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NewBase Energy News 20 June 2020 - Issue No. 1348 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:Abu Dhabi's brings Oil and Gas industry chiefs together
The National + NewBase
With physical meetings suspended amid the pandemic Adnoc's virtual
discussion on Tuesday provided a critical opportunity to share ideas, says
Pulitzer prize winning author Dr Daniel Yergin
The fifth edition of the Abu Dhabi CEO Roundtable was hosted by Dr Sultan Al Jaber,
Minister of State and Group CEO of the Abu Dhabi National Oil Company. Courtesy
Adnoc
Abu Dhabi's ability to virtually convene the world's leading oil and gas sector chief
executives has been instrumental amid the disruption caused to the industry by the
pandemic crisis.
At an online gathering last Tuesday, seventeen CEOs shared ideas about the challenges
and opportunities ahead, including remote working and maintaining momentum on
sustainability efforts.
www.linkedin.com/in/khaled-al-awadi-38b995b
Copyright © 2020 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 endeavors have been used to ensure the accuracy of the information contained in this
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The Abu Dhabi National Oil Company's annual CEO meetings are normally held in the
UAE capital in November to coincide with Adipec, one of the biggest energy exhibitions
and conferences in the world, which Adnoc also hosts.
Last year for example, Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and
Deputy Supreme Commander of the Armed Forces, attended the CEO gathering held at
Adnoc's headquarters.
However, Dr Sultan Al Jaber, Adnoc group chief executive and Minister of State, hosted
this year's - the fifth - earlier than usual and online.
Joining the discussion were:-
Amin Nasser of Saudi Aramco, Patrick Pouyanné of France's Total,
BP's Bernard Looney, Claudio Descalzi of Italy's Eni and
Mukesh Ambani from India's Reliance Industries.
Also joining were Takayuki Ueda of Japan's Inpex, Dai Houliang of China's CNPC,
Nassef Sawiris of OCI, Philippe Boisseau from Cepsa, Vicki Hollub of Occidental
Petroleum and Alfred Stern of Austria's Borealis. Vagit Alekperov of Russia's Lukoil, Liu
Yijiang of ZheunHua Oil, Yongsoo Huh of Korea's GS Energy, Rainer Seele of OMV and
Mario Mehren of Germany's Wintershall were also on the video call.
The Fifth Abu Dhabi CEO Roundtable convened virtually, bringing together chief
executives of global energy companies. Courtesy: Adnoc
"Abu Dhabi has a demonstrated ability to look down the road and see future issues,"
Daniel Yergin, vice chairman of IHS Markit, the global research and information
Copyright © 2020 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 endeavors have been used to ensure the accuracy of the information contained in this
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company, told The National. Dr Yergin is author of The Prize, for which he received the
Pulitzer Prize, and The Quest. His new book, The New Map: Energy, Climate, and the
Clash of Nations, comes out in September.
"I write about that capacity in my new book. Adnoc has become a thought leader in the
global industry, and that contributes to its competitive position and that of Abu Dhabi,"
said Dr Yergin, who has chaired the meetings since they began.
The UAE is sixth highest in the world in terms of oil and gas reserves, according to US
Energy Information Administration data - most of that comes from Abu Dhabi.
While industry leaders do regularly come together to talk and share ideas at major
conferences – such as Adipec, CeraWeek in Houston and the World Economic Forum
in Davos – temporarily putting aside their competitive spirit, physical conferences have
been cancelled in the wake of the pandemic.
"Some of the chief executives are actually working from home. So the industry leaders
found it very constructive to talk about how the world, the industry, and the future of work
have been changed by this great disruption," said Dr Yergin of last week's CEO event.
"All the plans and budgets that companies had at the beginning of 2020 have been
overwhelmed by the turmoil of the coronavirus, the economic shutdown, and the collapse
in demand and prices.
So it was very significant for these industry leaders to be able to discuss how their
companies have dealt with the virus and the learnings that have come out of it, and
assess how the trends that were expected for the future have been changed and what
that means for the industry."
Fifth Abu Dhabi CEO Roundtable Convenes Virtually, Bringing Industry Together around Common
Purpose of Ensuring Sustainable Global Energy Supplies.https://bit.ly/2zJayzy
Martin Fraenkel, president of
S&P Global Platts, a provider
of energy and commodities
information, agreed that it is
more important than ever to
maintain this connectivity.
He told The National: "The
energy industry has learned
many things about
maintaining efficient
operations during lockdown,
but we also know that we are an industry where simply maintaining the status quo will
not deliver the solutions needed to address energy transition. For that, the industry needs
to come together – even virtually – for live brainstorming to exchange knowledge and
surface new ideas."
Copyright © 2020 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 endeavors 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 4
Global oil demand is not expected to recover until 2022 amid a slowdown in air traffic as
a result of the effects of the pandemic, according to the International Energy Agency.
The agency forecasts that an investment of $1 trillion, equivalent to 0.7 per cent of global
economic output, is needed over the next three years to sustainably rebuild economies.
The crisis has also accelerated the transformation of the world economy to one based
on lower carbon intensity, according to BP.
Dr Yergin said, as companies explore ways to adapt, being able to discuss these trends
with each other brings into sharper focus the challenges that lie ahead.
"There’s no question that the world is
changing and companies are
adapting in different ways.
Understanding the thinking behind
the strategies and the choices that
different companies are making
brings important clarity at a time of
change.
For instance, there was keen interest
in how the crisis will affect the
sustainability agenda and what
companies do about it," he said.
#BP CEO Bernard Looney is looking
forward to the upcoming virtual edition of
the Abu Dhabi CEO Roundtable.
Another topic of discussion was the
future of the workplace. There were
different viewpoints with "the
thinking of one CEO as to why that
company expects to have 25 per cent of its employees work at home permanently, while
another says that it is important to get people back into the office as soon as possible."
There have been numerous challenges in recent years, notably the oil price slump of
2016, which major companies have been very open about in how they are attempting to
surmount them, at least in terms of top-level thinking.
