New base energy news 24 april 2019 issue no 1241 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 24 April 2019 - Issue No. 1241 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: Dubai Electricity to generate Dh82bn energy savings by 2030
The National + NewBase
Dubai Electricity and Water Authority (Dewa) plans to generate energy savings of up Dh82 billion
by 2030 after retrofitting more than 30,000 buildings in the emirate.
"If you look at the retrofitting, we noticed that the savings [are] valued between 25 to 40 per cent,
so we wanted to be in the middle and calculated that as 30 per cent,” Waleed Salman, executive
vice president, business development and excellent at Dewa told The National.
The announcement comes amid growing interest in energy efficiency in the UAE and across the
Middle East as economies look to lower energy intensity and add cleaner forms of energy to their
grids.
Dubai has saved about Dh1.2bn over the past decade due to its efforts to conserve electricity and
water and plans to reduce carbon emissions by 16 per cent by 2021 as well as energy and water
use by 30 per cent by 2030, according to latest estimates from Dewa.
The utility aims to roll out a large number of retrofit projects and accrue energy savings of 182.6
kilowatt hours by 2030. The cumulative costs to drive Dubai’s efficiency programme up to 2030 are
estimated to be around Dh30bn.
A rendering of the third phase of the Mohammed bin Rashid
Al Maktoum solar park in Dubai. Courtesy: Masdar

Dewa also plans to deploy up to 554 photovoltaic panels on the rooftops of homes in the Dubai
exclave of Hatta and retrofit 2,092 facilities and buildings in emirate in partnership with Etihad Esco.
Etihad Esco, which manages large energy efficiency projects in the UAE and is known as a "Super
Esco", is currently executing 18 projects, including major retrofitting at Dubai International Airport
terminals one, two, three as well as concourse B.
The company is targeting
Dh500m worth of energy
savings by 2030 from
multimillion-dollar projects,
primarily from retrofitting
and solar rooftop
deployment. Etihad Esco
had originally set targets of
20 per cent energy savings
by 2021 and 30 per cent by
2030. Those initial targets
have already been
exceeded with plans
underway to revise targets,
according to the company.
The Super Esco is currently mulling rollout of an energy efficiency programme targeting industry,
starting with Dubai’s large logistics sector.

China group launches new shale development solution TradeArabia News
Service
Jereh Group, a leading Chinese oilfield equipment manufacturer, has unveiled a new electric
solution for shale gas development at Jereh headquarters in Yantai, China. The launch was
witnessed by over 130 clients, including representatives from CNPC, Sinopec, CNOOC as well as
international clients from Russia, Kuwait, Saudi Arabia, UAE and Oman. Also, the equipment start-
up ceremony was held onsite for demonstration.
China possesses the largest proved shale gas reserves in the world. However, it is difficult to extract
due to complicated geological conditions, a statement said. How to bring capacity in line with
increasing demand in a more safe, efficient and reliable way seems to be a common concern for
every oil and gas player. Equipment powered by electricity came into public's sight for a good
reason. It is believed to greatly reduce refuelling traffic and eliminate over 400 diesel deliveries, the
statement added.
With years of practice and innovation, Jereh successfully developed a full series of electric fracturing
fleet to help reduce cost and enhance the efficiency of shale gas development. Jereh's new solution
stands out due to its robust electric motor and Jereh patented JR5000QPN pump, enabling the
electric frac fleet to satisfy operations of large displacement, high pressure and long duration.
A power supply package is offered for users in locations with inadequate power grids or any kind of
power facilities. Compared with diesel fleets, the electric fracturing fleet is more economical and it
features compact structure and smaller footprint while reaching a power density of 134kw/t, the
highest among its counterparts.
In addition, the electric solution is environmental-friendly since it has low noise level of less than 85
dB and less lube leaking. Louis Li, executive vice president of Jereh Group, said: "As indicated in
13th Five-Year Plan, China plans to achieve shale gas production of 30 billion cu m in 2020.
Leveraging its capability throughout the industry chain, Jereh would like to join hands with all
customers on their way pursuing the ambitious goal. We believe China's shale boom is upon us."

