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NewBase Energy News 05 October 2017 - Issue No. 1080 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Drydocks World takes on 2 new projects for FPSO Aoka Mizu
(WAM) -- Drydocks World, the leading marine, onshore and offshore service provider to the oil,
gas and renewable energy sectors, has signed an agreement for 2 new projects with Bluewater
Energy Services B.V. and end client, Hurricane Energy Plc..
Building on Drydocks World’s excellent track record of 32 conversions and 6 turrets, the yard will
now undertake a repair, life extension and upgrade project on Floating Production Storage and
Offloading, FPSO, vessel Aoka Mizu, which will be deployed in the Lancaster Field West of the
Shetland Islands after completion. Drydocks World will also carry out the fabrication of an over
1,000T Turret Buoy for Aoka Mizu, to help the vessel to moor and "weathervane" through 360
degrees at the field site.
Drydocks World’s COO, Mohammad Rizal, commented, "Our expertise and dedication to the
highest standards in HSEQ will deliver enhanced FPSO performance and operational efficiency.
This is the first time we are working with Bluewater Energy and Hurricane Energy, we look forward
to building strong partnerships for future collaboration, demonstrating the progressive approach
and integrated solutions our Dubai yard has to offer."
Hugo Heerema, President and CEO of Bluewater, said, "We have selected Drydocks World on the basis of
their good track record, and the depth of understanding of the task ahead of them, in combination with the
quality of their facilities, and convincing project organisation. So far, we have only been confirmed in that
choice, and look forward to a smooth continuation of this challenging project, of which timely delivery is of
the essence."
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Saudi Aramco plans expansion in India with new unit: sources
Oil giant Saudi Aramco will open an Indian subsidiary next week, three sources said, as the top
global oil exporter looks to tap rising demand and invest in the world's third-biggest consumer.
The company is investing in refineries in major markets to lock in customers ahead of its initial
public offering next year, and the India unit, on top of sales, will look for opportunities to take
stakes in refining and petrochemical projects in the country.
Saudi Arabia is competing with Iraq to be India's top oil supplier, with Iraq displacing it for a fifth
month in a row in August, data compiled by Reuters showed.
Aramco Chief Executive Amin Nasser will inaugurate Aramco Asia India during a visit to New
Delhi next week to attend the IHS-CERA conference, which starts on Sunday and which will also
be attended by OPEC Secretary General Mohammed Barkindo.
Nasser will also meet Indian Prime Minister Narendra Modi on Monday as part of an industry
delegation to discuss investment in the oil and gas sector, one of the sources said.
Neither Aramco nor the prime minister's office was available to comment.
Mohammed Al-Mughirah, a company veteran handling crude sales, will head Aramco Asia India,
two of the sources said. He also worked as deputy managing director at Aramco Asia Korea,
according to his LinkedIn profile.
Major oil producers that have lost market share due to the rise in U.S. shale oil production are
tapping rising fuel demand in Asia. Earlier this year Saudi Arabia pledged billions of dollars of
investment in projects in Indonesia and Malaysia to ensure long-term oil supply deals.
The Kingdom wants to mirror that strategy in India, after missing out to Russia's Rosneft in an
opportunity to buy a majority stake in private refiner Essar. Saudi Arabia's Energy Minister Khalid
al-Falih has said that India was a prime target as Aramco looked for collaboration opportunities
across Asia.
The International Energy Agency estimates India's refining capacity will lag fuel demand going
forward, requiring investment in new plants. Aramco representatives have met officials of
provincial governments including West Bengal and southern Andhra Pradesh to scout for
investment opportunities, sources said.
Indian oil minister Dharmendra Pradhan said earlier this year that Aramco wants to have exclusive
talks for a stake in a planned 1.2 million barrel per day refinery on India's west coast.
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Egypt: SDX Energy announces oil discovery at Rabul-2 well,
West Gharib Concession, Source: SDX Energy
SDX Energy, the North Africa focused oil and gas company, has announced that an oil discovery
has been made by the Rabul-2 well in the West Gharib Concession in Egypt (SDX 50% Working
Interest & Joint Operator).
The well encountered approx. 101.5 feet of net heavy oil pay across the Yusr and Bakr sand
formations, with an average porosity of 20%. Evaluation is ongoing, after which the Company
expects that the well will be completed as a producer in the Bakr and connected to the central
processing facilities at Meseda.
The Rabul-2 well is the last of the commitment wells in the West Gharib concession and was
drilled as an offset to the first commitment well Rabul-1, which was drilled in July 2017. Rabul 1
encountered 14.5 feet of net heavy oil pay with an average porosity of 21.2% in the Yusr sands
and was subsequently completed as an oil producer in the Yusr sands.
Paul Welch, President and CEO of SDX, commented:
'This was our final commitment well in the West Gharib concession and we are encouraged by the result,
which reaffirms our view of the area's significant development potential. The well came in ahead of
expectations, based upon the results of the offset Rabul 1 location. The ultimate potential in this new Bakr
structure is currently under review and will be better understood once the well is completed and tested.
'Today's news is also further evidence of the high activity levels right across the SDX portfolio including the
filing of the fast track development plan in South Disouq Egypt. I look forward to providing further updates
shortly on that filing, our development drilling campaign currently underway in Morocco and the production
results at our Rabul 2 discovery.'
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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Nigeria: Erin Energy obtains funding for Miocene exploration
well - successfully drills Oyo 9 production well..Source: Erin Energy
Erin Energy has announced that funding commitment has been obtained to drill its high-
impact Miocene exploration well. Site survey of the drilling location has been completed
and the well is planned to be spudded during this quarter.
Following the commitment to fund the drilling of the Miocene exploration well, the first option well
of the drilling contract has been
exercised with the drilling
contractor.
The company also announced the
successful completion of the
drilling phase of the Oyo-9 well.
The well results indicate presence
of the target channel system and
85.3 feet of net oil sand. The
results are in line with predictions
and confirm field extension to the
western part of the field. Both the
engineering and manufacturing of
the subsea equipment are at
various stages of completion.