Abu Dhabi has helped to create a fruitful landscape for discourse. Along with being an
occasion to host the dedicated gathering for top chief executives, Adipec has developed
to become "a premier global industry and technology conference", Dr Yergin said. The
event is a showcase for Abu Dhabi's position as a hub for innovation and progress.
“Oil and Gas 4.0” was the theme for last November's week-long conference as upstream
companies examined how best to navigate a bearish oil market, slowing global economic
growth and demand concerns, as well as a much more prevalent environmental
narrative.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Oman Speed Plan to Build Middle East’s Biggest Oil-Tank Farm
Bloomberg - Verity Ratcliffe
Oman’s ambitious goal of building the biggest oil-storage facility in the Middle East is finally
progressing, more than seven years after the Gulf sultanate announced the plan.
Oman Tank Terminal Co. has almost finished constructing eight tanks to store crude for a new
refinery near the town of Duqm on the Arabian Sea. It’s now pushing ahead with others that could
be used by oil companies and traders, according to two people with knowledge of the project. That
would increase Duqm’s capacity to at least 25 million barrels, according to OTTCO’s website.
The Ras Markaz Crude Oil Park could provide an alternative for energy traders and exporters eager
to avoid the Strait of Hormuz, a choke-point at the mouth of the Arabian Gulf that’s seen numerous
flareups in recent years, including Iranian seizures of tankers.
The Omani facility lies roughly 600 miles (966 kilometers) from the waterway. The United Arab
Emirates port of Fujairah, the region’s largest hub with 14 million barrels of commercial crude-
storage capacity, is less than 100 miles from Hormuz.
“Crude storage that anybody can use outside the Strait of Hormuz, that can go either east or west,
is probably a good thing,” said Alan Gelder, vice president for refining, chemicals and oil markets at
consultant Wood Mackenzie Ltd. Iraq and Kuwait, a co-investor in the refinery, might see Duqm as
an attractive place to park their crude outside the Gulf, he said.
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Oil storage shot to prominence in March and April when coronavirus lockdowns caused demand
for energy to collapse. Traders and producers struggled to find enough space for their unwanted
crude, with many turning tankers into makeshift, floating warehouses to absorb the unprecedented glut.
Terminal operators at Fujairah had to turn down requests for storage in April because they’d run out.
Leasing the tanks would provide extra revenue for Oman, whose finances have been battered this
year by the virus and fall in oil prices. Its budget deficit is forecast to swell to 17% of gross domestic
product in 2020, and the government has discussed asking other Gulf states for financial aid.
Seven Years
When OTTCO unveiled its plans in 2013, it said Ras Markaz would eventually be able to store 200
million barrels -- almost 15 times Fujairah’s capacity. The company and state-controlled parent
firm OQ declined to comment on whether that was still the aim.
The Duqm refinery is scheduled to start next year and the eight tanks will be able to hold 5.7 million
barrels. They should be ready by the first quarter of 2021.
OTTCO’s plans for the expanded tank farm still hinge on finding co-financiers as well as companies
to book the storage.
Excluding the refinery, Oman invested about $350 million in the first stage of the Duqm special
economic zone, where Raz Markaz is located. Some three-quarters of that was funded by the Asian
Infrastructure Investment Bank, whose largest shareholder is China. Oman sent almost 90% of its
oil exports in May to China.
OTTCO faces a more immediate challenge after Duqm was sealed off last week due to a spate
of virus infections, further complicating planning and construction.
Copyright © 2020 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 endeavors 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 7
UAE: Bilfinger Tebodin lands Abu Dhabi bulk liquid terminal deal
Gulf Project + TradeArabia
Global engineering and industrial services provider Bilfinger Tebodin Middle East has been awarded
a contract to provide front end engineering design (Feed) and project management consultancy
(PMC) services for the development of bulk liquid storage terminal in Khalifa Port in Abu Dhabi.
The deal was awarded by Arabian Chemical Terminals (ACT), a pioneer in handling and distribution
of bulk liquid products in Saudi Arabia. Established in 1985, the Saudi group has been responsible
for commissioning the first ever-commercial liquid chemical bulk storage terminal in the kingdom.
Over the years, ACT pioneered the efficient handling and distribution of bulk liquid products within
the GCC region and has over 35 years’ experience in this field.
On the contract win, Albert Vollema, the project director of Bilfinger Tebodin Middle East, said: "The
greenfield project is considered to be strategic for ACT as well as Khalifa Port and wider region
including Kizad and ZonesCorp since this will enhance the capabilities in handling and distribution
of liquid bulk products and gases."
"The project will benefit existing customers and attract new customers in the region seeking liquid
bulk storage and distribution and we, at Bilfinger Tebodin Middle East, are excited to be part of this,"
he added.
ACT General Manager at Abu Dhabi Kasper Castricum said Kizad was an integral part of Abu
Dhabi’s Economic Vision 2030 that holds a roadmap for suitable growth of the emirate's economy.
"We look forward to working with Bilfinger Tebodin Middle East as Kizad is embarking to set new
standards for industrial zone infrastructure, environment, and operations and we are certain of
Bilfinger’s expertise and knowledge to execute and deliver," he added.-
Copyright © 2020 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 endeavors 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 8
India to dominate Asia’s new-build trunk pipeline additions by 2023
NewBase + Global Data
India is expected to lead Asia’s oil and gas new-build trunk/pipeline length additions, contributing
around 59 per cent of the continent’s planned and announced pipeline length additions between
2020 and 2024, according to GlobalData, a leading data and analytics company.
The regional heavyweight is expected to develop a new-build pipeline length of 27,364 km by 2024,
stated GlobalData in its latest report,‘Global Length and Capital Expenditure Outlook for Oil and
Gas Pipelines, 2020−2024: Asia Leads Global Pipeline Growth.’
Soorya Tejomoortula, Oil and Gas Analyst at GlobalData, said: "In India, 48 new-build pipelines are
likely to start operations within the next four years. Of this, 33 are planned pipelines with identified
development plans and the remaining 15 are early-stage announced pipelines."
