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NewBase Energy News 20 July 2016 - Issue No. 889 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Arabia: S78 Red Sea seismic surveyNEW by Sonardyne acoustics
Source: Sonardyne
Norwegian seabed seismic services company, Magseis, has selected acoustic positioning
equipment from Sonardyne International, to support its upcoming deep water ocean bottom
seismic survey of
the Red Sea.Beginning
this month (July) and
working in partnership
with BGPon behalf
of Saudi Aramco, the
S78 project is expected
to last nine months and
will involve the
deployment of a large
network of ocean bottom
recording nodes, each of
which will be accurately
positioned using
Sonardyne's Ranger 2
USBL (Ultra-Short
BaseLine) and Small Seismic Transponder (SST) technologies. Seismic surveillance surveys
conducted using stationary receivers deployed on the seabed are becoming increasingly
commonplace as geophysicists generally agree that this method delivers the highest possible
definition imagery.
However, any uncertainty in node positions can blur these pictures and make the underlying
reservoirs more difficult to spot. Sonardyne's Ranger 2 USBL installed on a surface vessel,
coupled with SSTs fitted close to each node, overcomes this problem by providing high quality,
repeatable positioning in all water depths.
For this summer's Red Sea survey, Magseis will deploy its proprietary Marine Autonomous
Seismic System (MASS), which uses thousands of small nodes to create a grid pattern of
receivers on the seabed.
Since it is vitally important that the cables are laid in the correct positions to meet the client's
exacting standards, and also to avoid becoming entangled with subsea infrastructure, Magseis will
attach its new SSTs near to the nodes at regular intervals along the cable. As the equipment
descends through the water column to the seabed, each SST will be tracked in real-time using the
Ranger 2 GyroUSBL transceiver permanently installed on the vessel.
Being small, low-cost and depth rated to 2,000 metres, SSTs are perfectly suited to withstand the
demanding operational requirements of large-scale ocean bottom seismic surveys. They can even
be left attached to the cables when they are recovered and reeled on to a drum, helping to
minimise back deck manual handling operations.
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GCC: Annual façades spending to hit $12bn by 2024(Saudi 41.8%)
Saudi Gazette + Construction Week + NewBase
Annual spending on building exteriors in the GCC will increase from the current figure of $8bn to
reach $12bn by 2024, according to a report from US-based Grand View Research.
The study, which was commissioned by dmg events, identified Saudi Arabia as the region’s
largest building exteriors market. The kingdom accounted for 41.8% of the GCC’s overall façades
market in 2015, with annual spending expected to rise to $5.5bn by 2024.
Growth in the buildings exteriors market will put
pressure on GCC countries to focus on new low-
energy architecture, according to the report’s
authors.
Muhammed Kazi, exhibition director of dmg
events’ Windows, Doors & Façades, commented:
“The key factor expected to drive the façades
industry is the need to lower heating and air-
conditioning costs, and achieve greater energy
efficiency.
“Façades give buildings a superior look, which is
a bigpriority for corporate headquarters. But
these impressive glass-fronted buildings
consume the highest energy, and regulating their temperature is a big task.” The study stated that
growth in the GCC’s façades market will stem from a significant rise in the number of construction,
refurbishment, and renovation projects driven by tourism and major events, such as the 2019
World Athletics Championship in Doha, Expo 2020 in Dubai, and the 2022 FIFA World Cup in
Qatar.
The pressure on Saudi Arabia and the rest of the GCC countries to focus on new low-
energy architecture will increase over the next eight years as billions of dollars are
ploughed into infrastructure development across the region, new research shows.
According to a regional market study issued Tuesday, spending on building exteriors
will increase from $8 billion this year to $12 billion in 2024. Accounting for 41.8% of
the overall façades market last year, Saudi Arabia alone is estimated to grow to $5.5
billion by 2024, up from $3 billion this year.
Architects and developers need to prioritize lower heating and air conditioning costs to
achieve energy efficiency, says the report which was commissioned by dmg events Middle
East, Asia and Africa, organizers of the Windows, Doors and Façades trade exhibition
launching in Dubai in September.
The study said significant growth in the GCC façades market will stem from a big rise in the
number of construction, refurbishment and renovation projects driven by tourism and major
events like the 2019 World Athletics Championships in Doha, Expo 2020 Dubai and the 2022
FIFA World Cup.
Issued by US-based market research and consulting specialists Grand View Research, it
points to a major opportunity for architects, developers, and manufacturers who will
assemble in force at Dubai World Trade Centre for the inaugural Windows, Doors & Façades
event on Sept. 18-20.
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 3
UK:North Sea Field Shutdowns to Climb as Brexit Deepens Oil Gloom
Bloomberg - Rakteem Katakey
The pace of North Sea oil-field shutdowns is picking up as the impact of the market slump is
compounded by the uncertain investment environment created by Brexit.
Projected spending on decommissioning in the British sector in the decade to 2024 has risen to
16.9 billion pounds ($22.2 billion), according to Oil & Gas U.K., an industry group. That’s 16
percent higher than a 10-year forecast in 2014 as more sites are targeted for closing, it said.
The rout in crude to less than $50 a barrel has left about 30 percent of fields in the U.K. North
Sea, one of the world’s highest-cost regions, operating at a loss, according to consulting firm
Wood Mackenzie Ltd. The collapse was pushing more producers to hasten plugging wells on the
sea floor even before the U.K. decision to leave the European Union.
“This has increased the number of fields we expect to cease in the near term, which has
increased decommissioning costs,” said Fiona Legate, an analyst with Wood Mackenzie in
Edinburgh. “There is a lot of political uncertainty in the U.K. following Brexit and this adds another
complexity in investment decisions.”
About a third of operating platforms in the U.K. are more than 30 years old, which is beyond their
original design life, Legate said. While $100 oil justified technological upgrades to keep them
running, that’s changing. Oil production in the region averaged 965,000 barrels a day last year,
down from a peak of 2.9 million in 1999, according to BP Plc data.
