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NewBase Energy News 16 August 2022 No. 1539 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Aramco profit surges to another record on bumper oil market
Bloomberg + NewBase
Saudi Aramco posted the biggest quarterly adjusted profit of any listed company globally driven by
high crude prices and production.
Aramco followed big oil rivals reporting a surge in profits. Net income rose to $48.4 billion in the
second quarter, up from $25.5 billion a year earlier, the state-controlled company said on Sunday.
Profit beat a company compiled analyst estimate of $46.2 billion. Revenue climbed 80 per cent to
$150 billion, beating analyst estimates. Its free cash flow rose by 53 per cent from a year earlier to
$34.6 billion.
Aramco “expects oil demand to
continue to grow for the rest of
the decade, despite downward
economic pressures on short-
term global forecasts” Chief
Executive Officer Amin Nasser
said.
The company is using the
windfall to reduce debt and invest
in a huge expansion of its
production capacity, rather than
boost payouts to shareholders.
The Saudi Arabian state-
controlled company kept its
quarterly dividend, a crucial
source of revenue for the
kingdom, unchanged at $18.8
billion. That was unlike most
Western majors, who increased
payouts to shareholders. Aramco also reduced gearing, a measure of debt to equity, to 7.9 per cent
from 14.2 per cent at the end of 2021.
Energy companies boomed in the first half of this year. Russia’s invasion of Ukraine roiled markets,
sending oil prices above $100 a barrel and causing refining margins to soar, while Aramco is
benefiting from both high production and sales prices.
Demand, meanwhile, continued to rebound from the coronavirus pandemic in most parts of the
world. Firms such as Exxon Mobil Corp. and Shell Plc made record earnings in the second quarter.
The quarter may mark a high point for Aramco. While Brent crude averaged $112 a barrel between
April and June, it’s since fallen below $95 as the US and European economies slow and due to
China’s Covid lockdowns.
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Still, Saudi Arabia is ramping up output along with other members of OPEC+, the producers’ cartel
it leads alongside Russia.
The kingdom pumped 10.5 million barrels a day of crude in the second quarter. It increased that
figure to almost 11 million in July and is under pressure from the US and other major importers to
go even higher, despite some analysts doubting it has much spare capacity.
Aramco said it “continues to
work on increasing crude oil
maximum sustainable capacity
from 12 million barrels per day
to 13 million by 2027.” Aramco
listed in Riyadh in 2019, though
it’s still 98 per cent state owned.
Its shares have gained 25 per
cent this year, giving it a market
valuation of $2.4 trillion.
The company is scheduled to
release a more detailed
breakdown of its results,
including the performance of its
upstream and downstream
units, on Monday.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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UAE to host World Green Economy Summit in September
The National + NewBase
The UAE will hold the eighth World Green Economy Summit at Dubai World Trade Centre next
month as the country prepares to host the Cop28 gathering in 2023.
Dubai Electricity and Water Authority and the World Green Economy Organisation will host the
summit on September 28 and 29, in conjunction with the Water, Energy, Technology and
Environment Exhibition and Dubai Solar Show, it was announced on Sunday.
Apart from promoting a green economy, the summit plays a vital role in supporting the UAE’s efforts
on climate action and its commitment to sustainability, the organisers said.
"The WGES aims to change climate work into opportunities for development and economic
diversity," said Saeed Al Tayer, vice chairman of the Dubai Supreme Council of Energy, managing
director and chief executive of Dewa and chairman of the WGES. "The eighth WGES is especially
important as the UAE is preparing to host Cop28 next year at Expo City Dubai."
"The WGES provides the ideal and unique platform for exchanging experiences and aligning efforts
that support the regional and global agenda for sustainable development."
The summit comes amid the UAE's efforts to adopt green energy, promote sustainable development
and strike a balance between economic growth and the sustainable use of environmental resources.
The Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050
for Dubai aim to provide 100 per cent of the emirate's total power capacity from clean energy
"The World Green Economy Summit is a major supporter of the UAE's efforts and endeavours to
achieve a balance between energy and the environment, and to map out the features of a
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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sustainable future capable of transforming challenges into opportunities, in line with the provisions
of the Paris Agreement on climate change,” Suhail Al Mazrouei, Minister of Energy and
Infrastructure, said.
The UAE has adopted a "comprehensive and balanced" approach to climate action through a "well-
thought-out" transformation in the energy sector, Dr Sultan Al Jaber, Minister of Industry and
Advanced Technology and UAE Climate Change Special Envoy, said.
"The World Green Economy Summit is an important platform that supports the UAE’s direction and
global efforts to adopt innovative green solutions that contribute to achieving a balance between
economic and social growth and the sustainability of natural resources, as well as focus on
renewable and clean energy solutions."
The summit contributes to boosting the country’s competitiveness and reaffirming its global
leadership in building a green economy, Mariam Al Mheiri, Minister of Climate Change and
Environment, said.
"As we gear up to host COP28 in 2023, we are keen to take meaningful steps in our climate action
— most importantly, advancing the shift to a green economy," she said.
"WGES is a leading global platform that drives climate and environmental action through convening
decision-makers and experts to assess the progress made thus far in the transition to a green
economy, explore the next steps, and expedite collective endeavours."
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Libya since 2011 has resulted in inconsistent crude oil production
Energy Information Administration, International Energy Statistics and Short-Term Energy Outlook
Libya’s crude oil production averaged nearly 1.2 million barrels per day (b/d) during 2021. In late
December 2021, armed militants shut in an estimated 0.4 million b/d of crude oil production. In April
2022, protesters across the country began to blockade several major ports and oil fields in Libya,
causing production to fall to around 0.5 million b/d by July 2022.
According to our Libya Country Analysis Brief, Libya’s crude oil production has continually fluctuated
because of armed conflict and political instability since Libya’s first civil war, which began in 2011.
