New base energy news 25 febuary 2019 issue no 1232 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 25 February 2019 - Issue No. 1232 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Adnoc, KKR and BlackRock brought a global infrastructure
investment approach to the region
The National -Jennifer Gnana + NewBase
Adnoc, KKR and BlackRock have entered into a landmark partnership agreement over some of the
Abu Dhabi firm’s crude oil pipeline assets, which will be leased to a vehicle owned by Adnoc and
the two asset managers for 23 years.
Adnoc receives a $4 billion upfront payment as part of the transaction and also retains absolute
sovereignty and management of the pipelines. This is the first time that leading, global institutional
investors have deployed capital in 'midstream' infrastructure assets, in the UAE.
Midstream refers to one of the three stages of the oil and gas industry that includes processing,
storing, transporting and marketing oil and gas. The deal is attractive because of Adnoc's high-
levels of proven reserves and production, as well as contractual minimums in place. It can deliver
downside-protection and long-term cash flows to investors.
As part of a 23-year lease deal, the state-owned oil and gas producer will receive an upfront
payment of $4 billion BlackRock, the world’s largest asset manager, and private equity firm KKR &
Co are investing $4 billion (Dh14.69bn) in the Abu Dhabi National Oil Company's pipeline
infrastructure, as part of a long-term agreement.

The state-owned oil and gas producer will receive the $4bn upfront from the two companies, while
18 of Adnoc's pipelines, totalling 750 kilometres in length and with a capacity of 13 million barrels
per day, will be leased for 23 years through a special purpose vehicle (SPV) created for the
transaction.
The agreement marks the first time that leading international financial institutions are able to make
investments related to the company's midstream assets and follows a competitive selection process
by Adnoc. As part of the agreement, Adnoc will retain absolute sovereignty and management of
the pipelines, which transport stabilised crude and condensate from its onshore and offshore fields
to export and refining facilities.
The SPV – called Adnoc Oil Pipelines – will receive a tariff from the state-owned company for its
share of crude and condensate transported through the pipelines. Minimum volume commitments
are also in place.
Adnoc Oil Pipelines will be majority owned by Adnoc, which will collect 60 per cent of the revenue
during the lease period. The remaining 40 per cent in the vehicle will be held collectively by a
consortium of funds managed by BlackRock and KKR.
The tie-up with BlackRock and KKR will align the long-term interests of all three parties. It is also
part of Adnoc's broader push to make the company's business more commercially focused, it said
on Sunday.
The partnership "paves the way for further significant foreign direct investment in the UAE," said Dr
Sultan Al Jaber, Minister of State and Adnoc Group chief executive.

Additionally, Adnoc said it is "laying the groundwork" for more infrastructure deals with institutional
investors and has created a wholly owned unit, under which all of its pipeline interests will be held.
This unit will also function as the
platform for any future deals.
"We are creating a range of attractive
opportunities for global and regional
institutional investors to partner and
invest alongside Adnoc to enhance
value from our sizeable infrastructure
base, drawing on our expertise in
structuring and packaging value-
enhancing partnership programmes
that preserve Abu Dhabi’s ownership
and control of its assets," said Dr Al
Jaber.
Adnoc, which produces much of the
UAE's oil, has embarked on an
increasingly commercial business strategy since early 2016, when Dr Al Jaber became chief
executive. The group has listed a stake in its fuel retail arm and positioned itself to leverage more
value with the addition of downstream capacities at home and abroad. It has also brought outside
partners –Italy's Eni and Austria's OMV – into its refining subsidiary.
The tie-up with BlackRock and KKR comes a week after Fitch rated Adnoc as the most creditworthy
oil and gas player globally. The transaction, which awaits regulatory approvals and customary
closing conditions, is expected to be finalised in the third quarter of 2019, Adnoc said.
KKR will make what is its first direct investment in the region through its $7.4bn Global Infrastructure
Investors Fund.
The New York-headquartered company has been picking up pipeline assets in the north and central
Americas, including in the Gulf of Mexico, DJ Basin, Canada's British Colombia and Alberta Montney
regions, as well as Mexico's Bay of Campeche.
"We have created an innovative core midstream infrastructure platform alongside Adnoc and
BlackRock that can be a catalyst for further foreign investment and broader economic
transformation in the United Arab Emirates. With this transaction as a precedent, we believe there
is substantial potential to do even more," said Henry Kravis, KKR's co-chairman and co-chief
executive.
BlackRock, which has almost $6 trillion in assets under management, will be investing through its
third Global Energy & Power Infrastructure Fund.
"This transaction reflects our strong commitment to the UAE and the Middle East more
broadly. Public-private partnerships like the one we have forged with Adnoc will be critical
to the continued growth of the region, and we look forward to continuing to participate in
such partnerships in the future," said Larry Fink, BlackRock's chairman and chief
executive.
Adnoc's financial advisors on the deal included Bank of America Merrill Lynch and JP
Morgan, while Moelis & Company acted as an independent financial advisor.

