New base 1034 special 25 may 2017 energy news

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 May 25 - 2017 - Issue No. 1034 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Construction begins at Abu Dhabi’s largest solar power project
The National - LeAnne Graves
Construction of Abu Dhabi’s largest solar power plant began on Wednesday after a financing
package, totaling Dh3.2 billion, was secured.
The 1.17 gigawatt plant, which will produce enough electricity to power about 200,000 homes, will
be built by Japan’s Marubeni and Jinko Solar of China. The Asian consortium submitted the
lowest bid to provide electricity at a non-weighted cost of 2.94 cents per kWh, making it one of the
cheapest solar projects in the world.
Sheikh Hazza bin Zayed, the vice chairman of the Abu Dhabi Executive Council, attended the
launch of the solar photovoltaic (PV) power plant in Sweihan, about 100 kilometres south-east of
the capital.
Sheikh Hazza said that this plant established Abu Dhabi as the capital for economic,
environmental and technological practices. "This project must be associated with the creation of

advanced research centres to drive the economic and technological journey, placing the UAE on
the world map of knowledge-based economies," he tweeted.
The emirate’s state-owned utility, the Abu Dhabi Water and Electricity Authority (Adwea), originally
targeted that financial close, execution of the land lease and engineering contract to be reached
by March 30, according to the project’s request for proposal (RFP). However, the 25-year power
purchase agreement was not signed until the beginning of March.
Adwea’s director general, Saif Saleh Al Sayari, said it raised US$620 million in debt with the
remaining $222m raised in equity. "The financing which is completed is a $650m project finance
from local and international commercial banks," said Mr Al Sayari, according to Reuters. He said
the 25-year loan is structured in a way that will allow refinancing after five years.
While Adwea will handle the equity, the Bank of Tokyo Mitsubishi is the leading arranger of the
loan, committing at least $100m in funding. Other Japanese lenders joined including Sumitomo
Mitsui Banking Corporation, Mitsubishi UFJ Trust and Norinchukin Bank followed by France’s BNP
Paribas Credit Agricole, Natixis and the First Abu Dhabi Bank.
Abu Dhabi has a 100MW concentrated solar power plant operated by clean energy company
Masdar and France’s Total, but this is Adwea’s first venture into renewable energy power
production. However, the utility has vast experience in independent power producer projects as it
initiated the model in the UAE dating back to 1998.
The RFP said that earliest that the plant will be connected to the grid will be in the fourth quarter of
next year and the latest date will be in March 2019.
This project falls in line with the UAE Energy Plan 2050, which aims to increase clean energy use
by 50 per cent and improve energy efficiency by 40 per cent, resulting in savings worth Dh700bn.

Oman: BP Khazzan project on track for first gas
Oman Observer
BP yesterday announced that it has reached a significant milestone in the development of the
Khazzan gas project with the successful drilling and completion of the 50th well at the large gas
field in Block 61.
This is the final well targeted for completion enabling first gas to be delivered later this year.
These first 50 wells will enable production of 1.0 billion cubic feet of gas a day (bcf/d) to be
achieved from first gas onwards and delivered to the Sultanate of Oman. This will rise to 1.5 bcf/d
once the second phase of the Khazzan project is fully up and running in 2020. A total of over 300
wells will be drilled over the estimated lifetime of the Khazzan project. The Khazzan gas reserves
lie at depths of up to five kilometres in narrow bands of extremely hard, dense rock.
These complex and challenging
conditions require specialist cutting
and drilling equipment, the drilling
of both vertical and horizontal
wells, stimulation technologies to
free the gas, as well as accuracy
and efficiency.
Local Omani businesses have
provided rigs, stimulation and
drilling support, with BP bringing to
bear its advanced seismic,
hydraulic fracturing and well design
expertise.
Omani firms have won drilling contracts valued at 85 per cent of the total spend at Khazzan and
60 per cent of overall well services contracts.
Drilling efficiency has increased significantly in the three years since drilling began with the
average time to drill and complete a vertical well reduced by 27 per cent. A record time of 60 days
was recently achieved for completion of one well.
Paul Forman, BP Oman Vice President in charge of wells, stated: “This is a big day for all of us
involved in the Khazzan project and is testament to what can be achieved by integrating wells and
reservoir understanding and working collaboratively with our suppliers and subject matter experts
in BP.
Our local Omani contractors have been an essential part of this success, offering products and
services from rig management and drill bits to well interventions.” BP is the Operator of Block 61
and holds a 60 per cent interest.
The Oman Oil Company for Exploration & Production holds a 40 per cent interest. In 2016, BP
signed an agreement with the Government of the Sultanate of Oman committing to amend the
Oman Block 61 exploration and production sharing agreement (EPSA).
This has added a further 1,150 km2 to the south and west of the original 2,800 km2 Block 61
development, allowing a second phase of development known as Ghazeer. Phase 1 (Khazzan) is
on track to deliver first gas by end 2017 producing 1.0 billion cubic feet of gas a day (bcf/d).
Combined plateau production from Phases 1 (Khazzan) and 2 (Ghazeer) is expected to be 1.5
billion cubic feet of gas a day (bcf/d).

