NewBase April 01-2022 Energy News issue - 1500 by Khaled Al Awadi.pdf

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NewBase Energy News 01 April 2022 No. 1500 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 petrol Gasoline prices increase by 16% in April, Diesel 26%
The National - Patrick Ryan + NewBase
The cost of fuel in the UAE has increased for the month of April. Fuel costs increase with diesel
breaking the Dh4 per liter . With prices having risen more than 10 per cent in February and a further
10 per cent in March, motorists face another double-digit increase this month.
The breakdown per litre is as follows:
The new prices announced by the UAE Fuel Price Committee are the highest they have been since
they were liberalised in 2015 to allow them to move in line with the market. In 2020, prices were
frozen by the Fuel Price Committee at the onset of the coronavirus pandemic. The controls were
removed in March 2021 to reflect the market movement.
US President Joe Biden on Thursday announced the release of a record million barrels of oil a day
from US strategic stockpiles to curb soaring prices.
Oil prices fell sharply on initial reports of the announcement. The price of Brent, the benchmark for
two thirds of the world's oil, reached $107.20 a barrel on Thursday, down 5.5 per cent.
Oil prices surged close to $140 a barrel in March over concerns about lost Russian crude supply as
some "self sanctioning" oil buyers shunned Russian crude after international sanctions on Moscow.
Prices have retreated somewhat since the US banned Russian energy imports on March 8, but
have lingered above $100 a barrel most of the subsequent period.

Saudi Aramco, Hyundai and Kaust tie up on advanced fuels
Arabia News + NewBase
Saudi Aramco, Hyundai Motor Group, and King Abdullah University of Science and Technology
(Kaust), have agreed to jointly research and develop an advanced fuel for an ultra-lean-burn, spark-
ignition engine.
The two-year partnership seeks the development of
an optimal fuel formulation for use in combination
with a novel combustion system coupled with an
electrified hybrid vehicle.
The research team aims to unleash greater CO2
reduction potentials by deploying Hyundai Motor
Group’s ultra-lean burn combustion design in a
modern hybrid vehicle.
Unique expertise
Each party brings unique expertise to the
partnership. Aramco, which has significant R&D and
operational experience in fuel formulations, will
leverage in-house expertise to carefully design an optimal fuel formulation. Hyundai Motor Group,
with its automotive and technology leadership, will provide a state-of-the-art ultra-lean gasoline
engine for use by the research team. The tests will be conducted by researchers in the Clean
Combustion Research Centre (CCRC) at Kaust.
Ahmad O Al-Khowaiter, Aramco’s Chief Technology Officer said: “As hybrid electrical vehicles are
rolled out, the real challenge now lies in making strides with optimal fuels and exceptional
combustion systems.
The Aramco team provides fuel design and blending know-how to improve Hyundai Motor Group
engine combustion performance and the outcome could lead to the application of synthetic e-fuels.
This is a space in which we are pushing boundaries and we are excited to be part of it.”
Alain Raposo, Executive Vice President at Hyundai Motor Group, said: “BEVs and FCEVs will be
Hyundai Motor Group’s ultimate technologies to achieve carbon neutral mobility, while eco-friendly
advanced ICE technology that combines eco-friendly fuel and ultra-lean burn engine will be the key
to effectively reduce greenhouse gas emissions during our transition to EVs.”
Circular carbon economy
Professor Donal Bradley, Vice President for Research of Kaust, said: “Building more efficient and
less polluting transport systems is a critical contribution to the circular carbon economy approach to
tackling climate change. Our Clean Combustion Research Centre is ideally placed to support this
significant development with its excellent record in the development and optimisation of lower-
carbon fuels. We look forward to working closely with our colleagues in Aramco and Hyundai on this
exciting project.”
Aramco‘s R&D efforts aim to accelerate transportation technologies that can reduce emissions and
improve fuel efficiency. This entails partnerships with leading automakers worldwide through the
company’s research centres in Dhahran, Paris, Detroit, and Shanghai.--