What is midstream?
Midstream is the segment of the energy value chain that accounts for the transportation and storage
of crude, related product and other liquids. It is an integral part of the energy ecosystem as it links
the production of oil with export or refining facilities.
Why are midstream assets so attractive?
Oil, gas and product pipelines are laid over hundreds of kilometres of land or water. This kind of
critical infrastructure is relatively straightforward to monetise. The operating company brings on
outside investors for all or parts of the network and pays tariffs for the volumes of crude and product
that will be transported via the pipelines. In the case of Adnoc's deal with BlackRock and KKR, the
difference is that the infrastructure is not being sold but instead leased over a long period.
Regardless of the specific structure of this deal, according to KKR, it is aligned with its "strategy of
investing in essential midstream infrastructure backed by proven reserves and production, and with
long-term cash flow visibility”.
Why have producers in the region not opened up their midstream assets before?
Oil producers in the Middle East have closely held all aspects of their value chain as an integral part
of their sovereignty. Creation of national oil companies closely matched the formation of nation
states in the Middle East, with these state-backed producers viewed largely as champions of
economic might of the region as a whole.
Midstream assets are also highly sensitive. Given their geographic spread, they are more vulnerable
to natural, technical as well as security risks than exploration, production and refining facilities.
Hence, Adnoc has not sold any or part of its pipelines but instead has agreed to lease the assets
long-term, which means it retains ownership and management. BlackRock's chief executive Larry
Fink made it clear that his company's involvement in the deal with Adnoc reflects a "strong
commitment to the UAE and the Middle East more broadly". Such opportunities allow for for
international investors to access the region's oil and gas sector on a purely commercial basis.
"I have been proud to have spent many years building relationships in the region and believe that
the economic transformation in the UAE represents attractive growth opportunities for investors from
around the world to participate in the economic growth of the region," he said.
Why has Adnoc decided to invite foreign partners to invest in its midstream assets?
According to Adnoc Group chief executive Dr Sultan Al Jaber, “this landmark infrastructure
transaction is a clear example of how we are unlocking and optimising value from our assets through
the smarter origination and more sophisticated structuring of our transactions and partnerships, as
well as attracting the world’s premier institutional investors."
Since 2016, Adnoc has been transformed into a more commercially-driven entity and is evolving
into an integrated energy player. The company has consolidated its various units under a single
brand umbrella, floated a 10 per cent stake in its fuel retail arm and earlier this year invited energy
majors Eni and OMV to take a 35 per cent stake in its refining unit, for example.
The decision to open up pipeline assets comes from a similar drive to engage foreign investor capital
to generate greater efficiencies in its value chain. KKR said that Abu Dhabi's leadership "has
articulated a vision for economic transformation in Abu Dhabi across sectors, with an important role
for foreign investment to bring in capital, ideas, and technology" and that its investment "can be an
important signal to the international investment community that this transformation is taking place".
How has Adnoc retained sovereignty over the assets in the KKR-BlackRock deal?