NewBase 25 May 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices rise in anticipation of extended OPEC-led production cut
REUTERS + NewBase
Oil prices rose by one percent ahead of an OPEC meeting on Thursday that is expected to extend
output cuts into 2018, adding at least nine months to an initial six-month cut in the first half of this
year.
Brent crude futures LCOc1 were trading at $54.51 per barrel at 0209 GMT, up 55 cents, or 1
percent from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at
$51.87, up 51 cents, or 1 percent.
Prices have risen on a consensus that a pledge by the Organization of the Petroleum Exporting
Countries (OPEC) and other producers, including Russia, to cut supplies by 1.8 million barrels per
day (bpd) would be extended into 2018, instead of covering only the first half of 2917.
Speculation was rife that the cuts may be extended by nine and possibly 12 months, said Jeffrey
Halley, analyst at futures brokerage OANDA in Singapore.
The production cut, introduced in January, was initially only to cover the first half of 2017, but an
ongoing glut has put pressure on OPEC and its allies to extend the cut at a meeting in Vienna on
Thursday.
"This (extension) has been highly factored into the price of oil, and at this stage it is unlikely that
we will see a deepening in the level of production cuts, with OPEC officials preferring to wait and.
Oil price special
coverage

Energy consultancy Wood Mackenzie said a nine-month extension "would have little impact on
our price forecast for 2017, which is for an annual average of $55 per barrel for Brent."
It estimated that a nine-month extension would result in a 950,000 bpd production increase in the
United States, undermining OPEC's efforts.
U.S. oil production C-OUT-T-EIA has already risen by more than 10 percent since mid-2016 to
over 9.3 million bpd as its drillers take advantage of higher prices and the supply gap left by
OPEC and its allies.
Should the meeting in Vienna result in a cut extension to cover all of 2018, Wood Mackenzie said
the tighter market could push average 2018 Brent prices up to $63 per barrel.
Brent has averaged $53.90 per barrel so far this year. Should the meeting in Vienna fail to agree
an extended cut, traders expect oil prices to fall as this would result in ongoing oversupply.

How OPEC can get oil prices back to $60 a barrel
Bloomberg - Silvia Amaro | @Silvia_Amaro
Oil traders are eagerly anticipating an extension to OPEC's production cut this week, but one
analyst has told CNBC that comments from the oil cartel could be just as powerful in propping up
the price of the commodity.
"A lot depends on this meeting, at least in the wording," Amrita Sen, chief oil analyst at Energy
Aspects, said Wednesday when asked whether oil could surge to $60 a barrel after OPEC's
meeting on Thursday.
"Even if they (OPEC) don't do extra cuts, it's very important to come out and say: 'Look, we are
going to concentrate on the exports', and not just say it, actually do it," she added.
Sen explained that the only way that oil producers can get "visible inventories" to fall would be by
cutting exports, as opposed to just production. This would mean that countries like Saudi Arabia
would draw down their own oil stocks, which would subsequently mean consumers drawing down
on these oil reserves. This would provide a quicker fillip to the oil price, rather than continuing to
export at the same rate and just cutting production, she suggested.
"Summer demand is picking up, refineries are back, if they can get it right, if they can cut exports I
do think we see 60 (dollars a barrel) by late Summer," Sen added.
In December, OPEC and 11 non-members, including Russia, agreed to cut output by about 1.8
million barrels per day in the first half of 2017. The decision has pushed oil prices back above $50
per barrel. However, the U.S. shale industry has also grown since then, which challenges OPEC's
efforts to rebalance the oil market and has weighed on prices.
Saudi Arabia said earlier this year that it wants to see oil prices back near $60 a barrel in 2017.
On Wednesday morning, Brent was 0.2 percent higher trading at $54.26 a barrel and WTI was up
by 0.16 percent at $51.55 a barrel.
Ahead of Thursday's crucial meeting, Algerian Energy Minister Noureddine Boutarfa said Tuesday
that OPEC was discussing a possible nine-month extension to oil output cuts, according to
Reuters. However, the news agency also reported that UAE (United Arab Emirates) Energy
Minister Suhail bin Mohammed al-Mazroui said OPEC is debating whether to extend oil output
cuts by six or nine months.
"Nine months is a good start because everyone has been expecting six," Sen told CNBC
Wednesday. "But I think that the market now, given they announced nine months already a few
weeks ago, is expecting a little bit more, maybe deeper cuts, maybe at least keeping the door
open possibly for more cuts if inventories don't fall," Sen added.