U.S. petroleum product exports set record high in 2018
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
U.S. exports of total petroleum products set a record high in 2018, reaching an annual average of
5.6 million barrels per day (b/d), an increase of 366,000 b/d from 2017 levels. The three largest
petroleum product exports from the United States in 2018 were distillate, propane, and motor
gasoline.
U.S. exports of motor gasoline (including blending components) and propane reached record highs
in 2018, and exports of distillate reached their second-highest volume on record, following the high
set in 2017.
Total U.S. petroleum product exports set a record high in 2018 for the 16th consecutive year. From
2009 to 2013, distillate exports contributed the most to annual growth. However, from 2014 to 2018,
exports of hydrocarbon gas liquids, which include propane, drove U.S. petroleum product export
growth.
As U.S. crude oil production increased over the past decade, gross inputs into refineries also
increased. Petroleum products can be used domestically, exported, or put into inventory. In 2018,
record-high levels of U.S. crude oil production and refinery runs helped refiners export large
volumes of petroleum products, even with high levels of domestic demand.

Source: U.S. Energy Information Administration, Petroleum Supply Monthly
Despite an 80,000 b/d decrease in exports in 2018 from 2017, distillate remained the most exported
petroleum product in 2018, averaging 1.3 million b/d, or approximately 25% of U.S. refinery net
production. Distillate exports were still more than 100,000 b/d higher than the previous five-year
average (2013–2017). The United States exported distillate to 64 destinations in 2018, with the
largest volumes destined for Mexico.
Mexico received an average of 298,000 b/d, or 23% of U.S. distillate exports, increasing 42,000 b/d
from 2017. Mexico’s increasing exports were likely driven by the country’s refineries that continued
to operate below capacity in 2018, as reported by trade press. Brazil received the second-largest
share of distillate exported from the United States, averaging 151,000 b/d (12% of U.S. distillate
exports), down by 57,000 b/d from 2017. Chile, Peru, and the Netherlands comprise the remainder
of the top five recipients of U.S. distillate exports.

U.S. propane exports reached a record high of 972,000 b/d in 2018, surpassing the previous record
of 914,000 b/d set in 2017. Propane exports in 2018 were greater than motor gasoline exports for
the third consecutive year, and propane remained the second-largest U.S. petroleum product
export.
Unlike other U.S. petroleum product exports, which tend to stay in the Western Hemisphere,
significant volumes of U.S. propane often reach Asian markets. Three of the top five destinations
are in Asia. Propane is used in many Asian countries as a feedstock for producing ethylene and
propylene, which are building blocks for chemical and plastic manufacturing.
Japan received the largest share of U.S. propane exports, more than 258,000 b/d (or 7%) of total
U.S. propane exports, an increase of 48,000 b/d from 2017 volumes. Exports to Korea and the
Netherlands increased by 25,000 b/d and 21,000 b/d, respectively. However, exports to China fell
by 62,000 b/d, a 49% year-over-year decline. Mexico received the second-largest share of U.S.
propane exports in 2018 at an average of 131,000 b/d, which was down 7,000 b/d from 2017 levels.
U.S. exports of motor gasoline (including blending components) reached 44 destinations in 2018
and set a record high of 951,000 b/d, up 126,000 b/d from 2017 levels. This increase in exports
came despite high levels of domestic gasoline consumption, averaging 9.3 million b/d in 2018, only
slightly lower than the record-high level set in 2017.
U.S. refiner and blender net production of finished motor gasoline increased more than 100,000 b/d
to 10.1 million b/d in 2018, a record high, and helped contribute to the simultaneous high levels of
domestic consumption and export volumes.
The five largest shares of U.S. gasoline exports were all in the Americas. In 2018, Mexico received
529,000 b/d of U.S. gasoline exports, or 56% of total U.S. gasoline exports, which was 60,000 b/d
more than in 2017. Exports to Canada increased by 25,000 b/d, to average 62,000 b/d, or 6% of
U.S. gasoline exports in 2018.