The national oil company, whether inviting investment upstream - for exploration and production of
oil and gas - or downstream, which includes refining and petrochemicals, has largely stuck to a
strategy of retaining a 60 per cent majority stakeholder interest across assets. In this case, it will
own the majority of the special purpose vehicle which is leasing out the pipelines. The remaining 40
per cent will be held by BlackRock and KKR.
Is this the first large pipeline-related transaction for Adnoc?
Adnoc subsidiary Abu Dhabi Crude Oil Pipeline (Adcop) in 2017 issued a $3bn bond, its first ever
and one of the region’s largest-ever non-sovereign bond offerings. The bond received more than
$11bn in orders, and was an early indication of the company leaning towards optimising new capital
structures to run its business.
How will Adnoc use the funds from its latest pipeline deal?
According to the company, both the upfront and long-term proceeds from the deal could be used
either for future projects or as part of dividends to the Abu Dhabi government - its sole shareholder.
This typically depends on its ongoing capex and opex needs.
However, the company noted that deals such as the bond, as well as the pipeline transaction, will
help it mitigate some of the cyclical nature of the sector such as volatile oil prices. Such deals also
help the government in terms of its own fiscal planning as Adnoc is better able to predict - in the
near-term at least - what it is likely to be able to pay to its shareholder. Dr Al Jaber said that the
pipelines deal "demonstrates how Adnoc’s wider transformation and value creation efforts are
generating new, more diversified and predicable future sources of revenue and value for Abu Dhabi
and the UAE".
Why are BlackRock and KKR investing in pipeline assets in Abu Dhabi?
BlackRock, the world’s largest asset manager and New York-based private equity firm KKR are
both investing in the Adnoc assets through their global infrastructure funds. The UAE’s energy
infrastructure is viewed as a stable, long-term and risk-free by global investors.
For institutional investors such as BlackRock and KKR, Abu Dhabi energy assets represent
consistent income. There is also the opportunity for growth as Adnoc is planning to increase
production capacity over the next five years and to unlock its new hydrocarbon discoveries.
Will there be more such deals in the future?
Adnoc has created an infrastructure unit to hold all of its pipeline interests. In time, this unit is
expected to add further select Adnoc infrastructure assets and become the key vehicle for a new
and innovative investment platform. While this is KKR’s first direct investment in the region, it said
that there is the potential to do more. "KKR’s partnership with Adnoc demonstrates the opportunity
for value-add foreign private investment across different sectors in the UAE,” the firm said.
What does this deal mean more broadly for the UAE investment landscape?
All three parties believe that there is the opportunity to do more in the UAE. Dr Al Jaber said that
the transaction underlines how Adnoc is "accelerating its role as a driver of long term and
sustainable FDI into the UAE". BlackRock's Mr Fink said that "public-private partnerships like the
one we have forged with Adnoc will be critical to the continued growth of the region, and we look
forward to continuing to participate in such partnerships in the future.”

Saudi Arabia strikes $10 billion China PetroChem deal,
Reuters + NewBase
Saudi Crown Prince Mohammed bin Salman cemented a $10 billion deal for a refining and
petrochemical complex in China on Friday, meeting Chinese President Xi Jinping who urged joint
efforts to counter extremism and terror.
The Saudi delegation, including top executives from state-owned oil company Saudi Aramco,
arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20
billion in Pakistan and seek to make additional investments in India’s refining industry.
Saudi Arabia signed 35 economic cooperation agreements with China worth a total of $28 billion at
a joint investment forum during the visit, Saudi state news agency SPA said.
“China is a good friend and partner to Saudi Arabia,” President Xi Jinping told the crown prince in
front of reporters.
“The special nature of our bilateral relationship reflects the efforts you have made,” added Xi, who
has made stepping up China’s presence in the Middle East a key foreign policy objective, despite
its traditional low-key role there.
The crown prince said Saudi Arabia’s relations with China dated back “a very long time in the past”.
“In the hundreds, even thousands, of years, the interactions between the sides have been friendly.
Over such a long period of exchanges with China, we have never experienced any problems with
China,” he said.

