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NewBase Energy News 14 January 2023 No. 1583 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Arabia plans to use domestic uranium for entire nuclear
fuel cycle, says minister
The National - Ismaeel Naar + NewBase
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman said on Wednesday the kingdom
intended to use domestic uranium for the entire nuclear fuel cycle. He added that recent
exploration had shown a diverse portfolio of uranium in the country. Saudi Arabia has been looking
to add atomic power capacity to generate electricity
Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman says the kingdom has rich uranium deposits.
“The kingdom intends to utilise its national uranium resources, including in joint ventures with willing
partners in accordance with international commitments and transparency standards,” Prince
Abdulaziz told the Future Minerals Forum in Riyadh.
This would involve “the entire nuclear fuel cycle which involves the production of yellowcake, low
enriched uranium and the manufacturing of nuclear fuel both for our national use and, of course, for
exportation”.
ww.linkedin.com/in/khaled-al-awadi-80201019/
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Prince Abdulaziz was appointed Minister of Energy in September 2019. He has previously said that
Saudi Arabia was keen to use domestic uranium deposits to develop a nuclear power industry.
Saudi Arabia, which has been looking at wind and solar power to free up its oil for export, is exploring
the use of atomic power capacity to generate electricity.
It expects to have 17 gigawatts of nuclear capacity by 2040 and bring two reactors with a combined
capacity of 3.2GW online within the next decade.
Last month, Russia's state nuclear corporation Rosatom submitted documents to take part in
a tender to build Saudi Arabia's first nuclear power plant, according to Russia's Deputy Prime
Minister Alexander Novak.
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World ‘Way Off Track’ With Climate Goals, Says UAE COP President
Bloomberg - Paul Wallace and Anthony Di Paola
The world is far off course when it comes to achieving climate goals, said Sultan al-Jaber, in his first
comments since being picked by the United Arab Emirates as the president for this year’s COP
summit.
“We are way off track,” he said in a speech in Abu Dhabi. “The world is playing catchup when it
comes to the key Paris goal of holding global temp eratures down to 1.5C” above pre-industrial
levels.
Al-Jaber’s appointment on Thursday triggered plenty of negative reactions from climate activists,
given that he heads the OPEC member’s state oil and gas producer, Abu Dhabi National Oil Co.
He’s also chairman of Masdar, one of the largest renewable-energy investors in the world.
While al-Jaber didn’t directly address the criticism, he said the UAE would approach the task of
hosting COP28 — to be held in Dubai in November and December — with humility.
“We don’t claim to have all the answers,” he said. “But we believe we have something valuable to
contribute. I am here to listen and engage.” He spoke at an Atlantic Council event. US climate envoy
John Kerry and UK energy and business secretary Grant Shapps were in the audience.
The UAE wants COP28 to focus on scaling up wind and solar power as well as hydrogen. It should
also be about ensuring poorer countries get financing to develop such technologies and
compensation for climate change caused by industrialized nations, al-Jaber said.
“We want it to be a COP for all,” he said. “We want it to be a COP that moves from goals to getting
it done across mitigation, adaptation, finance and loss and damage.” The UAE pumps about 3.4
million barrels of crude a day, making it the biggest producer in the Organization of Petroleum
Exporting Countries after Saudi Arabia and Iraq.
Those countries argue fossil fuel producers must have a greater say in climate talks. They have
also blamed the surge in oil and gas prices in the past two years on a lack of investment on such
fuels in the west.
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Qatar, UAE energy ministers say gas will be needed for long time
Reuters + NewBase
The world will need natural gas for a long time and more investment is required to ensure supply
security and affordable prices during the global energy transition, energy ministers of Qatar and the
United Arab Emirates said on Saturday.
Saad al-Kaabi, Qatari state minister for energy, told the Atlantic Council Global Energy Summit that
a mild winter in Europe had seen prices come down, but that volatility would remain "for some time
to come" given that there was not much gas coming into the market until 2025.
