NewBase March 21-2022 Energy News issue - 1497 by Khaled Al Awadi.pdf

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NewBase Energy News 21 March 2022 No. 1497 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's ADNOC awards Dh2.4b in cementing services contracts
Gulf News + NewBase
The Dh2.4 billion for cementing services will apply to ADNOC's offshore and onshore fields. The
contractual tenure is for five years and with an option to extend by another two. The UAE energy
major ADNOC has signed ‘framework agreements’ valued at Dh2.4 billion for cementing services
to five companies, including :-
These cover ADNOC’s onshore and offshore fields and will run for five years with an option for a
further two years. Yaser Saeed Almazrouei, ADNOC Upstream's Executive Director, said: “The
awards for cementing services will support the ongoing expansion of ADNOC’s drilling activities as
we grow our production capacity, strengthening our position as a reliable global supplier of some of
the world’s most carbon efficient barrels.”
The latest awards take the value of ADNOC’s drilling-related framework agreements and
procurement awards since November 2021 to over Dh31.2 billion. These support ADNOC’s
requirement to “drill thousands of new wells as it increases its crude oil production capacity to five
million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for the UAE”.
ADNOC is optimizing all of its procurement processes to "reflect market dynamics, focusing on long-
term contracts with an optimized number of suppliers that provide stable and reliable delivery at
highly competitive rates".
Haliburton Worldwide Ltd. Abu Dhabi
Baker Middle East.
Emirates Western Oil Well Drilling & Maintenance Co.,
NESR Energy Services
Emjel Oil Field Services.

Saudi Arabia to start building green hydrogen plant in NEOM
BLOOMBERG + NewBass
Saudi Arabia will start construction of a green hydrogen plant as soon as this month as it pushes
ahead with plans to export the fuel in about four years. The NEOM project, called Helios, is led by
a consortium including Air Products and ACWA Power International
The kingdom is on track sell carbon-free
hydrogen from a $5bn project in NEOM
by 2026, according to Peter Terium, the
head of energy and water for the new
region. Engineers have finished
flattening the site in north-western Saudi
Arabia and US-based Air Products &
Chemicals will soon begin building the
facility, he said.
There will probably be demand from
companies from Asia to the US for the
exports, Terium said in an interview.
Hydrogen is seen as pivotal for the
transition to cleaner forms of energy.
“There’s a potential competition
between Europe, Japan, South Korea
and some parts of the US,” said Terium.
Shipments will be sold “to those who bid
the highest price.”
Saudi Arabia wants to be the world’s
biggest exporter of hydrogen. The fuel only emits water vapour when burned, making it less polluting
than oil, natural gas and coal. The technology for producing it on a mass-scale is still unproven, but
the market could be worth $700bn annually by 2050 if manufacturers can bring down costs,
according to BloombergNEF.
Riyadh believes demand for oil will remain high for decades and is spending billions of dollars to
increase its crude-production capacity. Yet Crown Prince Mohammed bin Salman aims to diversify
the economy, and hydrogen is an important part of his strategy.
State oil firm Saudi Aramco is leading the country’s efforts to make blue hydrogen, produced by
converting gas and capturing the carbon dioxide emissions. The NEOM project, called Helios, is led
by a consortium including Air Products and ACWA Power International, a Saudi utility. Green
hydrogen is manufactured with renewable energy.
The companies will use 120 Thyssenkrupp electrolysers, each of them about 40 meters long, to
split hydrogen from water. The fuel will be shipped from Saudi Arabia as ammonia, which is easier
to transport than hydrogen in gaseous form.
The plan is “gigantic in size and continuously gives you unknown challenges,” said Terium, who
used to be chief executive officer of RWE, Germany’s biggest utility.
The plant will be powered by around 4 gigawatts of solar and wind power, making it one of the
largest being built globally. The area was chosen because of its abundance of sunlight, wind and
empty land to place solar panels and turbines.

UK: Cuadrilla Resources comments on concreting up Britain’s
only shale gas wells… Source: Cuadrilla Resources
Cuadrilla has spent several months putting plans and contracts in place in order to plug and
abandon its two Lancashire shale gas wells, following a notice given to the Company by the Oil and
Gas Authority (OGA).
Francis Egan, CEO of Cuadrilla Resources, said:
'Cuadrilla has spent several months putting plans and contracts in place in order to plug and
abandon our two Lancashire shale gas wells. This follows a notice given to us by the Oil and Gas
Authority (OGA) that both wells must be plugged with cement by the end June. As it takes between
two and three months to complete the work we must start on site imminently.
Cuadrilla Resources comments on concreting up Britain’s only shale gas wells
'On Wednesday morning, I read in the newspapers that the Prime Minister had decided that
concreting up Britain’s only two shale gas wells, in the midst of an energy crisis and given his own
assessment that Europe is 'addicted' to Russian gas, would be a terrible idea. Later on Wednesday,
in the House of Commons, the Business Secretary said that 'it did not necessarily make any sense
to concrete over the wells' at the Preston New Road site in Lancashire. Unfortunately the
Government is failing to match its rhetoric with action.
'Since Wednesday BEIS and the OGA have been repeatedly contacted by and on behalf of Cuadrilla
to discuss how to give practical effect to the Prime Minister and Secretary of State’s
statements. The only clear and unambiguous response from these verbal and written contacts has
been verbal confirmation from the OGA that the 30th June remains the legal deadline to plug both