Wood Mackenzie expects spending on decommissioning, including removing steel structures
offshore, to top 23 billion pounds in the decade to 2025. Budgets will triple to 2.8 billion pounds in
2018 from 899 million this year, it said. The estimate is so much higher than that of Oil & Gas U.K.
because the costs are uncertain at this point, given how little decommissioning has taken place,
the firm said.
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Royal Dutch Shell Plc, one of the biggest North Sea operators, is shutting down the Brent field,
which since the 1970s has produced crude that helps set the global benchmark. Decommissioning
has been going on for a decade and is likely to continue for another 10 years, according to
Duncan Manning, who heads the program for the Anglo-Dutch company.
Field Shutdowns
Crude from that field and some others in the North Sea together form the Dated Brent benchmark.
Brent traded at $46.99 a barrel as of 3:27 p.m. on Tuesday in London, 69 percent higher than the
12-year low in January but less than half the level of two years ago.
Shell is now producing from just one of the four Brent platforms. Even after a full shutdown
removes about 100,000 tons of metal, it would still potentially leave concrete columns half the size
of the Eiffel Tower jutting from the water.
Fairfield Energy Ltd. said last year it was starting to shut down its Dunlin field, given the asset’s
life cycle, depressed oil prices and challenging conditions in the North Sea. Maersk Oil said 11
months ago it was seeking approval from the U.K. Oil & Gas Authority to stop production from its
Janice installation.
While oil prices have rebounded, the U.K.’s June 23 vote to leave the EU has further clouded the
investment climate as the potential for a second independence vote looms in Scotland, which
holds the bulk of Britain’s oil fields. A poll on Scottish independence from the U.K. was defeated in
2014, but after voters there overwhelmingly backed the losing side in the referendum on EU
membership, a new vote is “very much on the table,” Scotland’s First Minister Nicola Sturgeon
said on June 26.
Investment Uncertainty
“Uncertainty may impact investment levels and lower investment can in turn potentially bring
decommissioning forward for some fields,” said Kimberley Wood, a partner at law firm Norton
Rose Fulbright LLP in London.
The North Sea has been battered by the slump in prices because of its high costs and dwindling
resources. Oil and gas producers in the region will spend 40 percent less this year than in 2014
and by the end of the year an estimated 120,000 jobs will have been lost because of the
downturn, Oil & Gas U.K.
said in a report last month.
Brexit will further
undermine confidence in
an industry propped up by
government tax cuts in
recent years. “There may
be a pause while
companies assess the
uncertainties around
commodity prices, foreign
exchange rates, potential
tariffs and politics,” Wood
Mackenzie’s Legate said.
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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
publication. However, no warranty is given to the accuracy of its content. Page 5
Nigeria and Gabon: Panoro Energy operations updates
Source: Panoro Energy
Panoro Energy has provided an update on operations at theAje field, offshore Nigeria, and at
the Dussafu Block, offshore Gabon
Aje Field, Offshore Nigeria
Panoro Energy has announced that the commissioning of the Front Puffin FPSOhas now been
completed, and the Front Puffin FPSO is on hire following the 72 hour test. Targeted stabilised
production rates have not yet been achieved, due to mechanical issues and Nigerian regulatory
approvals.
Until the outstanding issues are resolved, which could take until the end of Q4 2016, production
shall be maintained at a restricted daily rate of approx. 7,000-8,000 barrels of oil. We expect the
first crude oil lifting from the Front Puffin FPSO to take place at the end of August.
In the meantime we continue to be encouraged by the performance of the reservoir to date.
Material reductions in operating costs have also been achieved at Aje, and continuing efforts are
being made to secure further savings.
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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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Laboratory assays have been delivered on Aje crude oil which show it to be as expected a high
quality grade of approximately 42 degree API. Several international oil companies and trading
houses have expressed interest in purchasing Aje crude.
Work continues for planning of Aje Phase 2 (additional Cenomanian oil wells) and Phase 3
(Turonian gas and condensate), and in evaluating the wider exploration potential on OML 113.
Dussafu, Gabon
Panoro has noted Harvest Natural Resources’ recent press release of the proposed sale of its
Venezuela assets. With the renewed focus on Dussafu this announcement brings, Panoros’ JV
with Harvest Natural Resources is accelerating the evaluation of appraisal and development
options for the block. Panoro continues to have ongoing discussions with potential farm-in
partners and is examining other initiatives such as refined development plans.
John Hamilton, CEO of Panoro said:
'We are very pleased with the reservoir performance at Aje and are planning the next steps to
realise its full potential.
At Dussafu, recent developments have reinforced our view of its significant potential, where
prospects A and B have a combined P50 of 482 million barrels of gross unrisked prospective
resources. Both of these prospects are within the Exclusive Exploitation Authorisation area. We
are expecting to agree on a forward plan for the exciting Dussafu project in the coming months'.
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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
publication. However, no warranty is given to the accuracy of its content. Page 7
NewBase 20 July 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Crude oil futures rise after US stockpiles fall
Reuters + NewBase
Oil futures rose in early Asian trading on Wednesday after an industry group released weekly
figures showing U.S. stockpiles fell more than expected last week.
Brent crude was up 13 cents at $46.79 a barrel at 0017 GMT. On Tuesday, the contract settled
down 30 cents, or 0.6 percent, at $46.66 barrel.
U.S. West Texas Intermediate (WTI) crude rose 7 cents to $44.72 a barrel. It fell 59 cents, or 1.3
percent, to settle at $44.65 in the previous session.
U.S. crude stockpiles fell by 2.3 million barrels last week, trade group American Petroleum
Institute (API) reported. That was just above a 2.1 million-barrels draw forecast in a Reuters poll.
For distillate inventories including diesel, API reported a surprise draw of 484,000 barrels. It also
said there was an unexpected gasoline build of 805,000 barrels.
The U.S. government's Energy Information Administration (EIA) will issue inventory data later on
Wednesday.