"Kandla–Gorakhpur is the longest upcoming pipeline in the country with a length of 2,757km. It is a
product pipeline expected to start operations in 2024," he stated. GlobalData expects China to be
the second-highest contributor to the Asia’s new-build pipeline length additions by 2024 with a
length of 10,609 km.
Planned projects account for almost entire pipeline additions in the country with 10,567 km. The
Power of Siberia 1 (China Section) is the longest upcoming pipeline in the country with a length of
3,371 km. It is a natural gas pipeline expected to start operations by 2023, according to GlobalData.
Pakistan ranks third in contribution to the new-build pipeline length additions in the region by 2024
with a length of 2,711 km from eight upcoming pipelines. Of the total length, announced and
planned pipelines are likely to contribute 1,480 km and 1,231 km, respectively, it added.-
Copyright © 2020 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 endeavors have been used to ensure the accuracy of the information contained in this
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U.S.: N. Gas production efficiency continued to improve in 2019
Source: U.S. Energy Information Administration, Drilling Productivity Report
The U.S. Energy Information Administration’s (EIA) latest Drilling Productivity Report (DPR) was
updated on Monday, June 15. Analysis of underlying data on natural gas well efficiency shows how
U.S. natural gas production increased in 2019 because, in part, of greater productivity of new wells
drilled in shale and tight formations. Initial production rates for natural gas production from new
wells in the DPR’s seven regions have generally increased since at least 2007.
The average new well in the Haynesville, Permian, Eagle Ford, Niobrara, and Bakken regions in
2019 produced more natural gas than wells drilled in previous years in those same regions. This
trend has persisted for 13 consecutive years in all DPR regions except the Haynesville region, which
had a brief productivity decline between 2013 and 2015.
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More effective drilling techniques, including the increasing prevalence of hydraulic fracturing
and horizontal drilling, have increased initial production rates.
In particular, the injection of more proppant—sand or similar particulate material suspended in water
or other fluid—during the hydraulic fracturing process and the ability to drill longer horizontal well
components (also known as laterals) have improved well productivity.
Source: U.S. Energy Information Administration, Drilling Productivity Report
Since 2007, gross natural gas production from the Appalachia and Haynesville DPR natural gas
regions has grown at an average annual rate of 20%. In addition to rapid growth of natural gas
production from these natural gas regions,
production of associated natural gas in the Permian, Eagle Ford, Bakken, Niobrara, and Anadarko
oil regions remains significant, accounting for 46% of the natural gas production from all DPR
regions. Overall, associated gas production accounted for 37% of U.S. natural gas gross
withdrawals in 2018.
Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase June 20-2020 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil boosted by OPEC+ cuts even as virus weighs on market
Reuters + Bloomberg + NewBase
Oil prices rose on Friday but pulled back sharply from early highs on concerns that continued spread
of the novel coronavirus could stall the United States’ economic rebound.
Brent crude rose 61 cents to $42.12 a barrel by 1:26 p.m. EDT (1726 GMT), after trading up to
$42.92 a barrel and then briefly turning negative. U.S. crude was 75 cents higher at $39.53 a barrel,
after earlier touching $40.49.
U.S. crude is up 9.2% so far this week, while Brent is up 9%.
Crude benchmarks followed other assets lower, pulling back from session highs after Boston
Federal Reserve President Eric Rosengren said more fiscal and monetary support for the U.S.
economy will likely be needed.
Oil price special
coverage
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Rosengren repeated his view that the U.S. unemployment rate will likely be “at double-digit levels”
at the end of 2020 and cautioned against reopening the economy too quickly after the end of
lockdowns aimed at containing the virus.
Heightening fears, Apple announced that it would re-close certain stores as the virus spread further.
“It’s spooked everyone in North and South Carolina,” said John Kilduff, partner at energy hedge
fund Again Capital in New York.
The highs early in the session came after Iraq and Kazakhstan, during a meeting of an OPEC+
panel on Thursday, pledged to comply better with oil cuts, sources said. This means curbs by the
Organization of the Petroleum Exporting Countries and allies, known as OPEC+, could deepen in
July.
In a further sign of market recovery, Brent on Thursday moved into backwardation, where oil for
immediate delivery costs more than supply later, for the first time since March. A premium for oil for
immediate delivery usually indicates tightening supply and encourages storage to be drawn down.
U.S. crude stockpiles hit another record this week, but fuel inventories fell.
The U.S. oil and gas rig count, an early indicator of future output, fell to a record low for a seventh
week in a row, dropping by 13 to 266 this week, according to data from energy services firm Baker
Hughes Co going back to 1940.
Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Oil Companies Shutting Off Drilling Rigs Across U.S. Shale
Oil exploration shrank for a 14th straight week in U.S. fields amid weak crude prices and skepticism
about a recovery in energy demand.
Drillers idled 10 oil rigs in onshore U.S. fields this week, bringing the total to 189, according to data
released Friday by Baker Hughes Co. Despite this week’s rise in crude prices to a three-month high
around $40 a barrel, they still are more than 35% below the January high.
In the Permian Basin, the oil deposit in West Texas and New Mexico that largely drove the past
decade’s surge in U.S. crude output, drillers shut off five rigs, bringing the total to 132, the lowest
since April 2016.
The rig tally, a widely watched data point that signals future production trends, dropped below 200
last week for the first time in more than a decade. Rather than drill new wells, some companies such
as Continental Resources Inc. plan to restart output that was suspended as crude prices tanked
earlier this year.
Meanwhile, natural gas drilling also slid. Explorers idled three gas rigs this week, pushing the
nationwide total to 75, a record low in data going back to 1987, according to Baker Hughes.
Oil Trading Giants Vitol, Trafigura See Rapid Demand Rebound
Global oil demand is recovering at a rapid pace this month as Europe and the U.S. join the initial
China-led upturn, according to two of the world’s biggest commodity trading houses.
With governments around the world easing lockdowns imposed to contain the coronavirus outbreak,
consumption of gasoline and diesel is increasing. Yet, jet fuel demand remains depressed, and
fears of a second wave of outbreaks are clouding the outlook, according to Vitol Group and Trafigura
Group.
Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Brent crude, the global benchmark, has stabilized near $40 a barrel this month, rebounding sharply
from a low of about $16 a barrel in April. Recovering consumption has also significantly improved
the differentials paid for real barrels of oil. In another sign of a stronger underlying market, the shape
of the price curve for Brent has flattened, suggesting growing near-term demand.
V-Shaped Rebound
Global oil demand is forecast to recover in the second half of 2020 after crashing in March and April
Source: International Energy Agency
Vitol, the world’s largest independent oil trader, estimates that global oil use is rising by 1.4 million
barrels a day every week in June, taking this month’s growth to more than 5.5 million barrels.
“Our short-term tracking of demand confirms a healthy demand recovery from the lows of April,”
Chief Economist Giovanni Serio said. “China led the recovery in April and May and in the past
couple of weeks, U.S. and European countries have followed.”
Trafigura said global oil demand is now about 10 million barrels a day below pre-crisis levels, a
significant improvement from the about 30 million barrels a day it estimated for a brief period in late
March and early April.
“Oil demand is creeping back,” said Ben Luckock, co-head of oil trading at the second-largest trader.
“Globally, we are probably back to 90% of normal levels, but the exact percentage varies with the
location.” Chinese oil demand is back to levels before the coronavirus, he said.
Vitol and Trafigura have a key vantage point over the global petroleum market as top oil traders.
Every day, the two trading houses handle nearly 15 million barrels of crude and refined products,
more than enough to meet the consumption of China.
Aramco’s View
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These views were backed up by Amin Nasser, Saudi Aramco’s chief executive officer, on Thursday.
Demand is currently at about 90 million barrels a day, or 10% lower than before the pandemic, he
said.
“The worst is definitely behind us,” he told reporters in a conference call. There are many forecasts
for demand to be near 96 million barrels a day in the second half of this year, he said.
Despite their relatively bullish tone for June, both Vitol and Trafigura are cautious about the potential
for a second virus wave later this year, particularly after the Chinese government imposed a partial
lockdown in Beijing following a local outbreak.
Trafigura was among the first to sound the alarm three months ago about the rapid drop in oil
consumption as the deadly public health crisis was unfolding. The precipitous drop in energy
demand in March and April sent West Texas Intermediate oil prices in New York below zero for the
first time in history. Prices have since recovered, but are still far below the levels of early this year.
New Equilibrium
With demand rebounding and the OPEC+ alliance improving compliance on production cuts,
Luckock said the oil market is finding a new equilibrium.
“At $40 a barrel, we can trade a few dollars higher and a few lower. But for the first time in a few
months you can see a range,” he said. “The market stability is here to stay.”
The physical market, where actual barrels of oil change hands, is also improving. For example,
Urals crude, Russia’s flagship export, is trading at a record high premium to Brent. Dated Brent, the
North Sea blend used to price the majority of the world’s oil, has more than tripled since late April,
according to traders monitoring S&P Global Platts.
“The physical market is strong,” Luckock said. “There’s good demand for North Sea crude and most
of the regional overhang of floating storage has cleared.”
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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NewBase Special Coverage
The Energy world - Special 01- June -2020
BP Statistical Review of World Energy 2020: a pivotal moment
Source: BP
BP has released the 69th annual edition of the BP Statistical Review of World Energy.
This year’s edition – which collects and analyses energy data for 2019 – highlights the global energy
trends emerging prior to the current Covid-19 pandemic.
While some aspects – such as the continuing strong growth in
renewables – offer encouragement that the world is moving onto a
more sustainable path, others – including continuing persistent
growth in carbon emissions – underline the scale of the challenge
for the world to reach net zero.
Introducing the Review, Bernard Looney, bp chief executive
officer, says:
'As the world emerges from the Covid-19 pandemic, it feels like we
are at a pivotal moment.
'Net zero can be achieved by 2050. The zero-carbon energies and
technologies exist today – the challenge is to use them at pace
and scale, and I remain optimistic that we can make this happen.
'For BP, the pandemic has only reinforced our commitment to our
ambition to become a net zero company by 2050 or sooner and to help the world get to net zero,
by highlighting both the fragility of our planet and the opportunities it provides to truly build back
better.'
Key findings from the bp Stats Review 2020 include:
 Growth in primary energy consumption slowed to 1.3% in 2019, less than half the rate of
growth the previous year (2.8%).
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 Carbon emissions from energy use grew by 0.5% in 2019, only partially unwinding the
unusually strong growth of 2.1% seen in 2018. Average annual growth in carbon emissions over
2018 and 2019 was greater than its 10-year average.
 Renewables contributed their largest increase in energy terms on record (3.2 exajoules).
They accounted for over 40% of the global growth in primary energy last year, more than any other
fuel. Their share in power generation (10.4%) also surpassed nuclear for the first time.
 Natural gas consumption increased by 2%, well below the exceptional growth seen in 2018,
but its share of primary energy still hit a record high (24.2%). Natural gas production rose by 3.4%,
buoyed by a record increase in liquefied natural gas exports (54 billion cubic metres).
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publication. However, no warranty is given to the accuracy of its content. Page 18
 Oil consumption grew by a below-average 0.9 million barrels per day (b/d), or 0.9%, while
demand for all liquid fuels, including biofuels, topped 100 million b/d for the first time.
 Coal’s share of primary energy fell to its lowest level in 16 years (27%), after consumption fell
by 0.6%, led by a sharp drop in OECD demand. However, coal remained the single largest source
of energy for power generation, accounting for over 36% of global power.
Spencer Dale, BPp chief economist, adds:
'Global energy markets have been severely disrupted by the pandemic. bp’s Statistical Review
highlights the key energy trends emerging before Covid-19 and I hope it will be a valuable source
of information as the world emerges from the pandemic and transitions towards net zero.'