wells with cement. It is clear that OGA will be in no position to reverse that until it receives a clear
instruction from the Business Department.
'If the Prime Minister and Secretary of State’s words are to count, then officials must be instructed
to stop dragging their heels and frustrating the Government’s wishes.
'In the absence of any action to back up the rhetoric we have had to press ahead with preparing
and moving a rig to our PNR site to plug these wells.
'If the words from Downing Street and the House of Commons are to have any practical meaning I
urgently request the Business Department and the OGA to formally withdraw their instruction to plug
the wells.
They should also put sensible protections in place to ensure that companies like Cuadrilla and
others aren’t forced to suffer the risk and financial cost of operating in a position where a
Government can keep changing its mind and require wells to be cemented whilst they are eminently
useful.
'If we are serious about energy security, as a very basic, first step we must not concrete up these
wells, and then we need urgently to lift the shale gas moratorium and use these and additional wells
to produce domestic shale gas.'

UK: MPs call for all nuclear reactors to supercharge new nuclear
Source: Nuclear APPG
At least 15 GW of nuclear is essential by 2035 to strengthening energy security says Nuclear APPG
As Britain looks for ways to strengthen its energy security and wean itself off imported gas
the Nuclear APPG has outlined five steps for government to kickstart the UK’s nuclear revival.
The Prime Minister, this week, outlined his intention to make a ‘series of big new bets on nuclear’,
highlighting the need for baseload energy - power that can be relied upon when the sun isn’t shining,
or the wind isn’t blowing. Nuclear is clean, reliable and sovereign, and the APPG fully supports the
government’s intention of including announcements on Small Modular Reactors and large power
stations in its upcoming Energy Strategy.
The Nuclear APPG’s five points are:
 BE AMBITIOUS: Define a target in the Government’s Nuclear Roadmap for
Deployment of 15GW by 2035, and at least 30GW by 2050. This would show the
UK is serious and committed to fleet deployments of large, small and advanced
reactors
 GET THE FINANCING RIGHT: By Easter, classify nuclear as green in the UK
sustainable investment taxonomy and make nuclear eligible under the Green
Financing Framework
 ACCELERATE PROJECT TIMELINES: Get Sizewell C to Final Investment
Decision within 12 months, allocate pre-development funding to the
Bechtel/Westinghouse joint venture for Wylfa today, order 10 SMRs in this
Parliament, and advance other large and small scale projects
 GIVE DEVELOPERS ACCESS TO LAND: Give the Nuclear Decommissioning
Authority a mandate to lease unused nuclear sites to prospective developers, and
make it clear that private owners of potential sites must make land available for
nuclear development

 SUPPORT PROJECT DEVELOPMENT: Streamline the Development Consent
Order process and enable developers to carry out multiple planning, consenting
and licencing requirements concurrently, saving time without compromising on
standards. Give all relevant regulatory bodies a net zero obligation. Assign
additional money to the Future Nuclear Enabling Fund and publish details on
bidding criteria and process
Ian Liddell-Grainger MP, Chair of the Nuclear APPG said:
'A lot of focus is quite rightly on how we insulate ourselves from volatile imported
energy, and the Government is wise to look to nuclear energy to provide the
sovereign, reliable power we require to get to net zero. The five steps the Nuclear
APPG is setting out today would enable the UK to deliver such nationally critical
infrastructure as urgently as it is needed.'
Virginia Crosbie, Ynys Môn MP, said:
'The Wylfa site on Anglesey is the best place in the UK to house a new large nuclear
plant. I could not agree more that we need to be ambitious, and I fully support these
five steps. A statement of intent on that ambition would be the greenlight for Wylfa
along with other projects. Doing so will make a huge difference to our country’s future
and should be done without delay.'
Background
 The UK has six generating nuclear power stations, providing around 16% of the
country’s electricity.
 Nuclear power has saved the UK 2.32 billion tonnes of carbon emissions, far more
than any other source. The saving is equivalent to all UK emissions from 2015
through 2020.
 Three stations will retire by March 2024, and all but one will retire by 2030.
About the Nuclear APPG
The APPG on Nuclear Energy provides a forum for MPs and Peers to engage with
leading businesses and organisations that are working to enable the UK to meet its
decarbonisation targets through the implementation of civil nuclear projects, and to
discuss policy options to support these.
About the Nuclear APPG
It is a cross-party group of MPs and Peers that focuses on raising awareness of and
building support for nuclear energy projects that will enable the UK to meet
decarbonisation targets.