Crown Prince Mohammed, who has come under fire in the West following the murder of Saudi
journalist Jamal Khashoggi at the kingdom’s Istanbul consulate in October, said Saudi Arabia saw
great opportunities with China.
“The Silk Road initiative and China’s strategic orientation are very much in line with the kingdom’s
Vision 2030,” he said according to SPA, referring to Saudi Arabia’s sweeping economic reform
program.
Trade between the countries increased by 32 percent last year, he said. Saudi Arabia also said it
was working to add Chinese to the curriculum in Saudi schools and universities.
“The introduction of Chinese to the curriculum is an important step toward the opening of new
horizons for students,” the government said in a statement. China has had to step carefully in
relations with Riyadh, since Beijing also has close ties with Saudi Arabia’s regional foe, Iran.
China is also wary of criticism from Muslim countries about its camps in the heavily Muslim far
western region of Xinjiang, which the government says are for de-radicalisation purposes and rights
groups call internment camps.
Xi told the crown prince the two countries must strengthen international cooperation on de-
radicalisation to “prevent the infiltration and spread of extremist thinking”, Chinese state television
said.
Saudi Arabia respected and supported China’s right to protect its own security and take counter-
terror and de-radicalisation steps, the crown prince told Xi, according to the same report, and was
willing to increase cooperation.
Meeting the crown prince earlier on Friday, Chinese Vice Premier Han Zheng said the two countries
should enhance exchanges on their experiences in de-radicalisation, China’s official Xinhua news
agency said in a separate report.

Chinese state media made no direct mention of Xinjiang in their stories on the crown prince’s
meetings.
DEALS SIGNED
Aramco agreed to form a joint venture with Chinese defense conglomerate Norinco to develop a
refining and petrochemical complex in the northeastern Chinese city of Panjin, saying the project
was worth more than $10 billion.
The partners would form a company called Huajin Aramco Petrochemical Co as part of a project
that would include a 300,000-barrels per day (bpd) refinery with a 1.5-million-metric tonnes per year
ethylene cracker, Aramco said.
Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to
start operations in 2024.
The investments could help Saudi Arabia regain its place as the top oil exporter to China, a position
Russia has held for the last three years. Saudi Aramco is set to boost market share by signing
supply deals with non-state Chinese refiners.
Aramco also signed an agreement to buy a 9 percent stake in Zhejiang Petrochemical, Saudi state
news agency SPA said. This formalized a previously announced plan to gain a stake in a 400,000-
bpd refinery and petrochemicals complex in Zhoushan, south of Shanghai.
China sees “enormous potential” in Saudi Arabia’s economy and wants more high-tech cooperation,
State Councillor Wang Yi, the Chinese government’s top diplomat, said on Thursday. But China
was not seeking to play politics in the Middle East, the widely read state-run tabloid, the Global
Times, said in an editorial.
“China won’t be a geopolitical player in the Middle East. It has no enemies and can cooperate with
all countries in the region,” said the paper, published by the ruling Communist Party’s official
People’s Daily. “China’s increasing influence in the Middle East comes from pure friendly
cooperation. Such a partnership will be welcomed by more countries in the Middle East.”