The 2014 elections in Libya led to a split government with two major opposing parties ruling different
parts of the country. The internationally recognized Government of National Accord (GNA) governs
the western region, and the Libyan National Army (LNA) governs the eastern region.
The GNA, the LNA, and separate local
militias have used oil exports as political
leverage and caused disruptions to Libya’s
oil production between 2014 and 2020. After
the GNA and the LNA signed a ceasefire
and lifted the restrictions on oil production
and exports in October 2020, preliminary
real GDP growth estimates rose 70% for
2021.
Crude oil export revenues are a significant
part of Libya’s economy. In 2021, oil
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revenues accounted for an estimated 98% of Libya’s total government revenues, according to
Libya’s Central Bank.
Real GDP growth fell 31% in 2020 as a result of the political conflicts between factions in the eastern
and western regions; the oil export port blockades and pipeline shut-ins; and to a lesser degree, the
economic slowdown during the global COVID-19 pandemic, according to a report from the World
Bank.
At the end of 2021, Libya held Africa’s largest proved oil reserves, at 48 billion barrels, representing
39% of the continent’s total reserves. Libya ranked in the top 10 countries for proved oil reserves,
according to Oil and Gas Journal.
Despite Libya’s large oil reserves, political conflicts and militia attacks on energy infrastructure have
limited capital investments in the country’s oil and natural gas sectors. These challenges have also
constrained exploration and development of its reserves since 2011.
Although Libya is a member of OPEC, it is exempt from the production cuts under the April 2020
OPEC+ agreement because of Libya’s volatile political situation and constrained oil production.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Russia Gazprom flows Gas to Hungary via Turkstream pipeline,
Reuters + NewBase
Russia's Gazprom (GAZP.MM) has ramped up flows to Hungary via the Turkstream pipeline that
brings gas to Hungary via Serbia, a Hungarian foreign ministry official said on Saturday.
European Union member Hungary has maintained what it calls pragmatic relations with Moscow
since Russia's invasion of Ukraine, creating tensions with some European Union allies keen to take
a tougher line.
Hungary, which is about 85%
dependent on Russian gas, firmly opposes the idea of any EU sanctions on Russian gas imports
and Prime Minister Viktor Orban has also lobbied hard to secure an exemption from EU sanctions
on Russian crude oil imports.
Foreign Minister Peter Szijjarto met his Russian counterpart Sergei Lavrov in Moscow last month,
seeking a further 700 million cubic meters of gas on top of an existing long-term supply deal with
Russia.
Under a subsequent agreement, Gazprom started ramping up gas flows to Hungary on Friday,
Hungarian Foreign Ministry State Secretary Tamas Menczer said in a statement.
Menczer said Gazprom would add 2.6 million cubic metres of additional gas per day to previously-
agreed deliveries via Turkstream through August, with the amount of September deliveries being
negotiated.
Hungary's reserves stored 2.84 billion cubic metres of gas by the middle of July, the lowest level for
that period over the past five years based on data by the national energy regulator.
Under a deal signed last year, before the start of the war in neighbouring Ukraine, Hungary receives
3.5 billion cubic metres (bcm) of gas per year via Bulgaria and Serbia under its long-term deal with
Russia and a further 1 bcm via a pipeline from Austria. The agreement with Gazprom is for 15 years,
with an option to modify purchased quantities after 10 years.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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NewBase August 16 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil extends losses as weak demand outlook persists
Reuters + NewBase
Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed concerns
of a global recession and the market monitored talks on a reviving deal that could allow more Iranian
oil exports.
Brent crude futures fell 84 cents, or 0.9%, to $94.26 a barrel by 0953 GMT. WTI crude futures dipped
45 cents, or 0.5%, to $88.96 a barrel. The oil future benchmarks fell about 3% in their previous
sessions.
China's central bank cut lending rates to try to revive demand as the nation's economy slowed
unexpectedly in July after Beijing's zero-COVID policy and a property crisis slowed factory and retail
activity.
Oil price special
coverage
 Summary
 China unexpectedly cuts key rates as economic data disappoints
 Iran responds to EU nuclear text, seeks U.S. flexibility
 Oil output in Permian Basin to rise to record high in Sept -EIA
 Coming up: API data on U.S. oil stockpiles at 4:30 p.m. ET
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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"In our view, problems in the real estate sector, plus the government's zero-COVID strategy, are
likely to continue to weigh on the economy in the short to medium term, meaning that oil prices will
probably face persistent headwinds from this side," Commerzbank said in a note.
China's fuel product exports are expected to rebound in August to their highest in nearly a year after
Beijing issued more quotas, adding pressure to already-shrinking refining margins.
Investors also monitored talks to revive the 2015 Iran nuclear deal. More oil could enter the market
if Iran and the United States accept an offer from the European Union, which would remove
sanctions on Iranian oil exports, analysts said.
Iran responded to the European Union's "final" draft text to save a 2015 nuclear deal on Monday,
an EU official said, but provided no details. The Iranian foreign minister called on the United States
to show flexibility to resolve three remaining issues.
Barclays lowered its Brent price forecasts on Tuesday by $8 per barrel for this year and next, as it
expects a large surplus of crude oil over the
near-term due to "resilient" Russian supplies.
In the United States, output in the major U.S.
shale oil basins will rise to 9.049 million
barrels per day (bpd) in September, the
highest since March 2020, the U.S. Energy
Information Administration (EIA) said in a
report on Monday. In the Permian, the biggest
U.S. shale oil basin, output will hit a record
5.408 million bpd, it said.
Market participants awaited industry data on
U.S. crude stockpiles expected later on
Tuesday. Oil and gasoline stockpiles likely fell
last week, while distillate inventories rose, a
preliminary Reuters poll showed on Monday.