If the EIA confirms a drawdown, it will be the ninth straight week that U.S. crude stockpiles have
fallen.
Oil price special
coverage
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Oil prices won't suffer a 2015-style price collapse, says Citi's Morse
CNBC -Tom DiChristopher | @tdichristopher
Oil prices are following a familiar — and potentially troubling — trend that took hold last year, but
investors shouldn't fear a 2015-style, second-half price collapse, Citigroup's global head of
commodities research said Tuesday.
Commodities were the top performing asset class in
the first half of 2016, roughly tracing last year's rally
through June. And just like last year, crude oil
futures are plateauing at the half point.
That pause was followed by a plunge to 12-year
lows last winter, but Citi's Ed Morse told CNBC's
"Squawk Box" things will be different this year.
"Just the supply-demand balances across
commodities is significantly tighter," he said. "We
are drawing inventories maybe a bit slower than people had thought, but there's not a lot of new
incremental supply to come into the market."
Iraq significantly ramped up production last year — it accounted for 75 percent of total output
growth among OPEC countries last year — and Iran has increased its output by about 800,000
barrels per day, Morse noted. Consequently, he said, production cannot grow much at this point.
Meanwhile, production is dropping off in other parts of the world following massive cuts to capital
spending. Oil and gas producers haveslashed more than $1 trillion in capital spending and
exploration investment planned for the period between 2015 and 2020, according to analytics firm
Wood Mackenzie.
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Much of those cuts have come from the United States, where low oil prices have forced drillers to
cut back on high-cost shale production. U.S. output fell to 8.9 million barrels per day in April from a
45-year high of nearly 9.7 million bpd during the same month last year.
"Production is going down. It's falling rapidly in the U.S., China, Colombia, Mexico, Brazil, and
that's what brings markets to balance," Morse said.
To be sure, some industry analysts believe that a glut of refined fuel supplies could temporarily
drag oil prices lower as refineries take in less crude until gasoline and distillate inventories draw
down.
The market, however, could yet be surprised by a return of Libyan oil output following the
emergence of a unified government in the long divided nation, he said. A resumption of production
from the Partitioned Neutral Zone jointly operated by Saudi Arabia and Kuwait could also provide
a bearish surprise, he said.
Resumption of the 500,000 bpd of capacity at two oilfields there could take a year, Platts reported
in May, quoting the head of research at Kuwait Petroleum Company. Industry insiders told
Reuters production was halted over operating rights disagreements.
Morse acknowledged that U.S. dollar strength has dragged strongly on commodities following
Britain's vote to leave the European Union. But he said the inflection point would probably be
temporary.
Crude oil and many other commodities are denominated in the dollar, so a stronger greenback
discourages buyers from stocking up.
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NewBase Special Coverage
News Agencies News Release 19 July 2016
SolarCity gigafactory brightens New York's manufacturing revival
Bob Woods, special to CNBC.com
Buffalo, New York, is on the verge of becoming famous for more than wicked winters, spicy
chicken wings and its Rust Belt legacy. The Queen City is the crown jewel in Gov. Andrew
Cuomo's multibillion-dollar business-development strategy to revitalize economically depressed
Upstate New York by turning it into a 21st-century manufacturing powerhouse.
His Buffalo Billion (as in dollars invested) project — although the subject of federal and state bid-
rigging probes — is highlighted by a 1.2-million-square-foot "gigafactory" that will be run by Elon
Musk'sSolarCity and fabricate up to 10,000 solar panels per day. In late May, New York's Public
Authorities Control Board unanimously approved a $485.5 million grant, part of the total $750
million the state will spend to construct and equip the humongous facility.
New York will retain ownership and lease it to SolarCity in a deal negotiated by Albany-based
SUNY Polytechnic Institute, the state university known as SUNY Poly.
On June 21, Musk made headlines, and raised investors' eyebrows, by announcing plans for his
Tesla electric-car company to acquire SolarCity. The all-stock deal could value debt-ridden
SolarCity — whose shares have dropped 63 percent over the last 12 months, partly due to
changes in regulations on the solar-energy industry — at as much as $2.8 billion. Tesla is valued
at nearly $33 billion.
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"We would be the world's only vertically integrated energy company offering end-to-end clean
energy products to our customers," Tesla said of the deal on its company blog. "This would start
with the car that you drive and the energy that you use to charge it, and would extend to how
everything else in your home or business is powered." Coincidentally, Tesla is constructing a
battery-production gigafactory in Reno, Nevada.
While the acquisition awaits approval from the companies' respective boards and shareholders,
SolarCity co-founder and CEO Lyndon Rive — who will recuse himself from the decision-making
process — told CNBC.com, "We don't expect the offer to impact our plans in Buffalo." The
company has said it will spend $5 billion on capital, operations and supply-chain support over the
next decade at the facility.
SolarCity officials recently reported that the gigafactory is nearly 90 percent complete and that it
hopes to start installing equipment this summer. "Manufacturing is scheduled to begin in 2017,"
Rive said. "SolarCity has committed to employ at least 1,460 people in the city of Buffalo, with 500
jobs at the manufacturing facility. We will employ a total of 5,000 people in New York state by the
10th anniversary of the completion of the facility."
Revitalizing the Rust Belt
New York state boasts a long and illustrious history as a manufacturing empire. As did other Rust
Belt states, however, it suffered a devastating decline beginning in the 1970s, when
manufacturers moved to the U.S. South, Mexico and other foreign countries to take advantage of
cheaper labor, lower taxes and fewer regulations. Globalization and the Great Recession forced
further factory closings. Manufacturing jobs statewide, numbering more than 2 million in the mid-
1940s, plummeted to less than 500,000 in 2009, according to the state's Manufacturing Research
Institute.
Despite current political rhetoric to the contrary, the majority of those factories and jobs aren't
coming back. In 2000, New York's Department of Labor identified 23,814 manufacturing
establishments, employing 745,585 workers. By the third quarter of 2015, preliminary reports
counted 17,103 manufacturers and 454,636 employees.
