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NewBase Energy News 04 August 2021 - Issue No. 1447 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E Masdar in pact with US company to turn desert air into
water in Abu Dhabi
The National Deena Kamel
A US-based technology company is sourcing water from the desert by extracting moisture from air
using clean energy at Abu Dhabi's Masdar City as part of the UAE's efforts to produce clean water
in a more sustainable way.
Aquovum will produce commercial volumes of uninterrupted water supply using solar and thermal
energy in a pilot project run by the company, in partnership with Masdar and the Khalifa University
of Science and Technology, the companies said on Sunday.
The project is part of a three-party research and development agreement between the entities.
Developing technology that both protects and guarantees a constant and secure source of water is
"of utmost importance", said Abdulla Balalaa, executive director of sustainable real estate at Masdar
City.
“The project will positively contribute to regional and global water security in line with the UAE Water
Security Strategy 2036," he said. The project could offer a model for other countries with arid
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climates to produce clean water in a more sustainable way and even spur agricultural breakthroughs
to improve food security.
The UAE, which along with other Gulf economies relies heavily on desalination for potable water, is
registering an uptake in atmospheric water generation, or AWG, to supplement clean drinking water
in homes and institutions.
AWG produces drinking water directly from air by condensing the water molecules below dew point.
The project, which begins this month, will evaluate the performance of Aquovum's large-format
AWG technology in combination with a renewable energy source, as well as its ability to be included
in current or future sustainable water projects.
“To support ... the global green transition and to ensure water security, we recognised that we must
power our systems on 100 per cent renewable energy to provide a truly sustainable water supply,"
said Robert Wood, chief technology officer of Aquovum.
"Our bleeding-edge technologies work with nature and are the way forward to deliver lasting,
sustainable solutions.”
The AWG technology will also contribute to a market that is expected to grow by a compound annual
rate of more than 25 per cent globally and by more than 30 per cent in the Middle East and Africa
alone, a region with some of the world’s harshest climates, where water is needed the most,
according to Global Market Insights.
“Previously, we have focused
on concentrated solar power
and thermal energy storage,
and we are diversifying our
research and development
activity at the Masdar Institute
Solar Platform with clean
production of fresh water,"
said Nicolas Calvet, assistant
professor in the Mechanical
Engineering Department at
Khalifa University, founder
and chairman of the Masdar
Institute Solar Platform and
principal investigator of the
project.
"Solar and water should be
the main pillars of research
and development in the UAE," he said.
The project, which will run for 12 months, will provide valuable performance data for a full-year’s
weather cycle, he said. The green power will be provided by a thermal energy storage unit of Azelio
AB.
"Technology that extracts clean water from the air in commercial volumes and operates using clean
energy will help in securing and developing all life sources and serving the national interests," said
Mohamed Al Qubaisi, chief executive of Aquovum Middle East.
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U.A.E Mubadala and BDT purchase of water firm Culligan
The National - Shweta Jain
Mubadala Investment Company, its asset management subsidiary Mubadala Capital, and private
equity firm BDT Capital Partners said on Monday they closed the deal to acquire sustainable water
solutions provider Culligan International.
BDT acquired a majority interest in Culligan from Advent International and Centerbridge Partners in
a transaction that was announced in May, in which Mubadala provided a significant capital
commitment as an anchor partner.
Advent will retain a minority stake in Culligan, Mubadala said in a statement, without disclosing
financial terms of the deal. “We are pleased to have Mubadala invest alongside us in this transaction
given their global presence, long-term capital and our deep relationship with them since the founding
of BDT,” San Orr, president of BDT Capital Partners, said.
“[The deal] pairs well with our interest in profitably investing in businesses where ESG [environment,
social and governance ... norms] is at the core of their value proposition to the market, namely the
delivery of clean drinking water on a global basis and reducing the use of single use plastic bottles
through innovative water solutions, among others,” Adib Mattar, head of private equity at Mubadala
Capital, said.
Illinois, US-based Culligan sells products and services for water filtration and treatment and has
more than 35 brands in 90 countries.
Culligan Middle East operates through facilities in Abu Dhabi, Dubai, Sharjah and Qatar. The
company established a presence in Dubai more than 20 years ago and has since become one of
the most diverse water treatment companies in the Gulf region.
In 2014, Culligan Middle East opened a manufacturing facility in Dubai Techno Park. The 10,000-
square metre site is a purpose-built, integrated manufacturing, sales and service centre housing
facilities for equipment fabrication, chemical blending and water bottling.
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Oman 1st phase of mega crude storage park set for Q1 2022 launch
Oman Observer - @conradprabhu
Phase 1 of a world-scale Crude Oil Storage Terminal, currently nearing completion at Ras Markaz
on the Sultanate’s southeastern coast, is slated to come into operation in the first quarter of 2022.
Strategic project: Plan to link Raz Markaz terminal with Main Oil Line under study,
Developed by Oman Tank Terminal Company (OTTCO), a wholly-owned subsidiary of OQ — the
Sultanate’s integrated energy group — the facility will position the Sultanate as a global hub — for
the first time — for all kinds of local, regional and international crudes.
According to a high-level executive of OTTCO, marine works at the Raz Markaz Crude Oil Park
were completed in the first quarter of this year, with landside infrastructure reaching the 70 per cent
completion mark as of June-end this year.
“The infrastructure required to store crude oil during the first phase is almost ready, and operations
are expected to start in Q1 of 2022,” Eng Salim bin Marhoon al Hashmi, Project General Manager,
said in an interview published in the latest edition of ‘Duqm Economist’, the quarterly newsletter of
the Public Authority for Special Economic Zones and Free Zones (OPAZ).
An array of huge tanks has been constructed at site, offering up to 25 million barrels of storage
capacity in the first phase of the project. When fully built, in increment stages over several years,
the facility will offer a world-leading 200 million barrels of storage capacity.
A total of 40 sq kilometres has been earmarked for the entire park, up from the present area of
about 10 kilometres under development for the first phase.
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OTTCO’s CEO Ard Van Hoof was quoted as stating that the storage terminal, located just 80 km
south of the Special Economic Zone (SEZ) at Duqm, adds another strategic element to Duqm’s
importance as an integrated energy and economic hub.
