UAE Cabinet approves reduced electricity fees

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NewBase Energy News 18 September 2018 - Issue No. 1200 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 Cabinet approves reduced electricity-consumption fees for
industrial sector upto 30% and no connection fees
(WAM) -- The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum,
the Vice President, Prime Minister and Ruler of Dubai, has adopted a resolution to support the
industrial sector by introducing reduced fees of electricity consumption for large, medium and small
factories.
"We launched today an initiative to support the industry sector and to affirm UAE’s position on the
global map as an attractive investment destination that provides an integrated environment for
growth and sustainability," said His Highness Sheikh Mohammed bin Rashid.
"We are investing in a sustainable industrial sector through the collaboration between different
government entities and our goal is to be a successful model for the green economy to preserve
our environment for future generations," His Highness added.
The initiative introduced a reduced tariff for electricity consumption for the industrial sector, to be in
effect as of Q4 of this year, while achieving sustainable growth by reducing dependence on non-
environmentally friendly sources such as liquid fuels.
Large factories will be supported by reducing the electricity consumption charges by 29%, while the
small and medium factories will have reduced fees by 10 percent to 22 percent, in addition to waiving
the service connection fees for new factories.
The Cabinet also approved the launch of the "one-day court" system to provide the fastest and most
efficient services to the community. The "one-day court" will contribute to speeding up the ruling in
minor criminal offenses. The initiative also affirms that the UAE is a state of institutions and law,
possessing a distinguished judicial system that is based on modern mechanisms and systems.
The UAE Cabinet approved a law to provide special residency-visa privileges for expats retirees
over the age of fifty-five years for a period of five years, with the possibility of renewal, according to

specific conditions. The law, which will be in effect as of 2019, outlines the requirements to qualify
for the long-term visa such as having an investment in a property worth AED2 million, or having
financial savings of no less than AED1 million, or having an active income of no less than
AED20,000 per month.
As part of the government's keenness to develop the human competencies across the federal
government and to optimise human resources, the UAE Cabinet has approved the project of
Succession Planning and Talents Pool in the federal government. The project aims to ensure that
the Emirati manpower is equipped with the necessary tools to assume leadership and specialised
positions.
The Cabinet adopted the unified national standards for public and private hospitals, which is in line
with the UAE Vision 2021 to improve the level of services provided in the UAE in accordance to best
standards and best international practices. The new unified standards provide guidelines for health
care professionals and hospital design, as well as other standards for medicines, patients' rights,
and patients’ families.
It also approved a resolution on the control and stamping requirements for trading in precious stones
and precious metals to establish the necessary regulatory framework while preserving the high
reputation of the UAE and increase its attractiveness to investments in this field.
The Cabinet approved an agreement between the UAE and the Government of the Russian
Federation on the mutual exemption of visa requirements for citizens of both countries, and
approved an agreement between the UAE and the Government of the Republic of Gabon regarding
the establishment of an embassy to the Republic of Zimbabwe in Harare.
The Cabinet approved the signing of an agreement between the UAE and the Government of the
Republic of Cyprus on economic and technical cooperation, as well as a number of other
agreements.

UAE: Abu Dhabi to IPO at least 25% of Spanish oil company Cepsa
Bloomberg - Amanda Jordan + NewBase
Abu Dhabi is pushing ahead with an initial public offering for Spanish oil company Cia Espanola de
Petroleos SAU, in what could be the largest such deal in a decade.
The emirate’s Mubadala Investment Co. will offer a stake of at least 25 percent in Cepsa in the
fourth quarter, the state-owned investor said Monday in a statement. The Madrid-based refiner will
list on Spanish exchanges.
Mubadala is proceeding with an IPO rather than a sale after potential bidders were narrowed down
to private-equity firm Carlyle Group LP, people familiar with the matter said previously. Cepsa could
raise about 3 billion euros ($3.5 billion), people said, making it the biggest oil IPO in about 10 years,
according to data compiled by Bloomberg.
That would value the whole company at as much as 10 billion euros, handing Abu Dhabi significant
paper gains because its funds took full control of the firm in 2011 in a deal valuing it at about 7.5
billion euros.
A unit of Mubadala acquired the almost 90-year-old Cepsa amid a push to invest in downstream
industries such as oil refining to ensure future demand for crude from the United Arab Emirates.
Citigroup Inc., Bank of America Merrill Lynch, Banco Santander SA and Morgan Stanley are joint
global coordinators and bookrunners, according to the statement. Barclays Plc, BNP Paribas SA,
First Abu Dhabi Bank PJSC, Societe Generale SA and UBS Group AG are additional bookrunners.
We are a global, integrated company operating across the entire oil and gas value chain. Mubadala Investment
Company Group is our sole shareholder and we have over 90 years of experience. This has helped us to be one
of the leading energy companies in Spain and to develop our businesses across five continents

