New base energy news issue 850 dated 15 may 2016

Copyright © 2015 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 Energy News 15 May 2016 - Issue No. 850 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: dnoc revamps leadership, sets new corporate regime
The National - Anthony McAuley
Minister of State and Abu Dhabi National Oil Company’s chief executive, Sultan Al Jaber,
has revamped Adnoc’s leadership and
announced a new corporate regime, as a
further signal that he intends to move
quickly to transform corporate culture at
the state oil company.
Changes at the top include Abdulaziz
Abdulla Alhajri, who has been named
director of Adnoc’s refining and
petrochemicals division, moving from
chief executive of Borouge, Adnoc’s joint
venture petrochemicals company with
Austria’s Borealis.
Omar Suwaina Al Suwaidi has been
tapped to lead the gas division, moving from his role as deputy director of planning and strategy.
The Adnoc directors are the top executive level under the chief executive and the two new
appointments join previously announced director of sales and marketing, Abdulla Salem Al
Dhaheri, and director of exploration and production, Abdul Munim Saif Al Kindy.
Adnoc also named new chiefs for six of its 18 operating units, including Adco and Adma-Opco, the
joint ventures in charge of the bulk of the emirate’s oil output.
“These new appointments … will help enhance our focus on the key pillars of performance,
profitability, efficiency and people," said Dr Al Jaber, referring to the “strategic pillars" he set out
soon after being named Adnoc’s chief executive in January.
The newly-appointed executives all come from within Adnoc and the widespread change is aimed
at elevating a generation of technocrats who have proved themselves running other companies or
projects within the group.
At the same time, Dr Al Jaber has told his top executives that there will be a new corporate regime
that will require them to operate as “active asset managers", which will entail holding the operating
company chiefs to account for meeting specific operational and financial targets.
The model will be akin to that used by private sector outfits like GE, or indeed some of the major
international oil companies, whereby operating company chiefs are called upon to deliver regular
reports on progress against a set of “key performance indicators" to ensure goals are met on a
tight schedule.

The new leadership “will play a fundamental role
in executing on our strategic imperatives of
creating a more profitable upstream business and
a more valuable downstream business, ensuring
more gas supply, and developing world-class
talent", Dr Al Jaber said, adding that safety and
operational integrity of the oil and gasfields will
remain key criteria.
The new regime is a departure from Adnoc’s
traditional “cash call" approach, where the
operating companies ran budgets more like
government bureaucracies. At the operating level,
Saif Ahmed Al Ghafli is named chief of Adco, the
main onshore oil company, which has a target of increasing output from 1.6 million barrels per day
at the end of 2014 to 1.8 million bpd by about 2018.
Mr Al Ghafli is considered to have done a good job bringing online last year the huge US$10
billion Shah sour gasfield project in his previous job as chief of Al Hosn, the joint venture with
Occidental Petroleum.
Shah ramped up gas production last year to target output of 1 billion standard cubic feet per day,
about half of which goes into the gas grid to meet 10 per cent of the UAE’s current demand. It also
broke new ground in terms of dealing with a world-record level of hydrogen sulphide, the by-
product of which is marketable sulphur.
Occidental’s new chief, Vicki Hollub, recently said the joint venture is now looking at increasing
output further.
Yasser Saeed Al Mazrouei is named the new chief of Adma-Opco, which runs a large portion of
the offshore oil production, with partners BP, Total and Jodco, which hold a collective 40 per cent
of the concession. Together with Zadco, the joint venture with ExxonMobil and Jodco, the overall
offshore target is to increase output from 1.4 million bpd to 1.7 million bpd.
While most of the executives being replaced were at or past retirement age, Adnoc executives
said the CEO wanted to move quickly to demonstrate to the company’s nearly 50,000 employees
that he is serious about implementing a “performance" culture, with promotion driven by results.
“It is a huge cultural shift," said an Adnoc senior executive, who did not wish to be named. “It’s not
like it is going to work overnight, where people say, ‘boom, I’m suddenly thinking that way’. But it
should be very clear now that Adnoc’s top executives are going to focus on performance."
Adnoc executives made it clear that the changes are not a precursor to plans for any privatisation,
in the manner that Saudi Arabia’s leaders have put a partial sale of state oil company Aramco on
the table. “That will never happen," said an insider, although he would not rule out a spinoff of
some downstream joint ventures at some point.
But the main objective of the moves is to create a culture at Abu Dhabi’s biggest employer which
drives innovation, entrepreneurship and other skills that the country has been looking to foster for
decades, with varying success. The more demanding regime, it is hoped, will create business-
minded leaders who can thrive both within Adnoc as well as fostering young talent who can
branch off and start new businesses outside the organisation.

