NewBase 12 December 2023 Energy News issue - 1680 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 12 December 2023 No. 1680 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 Masdar advances 10GW Africa growth plan to unlock
energy transition in six Sub-Saharan nations
Source: Masdar
Abu Dhabi Future Energy Company PJSC – Masdar advances 10GW growth plan across six Sub-
Saharan nations, marking accelerated expansion for the UAE’s clean energy leader, in support of
the clean energy transition across the continent.
The announcements were made during the United Nations Climate Change Summit (COP28) taking
place in the UAE and will support the recently launched Africa Green Industrialization Initiative to
scale up green industries in the region.
According to research launched last year by Masdar, Abu Dhabi Sustainability Week and McKinsey
& Company, Africa has a theoretical potential clean energy capacity of 850 terawatts in solar and
wind alone and could capture as much as 10% of the global green hydrogen market. These
agreements support the development of clean energy portfolios across several markets in Africa,
helping to unlock that potential and deliver improved levels of energy security to its population.
ww.linkedin.com/in/khaled-al-awadi-80201019/
Projects span Angola, Uganda, the Republic of Congo, Kenya,
Mozambique and Zambia
Marks advancement of Masdar 10 gigawatt (GW) growth plan to
unlock Africa clean energy potential

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:
'Masdar’s growth plans will help unlock Africa’s clean energy potential and further advance its energy
transition. This follows Masdar’s landmark commitment to mobilize US$10 billion in finance and 10GW of
capacity for clean energy in Africa by the year 2030. As the largest pure-play renewable energy company on
the continent, we are proud of our long-term partnerships, and we look forward to developing an important
pipeline of clean energy projects, working for Africa, with Africa.'
At COP28, Masdar announced partnership agreements with both governments and private entities in six
African countries:
 Angola – Masdar and the Republic of Angola’s Ministry of Energy and Water signed a
Concession Agreement for the first 150MWac solar PV project in Quipungo under Phase I of
the 2GW renewable energy collaboration between the governments of the UAE and the
Republic of Angola – the first renewable energy project under the strategic G2G
collaboration between the two countries.
 Uganda – The Prime Minister of Uganda, Her Excellency Robinah Nabbanja,
announced at COP28 that Masdar and Uganda’s Ministry of Energy and Mineral
Development had signed a Roadmap Agreement for the implementation of a 150MW Solar
PV project under Phase I of a 1GW collaboration between the two nations.
 The Republic of Congo – MW Energy, a Masdar subsidiary, Africa50 and
the Ministry of Energy & Hydraulics of the Republic of Congo signed a Memorandum of
Understanding (MoU) to develop 500MW of renewable energy capacity in the country.
 Kenya – During the Green Industrialization Initiative convened at COP28, Kenya
President William Ruto announced that Geothermal Development Company of Kenya and
Pertamina Geothermal Energy (PGE) of Indonesia, are to collaborate on geothermal energy
development in Kenya - Masdar is proud to support the expansion of geothermal energy
capacity in the East African nation through its investment in PGE.
 Mozambique – Infinity Power, a Masdar Infinity company, the largest pure-play
renewable energy company in Africa, has announced the signing of a Memorandum of
Understanding (MoU) with Mozambique's Ministry of Energy and Mineral Resources. This
agreement aims to explore potential opportunities for up to 1GW of renewable projects in
Mozambique. The projects initiated through this cooperation have the potential to provide
Mozambique with enough energy to power 400,000 households and will offset 3.8 million
tonnes of carbon emissions, over its 20-year life cycle. In parallel, Masdar and Infinity are
exploring a collaboration with Africa50, through their JV Infinity Power, on floating solar
photovoltaic (PV) projects in Mozambique.
 Zambia – Masdar, ZESCO and International Resource Holdings, an affiliate of
International Holding Company, to collaborate in the Zambian market through the
decarbonization of mining operations in the country. Masdar will look to supply green
electricity from renewable energy projects to power IRH mines.
Masdar, one of the world’s fastest growing clean energy companies and the largest in Africa, has
committed to deploying US$2 billion of equity by 2030 in Africa as part of the UAE-led Africa Green
Investment finance Initiative, which was announced during the Africa Climate Summit by HE Dr
Sultan Al Jaber, Chairman of Masdar and COP28 President. Masdar’s commitment aims to mobilize
a total of US$10 billion in investments to deliver 10GW of clean energy capacity in Africa by 2030.