However, due to chronic delays in
the release of the remaining funds
and improper interference by the
guarantor of the loan facility, as
agreed to between the bank and
Erin for the project, the Company
has decided to temporarily
suspend the completion and
hookup of the development
program. On several occasions the
Company has demanded the guarantor cease and desist from interfering in the disbursement of
funds for the project. Consequently, the Pacific Bora drilling rig and all drilling services has been
demobilized.
Following the recent decision of the Special Chamber of
the International Tribunal of the Law of the Sea (ITLOS)
in Hamburg concerning the maritime boundary dispute
between Ghana and Côte d’Ivoire, the Company is
working with the Government of Ghana and its partners
to progress the development activities in its ESWT
block, offshore Ghana.
The ESWT block has three discovered fields with total
in-place oil volume of 500MMstb. The 3D seismic data
which will be acquired in Q2, 2018, will be used to
improve subsurface definition and optimization of drilling targets.
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Global gas-to-liquids growth is dominated by two projects in
South Africa and Uzbekistan… Source: U.S. EIA, International Energy Outlook 2017
EIA’s International Energy Outlook 2017 (IEO2017) projects that liquids produced at gas-to-liquids
(GTL) plants will increase as two large-scale projects are completed in South Africa and
Uzbekistan.
Most of the new GTL capacity will come from the conversion of Sasol’s coal-to-liquids plant in
Secunda, South Africa, to a GTL facility. That conversion is expected to be completed by 2024. A
previously delayed GTL facility in Uzbekistan is also expected to come online by 2021.
Gas-to-liquids technologies typically use the Fischer-Tropsch Process to convert natural gas to
petroleum products. The resulting products include diesel and gasoline, as well as waxes.
EIA estimates global production from GTL facilities currently averages about 230,000 barrels per
day (b/d), or about 0.2% of global liquids production.
As of the beginning of 2017, more than 90% of this GTL production comes from four projects: two
in Qatar, one in South Africa, and one in Nigeria.
In the IEO2017 Reference case, EIA does not expect any other large-scale GTL plants to be built
or expanded through 2040. Large GTL plants are capital intensive, and their economics depend
on the price of crude oil relative to natural gas. Some countries with GTL facilities lack domestic oil
resources but have access to natural gas. GTL plants allow these countries to convert natural gas
to petroleum products.
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Many previously planned expansions of existing GTL facilities have been put on hold, and
additional expansions are not expected under projected market conditions. Aside from the South
Africa and Uzbekistan projects, EIA expects the remaining growth in GTL output to come from
relatively small facilities, each with a capacity of 5,000 b/d or less.
Small GTL facilities can be modular, with prefabricated process units that are shipped to project
sites and linked together instead of being built from the ground up in the field. Modular plants can
be shipped and assembled in natural gas-producing regions with insufficient infrastructure to
transport natural gas.
Some of these projects may also include microchannel reactors that use small reactors to convert
natural gas to liquids more efficiently but limit the overall throughput of a facility.
Small-scale GTL projects can reduce flared natural gas from in-field production and emissions
from landfills. Production from small-scale GTL plants is not a significant contributor to volumes of
petroleum liquids in EIA’s IEO2017 Reference case.
In the IEO2017 High Oil Price case, world crude oil prices are assumed to be much higher than in
the IEO2017 Reference case, which provides an incentive to construct new GTL plants or add
capacity at existing plants.
In the High Oil Price case, global GTL production continues to increase from 2025 through 2040.
In the Low Oil Price case, the Uzbekistan project is still assumed to come online, but no other
projects (including the South Africa plant) come online after 2021.
Source: U.S. Energy Information Administration, International Energy Outlook 2017
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UK: Everyone living in London is exposed to 'toxic' air
CNBC - Anmar Frangoul
All Londoners are living in areas where they are exposed to dangerous toxic air particles,
according to a study.
The research, which is based on the updated London Atmospheric Emissions Inventory, shows
that every resident in the city lives in an area where the World Health Organization's (WHO)
guidelines for toxic PM2.5 particles are exceeded. Staggeringly, it is also claimed that 7.9 million
Londoners are in areas where WHO guidelines are exceeded by 50 percent or more.
Particulate matter, or PM, describes the mix of liquid droplets and solid particles in the air,
according to the U.K.'s Department for Environment, Food and Rural Affairs. PM2.5 refers to what
is known as "fine particulate matter."
London authorities said that the main sources of PM2.5 emissions were from construction, wood
burning, and brake and tire wear.
"This research is another damning indictment of the toxic air that all Londoners are forced to
breathe every day," Mayor of London Sadiq Khan said in a statement. "It's sickening to know that
not a single area of London meets World Health Organization health standards, but even worse
than that, nearly 95 per cent of the capital is exceeding these guidelines by at least 50 per cent."
Khan said that it was shameful how young people were being exposed to "tiny particles of toxic
dust" that were damaging their lungs and shortening life expectancy.
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"I understand this is really difficult for Londoners, but that's why I felt it was so important that I
made this information public so people really understand the scale of the challenge we face in
London," he said.
Wednesday also saw Khan sign London up to the Breathe Life Coalition, which has been
organized by the WHO, UN Environment and the Clean Climate and Clean Air Coalition. The
Breathe Life Coalition is a campaign looking to mobilize people and cities "to protect our health
and planet from the effects of air pollution."
Efforts are being made to tackle London's pollution problems. October 23 will see a new 'T-
Charge' introduced to remove older, more polluting vehicles from the streets of central London.
The city is also set to be home to what authorities describe as the world's first Ultra Low Emission
Zone, subject to consultation.
Responding to the research, Friends of the Earth's air pollution campaigner said the new data was
a "wake-up call to politicians and Londoners alike."
"It's a little known fact that a lot of pollution comes from tire and brake-pad wear as well as from
vehicle exhausts," Jenny Bates said. "That's why we need fewer vehicles on the roads as well as
cleaner vehicles to protect Londoners health.
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NewBase October 05 - 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
WTI Oil Trades Below $50 as U.S. Export Surge Revives Glut Concerns
Bloomberg + Reuters + NewBase
Oil held three days of declines as a flood of U.S. crude exports revived concerns that a global glut
will persist.