"The issue is what's going to happen when they (Europe) want to replenish their storages this
coming year and the next year," he said, adding that energy producers were concerned about
demand destruction.
Qatar is one of the world's top producers of liquefied natural gas. The UAE is an OPEC oil producer
that is sharpening its focus on the gas market as Europe seeks to replace Russian energy imports
after supply cuts since Western sanctions were imposed on Moscow over its invasion of Ukraine.
The Qatari minister said he believed that Russian gas would eventually return to Europe.
UAE Energy Minister Suhail al-Mazrouei, speaking on the same panel in Abu Dhabi, agreed that
"for a very long time, gas will be there" and that while more renewable energy would be installed,
more investment was needed in gas as a base load.
"The whole world needs to think of resources and how to enable companies to produce more gas
to make it available and affordable," Mazrouei said.
Kaabi said gas "is not a transition fuel" but a destination fuel, and that it was unfair for some in the
West as part of its green energy push to say African countries should not be drilling for oil and gas
when it was important for their economies and the world needed more supply.
Mazrouei said the "unclear" strategy of many countries made it difficult for them to commit to long-
term gas contracts which in turn made it hard for energy companies to secure financing to invest in
developing production capacity.
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Oman Shell signs agreements for syngas and LNG offtake;
takes stake in green hydrogen project. Reuters + Sowmya Sundar, Zawya
Shell Oman has signed a Letter of Intent with Oman’s Ministry of Energy and Minerals to explore
the deployment of Liquified Synthetic Gas (LSG) in Oman.
LSG is produced when renewable hydrogen is combined with captured carbon dioxide to produce
natural gas which is then liquefied. This low-carbon gas can be directly introduced to existing gas
networks and infrastructure, including LNG plants such as Oman LNG, all the way to the point of
use, said Walid Hadi, Senior Vice President, Country Chair, Shell Oman in a Linkedin post.
In another agreement, Shell Oman has taken a 35 percent stake in Green Energy Oman (GEO),
the consortium that is developing the country’s largest renewable green hydrogen project in Al
Wusta and Dhofar governorates, Oman. The hydrogen will be produced from up to 25 gigawatts of
solar and wind energy.
Other members of this consortium include OQ (through its subsidiary Oman Energy Development),
InterContinental Energy, EnerTech Holding Company, KSCC and Golden Wellspring Wealth for
Trading. Worley is providing concept feasibility study services for the project.
The third agreement pertains to a long-term LNG offtake agreement. Shell Oman has signed a term
sheet with Oman LNG for the purchase of 0.8 million metric tonnws per year of liquefied natural gas
(LNG) for a period of 10 years, starting from 2025.
Furthermore, Oman Shell entered into a Letter of Intent (LoI) with the Ministry of Energy and
Minerals to explore opportunities for the
production of liquefied synthetic gas (LSG) in the
country.
LSG is produced when green hydrogen is
combined with captured carbon dioxide to
produce natural gas which is then liquefied. This
low-carbon gas can be directly introduced to
existing gas networks and infrastructure,
including the liquefied natural gas stations of the
Oman LNG company, all the way to the end user.
At the end of 2022, Oman LNG signed long-term
agreements with three Japanese companies – Itochu Corporation, JERA and Mitsui & Co – to
deliver LNG at a total volume of 2.35 mtpa starting from 2025.
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redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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US Even With the Electric Car Boom, the Need for Oil Is Climbing
Analysis by Javier Blas | Bloomberg
It’s the battle that will define the US oil market this decade. On one side, the combination of rising
sales of electric vehicles, more efficient conventional cars, and the impact of working-from-home is
pushing down gasoline demand; on the other, the ever-growing popularity of plastics combined with
a growing population is boosting consumption of petrochemicals.
In short, one can call it “Tesla against the plastic industry.” If Tesla and its electric-vehicle rivals win
the battle, oil demand will peak soon, helping to meet global climate change goals by reducing
consumption of fossil fuels.