GCC: fertilizer production to hit 47m tonnes by 2025
GPCA + Trade Arabia + Newbase
The GCC fertilizer production capacity is likely to reach 38.9 million tonnes this year and poised to
hit an estimated 47 million tonnes by 2025 growing at a CAGR (compound annual growth rate) of
7.7 per cent between 2007-2017.
At 46 per cent, Saudi Arabia accounts for almost half of GCC fertilizer production in 2018, followed
by Qatar (25 per cent) and Oman (12 per cent), which has increased its share from 11 per cent in
2017, said a report by the Gulf Petrochemicals and Chemicals Associations (GPCA).
According to GPCA, the fertilizer exports in the Gulf region have surged to historic levels of 20.4
million tonnes, up 5.3 per cent in 2017 compared to the previous year as rising market protectionism
continues to dominate the international markets.
The figures grew 5.3 per cent year-on-year registering a CAGR of 6 per cent between the 2007-
2017 period, stated GPCA, the voice of the chemical industry in the Arabian Gulf region.
Growth in regional fertilizer trade comes in stark contrast to escalating market tensions and
changing trade policies between major economic powers such as the United States, European
Union and China, it added.
The GCC fertilizer industry remains heavily export-oriented, shipping its products to 80 countries
from across the globe, with India, Brazil and the US emerging the top three GCC export destinations.
Asia accounted for 55 per cent of total exports in 2017, followed by South America (21 per cent),
North America (15 per cent), and Africa (7 per cent).
GPCA said the sales revenues have also been growing at a CAGR of 5.7 per cent between 2010
and 2017, standing at $5.9 billion in 2017, albeit down from a peak of $7.2 billion in 2014 due to a
drop in global fertilizer prices.

As a key contributor to socio-economic development in the region, the GCC fertilizer industry
accounts for 54,900 direct and indirect jobs, growing at a CAGR of 7.2 per cent over the past
decade, said the GPCA in its report.
In 2017, the industry generated $6.7 billion in indirect economic activity in the region, from support
services, to warehousing and distribution, to packaging and others, it added.
The key role of fertilizers in ensuring food security, innovations in regional agriculture and new trade
developments from across the globe will be in the spotlight at the ninth GPCA Fertilizer Convention
which opens on September 18 in Muscat, Oman.
The three-day convention is being held under the patronage of Dr Fuad Bin Jaafar Bin Mohammed
Al-Sajwani, Minister of Agriculture and Fisheries, Oman.
To be held under the theme “New frontiers and opportunities, the event will see the presence of
Salim Al-Aufi, Undersecretary of Ministry of Oil and Gas, Oman. The opening remarks at the event
will be by Dr Abdulrahman Jawahery, President, GPIC and Vice Chairman, GPCA.
On the upcoming event, GPCA Secretary General Dr Abdulwahab Al Sadoun said: "Despite a
continuing rise in global market protectionism, the Gulf region has enjoyed record high fertilizer
exports in 2017, thus, cementing its position as a globally recognized hub for the production and
export of fertilizers."
"To sustain and increase this growth, the industry would need to continue to explore new markets
globally, and free trade will play a key role in ensuring its profitability and the sustainable
development of the region, to which the industry is an important contributor," he added.-