Nonetheless, over the past decade or so, New York has made strategic — and gigantic —
investments and implemented enticing economic development programs, including tax subsidies,
grants, loans and other attractive lures. Indeed, New York beat out other states vying for the
SolarCity gigafactory. Rive declined to comment on the particulars, stating only that "the scope of
New York's offer was instrumental in making our decision."
The technology behind the next-generation solar panels SolarCity will produce in Buffalo —
developed by Silevo, a start-up it acquired in 2014 — incorporates advances in nanoscience, a
burgeoning field that New York has zeroed in on as a source for its manufacturing revival.
Its economic development unit, Empire State Development, has established a long-term,
multibillion-dollar game plan to attract nanotechnology manufacturers to make not only solar
panels but also semiconductors, pharmaceuticals and other products from very small materials
(there are 25,400,000 nanometers in an inch). Buffalo Billion is one of three initiatives under way
upstate — the others are in Albany and Utica — all being managed by SUNY Poly.
A nanoscience hub
Former Gov. Mario Cuomo first championed nanoscience, and in 1997 the Albany NanoTech
Complex opened "as a combined vision of government, academia and industry," said Jerry
Gretzinger, a spokesman for SUNY Poly.
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,
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"The site has grown from one building to a fully integrated research, development, prototyping and
educational complex spanning 1.3 million square feet and boasting more than $20 billion in high-
tech investments and over 300 corporate partners on site," including IBM, Intel, GlobalFoundries,
Samsung, TSMC, Toshiba, Applied Materials, Tokyo Electron, ASML and Lam Research. More
than 4,000 scientists, researchers, engineers, students, faculty and staff currently work at the
complex.
To replicate that success, in 2013 the state launched Nano Utica, a public-private partnership in
which six initial private manufacturers — Advanced Nanotechnology Solutions, Sematech,
Atotech, IBM, Lam Research and Tokyo Electron — have invested $1.5 billion. The state put up
$200 million to purchase equipment over 10 years. "The initiative is projected to create at least
4,000 jobs over the next decade," Gretzinger reported.
"We created what amounts to a cooperative, where we invest millions in equipment and bring in
expertise and cutting-edge technologies to help companies innovate."-Howard Zemsky, CEO,
Empire State Development
The first phase of Nano Utica is the Computer Chip Commercialization Center, or Quad-C, a
253,000-square-foot $125 million facility currently being outfitted with tools and other equipment
for corporate partners, including GE. Last April groundbreaking commenced on SUNY Poly's
360,000-square-foot computer-chip fab at the nearby Marcy Nanocenter, which will be home to
Austria-based ams AG's advanced sensor manufacturing and more than $2 billion in initial private
investment.
"Ams has committed to create more than 1,000 new jobs there," said Howard Zemsky, president
and CEO of Empire State Development and formerly co-chair of the Western New York Regional
Economic Development Council in Buffalo.
Last year ESD was among the state's agencies that launched Buffalo Billion to promote advanced
manufacturing, health and life sciences and tourism in western New York, creating an estimated
12,000 new jobs. Besides SolarCity, another cornerstone is Buffalo Manufacturing Works, which is
operated by EWI, a nonprofit engineering services R&D company based in Columbus, Ohio.
The center is located in a building purchased by the Buffalo Niagara Medical Campus with an $8
million Buffalo Billion grant from ESD, which also provided $800,000 in start-up funding support for
EWI.
"We created what amounts to a cooperative, where we invest millions in equipment and bring in
expertise and cutting-edge technologies to help companies innovate without having to lay out a
ton of money and then have redundant investments in the community," Zemsky explained.
Another growth industry
At the same time New York is nurturing nanotechnology upstate, it's also cultivating a thriving
yogurt industry. It began in 2007, when Chobani opened a factory in South Edmeston, south of
Utica, to produce Greek yogurt, a variety made thicker by straining it to remove whey.
Chobani founder Hamdi Ulukaya took out a $1 million federal Small Business Administration loan
in 2005 to purchase a shuttered Kraft facility and has since invested about $100 million to retrofit
and expand the factory, which now employs around 1,000 people.
The U.S. market for that then-unfamiliar style was 1 percent of total yogurt sales, according to
research firm Technavio. By 2010 that share exploded to 10 percent. Today Greek yogurt sales,
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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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at nearly $3.8 billion, constitute more than 48 percent of the total $7.7 billion yogurt market,
according to Nielsen.
Recognizing the consumer craving for Greek yogurt, as well as its plethora of dairy farms upstate,
New York has made a concerted effort to broaden the industry.
Several major competitors to Chobani have expanded or opened Greek yogurt plants in Upstate
New York, including Fage in Johnstown, Alpina Foods in Batavia, Upstate Farms in Buffalo and
Byrne Dairy in Cortlandville. In total "we have 31 yogurt manufacturers in New York state," said a
spokeswoman for its agriculture and markets division.
That doesn't include the ancillary businesses that supply goods and services to the industry, such
as Agrana Fruit, which opened a $50 million plant in Lysander in 2014 and sources crops from
local fruit farmers.
"New York is very progressive in offering incentives to locate here," said Marty Broccoli, a
specialist at Cornell University's Agriculture Economic Development department. He cited the
state's grant program, tax benefits through Start-Up NY and Recharge NY, which offers low-cost
electricity in exchange for job retention and creation.
Meanwhile, federal investigators — led by Preet Bharara, the U.S. attorney for the Southern
District of New York — are examining how money and contracts were distributed to Buffalo Billion,
including SolarCity. Cuomo's office has opened its own investigation into what it has called
suspicions of "improper lobbying and undisclosed conflicts of interest" that may have defrauded
the state.
Still, Cuomo has deemed Buffalo Billion "a tremendous success" and suggested that the probe did
not "go to the essence" of the program. EDS chief Zemsky echoed that sentiment, declaring that
the Buffalo Billion's efforts will continue unabated.