Overlooking the Arabian Sea and the Indian Ocean beyond, the storage park’s geographically
advantageous location — far removed from the contentious Strait of Hormuz — will open up
opportunities for regional and international oil traders to store their volumes on a short-term and
long-term basis, he said.
“We aspire to become the largest crude oil storage project in the Middle East to serve as an
important global crude oil storage centre due to the strategic location of Ras Markaz on the Arabian
Sea, overlooking the Indian Ocean. The Park will meet the markets’ needs, connecting the markets
in South Asia, Far East and Africa.
The project will contribute in the long-term to place the Sultanate as a major centre for storing bulk
and liquid products in the region,” he told the newsletter.
In addition to serving as a
storage hub, imported
crude as feedstock for
the greenfield refinery of
OQ8 (formerly known as
Duqm Refinery) – a
partnership of OQ and
Kuwait Petroleum
International – will be
channelled to the
refinery via an 80-km
pipeline already in place.
Giant tanks, built at a
height of 110-metres
above sea level, will
allow for its crude oil
contents to flow by
gravity for loading into ships anchored a few kilometres offshore. But when tankers arrive at Raz
Markaz to unload their cargoes, a series of four heavy-duty pumps will be activated to pump the
crude to the tanks on the hilltop.
Going forward, however, OTTCO plans to build a new pipeline connecting the Main Oil Line (the
country’s principal crude export pipeline) with Ras Markaz, thus opening up another export terminal
for Omani crude.
“We have started, in cooperation with international consulting companies, preparing pre-feasibility
studies to assess the possibility of connecting Ras Markaz Park to the (interior) oilfields in the future.
This comes with aim to supply the refinery with its crude oil needs and establish an alternative site
for the export of crude oil,” CEO noted.
Currently, the Sultanate exports the bulk of its crude via the Mina Al Fahal terminal in Muscat. Some
small volumes are also shipped from a single-buoy mooring built off Tibat in Musandam Governorate
for liquids produced in offshore fields in Khasab.
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Morocco: Europa Oil and Gas farming out Inezgane Licence
Source: Europa Oil & Gas
Europa Oil & Gas has announced the formal launch of the farmout initiative of its high-impact
exploration opportunity, the Inezgane Offshore Permit, offshore Morocco in the Agadir Basin,
awarded to the Company in 2019.
Overview:
Inezgane represents a high-impact exploration opportunity in a highly underexplored area of the
world representing an excellent farm in opportunity for interested companies and complements
Europa's existing strategy of seeking to develop a balanced portfolio of assets.
The Licence is located on the same
geological trend which has led to
major oil and gas discoveries along
the west coast of Africa with
reservoirs and source rocks in
common with the prolific West
African play.
Europa's recent evaluation has
identified a significant volume of
Licence resource, in excess of 2
billion barrels (oil equivalent), in the
top five ranked prospects alone.
Morocco offers excellent fiscal
terms with a low tax take and
several major and midcap
companies hold acreage in
Morocco, including ENI, Hunt,
Genel and ConocoPhillips.
Simon Oddie, CEO of Europa said:
'We are delighted to announce the launch of the Farmout initiative of the Inezgane Licence which
represents not only a high-impact exploration opportunity for Europa but also sits comfortably within
the Company's strategy of creating a balanced portfolio of complementary assets. Morocco is a
welcoming jurisdiction in which to operate and has excellent ESG credentials in the fields of wind,
solar and hydroelectric with ambitions to source 50% of its electrical energy from renewable sources
by 2030 as well as becoming a net exporter to Europe.
Further information on Inezgane
Europa holds a 75% interest in, and operatorship of, the Licence, which covers an area of 11,228 sq km with
ONHYM holding the remaining 25% interest. The Company was awarded the Inezgane Offshore Permit in
November 2019, which lies offshore Morocco in the Agadir Basin in water depths mostly below 2000 metres.
Europa has access to 6200 sq km of high-quality 3D seismic data to evaluate the prospectivity of the Licence.
So far, Europa’s work has focused on the top five ranked prospects namely Alpha, Charlie, Falcon, Turtle
and Sandpiper; these prospects have a wide range of structural styles including 4-way dip, salt flank and salt
under-hang. Each has stacked potential at the Albian, Campanian and Barremian levels, all within the
Cretaceous section, and all five prospects have mean resources in excess of 200 mmboe at the Albian level
which remains the primary target. The total mean resource is in excess of 2 billion barrels (oil equivalent) at
the Albian level with significant additional reserves potential at the Campanian and Barremian levels which
represent secondary and tertiary targets.
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U.K: Hydrogen Goes Nuclear as U.K. Reactor Pivots Toward Renewables
Bloomberg - Rachel Morison
The $28 billion Sizewell C nuclear station is touted as an anchor for Britain reaching net-zero
emissions, yet its reactors will compete with wind farms over the North Sea horizon. On gusty days,
where will the plant’s excess power go? Toward making hydrogen.
Nuclear developers in Europe, North America and Russia are looking at the clean gas as an outlet
for their low-carbon power to maximize revenue from one of the most expensive energy assets on
the planet. They also want to capitalize on the $70 billion-plus pledged by governments to help
develop the industry as a way to reach climate goals.
Electricite de France SA wants to make hydrogen at the proposed 20 billion-pound Sizewell C plant
on the southeast coast, marking the first time these technologies would be combined on a
commercial scale in Europe. With enough supply, clean hydrogen could meet a quarter of the
world’s energy needs by 2050, and annual sales have potential to reach 630 billion euros ($744
billion).
“The amount of clean hydrogen that we’re going to need to really decarbonize our economic sectors
is just immense,” said Elina Teplinsky, a Washington-based partner at Pillsbury Winthrop Shaw
Pittman LLP who focuses on nuclear projects and deals. “We need all of the hydrogen production
sources that are available -- we’re going to need nuclear.”
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Electricity grids want more renewable-power sources as nations commit to reducing greenhouse
gas emissions to the point where their economies are carbon-neutral. Operators are preparing to
run networks on 100% renewables at some times of the day, meaning nuclear, natural gas and coal
sources won’t be needed. And that means less revenue for those plant owners.