Belgium to Extend Life of Nuclear Reactors By Another Decade
Bloomberg) + NewBase
Belgium’s government will work to extend the life of two nuclear reactors beyond their original
shutdown date of 2025 to secure supply amid record high energy prices.
The energy ministry will negotiate with operator Engie SA to prolong the operation of Doel 4 and
Tihange 3 reactors for a further 10 years up until 2035, the federal government said in a statement.
It will submit the draft bill on extension to the Council of Ministers by the end of March and also
plans to spend 1.1 billion euros ($1.2 billion) to finance its transition to climate neutrality.
“This extension should allow to strengthen our country’s independence from fossil fuels in a chaotic
geopolitical context,” the government said.
Accelerated transition
The announcement comes as part of a plan by the energy ministry that includes measures to
accelerate transition to renewable energy for the country, which imports more than 90% of its
primary energy. It also marks a revision of earlier plans to shut nuclear reactors, a step also being
considered in Germany, in response to possible energy supply disruption after Russia invaded
Ukraine.
Belgium earlier foresaw a progressive closing of Engie’s seven nuclear plants -- which provide about
half of the country’s electricity -- by 2025, replacing them with a combination of new gas-fired power
stations, renewable power, battery storage and electricity imports. Engie, which will be expected to
submit a long-term plan for the reactors, had previously said that the timing set out by the Belgian
federal government isn’t compatible with the legal, regulatory and operational issues of such an
extension project.
The decision to extend the operational lifetime of the Doel 4 and Tihange 3 reactors raises significant
safety, regulatory and implementation constraints -- particularly since their operational lifetime would

be extended once work on dismantling the adjacent units would have already begun, Engie said in
a statement late last night.
“Engie will contribute to this rethinking and will work with the government on studying the feasibility
and the implementation conditions of the solutions envisaged at this stage,” it said.
Belgian Prime Minister Alexander De Croo told reporters late on Friday that the government has
always negotiated with Engie in a respectful manner and in the past found means to align interests
between the two.
“It is clear if we manage to extend beyond 2025, it will be a good thing,” De Croo said. “There is a
lot of work to do.”
Belgium will also invest 100 million euros over the next four years to develop nuclear energy through
small modular nuclear reactors, according to the plan.
Boosting Investment
Under its transition plan, the government will boost investment in offshore wind, hydrogen and solar
energy as well as cooperate with neighboring countries, while aiming to make Belgium a hub for the
import and transit of green hydrogen.
Meanwhile in Germany, which has long planned to exit atomic energy, the invasion of Ukraine has
prompted calls for delaying the nuclear phaseout.
EON SE and EnBW Energie Baden-Wuerttemberg AG said they’re willing to discuss a possible
extension of operations. While keeping the plants open past the 2022 closing deadline is technically
possible, the companies said they have no contracts to buy nuclear fuel after that and the
government may encounter a backlash from voters and environmental groups alike.
Oliver Krischer, a deputy German economy minister, welcomed that what he called “the five oldest
and most dangerous blocks” at Tihange and Doel will be shut down for good in 2023. But he
criticized Belgium’s move to extend the life of two of the reactors.
“On the other hand, it is incomprehensible to extend the term of two blocks by 10 years to 2035,”
he said Saturday in a tweet. Krischer, a member of the Greens party, represents the city of Aachen
-- which is approximately 90 kilometers from the Tihange facility -- in the lower house of parliament
in Berlin.

Russia complicated trade Role in Supplying Commodities to China
(Bloomberg + NewBAse
China and Russia’s trade relationship has become more complicated since the war started more
than three weeks ago, raising questions about the future flow of energy, metals and crops between
the two powerhouses.
Before the war in Ukraine, Russia’s importance to China as a supplier of raw materials was only
growing. That was solidified in the “no-limits” friendship announced between the two nations ahead
of the Winter Olympics in Beijing, which was celebrated with the signing of new deals to furnish
China with Russian oil, gas and wheat.
Immediately after the invasion, Chinese officials said they disagreed with unilateral sanctions and
would continue normal trade relations with Russia. But since then banks have paused financing
purchases and traders are grappling with logistics, while more recently China’s foreign minister said
Beijing doesn’t want to be affected by sanctions.
Here’s a look at where commodities trading with Russia stands and how it might play out.
Energy
The biggest trade opportunities may be in energy. The growth in its economy means China has an
ever-expanding need for coal and gas to heat homes and power factories. The nation is coal-rich
but still prone to shortages, and relatively gas-poor, making imports crucial for keeping up with
demand.
Russia is now the second-largest shipper of coal to China after Indonesia, while its gas exports
have grown considerably since the Power of Siberia pipeline began flowing in 2019. Crude

shipments have also ticked higher in recent years -- including pipeline oil, Russia was the No. 2
supplier to China in 2021, behind only Saudi Arabia.
Russian coal has helped fill the gap caused by China’s ban on Australian shipments since late 2020,
and more recent disruptions to cargoes from Mongolia and Indonesia. Moreover, the U.S. and
Australia supply China with a little over half of its imports of liquefied natural gas, which move by
ship, and that’s a dependency which Beijing has been trying to break.
But following the invasion, Chinese buyers, and the lenders that finance their purchases, have
largely shunned Russian shipments of coal and LNG as well as crude. That hesitancy may be
temporary given the unknown end-point of international action against Moscow. But it could also
reflect companies’ deeper concerns about becoming ensnared in sanctions that could affect global
banking arrangements, as well as the government’s fears over getting shut out of far more important
markets for Chinese goods.
“For any Chinese firm with substantial operations abroad, continued access to the U.S. financial
system is more valuable than any deals it can do with Russia, though some small firms may be
willing to run the risk,” Capital Economics said in a note last week.
Logistics are also an issue. Several Chinese coal importers and Russian miners met this month to
discuss boosting volumes, but cited several obstacles, including whether China's yuan-based cross-
border payment system will be usable, as well as issues with transportation capacity and coal
quality, according to the China Coal Transportation and Distribution Association.
For sure, China is committed to the long-term success of Russia’s biggest energy projects. Another
gas pipeline is under discussion, and Wood Mackenzie Ltd. estimates China’s oil and gas