"What they're investigating, they will investigate, and whatever the findings are, they are," Zemsky
said. "The conduct of a couple of people one way or the other is certainly not, and shouldn't, derail
the extraordinary commitments that have been made by the state and the people of these
communities. I'm extremely bullish on our strategies and the future of New York as a great place
to do business."
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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 20 July 2016 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 15

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New base energy news issue 889 dated 20 july 2016

  • 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 20 July 2016 - Issue No. 889 Edited & Produced by: Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Saudi Arabia: S78 Red Sea seismic surveyNEW by Sonardyne acoustics Source: Sonardyne Norwegian seabed seismic services company, Magseis, has selected acoustic positioning equipment from Sonardyne International, to support its upcoming deep water ocean bottom seismic survey of the Red Sea.Beginning this month (July) and working in partnership with BGPon behalf of Saudi Aramco, the S78 project is expected to last nine months and will involve the deployment of a large network of ocean bottom recording nodes, each of which will be accurately positioned using Sonardyne's Ranger 2 USBL (Ultra-Short BaseLine) and Small Seismic Transponder (SST) technologies. Seismic surveillance surveys conducted using stationary receivers deployed on the seabed are becoming increasingly commonplace as geophysicists generally agree that this method delivers the highest possible definition imagery. However, any uncertainty in node positions can blur these pictures and make the underlying reservoirs more difficult to spot. Sonardyne's Ranger 2 USBL installed on a surface vessel, coupled with SSTs fitted close to each node, overcomes this problem by providing high quality, repeatable positioning in all water depths. For this summer's Red Sea survey, Magseis will deploy its proprietary Marine Autonomous Seismic System (MASS), which uses thousands of small nodes to create a grid pattern of receivers on the seabed. Since it is vitally important that the cables are laid in the correct positions to meet the client's exacting standards, and also to avoid becoming entangled with subsea infrastructure, Magseis will attach its new SSTs near to the nodes at regular intervals along the cable. As the equipment descends through the water column to the seabed, each SST will be tracked in real-time using the Ranger 2 GyroUSBL transceiver permanently installed on the vessel. Being small, low-cost and depth rated to 2,000 metres, SSTs are perfectly suited to withstand the demanding operational requirements of large-scale ocean bottom seismic surveys. They can even be left attached to the cables when they are recovered and reeled on to a drum, helping to minimise back deck manual handling operations.
  • 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 GCC: Annual façades spending to hit $12bn by 2024(Saudi 41.8%) Saudi Gazette + Construction Week + NewBase Annual spending on building exteriors in the GCC will increase from the current figure of $8bn to reach $12bn by 2024, according to a report from US-based Grand View Research. The study, which was commissioned by dmg events, identified Saudi Arabia as the region’s largest building exteriors market. The kingdom accounted for 41.8% of the GCC’s overall façades market in 2015, with annual spending expected to rise to $5.5bn by 2024. Growth in the buildings exteriors market will put pressure on GCC countries to focus on new low- energy architecture, according to the report’s authors. Muhammed Kazi, exhibition director of dmg events’ Windows, Doors & Façades, commented: “The key factor expected to drive the façades industry is the need to lower heating and air- conditioning costs, and achieve greater energy efficiency. “Façades give buildings a superior look, which is a bigpriority for corporate headquarters. But these impressive glass-fronted buildings consume the highest energy, and regulating their temperature is a big task.” The study stated that growth in the GCC’s façades market will stem from a significant rise in the number of construction, refurbishment, and renovation projects driven by tourism and major events, such as the 2019 World Athletics Championship in Doha, Expo 2020 in Dubai, and the 2022 FIFA World Cup in Qatar. The pressure on Saudi Arabia and the rest of the GCC countries to focus on new low- energy architecture will increase over the next eight years as billions of dollars are ploughed into infrastructure development across the region, new research shows. According to a regional market study issued Tuesday, spending on building exteriors will increase from $8 billion this year to $12 billion in 2024. Accounting for 41.8% of the overall façades market last year, Saudi Arabia alone is estimated to grow to $5.5 billion by 2024, up from $3 billion this year. Architects and developers need to prioritize lower heating and air conditioning costs to achieve energy efficiency, says the report which was commissioned by dmg events Middle East, Asia and Africa, organizers of the Windows, Doors and Façades trade exhibition launching in Dubai in September. The study said significant growth in the GCC façades market will stem from a big rise in the number of construction, refurbishment and renovation projects driven by tourism and major events like the 2019 World Athletics Championships in Doha, Expo 2020 Dubai and the 2022 FIFA World Cup. Issued by US-based market research and consulting specialists Grand View Research, it points to a major opportunity for architects, developers, and manufacturers who will assemble in force at Dubai World Trade Centre for the inaugural Windows, Doors & Façades event on Sept. 18-20.
  • 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 UK:North Sea Field Shutdowns to Climb as Brexit Deepens Oil Gloom Bloomberg - Rakteem Katakey The pace of North Sea oil-field shutdowns is picking up as the impact of the market slump is compounded by the uncertain investment environment created by Brexit. Projected spending on decommissioning in the British sector in the decade to 2024 has risen to 16.9 billion pounds ($22.2 billion), according to Oil & Gas U.K., an industry group. That’s 16 percent higher than a 10-year forecast in 2014 as more sites are targeted for closing, it said. The rout in crude to less than $50 a barrel has left about 30 percent of fields in the U.K. North Sea, one of the world’s highest-cost regions, operating at a loss, according to consulting firm Wood Mackenzie Ltd. The collapse was pushing more producers to hasten plugging wells on the sea floor even before the U.K. decision to leave the European Union. “This has increased the number of fields we expect to cease in the near term, which has increased decommissioning costs,” said Fiona Legate, an analyst with Wood Mackenzie in Edinburgh. “There is a lot of political uncertainty in the U.K. following Brexit and this adds another complexity in investment decisions.” About a third of operating platforms in the U.K. are more than 30 years old, which is beyond their original design life, Legate said. While $100 oil justified technological upgrades to keep them running, that’s changing. Oil production in the region averaged 965,000 barrels a day last year, down from a peak of 2.9 million in 1999, according to BP Plc data. Wood Mackenzie expects spending on decommissioning, including removing steel structures offshore, to top 23 billion pounds in the decade to 2025. Budgets will triple to 2.8 billion pounds in 2018 from 899 million this year, it said. The estimate is so much higher than that of Oil & Gas U.K. because the costs are uncertain at this point, given how little decommissioning has taken place, the firm said.