U.S gas explosions shine spotlight on century-old pipelines Net
Reuters - Tim McLaughlin + NewBase
Thousands of miles of natural gas pipelines in Massachusetts are leak-prone and need repair,
utilities have told state regulators, highlighting aging energy infrastructure risks after explosions
ripped through three towns outside of Boston this week.
Federal investigators will examine pipeline maintenance in their probe into the Thursday night blasts
in Lawrence, Andover, and North Andover, Robert Sumwalt, chairman of the National
Transportation Safety Board, said on Friday.
The explosions on a pipeline system belonging to Columbia Gas of Massachusetts destroyed
scores of homes, killed one person and injured more than a dozen others in the largest natural gas
pipeline incident in nearly a decade.
The investigation could provide insight into the nation’s aging pipeline infrastructure. Roughly half
of the 2.4 million miles of pipelines crisscrossing the United States were installed before 1970, said
Deborah Hersman, chief executive of the non-profit National Safety Council and a former chairman
of the National Transportation Safety Board.
Columbia Gas, a unit of NiSource Inc (NI.N), owns and operates nearly 5,000 miles of gas pipeline
across Massachusetts. But about 15 percent of that includes leak-prone pipes, the company told
the Massachusetts Department of Public Utilities in April, as part of its gas system enhancement
plan filing.
Columbia Gas and other utilities say the Massachusetts natural gas distribution system is one of
the oldest in the United States, with sections built more than a century ago. The company told
regulators that it repairs more than 1,200 leaks a year, on average, mostly on its main line pipes.
In 2016, for example, replacing leak-prone pipes was expected to cost it about $56 million.
Columbia had told customers it was conducting upgrades on parts of its system shortly before the
explosions… The company was not available for comment.
Columbia Gas has had a clear safety record for more than a decade in Massachusetts, though a
pipeline rupture in West Virginia in 2012 triggered an explosion that destroyed three houses,
according to records from the National Transportation and Safety Board and the Pipeline and
Hazardous Materials Safety Administration.

Eversource Energy (ES.N) has disclosed that about one-third of its 3,3000 miles of distribution
pipeline is leak-prone. The utility replaced about 40 miles of such pipes in 2017 and had plans for
another 45 miles this year, according to disclosures with state regulators in April.
Boston Gas, a unit of National Grid, replaced 107 miles of leak-prone pipes in 2016, disclosures to
regulators show. But the utility has said it does not expect to have all of leak-prone pipes replaced
until 2039.
Democratic Senators Ed Markey and Elizabeth Warren urged a Congressional investigation into the
explosions to prevent any recurrence, according to a joint statement released on Friday.
Investigators suspected “over-pressurization of a gas main” was a factor in the incident.

Gabon: BW Offshore announces first oil production at Tortue
Source: BW Offshore
BW Offshore has announced that first oil from the BW Adolo FPSO was safely achieved on 16
September 2018, 18 months after the initial investment was made in the Dussafu license offshore
Gabon.
'We have achieved first oil from the Dussafu license within budget and on schedule', said Carl K.
Arnet, the CEO of BW Offshore. 'The execution of the Dussafu project confirms the attractiveness
of our model by combining proven resources, a resourceful organisation and access to production
assets to achieve short time-to-oil.'
The BW Adolo arrived in Gabon in late July and hook up of mooring systems and installation of
risers and umbilicals were completed in September. The project was safely completed without any
harm to people or the environment. The FPSO is installed on the Tortue field, one of five proven
discoveries in the Dussafu license.
The BW Adolo is a converted VLCC with a production capacity of 40,000 barrels of oil per day. The
vessel has undergone an increased life extension scope enabling an extended production profile
on the back of positive reserve developments.
'Our first priority now is to complete start-up activities and stabilise production on BW Adolo. We will
at the same time work towards the final investment decision on Tortue Phase 2, which will unlock
additional production volumes, and continue the appraisal program of the recently announced
discovery at Ruche NE as well as to confirm additional resources and strengthen the commerciality
of the Dussafu license,' said Carl K. Arnet.

UK competition to install electric vehicle fast-charge network
'backed by GBP400 million fund': Clark S&P Global + NewBase
The UK government is to support the roll-out of fast-charging networks for electric vehicles,
Business Secretary Greg Clark said Tuesday on BBC Radio 4's Today Program.
There is to be a competition for commercial partners to work with the government to provide fast-
charging facilities on motorways up and down the country, backed by a GBP400 million ($523
million) investment fund to accelerate the process, Clark said.
Clark was speaking ahead of a planned speech by UK Prime Minister Theresa May at a Zero
Emission Vehicle Summit in Birmingham, detailing a GBP106 million package of projects developing
battery, electric vehicle and refueling technology.
May is to host an automotive roundtable with supply-chain companies from Germany, the US,
Japan, China, Spain and India, to explore what more the government and industry can do "to
accelerate the development of the zero-emissions market," the Department of Business, Energy
and Industrial Strategy said.
This is the third roundtable organized by the government to drive foreign direct-investment into the
UK as it prepares to leave the EU.
The government is also preparing an international declaration "that will forge the way for the
worldwide deployment of green vehicles, and the introduction of smart, zero-emission
infrastructure," BEIS said.
UK-manufactured EVs account for one in five sold in Europe. The UK has a target for all new cars
and vans to be zero-emission by 2040, and for every car and van to be zero-emission by 2050.
Industry is to use the summit in Birmingham to announce investment of over GBP500 million in
projects relating to low emission technology.
EV Network, a UK-based charging station development company, is developing 200 fast-charging
stations throughout the UK, representing an investment of around GBP200 million. Leclanche is to
supply battery storage units to the stations, BEIS said.
Meanwhile Cummins is to invest GBP210 million in research and development in the automotive
and associated industries over the next three years in the UK, the ministry said.