Iran's Maxed-Out Crude Output
Iran’s oil industry bounced back from sanctions last year, cranking up output to recover market
share from other OPEC producers. Now that its surge has topped out, Iran supports an extension
of the group’s cuts to preserve those gains.
Oil Minister Bijan Namdar Zanganeh’s willingness to embrace a deal that leaves Iran room to
pump about 3.8 million barrels a day signals the country is already pumping near capacity,
according to analysts from BNP Paribas SA and Energy Aspects Ltd. The Organization of
Petroleum Exporting Countries is expected to agree to extend current curbs by nine months at a
Vienna meeting this week.
“Iran, knowing that its production capacity is limited anyway over the next year or so, is happy to
go along with the status quo,’’ Harry Tchilinguirian, a commodities analyst at BNP Paribas in
London, said by phone. “Iran is not the stumbling block.”
Oil producers are struggling to shore up markets after a global supply glut sent prices tumbling,
with Saudi Arabia and Russia proposing that their 24-nation alliance prolong output limits beyond
June and into the first quarter of 2018. Iran insisted on and won an exemption from the cuts that
took effect in January and has since pumped just below its cap -- unable to produce much more
even if it wanted to.
OPEC will meet Thursday in the Austrian capital to consider extending output cuts to clear a
global oversupply. It resorted to setting limits last year after benchmark Brent crude plunged to

less than half its 2014 high of more than $115 a barrel. Brent has averaged about $54 a
barrel since the end of November when OPEC members agreed to quotas.
“The Iranians will come on board,” said Richard Mallinson, an analyst at Energy Aspects Ltd. in
London. The Persian Gulf country boosted output and exports after international sanctions were
eased in January 2016, but its production capacity is stuck at about 3.8 million barrels a day, he
said. “Technically, they’re going to struggle to lift crude production above that level until the effect
of foreign investment starts to be felt.”
Most international oil companies held off from investing in Iran before the May 19 elections that
confirmed Hassan Rouhani as president for a second term. Rouhani hasn’t indicated yet which
cabinet members will keep their jobs, including Zanganeh, the oil minister.
Iran boosted output by about 800,000 barrels a day last year, according to the U.S. Energy
Information Administration, recouping some of the sales it lost to rivals while shackled by
sanctions. The Islamic republic increased its share of OPEC’s total sales to 8 percent, on par with
what it had prior to sanctions, data from the EIA show. It’s now the group’s third-largest producer
after Saudi Arabia and Iraq.
Exports have more than doubled to about 2.5 million barrels a day since restrictions were eased,
Zanganeh told reporters on May 6. Tanker-tracking data also show crude shipments rising but at a
slower rate, to 1.8 million. If other producers keep trimming their output under an extended cuts
agreement, Iran should be able to protect its enlarged slice of the market.
“All indications are that the members want a renewal of the deal, and we will go along with what
they agree upon,” Zanganeh said on May 6.

Iran pumped 3.76 million barrels a day in April, down slightly from January when it produced 3.8
million -- the most since April 2010, data compiled by Bloomberg show. The country needs to
keep spending if it wants to maintain output at such levels.
“If Iran doesn’t succeed in attracting investment, the natural pressure drop of its mature field will
be a major hurdle for sustaining production at the current level,” said Sara Vakhshouri, president
of Washington, D.C.-based consultant SVB Energy International LLC.
Projects that the state oil company is developing by itself will keep output steady for at least six
months, but Iran will need foreign expertise to tap new reservoirs, said Robin Mills, who previously
worked in the country as a geologist for Royal Dutch Shell Plc and now runs Dubai-based
consultant Qamar Energy.
While the U.S. extended sanctions relief for Iran earlier this month, President Donald Trump
excoriated the government’s alleged financing of terrorist groups during a visit to Saudi Arabia on
May 21. Trump said in a speech to leaders of predominantly Muslim nations that Iran should be
isolated until it actively supports peace. Rouhani dismissed the meeting in Riyadh as a “show
without political value,” speaking at a Monday news conference.
Rancor between regional rivals Saudi Arabia and Iran won’t stop Tehran from supporting the
Saudi-backed extension of output cuts, according to Fabio Scacciavillani, chief economist at the
Oman Investment Fund.
“You need to look at each country’s interest, not its words,” Scacciavillani said in an interview in
Dubai. “Where the Saudis and Iranians’ interests converge is in giving support to oil prices by
maintaining the production cuts.”