Saudi Dussur and Baker Hughes Dussur form chemicals JV
The National + NewBase
New York-listed energy services firm Baker Hughes and Saudi Arabia’s Dussur signed an
agreement to form a joint venture that will focus on providing oilfield and industrial chemicals in the
kingdom.
The US-listed energy services firm will own 51% of the joint venture as it expands in the kingdom
Baker Hughes will own 51% of the chemicals joint venture while Dussur, owned by the Public
Investment Fund, Saudi Aramco and Sabic, will have a 49% stake. Photo: Baker Hughes
Baker Hughes will own 51 per cent of the new chemicals joint venture while Dussur, owned by the
Public Investment Fund, Saudi Aramco and Sabic, will have a 49 per cent stake, a statement from
Baker Hughes on Wednesday said.
The JV supports Baker Hughes’ efforts to “better serve the chemical market in the region” and
includes the company’s existing chemical blend plant in Dammam and manufacturing facility in
Jubail, it said. The deal will also help Baker Hughes lower expenses and source raw materials
locally.
“This partnership is directly aligned to our broader strategy to invest for growth and leverage our
existing strengths while exploring new business models to better serve our customers and the
regions in which we operate,” said Maria Claudia Borras, executive vice president of oilfield services
at Baker Hughes.

The agreement comes as Saudi Arabia, the Arab world’s largest economy, focuses on attracting
new investments and diversifying its economy away from oil. The kingdom recorded a 257 per cent
surge in foreign direct investment to $19.3 billion in 2021 as its economy recovered from the
coronavirus pandemic.
The number of new foreign investment licences issued last year also jumped more than three times
annually to 4,400, with 3,386 of that total issued in the second half of the year, the Ministry of
Investment said in its National Investment Strategy report.
Saudi's Vision 2030 economic transformation agenda is also heavily focused on localising
manufacturing to create jobs and drive its non-oil economy.
“Expanding the role of oilfield chemicals manufacturing in Saudi Arabia is an important link to
Dussur’s mission to support the kingdom’s industrialisation journey and localise technologies that
will introduce new value chain capabilities,” said Raed Al-Rayes, chief executive of Dussur.
“We are looking forward to commencing our work with Baker Hughes to contribute to the security of
supply in the region and build local capabilities for the jobs of the future.” The transaction is
expected to close in the third quarter of this year and the new JV will continue to operate under the
Baker Hughes brand, the statement said.
Baker Hughes formed a 50/50 joint venture called Novel with Saudi Aramco, the world’s largest
oil-exporting company, in 2020 to develop non-metallic products for multiple applications in the
energy sector.
In October last year, Baker Hughes also started construction of its 300,000-square-metre oilfield
services regional hub located at King Salman Energy Park. The facility, which is the largest
assembly, maintenance, and overhaul hub for Baker Hughes’ Oilfield Services business in the
eastern hemisphere, will have more than 600 employees, including 70 per cent Saudi citizens. It is
expected to open in late 2022.
THE MEANING OF DUSSUR
“Dussur” is an Arabic word for the ropes, nails or rivets that hold a ship together. Historically,
“Dussur” were used to tie together the boards of dhows. Today, it can also mean the steel rivets on
modern ships. “Dussur” symbolizes the company’s mission to bring together the resources of the
Kingdom of Saudi Arabia to create and grow strategic industrial businesses that will accelerate the
Saudi economy’s diversification. It speaks to how the company will bring together the resources of
the country to engage with its partners from around the world to form joint ventures that benefit all
parties.

Morocco: Chariot provides post-well analysis on significant gas
discovery at Anchois-2 well. Source: Chariot
AIM-listed Chariot, the Africa focused transitional energy company, has provided an update on the
post-well analysis of the successful Anchois-2 gas appraisal and exploration well, completed
in January 2022, on the Anchois gas project within the Lixus licence, offshore Morocco.
Chariot has a 75% interest and operatorship of Lixus in partnership with the Office National des
Hydrocarbures et des Mines ('ONHYM') which holds a 25% interest.
Net gas pay estimates for Anchois-2 well,
based on further interpretation of the well
data, have been upgraded to approx. 150m
from the previously announced
preliminary analysis of greater than 100m,
compared to the 55m in the original Anchois-
1zzzdiscovery well.
llent quality dry gas confirmed, with greater
than 96% methane, in all seven discovered
gas reservoirs, without detrimental impurities
such as H 2 S or CO 2, supporting minimal
gas processing required in the development.
Highly consistent gas composition
potentially allows all gas produced from the
different reservoirs to be processed through
a single gas processing facility, enabling a
simple development.
Further analysis is ongoing on the well data
to understand the positive implications
on gas resources, and scale and economics
of the development. Confirms excellent
quality dry gas and significant increase in net
gas pay.
Adonis Pouroulis, Acting CEO of Chariot, commented:
'I am delighted to announce this very positive update on the analysis of the well data obtained from
our successful gas drilling campaign on the Anchois project, offshore Morocco, including a
significant increase in net gas pay to approx. 150m.
This increase combined with the confirmation of excellent quality dry gas consistently across all the
discovered gas reservoirs is extremely encouraging, as it will help enable a simple and standard
development.
Our ambition is to bring the Anchois gas development online quickly, to fuel Morocco’s
economic growth, but also to deliver near-term cash flows to our shareholders. We will continue to
work on an accelerated field development plan, for the benefit of all stakeholders.'