Germany & Russia reaffirm support for Nord Stream 2 gas pipeline
RT - Grigory Sysoev / Sputnik
Moscow and Berlin have expressed the importance of the Russian gas pipeline project Nord Stream
2 to Germany, Russian Foreign Minister Sergey Lavrov stated on Friday.
"We’ve discussed the complex of issues related to energy cooperation and confirmed the support
for the Nord Stream 2 project, which is of a commercial nature and the implementation of which will
strengthen the energy security of the European continent," said Lavrov after a meeting with his
German counterpart Heiko Maas in Berlin.
The topic of the Nord Stream 2 pipeline was also raised during German Chancellor Angela Merkel's
visit to Lithuania. Merkel said that she understood the Baltic countries' criticism over the expansion
of the Nord Stream gas pipeline, but insisted that the project made economic sense. She added
that Ukraine would still be a gas transit country after the pipeline is complete.
The goal of the $11 billion Nord Stream 2 pipeline project is to double the existing pipeline’s annual
capacity of 55 billion cubic meters.
The first part of the joint project has been in operation since 2011. Moscow has repeatedly described
Nord Stream 2 as a “purely economic project” and said Washington opposes it because it wants to
force-feed its own liquefied natural gas (LNG) to Europe.
Despite political setbacks between Russia and Germany, Berlin has been a firm supporter of the
Nord Stream 2 pipeline and has been pushing for its implementation through the EU.

Saudia,Russia & U.S can offset fall in Iran crude oil supplies
Reuters + NewBase
Saudi Arabia, the United States and Russia can between them raise global output in the next 18
months to compensate for falling oil supplies from Iran and elsewhere, U.S. Energy Secretary Rick Perry
said on a visit to Moscow on Friday.
U.S. sanctions on Iran’s oil exports, which come into force in
November, have already cut supply back to two-year lows, while
falling Venezuelan output and unplanned outages elsewhere could
push up crude prices, hurting consumers.
But Perry, in an interview with Reuters, said he felt comfortable about
the outlook for global crude output, and for oil prices.
“I don’t foresee spikes,” Perry said, although he added there was
always the potential for unforeseen events. Some analysts have expressed concerns about Saudi
Arabia’s long-term ability to significantly boost output.
But Perry said: “There’s a number of things going on in the kingdom that continue to give me a very
positive feeling about their ability to maintain their level and even increase their level” of crude
production.
He cited the prospect that Kuwait and Saudi Arabia would soon resolve a border dispute, unlocking
access to an oil field in a contested area. “They are working toward a solution in the not too distant
future,” he said.
On U.S. production, which has already been growing over the past few years, Perry said: “You look
out 18 months, and I think you’ll see even a more substantial increase in the United States because
of pipeline capacity being built out.”
Russia, meanwhile, was “working diligently” to deliver its oil output to the world market, Perry said.

GOOD CITIZEN
Perry was in Moscow for talks with his Russian counterpart, Energy Minister Alexander Novak.
Visits by senior U.S. officials are a rarity after relations between Moscow and Washington
nosedived, first over the Ukraine crisis and later over allegations of Russian meddling in the U.S.
presidential election.
The administration of U.S. President Donald Trump has imposed sanctions on Russia, and Perry
said that, while he would rather not see any more, that was a real prospect.
“You avoid that by being a good citizen. You avoid that by obviously tending to this issue with
Ukraine, you do this by not meddling in our elections, you do this by not engaging in activities that
are considered to be uncivilized, for instance, the poisoning of the people in the UK,” Perry said.
“Russia has the opportunity to send a message that they are going to be good neighbors, they are
going to be civilized in the way they deal with their neighbors. That has yet to be seen, from our
perspective, in dealing with Ukraine.”
Russia’s conduct toward other countries would influence whether the United States was compelled
to impose sanctions on the Russian-led Nord Stream 2 pipeline project. The project will expand the
capacity for pumping Russian gas to northern Europe. Trump has criticized it, saying it will increase
European dependence on Russian energy.
Referring to an internationally-brokered roadmap for resolving a conflict in eastern Ukraine between
Kiev and Russian-backed separatists, Perry said: “If Russia deals with the Minsk agreement in an
appropriate way, there are some signals being sent to the rest of the European Union.”
“Until those signals get sent,
the potential sanctions of
Nordstream 2 are still very
real ... I’ll suggest to you that
the ball is in Russia’s court,”
he said. In the interview,
Perry issued a message for
the European Union, saying it
needed to wean itself off its
dependence on Russian
energy supplies.
“If you’re a country in the
European Union and you see
how Ukraine has been
treated by Russia, then
(Russia) being the sole
source or practically the sole
source of gas to your country
will give you a pause,” Perry
told Reuters.
“And I think that’s an appropriate and rightful position to take. Have alternatives. Have competition.
Have other pipelines,” he said. “So Europe by and large understand that they need multiple sources
of energy and we agree with them.”