OPEC, in contrast to IEA, sees lower 2022 oil demand growth
OPEC on Thursday cut its 2022 forecast for growth in world oil demand for a third time since April,
citing the economic impact of Russia's invasion of Ukraine, high inflation and efforts to contain the
coronavirus pandemic.
Summary:
 World demand growth to slow to 3.1 million bpd in 2022
 Contrasts with IEA, which raised its demand outlook
 OPEC July output rises 162,000 bpd, less than pledged
 Sees slightly higher U.S. shale growth in 2023
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The view from the Organization of the Petroleum Exporting Countries contrasts with that of the
International Energy Agency, the adviser to industrialised countries, which earlier on Thursday
raised its 2022 demand growth outlook.
OPEC in a monthly report said it expects 2022 oil demand to rise by 3.1 million barrels per day
(bpd), or 3.2%, down 260,000 bpd from the previous forecast. The IEA raised its forecast by 380,000
bpd to 2.1 million bpd.
Oil use has rebounded from the worst of the pandemic and is set to exceed 2019 levels this year
even after prices hit record highs. However, high prices and Chinese coronavirus outbreaks have
eaten into OPEC's 2022 growth projections. read more
"Global oil market fundamentals continued their strong recovery to pre-COVID-19 levels for most of
the first half of 2022, albeit signs of slowing growth in the world economy and oil demand have
emerged," OPEC said in its report.
OPEC cut its 2022 global economic growth forecast to 3.1% from 3.5% and trimmed next year to
3.1%, saying that the prospect of further weakness remained. "This is, however, still solid growth,
when compared with pre-pandemic growth levels," OPEC said. "Therefore, it is obvious that
significant downside risk prevails."
Oil prices held on to an earlier gain after the OPEC report was released, finding support from the
IEA's view on demand and trading above $98 a barrel
OPEC PUMPS MORE
OPEC and allies, including Russia, known collectively as OPEC+, are ramping up oil output after
record cuts put in place as the pandemic took hold in 2020.
In recent months OPEC+ has failed to fully achieve its planned production increases owing to
underinvestment in oilfields by some OPEC members and by losses in Russian output.
The report showed OPEC output in July rose by 162,000 bpd to 28.84 million bpd, a smaller increase
than pledged. OPEC's take on the outlook for 2023 suggests that the market could remain tight.
OPEC left its 2023 world demand growth projection unchanged at 2.7 million bpd and expects
supply from non-member countries to rise by 1.71 million bpd, meaning OPEC will need to pump
around 900,000 bpd more to balance the market.
While the 2023 outlook for overall non-OPEC supply was left steady, OPEC sees a slight
acceleration in U.S. shale growth. Supply of U.S. tight oil, another term for shale, is expected to
rise by 800,000 bpd in 2023, up from 740,000 bpd in 2022, although this year's forecast was
revised down.
Oil Demand Forecasts Aren’t as Bullish as They Seem
Analysis by Julian Lee | Bloomberg
Recent revisions to oil demand forecasts aren’t as bullish as they might appear. Don’t get too excited
about prices going up just yet.
The International Energy Agency, the US Energy Information Administration and the Organization
of Petroleum Exporting Countries all updated their short-term outlooks in the past week. Two of
them cut their demand estimates for both this year and next, with only the IEA breaking ranks to
increase its forecasts.
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And it wasn’t just a minor tweak from the Paris-based agency. It revised oil demand higher for this
year by a whopping 520,000 barrels a day, with most of that rolled forward into 2023 as well. On
the face of it, that’s very bullish for oil.
But there are plenty of reasons to be cautious.
First, let’s compare the actual outlooks from the three sets of analysts and put them in their historical
context.
The IEA’s revision sets its new demand number for 2022 roughly halfway between those of the
other two agencies. It also brings its outlook pretty much back to where it saw things in March. So,
although the IEA’s revision was big, it’s not out of line with others.
The other noticeable feature in the forecasts is that oil demand growth is disappearing fast, as the
chart below illustrates. Global oil demand grew year on year by about 5 million barrels a day in the
first quarter of the year — all three sources agree on that — but that increase is now evaporating.
That’s not entirely unexpected when you consider year on year comparisons. Oil demand at the
start of 2021 was still adversely affected by the Covid pandemic, so a rebound at the beginning of
this year was entirely reasonable.
Then economic activity and travel eventually picked up later in 2021, so we would expect demand
growth in the corresponding quarters of 2022 to ease.
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It’s also worth looking in more detail at why the IEA boosted its demand forecast. It pins the revision
on two factors.
It sees increased demand for oil in power generation, particularly in the Middle East, where demand
for electricity soars to keep air conditioners running full blast in the summer. Like 2021, this year
has been hot.
Daily temperature highs in Riyadh, Saudi Arabia have averaged more than 43 degrees Celsius (109
degrees Fahrenheit) since the start of June and aren’t expected to fall much before October.
While this oil use in the Middle East will support demand for a while, it’s not likely to sustain it into
the cooler months. Europe may be different. The IEA notes increases in the use of oil in power
generation in Portugal, Spain and the UK, as well as in Japan.
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Oil has become attractive as an alternative fuel because gas prices have soared. But Europe is
rapidly replenishing its natural gas stockpiles ahead of winter, with injections to storage running
about nine weeks ahead of last year. And that’s with flows from Russia already severely curtailed.
Analysts at Standard Chartered Plc see President Vladimir Putin’s gas weapon blunted by the
inventory build, suggesting that Europe could soon be in a position to get through winter
“comfortably” without Russian gas.
More natural gas would reduce pressure on oil demand as an alternative. European Union countries
finally reached a political agreement to cut gas use by 15% through next winter. The more they
adopt aggressive energy-saving measures now, the less difficult the coming months will be.