Copyright © 2020 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 endeavors 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 19
Copyright © 2020 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 endeavors 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 20
Copyright © 2020 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 endeavors 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 21
Copyright © 2020 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 endeavors 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
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
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
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with 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 2020 K. Al Awadi
Copyright © 2020 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 endeavors 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 23
Copyright © 2020 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 endeavors 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 24
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New base energy news 20 june 2020 issue no. 1348 by senior editor khaled alawadi

  • 1. Copyright © 2020 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 endeavors 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 20 June 2020 - Issue No. 1348 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:Abu Dhabi's brings Oil and Gas industry chiefs together The National + NewBase With physical meetings suspended amid the pandemic Adnoc's virtual discussion on Tuesday provided a critical opportunity to share ideas, says Pulitzer prize winning author Dr Daniel Yergin The fifth edition of the Abu Dhabi CEO Roundtable was hosted by Dr Sultan Al Jaber, Minister of State and Group CEO of the Abu Dhabi National Oil Company. Courtesy Adnoc Abu Dhabi's ability to virtually convene the world's leading oil and gas sector chief executives has been instrumental amid the disruption caused to the industry by the pandemic crisis. At an online gathering last Tuesday, seventeen CEOs shared ideas about the challenges and opportunities ahead, including remote working and maintaining momentum on sustainability efforts. www.linkedin.com/in/khaled-al-awadi-38b995b
  • 2. Copyright © 2020 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 endeavors 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 2 The Abu Dhabi National Oil Company's annual CEO meetings are normally held in the UAE capital in November to coincide with Adipec, one of the biggest energy exhibitions and conferences in the world, which Adnoc also hosts. Last year for example, Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, attended the CEO gathering held at Adnoc's headquarters. However, Dr Sultan Al Jaber, Adnoc group chief executive and Minister of State, hosted this year's - the fifth - earlier than usual and online. Joining the discussion were:- Amin Nasser of Saudi Aramco, Patrick Pouyanné of France's Total, BP's Bernard Looney, Claudio Descalzi of Italy's Eni and Mukesh Ambani from India's Reliance Industries. Also joining were Takayuki Ueda of Japan's Inpex, Dai Houliang of China's CNPC, Nassef Sawiris of OCI, Philippe Boisseau from Cepsa, Vicki Hollub of Occidental Petroleum and Alfred Stern of Austria's Borealis. Vagit Alekperov of Russia's Lukoil, Liu Yijiang of ZheunHua Oil, Yongsoo Huh of Korea's GS Energy, Rainer Seele of OMV and Mario Mehren of Germany's Wintershall were also on the video call. The Fifth Abu Dhabi CEO Roundtable convened virtually, bringing together chief executives of global energy companies. Courtesy: Adnoc "Abu Dhabi has a demonstrated ability to look down the road and see future issues," Daniel Yergin, vice chairman of IHS Markit, the global research and information
  • 3. Copyright © 2020 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 endeavors 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 company, told The National. Dr Yergin is author of The Prize, for which he received the Pulitzer Prize, and The Quest. His new book, The New Map: Energy, Climate, and the Clash of Nations, comes out in September. "I write about that capacity in my new book. Adnoc has become a thought leader in the global industry, and that contributes to its competitive position and that of Abu Dhabi," said Dr Yergin, who has chaired the meetings since they began. The UAE is sixth highest in the world in terms of oil and gas reserves, according to US Energy Information Administration data - most of that comes from Abu Dhabi. While industry leaders do regularly come together to talk and share ideas at major conferences – such as Adipec, CeraWeek in Houston and the World Economic Forum in Davos – temporarily putting aside their competitive spirit, physical conferences have been cancelled in the wake of the pandemic. "Some of the chief executives are actually working from home. So the industry leaders found it very constructive to talk about how the world, the industry, and the future of work have been changed by this great disruption," said Dr Yergin of last week's CEO event. "All the plans and budgets that companies had at the beginning of 2020 have been overwhelmed by the turmoil of the coronavirus, the economic shutdown, and the collapse in demand and prices. So it was very significant for these industry leaders to be able to discuss how their companies have dealt with the virus and the learnings that have come out of it, and assess how the trends that were expected for the future have been changed and what that means for the industry." Fifth Abu Dhabi CEO Roundtable Convenes Virtually, Bringing Industry Together around Common Purpose of Ensuring Sustainable Global Energy Supplies.https://bit.ly/2zJayzy Martin Fraenkel, president of S&P Global Platts, a provider of energy and commodities information, agreed that it is more important than ever to maintain this connectivity. He told The National: "The energy industry has learned many things about maintaining efficient operations during lockdown, but we also know that we are an industry where simply maintaining the status quo will not deliver the solutions needed to address energy transition. For that, the industry needs to come together – even virtually – for live brainstorming to exchange knowledge and surface new ideas."
  • 4. Copyright © 2020 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 endeavors 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 4 Global oil demand is not expected to recover until 2022 amid a slowdown in air traffic as a result of the effects of the pandemic, according to the International Energy Agency. The agency forecasts that an investment of $1 trillion, equivalent to 0.7 per cent of global economic output, is needed over the next three years to sustainably rebuild economies. The crisis has also accelerated the transformation of the world economy to one based on lower carbon intensity, according to BP. Dr Yergin said, as companies explore ways to adapt, being able to discuss these trends with each other brings into sharper focus the challenges that lie ahead. "There’s no question that the world is changing and companies are adapting in different ways. Understanding the thinking behind the strategies and the choices that different companies are making brings important clarity at a time of change. For instance, there was keen interest in how the crisis will affect the sustainability agenda and what companies do about it," he said. #BP CEO Bernard Looney is looking forward to the upcoming virtual edition of the Abu Dhabi CEO Roundtable. Another topic of discussion was the future of the workplace. There were different viewpoints with "the thinking of one CEO as to why that company expects to have 25 per cent of its employees work at home permanently, while another says that it is important to get people back into the office as soon as possible." There have been numerous challenges in recent years, notably the oil price slump of 2016, which major companies have been very open about in how they are attempting to surmount them, at least in terms of top-level thinking. Abu Dhabi has helped to create a fruitful landscape for discourse. Along with being an occasion to host the dedicated gathering for top chief executives, Adipec has developed to become "a premier global industry and technology conference", Dr Yergin said. The event is a showcase for Abu Dhabi's position as a hub for innovation and progress. “Oil and Gas 4.0” was the theme for last November's week-long conference as upstream companies examined how best to navigate a bearish oil market, slowing global economic growth and demand concerns, as well as a much more prevalent environmental narrative.