Futures were little changed in
New York. Overseas
shipments from the U.S.
jumped last week to a record
as production also rose,
government data show.
Russia is open to extending a
deal with OPEC to curb
supplies, though it’ll wait to
make a decision until nearer
the expiry of the existing pact
in March, according to
President Vladimir Putin. Saudi King Salman bin Abdulaziz on Wednesday began a four-
day visit to the nation.
Though a rally in September helped propel oil into a bull market, prices have slipped back amid
concern the market remains oversupplied despite efforts by the Organization of Petroleum
Oil price special
coverage
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Exporting Countries and its allies including Russia to trim production. A possible extension of the
deal with OPEC, due to expire at the end of the first quarter, “should be at least until the end of
2018,” Putin said in Moscow.
“That exporting is giving the market jitters,’’ said David Lennox, an analyst at Fat Prophets in
Sydney, referring to record U.S. shipments. “It adds to the global supply, which at the moment is
probably in surplus.’’
West Texas Intermediate for November delivery lost 8 cents to $49.90 as of 2:23 p.m. in
Singapore. Total volume traded was about 59 percent below the 100-day average. Prices fell 44
cents, or 0.9 percent, to $49.98 on Wednesday.
Brent for December settlement lost 3 cents at $55.77 a barrel on the London-based ICE Futures
Europe exchange. The contract declined 20 cents, or 0.4 percent, to close at $55.80 a barrel on
Wednesday. The global benchmark crude traded at a premium of $5.50 to December WTI.
Lower demand from U.S. Gulf Coast refiners that are still recovering from Hurricane Harvey in
August has caused crude sellers to seek markets abroad, triggering shipments of 1.98 million
barrels a day, the highest level in weekly government data compiled since 1993. The figure was
about a third higher than the previous record, set the prior week.
King Salman of Saudi Arabia, OPEC’s biggest producer, is due to meet with Putin on Thursday.
The Russian President’s comments on Wednesday about the pact with the group are the
strongest signal yet that the Kremlin is willing to redouble efforts to lift global energy prices. OPEC
Secretary-General Mohammad Barkindo called them a “very strong endorsement” of the deal.
A tropical depression that could grow into a hurricane is forecast to strike the U.S. Gulf Coast late
Sunday, potentially forcing offshore oil and natural gas rigs to shut.
U.S. crude exports climbed to a record last week thanks to Hurricane Harvey, but the bonanza
may be short lived.
Lower demand from Gulf Coast refiners that are still recovering from the August storm has caused
crude sellers to seek markets abroad, triggering shipments of 1.98 million barrels a day, the
highest level in weekly government data compiled since 1993. The figure was about a third higher
than the previous record, set the prior week.
Growing U.S. production has spurred export volumes this year, the second since 40-year-old
restrictions on crude shipments abroad were lifted. But the latest spurt comes as the crude glut
created by Harvey has pressured the price of West Texas Intermediate crude in relation to
international benchmark Brent. That has made American crude more attractive than oil from the
North Sea, but the arbitrage window is already tightening.
“This big arbitrage has incentivized exports,” John Auers, executive vice president at energy
consultant Turner Mason & Co. in Dallas, said by phone. “As refiners return, the WTI-Brent spread
will narrow. Gulf Coast demand recovering from the storm will mean less domestic crude will leave
the U.S.”
WTI for December delivery settled $5.48 a barrel below December Brent on Wednesday. The
spread between the front-month futures contracts was more than $6 last week, WTI’s widest
discount in more than two years.
Refiners Return
While refineries in states along the Gulf Coast have restarted some units, they are still operating
below pre-storm levels.
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“Not all Gulf Coast refiners have recovered,” said Sandy Fielden, director of research and
commodities for Morningstar Inc. “There is still capacity not brought back on line.” Harvey did
more to boost exports than just shutter refineries, though.
Waterway disruptions caused by the storm kept suppliers from being able to move their cargoes,
and they’re now catching up on deliveries, Fielden said.
Almost a month after the storm passed, the Sabine Pass -- gateway to the Texas ports of
Beaumont and Port Arthur -- still had backlog of ships waiting since the storm to enter, according
to data compiled by Bloomberg. Heavy silting and sand buildup requiring dredging kept cargoes
from sailing for weeks, even after the ports had reopened.
Temporary Increase
The surge in exports isn’t expected to last long, though, unless there’s another hurricane, Auers
said, adding that the U.S. can comfortably export 1 million barrels a day or slightly more.
“We are close to the peak export level,” he said, noting that levels of 1.5 million to 2 million barrels
a day were a “temporary phenomenon” that wouldn’t be possible even with all U.S. refineries
operating. Still, as U.S output grows, exports will rise and there will be plenty of opportunities to
reach those heights again, he said.
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NewBase Special Coverage
News Agencies News Release October 05-2017
Renewable Energy Comes at You Fast
By Liam Denning
Dresden 1, the first commercial nuclear-power plant in the U.S., was switched on in 1960. It took
three years and, in today's money, about $250 million to build. You may have noticed that nuclear-
power projects require a little more time and money these days: Last week, the Trump
administration offered $3.7 billion of loan guarantees to Southern Co.'s Vogtle project in Georgia.
The budget for that has spiraled past $25 billion; and while construction began in 2009, it isn't
expected to start generating power until we are well into President Donald Trump's second term
(or his successor's first).
Phil Verleger, an energy economist, cited the contrast between Dresden 1 and Vogtle in a report
this summer as an example of how the costs and lead-times of energy mega-projects have
spiraled. I similarly compared the travails of the U.K.'s Hinkley C nuclear project to the
development of big oil and gas fields here.
Rising costs are an obvious impediment to any industrial project, while falling costs provide an
obvious edge. But don't overlook the importance of time. On Wednesday, the International Energy
Agency released its latest outlook for renewable energy and made this observation:
We see renewables growing by about 1,000 gigawatts by 2022, which equals about half of the
current global capacity in coal power, which took 80 years to build.