Iraq oil projects face delays as companies resist spending cuts
Reuters – Ahmed rasheed
International oil firms have warned Iraq that projects to increase its crude output will be delayed if
the government insists on drastic spending cuts this year, a senior Iraqi oil official said on Friday.
Oil companies helping Iraq develop its massive oil fields effectively perform a role similar to oil
service firms in that they have to clear spending with the government each year. They are then
repaid with crude oil produced from existing fields.
The arrangement worked smoothly when oil prices were above $100 a barrel but since crude has
collapsed to $40 a barrel, Iraq has been struggling to find enough oil to repay the companies for
their investment.
Iraq relies on oil for nearly all its revenues and is spending heavily to fight Islamic State in its
northern and western provinces.
With its finances stretched, Iraq has asked foreign oil companies to rein in their budgets for
developing the country's oil resources for a second year in a row but the two sides have failed so
far to agree on spending levels.
The Iraqi government request was contained in Oil Ministry letters, seen by Reuters, to BP, Royal
Dutch Shell , Exxon Mobil, Eni, Lukoil and Petronas.

"There has been no
agreement so far with the
foreign companies on the
proposed budgets, and
that is causing delays in all
key oil field projects," said
the Iraqi official, adding
that the talks were
continuing.
The government has also
argued that prices for
goods and services have fallen steeply during the market downturn so oil companies should be
getting less.
Some companies, however, have complained that the proposed budgets may prevent them from
continuing operations in Iraq, the official said, giving no details. He said BP, Shell and Lukoil have
already objected to the proposed investment budgets.
Iraq's outgoing Oil Minister Adel Abdel Mahdi had said in February that the budget for foreign oil
company development costs had been revised down to just over $9 billion in 2016 from $23
billion, following complex negotiations.
Among OPEC members, Iraq's supply rose last year and output reached a record 4.775 million
barrels per day in January 2016.
SPENDING AND PRODUCTION TARGETS
According to a summary of Iraq's proposals seen by Reuters:
• BP has been asked to cut its 2016 budget to $2.48 billion and target output of 1.4 million
barrels per day (bpd) at the Rumaila field it operates. BP proposed a budget of $3.25 billion
for 2015, though the amount agreed with Iraq may have differed.
• Lukoil is expected to cut spending to $1.26 billion and aim for a production of 400,000 bpd
at the West Qurna 2 project. The Russian company proposed a 2015 budget of $2.1 billion.
• Eni should cut spending to $1.62 billion and aim for production of 351,000 bpd at the Zubair
field. The Italian firm said in February it would cut spending by 20 percent across the board
this year, without specifying the size of cuts in Iraq.
• ExxonMobil was asked to slash spending to $878 million and aim for output of 379,000 bpd
at the West Qurna 1 project. Last year, the U.S. company insisted on spending $1.8 billion.
• Shell should cut spending to $855 million and aim for a 200,000 bpd from the Majnoon
field. Last year, it proposed a budget of $1.5 billion.
• Petronas should reduce costs to $712 million and target production of 100,000 bpd from
the Garraf field.
The oil companies in question either declined to comment or had no immediate comment.