UAE’s Amea Power to build $600m wind farm in Ethiopia
The National - John Benny
Dubai-based Amea Power has signed two new agreements at the Cop28 climate conference to
develop renewable energy projects in Africa, according to its chairman. The company is set to
develop a $600 million wind farm in Ethiopia, which could produce 300 megawatts of energy,
Hussain Al Nowais told The National on the sidelines of the UN summit.
Amea Power is in talks with the African Development Bank, the International Finance Corporation
and the Abu Dhabi Fund for Development (ADFD) to finance the project. Ethiopia, the second-most
populous nation in Africa after Nigeria, relies heavily on hydropower and plans to increase its
capacity to 13.5 gigawatts by 2040.
The country’s rapid gross domestic product growth in the past decade has driven a steady rise in
electricity demand. Despite its renewable energy potential, the country faces power shortages and
load shedding due to the challenge of serving a population in excess of 120 million and meeting a
projected 30 per cent annual increase in electricity demand.
Amea Power’s wind project will be built in Aysha, 120km from the port of Djibouti, Mr Al Nowais
said. The company has also teamed up with Zimbabwe's state-owned power utility Zesa to develop
a solar plant in the country. Amea Power will begin with 30 megawatts and increase capacity based
on demand.
Mr Al Nowais said the project would cost about $1 million per megawatt, which is “the rule of thumb
we normally use … depending on the prices [and] the market conditions”. “Zimbabwe is a country
rich with resources, whether it's platinum or gold or zinc … [and] the mining industry desperately
needs power.”
Currently, coal and hydroelectric power plants provide most of the country’s electricity. Zimbabwe
plans to reach a power generation capacity of 17,000MW by 2030, up from about 4,500MW
currently.
The project could be a part of an initiative launched by the UAE in September to invest $4.5 billion
in clean energy projects in Africa, Mr Al Nowais said. The programme includes Abu Dhabi-based
renewable energy company Masdar, ADFD, Etihad Credit Insurance, Amea Power and Africa50,
an investment platform.
Developing countries together require about $1.7 trillion a year to fund their clean energy sectors but
managed to attract foreign direct investment worth only $544 billion last year, Unctad said in a report in July.
Amea Power was founded in 2016 and has significantly increased its investment in wind, solar, energy
storage, green hydrogen and water desalination projects as part of its long-term commitment to the global
energy transition.

World must stop consuming fossil fuels instead of blaming
producers, Irena chief says
The world needs to stop the consumption of fossil fuels instead of “pointing fingers” at oil and gas
producers, according to the director general of the International Renewable Energy Agency.
“When you say phase down or phase out, it seems like you are pointing the finger at the producing
countries,” Francesco La Camera told The National at the Cop28 summit in Dubai.
His remarks come as the climate conference enters its seventh day and talks intensify about a
potential phase out or phase down of fossil fuels. However, he also said countries should introduce
policies to shift demand from fossil fuel products to cleaner energy.
Photovoltaic panels at Al Dhafra solar project in Abu Dhabi, UAE. AFP
“If you put in the market 11 terawatts [of renewable energy] by 2030 … this means that you will
decrease the supply [of other energy sources],” Mr La Camera said.
The GCC countries can use existing resources to develop renewable energy technology to tackle
climate change as well as diversify their economies, the Irena said in a report on Wednesday.
Solar photovoltaic (PV) power, which costs less than $0.20 per kilowatt hour (kWh), is now the least-
cost option for power production in the region, outpacing natural gas, liquefied natural gas, oil, coal
and nuclear power, the Abu Dhabi-based agency said.
A significant drop in production costs alongside an abundance of solar and wind resources in the
GCC create opportunities for the emergence of innovative energy solutions such as green
hydrogen.
Countries should introduce policies to shift
demand to cleaner energy