The problem is, contingency plans for reduced gas and power supplies to industry this winter will
keep stoking demand for oil as long as fears of possible cuts remain.
But that additional demand will come up against a deteriorating economic outlook. If soaring prices
for fuel, food and just about everything else trigger a recession, as many analysts fear, the reduced
economic activity could quickly send oil demand in the opposite direction.
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NewBase Specual Coverage
The Energy world –August -16 -2022
CLEAN ENERGY
Britain's first new coal mine in decades on the verge of approval
The Telegraph + NEwBAse
Michael Gove is on the cusp of approving Britain's first coal mine in decades as the Cabinet rallies
behind a proposal to wean the country off Russian imports.
The Housing Secretary is understood to be supportive of plans to open a Cumbrian colliery which
will provide vital supplies for steel plants, senior Conservative party sources believe. Mr Gove's
decision will now hinge on recommendations that have been handed to him by the Planning
Inspectorate.
An artist’s impression of the mining site near Whitehaven, Cumbria © West Cumbria Mining Company
A source said: “I don’t know for certain, but I get the impression he [Mr Gove] is going to approve
it.”
Woodhouse Colliery, the UK’s first deep coal mine in 30 years, was given the go-ahead by local
councillors in October 2020, but ministers launched an inquiry six months later after opposition from
activists ahead of the Cop26 climate change conference.
Boris Johnson said in November at the summit in Glasgow that he was “not in favour of more
coal” but stopped short of outright opposition. Downing Street sources insist that the decision is for
planning ministers alone.
Nevertheless, Whitehall sources said that the Russian invasion of Ukraine has unified the Cabinet
in favour of the plans.
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The mine will produce coking coal, an essential ingredient in steelmaking that will not be burned at
power plants. Britain imported 40pc of its coking coal from Russia before the invasion of Ukraine.
Mr Gove has until July 7 to make his final decision, but Whitehall sources said that it could come
much earlier - potentially as soon as mid-May.
Tata Steel and Chinese-owned British Steel have stopped importing Russian coking coal in the
meantime. Both companies have found alternative supplies from mines in Wales, the US and
Canada, Government sources said.
Bosses at West Cumbria Mining, the site's owner, are believed to have been buoyed by feedback
from the planning inquiry.
An industry expert with knowledge of the project said: “It is clear the world has changed. Ukraine
has reminded us that energy and commodity security is a primary duty of any state.
“If the answer is more renewable energy, you simply can’t build renewable energy power plants –
solar, tidal, hydro or wind – or nuclear, without steel. Without metallurgical coal, you can’t make
steel. And you don’t want to be importing it from halfway around the world or Russia.”
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Despite significant government support for giving the mine the go-ahead, Mr Gove will be aware
that his decision is likely to be subject to a legal challenge.
To go against the recommendation of the Planning Inspectorate could weaken the Government’s
position were it to go to the High Court, sparking further embarrassment for ministers.
Earlier this month, judges quashed plans to build a Holocaust memorial outside Parliament – plans
that had been subject to a planning inquiry and signed off by the then planning minister Chris
Pincher.
The housing department has been more interventionist under Mr Gove than his predecessors.
Last week, it blocked plans to demolish and rebuild Marks & Spencer’s flagship Oxford Street store
in London, saying that Mr Gove needed time to consider whether an inquiry should be launched.
Mr Gove also sprung a surprise by blocking the building of Foster and Partners’ controversial Tulip
tower in the City of London in November. Sources close to the deal said Mr Gove ultimately
disagreed with the positive assessment by his predecessor Robert Jenrick.
West Cumbria Mining declined to comment.
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Earlier this month, a spokesman said: “We look forward to a decision where the Government
supports our project to build the world’s first net-zero mine to supply a new domestic source of
metallurgical coal for Britain and Europe’s steelmakers.”
Coal in Europe’s energy mix
Coal accounts for about 20% of total electricity production in the EU. It also provides jobs to around
230,000 people in mines and power plants across 31 regions and 11 EU countries.
While coal remains a primary fuel in the European energy mix, the transition to cleaner forms of
energy and innovative technologies, such as carbon capture and storage, is imperative to meet the
EU’s commitment to reduce CO2 emissions by at least 55% by 2030 and to become the world’s first
climate-neutral bloc by 2050.
Since 2012, total coal power generation has dropped by almost a third in the EU. The declining use
of coal has caused mines to close down and power plants to be decommissioned in a number of
regions across Europe. The graph below depicts the current state of play of national coal phase-out
commitments in the EU.
Supporting coal regions in transition
The European Green Deal aims at making Europe the first climate-neutral bloc in the world by 2050.
To help to achieve this goal, the Commission introduced in January 2022 the Just Transition
Mechanism in its proposal for Regulation COM/2020/22. Alongside tailored financial and practical
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support, it will help workers and generate the necessary investments to areas particularly affected,
like the EU coal regions.
Furthermore, the Commission provides tailored support to coal regions, peat and oil shale regions,
either in the form of operational country teams or bilateral discussions with Commission experts.
This support can help national and regional authorities to identify ways to initiate and implement the
transition. This support is accompanied by existing EU funds, financing tools and programmes.
The country teams work with national and regional authorities in regions chosen by EU countries to
encourage the preparation of transition strategies and support the identification of priority projects.
The Initiative for coal regions in transition
To ensure that no region is left behind in this transition, the Commission also launched in 2017
the Initiative for coal regions in transition to help mitigate the social consequences of the low-carbon
transition in coal, peat and oil shale regions of the European Union.
The Initiative for coal regions in transition is an open forum that gathers all relevant parties, local,
regional and national governments, businesses and trade unions, NGOs and academia to promotes
knowledge-sharing and exchanges of experiences between EU coal regions. It represents a unique,
bottom-up approach to a just transition, enabling regions to identify and respond to their unique
contexts and opportunities.