investments in its neighbor at $24 billion, including stakes in the Yamal and Arctic LNG projects in
Russia.
There’s no way that China would follow international companies and exit its Russian energy assets,
said Neil Beveridge, a Hong Kong-based senior energy analyst at Sanford C. Bernstein. “China has
this huge growth opportunity for Russia.”
Under those circumstances, it’d be odd for
China to cut back on Russian LNG purchases
over the longer term. But the outlook for coal is
entirely different. Russian sales are almost a
rounding error compared to the 4 billion tons of
fuel that’s mined domestically, and Beijing’s
plan to raise the capacity of its coal industry by
300 million tons would suggest it’s seeking to
enhance its energy security by doing away with
imports entirely.
For crude, the calculation also revolves around
freight rates, and the high premiums attached to Russian shipments because of the war. There are
a lot of nations supplying China with oil, and even when prices are sky-high, that allows buyers to
be a bit more picky.
Grains
Rising transportation costs are also the likely impediment to Moscow expanding its grain sales.
Russia sells wheat to more than 100 countries, but China has been one of the few big markets it’s
struggled to crack. Until recently, shipments were limited because most Russian wheat was banned
due to fungus concerns.
In February, China gave the green light to import wheat from all over Russia as part of the raft of
deals sealed during Vladimir Putin’s visit to Beijing. The move was expected to challenge sales from
the likes of France, Australia, Canada and the U.S.
But even though the restrictions have been lifted, China is likely to continue importing from its usual
sources, said Darin Friedrichs, co-founder and market research director of Sitonia Consulting in
Shanghai.
“I don’t think it’s feasible to import huge amounts from new sources like Russia. They will have to
pay more,” he said.
Metals
For some metals, China’s dependency on Russia has only weakened in recent years. Indonesia
has emerged as its main supplier of nickel. And even though Russia’s share of refined copper
imports has risen, the expansion of China’s smelting industry means that the import of ore directly
from miners in places such as South America has become more important.
In any case, China is already buying most of Russia’s refined copper exports, according to a note
from UBS AG this week, which suggests the upside is limited.
For palladium, which is chiefly used to cut car pollution, Russia’s exports to China have increased
in recent years, and could theoretically rise further. A potential obstacle, according to UBS, is that
companies listed in Europe produce most of the catalytic converters sold in China, and they may
not want Russian supply.

EIA projects that renewable generation will supply 44% of U.S.
electricity by 2050 Source: U.S. Energy Information Administration, Annual Energy Outlook 2022 (AEO2022)
In our Annual Energy Outlook 2022 (AEO2022) Reference case, which reflects current laws and
regulations, we project that the share of U.S. power generation from renewables will increase from
21% in 2021 to 44% in 2050.
This increase in renewable energy mainly consists of new wind and solar power. The contribution
of hydropower remains largely unchanged through 2050, and other renewable sources of power
generation, such as geothermal and biomass, collectively remain less than 3% of total generation.
Note: Biofuels are both shown separately and are included in petroleum and other liquids.
In the AEO2022 Reference case, we project that the contribution of total solar generation, including
both utility-scale solar farms and small-scale rooftop end-use systems, will surpass wind generation
by the early 2030s. Early growth in wind and solar is driven by federal tax credits set to expire or
significantly decline by 2026, but declining costs for both technologies play a significant role in both
near- and long-term growth.
Meanwhile, we project the total share of U.S. fossil fuel-fired power generation decreases from 60%
to 44% in the AEO2022 Reference case as a result of the continued retirement of coal generators
and slow growth in natural gas-fired generation. Although natural gas-fired generation increases in
absolute terms, the share of natural gas in the total generation mix decreases slightly, from 37% in
2021 to 34% in 2050.
In our Reference case projections, the natural gas share remains consistent despite several
projected retirements of coal and nuclear generating units, which cause the shares from those
sources to drop by half. Generation from renewable sources increases to offset the declining coal
and nuclear shares, largely because existing regulatory programs and market factors incentivize
renewable sources.
Energy storage systems, such as stand-alone batteries or solar-battery hybrid systems, compete
with natural gas-fired generators to provide electric power generation and back-up capacity for times
when nondispatchable renewable energy sources, such as wind and solar, are unavailable.
Because energy storage shifts energy usage from one time to another and is not an original fuel
source of energy, we do not included it in the generation graphic in this article. Based on planned
projects reported to us, energy storage capacity is expected to increase in upcoming years.