UK: Statoil, Statkraft, Masdar raise $1.9b for Dudgeon wind farm
Bloomberg + Gulf News + NewBase
One of the world’s biggest offshore wind farms, being developed off the U.K. coast, secured 1.3
billion pounds ($1.9 billion) in project refinancing six months after it started fundraising.
The 402-megawatt Dudgeon project, under construction off the north Norfolk coast, is the first
offshore wind farm to obtain financing under the U.K. government’s new “contract for difference”
system, according to a statement Thursday by Allen & Overy, a law firm advising the mandated
lead arranger.
The three-phase project, due to be commissioned in 2017, has a government contract to supply
energy at 150 pounds per megawatt hour that it won in April 2014.
The Dudgeon offshore wind farm reached financial close in September 2014, with financing from
owners Statoil ASA, Statkraft AS and Abu Dhabi’s Masdar. Now it has raised recourse financing to
fund the capital requirements of the project, according to the statement.
Project Confidence
“Closing such a significant phase of the project’s development so swiftly illustrates the energy
industry’s confidence in the long-term potential of offshore wind, and the increasing sophistication
of financing models available to the sector,” Halfdan Brustad, chairman of Dudgeon Offshore Wind
Ltd., said in a statement.
Statkraft will finance its 30 percent stake in the wind farm, while Statoil will finance a share of 17.5
percent, according to the statement.
Mandated lead arrangers comprise Bank of Tokyo-Mitsubishi UFJ; BNP Paribas Fortis SA; Credit
Agricole Corporate and Investment Bank; KfW IPEX-Bank GmbH; Mizuho Bank; Abbey National
Treasury Services Plc; Siemens Bank GmbH; Societe Generale; and Sumitomo Mitsui Banking
Corp.

Allen & Overy and Linklaters were legal advisers, while Societe Generale advised on financials,
SgurrEnergy was technical adviser and Aon and Willis was insurance adviser.
“Either Statkraft and Statoil think construction risk has fallen or the project has reached a point
that risk has been sufficiently dealt with,” said Keegan Kruger, an analyst at Bloomberg New
Energy Finance. “An increase in gearing ratio often indicates lower financial risk and if commercial
lenders are piling in, that is a sure sign it is.”

India:H-Energy to Build Eastern India's First Gas Pipeline
H-Energy Private Limited
H-Energy Private Limited will build eastern India’s first gas pipeline. The bids for Contai–
Dattapulia–Jajpur–Dhamra–Cuttack-Paradip natural gas pipeline were opened on May 12, 2016
by the pipeline regulatory authority (PNGRB) where H-Energy emerged as the winning bidder
amongst the four technically qualified
bidders, the company announced on
Friday.
The pipeline will span more than 715
kms and will connect important demand
centers in eastern Indian states West
Bengal and Odisha delivering gas to
major industrial consumers such as
refineries, petro-chemical units, fertilizer
units and power plants.
Further, the pipeline will help develop
city gas networks in major regions
across Eastern India such as Kolkata,
Khordha, and Cuttack. The pipeline will
also deliver re-gasified LNG to
customers in western Bangladesh near
Dattapulia at India-Bangladesh border.
“This will be the first ever natural gas
pipeline to be set up in this region which
was deprived of natural gas pipeline
infrastructure so far. As envisioned, this
development will act as a catalyst to
bring in the paradigm shift in the eastern
India and will be an imperative move towards connecting eastern region with the Indian gas
pipeline grid,” Darshan Hiranandani H-Energy chief executive said.
The formal process of authorization is expected to take another two weeks subsequent to which
H-Energy will be granted authorization to lay the pipeline. H-Energy plans to start construction
activities of the pipeline immediately after the award of authorization by the pipeline regulator to
meet the timeline of its East Coast project for supply of first gas to the customers in eastern India
by second quarter 2019.
H-Energy is in discussion with major international pipeline companies to bring in the latest
technology to help implement the pipeline laying process in a fast and efficient manner.
The Mumbai based company is also setting up a 3.5 MMTPA FSRU offshore state of West
Bengal. The tender for offshore FSRU will be announced soon and H-Energy plans to complete
the tender process by third quarter of 2016.
It has already entered into agreements with suppliers for supply of 1 MMTPA LNG on long term
basis which are backed by agreements already executed with downstream buyers. H-Energy will
further source around 1 MMTPA of additional LNG volumes on long and medium term basis, as
further agreements with downstream customers are executed.