On the days when wind, solar and hydropower produce enough, the low-carbon electricity
generated by Sizewell C would be diverted to an electrolyzer producing clean hydrogen. The waste
heat produced by the atomic plant also can be used to make the process 10% more efficient,
according to EDF. If the company secures planning permission and the necessary financing, the
facility likely will come online in the early 2030s.
“It’s not nuclear versus wind versus solar - we need to use everything and cooperate to make the
most of the technologies,” Julia Pyke, Sizewell C’s financing director, said in an interview. “Ideally,
you’d have the electrolyzer supplied both by nuclear and by wind.”
The U.K.’s long-awaited hydrogen strategy is expected to be technology neutral, leaving the door
open for reactors. That blueprint could be released in coming days.
EDF’s plans were imperiled amid reports Britain wants to oust China’s state-owned nuclear energy
company from all future power projects. The Chinese have a 20% stake in Sizewell C, but the U.K.
government says the project will move forward with alternative financing.
Hydrogen produced using nuclear fuel is dubbed “pink hydrogen” within the industry. The U.K. grid
operator, National Grid Plc, modeled production of the fuel in its long-term report this year for the
first time. As much as 28 terawatt-hours of electricity from reactors could be siphoned off to make
the clean gas by 2050 – the equivalent of about 14% of the nation’s production.
Pink Hydrogen
Potential electricity demand for hydrogen production from nuclear
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Trial runs to pair these technologies also are being held in North America. The U.S. Department of
Energy has awarded $26.2 million to two projects run by Xcel Energy Inc. and FuelCell Energy
Inc. to help nuclear plants switch between electricity generation and hydrogen production when
necessary.
Bloom Energy and the Idaho National Laboratory are testing an electrolyzer run on nuclear-
generated electricity. “This expands the markets for nuclear power plants,” said Tyler Westover,
project lead at the laboratory.
Canada gets almost 15% of its electricity from nuclear stations and is looking to expand production
using small modular reactors. In its hydrogen strategy published in December, the government
outlined a role for nuclear electricity to produce hydrogen at off-peak times. Bruce Power LP is
studying the economics and opportunities for the two technologies.
Achieving net-zero emissions by 2050 could require as much as $173 trillion in investments globally,
according to BloombergNEF. By then, Britain’s energy market will have transformed: renewable
capacity is expected to triple while electricity demand doubles. The U.K.’s Nuclear Industry
Association estimates that a third of the nation’s hydrogen could come from atomic energy.
But there are questions about the economics of this marriage and whether it’s the most efficient use
of investor money. Hydrogen and nuclear are capital-intensive industries by themselves, and
combining the two will only increase project costs, said Rob Gross, professor at Imperial College
London and director of researcher UKERC.
“The proposition would take a very expensive thing – a nuclear power station – and add on another
expensive thing – hydrogen production,” he said. While the two are highly combustible, the nuclear
fuel is nowhere near the hydrogen being produced.
Germany, the continent’s biggest economy, turned its back on the technology after the 2011 disaster
at Japan’s Fukushima plant, a stand that’s made cutting emissions more difficult. Belgium and Spain
also plan to exit atomic energy.
EDF signed a
cooperation
agreement in April
with Rosatom
Corp., which
operates 38
nuclear units at 11
sites. Rosatom
says developing
hydrogen
production is a
priority, and it
plans to export the fuel to Europe. The same type of smaller reactor -- purpose-built to produce
hydrogen -- is being considered by both the U.K. government and Rosatom.
The U.K. has set a target for 5 gigawatts of hydrogen production by 2030, envisioning its use in
road transportation, home heating and ship propulsion. EDF currently runs 27 plants in the U.K. and
France, and is building two more. Sizewell C would be its 30th.
“The nuclear industry does need to broaden its ambition and recognize the value of these
opportunities,” said Kirsty Gogan, managing director of consultant Lucid Catalyst in London and
member of a government nuclear advisory board. “We have started to see this happening.”
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NewBase August 04-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil settles lower in volatile trade on worries about Delta variant
Reuters + NewBase
Oil settled lower on Tuesday, as concern about rising cases of the Delta coronavirus variant
outweighed expectations for another weekly draw in U.S. inventories that had boosted prices early.
Brent crude oil futures settled down 48 cents, or 0.66% at $72.41 a barrel. U.S. West Texas
Intermediate (WTI) crude settled down 70 cents, or 0.98% at $70.56 a barrel. Prices held lower in
post-settlement trade after market sources said preliminary data suggested crude stocks drew in
the United States.
Concerns over the spread of Delta variant in the United States and China, the top oil consumers,
weighed on prices, with both benchmarks falling more than 3% at one point.
Oil price special
coverage
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In China, the spread of the variant from the coast to inland cities has prompted authorities to impose
strict measures to bring the outbreak under control. read more
"The news flow out of China has been bearish since the weekend," said John Kilduff, a partner at
Again Capital Management in New York. "There continues to be angst about the COVID-19
situation, which weighs on the petroleum complex the most."
Earlier, Brent and U.S. crude had risen more than 60 cents. Brent has risen more than 40% this
year, helping earnings of oil firms.
"We're trying to price in how big the slowdown is going to be with the Delta variant," said Phil Flynn,
senior analyst at Price Futures Group in Chicago.
Expectations of a return of Iranian crude to the markets also pressured prices. Iran and six powers
have been in talks since April to revive a nuclear pact that could release its oil exports. But officials
have said significant gaps remain.
Iran's new president, Ebrahim Raisi, said on Tuesday his government would take steps to lift
"tyrannical" sanctions imposed by the United States on its energy and banking sectors. read more
The sixth round of indirect talks between Tehran and Washington adjourned on June 20, two days
after Raisi was elected president. Parties involved in the negotiations have yet to announce when
the talks will resume.
A Reuters poll showed U.S. crude and product inventories likely declined last week, with both
distillates and gasoline stockpiles predicted to have fallen for a third straight week.
The American Petroleum Institute, a trade group, suggested U.S. crude stocks fell by 879,000
barrels in the week ended July 30, market sources said. The data showed that U.S. distillate
inventories, including diesel, fell by 717,000 barrels for the week ended July 30, and U.S. gasoline
stockpiles dropped by 5.8 million barrels.