For now, however, plastics have the upper hand, keeping overall oil demand growing. On Tuesday,
the Energy Information Administration, the statistical arm of the US Department of Energy, released
its first forecast for the 2024 oil market.
The look is tentative but provides early clues about its direction. Every January, the EIA is the first
of the three major public bodies to publish its outlook for the next year. The International Energy
Agency will release its take in June, and OPEC will follow up a month later.
The EIA analysis shows that US oil demand will rise next year to 20.63 million barrels per day,
surpassing the most recent peak, set in 2018 and 2019, and within a whisker of the all-time high set
between 2004 and 2007 when demand averaged 20.7-20.8 million barrels per day just before the
onset of the global financial crisis.
Strikingly, American oil demand will rise to near-record levels in 2024 despite a significant drop in
gasoline use, which in the past was the engine of US oil consumption. It’s an indication that electric-
vehicle sales would need to grow significantly before they force overall oil demand down.
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The EIA estimates that by 2024, American gasoline demand will drop to 8.73 million barrels per day,
or about 600,000 barrels a day lower than it was in 2018. That’s equal to the total oil consumption
of a medium-sized European nation like Belgium.
All suggest that the heyday of American gasoline demand is in the rear-view mirror. But the fall
would be more than offset by rising consumption of the feedstock used in the petrochemical industry
to produce plastics, which will hit a record high of about 4 million barrels per day by 2024, up more
than 700,000 barrels from 2018.
The US trends are mirrored elsewhere in the world, with plastic consumption soaring in emerging
markets like India and China. The EIA anticipates that global oil demand will hit an all-time high of
102.2 million barrels a day in 2024, up 1.7 million barrels a day from 2023 and above the pre-Covid
peak set in 2019 of 100.8 million barrels a day.
In projecting another year of
strong consumption growth,
the EIA is further postponing
peak oil demand.If a peak in
oil demand is near, it’s not
showing up in any
contemporaneous data or
reliable short-term forecast.
Only long-term models —
rather than forecasts — point
to a peak within the next few
years.
Everything else shows
steady-as-it-goes
consumption. The 2024 EIA
forecast is a case in point: Not
only is global oil demand heading toward another record, but the rate of growth isn’t moderating.
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Europe Still Winning on LNG Imports Even as Prices Slump
Bloomberg + NewBase
Europe is still awash with liquefied natural gas despite a crash in benchmark prices as demand in
Asia remains lackluster.
A few weeks ago, it became more profitable to deliver US LNG to Asia than to Europe, but that
premium has been insufficient to lure cargoes away from a region that’s been flooded with the fuel
in recent months.
Some 68% of the LNG exported by the US last week is headed to Europe, while 27% is en route to
Asia, according to Laura Page, a senior analyst at data and analytics firm Kpler. Despite speculation
that Asian demand will rise after China scrapped strict Covid restrictions, the country’s reopening
has been bumpy, infections are still rife, and there’s the Lunar New Year ahead.
“Looking at truck LNG prices in China, which is a good indication of industrial demand — it’s going
down, there is no rebound in activity yet,” said Arun Toora, an analyst at researcher BloombergNEF.
“You need to go past the holiday season in China first.”
LNG deliveries to Europe have helped ease an energy crisis this winter after Russian piped supply
slumped. But even when demand is tepid on both continents, Europe has long been considered the
market of last resort, with traders standing a good chance of finding buyers in Spain, France or the
UK, home to extensive import infrastructure and trading hubs.
Gas inventories in Asia — as in Europe — are currently healthy, while the weather hasn’t been cold
enough to drive up consumption. Much depends on temperatures for the rest of the winter in both
regions, and on industrial demand in China amid its emergence from Covid. Traders considering a
voyage of at least 20 days from the US to Asia need to be sure of a reliable market.
“If there is a sudden cold snap in Asia, a considerable amount of spot cargoes could divert from
Europe, but there are no signs of colder weather there yet,” Toora said. “You wouldn’t see Asian
demand picking up substantially unless prices fall to $15-$18 per million British thermal units.”