  • 5. Copyright © 2020 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 endeavors 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 5 Oman Speed Plan to Build Middle East’s Biggest Oil-Tank Farm Bloomberg - Verity Ratcliffe Oman’s ambitious goal of building the biggest oil-storage facility in the Middle East is finally progressing, more than seven years after the Gulf sultanate announced the plan. Oman Tank Terminal Co. has almost finished constructing eight tanks to store crude for a new refinery near the town of Duqm on the Arabian Sea. It’s now pushing ahead with others that could be used by oil companies and traders, according to two people with knowledge of the project. That would increase Duqm’s capacity to at least 25 million barrels, according to OTTCO’s website. The Ras Markaz Crude Oil Park could provide an alternative for energy traders and exporters eager to avoid the Strait of Hormuz, a choke-point at the mouth of the Arabian Gulf that’s seen numerous flareups in recent years, including Iranian seizures of tankers. The Omani facility lies roughly 600 miles (966 kilometers) from the waterway. The United Arab Emirates port of Fujairah, the region’s largest hub with 14 million barrels of commercial crude- storage capacity, is less than 100 miles from Hormuz. “Crude storage that anybody can use outside the Strait of Hormuz, that can go either east or west, is probably a good thing,” said Alan Gelder, vice president for refining, chemicals and oil markets at consultant Wood Mackenzie Ltd. Iraq and Kuwait, a co-investor in the refinery, might see Duqm as an attractive place to park their crude outside the Gulf, he said.
  • 6. Copyright © 2020 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 endeavors 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 6 Oil storage shot to prominence in March and April when coronavirus lockdowns caused demand for energy to collapse. Traders and producers struggled to find enough space for their unwanted crude, with many turning tankers into makeshift, floating warehouses to absorb the unprecedented glut. Terminal operators at Fujairah had to turn down requests for storage in April because they’d run out. Leasing the tanks would provide extra revenue for Oman, whose finances have been battered this year by the virus and fall in oil prices. Its budget deficit is forecast to swell to 17% of gross domestic product in 2020, and the government has discussed asking other Gulf states for financial aid. Seven Years When OTTCO unveiled its plans in 2013, it said Ras Markaz would eventually be able to store 200 million barrels -- almost 15 times Fujairah’s capacity. The company and state-controlled parent firm OQ declined to comment on whether that was still the aim. The Duqm refinery is scheduled to start next year and the eight tanks will be able to hold 5.7 million barrels. They should be ready by the first quarter of 2021. OTTCO’s plans for the expanded tank farm still hinge on finding co-financiers as well as companies to book the storage. Excluding the refinery, Oman invested about $350 million in the first stage of the Duqm special economic zone, where Raz Markaz is located. Some three-quarters of that was funded by the Asian Infrastructure Investment Bank, whose largest shareholder is China. Oman sent almost 90% of its oil exports in May to China. OTTCO faces a more immediate challenge after Duqm was sealed off last week due to a spate of virus infections, further complicating planning and construction.
  • 7. Copyright © 2020 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 endeavors 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 7 UAE: Bilfinger Tebodin lands Abu Dhabi bulk liquid terminal deal Gulf Project + TradeArabia Global engineering and industrial services provider Bilfinger Tebodin Middle East has been awarded a contract to provide front end engineering design (Feed) and project management consultancy (PMC) services for the development of bulk liquid storage terminal in Khalifa Port in Abu Dhabi. The deal was awarded by Arabian Chemical Terminals (ACT), a pioneer in handling and distribution of bulk liquid products in Saudi Arabia. Established in 1985, the Saudi group has been responsible for commissioning the first ever-commercial liquid chemical bulk storage terminal in the kingdom. Over the years, ACT pioneered the efficient handling and distribution of bulk liquid products within the GCC region and has over 35 years’ experience in this field. On the contract win, Albert Vollema, the project director of Bilfinger Tebodin Middle East, said: "The greenfield project is considered to be strategic for ACT as well as Khalifa Port and wider region including Kizad and ZonesCorp since this will enhance the capabilities in handling and distribution of liquid bulk products and gases." "The project will benefit existing customers and attract new customers in the region seeking liquid bulk storage and distribution and we, at Bilfinger Tebodin Middle East, are excited to be part of this," he added. ACT General Manager at Abu Dhabi Kasper Castricum said Kizad was an integral part of Abu Dhabi’s Economic Vision 2030 that holds a roadmap for suitable growth of the emirate's economy. "We look forward to working with Bilfinger Tebodin Middle East as Kizad is embarking to set new standards for industrial zone infrastructure, environment, and operations and we are certain of Bilfinger’s expertise and knowledge to execute and deliver," he added.-
  • 8. Copyright © 2020 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 endeavors 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 8 India to dominate Asia’s new-build trunk pipeline additions by 2023 NewBase + Global Data India is expected to lead Asia’s oil and gas new-build trunk/pipeline length additions, contributing around 59 per cent of the continent’s planned and announced pipeline length additions between 2020 and 2024, according to GlobalData, a leading data and analytics company. The regional heavyweight is expected to develop a new-build pipeline length of 27,364 km by 2024, stated GlobalData in its latest report,‘Global Length and Capital Expenditure Outlook for Oil and Gas Pipelines, 2020−2024: Asia Leads Global Pipeline Growth.’ Soorya Tejomoortula, Oil and Gas Analyst at GlobalData, said: "In India, 48 new-build pipelines are likely to start operations within the next four years. Of this, 33 are planned pipelines with identified development plans and the remaining 15 are early-stage announced pipelines." "Kandla–Gorakhpur is the longest upcoming pipeline in the country with a length of 2,757km. It is a product pipeline expected to start operations in 2024," he stated. GlobalData expects China to be the second-highest contributor to the Asia’s new-build pipeline length additions by 2024 with a length of 10,609 km. Planned projects account for almost entire pipeline additions in the country with 10,567 km. The Power of Siberia 1 (China Section) is the longest upcoming pipeline in the country with a length of 3,371 km. It is a natural gas pipeline expected to start operations by 2023, according to GlobalData. Pakistan ranks third in contribution to the new-build pipeline length additions in the region by 2024 with a length of 2,711 km from eight upcoming pipelines. Of the total length, announced and planned pipelines are likely to contribute 1,480 km and 1,231 km, respectively, it added.-
  • 9. Copyright © 2020 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 endeavors 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 U.S.: N. Gas production efficiency continued to improve in 2019 Source: U.S. Energy Information Administration, Drilling Productivity Report The U.S. Energy Information Administration’s (EIA) latest Drilling Productivity Report (DPR) was updated on Monday, June 15. Analysis of underlying data on natural gas well efficiency shows how U.S. natural gas production increased in 2019 because, in part, of greater productivity of new wells drilled in shale and tight formations. Initial production rates for natural gas production from new wells in the DPR’s seven regions have generally increased since at least 2007. The average new well in the Haynesville, Permian, Eagle Ford, Niobrara, and Bakken regions in 2019 produced more natural gas than wells drilled in previous years in those same regions. This trend has persisted for 13 consecutive years in all DPR regions except the Haynesville region, which had a brief productivity decline between 2013 and 2015.