Europe Gas, Power Jump as Germany Triggers Emergency Energy Plan
Bloomberg + NewBase
European energy prices surged as top consumer Germany activated an emergency plan to secure
supplies, preparing for a potential disruption to Russian natural gas flows.
Benchmark gas futures jumped as much as 15% after the German government initiated the first
phase of its strategy, signaling the potential for the supply situation to deteriorate. German power
prices also rallied. The move comes as Russia plans to tell buyers to pay for its gas supplies in
rubles as soon as Thursday, a demand G-7 nations have unanimously rejected.
“There have been several statements from the Russian side that, if that doesn’t happen, deliveries
will be stopped,” German Economy Minister Robert Habeck said Wednesday. He added that today’s
move was a precautionary decision.
Europe has been trying to cut its dependency on Russian energy in response to the war in Ukraine.
Germany and other nations have rushed to announce new projects to bring more liquefied natural
gas to the continent, while governments have held talks with industries to ration energy in the event
of a supply cut.
France is also preparing for a potential curtailment to energy supplies. The nation’s gas distributor
expects the government to publish a decree in the coming days outlining plans for possible gas
rationing, GRDF SA head Laurence Poirier-Dietz said in an interview with local newspaper Les
Echos on Tuesday.
Austria Follows Germany to Trigger Gas-Supply Contingency Plan
“Clearly Moscow is trying to bully western governments dependent on Russian energy to force them
to pay in rubles and thereby break the broader sanctions strait jacket around Russia,” said Timothy
Ash, a sovereign debt analyst at BlueBay Asset Management LLP.

Dutch gas for May delivery rose as high as 125.34 euros a megawatt-hour, before closing at 119.8
euros a megawatt-hour. The German power contract for May climbed as much as 9.3% to 273
euros.
Russian President Vladimir Putin ordered his government, the central bank and the state-run
exporter Gazprom PJSC to prepare all necessary documents for the switch in payments by March
31. “Nobody will supply gas for free,” Kremlin spokesman Dmitry Peskov said earlier this week. “And
it can only be paid for in rubles.”
The process of switching to rubles payments for Russian gas export deliveries will take time and
won’t begin immediately this week, Peskov said Wednesday.
Putin and German Chancellor Olaf Scholz agreed that experts on both sides should discuss
Russia’s demand to switch gas payments to rubles, the Kremlin said in an emailed statement.
The Russian leader also discussed the decision with Italian Prime Minister Mario Draghi and their
French counterpart Emmanuel Macron. France’s President told Putin that it wasn’t possible for
buyers in the West to pay their bills in rubles, Reuters reported, citing an unidentified official.
For now, supplies from Gazprom through key pipeline routes, which cover about a third of gas
demand in Europe, continue uninterrupted. Yet, the continuing war in Ukraine and uncertainty over
future gas shipments is keeping traders on edge.
The recent round of peace negotiations briefly spurred some optimism, though the talks didn’t result
in a cease-fire agreement. De-escalation does not mean a complete withdrawal of troops from
around Kyiv, said a person close to the Kremlin.
Net imports of LNG into northwest Europe in March are near record-high levels seen in January,
easing some pressure on prices after wild swings earlier this month. But the LNG market is also
“extremely tight,” Oystein Kalleklev, chief executive officer of Flex LNG Ltd., a shipowner in Oslo,
told Bloomberg TV.
“It’s the pricing that’s going to push cargoes into Europe, not politicians, in the short term,” he said.