Let's adjust those numbers for utilization and say, very roughly, that coal plants produce at just 60
percent of their capacity and renewable sources at just 30 percent. Even then, we are talking
about renewable energy with the equivalent of a quarter of the effective capacity of the world's
coal power, which took eight decades to build, switching on within half a decade.
Here's the breakdown of global electricity generation, courtesy of the IEA:
King Coal
Coal-fired power output has flat-lined for several years but still leads by a wide margin
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The message there is that coal's share of the global power mix slipped slightly from about 41
percent in 2001 to 39 percent last year. Renewables, meanwhile, climbed from about a fifth to
one-quarter (the vast majority of that growth involving solar and wind power rather than
hydroelectricity).
It is, of course, tough to have your interest piqued by a move of a few percentage points spread
over 15 years. What is quite notable, however, is the picture that emerges when you look at the
annual change by source:
Sinking Coal
In terms of marginal growth, coal is losing out mostly to natural gas and, increasingly, renewable
power sources
Note: Change in global electricity production by major technology.
To make that a little clearer, here's how renewable power's share of growth in global power output
has changed in that time (on a rolling-three year basis to smooth out the wild swings in the
financial crisis):
Rising Sun (And Wind)
Renewable power now accounts for the majority of growth in global electricity output
Note: Rolling three-year averages.
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The IEA projects the share of renewable energy in the world's electricity mix to rise from about 24
percent in 2016 to 29 percent by 2022. By that year, therefore, renewable energy output is
expected to be bigger than the entire electricity consumption of China, India and Germany
combined.
More importantly, the extra electricity those projects will produce is expected to account for about
70 percent of the overall growth in power production worldwide. The implication is that coal and
natural gas (along with nuclear power) will be slugging it out for a shrunken share of growth.
And in contrast to what's happened with nuclear plants (and coal-fired plants), the costs of
renewable-power technologies have continued to fall.
Just as important, though, is how quickly they are being built.
One of the inherent advantages of wind and solar power installations is their scalability. By this
somewhat ungainly term, I mean that a project can begin small and get added to over time (or not)
as required. In a world where energy demand growth has slowed -- especially in developed
economies -- this modular approach can look more attractive than plunging into a mega-
project requiring billions of dollars (and years of development) up front in the hope its output will
be bought at a decent price down the road.
The added sting here is that, with every new turbine and panel installed, the market share of price-
taking capacity with zero fuel costs rises. The depressing effect this has on electricity prices, along
with flat demand, is one reason why the Trump administration is now proposing the effective re-
regulation of wholesale power markets to favor coal and nuclear plants.
Is this the end of coal? Of course not: It will still be the single-largest source of power in 2022,
under the IEA's assumptions.
Equally, though, those thousand-gigawatts of renewable projects the IEA foresees represent
some major facts on the ground springing up in what is, for this industry, the blink of an eye. For
anyone invested in coal (and natural gas, for that matter) to look at this and conclude "no biggie"
would be delusional.
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Solar Grew Faster Than All Other Forms of Power for the First Time
Solar power grew faster than any other source of fuel for the first time in 2016, the International
Energy Agency said in a report suggesting the technology will dominate renewables in the years
ahead.
The institution established after the first major oil crisis in 1973 said 165 gigawatts of renewables
were completed last year, which was two-thirds of the net expansion in electricity supply. Solar
powered by photovoltaics, or PVs, grew by 50 percent, with almost half of new plants built in
China.
“What we are witnessing is the birth of a new era in solar PV,” Fatih Birol, executive director of the
IEA, said in a statement accompanying the report published on Wednesday in Paris. “We expect
that solar PV capacity growth will be higher than any other renewable technology through 2022.”
This marks the sixth consecutive year that clean energy has set records for installations. Mass
manufacturing and a switch by governments away from fixed payments for renewables forced
down the cost of wind and solar technology.
The IEA expects about 1,000 gigawatts of renewables will be installed in the next five years, a
milestone that coal only accomplished after 80 years. That quantity of electricity surpasses what’s
consumed in China, India and Germany combined.
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The surge of photovoltaics in China is largely due to government support for renewables, which
are being demanded by a population concerned about air pollution and environmental degradation
that has led to deadly smogs. The country is seeking to reduce its reliance on coal and has
become the world’s largest market for renewables, particularly solar.
“The solar PV story is a Chinese story,” said Paolo Frankl, head of the IEA’s renewable energy
division. “China has been for a long time the leader in manufacturing. What’s new is the share in
the market. This year, it was equivalent to the total installed capacity of PV in Germany.”
The U.S. and India are among other nations pushing renewables. They along with China are
projected to make up two-thirds of the clean-energy expansion worldwide. Despite President
Donald Trump’s vow to bolster coal’s position in the power market, the U.S. is expected to be the
second-largest market for renewables.
The IEA also expects biofuels to take a larger role in the transportation industry, surpassing gains
by electric vehicles.
“A lot of attention has been given in recent months to electric vehicles, and rightly so. They are
increasingly globally, exponentially,” Frankl said. “But I have to say, we should not forget the
biofuels, which at the end of 2016 represented 96 percent of total renewable transport.”
Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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
Electric vehicles numbers will double by 2022, but biofuels will still make up 93 percent of
renewables consumed in the transport industry, the IEA estimates. The fuels are needed
especially for heavier vehicles including planes and ships.
The organization recommends that governments put incentives in place to spur the development
of biofuels made from non-edible plants, which would avoid diverting food crops into fuel tanks.
The cost of biofuels currently is about double the global price of gasoline, Frankl said.
THE SOLAR PRICE SLUMP
Solar energy is becoming much cheaper all over the world according to a GTM Research study by
solar analyst Ben Gallagher. He predicts that the price of constructing solar power technology will
decrease by 4.4 percent each year, meaning that by 2022 the price of projects will have dropped
by 27 percent. This decrease in cost is causing more countries to adopt solar power as a viable
means of supplying energy.
Gallagher attributes the falling price to
the globalization of the tools and
resources needed to construct the
systems — like the investors, labor cost,
modules, and trackers — which has
meant that “regional hardware pricing
[has] been eroded by market forces,” he
wrote in the study.
Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 27 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase October 2017 K. Al Awadi
Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 © 2015 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 endeavours 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

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New base 05 october 2017 energy news issue 1080 by khaled al awadi

  • 1. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 05 October 2017 - Issue No. 1080 Senior Editor Eng. Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Drydocks World takes on 2 new projects for FPSO Aoka Mizu (WAM) -- Drydocks World, the leading marine, onshore and offshore service provider to the oil, gas and renewable energy sectors, has signed an agreement for 2 new projects with Bluewater Energy Services B.V. and end client, Hurricane Energy Plc.. Building on Drydocks World’s excellent track record of 32 conversions and 6 turrets, the yard will now undertake a repair, life extension and upgrade project on Floating Production Storage and Offloading, FPSO, vessel Aoka Mizu, which will be deployed in the Lancaster Field West of the Shetland Islands after completion. Drydocks World will also carry out the fabrication of an over 1,000T Turret Buoy for Aoka Mizu, to help the vessel to moor and "weathervane" through 360 degrees at the field site. Drydocks World’s COO, Mohammad Rizal, commented, "Our expertise and dedication to the highest standards in HSEQ will deliver enhanced FPSO performance and operational efficiency. This is the first time we are working with Bluewater Energy and Hurricane Energy, we look forward to building strong partnerships for future collaboration, demonstrating the progressive approach and integrated solutions our Dubai yard has to offer." Hugo Heerema, President and CEO of Bluewater, said, "We have selected Drydocks World on the basis of their good track record, and the depth of understanding of the task ahead of them, in combination with the quality of their facilities, and convincing project organisation. So far, we have only been confirmed in that choice, and look forward to a smooth continuation of this challenging project, of which timely delivery is of the essence."
  • 2. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Saudi Aramco plans expansion in India with new unit: sources Oil giant Saudi Aramco will open an Indian subsidiary next week, three sources said, as the top global oil exporter looks to tap rising demand and invest in the world's third-biggest consumer. The company is investing in refineries in major markets to lock in customers ahead of its initial public offering next year, and the India unit, on top of sales, will look for opportunities to take stakes in refining and petrochemical projects in the country. Saudi Arabia is competing with Iraq to be India's top oil supplier, with Iraq displacing it for a fifth month in a row in August, data compiled by Reuters showed. Aramco Chief Executive Amin Nasser will inaugurate Aramco Asia India during a visit to New Delhi next week to attend the IHS-CERA conference, which starts on Sunday and which will also be attended by OPEC Secretary General Mohammed Barkindo. Nasser will also meet Indian Prime Minister Narendra Modi on Monday as part of an industry delegation to discuss investment in the oil and gas sector, one of the sources said. Neither Aramco nor the prime minister's office was available to comment. Mohammed Al-Mughirah, a company veteran handling crude sales, will head Aramco Asia India, two of the sources said. He also worked as deputy managing director at Aramco Asia Korea, according to his LinkedIn profile. Major oil producers that have lost market share due to the rise in U.S. shale oil production are tapping rising fuel demand in Asia. Earlier this year Saudi Arabia pledged billions of dollars of investment in projects in Indonesia and Malaysia to ensure long-term oil supply deals. The Kingdom wants to mirror that strategy in India, after missing out to Russia's Rosneft in an opportunity to buy a majority stake in private refiner Essar. Saudi Arabia's Energy Minister Khalid al-Falih has said that India was a prime target as Aramco looked for collaboration opportunities across Asia. The International Energy Agency estimates India's refining capacity will lag fuel demand going forward, requiring investment in new plants. Aramco representatives have met officials of provincial governments including West Bengal and southern Andhra Pradesh to scout for investment opportunities, sources said. Indian oil minister Dharmendra Pradhan said earlier this year that Aramco wants to have exclusive talks for a stake in a planned 1.2 million barrel per day refinery on India's west coast.
  • 3. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Egypt: SDX Energy announces oil discovery at Rabul-2 well, West Gharib Concession, Source: SDX Energy SDX Energy, the North Africa focused oil and gas company, has announced that an oil discovery has been made by the Rabul-2 well in the West Gharib Concession in Egypt (SDX 50% Working Interest & Joint Operator). The well encountered approx. 101.5 feet of net heavy oil pay across the Yusr and Bakr sand formations, with an average porosity of 20%. Evaluation is ongoing, after which the Company expects that the well will be completed as a producer in the Bakr and connected to the central processing facilities at Meseda. The Rabul-2 well is the last of the commitment wells in the West Gharib concession and was drilled as an offset to the first commitment well Rabul-1, which was drilled in July 2017. Rabul 1 encountered 14.5 feet of net heavy oil pay with an average porosity of 21.2% in the Yusr sands and was subsequently completed as an oil producer in the Yusr sands. Paul Welch, President and CEO of SDX, commented: 'This was our final commitment well in the West Gharib concession and we are encouraged by the result, which reaffirms our view of the area's significant development potential. The well came in ahead of expectations, based upon the results of the offset Rabul 1 location. The ultimate potential in this new Bakr structure is currently under review and will be better understood once the well is completed and tested. 'Today's news is also further evidence of the high activity levels right across the SDX portfolio including the filing of the fast track development plan in South Disouq Egypt. I look forward to providing further updates shortly on that filing, our development drilling campaign currently underway in Morocco and the production results at our Rabul 2 discovery.'