To be sure, Europe’s LNG
imports have softened in recent
weeks, reflecting lackluster
consumption and sliding prices,
but they’re still above the
seasonal norm. Yet Morgan
Stanley, which has slashed its
gas-price forecast by half, said
European prices don’t need to
be anywhere near the peaks of
last August to attract
shipments.
There are some diversions of
deliveries, ship-tracking data
show. One vessel appears to
be rerouting from northwest
Europe to Asia, and another last week switched destinations to sail to Turkey instead of the UK.
But many tankers are staying close to western Europe — positioning that will also help them once
the Freeport LNG facility in the US eventually restarts.
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NewBase January 14 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil posts biggest weekly gain since October
Reuters + NewBase
Oil prices settled more than a dollar a barrel higher on Friday, notching their biggest weekly gains
since October, as the U.S. dollar dropped to a seven-month low and more indicators pointed toward
growing demand from top oil importer China.
Brent crude futures settled at $85.28 a barrel, up by $1.25, or 1.5%. West Texas Intermediate (WTI)
crude futures rose for the seventh-straight session to settle at $79.86 a barrel, up by $1.47, or
1.9%.Brent gained 8.6% this week, while WTI rose by 8.4%, recouping most of the previous week's
losses.
The U.S. dollar index for the first time in 2-1/2 years, feeding hopes the Federal Reserve would slow
its rate hikes. A weaker greenback tends to boost demand for oil, making it cheaper for buyers
holding other currencies.
Oil price special
coverage
Summary
• Global benchmarks gain over 8% for the week
• U.S. dollar hits seven-month low
• Data on Thursday showed U.S. inflation fell in Dec.
• Analysts bullish on China demand indicators
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Recent Chinese crude purchases and a pick-up in road traffic in the country are also fuelling hopes
of a demand recovery in the world's second-largest economy following the reopening of its borders
and easing of COVID-19 curbs after protests last year.
"Everyone is looking at Chinese mobility indicators and they point upward, indicating recovering oil
demand and supporting prices," said UBS analyst Giovanni Staunovo.
"Next thing to watch is if this translates also into higher Chinese crude imports and if energy
agencies (IEA, OPEC) revise upwards their (first quarter) demand estimates," Staunovo said.
The Organization of the Petroleum Exporting Countries and allies, including Russia, will meet in
February to assess market conditions, and there is some concern that the group could cut oil output
again to lift prices after recent declines.
"We have the seven-day winning streak under our belt... but we are still nowhere near where we
were the last time OPEC+ folks cut production," Mizuho analyst Robert Yawger said.
OPEC+ had announced a 2-million-barrel-per-day cut to production in October as global oil prices
fell under $90 a barrel.
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Russia Oil-Price Cap Defies Skeptics With So Far, So Good Start
Christopher Condon – Bloomberg
Once seen as misguided and unworkable, the US-conceived price cap on Russian crude oil exports
is showing signs of success — for now — since it was implemented late last year.
Moscow’s budget deficit widened to a record amid the slump in prices, with Russian grades falling
faster than global prices as supply hasn’t been severely disrupted, the two key aims of the idea that
was hatched by the US Treasury Department last year as part of the global response to President
Vladimir Putin’s invasion of Ukraine.
“If the goal of Western powers was to have their cake and eat it too, then the cap is presently working
as planned,” said Raad Alkadiri, managing director for energy, climate and resources at Eurasia
Group in Washington. “Russian flows have been diverted but not disrupted for the most part, and
prices have not risen.”
Crude shipments out of two major western Russian ports averaged just under $40 a barrel during
the first days of January, according to data from Argus Media, which gathers prices in the physical
market. That’s down more than 35% from the November average and roughly 50% from June.
Over those same periods, Brent crude, a global benchmark, fell about 15% and 37%, respectively.