The United States is now the largest global crude oil producer
Source: U.S. Energy Information Administration, Short-Term Energy Outlook
The United States likely surpassed Russia and Saudi Arabia to become the world’s largest crude
oil producer earlier this year, based on preliminary estimates in EIA’s Short-Term Energy
Outlook (STEO). In February, U.S. crude oil production exceeded that of Saudi Arabia for the first
time in more than two decades. In June and August, the United States surpassed Russia in crude
oil production for the first time since February 1999.
Although EIA does not publish crude oil production forecasts for Russia and Saudi Arabia in STEO,
EIA expects that U.S. crude oil production will continue to exceed Russian and Saudi Arabian crude
oil production for the remaining months of 2018 and through 2019.
U.S. crude oil production, particularly from light sweet crude oil grades, has rapidly increased since
2011. Much of the recent growth has occurred in areas such as the Permian region in western Texas
and eastern New Mexico, the Federal Offshore Gulf of Mexico, and the Bakken region in North
Dakota and Montana.
The oil price decline in mid-2014 resulted in U.S. producers reducing their costs and temporarily
scaling back crude oil production. However, after crude oil prices increased in early 2016,
investment and production began increasing later that year. By comparison, Russia and Saudi
Arabia have maintained relatively steady crude oil production growth in recent years.
Saudi Arabia's crude oil and other liquids production data are EIA internal estimates. Russian data
mainly come from the Russian Ministry of Oil, which publishes crude oil and condensate numbers.
Other sources used to inform these estimates include data from major producing companies,
international organizations (such as the International Energy Agency), and industry publications,
among others.

NewBase September 18 - 2018 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices drop as escalating U.S.-China trade war clouds demand
Reuters + Bloomberg + NewBase
Oil markets fell on Tuesday as the latest escalation in the Sino-U.S. trade war clouded the outlook
for crude demand from the two countries, which are the world’s top two oil consumers.
Brent crude LCOc1 futures dropped 44 cents, or 0.6 percent, to $77.61 per barrel by 0424 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 28 cents, or 0.4 percent, to $68.62 per
barrel.
“The growing trade dispute has hurt trading sentiment. The impact on economic growth is slowly
dripping in, which again hurts oil prices,” Wang Xiao, head of crude research at Guotai Junan
Futures, said on Tuesday.
Refineries in the United States consumed about 17.7 million barrels per day (bpd) of crude oil last
week while China’s refiners used about 11.8 million bpd in August, according to government data
from the countries, the most among the world’s countries.
Oil price special
coverage

The tariffs are likely to limit economic activity in both the China and the United States and that should
lower oil demand growth as less fuel is consumed to move goods for trade.
However, potential supply cuts caused by U.S. sanctions on Iran, the third-largest producer among
the members of the Organization of the Petroleum Exporting Countries (OPEC), are providing some
support for oil prices.
Sanctions affecting Iran’s petroleum sector will come into force from Nov. 4
Iranian crude oil export loadings have declined by 580,000 bpd in the past three months, Bank of
America Merrill Lynch analysts said in a note to clients. Meanwhile, oil output from seven major U.S.
shale formations is expected to rise by 79,000 bpd to 7.6 million bpd in October, the U.S. Energy
Information Administration said on Monday.
Technical analysis from Reuters market analyst Wang Tao showed that U.S. oil prices have
repeatedly failed to overcome a resistance level of $69.85 per barrel, signaling a dissipation of
positive outlook.
Brent may fall more than $1 to $76.37 a barrel while WTI crude prices may revisit the Sept. 14 low
of $67.94, he wrote.
On Monday, Russia’s Energy Minister Alexander Novak said that OPEC and non-OPEC members
will discuss all possible supply scenarios when they meet this month in Algeria. Russia, the world’s
largest oil producer, and other producers in OPEC have kept in place a supply agreement to
maintain prices while at the same time providing enough oil to the market.
Iran is the third-largest OPEC producer.
A deepening trade war between United States and China is unsettling commodities and energy
markets. U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on
Chinese imports on Monday, a senior administration official told Reuters.