  • 4. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Nigeria: Erin Energy obtains funding for Miocene exploration well - successfully drills Oyo 9 production well..Source: Erin Energy Erin Energy has announced that funding commitment has been obtained to drill its high- impact Miocene exploration well. Site survey of the drilling location has been completed and the well is planned to be spudded during this quarter. Following the commitment to fund the drilling of the Miocene exploration well, the first option well of the drilling contract has been exercised with the drilling contractor. The company also announced the successful completion of the drilling phase of the Oyo-9 well. The well results indicate presence of the target channel system and 85.3 feet of net oil sand. The results are in line with predictions and confirm field extension to the western part of the field. Both the engineering and manufacturing of the subsea equipment are at various stages of completion. However, due to chronic delays in the release of the remaining funds and improper interference by the guarantor of the loan facility, as agreed to between the bank and Erin for the project, the Company has decided to temporarily suspend the completion and hookup of the development program. On several occasions the Company has demanded the guarantor cease and desist from interfering in the disbursement of funds for the project. Consequently, the Pacific Bora drilling rig and all drilling services has been demobilized. Following the recent decision of the Special Chamber of the International Tribunal of the Law of the Sea (ITLOS) in Hamburg concerning the maritime boundary dispute between Ghana and Côte d’Ivoire, the Company is working with the Government of Ghana and its partners to progress the development activities in its ESWT block, offshore Ghana. The ESWT block has three discovered fields with total in-place oil volume of 500MMstb. The 3D seismic data which will be acquired in Q2, 2018, will be used to improve subsurface definition and optimization of drilling targets.
  • 5. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Global gas-to-liquids growth is dominated by two projects in South Africa and Uzbekistan… Source: U.S. EIA, International Energy Outlook 2017 EIA’s International Energy Outlook 2017 (IEO2017) projects that liquids produced at gas-to-liquids (GTL) plants will increase as two large-scale projects are completed in South Africa and Uzbekistan. Most of the new GTL capacity will come from the conversion of Sasol’s coal-to-liquids plant in Secunda, South Africa, to a GTL facility. That conversion is expected to be completed by 2024. A previously delayed GTL facility in Uzbekistan is also expected to come online by 2021. Gas-to-liquids technologies typically use the Fischer-Tropsch Process to convert natural gas to petroleum products. The resulting products include diesel and gasoline, as well as waxes. EIA estimates global production from GTL facilities currently averages about 230,000 barrels per day (b/d), or about 0.2% of global liquids production. As of the beginning of 2017, more than 90% of this GTL production comes from four projects: two in Qatar, one in South Africa, and one in Nigeria. In the IEO2017 Reference case, EIA does not expect any other large-scale GTL plants to be built or expanded through 2040. Large GTL plants are capital intensive, and their economics depend on the price of crude oil relative to natural gas. Some countries with GTL facilities lack domestic oil resources but have access to natural gas. GTL plants allow these countries to convert natural gas to petroleum products.
  • 6. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Many previously planned expansions of existing GTL facilities have been put on hold, and additional expansions are not expected under projected market conditions. Aside from the South Africa and Uzbekistan projects, EIA expects the remaining growth in GTL output to come from relatively small facilities, each with a capacity of 5,000 b/d or less. Small GTL facilities can be modular, with prefabricated process units that are shipped to project sites and linked together instead of being built from the ground up in the field. Modular plants can be shipped and assembled in natural gas-producing regions with insufficient infrastructure to transport natural gas. Some of these projects may also include microchannel reactors that use small reactors to convert natural gas to liquids more efficiently but limit the overall throughput of a facility. Small-scale GTL projects can reduce flared natural gas from in-field production and emissions from landfills. Production from small-scale GTL plants is not a significant contributor to volumes of petroleum liquids in EIA’s IEO2017 Reference case. In the IEO2017 High Oil Price case, world crude oil prices are assumed to be much higher than in the IEO2017 Reference case, which provides an incentive to construct new GTL plants or add capacity at existing plants. In the High Oil Price case, global GTL production continues to increase from 2025 through 2040. In the Low Oil Price case, the Uzbekistan project is still assumed to come online, but no other projects (including the South Africa plant) come online after 2021. Source: U.S. Energy Information Administration, International Energy Outlook 2017
  • 7. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 UK: Everyone living in London is exposed to 'toxic' air CNBC - Anmar Frangoul All Londoners are living in areas where they are exposed to dangerous toxic air particles, according to a study. The research, which is based on the updated London Atmospheric Emissions Inventory, shows that every resident in the city lives in an area where the World Health Organization's (WHO) guidelines for toxic PM2.5 particles are exceeded. Staggeringly, it is also claimed that 7.9 million Londoners are in areas where WHO guidelines are exceeded by 50 percent or more. Particulate matter, or PM, describes the mix of liquid droplets and solid particles in the air, according to the U.K.'s Department for Environment, Food and Rural Affairs. PM2.5 refers to what is known as "fine particulate matter." London authorities said that the main sources of PM2.5 emissions were from construction, wood burning, and brake and tire wear. "This research is another damning indictment of the toxic air that all Londoners are forced to breathe every day," Mayor of London Sadiq Khan said in a statement. "It's sickening to know that not a single area of London meets World Health Organization health standards, but even worse than that, nearly 95 per cent of the capital is exceeding these guidelines by at least 50 per cent." Khan said that it was shameful how young people were being exposed to "tiny particles of toxic dust" that were damaging their lungs and shortening life expectancy.
  • 8. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 "I understand this is really difficult for Londoners, but that's why I felt it was so important that I made this information public so people really understand the scale of the challenge we face in London," he said. Wednesday also saw Khan sign London up to the Breathe Life Coalition, which has been organized by the WHO, UN Environment and the Clean Climate and Clean Air Coalition. The Breathe Life Coalition is a campaign looking to mobilize people and cities "to protect our health and planet from the effects of air pollution." Efforts are being made to tackle London's pollution problems. October 23 will see a new 'T- Charge' introduced to remove older, more polluting vehicles from the streets of central London. The city is also set to be home to what authorities describe as the world's first Ultra Low Emission Zone, subject to consultation. Responding to the research, Friends of the Earth's air pollution campaigner said the new data was a "wake-up call to politicians and Londoners alike." "It's a little known fact that a lot of pollution comes from tire and brake-pad wear as well as from vehicle exhausts," Jenny Bates said. "That's why we need fewer vehicles on the roads as well as cleaner vehicles to protect Londoners health.
