stop there, investors are now increasingly focused on
general and administrative budgets, or G&A, used for everyday costs.
Consider Fir Tree Partners, a hedge fund that’s aggressively targeted bloated cost structures at
companies it’s invested in. Three small drillers -- Linn Energy LLC, Midstates Petroleum Co. and
Amplify Energy Corp. -- responded by collectively cutting overhead by about $107 million from 2017
levels, according to Evan Lederman, a partner at the New York-based fund.
"You’re seeing this across the industry,” Lederman said in an interview. "There’s been an overall
paradigm change in the E&P space that has been helpful, and will hopefully lead to more traditional,
long-only investors -- not just hedge funds like us -- coming back into the space because these
businesses are being run well."
At many oil producers, executive compensation can amount to as much as 20% of general and
administrative costs, he said. “We like to see the executive suit closer to the 10% number."
Pioneer Natural Resources Co. recently said it is shrinking spending, offloading assets and asking
one-third of senior managers to retire. The moves spurred speculation that Chief Executive Officer
Scott Sheffield may be putting the company on the sales block. But Sheffield said at the time that
this wasn’t so.
Other companies are also finding ways to cut back. Marathon Oil Corp., for instance, has altered the
way its exploration team is structured and paid to mirror private equity, using smaller groups with

their compensation based on certain milestones. That allows the company to get into relatively
unexplored areas for cheap, CEO Lee Tillman said in an interview in March.
Meeting shareholder demands is key when the 29 members of the S&P 500 Energy Index are down
17% since this time last year, while the S&P 500 Index is up almost 6%.
“We’re really at the point where companies are having to think about this more meaningfully,” said
Matt Portillo, an analyst at Tudor Pickering Holt & Co. “Investors really just want to know how that
G&A composition breaks down as it relates to headcount,” he said, as well as other costs that “might
be considered more extravagant in nature.”
Part of why overhead costs got out of hand is that the focus was primarily on production growth.
“They weren’t really caring about profitability,” Fir Tree’s Lederman said. “They were caring about
growth and production.”
Commodity Crash
During the commodity crash of 2016, “the public market investors took a step back and said, ‘Wow.
These businesses, even at $80 or $90 oil, don’t make any money,”’ he said.
Another way to cut costs is by cutting workers. Laredo Petroleum Inc. last month axed its workforce
by about 20% to cut expenses by about $30 million a year. So far this year, U.S. explorers overall
have publicly pledged to cut more than 1,200 workers.
“It’s a different skill-set to find oil versus the skill-set to produce it efficiently,” Laredo Chief Executive
Officer Randy Foutch said in an interview. “We adjusted to fit a totally different cadence on how
much capital we were spending and where.”
Smaller producers, with fewer chances to capitalize on economies of scale, tend to have higher
administrative expenses relative to the cash they bring in.
Administrative Needs
Laredo’s expected general and administrative spending this year is about 23% of its pre-tax
earnings guidance, according to Tudor Pickering. That means the company is spending about $1
on administrative needs for every $4.30 of profits before taxes and other expenses. Diamondback
Energy Inc., on the other hand, plans to shell out $1 on those types of expenses for every $14.30 it
earns.
Still, slashing workforces, even by the thousands, doesn’t entirely solve the problem, said Rob
Thummel, managing director at Tortoise, which handles $16 billion in energy-related assets. “I’d
much rather see a clearer alignment between the share price and executive pay,” Thummel said.
Last year, Institutional Shareholder Services Inc., the world’s biggest proxy adviser, added new
metrics to a screening process it uses to flag companies that overpay executives who underdeliver
for investors. Instead of just focusing on total shareholder returns, companies were judged on their
return on invested capital as well as their assets and earnings growth.
Perhaps the best way to align the c-suite’s pay with shareholder returns is by compensating with
stock, said Thummel. That helps prevent a common issue: “They’re getting paid quite substantially
in periods when the stock prices goes down."
Activist Push
Earlier this year, wildcatter Floyd Wilson was elbowed aside as CEO of Halcon after Fir Tree
launched a campaign against the struggling producer’s spending habits, calling out Wilson for flying

private even after the company emerged from bankruptcy and urging cuts to “excessive executive
compensation.”
Now, Halcon’s warning that it may not have enough liquidity to repay the roughly $730 million of
outstanding debt that would come immediately due if it defaults on its credit agreement and said it’s
hired advisers to look at strategic alternatives.
That’s a similar push to one being made by private equity firm Kimmeridge Energy Management
Co., which is pressing for dramatic changes at PDC Energy Inc. and has made runs against
explorers including Carrizo Oil & Gas Inc. and Resolute Energy Corp.
Executive pay packages that reward production growth rather than share performance destroy
value, Ben Dell, Kimmeridge’s founder, said in an interview earlier this year.
High Overhead
Investors have pressured producers to cut administrative costs or consolidate
Source: Tudor Pickering Holt & Co.
Note: Chart shows expected 2019 general & administrative costs as a percentage of EBITDA esimates
Ultimately, the biggest cuts will come from consolidation, Tudor Pickering’s Portillo said.
Encana Corp., the Canadian driller that produces 91,200 barrels a day from the Permian, cut its
executive and senior management roles by 35% and its total positions by 15% after completing its
takeover of Newfield Exploration Co. All told, the cuts and other moves amounted to about $150
million in annual savings.
Occidental Petroleum Corp. is eyeing about $1.1 billion in general and administrative cuts after
winning a month-long bidding war for Anadarko Petroleum Corp., which had been flagged as being
among the highest-cost producers,.