Oil-rich Gulf countries have built all their renewable energy capacity within the past decade, based
almost entirely on solar power.
Installed capacity grew to more than 5,600 megawatts last year, from 191 megawatts in 2013, Irena
said.
Despite substantial growth and improved cost competitiveness of solar energy, renewable energy's
share in the electricity mix makes up only 3 per cent of the region's generation capacity.
The UAE, the Arab world’s second-largest economy, hosts more than 60 per cent of the region’s
renewable energy capacity amid rising investment in new projects.
However, many countries in the region are planning to boost crude production over the next few
years to benefit from higher oil prices, a move that some critics say is incompatible with the goals
of the Paris Agreement.
So far, 123 countries have signed the global renewables and energy efficiency pledge, which
commits states to tripling renewable energy generation capacity to at least 11,000 gigawatts by the
end of the decade, Mr La Camera said.
However, India and China – two of the world’s largest renewable energy markets – have abstained
from the pledge.
“Probably, they are waiting to see how much finance will be in the final document before agreeing
on that,” Mr La Camera said.
“Honestly, there are no issues in [them] joining because the pledge of the tripling renewable energy
is just what is said in the Paris Agreement,” he said.
From a political standpoint, India and China want developed countries to make a more “engaged
effort” to supporting the transition in emerging markets, the Irena chief said.
Total solar PV capacity in China, the world’s second-largest economy, is projected to pass 1,000
gigawatts by the end of 2026, compared with 500 gigawatts by the end of this year, Rystad Energy
said in a report in September.
India, the world's fifth largest economy, aims to produce 500 gigawatts of non-fossil fuel capacity by
2030 to meet half of its energy demand through renewables.
Irena fund exceeds target
Financial pledges to the Irena’s energy transition accelerator financing (Etaf) platform reached $4.05
billion, surpassing its original target for Cop28 “more than fourfold”.
In the latest round, the European Bank for Reconstruction and Development committed up to $1
billion to the platform, while the International Finance Corporation pledged up to $1 billion, and
HSBC offered up to $200 million in support.
The platform, which was set up in 2021 with support from the UAE, aims to scale up renewable
energy projects in developing countries, while also bringing benefits to communities through
enhanced energy access and security.
“We have been calling for this Cop to get the financial institutions to give priority to the funding of
the infrastructure needed, especially in Africa [and] in the developed world,” Mr La Camera said.
He also said that institutional capital as well as public support would be required to channel more
funds into energy transition projects in developing economies.

U.A.E: Dubai unveils plan for 50% CO2 emissions cut by 2030
TradeArabia News Service
Dubai has announced an ambitious plan to achieve carbon neutrality, with a target of achieving a
50% reduction in emissions by the year 2030. The new plan will accelerate the momentum it has
achieved in its transition towards clean energy over the last decade, backed by a clear roadmap for
reaching its net-zero goal by 2050.
By fostering partnerships with leading regional and international organisations in clean energy,
Dubai has created green funding mechanisms, balanced risks and expanded its local capabilities
to play a dynamic role in driving its energy transition, said experts.
This approach has sent positive signals to clean energy investors, created an attractive market for
renewable technologies and led to the development of mega clean power projects.
Today, Dubai has delivered exemplary projects such as the world’s largest single-site solar power
park, the first hydropower plant in the region, a green hydrogen facility, a waste-to-energy plant and
the production of green aluminium, they added.
Abdulla Mohammed Al Basti, Secretary-General of Dubai Executive Council, said the emirate was
committed to collaborating with other global cities that share its vision for sustainability and climate
action.
On its ambitious 50% emmissions cut goal, Al Basti said: "This is a testament to Dubai's dedication
to a sustainable future, emphasising environmental protection, biodiversity, conservation of
resources, a substantial increase in renewable energy, and the advancement of a green and circular
economy."

Dubai Supreme Council of Energy Secretary-General Ahmad Buti Al Muhairbi said: "We have
adopted a structured approach for developing prudent energy policies and clean energy projects
with a focus on enhancing efficiency and fuel diversification, aligned with the United Nations’
Sustainable Development Goals."
"We are proud to have achieved a significant transformation of our energy sector, marked by the
adoption of a successful market-based strategy, applying the public-private partnership (PPP)
model. This approach has not only facilitated the development of a robust clean energy portfolio but
also catered to the rapidly growing infrastructure demands of our city," he stated.
Mark Watts, Executive Director of C40, a global network of nearly 100 of the world's leading cities
that are united in action to confront the climate crisis, lauded Dubai for its commitment to respond
to the climate crisis by addressing their biggest sources of emissions and their climate risks, through
the launch of the climate action plan, in line with the science and keeping temperatures below 1.5°C.
"The plan, the first of a major city in the Middle East aligned with the goals of the Paris Agreement,
sets out a citywide target and sectoral pathways to reduce emissions 50% by 2030 compared to
2018 levels."
"From setting up the world’s largest single-site solar park to having 75% of vehicles as hybrid or
electric powered, Dubai’s new climate action plan stands out in the region," he added.-