NewBase 24 April 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil stable, supply still adequate despite sanctions & market tightening
Reuters + Bloomberg + NewBase
Oil prices slightly dropped today on Wednesday after a report allayed concerns about tightening
supply, ending a rally that took prices to their highest since early November on concerns that OPEC
output cuts and sanctions would take too much oil out of the market.
Brent crude futures were at $74.35 per barrel at 09:48 GMT, down 16 cents from their last close. It
was the benchmark’s first fall after three days of rises, but it is still set for its fifth consecutive weekly gain.
U.S. West Texas Intermediate (WTI) crude futures were at $65.89 per barrel, down 41 cents from
their previous settlement - not enough to steer them away from what is set to be their eighth week
of gains.
Oil price special
coverage

Crude oil prices for spot delivery rallied after the United States said on Monday it would end all
exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May
or face punitive action from Washington.
China, Iran’s biggest oil customer, has formally complained about the move.
The spot price surge has put the
Brent forward curve into steep
backwardation, in which prices for
later delivery are cheaper than for
prompt dispatch. The United
States has said it saw Saudi
Arabia as a partner to balance oil
markets.
“The (Saudi) kingdom will be relied
upon to work with other producers
to keep markets adequately
supplied,” PVM said in a note. But
some analysts say the market was
still fundamentally bullish.
“The factors that could lead to
higher prices are overwhelming,” said Carsten Fritsch at Commerzbank, adding a push towards $80
a barrel was more likely than a fall below $70.
Saudi Energy Minister Khalid al-Falih said on Wednesday its production in May will not vary greatly
from previous months.
He added that Saudi Arabia will aim to stick to its output quota fixed in a deal by the Organization
of the Petroleum Exporting Countries (OPEC), Russia and others, but that June numbers will be
determined in a couple of weeks depending on customers’ needs.
Crude oil prices for spot delivery rose to 2019 highs earlier in the week after the United States said
on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil
imports from Tehran from May or face punitive action from Washington.
The spot price surge has put the Brent forward curve into steep backwardation, in which prices for
later delivery are cheaper than for prompt dispatch.
Stephen Schork of the Schork Report energy newsletter, said the shift to backwardation in the past
four months was “a sign that the market’s underlying fundamentals have shifted away from a spot
market that is well supplied to a market where demand is beginning to overtake supply.”
U.S. sanctions against oil exporter Iran were introduced in November 2018, but Washington allowed
its largest buyers limited imports of crude for another half-year as an adjustment period.
With Iranian oil exports likely declining sharply from May as most countries bow to U.S. pressure,
global crude markets are expected to tighten in the short-run, Goldman Sachs and Barclays bank
said this week.
Despite the tight spot market, analysts said global oil markets remained adequately supplied for
now thanks to ample spare capacity from the Middle East-dominated Organization of the Petroleum
Exporting Countries (OPEC), Russia and also the United States.

“Others are more than able (and willing) to step into the void that will be left if and when Iran’s
exports drop down to zero, as the U.S. hopes,” said Matt Stanley, a broker with Starfuels in Dubai.
The International Energy Agency (IEA), a watchdog for oil consuming countries, said in a statement
on Tuesday that markets are “adequately supplied” and that “global spare production capacity
remains at comfortable levels.”
The biggest source of new oil supply comes from the United States, where crude oil production has
already risen by more than 2 million barrels per day (bpd) since early 2018 to a record of more than
12 million bpd early this year, making America the world’s biggest oil producer ahead of Russia and
Saudi Arabia.
“Total oil supplies from the United States are expected to grow by 1.6 million bpd this year,” the
IEA said.
In a sign of America’s rising oil market clout, former OPEC member and oil exporter Indonesia has
ordered its first crude cargo from the United States, formerly the top crude importer but now the
world’s biggest oil producer.

NewBase Special Coverage
News Agencies News Release 24 April 2019
New Oil and Gas Technology Roundup
by Hallum Cowell + NewBase
There has been a myriad of technological advancements in the oil and gas industry over the course
of last year. Largely, digitization has become the most prevalent trend and as such, many new
technologies have begun to focus on making complex tasks more efficient and cost effective.
Additionally, there have been various innovations in more advanced machinery. Here, we take a
look at some of the latest technology creating a buzz in oil and gas.
Autonomous Offshore Robot
After winning Total’s ARGOS challenge (Autonomous Robots for Gas and Oil Sites) in 2017, TU
Darmstadt from Germany and Austrian manufacturer Taurob have collaborated to produce this
autonomous offshore robot.
The robot’s 18-month trial, which started in April 2018 in the North Sea, marks the first time an
automated ground robot will work on a fully operational oil and gas installation. The robot is ATEX-
certified and is able to perform tasks such as visual inspections, reading dials and advanced
navigation around humans and obstacles.
Commenting on the machine, Dave Mackinnon, the head of technology and innovation for Total
E&P, said in a company statement that “we are on the cusp of delivering technology that will improve
safety, reduce costs and even prolong the life of North Sea operations”.
Jean-Michel Munoz, next-generation conventionals manager for Total S.A., added in a press
release that “implementing this technology on our sites will bring benefits in terms of operation safety
and cost optimization”.
Centurion 3
Iron Ocean in Dundee has collaborated with the Oil and Gas Innovation Centre (OGIC) and Heriot-
Watt University to create Centurion 3; an offshore survival system.
Centurion 3, which was unveiled in early 2019, is made up of three layers which produce heat when
exposed to cold water. The protective clothing is designed to be worn beneath a standard offshore
survival suit.