Nigeria Oil Output Slumps Further as Exxon Pipeline Damaged
Bloomberg - Rupert Rowling
Nigeria’s oil production has dropped again as a third major crude-export facility was disrupted, this
time by accidental damage rather than militant attacks.
Exxon Mobil Corp. has declared force majeure -- a legal clause that allows it to stop deliveries
without breaching contracts -- on shipments of Qua Iboe, the company said in a statement Friday.
The Bonny Light and Forcados oil grades were already disrupted following militant attacks. The
three facilities ship more than 700,000 barrels a day.
“We expected more supply disruptions out of Nigeria this week, but the pace of new supply
problems from that country beats our expectations,” Olivier Jakob, managing director of consultant
Petromatrix GmbH, said in a note. Production may not be much above 1 million barrels a day, he
said.
A resurgence in militant attacks in Nigeria’s oil-producing region has cut output by as much as
600,000 barrels a day to 1.4 million a day and “massively diminished” the nation’s
income, Emmanuel Kachikwu, Nigeria’s minister of state for petroleum, said Thursday in a
broadcast on Lagos-based Channels Television, before the disruption to Qua Iboe. An armed
group calling itself the Niger Delta Avengers later warned of more attacks to come.

Brent crude has risen 5 percent this week to $47.64 a barrel as of 1:43 p.m. in London as supply
halts in Nigeria, wildfires in Canada’s oil-sands region and declining U.S. output combined to curb
a global surplus. The international benchmark has risen more than 70 percent since hitting a 12-
year low in January.
Attacks on oil infrastructure caused Nigerian production to drop to 1.69 million barrels a day last
month, the lowest in 20 years, according to data compiled by Bloomberg. The nation’s output
hasn’t fallen as low as 1.4 million barrels a day on a monthly-average basis since 1989, the data
show. The supply reduction is compounding economic problems caused by the slump in crude
prices.
A subsea pipeline linked to Qua Iboe was damaged by a drilling rig, Exxon said Thursday, without
giving an impact on shipments. Royal Dutch Shell Plc declared force majeure on exports of Bonny
Light crude Wednesday following the discovery of a leak on the Nembe Creek Trunk Line.
Attacks had already halted shipments from the Forcados terminal and the Okan oil platform, which
feeds into the Escravos export terminal. Nigeria deferred at least seven Escravos cargoes
scheduled to load in May and June, according to revised loading programs obtained by
Bloomberg on May 10.

China Processes Record Crude 10.93 MBD on Boost From
Independent Refiners
Bloomberg News
China processed record crude on a daily basis in April as the nation’s independent plants boosted
operations amid a surge in oil imports.
Crude refining in the world’s second-largest oil consumer increased 2.4 percent from a year earlier
to 44.75 million metric tons last month, or about 10.93 million barrels a day, according to
data released by the National Bureau of Statistics on Saturday. That’s up 1.2 percent from
the previous record of 10.8 million barrels a day in December.
Independent refineries, known as teapots, have been increasing runs after they were allowed to
import crude oil. The utilization rate at the plants in eastern Shandong province increased to 53
percent of capacity as of April 29, according to industry website Oilchem.net. That’s the highest
since at least August 2011, when Bloomberg started compiling the data.
“Teapot refineries have raised operation rates significantly this year,” Amy Sun, an analyst with
ICIS China, a Shanghai-based commodity researcher, said by phone. “This has resulted in much
higher oil processing than we expected in recent months.”
China’s inbound oil shipments in April rose 3.2 percent from the previous month to 7.96 million
barrels a day and near the February high. Crude imports through Shandong’s Qingdao port
surged to a record in March and accounted for about 30 percent of the country’s total.
China’s crude output fell 5.6 percent from a year earlier to 16.59 million tons (4.05 million barrels a
day), Saturday’s data showed. Natural gas production climbed 5.6 percent to 10.6 billion cubic
meters and coal output declined 11 percent to 268 million tons.