Malaysia: PTTEP reports three new discoveries offshore
Source: PTTEP
PTTEP yields remarkable oil and gas consecutive discoveries offshore Malaysia, one of which
marks a considerable petroleum potential PTTEP has explored in the country. The company is
strategically poised to expedite the development of these discoveries through a cluster development
approach, paving the way for long-term growth in Malaysia.
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public
Company Limited (PTTEP), disclosed that PTTEP’s subsidiary, PTTEP HK Offshore Limited
(PTTEP HKO) and PTTEP Sarawak Oil Limited (PTTEP SKO) have made new oil and gas
discoveries in three fields offshore Sarawak, Malaysia, including Chenda-1 exploration well in the
block SK405B, Bangsawan-1 and Babadon-1 exploration wells in the block SK438.
These fields are located in adjacent areas previously discovered by the company. All of them have
proven to be high-quality oil and gas reservoirs, especially Babadon-1 revealing massive sweet gas
sandstone reservoirs with thickness up to 200 meters, considered as outstanding field size in the
offshore Sarawak region which PTTEP has discovered in Malaysia, following the earlier
achievement at the Lang Lebah field.
PTTEP has achieved a positive outcome with Sirung-2 appraisal well in the block SK405B to affirm
petroleum resources. This success follows the prior discovery of oil and gas in the Sirung-1
exploration well in 2021. The project is now moving towards the Engineering study.
'Malaysia holds a prominent position within our strategic investment areas and proves successful
oil and gas discoveries in offshore areas continuously. PTTEP plans to accelerate the development

of these neighboring fields in a cluster model by synergizing facilities and production equipment,
enabling quick and efficient
development and production,
while contributing to the
company’s growth in alignment
with our strategic plan,' Mr. Montri
stated.
PTTEP’s portfolio in Malaysia
consists of Block SK405B, SK438,
SK314A, SK417, PM407, SB412
and SK325 all of which are in the
exploration phase. Lang Lebah
and Paprika gas fields in Block
SK410B are under development
phase.
Block K, SK309, SK311, Block H and the Malaysia–Thailand Joint Development Area (MTJDA) are
in the production phase. PTTEP looks forward towards its long term growth in Malaysia under the
stewardship of Malaysia Petroleum Management, PETRONAS, as the country's custodian of
petroleum resources.

NewBase December 12 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil steady ahead of interest rate decisions, OPEC+ supply cut doubts
Reuters + NewBase
Oil prices held steady on Tuesday ahead of key interest rate policy and inflation data
announcements, and amid doubts that production cuts by OPEC+ next year would offset crude
oversupply and weaker fuel demand growth.
Brent crude futures for February were flat at $76.17 a barrel as of 0353 GMT, while U.S. West Texas
Intermediate crude futures for January delivery were up 20 cents at $71.52 a barrel.
The Organization of the Petroleum Exporting Countries and allies, together called OPEC+,
have pledged to cut 2.2 million barrels per day (bpd) for the first quarter of 2024. But investors
remain sceptical that total supply will drop, as output growth in non-OPEC countries is expected to
lead to excess supply next year.
"Growth at US shale oil operations continues to surprise on the upside, while gains across other
non-OPEC producers have been unexpectedly large," said ANZ Research analysts in a note.
Oil price special
coverage
Brent crude prices have dropped from above $80 a barrel at the start of
December while WTI slipped from over $77.