  • 9. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 NewBase October 05 - 2017 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE WTI Oil Trades Below $50 as U.S. Export Surge Revives Glut Concerns Bloomberg + Reuters + NewBase Oil held three days of declines as a flood of U.S. crude exports revived concerns that a global glut will persist. Futures were little changed in New York. Overseas shipments from the U.S. jumped last week to a record as production also rose, government data show. Russia is open to extending a deal with OPEC to curb supplies, though it’ll wait to make a decision until nearer the expiry of the existing pact in March, according to President Vladimir Putin. Saudi King Salman bin Abdulaziz on Wednesday began a four- day visit to the nation. Though a rally in September helped propel oil into a bull market, prices have slipped back amid concern the market remains oversupplied despite efforts by the Organization of Petroleum Oil price special coverage
  • 10. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Exporting Countries and its allies including Russia to trim production. A possible extension of the deal with OPEC, due to expire at the end of the first quarter, “should be at least until the end of 2018,” Putin said in Moscow. “That exporting is giving the market jitters,’’ said David Lennox, an analyst at Fat Prophets in Sydney, referring to record U.S. shipments. “It adds to the global supply, which at the moment is probably in surplus.’’ West Texas Intermediate for November delivery lost 8 cents to $49.90 as of 2:23 p.m. in Singapore. Total volume traded was about 59 percent below the 100-day average. Prices fell 44 cents, or 0.9 percent, to $49.98 on Wednesday. Brent for December settlement lost 3 cents at $55.77 a barrel on the London-based ICE Futures Europe exchange. The contract declined 20 cents, or 0.4 percent, to close at $55.80 a barrel on Wednesday. The global benchmark crude traded at a premium of $5.50 to December WTI. Lower demand from U.S. Gulf Coast refiners that are still recovering from Hurricane Harvey in August has caused crude sellers to seek markets abroad, triggering shipments of 1.98 million barrels a day, the highest level in weekly government data compiled since 1993. The figure was about a third higher than the previous record, set the prior week. King Salman of Saudi Arabia, OPEC’s biggest producer, is due to meet with Putin on Thursday. The Russian President’s comments on Wednesday about the pact with the group are the strongest signal yet that the Kremlin is willing to redouble efforts to lift global energy prices. OPEC Secretary-General Mohammad Barkindo called them a “very strong endorsement” of the deal. A tropical depression that could grow into a hurricane is forecast to strike the U.S. Gulf Coast late Sunday, potentially forcing offshore oil and natural gas rigs to shut. U.S. crude exports climbed to a record last week thanks to Hurricane Harvey, but the bonanza may be short lived. Lower demand from Gulf Coast refiners that are still recovering from the August storm has caused crude sellers to seek markets abroad, triggering shipments of 1.98 million barrels a day, the highest level in weekly government data compiled since 1993. The figure was about a third higher than the previous record, set the prior week. Growing U.S. production has spurred export volumes this year, the second since 40-year-old restrictions on crude shipments abroad were lifted. But the latest spurt comes as the crude glut created by Harvey has pressured the price of West Texas Intermediate crude in relation to international benchmark Brent. That has made American crude more attractive than oil from the North Sea, but the arbitrage window is already tightening. “This big arbitrage has incentivized exports,” John Auers, executive vice president at energy consultant Turner Mason & Co. in Dallas, said by phone. “As refiners return, the WTI-Brent spread will narrow. Gulf Coast demand recovering from the storm will mean less domestic crude will leave the U.S.” WTI for December delivery settled $5.48 a barrel below December Brent on Wednesday. The spread between the front-month futures contracts was more than $6 last week, WTI’s widest discount in more than two years. Refiners Return While refineries in states along the Gulf Coast have restarted some units, they are still operating below pre-storm levels.
  • 11. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 “Not all Gulf Coast refiners have recovered,” said Sandy Fielden, director of research and commodities for Morningstar Inc. “There is still capacity not brought back on line.” Harvey did more to boost exports than just shutter refineries, though. Waterway disruptions caused by the storm kept suppliers from being able to move their cargoes, and they’re now catching up on deliveries, Fielden said. Almost a month after the storm passed, the Sabine Pass -- gateway to the Texas ports of Beaumont and Port Arthur -- still had backlog of ships waiting since the storm to enter, according to data compiled by Bloomberg. Heavy silting and sand buildup requiring dredging kept cargoes from sailing for weeks, even after the ports had reopened. Temporary Increase The surge in exports isn’t expected to last long, though, unless there’s another hurricane, Auers said, adding that the U.S. can comfortably export 1 million barrels a day or slightly more. “We are close to the peak export level,” he said, noting that levels of 1.5 million to 2 million barrels a day were a “temporary phenomenon” that wouldn’t be possible even with all U.S. refineries operating. Still, as U.S output grows, exports will rise and there will be plenty of opportunities to reach those heights again, he said.
  • 12. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 NewBase Special Coverage News Agencies News Release October 05-2017 Renewable Energy Comes at You Fast By Liam Denning Dresden 1, the first commercial nuclear-power plant in the U.S., was switched on in 1960. It took three years and, in today's money, about $250 million to build. You may have noticed that nuclear- power projects require a little more time and money these days: Last week, the Trump administration offered $3.7 billion of loan guarantees to Southern Co.'s Vogtle project in Georgia. The budget for that has spiraled past $25 billion; and while construction began in 2009, it isn't expected to start generating power until we are well into President Donald Trump's second term (or his successor's first). Phil Verleger, an energy economist, cited the contrast between Dresden 1 and Vogtle in a report this summer as an example of how the costs and lead-times of energy mega-projects have spiraled. I similarly compared the travails of the U.K.'s Hinkley C nuclear project to the development of big oil and gas fields here. Rising costs are an obvious impediment to any industrial project, while falling costs provide an obvious edge. But don't overlook the importance of time. On Wednesday, the International Energy Agency released its latest outlook for renewable energy and made this observation: We see renewables growing by about 1,000 gigawatts by 2022, which equals about half of the current global capacity in coal power, which took 80 years to build. Let's adjust those numbers for utilization and say, very roughly, that coal plants produce at just 60 percent of their capacity and renewable sources at just 30 percent. Even then, we are talking about renewable energy with the equivalent of a quarter of the effective capacity of the world's coal power, which took eight decades to build, switching on within half a decade. Here's the breakdown of global electricity generation, courtesy of the IEA: King Coal Coal-fired power output has flat-lined for several years but still leads by a wide margin
  • 13. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 message there is that coal's share of the global power mix slipped slightly from about 41 percent in 2001 to 39 percent last year. Renewables, meanwhile, climbed from about a fifth to one-quarter (the vast majority of that growth involving solar and wind power rather than hydroelectricity). It is, of course, tough to have your interest piqued by a move of a few percentage points spread over 15 years. What is quite notable, however, is the picture that emerges when you look at the annual change by source: Sinking Coal In terms of marginal growth, coal is losing out mostly to natural gas and, increasingly, renewable power sources Note: Change in global electricity production by major technology. To make that a little clearer, here's how renewable power's share of growth in global power output has changed in that time (on a rolling-three year basis to smooth out the wild swings in the financial crisis): Rising Sun (And Wind) Renewable power now accounts for the majority of growth in global electricity output Note: Rolling three-year averages.