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Shale Drillers Leave $12 Billion on Table With Bad Oil Bets
Bloomberg News David Wethe and Kevin Crowley
Shale explorers are facing almost $12 billion in losses this year from bad bets on oil after a global
rally, according to BloombergNEF.
Of the 50 U.S. drillers surveyed by BNEF, Devon Energy Corp., Pioneer Natural Resources Co. and
Diamondback Energy Inc. are on track to rack up the steepest losses, with more than $1 billion in
underwater hedges apiece.
It’s the sector’s worst hedging performance in records dating back to mid-2017. The group as a
whole hedged almost one-third of estimated 2021 output and the practical impact is that they are
locked in to reap about $5 less than the American benchmark crude, West Texas Intermediate.
“Personally I actually prefer if you guys don’t hedge,” Paul Cheng, an analyst at Scotiabank, told
Pioneer executives Tuesday on a conference call discussing second-quarter results. “If you look at
whether it’s a single company or the industry over 10 years, 20 years, 30 years, hedging is a losing-
money proposition; I don’t think the industry has ever made money.”
Hedging helps producers of raw materials mitigate the risk of major price fluctuations and lock in
relatively stable cash flows. But the practice carries the risk of leaving money on the table during
bull markets.
Pioneer won’t use hedging as a way to protect its variable dividend, Chief Executive Officer Scott
Sheffield said on the same call. Instead, the company will allow the payout to vary over time
depending on its free cash flow, he said.
Oil prices have already recovered from pre-Covid levels and are up by almost half this year at about
$71 a barrel as the economy returns from lockdowns in 2020.
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The group of 50 companies locked in protections on average at $49.51 a barrel, but some had
hedges even lower, including Chesapeake Energy Corp. at $42.64. Unhedged output helped to
offset those losses, however, with explorers on average realizing prices at $5.21 a barrel below the
average U.S. oil price during the period. The 30% of output hedged this year is the lowest on record,
according to BNEF.
The losses haven’t been limited to crude drillers. EQT Corp., America’s biggest natural-gas
producer, irritated investors last week by boosting hedges at a time when the commodity also is
surging. The company already has booked a $1.3 billion non-cash second-quarter loss on swaps
and options contracts.
“One of the negatives of this quarter has been some horrible hedging,” Paul Sankey, the veteran
oil-industry analyst and founder of Sankey Research LLC, said during an interview on Bloomberg
TV. As a result of disappointing hedging results, “the market guys are saying to me, ‘God I hate this
group.'”
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NewBase Special Coverage
The Energy world – August - 04- -2021
EV Adoption Outpaced Off-the-Mark Outlooks
Bloomberg - Colin McKerracher
I spent the weekend thinking about long-term oil market outlooks (yes, my weekends are exciting).
I started following these closely around 2015, when I was scoping out what our newly formed
transport team at BloombergNEF would focus on.
One report in particular sticks out — OPEC’s 2015 World Oil Outlook. It was one of the first that I
dug into, and I quickly recognized that it highlighted how some groups were thinking about the future
at the time.
Most long-term outlooks by definition take a quite a while to be proven wrong or right. But
occasionally that happens sooner and this gives us the opportunity to consider why. OPEC’s 2015
Outlook is a good example of being wrong sooner rather than later — it expected a fleet of 4.7
million battery electric vehicles on the road in 2040, with over 98% of the world’s vehicle fleet to be
powered solely by an internal combustion engine. OPEC was not alone in this view — Exxon and
BP had similar numbers in their outlooks at that time.
Off the Mark
OPEC expected electric vehicles to play only a tiny role
The global fleet of battery electric passenger vehicles hit 4.7 million at the start of 2020, meaning
OPEC’s 2040 scenario arrived 20 years ahead of schedule. There were over 400,000 fully electric
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vehicles sold in June alone; by the end of this year there will be almost 11 million on the road, more
than doubling OPEC’s 2040 number.
Up and Up
The electric-vehicle fleet reached OPEC's 2040 forecast decades early
It’s easy simply to dismiss OPEC’s outlook as some sort of hybrid between a lobbying position paper
and an investment pitch, but it’s worth digging into a bit deeper to understand what went wrong.
Outlooks in this vintage tended to treat any alternatives to the internal combustion engine as
options driven purely by policy compliance. The reports would set a fuel efficiency target for the
global vehicle fleet in 2040 and then achieve it by adding the cheapest alternative drivetrain options
today until it brought the average up to that level.
Compliance with fuel economy or CO2 targets certainly have provided a big boost for the EV sales
you see today and many automakers are increasing their supply of EVs simply to avoid paying fines.
But you also need to look on the other side of the transaction, at the buyer. There you find very
happy customers, who generally love the technology and are out hurriedly converting their friends
and neighbors.
This is where the compliance-only view of the world breaks down, because it doesn’t capture
consumer dynamics even though many of the things shaping the future of energy and transport are
consumer-driven. We live in a bottom-up world.
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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
publication. However, no warranty is given to the accuracy of its content. Page 16
Another lesson is around focusing on technology trajectories, instead of snapshots in time. OPEC’s
outlook gives a slight nod to this, acknowledging that “the cost of technologies such as electric
batteries for cars will be further reduced in the coming decades — probably by 30-50%.” EV battery
prices have fallen 65% since OPEC’s outlook was published. BNEF expects average lithium-ion
battery prices to fall to under $60 per kilowatt hour by 2030, down another 60% from where they are
today.
This leads to two good questions to ask of any long-term outlooks published today: how is the report
modeling consumer uptake dynamics? And what rate of technology change is assumed on key
enabling components for alternatives?
Most oil outlooks now have much higher rates of EV adoption (OPEC’s latest had over 300 million
EVs in the fleet by 2040). Even so, many rarely state anything on expected battery learning rates,
costs, or energy density expectations. Discussions on how best to model consumer uptake
dynamics are also still limited.
The next big recalibration in these outlooks will probably be around the size of the total vehicle fleet.
Most outlooks from the oil majors put the global car fleet at around 2 billion in 2040, up from 1.2
billion today.
The world’s cities already feel quite full, and it’s hard to picture where all those cars will go. The
combination of higher urbanization rates, demographic trends, and alternative transport options
could start to slow things down sooner rather than later.