NewBase Special Coverage
News Agencies News Release 06 May 2019
U.S Tax credit encourages more wind power and less Coal plants
to be added by: U.S. EIA, Preliminary Monthly Electric Generator Inventory
EIA expects that U.S. wind capacity additions in 2019 will total 12.7 gigawatts (GW), exceeding
annual capacity additions for the previous six years but falling short of the record 13.3 GW of wind
capacity added in 2012. Expected capacity additions discussed in this article are based on projects
reported to EIA through surveys and reported in EIA’s Preliminary Monthly Electric Generator
Inventory.
Changes in annual capacity additions for wind in the United States are often explained by changes
to tax incentives. The U.S. production tax credit (PTC), which provides operators with a tax credit
per kilowatthour of renewable electricity generation for the first 10 years a facility is in operation,
was initially set to expire for all eligible technologies at the end of 2012 but was later retroactively
renewed.
The high level of annual capacity additions in 2012 was driven by developers scheduling project
completion in time to qualify for the PTC. Similarly, the increase in annual capacity additions for
wind scheduled for 2019 is largely being driven by the legislated phaseout of the PTC extension for
wind.
When renewed in 2013, the PTC provided a maximum tax credit for wind generation of 2.3 cents
per kilowatthour (kWh) for the first 10 years of production. Under the PTC phaseout, the amount of
the tax credit decreases by 20 percentage points per year from 2017 through 2019. Facilities that
begin construction after December 31, 2019, will not be able to claim the PTC.

Under the current PTC legislation, wind projects are eligible to receive credit based on either the
year the project begins operation or the year in which they demonstrate that 5% of total capital cost
for the project has been spent and project construction has begun. This 5% down method, known
as safe harboring, enables wind developers to receive the PTC at a given year’s level, provided
they complete construction no more than four calendar years after the calendar year that
construction of the facility began.
U.S. wind project developers who want to receive the full 2016 value of the PTC must begin
operations by the end of 2020. However, based on the latest project statuses reported on
the Preliminary Monthly Electric Generator Inventory, more wind capacity is expected to come
online by the end of 2019 than by the end of 2020.
As in previous years, many of the annual wind capacity additions are expected to come online in
the month of December. According to reported dates for wind projects coming online in 2019, 5.7
GW, or 44.7% of the annual total, are currently expected to be completed in December.
Coal stockpiles at their lowest point in over a decade
U.S. coal stockpiles decreased to 98.7 million tons in February 2019, their lowest value in more than
a decade. Total U.S. coal stockpiles have fallen as more coal plants have retired.
Coal plants generally stockpile much more coal than they consume in a month. Coal consumed by
power plants follows the seasonal pattern in overall electricity generation, meaning coal
consumption is typically highest in summer and winter months. Because coal-fired power plants are
consuming more coal in the warmest summer months and coldest winter months, coal stocks at
power plants are often at their lowest in August and February.

In addition to surveying coal stockpile levels, EIA also calculates how long these stockpiles would
last, assuming the power plants receive no additional coal. This value, known as days of burn,
considers each plant’s current stockpile level and its estimated consumption rate in the coming
months. In February 2019, U.S. coal power plants had, on average, about 90 days of burn.
Because coal-fired power plants use different types of coal, EIA tracks this data based on coal rank.
The two main types of coal used for electricity generation in the United States are bituminous coal,
which is mostly produced in states such as West Virginia, Illinois, and Pennsylvania, and
subbituminous coal, which is mostly produced in Wyoming.
For bituminous coal-fired power plants, most of which are located in the eastern United States, the
average number of days of burn reached 91 days in February 2019. For subbituminous coal-fired
power plants, largely located in the Midwest and West, the average number of days of burn was
slightly lower at 89 days in February 2019.

EIA expects coal stockpiles to remain relatively low throughout 2019, according to forecasts in EIA’s
latest Short-Term Energy Outlook.
Coal is expected to be the second-highest fuel for electricity generation in 2019, providing 996
million megawatthours, or 24% of total electricity generation, second only to natural gas at 1,505
million megawatthours (37%). To provide that electricity, the U.S. power sector is forecast to
consume about 555 million short tons of coal. If realized, this level of coal consumption by the U.S.
power sector would be the lowest since 1979.

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
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Khaled Malallah Al Awadi,
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MS & BS Mechanical Engineering (HON), USA
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Mobile: +97150-4822502
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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

New base energy news 19 may 2019 issue no 1246 by khaled al awadi

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New base energy news 19 may 2019 issue no 1246 by khaled al awadi