Both WTI and Brent are in a contango market structure, when prompt contracts are less than later-
dated contracts, for first several months of 2024. That indicates investors feel there is lower demand
for crude or adequate supply for those months.
"The market should get a fresh take on fundamentals when OPEC and the International Energy
Agency release their monthly oil market reports this week. The oil market is also watching
negotiations at COP28."
A draft of a potential climate deal at the COP28 summit on Monday suggested measures countries
could take to slash greenhouse gas emissions, but omitted the phase out of fossil fuels many nations
have demanded, drawing criticism from the U.S., EU and climate-vulnerable countries.
A coalition of more than 100 countries had been pushing for an agreement that would for the first
time promise an eventual end to the oil age, but are up against opposition from OPEC members.
Besides negotiations at COP28, the market is also keeping watch on interest rate policies key
central banks this week, as well as U.S. inflation data.
The U.S. Consumer Price Index (CPI) report is due on Tuesday, while the Federal Open Markets
Committee's (FOMC) two-day monetary policy meeting will end on Wednesday.
Interest rate decisions are also expected from the European Central Bank (ECB) on Wednesday
and the Bank of England (BoE) on Thursday.
Demand for Saudi Arabian crude oil for January from refiners in China, the world's biggest oil
importer, is at the lowest in five months, people with knowledge of the matter said on Monday, as
higher-than-expected prices prompted buyers to seek cheaper supply elsewhere.
Saudi Arabia competes with Russia as China's biggest oil supplier.

COP28 considers end to fossil fuels in move opposed by OPEC
Reuters + NewBase
"It seems that the undue and disproportionate pressure against fossil fuels may reach a tipping point
with irreversible consequences," OPEC Secretary General Haitham Al Ghais wrote in a letter to
members of the group, including COP28 host the UAE
OPEC is rallying its members and oil producing allies to veto a proposed deal to phase out fossil
fuels at the COP28 climate summit, highlighting deep divisions over the future of oil and gas.
At least 80 countries are demanding a COP28 deal that calls for an eventual end to fossil fuel use,
as scientists urge ambitious action to avert the worst impacts of climate change. The latest draft of
what could be a final COP28 agreement, which was released on Friday, included options to do so.
"It seems that the undue and disproportionate pressure against fossil fuels may reach a tipping point
with irreversible consequences," OPEC Secretary General Haitham Al Ghais wrote in a letter to
members of the group, including COP28 host the UAE.
In the letter, dated Dec. 6, he called on them to reject any language that targeted fossil fuels in a
final summit deal. OPEC said in a reply to Reuters questions about the letter that it would continue
to advocate reducing emissions, not choosing energy sources.
"The world requires major investments in all energies, including hydrocarbons, all technologies, and
an understanding of the energy needs of all peoples," OPEC's secretary general said in the
statement.

Earlier, COP28 President Sultan al-Jaber urged delegates from nearly 200 countries to work hard
to reach a consensus before the scheduled end of the two-week summit on Dec. 12.
"Let's please get this job done," he said on Friday before the release of the draft. "I need you to step
up, and I need you to come out of your comfort zones."
Even though fossil fuels are the top source of planet-warming emissions, three decades of U.N.
climate summits have never addressed their future head on and a decision to phase out them out
would be unprecedented.
OPTIONS
COP28's draft deal includes a range of options - from agreeing to a "phase out of fossil fuels in line
with best available science", to phasing out "unabated fossil fuels", to including no language on
them at all.
France's climate ambassador Stephane Crouzat said countries such as Saudi Arabia feel they can
go on producing fossil fuels while cleansing emissions with new carbon capture technologies.
"We feel it's just not realistic," Crouzat told Reuters.
Canadian environment minister Steven Guilbeault said he was confident the final text would include
agreement on fossil fuels. "Even if it's not as ambitious as some would want, it will still be an historic
moment."
Other countries said they were insisting that any fossil fuel phase-out should be led by the wealthy
countries which have exploited their resources for decades.
"Every country cannot be put on the same standard when it comes to the transition," Malaysian
Climate Minister Nik Nazmi Nik Ahmad told Reuters.
With countries still divided, a representative of the powerful G77+China bloc of developing countries
said the "phase-down/phase-out" language needed to be rewritten.
"The whole issue would have to be rephrased," said Paulo Pedroso, a Cuban diplomat representing
the group of 134 developing countries.
"The issue is more complex," said Pedroso, adding that countries with fewer means should be given
more time to shift to clean energy, while richer ones should move faster.
A compromise must also include increasing financial and technological support for developing and
poorer nations to build the necessary infrastructure, he said.
"When you just refer to phase-down, phase-out, that looks a little bit out of context to me," Pedroso
said. "Because people don't understand what you mean."
'BEYOND HUMAN LIMIT'
Meanwhile, the U.N. climate agency's chief reminded countries that the science behind the world's
goal of holding warming to within 1.5 degree Celsius (2.7 degrees Fahrenheit) of pre-industrial
temperatures is clear.
"From the planet's perspective 1.5 is a tangible limit. It is not simply a choice," said Simon Stiell, a
Grenadian national who is executive secretary of the United Nations Framework Convention on
Climate Change.