Copyright © 2021 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
NewBase Energy News 03 August 2021 - Issue No. 1447 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 Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, 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 more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management 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 © 2021 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
Copyright © 2021 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
Copyright © 2021 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 © 2021 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
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New base 04 august 2021 energy news issue 1447 by khaled al awad i

  • 1. Copyright © 2021 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 04 August 2021 - Issue No. 1447 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE U.A.E Masdar in pact with US company to turn desert air into water in Abu Dhabi The National Deena Kamel A US-based technology company is sourcing water from the desert by extracting moisture from air using clean energy at Abu Dhabi's Masdar City as part of the UAE's efforts to produce clean water in a more sustainable way. Aquovum will produce commercial volumes of uninterrupted water supply using solar and thermal energy in a pilot project run by the company, in partnership with Masdar and the Khalifa University of Science and Technology, the companies said on Sunday. The project is part of a three-party research and development agreement between the entities. Developing technology that both protects and guarantees a constant and secure source of water is "of utmost importance", said Abdulla Balalaa, executive director of sustainable real estate at Masdar City. “The project will positively contribute to regional and global water security in line with the UAE Water Security Strategy 2036," he said. The project could offer a model for other countries with arid
  • 2. Copyright © 2021 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 climates to produce clean water in a more sustainable way and even spur agricultural breakthroughs to improve food security. The UAE, which along with other Gulf economies relies heavily on desalination for potable water, is registering an uptake in atmospheric water generation, or AWG, to supplement clean drinking water in homes and institutions. AWG produces drinking water directly from air by condensing the water molecules below dew point. The project, which begins this month, will evaluate the performance of Aquovum's large-format AWG technology in combination with a renewable energy source, as well as its ability to be included in current or future sustainable water projects. “To support ... the global green transition and to ensure water security, we recognised that we must power our systems on 100 per cent renewable energy to provide a truly sustainable water supply," said Robert Wood, chief technology officer of Aquovum. "Our bleeding-edge technologies work with nature and are the way forward to deliver lasting, sustainable solutions.” The AWG technology will also contribute to a market that is expected to grow by a compound annual rate of more than 25 per cent globally and by more than 30 per cent in the Middle East and Africa alone, a region with some of the world’s harshest climates, where water is needed the most, according to Global Market Insights. “Previously, we have focused on concentrated solar power and thermal energy storage, and we are diversifying our research and development activity at the Masdar Institute Solar Platform with clean production of fresh water," said Nicolas Calvet, assistant professor in the Mechanical Engineering Department at Khalifa University, founder and chairman of the Masdar Institute Solar Platform and principal investigator of the project. "Solar and water should be the main pillars of research and development in the UAE," he said. The project, which will run for 12 months, will provide valuable performance data for a full-year’s weather cycle, he said. The green power will be provided by a thermal energy storage unit of Azelio AB. "Technology that extracts clean water from the air in commercial volumes and operates using clean energy will help in securing and developing all life sources and serving the national interests," said Mohamed Al Qubaisi, chief executive of Aquovum Middle East.
  • 3. Copyright © 2021 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 U.A.E Mubadala and BDT purchase of water firm Culligan The National - Shweta Jain Mubadala Investment Company, its asset management subsidiary Mubadala Capital, and private equity firm BDT Capital Partners said on Monday they closed the deal to acquire sustainable water solutions provider Culligan International. BDT acquired a majority interest in Culligan from Advent International and Centerbridge Partners in a transaction that was announced in May, in which Mubadala provided a significant capital commitment as an anchor partner. Advent will retain a minority stake in Culligan, Mubadala said in a statement, without disclosing financial terms of the deal. “We are pleased to have Mubadala invest alongside us in this transaction given their global presence, long-term capital and our deep relationship with them since the founding of BDT,” San Orr, president of BDT Capital Partners, said. “[The deal] pairs well with our interest in profitably investing in businesses where ESG [environment, social and governance ... norms] is at the core of their value proposition to the market, namely the delivery of clean drinking water on a global basis and reducing the use of single use plastic bottles through innovative water solutions, among others,” Adib Mattar, head of private equity at Mubadala Capital, said. Illinois, US-based Culligan sells products and services for water filtration and treatment and has more than 35 brands in 90 countries. Culligan Middle East operates through facilities in Abu Dhabi, Dubai, Sharjah and Qatar. The company established a presence in Dubai more than 20 years ago and has since become one of the most diverse water treatment companies in the Gulf region. In 2014, Culligan Middle East opened a manufacturing facility in Dubai Techno Park. The 10,000- square metre site is a purpose-built, integrated manufacturing, sales and service centre housing facilities for equipment fabrication, chemical blending and water bottling.
  • 4. Copyright © 2021 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 Oman 1st phase of mega crude storage park set for Q1 2022 launch Oman Observer - @conradprabhu Phase 1 of a world-scale Crude Oil Storage Terminal, currently nearing completion at Ras Markaz on the Sultanate’s southeastern coast, is slated to come into operation in the first quarter of 2022. Strategic project: Plan to link Raz Markaz terminal with Main Oil Line under study, Developed by Oman Tank Terminal Company (OTTCO), a wholly-owned subsidiary of OQ — the Sultanate’s integrated energy group — the facility will position the Sultanate as a global hub — for the first time — for all kinds of local, regional and international crudes. According to a high-level executive of OTTCO, marine works at the Raz Markaz Crude Oil Park were completed in the first quarter of this year, with landside infrastructure reaching the 70 per cent completion mark as of June-end this year. “The infrastructure required to store crude oil during the first phase is almost ready, and operations are expected to start in Q1 of 2022,” Eng Salim bin Marhoon al Hashmi, Project General Manager, said in an interview published in the latest edition of ‘Duqm Economist’, the quarterly newsletter of the Public Authority for Special Economic Zones and Free Zones (OPAZ). An array of huge tanks has been constructed at site, offering up to 25 million barrels of storage capacity in the first phase of the project. When fully built, in increment stages over several years, the facility will offer a world-leading 200 million barrels of storage capacity. A total of 40 sq kilometres has been earmarked for the entire park, up from the present area of about 10 kilometres under development for the first phase.