U.S. oil drillers cut rigs for 8th week to Oct 2009 lows: Baker Hughes
Reuters + NewBawse
U.S. oil drillers cut rigs for an eighth week in a row to the lowest level since October 2009, oil
services company Baker Hughes Inc said Friday, even with futures at six-month highs as some
energy firms focus on completing wells rather than drilling new ones.
Drillers cut 10 oil rigs in the week to May 13, bringing the total rig count down to 318, Baker
Hughes said in its closely followed report.
The number of U.S. oil rigs currently operating compares with the 660 rigs operating in the same
week a year ago. In 2015, drillers cut on average 18 oil rigs per week for a total of 963 for the
year, the biggest annual decline since at least 1988 amid the biggest rout in crude prices in a
generation.
Energy firms have sharply reduced oil and gas drilling since the collapse in crude markets began
in mid-2014 as U.S. crude futures fell from over $107 a barrel to hit a near 13-year low at around
$26 in February.
But with U.S. crude futures reaching a six-month high around $47 a barrel earlier this week, some
analysts forecast rig counts will stop declining soon and rise later this year as prices increase in
coming months.
U.S. crude futures were fetching nearly $48 for the balance of 2016 and over $49 for calendar
2017.
U.S. financial services firm Cowen & Co expects oil and natural gas land rigs to bottom near
current levels between 375 and 400 before increasing in the fourth quarter.
Land rigs have not gained in the Baker Hughes survey since August and fell further this week, by
seven to 384, according to the latest report.
Cowen had forecast on Thursday that land rigs rose seven in the week ended May 11, the first
weekly rise in land rigs since December. It added, however, it expected to see a muted impact, if
any, to the Baker Hughes land rig count due to "a week lag."

Some companies plan to focus more on (DUC) wells than drilling new ones.
Oasis Petroleum Inc, an independent U.S. oil and gas producer, said this week it planned to
spend more to complete drilled but uncompleted wells (DUCs) than on new drilling over the next
few quarters.
Oasis joined several other shale producers, like Pioneer Natural Resources Co and Hess Corp in
saying that it was likely start thinking about increasing its drilling activity when prices reach the
$50 to $60 range .

NewBase 15 May 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
WTI at 46.21 & Brent at 47.83, with U.S. energy bankruptcy wave surges
The wave of U.S. oil and gas bankruptcies surged past 60 this week, an ominous sign that the
recovery of crude prices to near $50 a barrel is too little, too late for small companies that are
running out of money.
On Friday, Exco Resources Inc, a Dallas-based company with a star-studded board, said it will
evaluate alternatives, including a restructuring in or out of court. Its shares fell 35 percent to 62
cents each.
Exco's notice capped off one of the heaviest weeks of bankruptcy filings since crude prices
nosedived from more than $100 a barrel in mid-2014.
Prices have
bounced back to
$46 a barrel from
February lows in
the mid-$20s, but
the futures market
shows investors do
not expect U.S.
benchmark crude
to rise above $50
for more than a
year.
That will not help
smaller producers
built for far higher prices. These companies have largely exhausted funding alternatives after
issuing more equity and debt, tapping second-lien loans and shedding assets over the last two
years to stay afloat as banks trimmed credit lines.
Some companies are in more acute distress, faced with the expiration of derivative contracts that
had allowed them to sell oil above market prices.
"Everybody was able to hold on for a while," said Gary Evans, former CEO of Magnum Hunter
Resources, which emerged from bankruptcy protection this week. "But once the hedges roll off
you can't support that debt."
Bankruptcy filers this week included Linn Energy LLC and Penn Virginia Corporation. Struggling
SandRidge Energy LLC, a former high flyer once led by legendary wildcatter Tom Ward, said it
would not be able to file quarterly results on time.
Oil price special
coverage

The number of U.S. energy bankruptcies is closing in on the staggering 68 filings seen during the
depths of the telecommunications sector bust of 2002 and 2003, according to Reuters data, the
law firm Haynes & Boone and bankruptcydata.com.
Linn's bankruptcy was the biggest among energy companies so far in this downturn, even though
the company is a modest producer of about 59,000 barrels of oil per day, and 607 million cubic
feet of gas per day.
Founded in 2003, Linn has about $10 billion in debt, about twice that of Samson Resources Corp
and Energy XXI Ltd, two of the largest oil and gas companies to file recently.
Linn was designed as a high-yield investment vehicle, which received beneficial tax treatment in
return for paying out the bulk of its profits to unitholders. Because of this structure, it took on
significant debt to grow through acquisitions.
Exco's warning showed that the crude price rout has not spared companies with highly
experienced management.
Exco has reported a loss for the last five quarters in a row. It has a number of big-name board
members including billionaire investor Wilbur Ross and executive chairman John Wilder, who
engineered the giant leveraged buyout of TXU.
Valued at about $495 million as of Thursday's stock market close, Exco had long-term debt of
$1.32 billion on March 31, according to a regulatory filing.
One probable outcome, as Exco said on Friday, may include getting rid of debt by having
debtholders become shareholders, possibly wiping out existing equity owners.
Penn Virginia's strategy is similar. "Once the restructuring is implemented, the Company will have
substantially less debt and a much stronger balance sheet," Penn Virginia's