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
NewBase Energy News 16 August 2022 - Issue No. 1539 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.
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 21
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 22
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 23
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 24

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NewBase August 16-2022 Energy News issue - 1539 by Khaled Al Awadi_compressed.pdf

  • 1. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 16 August 2022 No. 1539 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Saudi Aramco profit surges to another record on bumper oil market Bloomberg + NewBase Saudi Aramco posted the biggest quarterly adjusted profit of any listed company globally driven by high crude prices and production. Aramco followed big oil rivals reporting a surge in profits. Net income rose to $48.4 billion in the second quarter, up from $25.5 billion a year earlier, the state-controlled company said on Sunday. Profit beat a company compiled analyst estimate of $46.2 billion. Revenue climbed 80 per cent to $150 billion, beating analyst estimates. Its free cash flow rose by 53 per cent from a year earlier to $34.6 billion. Aramco “expects oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short- term global forecasts” Chief Executive Officer Amin Nasser said. The company is using the windfall to reduce debt and invest in a huge expansion of its production capacity, rather than boost payouts to shareholders. The Saudi Arabian state- controlled company kept its quarterly dividend, a crucial source of revenue for the kingdom, unchanged at $18.8 billion. That was unlike most Western majors, who increased payouts to shareholders. Aramco also reduced gearing, a measure of debt to equity, to 7.9 per cent from 14.2 per cent at the end of 2021. Energy companies boomed in the first half of this year. Russia’s invasion of Ukraine roiled markets, sending oil prices above $100 a barrel and causing refining margins to soar, while Aramco is benefiting from both high production and sales prices. Demand, meanwhile, continued to rebound from the coronavirus pandemic in most parts of the world. Firms such as Exxon Mobil Corp. and Shell Plc made record earnings in the second quarter. The quarter may mark a high point for Aramco. While Brent crude averaged $112 a barrel between April and June, it’s since fallen below $95 as the US and European economies slow and due to China’s Covid lockdowns.
  • 2. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 Still, Saudi Arabia is ramping up output along with other members of OPEC+, the producers’ cartel it leads alongside Russia. The kingdom pumped 10.5 million barrels a day of crude in the second quarter. It increased that figure to almost 11 million in July and is under pressure from the US and other major importers to go even higher, despite some analysts doubting it has much spare capacity. Aramco said it “continues to work on increasing crude oil maximum sustainable capacity from 12 million barrels per day to 13 million by 2027.” Aramco listed in Riyadh in 2019, though it’s still 98 per cent state owned. Its shares have gained 25 per cent this year, giving it a market valuation of $2.4 trillion. The company is scheduled to release a more detailed breakdown of its results, including the performance of its upstream and downstream units, on Monday.
  • 3. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 UAE to host World Green Economy Summit in September The National + NewBase The UAE will hold the eighth World Green Economy Summit at Dubai World Trade Centre next month as the country prepares to host the Cop28 gathering in 2023. Dubai Electricity and Water Authority and the World Green Economy Organisation will host the summit on September 28 and 29, in conjunction with the Water, Energy, Technology and Environment Exhibition and Dubai Solar Show, it was announced on Sunday. Apart from promoting a green economy, the summit plays a vital role in supporting the UAE’s efforts on climate action and its commitment to sustainability, the organisers said. "The WGES aims to change climate work into opportunities for development and economic diversity," said Saeed Al Tayer, vice chairman of the Dubai Supreme Council of Energy, managing director and chief executive of Dewa and chairman of the WGES. "The eighth WGES is especially important as the UAE is preparing to host Cop28 next year at Expo City Dubai." "The WGES provides the ideal and unique platform for exchanging experiences and aligning efforts that support the regional and global agenda for sustainable development." The summit comes amid the UAE's efforts to adopt green energy, promote sustainable development and strike a balance between economic growth and the sustainable use of environmental resources. The Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 for Dubai aim to provide 100 per cent of the emirate's total power capacity from clean energy "The World Green Economy Summit is a major supporter of the UAE's efforts and endeavours to achieve a balance between energy and the environment, and to map out the features of a
  • 4. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 sustainable future capable of transforming challenges into opportunities, in line with the provisions of the Paris Agreement on climate change,” Suhail Al Mazrouei, Minister of Energy and Infrastructure, said. The UAE has adopted a "comprehensive and balanced" approach to climate action through a "well- thought-out" transformation in the energy sector, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and UAE Climate Change Special Envoy, said. "The World Green Economy Summit is an important platform that supports the UAE’s direction and global efforts to adopt innovative green solutions that contribute to achieving a balance between economic and social growth and the sustainability of natural resources, as well as focus on renewable and clean energy solutions." The summit contributes to boosting the country’s competitiveness and reaffirming its global leadership in building a green economy, Mariam Al Mheiri, Minister of Climate Change and Environment, said. "As we gear up to host COP28 in 2023, we are keen to take meaningful steps in our climate action — most importantly, advancing the shift to a green economy," she said. "WGES is a leading global platform that drives climate and environmental action through convening decision-makers and experts to assess the progress made thus far in the transition to a green economy, explore the next steps, and expedite collective endeavours."