  • 5. Copyright © 2021 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 OTTCO’s CEO Ard Van Hoof was quoted as stating that the storage terminal, located just 80 km south of the Special Economic Zone (SEZ) at Duqm, adds another strategic element to Duqm’s importance as an integrated energy and economic hub. Overlooking the Arabian Sea and the Indian Ocean beyond, the storage park’s geographically advantageous location — far removed from the contentious Strait of Hormuz — will open up opportunities for regional and international oil traders to store their volumes on a short-term and long-term basis, he said. “We aspire to become the largest crude oil storage project in the Middle East to serve as an important global crude oil storage centre due to the strategic location of Ras Markaz on the Arabian Sea, overlooking the Indian Ocean. The Park will meet the markets’ needs, connecting the markets in South Asia, Far East and Africa. The project will contribute in the long-term to place the Sultanate as a major centre for storing bulk and liquid products in the region,” he told the newsletter. In addition to serving as a storage hub, imported crude as feedstock for the greenfield refinery of OQ8 (formerly known as Duqm Refinery) – a partnership of OQ and Kuwait Petroleum International – will be channelled to the refinery via an 80-km pipeline already in place. Giant tanks, built at a height of 110-metres above sea level, will allow for its crude oil contents to flow by gravity for loading into ships anchored a few kilometres offshore. But when tankers arrive at Raz Markaz to unload their cargoes, a series of four heavy-duty pumps will be activated to pump the crude to the tanks on the hilltop. Going forward, however, OTTCO plans to build a new pipeline connecting the Main Oil Line (the country’s principal crude export pipeline) with Ras Markaz, thus opening up another export terminal for Omani crude. “We have started, in cooperation with international consulting companies, preparing pre-feasibility studies to assess the possibility of connecting Ras Markaz Park to the (interior) oilfields in the future. This comes with aim to supply the refinery with its crude oil needs and establish an alternative site for the export of crude oil,” CEO noted. Currently, the Sultanate exports the bulk of its crude via the Mina Al Fahal terminal in Muscat. Some small volumes are also shipped from a single-buoy mooring built off Tibat in Musandam Governorate for liquids produced in offshore fields in Khasab.
  • 6. Copyright © 2021 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 Morocco: Europa Oil and Gas farming out Inezgane Licence Source: Europa Oil & Gas Europa Oil & Gas has announced the formal launch of the farmout initiative of its high-impact exploration opportunity, the Inezgane Offshore Permit, offshore Morocco in the Agadir Basin, awarded to the Company in 2019. Overview: Inezgane represents a high-impact exploration opportunity in a highly underexplored area of the world representing an excellent farm in opportunity for interested companies and complements Europa's existing strategy of seeking to develop a balanced portfolio of assets. The Licence is located on the same geological trend which has led to major oil and gas discoveries along the west coast of Africa with reservoirs and source rocks in common with the prolific West African play. Europa's recent evaluation has identified a significant volume of Licence resource, in excess of 2 billion barrels (oil equivalent), in the top five ranked prospects alone. Morocco offers excellent fiscal terms with a low tax take and several major and midcap companies hold acreage in Morocco, including ENI, Hunt, Genel and ConocoPhillips. Simon Oddie, CEO of Europa said: 'We are delighted to announce the launch of the Farmout initiative of the Inezgane Licence which represents not only a high-impact exploration opportunity for Europa but also sits comfortably within the Company's strategy of creating a balanced portfolio of complementary assets. Morocco is a welcoming jurisdiction in which to operate and has excellent ESG credentials in the fields of wind, solar and hydroelectric with ambitions to source 50% of its electrical energy from renewable sources by 2030 as well as becoming a net exporter to Europe. Further information on Inezgane Europa holds a 75% interest in, and operatorship of, the Licence, which covers an area of 11,228 sq km with ONHYM holding the remaining 25% interest. The Company was awarded the Inezgane Offshore Permit in November 2019, which lies offshore Morocco in the Agadir Basin in water depths mostly below 2000 metres. Europa has access to 6200 sq km of high-quality 3D seismic data to evaluate the prospectivity of the Licence. So far, Europa’s work has focused on the top five ranked prospects namely Alpha, Charlie, Falcon, Turtle and Sandpiper; these prospects have a wide range of structural styles including 4-way dip, salt flank and salt under-hang. Each has stacked potential at the Albian, Campanian and Barremian levels, all within the Cretaceous section, and all five prospects have mean resources in excess of 200 mmboe at the Albian level which remains the primary target. The total mean resource is in excess of 2 billion barrels (oil equivalent) at the Albian level with significant additional reserves potential at the Campanian and Barremian levels which represent secondary and tertiary targets.
  • 7. Copyright © 2021 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 U.K: Hydrogen Goes Nuclear as U.K. Reactor Pivots Toward Renewables Bloomberg - Rachel Morison The $28 billion Sizewell C nuclear station is touted as an anchor for Britain reaching net-zero emissions, yet its reactors will compete with wind farms over the North Sea horizon. On gusty days, where will the plant’s excess power go? Toward making hydrogen. Nuclear developers in Europe, North America and Russia are looking at the clean gas as an outlet for their low-carbon power to maximize revenue from one of the most expensive energy assets on the planet. They also want to capitalize on the $70 billion-plus pledged by governments to help develop the industry as a way to reach climate goals. Electricite de France SA wants to make hydrogen at the proposed 20 billion-pound Sizewell C plant on the southeast coast, marking the first time these technologies would be combined on a commercial scale in Europe. With enough supply, clean hydrogen could meet a quarter of the world’s energy needs by 2050, and annual sales have potential to reach 630 billion euros ($744 billion). “The amount of clean hydrogen that we’re going to need to really decarbonize our economic sectors is just immense,” said Elina Teplinsky, a Washington-based partner at Pillsbury Winthrop Shaw Pittman LLP who focuses on nuclear projects and deals. “We need all of the hydrogen production sources that are available -- we’re going to need nuclear.”