NewBase Special Coverage
News Agencies News Release 25 May 2017
Trump Proposes Selling Off Half U.S. Strategic Oil Reserve
Bloomberg - Catherine Traywick
The White House plan to trim the national debt includes selling off half of the nation’s emergency
oil stockpile and the entire backup gasoline supply, part of a broad series of changes proposed by
President Donald Trump to the federal government’s role in energy markets.
Trump’s first complete budget proposal, released Tuesday, would raise $500 million in fiscal year
2018 -- and as much $16.6 billion over the next decade -- by drawing down the Strategic
Petroleum Reserve.
“We think it’s a responsible thing to do," Mick Mulvaney, head of the White House Office of
Management and Budget, told reporters. The “risk goes down dramatically when we have
increased domestic production like we have today.”
The proposal also seeks to boost government revenues by allowing drilling in the Arctic National
Wildlife Refuge, ending the practice of sharing oil royalties with states along the Gulf of Mexico
and selling off government-owned electricity transmission lines in the West. Like much of the
budget, those moves are likely to face opposition on Capitol Hill.

Presidential budget proposals typically undergo significant changes in Congress, but they provide
insight into White House priorities.
The Strategic Petroleum Reserve currently holds 687.7 million barrels of oil in salt caverns and
tanks at designated locations in Texas and Louisiana, which allow for quick distribution when
natural disasters or unplanned incidents occur. The White House budget plan calls for selling 270
million barrels of reserve oil over the next decade beyond already planned sales, and it proposes
closing two of the four Gulf Coast reserve sites. After all those sales, the reserve would be about
260 million barrels, it said.
The plan also seeks to close the Northeast Gasoline Supply Reserve, an emergency gasoline
stockpile created in 2012 after Hurricane Sandy left some New York gas stations without fuel. It
holds 1 million barrels of gasoline, all of which would be sold in fiscal year 2018 under the White
House proposal.
Congressional Measures
Laws enacted in 2015 and 2016 call for the sale of nearly 190 million barrels of oil from the
strategic petroleum reserve between 2017 and 2025 to raise money for unrelated government
programs. Those sales would cut the reserve by about 27 percent. Slashing the stockpile in half
beyond that would require legal changes, as the reserve must now contain a minimum of 450
million barrels.
Critics said the move risks undercutting an essential safeguard created after the 1973 oil embargo
to help the U.S. weather supply shocks.
"The Strategic Petroleum Reserve is America’s only formal short-term line of defense against oil
supply disruptions and price spikes," said Robbie Diamond, president of Securing America’s

Future Energy, a group aiming to pare U.S. dependence on oil. "While we’ve been lulled into a
false sense of complacency by the current period of relatively low oil prices, disruptions and
volatility in the oil market are alive and well."
Oil, Gas Proposals
Trump is also seeking to raise money with two other proposed changes -- one that would be
cheered by the oil industry and another that would draw its ire.
He projects raising $1.8 billion over the next decade by opening up the 19-million-acre Arctic
National Wildlife Refuge to oil and gas development. The idea of allowing drilling in the refuge for
its estimated 12 billion barrels of crude has long been championed by Alaska Republicans,
including Senator Lisa Murkowski, who heads the appropriations subcommittee in charge of
Interior spending.
But it’s anathema to environmentalists, who have successfully blocked ANWR drilling plans from
advancing on Capitol Hill by stoking concerns about threats to the polar bears, caribou, wolves
and other animals that live in the territory.
"For 30 years, Congress has voted nearly 50 times on whether or not to drill in the Arctic National
Wildlife Refuge, yet our nation’s largest and wildest refuge remains protected today, thanks to the
overwhelming support of the American people," said Kristen Miller, interim executive director of
the Alaska Wilderness League.