  • 5. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 Libya since 2011 has resulted in inconsistent crude oil production Energy Information Administration, International Energy Statistics and Short-Term Energy Outlook Libya’s crude oil production averaged nearly 1.2 million barrels per day (b/d) during 2021. In late December 2021, armed militants shut in an estimated 0.4 million b/d of crude oil production. In April 2022, protesters across the country began to blockade several major ports and oil fields in Libya, causing production to fall to around 0.5 million b/d by July 2022. According to our Libya Country Analysis Brief, Libya’s crude oil production has continually fluctuated because of armed conflict and political instability since Libya’s first civil war, which began in 2011. The 2014 elections in Libya led to a split government with two major opposing parties ruling different parts of the country. The internationally recognized Government of National Accord (GNA) governs the western region, and the Libyan National Army (LNA) governs the eastern region. The GNA, the LNA, and separate local militias have used oil exports as political leverage and caused disruptions to Libya’s oil production between 2014 and 2020. After the GNA and the LNA signed a ceasefire and lifted the restrictions on oil production and exports in October 2020, preliminary real GDP growth estimates rose 70% for 2021. Crude oil export revenues are a significant part of Libya’s economy. In 2021, oil
  • 6. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 revenues accounted for an estimated 98% of Libya’s total government revenues, according to Libya’s Central Bank. Real GDP growth fell 31% in 2020 as a result of the political conflicts between factions in the eastern and western regions; the oil export port blockades and pipeline shut-ins; and to a lesser degree, the economic slowdown during the global COVID-19 pandemic, according to a report from the World Bank. At the end of 2021, Libya held Africa’s largest proved oil reserves, at 48 billion barrels, representing 39% of the continent’s total reserves. Libya ranked in the top 10 countries for proved oil reserves, according to Oil and Gas Journal. Despite Libya’s large oil reserves, political conflicts and militia attacks on energy infrastructure have limited capital investments in the country’s oil and natural gas sectors. These challenges have also constrained exploration and development of its reserves since 2011. Although Libya is a member of OPEC, it is exempt from the production cuts under the April 2020 OPEC+ agreement because of Libya’s volatile political situation and constrained oil production.
  • 7. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 Russia Gazprom flows Gas to Hungary via Turkstream pipeline, Reuters + NewBase Russia's Gazprom (GAZP.MM) has ramped up flows to Hungary via the Turkstream pipeline that brings gas to Hungary via Serbia, a Hungarian foreign ministry official said on Saturday. European Union member Hungary has maintained what it calls pragmatic relations with Moscow since Russia's invasion of Ukraine, creating tensions with some European Union allies keen to take a tougher line. Hungary, which is about 85% dependent on Russian gas, firmly opposes the idea of any EU sanctions on Russian gas imports and Prime Minister Viktor Orban has also lobbied hard to secure an exemption from EU sanctions on Russian crude oil imports. Foreign Minister Peter Szijjarto met his Russian counterpart Sergei Lavrov in Moscow last month, seeking a further 700 million cubic meters of gas on top of an existing long-term supply deal with Russia. Under a subsequent agreement, Gazprom started ramping up gas flows to Hungary on Friday, Hungarian Foreign Ministry State Secretary Tamas Menczer said in a statement. Menczer said Gazprom would add 2.6 million cubic metres of additional gas per day to previously- agreed deliveries via Turkstream through August, with the amount of September deliveries being negotiated. Hungary's reserves stored 2.84 billion cubic metres of gas by the middle of July, the lowest level for that period over the past five years based on data by the national energy regulator. Under a deal signed last year, before the start of the war in neighbouring Ukraine, Hungary receives 3.5 billion cubic metres (bcm) of gas per year via Bulgaria and Serbia under its long-term deal with Russia and a further 1 bcm via a pipeline from Austria. The agreement with Gazprom is for 15 years, with an option to modify purchased quantities after 10 years.
  • 8. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 NewBase August 16 -2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil extends losses as weak demand outlook persists Reuters + NewBase Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed concerns of a global recession and the market monitored talks on a reviving deal that could allow more Iranian oil exports. Brent crude futures fell 84 cents, or 0.9%, to $94.26 a barrel by 0953 GMT. WTI crude futures dipped 45 cents, or 0.5%, to $88.96 a barrel. The oil future benchmarks fell about 3% in their previous sessions. China's central bank cut lending rates to try to revive demand as the nation's economy slowed unexpectedly in July after Beijing's zero-COVID policy and a property crisis slowed factory and retail activity. Oil price special coverage  Summary  China unexpectedly cuts key rates as economic data disappoints  Iran responds to EU nuclear text, seeks U.S. flexibility  Oil output in Permian Basin to rise to record high in Sept -EIA  Coming up: API data on U.S. oil stockpiles at 4:30 p.m. ET
  • 9. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 "In our view, problems in the real estate sector, plus the government's zero-COVID strategy, are likely to continue to weigh on the economy in the short to medium term, meaning that oil prices will probably face persistent headwinds from this side," Commerzbank said in a note. China's fuel product exports are expected to rebound in August to their highest in nearly a year after Beijing issued more quotas, adding pressure to already-shrinking refining margins. Investors also monitored talks to revive the 2015 Iran nuclear deal. More oil could enter the market if Iran and the United States accept an offer from the European Union, which would remove sanctions on Iranian oil exports, analysts said. Iran responded to the European Union's "final" draft text to save a 2015 nuclear deal on Monday, an EU official said, but provided no details. The Iranian foreign minister called on the United States to show flexibility to resolve three remaining issues. Barclays lowered its Brent price forecasts on Tuesday by $8 per barrel for this year and next, as it expects a large surplus of crude oil over the near-term due to "resilient" Russian supplies. In the United States, output in the major U.S. shale oil basins will rise to 9.049 million barrels per day (bpd) in September, the highest since March 2020, the U.S. Energy Information Administration (EIA) said in a report on Monday. In the Permian, the biggest U.S. shale oil basin, output will hit a record 5.408 million bpd, it said. Market participants awaited industry data on U.S. crude stockpiles expected later on Tuesday. Oil and gasoline stockpiles likely fell last week, while distillate inventories rose, a preliminary Reuters poll showed on Monday. OPEC, in contrast to IEA, sees lower 2022 oil demand growth OPEC on Thursday cut its 2022 forecast for growth in world oil demand for a third time since April, citing the economic impact of Russia's invasion of Ukraine, high inflation and efforts to contain the coronavirus pandemic. Summary:  World demand growth to slow to 3.1 million bpd in 2022  Contrasts with IEA, which raised its demand outlook  OPEC July output rises 162,000 bpd, less than pledged  Sees slightly higher U.S. shale growth in 2023