NewBase March 21-2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil climbs on pressure from Ukraine conflict, tight market
Reuters + NewBase
Oil prices jumped $3 on Monday as Ukrainian forces dug in against heavy Russian attacks, while
major oil producers reported they are struggling to produce their allotted quotas under a supply
agreement.
Brent crude futures climbed $3.08, or 2.85%, to $111.01 a barrel at 0451 GMT, adding to a 1.2%
rise last Friday. U.S. West Texas Intermediate (WTI) crude futures rose $3.18, or 3%, to $107.88,
extending a 1.7% jump last Friday.
Oil price special
coverage

Prices moved higher after Ukraine's deputy prime minister, Iryna Vershchuk said early on Monday
there was no chance that the country's forces would surrender in the besieged eastern port city of
Mariupol. read more
With little sign of the conflict easing, the focus returned to whether the market would be able to
replace Russian barrels hit by sanctions.
"The market continues to fret about supply disruptions, with data suggesting they are already
impacting," ANZ analysts said in a note.
The latest report from the Organization of the Petroleum Exporting Countries and allies including
Russia, together called OPEC+, showed some producers are still falling short of their agreed supply
quotas.
OPEC+ missed its production target by more than 1 million barrels per day (bpd) in February, three
sources told Reuters, under their pact to boost output by 400,000 bpd each month as they wind
back sharp cuts made in 2020. read more
The two OPEC countries that have the capacity to instantly raise output, Saudi Arabia and the
United Arab Emirates, have so far resisted calls from major consuming nations to step up production
faster to help drive down oil prices.
The poor supply outlook and high prices prompted the
International Energy Agency on Friday to outline ways to cut oil
use by 2.7 million bpd within four months - including car-
pooling, lower speed limits and cheaper public transport.
That would help offset the 3 million bpd of Russian crude and
products that the IEA estimated would be off the market by
April.

NewBase Special Coverage
The Energy world –March -07 -2022
CLEAN ENERGY
IEA Proposes A 10-Point Plan to Reduce / Cut Oil Use
In the face of the emerging global energy crisis triggered by Russia’s invasion of Ukraine, the
IEA’s 10-Point Plan to Cut Oil Use proposes 10 actions that can be taken to reduce oil demand with
immediate impact – and provides recommendations for how those actions can help pave the way
to putting oil demand onto a more sustainable path in the longer term.
1. Reduce speed limits on highways by at least 10 km/h
 A country-by-country and state-by-state analysis shows that
a reduction of speed limits on highways by 10 km/h relative to
current levels can significantly reduce fuel consumption for
cars, light commercial vehicles and trucks.
 Speed limits on highways vary widely among countries but
are typically in the range of 100 km/h to 135 km/h. For
example, average speed limits on urban and rural interstate
highways in the United States are around 110 km/h. In the
European Union, speed limits vary between 100 km/h and 140
km/h – except in Germany, which has no speed limit on some highways.
 A reduction in speed limits can be implemented by national governments; many countries did
so during the 1973 oil crisis, including the United States and several European countries. Today,
many countries use temporary speed limit reductions on highways, mostly to reduce congestion
and/or air pollution and to improve road safety. They are also frequently adopted within cities
to combat local air pollution
Impact: Around 290 kb/d of oil use can be saved in the short term through a speed limit reduction of
just 10 km/h on motorways for cars. A further 140 kb/d (predominantly diesel) can be saved if heavy
trucks reduce their speed by 10 km/h.
2. Work from home up to three days a week where possible
 Before the pandemic, the use of private vehicles to commute
to work in advanced economies was responsible for around 2.7
million barrels of oil use a day. Yet, around one-third of the jobs in
advanced economies can be done from home, opening up the
possibility of reducing oil demand while maintaining productivity.
 The impact of working from home on oil consumption varies
widely by region, depending on the distance of the commute and
average fuel consumption of the car. In the United States, the
average one-way commute by car is around 18 kilometres, and
over three-quarters of car commuters travel alone, according to the US Census Bureau. In
Europe, the average one-way car commute is around 15 kilometres. Differences in the fuel
economy of vehicles further affect the variations among countries. For example, a new car in the

United States consumes around 40% more fuel than one sold in Europe for a trip of the same
length.
 There is an additional seasonal element to the impacts of working from home due to the use of
air conditioning in cars (see Point 6). As the weather gets warmer, air conditioning systems
increase the amount of fuel used by cars. Therefore, working from home tends to save more oil
during the summer months.
 During confinement periods triggered by the pandemic, many countries implemented
requirements for people to work from home for activities where it is possible. While most of
those requirements have been lifted, some governments such as France are encouraging
working from home without a minimum weekly quota. The employer has the flexibility to set
the terms and conditions while keeping an eye on preventing social isolation. Working from
home up to three days per week would cut oil demand and could reduce fuel bills. We estimate
that avoiding an average daily commute by car currently saves around USD 2 to USD 3 each time
in advanded economies.
Impact: One day of working from home can avoid around 170 kb/d of oil use. Three days of working
from home avoids around 500 kb/d in the short term.
3. Car-free Sundays in cities
Car-free Sundays were introduced in countries such as Switzerland, the
Netherlands and West Germany during the 1973 oil crisis. Brussels,
Edinburgh, Vancouver, parts of Tokyo and other cities have used them more
recently to promote public health, community-oriented spaces and cultural
events. More than 3 000 towns and cities registered for the European
Mobility Week in 2021, which included a commitment to a car-free day.
 Car-free Sundays help support the uptake of walking and cycling, which
can generate a positive spillover effect throughout the week. This can in turn
be supported by fare reductions or the provision of free public transport.
 Banning the use of private cars on Sundays brings a number of additional benefits to public
health and well-being, including cleaner air, reduced noise pollution and improved road safety.
In warmer climates, reduced traffic can also reduce urban “heat-island” effects. The measure is
also relatively straightforward to enforce using spot fines and road closures.
Impact: Avoids around 380 kb/d of oil use in the short term if implemented in large cities every
Sunday. If only one Sunday per month, the amount drops to 95 kb/d.
4. Make the use of public transport cheaper and incentivise micro-mobility,
walking and cycling
 An effective way to reduce oil demand is to shift travel
demand away from private cars to public transport, micro-
mobility options, walking or cycling wherever practical.
 Where public transport exists, a short-term temporary
response can be to reduce fares for public buses, metro and light
rail. Trial initiatives, including in some US cities, have shown that
reduced or free public transport fares result in increased