That suggests weaker demand from a slowing global economy can’t fully account for the drop in
Russian prices, and its export volume hasn’t slipped enough that lower supply is pushing
international prices back the other way.
The US Treasury’s deputy secretary, Wally Adeyemo, said he and his colleagues were pleased with
the results, but reacted cautiously when asked if the plan could be declared a success.
“Until the invasion of Ukraine is done, we’re not going to declare anything,” he said in an interview.
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The European Union’s decision last June to stop importing almost all seaborne Russian oil from
Dec. 5 forced Moscow to look elsewhere to sell about 2 million barrels a day. While it found outlets
in China, India and Turkey, that concentrated group of buyers seized upon their leverage to secure
deep discounts. On top of that, Russia has been forced to absorb the extra costs for the longer
shipping distances.
“What has hurt Russia is having to swing cargoes from Europe to Asia and be forced to accept the
discount,” said Paul Horsnell, head of commodities research at Standard Chartered Bank in London.
“Lack of access to Europe is what has mattered, not the price cap.”
The cap was designed as a way to partly undercut EU sanctions, which the US feared might backfire
by cutting supply. In addition to the embargo on Russian oil, the EU and UK barred their companies
from offering key services to any shipper carrying Russian oil anywhere in the world, which included
insurers who dominate the global market for underwriting oil tankers.
That set off alarm bells in Washington, where US Treasury officials feared the sanctions might trap
2 million to 3 million barrels a day inside Russia, sending global prices spiking well above $100 a
barrel. Officials even worried that higher prices on lower output could end up benefiting Russia while
driving the rest of the world into recession.
Against that worst-case scenario, the cap was conceived as a release valve to allow Russia
continued access to EU and UK shipping services so long as cargoes were priced under an agreed
cap, which was ultimately set at $60.
The US had to charm, plead and bully Group of Seven governments and then the EU into backing
the scheme just in time for the Dec. 5 deadline.
To be sure, Russian export volumes fell in the weeks following Dec. 5, but bad weather, port
maintenance and a shift by Russia to exporting refined products may explain much of that.
The cap advocates also got lucky. A cooling global economic outlook combined with the leverage
already applied by Russia’s few buyers meant that Moscow was already selling much of its crude
below the $60 cap before it even came into effect.
For shipments priced over the cap, mostly coming from Russia’s eastern ports, Russia and its
buyers have apparently been able to line up shipping and service providers from outside the EU
and UK.
Still, the US and its allies must navigate an uncertain path forward for the cap, beginning with a
review of the crude price, which begins in January, and related caps for refined fuels that must be
agreed by Feb. 5.
Some EU members are already clamoring to tighten the screws on Moscow by lowering the crude
cap, but squeezing too hard risks pushing Putin to cut production in an attempt to provoke a price
spike the US has always sought to avoid.
Any change to the cap would require a unanimous vote by the EU’s 27 member governments,
according to an EU official.
Adeyemo wouldn’t comment on whether the US will want to adjust the cap. While one aim of the
cap, he said, is to reduce Moscow’s revenue, the US also wants to make sure Russia has a
continued incentive to export its oil.
“We feel at the moment the $60 amount that we’ve set is accomplishing our two goals,” he said.
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NewBase Specual Coverage
The Energy world –January -01 -2023
CLEAN ENERGY
Hydrogen advances shifting towards clean energy: IEA
PARIS, 0 hours, 55 minutes ago
Hydrogen technology development is shifting towards low-emissions solutions such as electrolysis,
according to a joint study of patents by the European Patent Office (EPO) and the International
Energy Agency (IEA).
The report is the first of its kind and uses global patent data to provide comprehensive up-to-date
analysis of innovation in all hydrogen technologies. It covers the full range of technologies, from
hydrogen supply to storage, distribution and transformation, as well as end-use applications.
“Hydrogen from low-emissions sources can play an important role in clean energy transitions with
potential to replace fossil fuels in industries where few clean alternatives exist, like long-haul
transport and fertilizer production,” said IEA Executive Director Fatih Birol.