  • 10. Copyright © 2020 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 endeavors 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 10 More effective drilling techniques, including the increasing prevalence of hydraulic fracturing and horizontal drilling, have increased initial production rates. In particular, the injection of more proppant—sand or similar particulate material suspended in water or other fluid—during the hydraulic fracturing process and the ability to drill longer horizontal well components (also known as laterals) have improved well productivity. Source: U.S. Energy Information Administration, Drilling Productivity Report Since 2007, gross natural gas production from the Appalachia and Haynesville DPR natural gas regions has grown at an average annual rate of 20%. In addition to rapid growth of natural gas production from these natural gas regions, production of associated natural gas in the Permian, Eagle Ford, Bakken, Niobrara, and Anadarko oil regions remains significant, accounting for 46% of the natural gas production from all DPR regions. Overall, associated gas production accounted for 37% of U.S. natural gas gross withdrawals in 2018.
  • 11. Copyright © 2020 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 endeavors 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 11 NewBase June 20-2020 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Oil boosted by OPEC+ cuts even as virus weighs on market Reuters + Bloomberg + NewBase Oil prices rose on Friday but pulled back sharply from early highs on concerns that continued spread of the novel coronavirus could stall the United States’ economic rebound. Brent crude rose 61 cents to $42.12 a barrel by 1:26 p.m. EDT (1726 GMT), after trading up to $42.92 a barrel and then briefly turning negative. U.S. crude was 75 cents higher at $39.53 a barrel, after earlier touching $40.49. U.S. crude is up 9.2% so far this week, while Brent is up 9%. Crude benchmarks followed other assets lower, pulling back from session highs after Boston Federal Reserve President Eric Rosengren said more fiscal and monetary support for the U.S. economy will likely be needed. Oil price special coverage
  • 12. Copyright © 2020 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 endeavors 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 12 Rosengren repeated his view that the U.S. unemployment rate will likely be “at double-digit levels” at the end of 2020 and cautioned against reopening the economy too quickly after the end of lockdowns aimed at containing the virus. Heightening fears, Apple announced that it would re-close certain stores as the virus spread further. “It’s spooked everyone in North and South Carolina,” said John Kilduff, partner at energy hedge fund Again Capital in New York. The highs early in the session came after Iraq and Kazakhstan, during a meeting of an OPEC+ panel on Thursday, pledged to comply better with oil cuts, sources said. This means curbs by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, could deepen in July. In a further sign of market recovery, Brent on Thursday moved into backwardation, where oil for immediate delivery costs more than supply later, for the first time since March. A premium for oil for immediate delivery usually indicates tightening supply and encourages storage to be drawn down. U.S. crude stockpiles hit another record this week, but fuel inventories fell. The U.S. oil and gas rig count, an early indicator of future output, fell to a record low for a seventh week in a row, dropping by 13 to 266 this week, according to data from energy services firm Baker Hughes Co going back to 1940.
  • 13. Copyright © 2020 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 endeavors 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 13 Oil Companies Shutting Off Drilling Rigs Across U.S. Shale Oil exploration shrank for a 14th straight week in U.S. fields amid weak crude prices and skepticism about a recovery in energy demand. Drillers idled 10 oil rigs in onshore U.S. fields this week, bringing the total to 189, according to data released Friday by Baker Hughes Co. Despite this week’s rise in crude prices to a three-month high around $40 a barrel, they still are more than 35% below the January high. In the Permian Basin, the oil deposit in West Texas and New Mexico that largely drove the past decade’s surge in U.S. crude output, drillers shut off five rigs, bringing the total to 132, the lowest since April 2016. The rig tally, a widely watched data point that signals future production trends, dropped below 200 last week for the first time in more than a decade. Rather than drill new wells, some companies such as Continental Resources Inc. plan to restart output that was suspended as crude prices tanked earlier this year. Meanwhile, natural gas drilling also slid. Explorers idled three gas rigs this week, pushing the nationwide total to 75, a record low in data going back to 1987, according to Baker Hughes. Oil Trading Giants Vitol, Trafigura See Rapid Demand Rebound Global oil demand is recovering at a rapid pace this month as Europe and the U.S. join the initial China-led upturn, according to two of the world’s biggest commodity trading houses. With governments around the world easing lockdowns imposed to contain the coronavirus outbreak, consumption of gasoline and diesel is increasing. Yet, jet fuel demand remains depressed, and fears of a second wave of outbreaks are clouding the outlook, according to Vitol Group and Trafigura Group.