Saudi Arabia and Bahrain See Low Oil Price Prompt Ratings Cut
Bloomberg - Sharon Cho
Middle Eastern oil producers including Saudi Arabia and Oman had their ratings downgraded by
Moody’s Investors Service because of a collapse in oil prices, according to a statement from the
credit-ratings agency on Saturday.
The long-term issuer rating on Saudi Arabia, the world’s biggest oil exporter, was downgraded to
A1 from Aa3 as lower oil prices may lead to a "material deterioration" in the nation’s credit profile.
Bahrain’s rating was reduced to Ba2 from Ba1 and Oman was cut to Baa1 from A3, while the
outlook for crude exporters including Abu Dhabi, Qatar and Kuwait were negative.
Brent crude, the global benchmark, is almost 40 percent lower than in November 2014, when
Saudi Arabia led a decision by the Organization of Petroleum Exporting Countries to keep
pumping to defend market share in the face of swelling global inventories. While demand from
emerging nations such as India was spotted in the first half of this year, further gains in oil
prices are likely to be limited by "brimming" stockpiles of crude and products, the Paris-based
adviser International Energy Agency said in a report on May 12.
"Lower oil prices have led to a material deterioration in Saudi Arabia’s credit profile," Moody’s said
in the statement. "A combination of lower growth, higher debt levels and smaller domestic and
external buffers leave the Kingdom less well positioned to weather future shocks."
LNG prices $4.65 MMBTU , per tick higher as supplies tighten
A liquefied natural gas tanker is berthed at Tokyo Electric Power Co’s (Tepco) Futtsu gas-fired
thermal power plant in Futtsu Chiba Prefecture, Japan. Asian liquefied natural gas (LNG) prices
firmed last week as supply growth from new and existing producers continued to frustrate
expectations, Reuters reported.
Traders said that liquidity was thin in Asia last week with prices for June delivery at $4.65 per
million British thermal units (mmBtu), compared with $4.55 per mmBtu last week. Spot LNG prices
for July delivery were seen at similar levels.
“Some buyers in Asia may be willing to pay a premium to an end-June cargo,” one trade source
said. There were a few bright spots amid generally lacklustre demand. Korea Gas Corp was due
to have awarded its purchase tender for six cargoes last week, with two Asia-based traders citing
talk that Qatar will supply some or all of the cargoes.
A source in Europe, however, said Kogas had pushed back the award date of the tender and that
two companies have been shortlisted. It was not possible to confirm details. Egypt is also
expected to launch a tender for the supply of about 10 cargoes for delivery in the second half of
the year.

NewBase Special Coverage
News Agencies News Release 15 May 2016
More cities taking the plunge to use 100% renewable energy
CNBC - Jodi Gralnick | @jodigralnick
When Superstorm Sandy hit eastern Long Island in October 2012, virtually every resident of East
Hampton lost power for days, some for weeks. Town leaders knew they couldn't let it happen
again; they needed to find a way to protect their community and make it more resilient in the
future.
"It was a wake-up call for everybody who lives on the East Coast, certainly in our community out
here on the eastern end of Long Island," said East Hampton town supervisor Larry Cantwell.
So, the town acted
quickly to adopt an
ambitious goal:
converting 100
percent of its electrical
energy to renewable
sources by 2020. Its
plan includes solar
and wind energy, and
it's exploring creating
one of New York's first
microgrids as a
backup power source
for emergency
facilities.
"Every household, every business, it's going to require that we think differently about traditional
power sources and that we reject traditional fuel sources," said Cantwell. "It's going to take every
citizen accepting responsibility for becoming more energy efficient."
Switching to renewables is a growing trend among towns, cities and states in the U.S. But while
most are aiming to be 20 percent, 30 percent or 50 percent renewable by a given date, East
Hampton is one of a handful of municipalities going all-in.
Aspen, Colorado; Burlington, Vermont; and Greensburg, Kansas, have already proven it can be
done. But, like East Hampton, which has 20,000 residents, those are all relatively small towns.
Some much bigger cities have also taken up the challenge, including San Diego (with a goal to
convert by 2035), Honolulu (by 2045) and San Francisco (by 2030).