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“This study shows that innovators are responding to the need for competitive hydrogen supply
chains, but also identifies areas – particularly among end-users – where more effort is required. We
will continue to help governments spur innovation for secure, resilient and sustainable clean energy
technologies.”
“Harnessing the potential of hydrogen is a key part of Europe’s strategy to achieve climate neutrality
by 2050,” said EPO President António Campinos.
“But if hydrogen is to play a major role in reducing CO2 emissions, innovation is urgently needed
across a range of technologies. This report reveals some encouraging transition patterns across
countries and industry sectors, including Europe’s major contribution to the emergence of new
hydrogen technologies. It also highlights the contribution of start-ups to hydrogen innovation, and
their reliance on patents to bring their inventions to market.”
The study presents the major trends in hydrogen technologies from 2011 to 2020, measured in
terms of international patent families (IPFs), each of which represents a high-value invention for
which patent applications have been filed at two or more patent offices worldwide.
The report finds that global patenting in hydrogen is led by the European Union and Japan, which
account for 28% and 24% respectively of all IPFs filed in this period, with significant growth in the
past decade. The leading countries in Europe are Germany (11% of the global total), France (6%),
and the Netherlands (3%).
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The US, with 20% of all hydrogen-related patents, is the only major innovation centre to see
international hydrogen patent applications decline in the past decade. International patenting activity
in hydrogen technologies remained modest in South Korea and China but is on the rise. In addition
to these five main innovation centres, other countries generating significant volumes of hydrogen
patents include the United Kingdom, Switzerland and Canada.
Hydrogen production technologies accounted for the largest number of hydrogen patents over the
2011-2020 period. While global hydrogen production is currently almost entirely fossil-based, the
patenting data shows that low-emissions innovations generated more than twice the number of
international patents across all segments of the hydrogen value chain than established
technologies.
Technologies motivated by climate concerns accounted for nearly 80% of all patents related to
hydrogen production in 2020, with growth driven chiefly by a sharp increase of innovation in
electrolysis. The most innovative regions are now competing to host the first industrial roll-out phase,
with the data suggesting that Europe is gaining an edge as a location for investment in new
electrolyser manufacturing capacity.
Among hydrogen’s many potential end-use applications, the automotive sector has long been the
focus for innovation, and patenting in this sector continues to grow, led mainly by Japan. Similar
momentum is not yet visible in other end-use applications, despite concerted policy and media
attention in recent years on hydrogen’s potential to decarbonise long-distance transport, aviation,
power generation and heating.
National net zero emissions NZE pledges cannot be achieved without addressing unabated fossil
fuel use in these sectors. One bright spot is a recent uptick in patenting for the use of hydrogen to
decarbonise steel production – possibly in response to the post-Paris Agreement consensus that
the sector needs radical solutions to cut emissions quickly.
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For established hydrogen technologies, innovation is dominated by the European chemical industry,
whose expertise in this sector has also given it a head start in climate-motivated technologies such
as electrolysis and fuel cells.
Automotive companies are also active, and not just for vehicle technology. Behind them, universities
and public research institutes generated 13.5% of all hydrogen-related international patents in 2011-
2020, led by French and Korean institutions, with a focus on low-emissions hydrogen production
methods such as electrolysis.
The study finds that more than half of the $10 billion of venture capital investment into hydrogen
firms in 2011-2020 went to start-ups with patents, despite them making up less than a third of the
start-ups in the report’s data set. Holding a patent is a good indicator of whether a start-up will keep
attracting finance: more than 80% of late-stage investment in hydrogen start-ups in 2011-2020 went
to companies that had already filed a patent application in areas such as electrolysis, fuel cells, or
low-emissions methods for producing hydrogen from gas.
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
NewBase Energy News 13 January 2023 - Issue No. 1583 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.