The trade dispute is raising concerns about the potential for slower growth in oil consumption,
offsetting supply concerns stemming from the upcoming U.S. sanctions on Iran over its nuclear
program.
Also weighing on oil prices, U.S. drillers added two oil rigs in the week to Dec. 1, bringing the total
count up to 749, the highest since September, Baker Hughes energy services firm said on Friday.
A Joint Technical Committee of OPEC and non-OPEC producers was due to meet on Monday to
coordinate production may speak afterwards.
“Markets will be looking towards OPEC and Joint Technical Committee conference call for forward
guidance on oil market fundamentals in the coming term,” said Benjamin Lu, a broker at Philip
Futures.
Analysis: US crude stocks expected to drop as exports surge
S& P Global - AuthorChris van Moessner
HIGHLIGHTS
 Crude inventories expected to fall by 3 million barrels
 US exports surge to 2.16 million b/d: cFlow
 Refinery turnarounds expected to bite into utilization rates
A strong uptick in US exports coupled with still-strong refinery runs likely contributed to a further
draw in US crude stocks last week, an S&P Global Platts Analysis showed Monday. Commercial
crude inventories were expected to have fallen by 3 million barrels during the week ended 14
September, according to analysts surveyed by Platts on Monday. The expectations for a further
decline came on the heels of a larger than expected draw of 5.3 million barrels the week prior.
Total US waterborne crude exports reached 2.16 million b/d for the reporting period ending 14
September, up nearly 24 percentage points from 1.74 million b/d during the week prior, according
to S&P Global Analytics cFlow estimates.

Stepped-up exports from the US Gulf Coast to Northwest Europe accounted for the bulk of the
uptick, cFlow, Platts trade-flow software showed. Flows to the United Kingdom grew to 2.13 million
barrels, up from 511,000 barrels the week prior, and 1.08 million barrels were exported to the
Netherlands, which took no USGC crude during the previous week.
The discount for WTI compared to Brent dipped to more than $10/b last week, favoring USGC
exports into Europe on paper. Platts data last showed WTI at a definitive discount to North Sea
Forties in Rotterdam during the last week of July, when WTI averaged $1.41/b below Forties for the
week ended 3 August.
But in the weeks since, arbitrage economics appear to be shifting in favor of local grades, Platts
data showed. To date in September WTI delivered into Rotterdam has averaged at a 59 cent/b
premium compared to North Sea Forties crude, up from roughly plus 34.4 cents/b in August.
REFINERY RATES FALL AS TURNAROUNDS INCREASE
Analysts surveyed by Platts expected crude inventories to fall even as they anticipated a 0.8
percentage point reduction in refinery utilization last week. This is expected to take refinery
utilization to 96.8% of capacity.
Total refinery utilization remains very strong, with rates just below 10-year highs, according to the
Energy Information Administration. Last week analysts had expected a 0.9 percentage point decline
in utilization during the week ended 7 September, but EIA data later showed that utilization had
increased by 1 percentage point to 97.6% of total capacity.
But increased refinery turnarounds is expected to bring this number lower. Refinery maintenance
took 2.38 million b/d of refinery capacity offline during the week ended 14 September, an uptick of
545,000 b/d from the week prior, according to S&P Global Platts Analytics data.
In addition, last week ExxonMobil and Phillips 66 each reported processing unit issues at separate
Illinois refineries. Exxon notified regulators of issues with an undisclosed unit at its 238,000 b/d