Global LNG trade to rise 11 percent this year: Shell
Reuters + NewBase
Global liquefied natural gas (LNG) trade will rise 11 percent to 354 million tonnes this year as new
facilities increase supplies to Europe and Asia, Royal Dutch Shell said in an annual LNG report on
Monday. Shell, the largest buyer and seller of LNG in the world, said trade rose by 27 million tonnes
last year, with Chinese demand growth accounting for 16 million tonnes of those volumes.
Shell’s forecasts, which see LNG demand climbing to 384 million tonnes next year, reflect a
burgeoning industry with new production facilities opening in Australia, the United States and Russia
and more countries becoming importers by constructing receiving terminals.
Asia dominates the market with Japan remaining the top buyer. China became the second largest
in 2017 as demand soared due to a government-mandated push for power stations to switch from
coal to cleaner-burning gas to help reduce pollution.
Due to the uneven progress of developing liquefaction-export facilities on the one hand and
regasification-import terminals on the other, many analysts see the global market becoming
oversupplied if not this year then next year.
But most also see a supply crunch around the mid-2020s because, at the moment, there are not
enough liquefaction facilities being planned, financed and built. Such projects are underpinned by
long-term supply contracts struck years in advance by their operators. Between 2014 and 2017
buyers were signing shorter-duration contracts for smaller volumes, making financing difficult to
complete.
However, Shell said the duration of contracts signed last year had on average more than doubled
to 13 years. “A rebound in new long-term LNG contracting in 2018 could revive investment in
liquefaction projects,” Shell said. “Based on current demand projections, Shell still expects supplies
to tighten in mid-2020s.”
Spot trade amounted to 1,400 cargoes in 2018 which was close to 30 percent of the global market
compared to 25 percent in 2017, Shell said. Spot trade, the buying and selling of cargoes for
immediate delivery, signals a more flexible, mature market.

NewBase 25 February 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil Holds Near Three-Month High as U.S. Extends Truce With China
Bloomberg + Reuters + NewBase
International Brent crude oil futures were at $67.10 a barrel at 0947 GMT, down 2 cents, or 0.03
percent, from their last close. They ended Friday little changed after touching their highest since
Nov. 16 at $67.73 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $57.33 per barrel, up 7 cents, or 0.12
percent, from their last settlement. WTI futures climbed 0.5 percent on Friday, having marked their
highest since Nov. 16 at $57.81 a barrel.
Oil price special
coverage

Oil held gains above $57 a barrel as a U.S. move to extend a trade truce with China raised hopes
that the world’s two biggest economies would soon resolve their differences.
Futures in New York were little changed after rising 0.5 percent to a three-month high on Friday.
President Donald Trump said in a tweet he’ll delay a tariff increase on Chinese imports that was set
for March 1 after “substantial progress” in negotiations. Meanwhile, American drillers reduced the
number of working oil rigs for the first time in three weeks.
Oil has rallied about 26 percent this year as production curbs by OPEC and its allies eased concerns
over a supply glut. Prices are set to rally further as the output cuts and American sanctions on Iran
and Venezuela have caused a shortage of heavy crudes refiners rely on, said Russell Hardy, chief
executive officer of Vitol Group, the world’s largest energy trader. Still, record U.S. shale flows
threaten to cap gains.
“Oil markets are supported by progress in U.S.-China trade negotiations, which eased demand
concerns,” and Makiko Tsugata, a senior analyst at Mizuho Securities Co. in Tokyo. “Even as the
rig count fell, U.S. production is rising with shale-oil drilling becoming more efficient.”
West Texas Intermediate for April delivery fell 7 cents to $57.19 a barrel on the New York Mercantile
Exchange at 8:05 a.m. London time. The contract added 30 cents to $57.26 on Friday, the highest
close since Nov. 12.
Brent for April settlement was down 16 cents at $66.96 a barrel on the London-based ICE Futures
Europe exchange. The contract rose 5 cents to $67.12 on Friday. The global benchmark crude was
at a $9.82 premium to WTI.
Asian stocks and currencies climbed Monday after Trump said Sunday on Twitter that “the U.S. has
made substantial progress in our trade talks with China on important structural issues including
intellectual property protection, technology transfer, agriculture, services, currency, and many other
issues.” U.S. Treasury Secretary Steven Mnuchin said Friday that a leaders’ meeting is being
tentatively planned for late March.