  • 8. Copyright © 2021 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 Electricity grids want more renewable-power sources as nations commit to reducing greenhouse gas emissions to the point where their economies are carbon-neutral. Operators are preparing to run networks on 100% renewables at some times of the day, meaning nuclear, natural gas and coal sources won’t be needed. And that means less revenue for those plant owners. On the days when wind, solar and hydropower produce enough, the low-carbon electricity generated by Sizewell C would be diverted to an electrolyzer producing clean hydrogen. The waste heat produced by the atomic plant also can be used to make the process 10% more efficient, according to EDF. If the company secures planning permission and the necessary financing, the facility likely will come online in the early 2030s. “It’s not nuclear versus wind versus solar - we need to use everything and cooperate to make the most of the technologies,” Julia Pyke, Sizewell C’s financing director, said in an interview. “Ideally, you’d have the electrolyzer supplied both by nuclear and by wind.” The U.K.’s long-awaited hydrogen strategy is expected to be technology neutral, leaving the door open for reactors. That blueprint could be released in coming days. EDF’s plans were imperiled amid reports Britain wants to oust China’s state-owned nuclear energy company from all future power projects. The Chinese have a 20% stake in Sizewell C, but the U.K. government says the project will move forward with alternative financing. Hydrogen produced using nuclear fuel is dubbed “pink hydrogen” within the industry. The U.K. grid operator, National Grid Plc, modeled production of the fuel in its long-term report this year for the first time. As much as 28 terawatt-hours of electricity from reactors could be siphoned off to make the clean gas by 2050 – the equivalent of about 14% of the nation’s production. Pink Hydrogen Potential electricity demand for hydrogen production from nuclear
  • 9. Copyright © 2021 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 Trial runs to pair these technologies also are being held in North America. The U.S. Department of Energy has awarded $26.2 million to two projects run by Xcel Energy Inc. and FuelCell Energy Inc. to help nuclear plants switch between electricity generation and hydrogen production when necessary. Bloom Energy and the Idaho National Laboratory are testing an electrolyzer run on nuclear- generated electricity. “This expands the markets for nuclear power plants,” said Tyler Westover, project lead at the laboratory. Canada gets almost 15% of its electricity from nuclear stations and is looking to expand production using small modular reactors. In its hydrogen strategy published in December, the government outlined a role for nuclear electricity to produce hydrogen at off-peak times. Bruce Power LP is studying the economics and opportunities for the two technologies. Achieving net-zero emissions by 2050 could require as much as $173 trillion in investments globally, according to BloombergNEF. By then, Britain’s energy market will have transformed: renewable capacity is expected to triple while electricity demand doubles. The U.K.’s Nuclear Industry Association estimates that a third of the nation’s hydrogen could come from atomic energy. But there are questions about the economics of this marriage and whether it’s the most efficient use of investor money. Hydrogen and nuclear are capital-intensive industries by themselves, and combining the two will only increase project costs, said Rob Gross, professor at Imperial College London and director of researcher UKERC. “The proposition would take a very expensive thing – a nuclear power station – and add on another expensive thing – hydrogen production,” he said. While the two are highly combustible, the nuclear fuel is nowhere near the hydrogen being produced. Germany, the continent’s biggest economy, turned its back on the technology after the 2011 disaster at Japan’s Fukushima plant, a stand that’s made cutting emissions more difficult. Belgium and Spain also plan to exit atomic energy. EDF signed a cooperation agreement in April with Rosatom Corp., which operates 38 nuclear units at 11 sites. Rosatom says developing hydrogen production is a priority, and it plans to export the fuel to Europe. The same type of smaller reactor -- purpose-built to produce hydrogen -- is being considered by both the U.K. government and Rosatom. The U.K. has set a target for 5 gigawatts of hydrogen production by 2030, envisioning its use in road transportation, home heating and ship propulsion. EDF currently runs 27 plants in the U.K. and France, and is building two more. Sizewell C would be its 30th. “The nuclear industry does need to broaden its ambition and recognize the value of these opportunities,” said Kirsty Gogan, managing director of consultant Lucid Catalyst in London and member of a government nuclear advisory board. “We have started to see this happening.”
  • 10. Copyright © 2021 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 NewBase August 04-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil settles lower in volatile trade on worries about Delta variant Reuters + NewBase Oil settled lower on Tuesday, as concern about rising cases of the Delta coronavirus variant outweighed expectations for another weekly draw in U.S. inventories that had boosted prices early. Brent crude oil futures settled down 48 cents, or 0.66% at $72.41 a barrel. U.S. West Texas Intermediate (WTI) crude settled down 70 cents, or 0.98% at $70.56 a barrel. Prices held lower in post-settlement trade after market sources said preliminary data suggested crude stocks drew in the United States. Concerns over the spread of Delta variant in the United States and China, the top oil consumers, weighed on prices, with both benchmarks falling more than 3% at one point. Oil price special coverage
  • 11. Copyright © 2021 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 In China, the spread of the variant from the coast to inland cities has prompted authorities to impose strict measures to bring the outbreak under control. read more "The news flow out of China has been bearish since the weekend," said John Kilduff, a partner at Again Capital Management in New York. "There continues to be angst about the COVID-19 situation, which weighs on the petroleum complex the most." Earlier, Brent and U.S. crude had risen more than 60 cents. Brent has risen more than 40% this year, helping earnings of oil firms. "We're trying to price in how big the slowdown is going to be with the Delta variant," said Phil Flynn, senior analyst at Price Futures Group in Chicago. Expectations of a return of Iranian crude to the markets also pressured prices. Iran and six powers have been in talks since April to revive a nuclear pact that could release its oil exports. But officials have said significant gaps remain. Iran's new president, Ebrahim Raisi, said on Tuesday his government would take steps to lift "tyrannical" sanctions imposed by the United States on its energy and banking sectors. read more The sixth round of indirect talks between Tehran and Washington adjourned on June 20, two days after Raisi was elected president. Parties involved in the negotiations have yet to announce when the talks will resume. A Reuters poll showed U.S. crude and product inventories likely declined last week, with both distillates and gasoline stockpiles predicted to have fallen for a third straight week. The American Petroleum Institute, a trade group, suggested U.S. crude stocks fell by 879,000 barrels in the week ended July 30, market sources said. The data showed that U.S. distillate inventories, including diesel, fell by 717,000 barrels for the week ended July 30, and U.S. gasoline stockpiles dropped by 5.8 million barrels.