  • 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 Royal Dutch Shell Plc, one of the biggest North Sea operators, is shutting down the Brent field, which since the 1970s has produced crude that helps set the global benchmark. Decommissioning has been going on for a decade and is likely to continue for another 10 years, according to Duncan Manning, who heads the program for the Anglo-Dutch company. Field Shutdowns Crude from that field and some others in the North Sea together form the Dated Brent benchmark. Brent traded at $46.99 a barrel as of 3:27 p.m. on Tuesday in London, 69 percent higher than the 12-year low in January but less than half the level of two years ago. Shell is now producing from just one of the four Brent platforms. Even after a full shutdown removes about 100,000 tons of metal, it would still potentially leave concrete columns half the size of the Eiffel Tower jutting from the water. Fairfield Energy Ltd. said last year it was starting to shut down its Dunlin field, given the asset’s life cycle, depressed oil prices and challenging conditions in the North Sea. Maersk Oil said 11 months ago it was seeking approval from the U.K. Oil & Gas Authority to stop production from its Janice installation. While oil prices have rebounded, the U.K.’s June 23 vote to leave the EU has further clouded the investment climate as the potential for a second independence vote looms in Scotland, which holds the bulk of Britain’s oil fields. A poll on Scottish independence from the U.K. was defeated in 2014, but after voters there overwhelmingly backed the losing side in the referendum on EU membership, a new vote is “very much on the table,” Scotland’s First Minister Nicola Sturgeon said on June 26. Investment Uncertainty “Uncertainty may impact investment levels and lower investment can in turn potentially bring decommissioning forward for some fields,” said Kimberley Wood, a partner at law firm Norton Rose Fulbright LLP in London. The North Sea has been battered by the slump in prices because of its high costs and dwindling resources. Oil and gas producers in the region will spend 40 percent less this year than in 2014 and by the end of the year an estimated 120,000 jobs will have been lost because of the downturn, Oil & Gas U.K. said in a report last month. Brexit will further undermine confidence in an industry propped up by government tax cuts in recent years. “There may be a pause while companies assess the uncertainties around commodity prices, foreign exchange rates, potential tariffs and politics,” Wood Mackenzie’s Legate said.
  • 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 Nigeria and Gabon: Panoro Energy operations updates Source: Panoro Energy Panoro Energy has provided an update on operations at theAje field, offshore Nigeria, and at the Dussafu Block, offshore Gabon Aje Field, Offshore Nigeria Panoro Energy has announced that the commissioning of the Front Puffin FPSOhas now been completed, and the Front Puffin FPSO is on hire following the 72 hour test. Targeted stabilised production rates have not yet been achieved, due to mechanical issues and Nigerian regulatory approvals. Until the outstanding issues are resolved, which could take until the end of Q4 2016, production shall be maintained at a restricted daily rate of approx. 7,000-8,000 barrels of oil. We expect the first crude oil lifting from the Front Puffin FPSO to take place at the end of August. In the meantime we continue to be encouraged by the performance of the reservoir to date. Material reductions in operating costs have also been achieved at Aje, and continuing efforts are being made to secure further savings.
  • 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 Laboratory assays have been delivered on Aje crude oil which show it to be as expected a high quality grade of approximately 42 degree API. Several international oil companies and trading houses have expressed interest in purchasing Aje crude. Work continues for planning of Aje Phase 2 (additional Cenomanian oil wells) and Phase 3 (Turonian gas and condensate), and in evaluating the wider exploration potential on OML 113. Dussafu, Gabon Panoro has noted Harvest Natural Resources’ recent press release of the proposed sale of its Venezuela assets. With the renewed focus on Dussafu this announcement brings, Panoros’ JV with Harvest Natural Resources is accelerating the evaluation of appraisal and development options for the block. Panoro continues to have ongoing discussions with potential farm-in partners and is examining other initiatives such as refined development plans. John Hamilton, CEO of Panoro said: 'We are very pleased with the reservoir performance at Aje and are planning the next steps to realise its full potential. At Dussafu, recent developments have reinforced our view of its significant potential, where prospects A and B have a combined P50 of 482 million barrels of gross unrisked prospective resources. Both of these prospects are within the Exclusive Exploitation Authorisation area. We are expecting to agree on a forward plan for the exciting Dussafu project in the coming months'.