  • 14. Copyright © 2020 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 endeavors 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 14 Brent crude, the global benchmark, has stabilized near $40 a barrel this month, rebounding sharply from a low of about $16 a barrel in April. Recovering consumption has also significantly improved the differentials paid for real barrels of oil. In another sign of a stronger underlying market, the shape of the price curve for Brent has flattened, suggesting growing near-term demand. V-Shaped Rebound Global oil demand is forecast to recover in the second half of 2020 after crashing in March and April Source: International Energy Agency Vitol, the world’s largest independent oil trader, estimates that global oil use is rising by 1.4 million barrels a day every week in June, taking this month’s growth to more than 5.5 million barrels. “Our short-term tracking of demand confirms a healthy demand recovery from the lows of April,” Chief Economist Giovanni Serio said. “China led the recovery in April and May and in the past couple of weeks, U.S. and European countries have followed.” Trafigura said global oil demand is now about 10 million barrels a day below pre-crisis levels, a significant improvement from the about 30 million barrels a day it estimated for a brief period in late March and early April. “Oil demand is creeping back,” said Ben Luckock, co-head of oil trading at the second-largest trader. “Globally, we are probably back to 90% of normal levels, but the exact percentage varies with the location.” Chinese oil demand is back to levels before the coronavirus, he said. Vitol and Trafigura have a key vantage point over the global petroleum market as top oil traders. Every day, the two trading houses handle nearly 15 million barrels of crude and refined products, more than enough to meet the consumption of China. Aramco’s View
  • 15. Copyright © 2020 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 endeavors 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 These views were backed up by Amin Nasser, Saudi Aramco’s chief executive officer, on Thursday. Demand is currently at about 90 million barrels a day, or 10% lower than before the pandemic, he said. “The worst is definitely behind us,” he told reporters in a conference call. There are many forecasts for demand to be near 96 million barrels a day in the second half of this year, he said. Despite their relatively bullish tone for June, both Vitol and Trafigura are cautious about the potential for a second virus wave later this year, particularly after the Chinese government imposed a partial lockdown in Beijing following a local outbreak. Trafigura was among the first to sound the alarm three months ago about the rapid drop in oil consumption as the deadly public health crisis was unfolding. The precipitous drop in energy demand in March and April sent West Texas Intermediate oil prices in New York below zero for the first time in history. Prices have since recovered, but are still far below the levels of early this year. New Equilibrium With demand rebounding and the OPEC+ alliance improving compliance on production cuts, Luckock said the oil market is finding a new equilibrium. “At $40 a barrel, we can trade a few dollars higher and a few lower. But for the first time in a few months you can see a range,” he said. “The market stability is here to stay.” The physical market, where actual barrels of oil change hands, is also improving. For example, Urals crude, Russia’s flagship export, is trading at a record high premium to Brent. Dated Brent, the North Sea blend used to price the majority of the world’s oil, has more than tripled since late April, according to traders monitoring S&P Global Platts. “The physical market is strong,” Luckock said. “There’s good demand for North Sea crude and most of the regional overhang of floating storage has cleared.”
  • 16. Copyright © 2020 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 endeavors 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 16 NewBase Special Coverage The Energy world - Special 01- June -2020 BP Statistical Review of World Energy 2020: a pivotal moment Source: BP BP has released the 69th annual edition of the BP Statistical Review of World Energy. This year’s edition – which collects and analyses energy data for 2019 – highlights the global energy trends emerging prior to the current Covid-19 pandemic. While some aspects – such as the continuing strong growth in renewables – offer encouragement that the world is moving onto a more sustainable path, others – including continuing persistent growth in carbon emissions – underline the scale of the challenge for the world to reach net zero. Introducing the Review, Bernard Looney, bp chief executive officer, says: 'As the world emerges from the Covid-19 pandemic, it feels like we are at a pivotal moment. 'Net zero can be achieved by 2050. The zero-carbon energies and technologies exist today – the challenge is to use them at pace and scale, and I remain optimistic that we can make this happen. 'For BP, the pandemic has only reinforced our commitment to our ambition to become a net zero company by 2050 or sooner and to help the world get to net zero, by highlighting both the fragility of our planet and the opportunities it provides to truly build back better.' Key findings from the bp Stats Review 2020 include:  Growth in primary energy consumption slowed to 1.3% in 2019, less than half the rate of growth the previous year (2.8%).
  • 17. Copyright © 2020 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 endeavors 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 17  Carbon emissions from energy use grew by 0.5% in 2019, only partially unwinding the unusually strong growth of 2.1% seen in 2018. Average annual growth in carbon emissions over 2018 and 2019 was greater than its 10-year average.  Renewables contributed their largest increase in energy terms on record (3.2 exajoules). They accounted for over 40% of the global growth in primary energy last year, more than any other fuel. Their share in power generation (10.4%) also surpassed nuclear for the first time.  Natural gas consumption increased by 2%, well below the exceptional growth seen in 2018, but its share of primary energy still hit a record high (24.2%). Natural gas production rose by 3.4%, buoyed by a record increase in liquefied natural gas exports (54 billion cubic metres).
  • 18. Copyright © 2020 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 endeavors 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 18  Oil consumption grew by a below-average 0.9 million barrels per day (b/d), or 0.9%, while demand for all liquid fuels, including biofuels, topped 100 million b/d for the first time.  Coal’s share of primary energy fell to its lowest level in 16 years (27%), after consumption fell by 0.6%, led by a sharp drop in OECD demand. However, coal remained the single largest source of energy for power generation, accounting for over 36% of global power. Spencer Dale, BPp chief economist, adds: 'Global energy markets have been severely disrupted by the pandemic. bp’s Statistical Review highlights the key energy trends emerging before Covid-19 and I hope it will be a valuable source of information as the world emerges from the pandemic and transitions towards net zero.'
  • 19. Copyright © 2020 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 endeavors 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 19
  • 20. Copyright © 2020 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 endeavors 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 20
  • 21. Copyright © 2020 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 endeavors 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 21
  • 22. Copyright © 2020 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 endeavors 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 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE The Editor :”Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced daily (Sunday to Thursday) and sponsored by Hawk Energy Service – Dubai, UAE. 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 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with 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 2020 K. Al Awadi
  • 23. Copyright © 2020 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 endeavors 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 23
  • 24. Copyright © 2020 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 endeavors 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 24 For Your Recruitments needs and Top Talents, please seek our approved agents below