Breaching the 1.5C threshold would mean that "2 billion people will live in areas ... beyond the
human limit," he said.
In other debates, eastern European countries are working to resolve an impasse over where to hold
next year's COP29 summit after Russia said it would block any EU member as COP president.
As of Friday, diplomats said Azerbaijan was likely to win in its bid to host the event. Bulgaria and
Moldova have also offered to take on the rotating presidency.
The 21-page agreement would, if adopted, be the first specifically calling for reduced use of all fossil
fuels, including oil and gas, marking a historic shift in the UN treaty that governs the global fight
against against climate change. But for many countries it doesn’t go nearly far enough, falling short
of a complete phase out and offering nations loopholes and opt-outs.
“This is the first COP where the word ‘fossil fuels’ are actually included in the draft decision,” said
Mohamed Adow, the director of Power Shift Africa. “This is the beginning of the end of the fossil fuel
era.”
But while there was praise for the inclusion of language on all fossil fuels for the first time, the
reaction of many countries pushing for the stronger action showed consensus was some way off.
The EU, a big player in the COP process, said the draft fell well short. Wopke Hoekstra, the EU’s
climate commissioner, said it was “clearly insufficient” and that days of talks could remain in order
to make the language on phasing out fossil fuels stronger to keep the Paris goal of 1.5C alive.

“There is a great majority of countries who want and demand more in terms of phasing out” fossil
fuels, Hoekstra told reporters. “This is the decade in which it needs to happen,” he added, referring
to cutting emissions.
There was no initial reaction from Saudi Arabia and other other members of the Organization of
Petroleum Countries, who’s economies largely depend on oil and gas revenue.
The text also presents some actions — from tripling renewables to reducing the consumption and
production of fossil fuels — as options, rather than prescribed steps.
Those options in the draft text are preceded by the phrase: “take actions that could include.” That
qualifier “makes all the listed actions optional for nations,” said Rachel Cleetus, policy director at the
Union of Concerned Scientists. The text is “extremely disappointing, concerning, and nowhere close
to the level of ambition people around the world deserve,” she said.
Other key elements of the draft included the first agreement to go beyond carbon dioxide by
targeting methane and other potent greenhouse gases with substantial reductions by 2030. That
follows a voluntary pledge for a 30% global reduction in methane first introduced by the US and EU
two years ago. The move is significant because methane, fluorinated gases and nitrous oxide are
far more powerful at warming the earth’s temperature.
A framework on how to adapt to climate change — known as the global goal on adaptation — was
given stronger references to finance and the need to close the gap in adaptation funding and global
adaptation needs.

NewBase Specual Coverage
The Energy world –December 12 -2023
United States begins natural gas in storage &
Production at Records levels
U.S. EIA, Natural Gas Monthly and Weekly Natural Gas Storage Report + NewBase
Working natural gas in storage in the Lower 48 United States ended the natural gas injection season
at 3,776 billion cubic feet (Bcf), according to estimates based on data from our Weekly Natural Gas
Storage Report released on November 16.
The Lower 48 states will enter the winter heating season, which runs from November 1–March 30,
with the most natural gas in storage since 2020. In addition, we now have 5% more natural gas in
U.S. inventories entering the winter heating season than the previous five-year (2018–22) average,
and 7% more than last October 31.
Note: Data for Oct. 31, 2023, are interpolated, based on the Weekly Natural Gas Storage Report.
The large volume of gas in storage today is partially the result of a mild 2022–23 heating season.
Working natural gas inventories totaled 1,823 Bcf on April 1, 2023, or 19% more than the average
U.S. April 1 total for the previous five years.
Relatively full inventories at the start of the summer injection season means that storage operators
can reach their end-of-season targets with smaller natural gas injections. Net additions to working
U.S. natural gas inventories totaled 1,953 Bcf during the injection season, about 5% less than the
five-year average and 9% less than in 2022.
U.S. natural gas inventories climbed quickly in the spring and early summer. During that time, net
injections of natural gas into storage exceeded the five-year average as the storage surplus grew