Joliet refinery in Channahon and Phillips 66 reported issues with an undisclosed unit at its 314,000
b/d Wood River plant in Roxana.
PRODUCTS OUTLOOK MIXED
Analysts also expect product stocks to decline. Analysts uniformly expected gasoline inventories to
drop amid strong demand, with the survey average showing a 1.6 million-barrel draw.Implied
gasoline demand was 9.68 million b/d over a four-week moving average for the period ending 7
September, according to EIA, up slightly from 9.65 million b/d the week prior.
But analysts surveyed were mixed on the direction of distillate stocks last week. On average the
Platts survey showed stocks to be 282,000 barrels lower last week, even as a sizable minority of
analysts expected an increase. EIA data showed that distillate stocks gained sharply during the
week ended 7 September, increasing by 6.2 million barrels to 139.28 million barrels.
Brent Bulls Split From U.S. Oil Optimists
Bloomberg Jessica Summers
For oil investors, this is both the best of times and the worst of times, depending on which crude
benchmark you trade.
While money managers pile up on bets that Brent futures will rise as supplies from Iran shrink, even
Hurricane Florence wasn’t enough to get investors excited in the U.S. Bullish wagers on West Texas
Intermediate fell for the eighth time in 10 weeks, and its discount to Brent is near the biggest gap in
more than three years. The two markets are drifting apart as a pipeline crunch in the Permian Basin
erodes profits for shale explorers.
“You’ve got these Iranian sanctions that are looming. They’re coming sooner than later. Global oil
prices are likely to move higher,” said Rob Thummel, managing director at Tortoise, which manages
$16 billion in energy-related assets. At the same time, “the ability to export oil in general is limited
in the U.S. and it’s going to be for a while.”

While Hurricane Florence had traders initially worried about gasoline shortages, focus quickly
reverted to how difficult it’s become to ship crude from the Permian to the Gulf Coast for refining
and export. That’s forcing producers to sell their crude for less. At the same time, weekly U.S. crude
production remains near a record 11 million barrels a day, and the oil rig count rose by the most in
five weeks as explorers boost drilling in other plays like the Bakken of North Dakota.
Meanwhile, Iranian sanctions are already seen crimping global supply levels, with France and South
Korea reducing imports. HSBC Holdings Plc said a Brent surge above $100 a barrel can’t be ruled
out because scarce spare production capacity worldwide makes the market highly vulnerable to any
further major outage.
“This market was in the process of getting all bulled up again over the concrete signs we’re seeing
that countries are pulling back already from buying Iranian barrels,” said John Kilduff, a partner at
New York-based hedge fund Again Capital LLC.
Hedge funds’ net-long position -- the difference between bets on higher prices and wagers on a
drop -- in Brent rose 5.6 percent to 440,074 contracts, ICE Futures Europe data show for the week
ended Sept. 11. That’s the highest level in two months. Longs rose, while shorts slid to the lowest
since May.
Meanwhile, the net-long position in WTI crude declined 5.1 percent to 346,327 futures and options,
according to the U.S. Commodity Futures Trading Commission. Longs slid 5 percent, while shorts
dipped 3.2 percent.
A pipeline bottleneck in the Permian Basin of West Texas and New Mexico is restricting frack work
and forcing producers to sell their crude at a large discount. Plans to build new lines and expand
existing ones won’t bring any reprieve until at least the second half of next year.
The lingering question is “how much U.S. oil production can ramp up given the struggles of
transportation coming out of the Permian,” said Rob Haworth, who helps oversee $151 billion at
U.S. Bank Wealth Management in Seattle.

U.S. drillers add oil rigs for second week in three
Reuters
U.S. energy companies this week added oil rigs for the second time in the last three weeks even as
new drilling has largely stalled since June due to pipeline constraints in the country’s biggest oilfield.
Drillers added seven oil rigs in the week to Sept. 14, the biggest weekly increase in a month, bringing
the total count to 867, General Electric Co’s Baker Hughes energy services firm said in its closely
followed report on Friday.
The U.S. rig count, an early indicator of future output, is higher than a year ago when 749 rigs were
active as energy companies have been ramping up production in anticipation of higher prices in
2018 than previous years.
But the rig count has held mostly steady around 860 rigs since the start of June as crude prices in
the Permian region in western Texas and eastern New Mexico have collapsed due to a lack of
pipeline infrastructure needed to transport more fuel out of the region.
More than half the total oil rigs are in the Permian basin in west Texas and eastern New Mexico,
the nation’s biggest shale oil field. Active units there declined by one this week to 483, the least
since the start of August.
“The only way to get drillers in the Permian to slow their production growth is a lower oil price. And
that is exactly what they have got,” said Bjarne Schieldrop, chief commodities analyst at SEB, a
Nordic corporate bank.
A shale boom has helped send U.S. production surging above 10 million barrels per day (bpd) this
year for the first time since the 1970s, with the United States surpassing Russia and Saudi Arabia
as the top crude producer, according to the U.S. Energy Information Administration this week.
The EIA, however, said in its monthly forecast that U.S. crude oil production in 2019 was expected
to grow at a slower rate than previously forecast. U.S. crude production is expected to rise by
840,000 bpd to 11.5 million bpd next year, lower than last month’s forecast growth of a 1.02 million-
bpd to 11.7 million.