Oil rigs in the U.S. fell by four to 853 last week, according to figuresreleased Friday by oilfield-
services provider Baker Hughes. Still, the latest data from the Energy Information Administration
showed U.S. crude production rose to a record 12 million barrels a day in the week through Feb.
15. The agency forecasts average output will be 12.41 million barrels a year in 2019 and 13.2 million
next year, it said earlier this month.

NewBase Special Coverage
News Agencies News Release 25 February 2019
BP publishes its Energy Outlook 2019
Source: BP
The 2019 edition of BP’s Energy Outlook, published today, explores the key uncertainties that could
impact the shape of global energy markets out to 2040. The greatest uncertainties over this period
involve the need for more energy to support continued global economic growth and rising prosperity,
together with the need for a more rapid transition to a lower-carbon future.
These scenarios highlight the dual challenge that the world is facing. The Outlook also considers a
number of other issues including the possible impact of an escalation in trade disputes and the
implications of a significant tightening in the regulation of plastics.
Much of the narrative in the Outlook is based on its evolving transition scenario. This scenario and
the others considered in the Outlook are not predictions of what is likely to happen; instead, they
explore the possible implications of different judgements and assumptions.
In the ‘Evolving Transition’ scenario, which assumes that government policies, technologies and
societal preferences evolve in a manner and speed similar to the recent past:
 Global energy demand increases by around a third by 2040, driven by improvements in living
standards, particularly in India, China and across Asia.
 Energy consumed by industry and buildings accounts for around 75% of this increase in
overall energy demand, while growth in energy demand from transport slows sharply relative
to the past as gains in vehicle efficiency accelerate.
 The power sector uses around 75% of the increase in primary energy.

 85% of the growth in energy supply is generated through renewable energy and natural gas,
with renewables becoming the largest source of global power generation by 2040.
 The pace at which renewable energy penetrates the global energy system is faster than for
any fuel in history.
 Demand for oil grows in the first half of the Outlook period before gradually plateauing, while
global coal consumption remains broadly flat. Across all the scenarios considered in
the Outlook, significant levels of continued investment in new oil will be required to meet oil
demand in 2040.
 Global carbon emissions continue to rise, signalling the need for a comprehensive set of
policy measures to achieve a substantial reduction in carbon emissions.
The new Outlook was launched in London today by Spencer Dale, group chief economist, and Bob
Dudley, group chief executive.
'The Outlook again brings into sharp focus just how fast the world’s energy systems are changing,
and how the dual challenge of more energy with fewer emissions is framing the future. Meeting this
challenge will undoubtedly require many forms of energy to play a role,' said Bob Dudley.
'Predicting how this energy transition will evolve is a vast, complex challenge. In BP, we know the
outcome that’s needed, but we don’t know the exact path the transition will take. Our strategy offers
us the flexibility and agility we need to meet this uncertainty head on.'
'The world of energy is changing,' agrees Spencer Dale. 'Renewables and natural gas together
account for the great majority of the growth in primary energy. In our evolving transition scenario,
85% of new energy is lower carbon.'
Beyond the evolving transition scenario, the Outlook considers a number of additional scenarios.
Some of the key ones are outlined below.
More energy
More energy will be needed to support growth and enable billions of people to move from low to
middle incomes; this is explored in the more energy scenario.