  • 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 NewBase 20 July 2016 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Crude oil futures rise after US stockpiles fall Reuters + NewBase Oil futures rose in early Asian trading on Wednesday after an industry group released weekly figures showing U.S. stockpiles fell more than expected last week. Brent crude was up 13 cents at $46.79 a barrel at 0017 GMT. On Tuesday, the contract settled down 30 cents, or 0.6 percent, at $46.66 barrel. U.S. West Texas Intermediate (WTI) crude rose 7 cents to $44.72 a barrel. It fell 59 cents, or 1.3 percent, to settle at $44.65 in the previous session. U.S. crude stockpiles fell by 2.3 million barrels last week, trade group American Petroleum Institute (API) reported. That was just above a 2.1 million-barrels draw forecast in a Reuters poll. For distillate inventories including diesel, API reported a surprise draw of 484,000 barrels. It also said there was an unexpected gasoline build of 805,000 barrels. The U.S. government's Energy Information Administration (EIA) will issue inventory data later on Wednesday. If the EIA confirms a drawdown, it will be the ninth straight week that U.S. crude stockpiles have fallen. Oil price special coverage
  • 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 Oil prices won't suffer a 2015-style price collapse, says Citi's Morse CNBC -Tom DiChristopher | @tdichristopher Oil prices are following a familiar — and potentially troubling — trend that took hold last year, but investors shouldn't fear a 2015-style, second-half price collapse, Citigroup's global head of commodities research said Tuesday. Commodities were the top performing asset class in the first half of 2016, roughly tracing last year's rally through June. And just like last year, crude oil futures are plateauing at the half point. That pause was followed by a plunge to 12-year lows last winter, but Citi's Ed Morse told CNBC's "Squawk Box" things will be different this year. "Just the supply-demand balances across commodities is significantly tighter," he said. "We are drawing inventories maybe a bit slower than people had thought, but there's not a lot of new incremental supply to come into the market." Iraq significantly ramped up production last year — it accounted for 75 percent of total output growth among OPEC countries last year — and Iran has increased its output by about 800,000 barrels per day, Morse noted. Consequently, he said, production cannot grow much at this point. Meanwhile, production is dropping off in other parts of the world following massive cuts to capital spending. Oil and gas producers haveslashed more than $1 trillion in capital spending and exploration investment planned for the period between 2015 and 2020, according to analytics firm Wood Mackenzie.
  • 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 Much of those cuts have come from the United States, where low oil prices have forced drillers to cut back on high-cost shale production. U.S. output fell to 8.9 million barrels per day in April from a 45-year high of nearly 9.7 million bpd during the same month last year. "Production is going down. It's falling rapidly in the U.S., China, Colombia, Mexico, Brazil, and that's what brings markets to balance," Morse said. To be sure, some industry analysts believe that a glut of refined fuel supplies could temporarily drag oil prices lower as refineries take in less crude until gasoline and distillate inventories draw down. The market, however, could yet be surprised by a return of Libyan oil output following the emergence of a unified government in the long divided nation, he said. A resumption of production from the Partitioned Neutral Zone jointly operated by Saudi Arabia and Kuwait could also provide a bearish surprise, he said. Resumption of the 500,000 bpd of capacity at two oilfields there could take a year, Platts reported in May, quoting the head of research at Kuwait Petroleum Company. Industry insiders told Reuters production was halted over operating rights disagreements. Morse acknowledged that U.S. dollar strength has dragged strongly on commodities following Britain's vote to leave the European Union. But he said the inflection point would probably be temporary. Crude oil and many other commodities are denominated in the dollar, so a stronger greenback discourages buyers from stocking up.
  • 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 NewBase Special Coverage News Agencies News Release 19 July 2016 SolarCity gigafactory brightens New York's manufacturing revival Bob Woods, special to CNBC.com Buffalo, New York, is on the verge of becoming famous for more than wicked winters, spicy chicken wings and its Rust Belt legacy. The Queen City is the crown jewel in Gov. Andrew Cuomo's multibillion-dollar business-development strategy to revitalize economically depressed Upstate New York by turning it into a 21st-century manufacturing powerhouse. His Buffalo Billion (as in dollars invested) project — although the subject of federal and state bid- rigging probes — is highlighted by a 1.2-million-square-foot "gigafactory" that will be run by Elon Musk'sSolarCity and fabricate up to 10,000 solar panels per day. In late May, New York's Public Authorities Control Board unanimously approved a $485.5 million grant, part of the total $750 million the state will spend to construct and equip the humongous facility. New York will retain ownership and lease it to SolarCity in a deal negotiated by Albany-based SUNY Polytechnic Institute, the state university known as SUNY Poly. On June 21, Musk made headlines, and raised investors' eyebrows, by announcing plans for his Tesla electric-car company to acquire SolarCity. The all-stock deal could value debt-ridden SolarCity — whose shares have dropped 63 percent over the last 12 months, partly due to changes in regulations on the solar-energy industry — at as much as $2.8 billion. Tesla is valued at nearly $33 billion.
  • 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 "We would be the world's only vertically integrated energy company offering end-to-end clean energy products to our customers," Tesla said of the deal on its company blog. "This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered." Coincidentally, Tesla is constructing a battery-production gigafactory in Reno, Nevada. While the acquisition awaits approval from the companies' respective boards and shareholders, SolarCity co-founder and CEO Lyndon Rive — who will recuse himself from the decision-making process — told CNBC.com, "We don't expect the offer to impact our plans in Buffalo." The company has said it will spend $5 billion on capital, operations and supply-chain support over the next decade at the facility. SolarCity officials recently reported that the gigafactory is nearly 90 percent complete and that it hopes to start installing equipment this summer. "Manufacturing is scheduled to begin in 2017," Rive said. "SolarCity has committed to employ at least 1,460 people in the city of Buffalo, with 500 jobs at the manufacturing facility. We will employ a total of 5,000 people in New York state by the 10th anniversary of the completion of the facility." Revitalizing the Rust Belt New York state boasts a long and illustrious history as a manufacturing empire. As did other Rust Belt states, however, it suffered a devastating decline beginning in the 1970s, when manufacturers moved to the U.S. South, Mexico and other foreign countries to take advantage of cheaper labor, lower taxes and fewer regulations. Globalization and the Great Recession forced further factory closings. Manufacturing jobs statewide, numbering more than 2 million in the mid- 1940s, plummeted to less than 500,000 in 2009, according to the state's Manufacturing Research Institute. Despite current political rhetoric to the contrary, the majority of those factories and jobs aren't coming back. In 2000, New York's Department of Labor identified 23,814 manufacturing establishments, employing 745,585 workers. By the third quarter of 2015, preliminary reports counted 17,103 manufacturers and 454,636 employees. Nonetheless, over the past decade or so, New York has made strategic — and gigantic — investments and implemented enticing economic development programs, including tax subsidies, grants, loans and other attractive lures. Indeed, New York beat out other states vying for the SolarCity gigafactory. Rive declined to comment on the particulars, stating only that "the scope of New York's offer was instrumental in making our decision." The technology behind the next-generation solar panels SolarCity will produce in Buffalo — developed by Silevo, a start-up it acquired in 2014 — incorporates advances in nanoscience, a burgeoning field that New York has zeroed in on as a source for its manufacturing revival. Its economic development unit, Empire State Development, has established a long-term, multibillion-dollar game plan to attract nanotechnology manufacturers to make not only solar panels but also semiconductors, pharmaceuticals and other products from very small materials (there are 25,400,000 nanometers in an inch). Buffalo Billion is one of three initiatives under way upstate — the others are in Albany and Utica — all being managed by SUNY Poly. A nanoscience hub Former Gov. Mario Cuomo first championed nanoscience, and in 1997 the Albany NanoTech Complex opened "as a combined vision of government, academia and industry," said Jerry Gretzinger, a spokesman for SUNY Poly.