"We know that we are in a national city, a popular city, but we also want to be a city that
contributes to the challenges of climate change and improves our world," said San Francisco
Mayor Ed Lee. "If we can do that here, I suggest that we can do that anywhere."
The city adopted its 100
percent goal in 2011,
but had already been
working to reduce
greenhouse gas
emissions since issuing
its electricity resource
plan in 2002. It has
since closed two GHG-
emitting power plants
and expanded its use of
the Hetch Hetchy
Hydroelectric Power
System to now supply
17 percent of city's
electricity needs.
A number of solar arrays were built, including one on the roof of the historic City Hall. The 5-
megawatt Sunset Reservoir solar array in the middle of the city is the size of 11 football fields and
has 24,000 solar panels, and will eventually be expanded.
Outside the city, San Francisco is building a large wind farm. Meanwhile, every city building,
including City Hall, libraries, police and fire stations and the airport are already using 100 percent
GHG-free energy. Twenty-three percent of the city's electric supplies are now from the renewable
sources of wind, solar, geothermal and biogas, with another 21 percent being GHG-free
hydroelectric.
The focus is now on getting more residents and
private businesses on board. A new 15,000
resident development at Hunter's Point will be
the first in the city to be 100 percent GHG-free.
The city just launched CleanPowerSF, a
community choice clean energy aggregation
program. Through utility
company PSE&G residents are automatically
enrolled to get some of their electricity from
renewable sources at the same price they've
been paying. But they can also opt into 100
percent renewable for a little higher price.
"That participation means we're actually paying our local public utilities commission to source my
energy in the right way," said Lee. "And then I'll add to that by putting a solar array on to my
rooftop, and hopefully contribute through the credit program, other solar array programs, where
we'll actually help build the industry by our own contribution."

"That will help defray all of these upfront costs of getting the program started and then with people
getting hired and locally programmed," he said. "I think that that will also add to the entire value of
this cost. We'll bring every dollar that we're spending on the upfront into a cost-neutral basis and
have that whole system paid for."
Lee expects these programs to create almost 10,000 jobs.
Some analysts expect the trend towards more renewable energy to continue despite the relatively
low cost of oil.
"I think the oil correlation as it's historically been is a bygone," said Julien Dumoulin-Smith, an
analyst covering power, utilities and renewables at UBS. "When it comes to the renewables
industry, the prospects over the near-term, medium-term and long-term arguably have never been
better. The technology costs continue to trend lower. A lot of these towns are opting to sign up for
100 percent renewables on the back of tax credits. You see a lot of incentives out there to
basically step up. It doesn't cost you meaningfully more to do it, so why not take the plunge?"
But going 100 percent renewable isn't without its challenges. Lee said the biggest obstacle in San
Francisco is making sure in such a dense city with such a diverse population, that everyone is
included and participating.
"It's one thing for the town of East Hampton, little old town of East Hampton, little old town
supervisor, to stand up and say, you know, we need to be 100 percent renewable," said Cantwell.
"But you also need the cooperation of the state of New York, of the governor's office, of the Long
Island Power Authority, of the public service and electric utility company."
Right now, East Hampton is counting on LIPA to approve a large windmill project off of Montauk
that's vital to meeting the town's 2020 goal. But even if it takes a little longer to get to 100 percent,
Cantwell is determined to succeed.
"It's going to take time to make the progress we want. We don't just turn on a light switch.
Together we can get to 100 percent renewable if we continue the commitment we already made to
be there."
E Z A / C O N T R B U T O R

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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NewBase energy news is produced daily (Sunday to Thursday) and
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For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering & regulating stations
and in the engineering of supply routes. Many years were spent drafting, & compiling gas
transportation, operation & maintenance agreements along with many MOUs for the local
authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 15 May 2016 K. Al Awadi

New base energy news issue 850 dated 15 may 2016

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New base energy news issue 850 dated 15 may 2016