NewBase Special Coverage
News Agencies News Release September 18-2018
UK and seven major companies join campaign for vehicle
electrification ….. report from iea
The United Kingdom (UK) and seven major companies today joined the EV30@30 campaign, which
aims to speed up the deployment of electric vehicles and target at least 30 percent new electric
vehicle sales by 2030.
The expanded membership will strengthen the collective and coordinated approach to meeting the
EV30@30 objectives. With the UK, the campaign now has the support of most of the largest EV
markets worldwide. The existing
members are Canada, China,
Finland, France, India, Japan,
Mexico, the Netherlands, Norway
and Sweden.
The addition of companies active
on the electric mobility front is also
a milestone for the initiative, which
was started last year by the Clean
Energy Ministerial (CEM). It
represents a major step forward in
the campaign’s multi-stakeholder
approach and reflects the reality of
the electric mobility transition that
is taking place on the ground.
The companies are:
 ChargePoint,
 Enel X,
 E.On,
 Fortum,
 Iberdrola,
 Renault-Nissan-Mitsubishi Alliance, and
 Vattenfall.
The EV30@30 campaign is organized by the
CEM-Electric Vehicles Initiative (EVI),
coordinated by the International Energy
Agency. The campaign was launched during
the 8th Clean Energy Ministerial (CEM8),
held in Beijing in June 2017.
Since then, the EV30@30 campaign has
succeeded in bringing together over thirty

leading cities from twelve countries on the topic of urban electrification via the Pilot City Programme.
This initiative acknowledges that cities are running at the forefront of the electric mobility transition
and intends to demonstrate how local- and national-level cooperation brings about more successful
and sensible policies.
The campaign’s target of 30 percent new electric vehicle sales by 2030 applies collectively to the
CEM-EVI membership, and not to individual countries. Governments who endorse the goal show
leadership by establishing policies to reach the target and engage through EVI to report progress
and share best practices.
The EVI recognizes the importance of reducing carbon emissions in the transportation sector, which
accounts for almost a quarter of global greenhouse gas emissions and is one of the fastest-growing
energy end use sectors. It also recognizes the importance of working towards energy efficiency and
the mitigation of air pollution from transportation.
These environmental, economic and social goals can be addressed through accelerated
electrification of the transportation sector. In 2017, the global electric car stock reached more than
3 million vehicles, after growing exponentially for the last ten years, according to the latest Global
EV Outlook report. In the report's EV30@30 scenario, where all countries together achieve the
EV30@30 target on average, over 220 million electric vehicles (light-duty vehicles, buses and
trucks) are deployed by 2030.
The campaign supports the market for 2-3 wheelers, electric passenger cars, light commercial vans,
buses and trucks (including battery-electric, plug-in hybrid, and fuel cell vehicle types). It also works
towards the deployment of charging infrastructure to supply sufficient power to the vehicles
deployed. Through EV deployment progress monitoring, analytical activities and policy
recommendations, the EVI also aims at providing countries with informed material for the
implementation of the most effective electric mobility policies possible.

The campaign also aims to foster cooperation among many stakeholders on electric mobility to
exchange experiences and deliver quality capacity building to policy makers and other electric
mobility stakeholders in EVI countries and beyond.
The EV30@30 campaign is also supported by C40, the FIA Foundation, the Global Fuel Economy
Initiative (GFEI), the Natural Resource Defence Council (NRDC), the Partnership on Sustainable,
Low Carbon Transport (SLoCaT), The Climate Group, UN Environment, UN Habitat, and the
International Zero Emission Vehicle Alliance (ZEV Alliance). It also received the backing of the
Hewlett Foundation, the Renewable Energy Policy Network for the 21st century (REN21) and the
World Resources Institute (WRI) this year.
The CEM is a unique partnership of 26 members, including most of the G20 economies,
representing 90% of clean energy investment and working together to accelerate the global energy
transition. CEM-EVI participants include Canada, Chile, China, Finland, France, Germany, India,
Japan, Mexico, the Netherlands, New Zealand, Norway, Portugal, Sweden, the United Kingdom
and the United States.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” 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 28 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 September 2018 K. Al Awadi

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