from 298 Bcf on March 31 and peaked at 370 Bcf during the week ending June 30. For the next 11
consecutive weeks, net injections were below the five-year average, reaching a low of 163 Bcf
during the week ending October 6.
Data source: U.S. Energy Information Administration, Weekly Natural Gas Storage Report
Although the end of the U.S. natural gas storage injection season is traditionally defined as October
31, net injections often occur in November. Working natural gas storage peaked at 3,836 Bcf in
2023, during the week ending November 24—303 Bcf above the five-year average.
Associated natural gas production has tripled since 2018 in top 3 Permian oil plays
Note: Information on EIA's classification of oil and natural gas wells is available in our Drilling
Productivity Report Supplement. The three major oil plays are the Spraberry, Wolfcamp, and Bone
Spring plays. Data reflect the average from January through July 2023.

Production of associated-dissolved natural gas, or associated natural gas, which is natural gas
produced from predominantly oil wells, has nearly tripled since 2018 in the three top-producing tight
oil plays in the Permian region.
Associated natural gas from the Wolfcamp, Spraberry, and Bone Spring plays averaged a combined
13.7 billion cubic feet per day (Bcf/d) in the first seven months of 2023, up from an average of 4.7
Bcf/d in 2018, according to data from Enverus DrillingInfo.
Associated natural gas production has grown due to increases in both crude oil production and the
volume of natural gas per barrel of oil that a well produces, the gas-to-oil ratio (GOR), among the
oil wells in these three plays.
Any increase in the GOR in an oil well means more natural gas per barrel of oil is being produced.
We define oil wells as those with a GOR of less than or equal to 6.0 thousand cubic feet of natural
gas per barrel of oil produced (Mcf/b). We classify wells with a GOR of more than 6.0 Mcf/b as
natural gas wells.
The Permian region, which spans parts of western Texas and southeastern New Mexico, produces
more crude oil than any other region in the United States, accounting for more than 40% of total
U.S. crude oil production.
The Permian is the second-largest natural gas-producing region in the country, accounting for about
a quarter of total U.S. marketed natural gas production. Most of the natural gas produced in the
Permian region is associated natural gas. Consequently, in the Permian region, increased crude oil
production has also increased associated natural gas production.
Average crude oil production in the first nine months of 2023 increased by 68% in the Permian
compared with 2018, while natural gas production in the Permian increased by 104% over the same
period, according to our Drilling Productivity Report.

The Spraberry, Wolfcamp, and Bone Spring plays produce most of the associated natural gas within
the Permian region. In 2023, these three plays produced 13.2 Bcf/d more associated natural gas
than in 2013. Higher crude oil production accounted for 65% of the increase in natural gas
production, and 35% of the increase came from a higher GOR, which rose from 2.0 Mcf/b in 2013
to 3.1 Mcf/b in the first seven months of 2023.
Data source: Enverus DrillingInfo
Note: Information on EIA's classification of oil and natural gas wells can be found in our Drilling
Productivity Report Supplement. The three major oil plays are the Spraberry, Wolfcamp, and Bone
Spring plays. Increases in associated natural gas production from a higher GOR are compared
with the 2013 average GOR of 2.0 thousand cubic feet of natural gas per barrel of oil produced.
Data reflect the average from January through July 2023.
As more oil and natural gas are released within a well, the GOR tends to progressively increase,
increasing the volume of associated natural gas produced per every barrel of oil. Pressure within
the reservoir declines progressively as more oil is brought to the surface, which allows more natural
gas to be released from the geologic formation.
Amid uncertainty, the United States continues to be an important global supplier of
crude oil and natural gas
OIL PRICE IS THE PRIMARY DRIVER OF DRILLING AND PRODUCTION
For both liquid fuels and natural gas, the effects of COVID-19 are primarily a short-term demand-
side shock. Uncertainty surrounding post-pandemic expectations for oil and natural gas demand
translates to uncertainties in supply through prices.
In AEO2021, the oil price is the primary driver of projected drilling activity and accompanying U.S.
crude oil production rates. Thus, given the current economic downturn, EIA expects a lower price
path in the short and medium term to decrease U.S. oil production rates compared with AEO2020.
PRODUCERS ARE MORE DEPENDENT ON CAPITAL FROM CASH FLOW
The oil and natural gas industry was already headed toward relying on capital from cash flow instead
of debt and equity. COVID-19 has accelerated this trend, leaving producers more dependent on