U.S.: 50% of households use LED bulbs for their indoor lighting
Source: U.S. Energy Information Administration, Residential Energy Consumption Survey (RECS)
U.S. households are increasingly switching to light-emitting diode (LED) bulbs; 47% report using
LEDs for most or all of their indoor lighting in 2020, according to the most recent results from
the Residential Energy Consumption Survey (RECS). In the previous RECS, conducted in
2015, only 4% of households used LEDs for most or all of their indoor lighting.
The share of U.S. homes using mostly compact fluorescent (CFL) bulbs for their indoor lighting fell
from 32% in 2015 to 12% in 2020. Households using incandescent or halogen bulbs for most of
their indoor lighting fell from 31% of the total in 2015 to 15% in 2020.
Use of LED bulbs in homes varies across key household characteristics, such as household income
and ownership status. Among households earning less than $20,000 a year, 39% reported that LED
bulbs were their main indoor lighting choice, while 54% of households earning $100,000 or more
per year used mostly LED bulbs in 2020.
Owner-occupied housing units were also more likely to use LED bulbs than renter-occupied
households. Homes without children were more likely to use LED bulbs for all or most of their indoor
lighting (52%) than homes with at least one child (45%).

The 2020 RECS questionnaire also asked about lighting behavior, such as how many bulbs were
left on for four or more hours per day. More owner-occupied households reported leaving three or
more bulbs on for four or more hours a day (65%) than their renter-occupied counterparts (54%).
Among homes with at least one child, 68% reported leaving three or more bulbs on for four or more
hours per day compared with 59% of homes without children. Households earning less than $20,000
per year were also less likely to leave lights on for longer periods of time than households that earn
$100,000 or more.
Home automation technology also affects home lighting behavior. An estimated 39 million U.S.
households (32%) had at least one smart speaker, and nearly 10 million of those households
reported using these devices to control lighting.
The 2020 RECS collected data on household energy use from 18,496 households, the largest
responding sample in the program’s history. Respondents completed the survey using self-
administered web or mail questionnaires during late 2020 and early 2021.
In addition to data on lighting, the initial 2020 RECS results include estimates on structural and
geographic characteristics, electronics, appliances, demographic characteristics, and household
energy insecurity. In the coming months, we will release estimates on additional topics and results
detailing information for all 50 states and the District of Columbia.

NewBase April 01-2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls most in 2 years after oil stockpile release
Reuters + NewBase
Oil settled lower on Friday as members of the International Energy Agency (IEA) agreed to join in
the largest-ever U.S. oil reserves release.
Both Brent and U.S. crude benchmarks settled down around 13% in their biggest weekly falls in two
years after U.S. President Joe Biden announced the release on Thursday.
Brent crude futures were down 32 cents, or 0.3%, at $104.39 a barrel. U.S. West Texas Intermediate
(WTI) crude futures fell $1.01, or 1%, at $99.27.
Biden announced a release of 1 million barrels per day (bpd) of crude oil for six months from May,
which at 180 million barrels is the largest release ever from the U.S. Strategic Petroleum Reserve
(SPR). read more
Member countries of the International Energy Agency did not agree Friday on volumes or the
commitments of each country at their emergency meeting, said Hidechika Koizumi, director of the
international affairs division at Japan's Ministry of Economy, Trade and Industry. He added that
additional details could be known "within next week or so."[nL9N2K200I]
Oil price special
coverage

OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies including
Russia, on Thursday stuck with plans for an increase of 432,000 bpd to their May output target
despite Western pressure to add more. read more
U.S. energy firms last week added oil and natural gas rigs for a second week in a row but growth in
the rig count remains slow as drillers continue to return cash to shareholders from high crude prices
rather than boost production. read more
"The looming flood of U.S. barrels does not change the fact that the market will struggle to find
enough supply in the coming months," PVM analyst Stephen Brennock said.
"The U.S. release pales in comparison to expectations that 3 million bpd of Russian oil will be shut
in as sanctions bite and buyers spurn purchases."
In a bearish signal for demand, China's commercial hub of Shanghai ground to a halt on Friday after
the government locked down most of the city's 26 million residents, aiming to stop the spread of
COVID-19. read more
JPMorgan said in a note it had kept its price forecasts unchanged at $114 a barrel for the second
quarter and $101 a barrel in the second half of this year.
"Crucially, we recognize that a release of oil inventories is not a persistent source of supply, and if
stranded Russian barrels average more than 1 million bpd next year, this will leave 2023 in a deep
deficit, rendering our $98 a barrel price forecast for the year too low," the bank said.