ridership. New Zealand, for instance, is halving public transport fares for the next three months
in response to high fuel prices. Public transport systems’ available spare capacity during peak
travel periods differs by country and city. However, there is typically spare capacity available in
off-peak periods that can be used to “spread” the peak if employers simultaneously provide
flexibility in working hours.
 In countries where it is culturally acceptable, cycle lanes and pavement-widening strategies
exist or can be made available quickly. And where distances are sufficiently short, encouraging
people to walk or cycle can be a complementary measure. In cities with available public
transport, this can help make public transport less crowded and therefore more attractive and
accessible. Rolling out programmes to incentivise the purchase of electric bikes can also be
effective, particularly in cities where journeys involve larger distances. Belgium, France and Italy
offer residents an allowance to buy a bicycle, with the amount depending on bicycle type.
Boosting shared micro-mobility options such as electric kick scooter or electric bicycles can also
help – Lime, Bird or Dott are some examples of app-based providers that already provide this
service in major cities.
 Investment in public transport and infrastructure to support walking and cycling has been
boosted by sustainable economic recovery packages introduced in response to the Covid crisis.
For example, the French government allocated EUR 500 million to an “active mobility fund” to
build cycling itineraries, and Italy supports the design and development of cycle highways (EUR
50 million per year for the next three years). New Zealand enacted a nationwide cycle lane
investment drive in 2020 of over USD 140 million in direct government spending by 2024. In
2021, Milan repurposed 35 kilometres of road previously used for motor traffic into cycling
lanes and aims at achieving 750 kilometres of segregated lanes by 2035. Several cities – such as
Paris, London and Brussels – created very low speed zones (30 km/h) to discourage car use.
When the summer months approach, cycling becomes more popular and can be further
encouraged.
 Overall, governments in advanced economies are set to spend around USD 2.5 billion in the next
two years on cycle lanes and pedestrian walkways, and a further USD 33 billion in urban
transport infrastructure as part of economic recovery packages.
Impact: Short-term measures where feasible and culturally acceptable can avoid around 330 kb/d of
oil use.
5. Alternate private car access to roads in large cities
 Restricting private cars’ use of roads in large cities to those
with even number-plates some weekdays and to those with odd-
numbered plates on other weekdays is a measure with a long track
record of successful implementation. During the first oil shock, the
Italian government substituted car-free Sundays with an odd/even
number plate policy. Since the 1980s, such schemes have been
deployed in many cities to tackle congestion and air pollution
peaks, including Athens, Madrid, Paris, Milan and Mexico City.
 Implementation of restrictions based on number plates
typically hinges on the availability of other options to satisfy travel
demand. They can pose logistical or fairness concerns, especially
as they are most disruptive for less wealthy single-car households. These concerns can be
mitigated by the other measures that we propose, such as reducing the price of public transport

or promoting carpooling. Exceptions can be made for electric vehicles. The measure’s
effectiveness in reducing car activity may fall in the longer term if wealthier households buy
additional internal-combustion engine cars to circumvent it.
 Households that own multiple cars may be able to circumvent the restrictions, but this effect
and others (such as the remaining cars allowed on roads making longer multipurpose trips) are
factored into our estimates of the potential reduction in oil demand.
Impact: A reduction of around 210 kb/d of oil in the short term if alternate car access is applied on two
days per week in large cities with good public transport options.
6. Increase car sharing and adopt practices to
reduce fuel use
 Car users from different households can choose to
carpool for non-urban trips, reducing oil demand and
saving money at the same time. Governments can provide
additional incentives by designating dedicated traffic lanes
and parking spots next to public transport hubs and by
reducing road tolls on higher occupancy vehicles. Such
measures are in force in suburban areas of cities like
Madrid and Houston, among others.
 Non-urban car trips are responsible for over 4 million
barrels a day of oil use in advanced economies. Currently, very few of these trips involve the
pooling of people from different households, which results in lower levels of car occupancy. The
average car occupancy in Japan is 1.3 people per car; in the United States, it is around 1.5 per
car; in Europe, it is between 1.4 and 1.6 per car. Across advanced economies, the average is
around 1.5.
 Organising carpooling is more practical today than it was in the past. Several smartphone apps
are available, including BlaBlaCar, Liftshare, Scoop, TripBuddy, ecov and GoKid. The carpooling
market has grown by over 10% annually in recent years, although the Covid pandemic has
reversed this trend since 2020 due to health concerns.
 A higher average car occupancy rate can be interpreted either as an indication that carpooling
in certain regions is more viable (e.g. culturally, technically, habitually) or as an indication of
lower capacity for additional carpooling. Governments will need to take this into account when
deciding upon the measures to take to incentivise carpooling.
 Cars can also be used more fuel efficiently by adopting best practices both in driving and
maintenance. For example, regular tyre pressure monitoring can save up to 1.5% of fuel use. In
addition, air conditioning in cars typically accounts for 4% to 10% of total fuel consumption in
advanced economies, depending on the local climate and comfort preferences. For those car
users who can, we therefore propose a temporary 3 °C increase in the temperature setting to
give an immediate improvement in fuel economy and cut fuel bills.
Impact: An increase of around 50% in the average car occupancy across advanced economies in 1-in-
10 trips and adopting best-practices to decrease car fuel use can save around 470 kb/d of oil in the
short term.