  • 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 "The site has grown from one building to a fully integrated research, development, prototyping and educational complex spanning 1.3 million square feet and boasting more than $20 billion in high- tech investments and over 300 corporate partners on site," including IBM, Intel, GlobalFoundries, Samsung, TSMC, Toshiba, Applied Materials, Tokyo Electron, ASML and Lam Research. More than 4,000 scientists, researchers, engineers, students, faculty and staff currently work at the complex. To replicate that success, in 2013 the state launched Nano Utica, a public-private partnership in which six initial private manufacturers — Advanced Nanotechnology Solutions, Sematech, Atotech, IBM, Lam Research and Tokyo Electron — have invested $1.5 billion. The state put up $200 million to purchase equipment over 10 years. "The initiative is projected to create at least 4,000 jobs over the next decade," Gretzinger reported. "We created what amounts to a cooperative, where we invest millions in equipment and bring in expertise and cutting-edge technologies to help companies innovate."-Howard Zemsky, CEO, Empire State Development The first phase of Nano Utica is the Computer Chip Commercialization Center, or Quad-C, a 253,000-square-foot $125 million facility currently being outfitted with tools and other equipment for corporate partners, including GE. Last April groundbreaking commenced on SUNY Poly's 360,000-square-foot computer-chip fab at the nearby Marcy Nanocenter, which will be home to Austria-based ams AG's advanced sensor manufacturing and more than $2 billion in initial private investment. "Ams has committed to create more than 1,000 new jobs there," said Howard Zemsky, president and CEO of Empire State Development and formerly co-chair of the Western New York Regional Economic Development Council in Buffalo. Last year ESD was among the state's agencies that launched Buffalo Billion to promote advanced manufacturing, health and life sciences and tourism in western New York, creating an estimated 12,000 new jobs. Besides SolarCity, another cornerstone is Buffalo Manufacturing Works, which is operated by EWI, a nonprofit engineering services R&D company based in Columbus, Ohio. The center is located in a building purchased by the Buffalo Niagara Medical Campus with an $8 million Buffalo Billion grant from ESD, which also provided $800,000 in start-up funding support for EWI. "We created what amounts to a cooperative, where we invest millions in equipment and bring in expertise and cutting-edge technologies to help companies innovate without having to lay out a ton of money and then have redundant investments in the community," Zemsky explained. Another growth industry At the same time New York is nurturing nanotechnology upstate, it's also cultivating a thriving yogurt industry. It began in 2007, when Chobani opened a factory in South Edmeston, south of Utica, to produce Greek yogurt, a variety made thicker by straining it to remove whey. Chobani founder Hamdi Ulukaya took out a $1 million federal Small Business Administration loan in 2005 to purchase a shuttered Kraft facility and has since invested about $100 million to retrofit and expand the factory, which now employs around 1,000 people. The U.S. market for that then-unfamiliar style was 1 percent of total yogurt sales, according to research firm Technavio. By 2010 that share exploded to 10 percent. Today Greek yogurt sales,
  • 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 at nearly $3.8 billion, constitute more than 48 percent of the total $7.7 billion yogurt market, according to Nielsen. Recognizing the consumer craving for Greek yogurt, as well as its plethora of dairy farms upstate, New York has made a concerted effort to broaden the industry. Several major competitors to Chobani have expanded or opened Greek yogurt plants in Upstate New York, including Fage in Johnstown, Alpina Foods in Batavia, Upstate Farms in Buffalo and Byrne Dairy in Cortlandville. In total "we have 31 yogurt manufacturers in New York state," said a spokeswoman for its agriculture and markets division. That doesn't include the ancillary businesses that supply goods and services to the industry, such as Agrana Fruit, which opened a $50 million plant in Lysander in 2014 and sources crops from local fruit farmers. "New York is very progressive in offering incentives to locate here," said Marty Broccoli, a specialist at Cornell University's Agriculture Economic Development department. He cited the state's grant program, tax benefits through Start-Up NY and Recharge NY, which offers low-cost electricity in exchange for job retention and creation. Meanwhile, federal investigators — led by Preet Bharara, the U.S. attorney for the Southern District of New York — are examining how money and contracts were distributed to Buffalo Billion, including SolarCity. Cuomo's office has opened its own investigation into what it has called suspicions of "improper lobbying and undisclosed conflicts of interest" that may have defrauded the state. Still, Cuomo has deemed Buffalo Billion "a tremendous success" and suggested that the probe did not "go to the essence" of the program. EDS chief Zemsky echoed that sentiment, declaring that the Buffalo Billion's efforts will continue unabated. "What they're investigating, they will investigate, and whatever the findings are, they are," Zemsky said. "The conduct of a couple of people one way or the other is certainly not, and shouldn't, derail the extraordinary commitments that have been made by the state and the people of these communities. I'm extremely bullish on our strategies and the future of New York as a great place to do business."
  • 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 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 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 20 July 2016 K. Al Awadi
  • 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