NewBase Special Coverage
The Energy world –April -01 -2022
CLEAN ENERGY
Yesterday’s Energy Solutions Are Tomorrow’s Energy Problems
Bloomberg - Nathaniel Bullard
In 1950, the entire U.S. power generation sector generated a bit more than 300 terawatt-hours of
electricity. Today, the sector generates more than 4,000 terawatt hours, and wind energy alone
generated more in 2020 than the entire sector in 1950.
Today’s dominant trend will require future planners and investors to anticipate new challenges
before they become systemic problems.
The story of electricity in the U.S. is not simply a story of exceptional growth, however. It is also a
story of a significant plateau. U.S. power generation has been more or less flat since the end of the
first decade of this century. That’s testament to greater efficiency and to slower economic growth
after the global financial crisis.
Underneath that electricity plateau though are a number of other major energy stories of
growth and expansion, peaks and valleys, second winds and near-deaths. All are
relevant for today and for the future.
Coal, for instance, is a clear peak. It was the single biggest source of power through the
late 2000s, with a significant decline since then. Nuclear is a clear plateau, up from

nothing in the 1950s to a steady state since the turn of the century. Hydro is seasonal,
with peaks and valleys depending on resource. Natural gas, which peaked in the early
1970s, subsided for years, and then soared again in the 1990s through to today.
Peaks, Valleys, Dips, Seasons
Oil-fired power and renewables (wind, solar, geothermal, biomass, and waste) are what
really interest me.
Oil-fired power generation soared from the 1960s right through to the second oil shock
of the late 1970s, and was in fact the nation’s third-biggest source of power in 1973,
behind coal and natural gas. Its rate of growth was rapid, and its timing, so to speak,
spectacularly poor as it aligned with not one but two oil shocks.

Renewables present two curves, really — a late-1980s surge driven by friendly policies
and a big build-out of renewable generation in California in particular, and then a rapid
and smooth rise from the mid-2000s to today. Renewables now generate more power
than oil ever did, and more than large hydro does as well.
Resource availability and the economics of power generation from each source are
obviously major determinants of each of these curves. But it is essential to remember as
well that these curves are the results of policies and regulations or, to put it more
plainly, choices.
Professor Michael Webber of the University of Texas recently provided me with a capsule
history of some of those choices.
That oil-fired power generation, arriving just in time for the oil shocks, meant that the
public “freaked out.” As he says, “It’s one thing to lose your ability to drive to work, that’s
annoying.
But to lose electricity is a much bigger risk because the world’s food preservation and
water treatment systems run on electricity. So a gasoline outage is disruptive but a power
outage is life-and-death.”
The response to that freak out? The U.S. accelerated its construction of coal and nuclear
capacity, as seen in the charts above. At the same time, three other trends were
underway with significant implications for U.S. power generation.
First, air quality regulations were clamping down on higher-sulfur coal in the U.S. east
and oil-fired power everywhere. Second, railroad deregulation made it much cheaper to
bring low-sulfur coal from Wyoming, in particular, to points east.
Finally, in 1978 the U.S. prohibited construction of new gas-fired plants — based on an
assumption that the U.S. was running out of gas and would need what remained for
industrial use.
The result, in particular for the wave of coal-fired power plants built in the 1970s and
1980s, is a bit ironic. As Webber says, “We yell at utilities today to shut down coal plants
for security and environmental reasons but in the 1970s and 1980s, we were yelling at
utilities, begging them to build those exact same coal plants for security and
environmental reasons.”
Yesterday’s solutions, in other words, are tomorrow’s problems. It is therefore worth
considering what today’s dominant trend — a massive build-out of wind and solar
generation — will require of future planners and investors.
Complementing their low cost, variability and seasonality will certainly require massive
amounts of energy storage capacity. But it could require more — potentially hydrogen or
bio-methane used in conventional gas turbines, or even small nuclear reactors to quickly
provide zero-carbon power.
Long-term stability, coupled with deep de-carbonization, will mean building a great deal.
It will also mean anticipating new challenges before they become systemic problems.

NewBase Energy News 01 April 2022 - Issue No. 1500 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase April 01-2022 Energy News issue - 1500 by Khaled Al Awadi.pdf

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