  • 12. Copyright © 2021 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 Shale Drillers Leave $12 Billion on Table With Bad Oil Bets Bloomberg News David Wethe and Kevin Crowley Shale explorers are facing almost $12 billion in losses this year from bad bets on oil after a global rally, according to BloombergNEF. Of the 50 U.S. drillers surveyed by BNEF, Devon Energy Corp., Pioneer Natural Resources Co. and Diamondback Energy Inc. are on track to rack up the steepest losses, with more than $1 billion in underwater hedges apiece. It’s the sector’s worst hedging performance in records dating back to mid-2017. The group as a whole hedged almost one-third of estimated 2021 output and the practical impact is that they are locked in to reap about $5 less than the American benchmark crude, West Texas Intermediate. “Personally I actually prefer if you guys don’t hedge,” Paul Cheng, an analyst at Scotiabank, told Pioneer executives Tuesday on a conference call discussing second-quarter results. “If you look at whether it’s a single company or the industry over 10 years, 20 years, 30 years, hedging is a losing- money proposition; I don’t think the industry has ever made money.” Hedging helps producers of raw materials mitigate the risk of major price fluctuations and lock in relatively stable cash flows. But the practice carries the risk of leaving money on the table during bull markets. Pioneer won’t use hedging as a way to protect its variable dividend, Chief Executive Officer Scott Sheffield said on the same call. Instead, the company will allow the payout to vary over time depending on its free cash flow, he said. Oil prices have already recovered from pre-Covid levels and are up by almost half this year at about $71 a barrel as the economy returns from lockdowns in 2020.
  • 13. Copyright © 2021 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 The group of 50 companies locked in protections on average at $49.51 a barrel, but some had hedges even lower, including Chesapeake Energy Corp. at $42.64. Unhedged output helped to offset those losses, however, with explorers on average realizing prices at $5.21 a barrel below the average U.S. oil price during the period. The 30% of output hedged this year is the lowest on record, according to BNEF. The losses haven’t been limited to crude drillers. EQT Corp., America’s biggest natural-gas producer, irritated investors last week by boosting hedges at a time when the commodity also is surging. The company already has booked a $1.3 billion non-cash second-quarter loss on swaps and options contracts. “One of the negatives of this quarter has been some horrible hedging,” Paul Sankey, the veteran oil-industry analyst and founder of Sankey Research LLC, said during an interview on Bloomberg TV. As a result of disappointing hedging results, “the market guys are saying to me, ‘God I hate this group.'”
  • 14. Copyright © 2021 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 Special Coverage The Energy world – August - 04- -2021 EV Adoption Outpaced Off-the-Mark Outlooks Bloomberg - Colin McKerracher I spent the weekend thinking about long-term oil market outlooks (yes, my weekends are exciting). I started following these closely around 2015, when I was scoping out what our newly formed transport team at BloombergNEF would focus on. One report in particular sticks out — OPEC’s 2015 World Oil Outlook. It was one of the first that I dug into, and I quickly recognized that it highlighted how some groups were thinking about the future at the time. Most long-term outlooks by definition take a quite a while to be proven wrong or right. But occasionally that happens sooner and this gives us the opportunity to consider why. OPEC’s 2015 Outlook is a good example of being wrong sooner rather than later — it expected a fleet of 4.7 million battery electric vehicles on the road in 2040, with over 98% of the world’s vehicle fleet to be powered solely by an internal combustion engine. OPEC was not alone in this view — Exxon and BP had similar numbers in their outlooks at that time. Off the Mark OPEC expected electric vehicles to play only a tiny role The global fleet of battery electric passenger vehicles hit 4.7 million at the start of 2020, meaning OPEC’s 2040 scenario arrived 20 years ahead of schedule. There were over 400,000 fully electric
  • 15. Copyright © 2021 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 vehicles sold in June alone; by the end of this year there will be almost 11 million on the road, more than doubling OPEC’s 2040 number. Up and Up The electric-vehicle fleet reached OPEC's 2040 forecast decades early It’s easy simply to dismiss OPEC’s outlook as some sort of hybrid between a lobbying position paper and an investment pitch, but it’s worth digging into a bit deeper to understand what went wrong. Outlooks in this vintage tended to treat any alternatives to the internal combustion engine as options driven purely by policy compliance. The reports would set a fuel efficiency target for the global vehicle fleet in 2040 and then achieve it by adding the cheapest alternative drivetrain options today until it brought the average up to that level. Compliance with fuel economy or CO2 targets certainly have provided a big boost for the EV sales you see today and many automakers are increasing their supply of EVs simply to avoid paying fines. But you also need to look on the other side of the transaction, at the buyer. There you find very happy customers, who generally love the technology and are out hurriedly converting their friends and neighbors. This is where the compliance-only view of the world breaks down, because it doesn’t capture consumer dynamics even though many of the things shaping the future of energy and transport are consumer-driven. We live in a bottom-up world.
  • 16. Copyright © 2021 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 Another lesson is around focusing on technology trajectories, instead of snapshots in time. OPEC’s outlook gives a slight nod to this, acknowledging that “the cost of technologies such as electric batteries for cars will be further reduced in the coming decades — probably by 30-50%.” EV battery prices have fallen 65% since OPEC’s outlook was published. BNEF expects average lithium-ion battery prices to fall to under $60 per kilowatt hour by 2030, down another 60% from where they are today. This leads to two good questions to ask of any long-term outlooks published today: how is the report modeling consumer uptake dynamics? And what rate of technology change is assumed on key enabling components for alternatives? Most oil outlooks now have much higher rates of EV adoption (OPEC’s latest had over 300 million EVs in the fleet by 2040). Even so, many rarely state anything on expected battery learning rates, costs, or energy density expectations. Discussions on how best to model consumer uptake dynamics are also still limited. The next big recalibration in these outlooks will probably be around the size of the total vehicle fleet. Most outlooks from the oil majors put the global car fleet at around 2 billion in 2040, up from 1.2 billion today. The world’s cities already feel quite full, and it’s hard to picture where all those cars will go. The combination of higher urbanization rates, demographic trends, and alternative transport options could start to slow things down sooner rather than later.
  • 17. Copyright © 2021 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 NewBase Energy News 03 August 2021 - Issue No. 1447 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 Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder of NewBase Energy news articles issues, 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 more than 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management 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.
  • 18. Copyright © 2021 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
  • 19. Copyright © 2021 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
  • 20. Copyright © 2021 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 © 2021 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 For Your Recruitments needs and Top Talents, please seek our approved agents below