  • 10. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 The view from the Organization of the Petroleum Exporting Countries contrasts with that of the International Energy Agency, the adviser to industrialised countries, which earlier on Thursday raised its 2022 demand growth outlook. OPEC in a monthly report said it expects 2022 oil demand to rise by 3.1 million barrels per day (bpd), or 3.2%, down 260,000 bpd from the previous forecast. The IEA raised its forecast by 380,000 bpd to 2.1 million bpd. Oil use has rebounded from the worst of the pandemic and is set to exceed 2019 levels this year even after prices hit record highs. However, high prices and Chinese coronavirus outbreaks have eaten into OPEC's 2022 growth projections. read more "Global oil market fundamentals continued their strong recovery to pre-COVID-19 levels for most of the first half of 2022, albeit signs of slowing growth in the world economy and oil demand have emerged," OPEC said in its report. OPEC cut its 2022 global economic growth forecast to 3.1% from 3.5% and trimmed next year to 3.1%, saying that the prospect of further weakness remained. "This is, however, still solid growth, when compared with pre-pandemic growth levels," OPEC said. "Therefore, it is obvious that significant downside risk prevails." Oil prices held on to an earlier gain after the OPEC report was released, finding support from the IEA's view on demand and trading above $98 a barrel OPEC PUMPS MORE OPEC and allies, including Russia, known collectively as OPEC+, are ramping up oil output after record cuts put in place as the pandemic took hold in 2020. In recent months OPEC+ has failed to fully achieve its planned production increases owing to underinvestment in oilfields by some OPEC members and by losses in Russian output. The report showed OPEC output in July rose by 162,000 bpd to 28.84 million bpd, a smaller increase than pledged. OPEC's take on the outlook for 2023 suggests that the market could remain tight. OPEC left its 2023 world demand growth projection unchanged at 2.7 million bpd and expects supply from non-member countries to rise by 1.71 million bpd, meaning OPEC will need to pump around 900,000 bpd more to balance the market. While the 2023 outlook for overall non-OPEC supply was left steady, OPEC sees a slight acceleration in U.S. shale growth. Supply of U.S. tight oil, another term for shale, is expected to rise by 800,000 bpd in 2023, up from 740,000 bpd in 2022, although this year's forecast was revised down. Oil Demand Forecasts Aren’t as Bullish as They Seem Analysis by Julian Lee | Bloomberg Recent revisions to oil demand forecasts aren’t as bullish as they might appear. Don’t get too excited about prices going up just yet. The International Energy Agency, the US Energy Information Administration and the Organization of Petroleum Exporting Countries all updated their short-term outlooks in the past week. Two of them cut their demand estimates for both this year and next, with only the IEA breaking ranks to increase its forecasts.
  • 11. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 And it wasn’t just a minor tweak from the Paris-based agency. It revised oil demand higher for this year by a whopping 520,000 barrels a day, with most of that rolled forward into 2023 as well. On the face of it, that’s very bullish for oil. But there are plenty of reasons to be cautious. First, let’s compare the actual outlooks from the three sets of analysts and put them in their historical context. The IEA’s revision sets its new demand number for 2022 roughly halfway between those of the other two agencies. It also brings its outlook pretty much back to where it saw things in March. So, although the IEA’s revision was big, it’s not out of line with others. The other noticeable feature in the forecasts is that oil demand growth is disappearing fast, as the chart below illustrates. Global oil demand grew year on year by about 5 million barrels a day in the first quarter of the year — all three sources agree on that — but that increase is now evaporating. That’s not entirely unexpected when you consider year on year comparisons. Oil demand at the start of 2021 was still adversely affected by the Covid pandemic, so a rebound at the beginning of this year was entirely reasonable. Then economic activity and travel eventually picked up later in 2021, so we would expect demand growth in the corresponding quarters of 2022 to ease.
  • 12. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 It’s also worth looking in more detail at why the IEA boosted its demand forecast. It pins the revision on two factors. It sees increased demand for oil in power generation, particularly in the Middle East, where demand for electricity soars to keep air conditioners running full blast in the summer. Like 2021, this year has been hot. Daily temperature highs in Riyadh, Saudi Arabia have averaged more than 43 degrees Celsius (109 degrees Fahrenheit) since the start of June and aren’t expected to fall much before October. While this oil use in the Middle East will support demand for a while, it’s not likely to sustain it into the cooler months. Europe may be different. The IEA notes increases in the use of oil in power generation in Portugal, Spain and the UK, as well as in Japan.
  • 13. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 Oil has become attractive as an alternative fuel because gas prices have soared. But Europe is rapidly replenishing its natural gas stockpiles ahead of winter, with injections to storage running about nine weeks ahead of last year. And that’s with flows from Russia already severely curtailed. Analysts at Standard Chartered Plc see President Vladimir Putin’s gas weapon blunted by the inventory build, suggesting that Europe could soon be in a position to get through winter “comfortably” without Russian gas. More natural gas would reduce pressure on oil demand as an alternative. European Union countries finally reached a political agreement to cut gas use by 15% through next winter. The more they adopt aggressive energy-saving measures now, the less difficult the coming months will be. The problem is, contingency plans for reduced gas and power supplies to industry this winter will keep stoking demand for oil as long as fears of possible cuts remain. But that additional demand will come up against a deteriorating economic outlook. If soaring prices for fuel, food and just about everything else trigger a recession, as many analysts fear, the reduced economic activity could quickly send oil demand in the opposite direction.