Trump’s budget request suggests ANWR leasing could begin to pay off in fiscal 2022, with $100
billion in projected revenue that year. In addition to environmentalists’ opposition, it’s unclear how
much appetite energy companies would have for the reserve. Monster discoveries there could
yield decades of oil production, but the cost of operations in northern Alaska could discourage the
activity amid modest crude prices and the domestic shale boom.
Offshore Royalties
Trump’s budget request also revives an Obama-era proposal to cut the payments Gulf Coast
states collect from offshore drilling near their coastlines, a change that would translate to an extra
$3.56 billion in federal revenue over the next decade. Under a 2006 law, four Gulf states --
Alabama, Louisiana, Mississippi and Texas -- now claim 37.5 percent of the royalties that oil and
gas companies send the federal government in exchange for drilling rights and production on
some Gulf of Mexico leases.
Trump’s move echoes Obama’s attempt to divert some of those royalty payments. And his bid to
quash state revenue sharing is likely to meet the same fierce resistance that Obama’s plans did.
Just as they did under Obama, Gulf Coast lawmakers will fight to defend those payments, which
help support restoration programs.
The budget also proposes restarting the Nuclear Waste Fund Fee in 2020, a sign that the
administration is planning to have a permanent storage site for that waste up and running by that
time -- presumably at a site in Nevada known as Yucca Mountain. That fee would raise nearly
$3.1 billion over 10 years, it estimates.
The White House foresees $2.4 billion in additional revenue in 2019 from the sale of federally-
owned transmission lines in the West. Those power lines mostly carry electricity from government-
owned dams to metro areas.

Crossover utility vehicles blur distinction between passenger
cars and light trucks Source: U.S. EIA, based on National Highway Traffic Safety Administration
Light-duty vehicles are generally classified into two groups: passenger cars and light trucks.
However, crossover utility vehicles (CUVs)—which appear similar to sport utility vehicles but share
design attributes with passenger cars—are blurring the distinction between the two classifications.
The light truck category includes pickup trucks, minivans, sport-utility vehicles, and all other light-
duty vehicles that are not classified as passenger cars. Because light trucks have less stringent
fuel economy standards and generally consume more fuel than passenger cars to travel
equivalent distances, the increase in the sales share of light trucks has long-term effects for
vehicle fuel consumption.
For both passenger cars and light trucks, fuel economy standards are determined based on
vehicle footprint, the area of the rectangle defined by the points of contact between the four
wheels and the ground.
Analyses of vehicle sales and fuel economy trends are becoming more complicated by the
increasing adoption of CUVs, which are constructed like passenger cars, have similarly-sized
footprints, and often use the same small, fuel-efficient engines. The share of the total light-duty
vehicle market attributed to CUVs reached 32% in 2016 according to Wards Automotive, an
automotive analysis group.
The light trucks with larger vehicle footprints and lower fuel economy tend to be pick-up trucks,
such as the Ford F-150, or SUVs, such as the Chevrolet Tahoe. All else equal, the growing share
of CUVs counted as light trucks tends to raise the overall sales-weighted average of light trucks
sold.
In considering the effects of increased CUV popularity on fuel economy calculations, it is also
important to recognize that CUVs are classified in multiple ways by different government agencies
and industry sources. For example, the Bureau of Economic Analysis (BEA) within the
Department of Commerce and some industry sources classify vehicles on the basis of gross

vehicle weight limits, vehicle appearance, and other criteria. In BEA's data, all CUVs are counted
as light trucks.
When implementing fuel economy standards, however, the National Highway Traffic Safety
Administration (NHTSA) and the Environmental Protection Agency (EPA) categorize CUVs as
either passenger cars or light trucks depending on their characteristics and features. For instance,
one of the best-selling CUV models is the Honda CR-V. The two-wheel drive CR-V qualifies as a
passenger car, and the all-wheel drive CR-V qualifies as a light truck.
Other popular models that can be classified as a passenger car or light truck depending on how
they are optioned include the Toyota RAV4, Nissan Rogue, and Ford Escape. For these vehicles,
the differentiating factor is whether the vehicle has front-wheel drive or all-wheel drive.
Some other CUVs and vehicle model types may also be classified as passenger cars by EPA and
NHTSA depending on other criteria. The classification of some CUVs as passenger cars by
NHTSA results in the application of more stringent fuel economy standards to those vehicles
despite being classified as light trucks by some other sources.
Fuel economy improvements are projected to reduce future gasoline use
This application of fuel economy standards, as well as the higher fuel economy of CUVs classified
as light trucks by NHTSA compared with other types of light trucks, tends to moderate the fuel
economy and energy consumption implications of increases in the popularity of CUVs.
Anticipated changes in energy consumption by light-duty vehicles in the United States are based
on two factors: the amount of travel and the fuel economy of the vehicles used. The Annual
Energy Outlook 2017 (AEO2017) Reference case projects a decline in light-duty vehicle energy
use between 2018 and 2040 as improvements in fuel economy more than offset increases in light-
duty vehicle miles.
The number of vehicle-miles traveled in the United States by light-duty vehicles set a record at
2.84 trillion miles in 2016. As the number of miles driven per vehicle has remained relatively
steady at about 12,000 miles per vehicle, the recent increase in vehicle-miles traveled is more