internal sources of cash flow because outside funding sources are less available or require higher
rates of return. AEO2021 reflects these trends, with model changes including reducing drilling
responsiveness to price increases in the short term and increasing the hurdle rate of return. Oil
prices remain the most significant determining factor in oil production, and so if oil prices rapidly
rise, as is seen in the High Oil Price case scenario, then production would follow suit.
REFERENCE CASE CRUDE OIL PRODUCTION REMAINS AT RECORD-HIGH
LEVELS FOR THE NEXT 30 YEARS
Starting in 2023, oil and natural gas production in the Reference case remains at historically high
levels through 2050. The United States continues to be an integral part of global oil and natural gas
markets and a significant source of global supply.
Domestic crude oil production in the Reference case returns to 2019 levels starting in 2023. In the
long term, production continues to grow, generally plateauing in the later years of the projection
period. The Brent crude oil price returns to 2019 levels after 2025 in the Reference case.
Where the prices return quickly to pre-COVID-19 levels, as they do in the High Oil Price case, then
crude oil production returns to 2019 levels more quickly. However, in the Low Oil Price case where
oil prices are much lower than recent historical levels seen during the past 10 years, production
never returns to pre-pandemic levels.

Tight oil is primarily driving the growth in the oil production outlook, followed by offshore resources.
Tight oil production from the Wolfcamp play in the Permian Basin (Southwest region) and the
Bakken play in the Williston Basin (Northern Great Plains region) leads the growth in U.S. tight oil
production.
However, estimates of technically recoverable tight or shale crude oil and natural gas resources are
uncertain. The high and low oil and gas supply cases explore the impact of higher and lower
resource supply levels on domestic production, including tight oil.
NATURAL GAS PRODUCTION CONTINUES TO GROW, AND END-USE
CONSUMPTION AND LIQUEFIED NATURAL GAS (LNG) TRADE REMAINS
UNCERTAIN
Domestic natural gas production in the Reference case also returns to pre-pandemic levels starting
in 2023. In the long term, production continues to grow during the entire projection period, driven by
end-use consumption and opportunities to sell natural gas internationally through LNG exports.
Shale gas and associated natural gas from oil plays are the primary contributors to this long-term
growth. In the Reference case, more than half of the growth in shale gas production between 2020
and 2050 comes from shale gas plays in the Appalachian Basin in the East region, and most of the
remaining growth comes from plays in the Gulf Coast and Southwest regions.

Due to the drop in crude oil production, associated natural gas (natural gas produced in primarily
oil formations) also decreased in 2020 because of the relatively low crude oil and natural gas prices.
EIA projects associated natural gas will return to 2019 levels in 2024 and then steadily increase at
a modest rate through 2050, primarily driven by increased drilling in the Permian Basin.
In the long term, because of expected increases in international demand for natural gas, EIA expects
U.S. LNG exports to more than double between 2020 and 2029 in the Reference case.
The side cases display the uncertainty in international demand for and competitiveness of U.S.
supply. Oil prices, which are traditionally used as a basis for global LNG price contracts, and U.S.
natural gas prices both drive how competitive U.S. LNG exports are in global markets. The Oil and
Gas Supply cases define the range of projected U.S. natural gas supply prices in the AEO 2021.
Henry Hub natural gas spot prices remain below $3 per million British thermal units (MMBtu) in the
High Oil and Gas Supply case and exceed $6/MMBtu by 2050 in the Low Oil and Gas Supply case.
With higher oil prices or lower U.S. natural gas domestic prices, LNG exports are much higher than
in the Reference case, while the opposite occurs with lower oil prices or higher U.S. natural gas
domestic prices.

NewBase Energy News 12-December - Issue No. 1660 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase 12 December 2023 Energy News issue - 1680 by Khaled Al Awadi_compressed.pdf

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