  • 14. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 NewBase Specual Coverage The Energy world –August -16 -2022 CLEAN ENERGY Britain's first new coal mine in decades on the verge of approval The Telegraph + NEwBAse Michael Gove is on the cusp of approving Britain's first coal mine in decades as the Cabinet rallies behind a proposal to wean the country off Russian imports. The Housing Secretary is understood to be supportive of plans to open a Cumbrian colliery which will provide vital supplies for steel plants, senior Conservative party sources believe. Mr Gove's decision will now hinge on recommendations that have been handed to him by the Planning Inspectorate. An artist’s impression of the mining site near Whitehaven, Cumbria © West Cumbria Mining Company A source said: “I don’t know for certain, but I get the impression he [Mr Gove] is going to approve it.” Woodhouse Colliery, the UK’s first deep coal mine in 30 years, was given the go-ahead by local councillors in October 2020, but ministers launched an inquiry six months later after opposition from activists ahead of the Cop26 climate change conference. Boris Johnson said in November at the summit in Glasgow that he was “not in favour of more coal” but stopped short of outright opposition. Downing Street sources insist that the decision is for planning ministers alone. Nevertheless, Whitehall sources said that the Russian invasion of Ukraine has unified the Cabinet in favour of the plans.
  • 15. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 The mine will produce coking coal, an essential ingredient in steelmaking that will not be burned at power plants. Britain imported 40pc of its coking coal from Russia before the invasion of Ukraine. Mr Gove has until July 7 to make his final decision, but Whitehall sources said that it could come much earlier - potentially as soon as mid-May. Tata Steel and Chinese-owned British Steel have stopped importing Russian coking coal in the meantime. Both companies have found alternative supplies from mines in Wales, the US and Canada, Government sources said. Bosses at West Cumbria Mining, the site's owner, are believed to have been buoyed by feedback from the planning inquiry. An industry expert with knowledge of the project said: “It is clear the world has changed. Ukraine has reminded us that energy and commodity security is a primary duty of any state. “If the answer is more renewable energy, you simply can’t build renewable energy power plants – solar, tidal, hydro or wind – or nuclear, without steel. Without metallurgical coal, you can’t make steel. And you don’t want to be importing it from halfway around the world or Russia.”
  • 16. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 Despite significant government support for giving the mine the go-ahead, Mr Gove will be aware that his decision is likely to be subject to a legal challenge. To go against the recommendation of the Planning Inspectorate could weaken the Government’s position were it to go to the High Court, sparking further embarrassment for ministers. Earlier this month, judges quashed plans to build a Holocaust memorial outside Parliament – plans that had been subject to a planning inquiry and signed off by the then planning minister Chris Pincher. The housing department has been more interventionist under Mr Gove than his predecessors. Last week, it blocked plans to demolish and rebuild Marks & Spencer’s flagship Oxford Street store in London, saying that Mr Gove needed time to consider whether an inquiry should be launched. Mr Gove also sprung a surprise by blocking the building of Foster and Partners’ controversial Tulip tower in the City of London in November. Sources close to the deal said Mr Gove ultimately disagreed with the positive assessment by his predecessor Robert Jenrick. West Cumbria Mining declined to comment.
  • 17. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 Earlier this month, a spokesman said: “We look forward to a decision where the Government supports our project to build the world’s first net-zero mine to supply a new domestic source of metallurgical coal for Britain and Europe’s steelmakers.” Coal in Europe’s energy mix Coal accounts for about 20% of total electricity production in the EU. It also provides jobs to around 230,000 people in mines and power plants across 31 regions and 11 EU countries. While coal remains a primary fuel in the European energy mix, the transition to cleaner forms of energy and innovative technologies, such as carbon capture and storage, is imperative to meet the EU’s commitment to reduce CO2 emissions by at least 55% by 2030 and to become the world’s first climate-neutral bloc by 2050. Since 2012, total coal power generation has dropped by almost a third in the EU. The declining use of coal has caused mines to close down and power plants to be decommissioned in a number of regions across Europe. The graph below depicts the current state of play of national coal phase-out commitments in the EU. Supporting coal regions in transition The European Green Deal aims at making Europe the first climate-neutral bloc in the world by 2050. To help to achieve this goal, the Commission introduced in January 2022 the Just Transition Mechanism in its proposal for Regulation COM/2020/22. Alongside tailored financial and practical
  • 18. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18 support, it will help workers and generate the necessary investments to areas particularly affected, like the EU coal regions. Furthermore, the Commission provides tailored support to coal regions, peat and oil shale regions, either in the form of operational country teams or bilateral discussions with Commission experts. This support can help national and regional authorities to identify ways to initiate and implement the transition. This support is accompanied by existing EU funds, financing tools and programmes. The country teams work with national and regional authorities in regions chosen by EU countries to encourage the preparation of transition strategies and support the identification of priority projects. The Initiative for coal regions in transition To ensure that no region is left behind in this transition, the Commission also launched in 2017 the Initiative for coal regions in transition to help mitigate the social consequences of the low-carbon transition in coal, peat and oil shale regions of the European Union. The Initiative for coal regions in transition is an open forum that gathers all relevant parties, local, regional and national governments, businesses and trade unions, NGOs and academia to promotes knowledge-sharing and exchanges of experiences between EU coal regions. It represents a unique, bottom-up approach to a just transition, enabling regions to identify and respond to their unique contexts and opportunities.
  • 19. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19 NewBase Energy News 16 August 2022 - Issue No. 1539 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.
  • 20. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20
  • 21. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 21
  • 22. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 22
  • 23. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 23
  • 24. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 24