attributable to an increase in the number of vehicles in use. Light-duty vehicle-miles traveled per
year are expected to continue to increase, ultimately reaching 3.33 trillion miles traveled in 2040.
The fuel economy of the light-duty vehicle stock is also expected to increase because of market
developments and increases in fuel economy standards for new vehicles. Although sales of new
vehicles make up a relatively small portion of the total light-duty vehicle fleet in any year and
existing vehicles can remain on the road for many years, fuel economy standards for new vehicles
and the mix of vehicles purchased have long-term implications for fuel consumption.
Light-duty vehicles are generally divided into two categories: passenger cars and light trucks. Fuel
economy and greenhouse gas (GHG) standards are set for the two categories by the National
Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA).
The standards applied by NHTSA and EPA are more stringent for passenger cars than for light
trucks, and they are determined based on the vehicle footprint, or the area of the rectangle
defined by the points of contact between the four wheels and the ground.
For model year 2015, the
required fuel economy
standards averaged about 35
miles per gallon (mpg) for
passenger cars and about 27
mpg for light trucks after
taking into account the
footprint mix of vehicles sold
within each category. The
standards for each category
are currently required to
increase over time so that the
standards for model year
2025 vehicles are expected to reach about 53 mpg and 38 mpg, respectively.
Because compliance fuel economy is based on a specific test procedure that applies certain
credits, compliance fuel economy generally exceeds on-road fuel economy. On-road fuel
economy is more relevant for estimating and forecasting energy consumption because it reflects
how the vehicle is actually used. For model year 2015, new vehicle on-road fuel economies
averaged about 31 mpg for passenger cars and about 21 mpg for light trucks.
EIA’s AEO2017 projections reflect both the changes in the vehicle sales mix and the fuel economy
standards that are applied separately to new passenger cars and light trucks. Despite an
increasing share of vehicles classified as light trucks, the AEO2017 Reference case projects
improved fuel economy of new light-duty vehicles and the in-use vehicle fleet through 2025 and
beyond.
Based on the more stringent fuel economy standards covering model years through 2025 that
have already been established, new on-road vehicle fuel economy for passenger cars is projected
to increase 43% between 2015 and 2025, from 31 mpg in 2015 to 45 mpg. New on-road light truck
fuel economy is projected to increase 46% over the same period, from 21 mpg to 31 mpg. Fuel
economy of the overall vehicle stock rises more slowly, given the slower turnover of light-duty
vehicles.
Because light trucks are projected to make up a growing share of the total light-duty vehicle fleet,
the weighted-average fuel economy is expected to be closer to that of light trucks. In the

AEO2017 Reference case, on-road fuel economy of new light-duty vehicles increases from about
25 mpg in 2015 to 36 mpg in 2025.
Source: U.S. Energy Information Administration, Annual Energy Outlook 2017
The net effect of these fuel economy trends is that light-duty vehicle energy consumption is
projected to decrease 12%, from 16.1 quadrillion British thermal units (Btu) in 2017 to 14.2
quadrillion Btu in 2025 in the AEO2017 Reference case, despite projected growth in vehicle-miles
traveled of 5% over the same period. Nearly all of this energy consumption is gasoline, with
gasoline consumption by light-duty vehicles projected to fall from 8.7 million barrels per day in
2017 to 7.5 million barrels per day in 2025.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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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 25 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 May 2017 K. Al Awadi

Solar power is the key to renewable development in the GCC. Installed solar capacity is expected
to reach 76 GW by 2020, representing massive opportunity for suppliers in the region.
Co-located with The Big 5 Dubai, The Big 5 Solar launches this November 26 - 29th 2017. 20% of The Big 5
visitors in 2016 were looking for solar technologies making The Big 5 Solar an ideal platform to meet
dedicated buyers, get inspired at the Global Solar Leader's Summit and open up to new markets.

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New base 1034 special 25 may 2017 energy news

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