There is a strong link between human progress and energy consumption; the UN Human
Development Index suggests that increases in energy consumption of up to around 100 gigajoules
(GJ) per head are associated with substantial increases in human development and well-being.
Today, around 80% of the world’s population live in countries where average energy consumption
is less than 100 GJ per head. In order to reduce that number to one-third of the population by 2040,
the world would require around 65% more energy than today, or 25% more energy than needed in
the evolving transition scenario.
The increase in energy required over and above the evolving transition scenario is roughly the
equivalent of China’s entire energy consumption in 2017.
Together with the more energy scenario, the Outlook also highlights the need for further action to
reduce carbon emissions. This is the dual challenge for the world – to provide more energy with
fewer emissions.
Rapid transition
The rapid transition scenario is the combination of analyses throughout the Outlook which brings
together in a single scenario the policy measures in separate lower carbon scenarios for industry
and buildings, transport and power.
Doing so results in around a 45% decline in carbon emissions by 2040 relative to current levels –
which is broadly in the middle of a sample of external projections with claim to be consistent with
meeting the Paris climate goals.
This fall reflects a combination of: gains in energy efficiency; a switch to lower-carbon fuels; material
use of CCUS; and, of particular importance in the power sector, a significant rise in the carbon
price.
The power sector is currently the single largest source of carbon emissions from energy use and it
is therefore critical that the world continues to seek ways to reduce emissions from this sector.
Reductions in carbon emissions from the transport industry in all scenarios to 2040 is relatively small
in comparison.

'Polices aimed at the power sector are central to achieving a material reduction in carbon emissions
over the next 20 years…most of the low-hanging fruit in terms of reducing carbon emissions is
outside of the transport sector,' said Dale.
Even in the rapid transition scenario, a significant level of carbon emissions remain in 2040. In order
to meet the Paris climate goals, in the second half of the century these remaining emissions would
need to be greatly reduced and offset with negative emissions. This year’s Outlook considers which
technologies and developments may play a central role in this reduction beyond 2040.
A key development would be a near-complete decarbonization of the power sector – requiring
greater use of renewables and CCUS in conjunction with natural gas – together with greater
electrification of end-use activities (including transport). For those end-uses that cannot be
electrified, other forms of low-carbon energy and energy carriers will be crucial, potentially including
hydrogen and bioenergy. Additionally, the importance of the circular economy and greater adoption
of carbon storage and removal techniques are highlighted.
Less globalization
International trade underpins economic growth and allows countries to diversify their source of
energy. In the less globalization scenario the Outlook explores the possible impact that escalating
trade disputes could have on the global energy system.
'The message from history is that concerns about energy security can have persistent, scarring
effects,' said Dale.
The scenario highlights how a reduction in openness and trade associated with an escalation in
trade disputes could reduce worldwide GDP and therefore energy demand. Moreover, increasing
concerns about energy security may cause countries to favour domestically-produced energy,
leading to a sharp reduction in energy trade. The greatest impact is on net energy exporters, who
suffer a material slowdown in the growth of oil and gas exports.

Single-use plastics ban
The single-largest projected source of oil demand growth over the next 20 years is from the non-
combusted use of liquid fuels in industry, particularly as a feedstock for petrochemicals, driven by
the increasing production of plastics. Growth of non-combusted demand in the evolving transition
scenario is, however, slower than in the past, reflecting the assumption that regulations governing
the use and recycling of plastics tighten materially over the next 20 years.
Given the heightening environmental concerns regarding single-use plastics, the Outlook also
considers a single-use plastics ban scenario, in which the regulation of plastics is tightened even
more quickly, culminating in a worldwide ban on the use of all single-use plastics from 2040
onwards.
In this scenario, oil demand rises more slowly than in
the evolving transition scenario. However, the Outlook
cautions that the full impact on energy growth and the
environment will depend on the alternative materials
that may be used in place of single-use plastics. A ban
on single-use plastics could result in an increase in
energy demand and carbon emissions without further
advances in alternative materials and the widespread
use of collection and reuse systems.

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 Feb. 2019 K. Al Awadi

New base energy news 25 febuary 2019 issue no 1232 by khaled al awadi

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to New base energy news 25 febuary 2019 issue no 1232 by khaled al awadi

Similar to New base energy news 25 febuary 2019 issue no 1232 by khaled al awadi (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base energy news 25 febuary 2019 issue no 1232 by khaled al awadi