  • 14. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 The IEA projects the share of renewable energy in the world's electricity mix to rise from about 24 percent in 2016 to 29 percent by 2022. By that year, therefore, renewable energy output is expected to be bigger than the entire electricity consumption of China, India and Germany combined. More importantly, the extra electricity those projects will produce is expected to account for about 70 percent of the overall growth in power production worldwide. The implication is that coal and natural gas (along with nuclear power) will be slugging it out for a shrunken share of growth. And in contrast to what's happened with nuclear plants (and coal-fired plants), the costs of renewable-power technologies have continued to fall. Just as important, though, is how quickly they are being built. One of the inherent advantages of wind and solar power installations is their scalability. By this somewhat ungainly term, I mean that a project can begin small and get added to over time (or not) as required. In a world where energy demand growth has slowed -- especially in developed economies -- this modular approach can look more attractive than plunging into a mega- project requiring billions of dollars (and years of development) up front in the hope its output will be bought at a decent price down the road. The added sting here is that, with every new turbine and panel installed, the market share of price- taking capacity with zero fuel costs rises. The depressing effect this has on electricity prices, along with flat demand, is one reason why the Trump administration is now proposing the effective re- regulation of wholesale power markets to favor coal and nuclear plants. Is this the end of coal? Of course not: It will still be the single-largest source of power in 2022, under the IEA's assumptions. Equally, though, those thousand-gigawatts of renewable projects the IEA foresees represent some major facts on the ground springing up in what is, for this industry, the blink of an eye. For anyone invested in coal (and natural gas, for that matter) to look at this and conclude "no biggie" would be delusional.
  • 15. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Solar Grew Faster Than All Other Forms of Power for the First Time Solar power grew faster than any other source of fuel for the first time in 2016, the International Energy Agency said in a report suggesting the technology will dominate renewables in the years ahead. The institution established after the first major oil crisis in 1973 said 165 gigawatts of renewables were completed last year, which was two-thirds of the net expansion in electricity supply. Solar powered by photovoltaics, or PVs, grew by 50 percent, with almost half of new plants built in China. “What we are witnessing is the birth of a new era in solar PV,” Fatih Birol, executive director of the IEA, said in a statement accompanying the report published on Wednesday in Paris. “We expect that solar PV capacity growth will be higher than any other renewable technology through 2022.” This marks the sixth consecutive year that clean energy has set records for installations. Mass manufacturing and a switch by governments away from fixed payments for renewables forced down the cost of wind and solar technology. The IEA expects about 1,000 gigawatts of renewables will be installed in the next five years, a milestone that coal only accomplished after 80 years. That quantity of electricity surpasses what’s consumed in China, India and Germany combined.
  • 16. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 The surge of photovoltaics in China is largely due to government support for renewables, which are being demanded by a population concerned about air pollution and environmental degradation that has led to deadly smogs. The country is seeking to reduce its reliance on coal and has become the world’s largest market for renewables, particularly solar. “The solar PV story is a Chinese story,” said Paolo Frankl, head of the IEA’s renewable energy division. “China has been for a long time the leader in manufacturing. What’s new is the share in the market. This year, it was equivalent to the total installed capacity of PV in Germany.” The U.S. and India are among other nations pushing renewables. They along with China are projected to make up two-thirds of the clean-energy expansion worldwide. Despite President Donald Trump’s vow to bolster coal’s position in the power market, the U.S. is expected to be the second-largest market for renewables. The IEA also expects biofuels to take a larger role in the transportation industry, surpassing gains by electric vehicles. “A lot of attention has been given in recent months to electric vehicles, and rightly so. They are increasingly globally, exponentially,” Frankl said. “But I have to say, we should not forget the biofuels, which at the end of 2016 represented 96 percent of total renewable transport.”
  • 17. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 Electric vehicles numbers will double by 2022, but biofuels will still make up 93 percent of renewables consumed in the transport industry, the IEA estimates. The fuels are needed especially for heavier vehicles including planes and ships. The organization recommends that governments put incentives in place to spur the development of biofuels made from non-edible plants, which would avoid diverting food crops into fuel tanks. The cost of biofuels currently is about double the global price of gasoline, Frankl said. THE SOLAR PRICE SLUMP Solar energy is becoming much cheaper all over the world according to a GTM Research study by solar analyst Ben Gallagher. He predicts that the price of constructing solar power technology will decrease by 4.4 percent each year, meaning that by 2022 the price of projects will have dropped by 27 percent. This decrease in cost is causing more countries to adopt solar power as a viable means of supplying energy. Gallagher attributes the falling price to the globalization of the tools and resources needed to construct the systems — like the investors, labor cost, modules, and trackers — which has meant that “regional hardware pricing [has] been eroded by market forces,” he wrote in the study.
  • 18. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Your partner in Energy Services NewBase energy news is produced daily (Sunday to Thursday) and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscription emails please contact Hawk Energy Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 Mobile: +97150-4822502 khdmohd@hawkenergy.net khdmohd@hotmail.com Khaled Al Awadi is a UAE National with a total of 27 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation, operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally, via GCC leading satellite Channels. NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase October 2017 K. Al Awadi
  • 19. Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours 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 © 2015 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 endeavours 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