It is thought that Centurion 3 could increase
life expectancy by around ten minutes for
those who have fallen into cold water by
heating the material to just over body
temperature.
Commenting on the technology, Simon
Lamont, founder of Iron Ocean, wrote as part
of a press release that “I realized something
had to be done to protect workers from the
harsh elements of the North Sea in the event
of an offshore incident”.
Mhairi Begg, OGIC project manager added
in the same release, “when people think about innovations in oil and gas the focus is on engineering
technology… this project shows just how much potential there is for innovations to take place across
the whole industry including materials to benefit health and safety”.
Automated Drilling Control
Offshore drilling contractor Transocean signed a deal with Equinor in 2019 to install ADC
(automated drilling control) systems, called DEAL, on four of their high-specification harsh
environment rigs in Norway, as well as another semi-submersible rig which is expected to start in
Norwegian waters this summer.
DEAL has been made possible due to the collaboration of MHWirth, Nov and SEKAL. The new
technology is expected to decrease cost and increase efficiency through increased penetration rates

and the early detection of kick events. DEAL is in line with HSSC regulations and accepts various
third-party smart modules to enhance its functionality.
In a written statement emailed to Rigzone back in February, Transocean President and CEO Jeremy
Thigpen said, “the ADC upgrades advance our automation efforts and further enhances our
industry-leading fleet of high-specification, harsh environment semi-submersibles”.
Apps for Wearables
Eigen, in partnership with Lundin Norway, has developed an app that provides access to real-time
information via wearable devices.
Unveiled in May 2018, the technology is built
on Eigen's 'Ingenuity' platform -- a smart layer
that provides contextual linking on top of
existing systems.
“This new technology solution enables digital
working offshore, making critical information
available in real-time to those who need to use
it,” Murry Callander, CEO of Eigen, said in a
company statement back in May last year.
“The technology is a prime example of our
approach of rapid evolution of operational capability enabled with industry 4.0 technologies,” he
added.
Cloud Technology
ExxonMobil Corp. has partnered with Microsoft to expand its cloud technology as of February 2019.
Focusing on the Permian Basin, this new technology is expected to
increase net cash flow through the next ten years and enhance
operations efficiencies.
The technology uses integrated cloud systems to collect real-time data
from ExxonMobil’s real-world assets. The data will enable ExxonMobil to
make faster and better decisions on well completions, personnel
assignments and drilling optimization. The partnership should also help
with leak detection and repair times.
Staale Gjervik, senior vice-president of ExxonMobil’s XTO Energy Inc.,
wrote in a press release that “the unconventional business is fast-moving,
complex, and data-rich, which makes it well suited for the application of
digital technologies to strengthen our operations and help deliver greater
value”.
Mobile Technologies are Transforming Oil & Gas Production
The Shale Age is upon us, powered by new technologies that rapidly advance production and
reduce environmental risk. Growing numbers of O&G companies are using mobile apps to track
field operations, tapping social media to educate investors, and leveraging e-commerce to build
their brands.