7. Promote efficient driving for freight trucks and delivery of goods
Vehicles can be driven to optimise fuel use. The possible
measures span a wide range and can include improved
vehicle maintenance (such as regular checks of tyre
pressure) as well as driving habits. Governments can
introduce so-called eco-driving techniques as part of the
tuition and examination processes required to receive a
driving license and advanced driving certificates, as has been
done in France and other countries. Broader public
information campaigns can supplement these targeted
efforts.
 Companies with vehicle fleets – such as for the delivery of goods – are particularly well placed
to provide training and awareness campaigns to promote eco-driving of commercial vehicles,
cutting into diesel use in particular, given the structure of their fleets. Additionally, lower
demand for very short delivery times can contribute to increasing the overall fuel efficiency of
logistics during last-mile delivery. Besides reducing diesel use, eco-driving can also help reduce
fuel bills and vehicle maintenance costs.
 Trucks are major consumers of diesel, and so improving the efficiency of their operations can be
an important contributor to reducing oil use. Readily accessible measures for the next four
months can be in improving logistics: truck companies can optimise vehicle loads and reduce
empty travelling. Cooperation between companies and widespread use of digital technologies
can help achieve these goals.
Impact: These measures can avoid around 320 kb/d of oil use in the short term.
8. Using high-speed and night trains instead of planes where possible
 Where high-speed rail lines connect major cities at distances
under 1 000 km, trains provide a high-quality substitute for short-
distance flights. High-speed rail can substantially replace short-
haul air travel on routes that offer affordable, reliable and
convenient train journeys. The use of night trains can be a means to
cross wider distances in particular and spread traffic across
different times of the day.
 Based on existing high-speed rail infrastructure, around 2% of aviation activity in advanced
economies could be shifted to high-speed rail, including for leisure as well as business travel.
Almost all of this involves flights of less than 800 km.
 Rail services must be operated and serviced efficiently to get widespread acceptance as an
alternative to flights. In that case, high-speed rail can not only reduce oil demand and emissions
from short-haul flights – it can also be faster and more comfortable, reliable and affordable. Rail
stations are often located in or near city centres, making them more convenient and sustainable
than airports.
 In France, the recent Climate and Resilience law requires the cancellation of flights if alternatives
exist to reach the destination within two-and-a-half hours. Companies have already started to
cut some flights, including between Paris and cities such as Nantes, Lyon and Bordeaux.
Impact: Avoids around 40 kb/d oil use in the short term.

9. Avoid business air travel where alternative options exist
 Given the space requirements in planes, the journeys of passengers
in premium classes consume three times more oil than those in
economy class. Although not all business travel by plane can be
avoided, in many cases the use of virtual meetings can be an effective
substitute. A significant reduction of around two out of every five
flights taken for business purposes is feasible in the short term, based
on the notable changes witnessed during the Covid pandemic.
 In response to the pandemic, virtual business interactions have
become more common. Many companies have invested heavily in
enhancing the experience of remote meetings, making this a more effective, acceptable and
viable substitute to business flights and direct human engagement. Businesses continued
operations – and in some cases thrived – despite having to make this major adjustment.
 Several major corporations – such as HSBC, Zurich Insurance, Bain & Company and S&P Global
– have already announced targets to cut their business travel emissions by as much as 70%.
Reducing business travel can play a role in meeting ESG goals and help reduce corporate carbon
footprints.
 Before the outbreak of the pandemic, about one-fifth of passenger trips by plane in advanced
economies were for business purposes. Business travel was hit harder than other categories of
passenger air travel during the pandemic, dropping to historic lows. High oil prices may
disincentivise airlines to operate underutilised routes in response to reduced business travel.
But, to maximise the impact, governments can provide flexibility on flight slot allocations so as
to minimise the occurrence of ghost flights.
Impact: Avoids 260 kb/d of oil use in the short term.
10. Reinforce the adoption of electric and more efficient vehicles
 By the end of 2021, 8.4 million electric cars were on the
roads in advanced economies, building on record sales in Europe
in particular. Demand for electric cars continues to be strong, on
the back of plummeting costs of batteries in recent years and
government support. However, supply chain bottlenecks in
semiconductors, vehicle raw materials, and battery materials and
manufacturing are putting strains on the market. The impacts are
likely to be felt longer term, but facilitating logistical coordination
to shore up flows of materials and components is a near-term
priority so that disruptions in some parts of the automotive
supply chain can be absorbed by less-affected manufacturing capabilities elsewhere in the global
market.
 The near-term priority is to ensure successful delivery of car orders to consumers. Where
possible, fleet orders may be prioritised, as their impact on moderating oil demand is larger than
for households with multiple cars.
 Actions taken now to hasten the adoption of electric vehicles will have a sustained effect in the
future. Similarly, new conventional vehicles sold must be fuel-efficient; fuel economy targets as