According to a 2013 report by McKinsey Global Institute, “the pattern of growing energy scarcity
may be reversed for many decades” if unconventional reserves can be safely and cost-effectively
exploited.
At least 80 percent of industries involved in oil, metal and mineral extraction could adopt mobile and
internet technologies by 2025, according to the McKinsey report. At that level, potential economic
impact will exceed $100 billion annually.
The Digital Oilfield
Technology has ushered in dramatic advances in oil exploration and production over the past
decade. Microseismic imaging paved the way to the first combination of hydraulic fracturing and
horizontal drilling in Texas’ Barnett shale in 2005. The US government gave the industry a boost
with tax credits for companies willing to invest in shale exploration.
Today, the acceleration of digital technologies brings better results for the oilfield and the
environment. Mobile and Internet apps, along with data communications technologies are improving
safety, efficiencies, cost savings, regulatory and reporting systems. These convenient data mining
and sharing utilities provide critical connections between the many players involved — exploration
and production companies, midstream providers, governmental agencies and regulators.
Additionally new applications enable location tracking and optimal data capture for resource
planning and immediate control across an internal network or the Internet. The resultant data
compliation allows processes to be tracked over time, and longer range efficiencies identified and
optimized.
Results in Real-Time: Using Apps to Manage Water Resources
One example of how the oil and gas industry is using mobile technologies is managing water
resources associated with hydraulic fracturing. In a typical fracking operation, there are up to eight
million gallons of water, sand, and chemical additives injected into geological formations at high

pressures to release gas and/or oil held in formation. Popular new mobile apps track the movement
of the water and constantly monitor residual waste streams to minimize cost and improve
environmental safety.
These apps give operators a complete water accounting and cost perspective — tracking all the
sources and uses of the frac water, from where the water is hauled to how it’s used and stored in
for a given well completion. By tracking water logistics in a paperless environment, the apps reduce
human error and make it much easier to report data to regulatory agencies.
Mobile apps also minimize the cost and optimize efficiencies with water logistics. All data collected
by the app ties back to individual wells and their cost centers. In real time, operators can see how
much fresh or recycled water is being used on a given frac.
The operators become more open to using the treated water when they can closely track the
benefits and cost savings associated with reuse. Tasks including water hauling, water transfer,
storage, and job planning can all be tracked. Assets and time are managed, trucking idle time is
minimized and costs are lowered.
Logistically, water is pulled from a source that is closest to the ultimate destination, making the
overall process more efficient. Human error is eliminated in this process – no more incorrectly
inputting a number or well name, and trucking invoices are consistent with the assets used for the
job. Wells with complex ownership structures can easily have cost allocations broken down and
assigned to the proper AFE or LOE.
Environmental protection is a critical component of these new mobile apps. Increased regulations
and monitoring requirements are easier to meet, as the apps can track the residual waste streams
to ensure they are disposed of properly.
This automated process gives operators additional control,
with extensive tracking and documentation for proof of proper
disposal — and helps minimize environmental impact.
Additionally, the water reporting requirements of the myriad
regulatory authorities can be satisfied using the data gathered
by these apps. The data archive created provides historical
accuracy for long term validation of compliance and
environmental stewardship.
An Industry Adapts
O&G experts estimate that $8 billion will be spent on oil and
gas mobile apps by the year 2015. As more companies
embrace a mobile strategy, workflow transformations will
continue.
At the front lines, automation will complement the duties of truckers and field workers. Very little, if
any, data input will be required as the information can be gathered passively. Geofencing
technologies – which use Google Earth, GPS coordinates or radio frequencies to create a virtual

barrier or “geofence” – can be tied to particular well sites. The geofencing software transforms
paper-based O&G sites and can set up triggers, send instant text messages, and e-mail alerts for
specific activities occurring on location. Workflow is faster, worker efficiency improves, and human
errors are reduced.
GPS technologies have been used for many years in the trucking industry. The many trucks needed
in the oil and gas industry are now using similar GPS technologies to realize these benefits. The
data from the field is available instantly to the back office, allowing specific assets and activities to
be coded to a specific well – making it easier to perform accounting, billing, and regulatory reporting
functions. Paper manifests can be eliminated, reducing manpower requirements and human error,
while improving profitability to enhance the bottom line.
The same types of technologies that enable you to map your way to the nearest Starbucks™ and
track the safety of your teenage driver are now making it easier, safer and more cost-effective to
tap energy reserves. These technologies, including the next generation of mobile apps, will continue
to expand, improving process efficiencies and minimizing production costs.

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
Mobile: +97150-4822502
khdmohd@hawkenergy.net
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 2019 K. Al Awadi

New base energy news 24 april 2019 issue no 1241 by khaled al awadi

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