well as taxes that penalise high-emissions vehicles are key for supporting further fuel economy
improvements. Enforcing existing regulation and supporting them via awareness campaigns is
central to reaping benefits in the near term.
Impact: Avoids more than 100 kb/d of oil use in the short term, building on expected sales of electric
and more fuel-efficient cars over the next four months. Sustained action on supply chains and policy
support can help secure further savings.
Longer term
Reducing oil use must not remain a temporary measure. Sustained reductions are desirable in order
not only to improve energy security but also to tackle climate change and reduce air pollution.
Governments have all the necessary tools at their disposal to put oil demand into decline in the coming
years, which would support efforts to both strengthen energy security and achieve vital climate goals.
Retaining those elements of this 10-Point Plan to which societies can more easily adapt and that
consumers can integrate into their daily habits can help temper oil demand growth beyond the peak
demand season. But governments must also consider accelerating their clean energy transitions and
building on their net zero emissions strategies. To reach net zero emissions by 2050, oil demand in
advanced economies in 2030 must be more than 15 million barrels a day lower than in 2021.
Many measures that accelerate clean energy transitions in oil-consuming sectors can have a material
impact on oil use already over the next two to three years, even if their impact will be felt more strongly
a few more years down the road. But decisions need to be taken now for them to materialise. We
identify a set of key actions that can be taken now, prioritising those that can help advanced economies
to put oil demand into a noticeable decline in the medium-term. The measures are lasting: more oil
demand reductions can be expected for years to come, in line with the need to cut global oil use to reach
net zero emissions by 2050. Key actions include:
 Prioritise support to electric vehicles and unblock supply chains: Most of the new EVs sold
between now and the summer have already been ordered, but sales can be further boosted in
the subsequent months and years by providing targeted government support to car sales and
the roll-out of the necessary infrastructure. Electric car sales in the IEA’s Net Zero by 2050
scenario reach 28 million in 2030 in advanced economies, up from 3.2 million in 2021. There is
also large untapped potential for increased sales of electric buses and short-haul electric freight
trucks. Accelerating long-term investment in supply resiliency will be critical to ease supply
chain constraints for key inputs to electric cars.
 Significantly raising the ambition of fuel economy standards for road vehicles: Sales of
electric cars are rising and ambitious fuel economy and/or CO2 emissions standards are in place
in many countries. Yet sales of SUVs also keep increasing, with the vehicles accounting for nearly
10% of oil use in advanced economies. Policies to address the rise in sales of such vehicles – such
as specific registration and road taxes – are key to achieve steady overall fuel economy progress
and oil savings. The fuel economy of trucks must also be improved further; policy is critical even
if many measures (such as aerodynamic devices installed at the rear of trailers to reduce drag)
can be cost-effective at current oil prices.
 Boosting the supply of alternative fuels: Availability of sustainable feedstock is a key
constraint on the additional amount of biofuels that could be blended into the oil product pools
in the near-term without harming food markets. But there is potential for increased use of waste
cooking oil and animal fat for biodiesel production by maximising industrial output and non-

food feedstock collection. Synthetic fuels (such as hydrogen and ammonia) are not expected to
reduce oil use noticeably in the near-term, but RD&D programs should be accelerated to help
diversify future supply. Cleaner fuels account for around one-sixth of road transport use by 2030
in advanced economies in a scenario compatible with IEA’s Net Zero roadmap; additional needs
are in shipping and aviation.
 Accelerate the replacement of oil boilers with heat pumps and ban installation of new
ones: In advanced economies alone, more than 3.5 million barrels a day of oil are used today to
heat homes, shops and offices, and to meet heat demand and run engines in light industries such
as food and beverages, machinery, and mining. Most of these uses of oil can be replaced by heat
pumps and renewables. An additional 5.5 mb/d of such uses are in emerging economies and
developing countries.
 Increase plastic waste collection, re-use and recycling: Many products made from plastic are
‘single use’ – some for good reason (e.g. certain medical supplies) and some more for
convenience (e.g. plastic bottles, cutlery and food containers). Measures targeting their
reduction have a relatively modest impact on oil demand in the short term, but they lay the
groundwork for larger reductions and can make an important contribution to addressing the
problem of mismanaged plastic waste. Existing plastic recycling facilities can be further utilised
to boost recycling rates, supported by enhanced waste management infrastructure. We also
estimate that collection rates can be increased by around one percentage point per year in
advanced economies in the coming years, alongside incremental increases in yield and
substitution rates, which increase the extent to which plastics recycling reduces oil demand.

NewBase Energy News 21 March 2022 - Issue No. 1497 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 March 21-2022 Energy News issue - 1497 by Khaled Al Awadi.pdf

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