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20

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NewBase 14-January-2023 Energy News issue - 1583 by Khaled Al Awadi.pdf

  • 1. Copyright © 2022 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 endeavors 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 14 January 2023 No. 1583 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Saudi Arabia plans to use domestic uranium for entire nuclear fuel cycle, says minister The National - Ismaeel Naar + NewBase Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman said on Wednesday the kingdom intended to use domestic uranium for the entire nuclear fuel cycle. He added that recent exploration had shown a diverse portfolio of uranium in the country. Saudi Arabia has been looking to add atomic power capacity to generate electricity Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman says the kingdom has rich uranium deposits. “The kingdom intends to utilise its national uranium resources, including in joint ventures with willing partners in accordance with international commitments and transparency standards,” Prince Abdulaziz told the Future Minerals Forum in Riyadh. This would involve “the entire nuclear fuel cycle which involves the production of yellowcake, low enriched uranium and the manufacturing of nuclear fuel both for our national use and, of course, for exportation”. ww.linkedin.com/in/khaled-al-awadi-80201019/
  • 2. Copyright © 2022 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 endeavors 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 Prince Abdulaziz was appointed Minister of Energy in September 2019. He has previously said that Saudi Arabia was keen to use domestic uranium deposits to develop a nuclear power industry. Saudi Arabia, which has been looking at wind and solar power to free up its oil for export, is exploring the use of atomic power capacity to generate electricity. It expects to have 17 gigawatts of nuclear capacity by 2040 and bring two reactors with a combined capacity of 3.2GW online within the next decade. Last month, Russia's state nuclear corporation Rosatom submitted documents to take part in a tender to build Saudi Arabia's first nuclear power plant, according to Russia's Deputy Prime Minister Alexander Novak.
  • 3. Copyright © 2022 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 endeavors 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 World ‘Way Off Track’ With Climate Goals, Says UAE COP President Bloomberg - Paul Wallace and Anthony Di Paola The world is far off course when it comes to achieving climate goals, said Sultan al-Jaber, in his first comments since being picked by the United Arab Emirates as the president for this year’s COP summit. “We are way off track,” he said in a speech in Abu Dhabi. “The world is playing catchup when it comes to the key Paris goal of holding global temp eratures down to 1.5C” above pre-industrial levels. Al-Jaber’s appointment on Thursday triggered plenty of negative reactions from climate activists, given that he heads the OPEC member’s state oil and gas producer, Abu Dhabi National Oil Co. He’s also chairman of Masdar, one of the largest renewable-energy investors in the world. While al-Jaber didn’t directly address the criticism, he said the UAE would approach the task of hosting COP28 — to be held in Dubai in November and December — with humility. “We don’t claim to have all the answers,” he said. “But we believe we have something valuable to contribute. I am here to listen and engage.” He spoke at an Atlantic Council event. US climate envoy John Kerry and UK energy and business secretary Grant Shapps were in the audience. The UAE wants COP28 to focus on scaling up wind and solar power as well as hydrogen. It should also be about ensuring poorer countries get financing to develop such technologies and compensation for climate change caused by industrialized nations, al-Jaber said. “We want it to be a COP for all,” he said. “We want it to be a COP that moves from goals to getting it done across mitigation, adaptation, finance and loss and damage.” The UAE pumps about 3.4 million barrels of crude a day, making it the biggest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia and Iraq. Those countries argue fossil fuel producers must have a greater say in climate talks. They have also blamed the surge in oil and gas prices in the past two years on a lack of investment on such fuels in the west.
  • 4. Copyright © 2022 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 endeavors 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 Qatar, UAE energy ministers say gas will be needed for long time Reuters + NewBase The world will need natural gas for a long time and more investment is required to ensure supply security and affordable prices during the global energy transition, energy ministers of Qatar and the United Arab Emirates said on Saturday. Saad al-Kaabi, Qatari state minister for energy, told the Atlantic Council Global Energy Summit that a mild winter in Europe had seen prices come down, but that volatility would remain "for some time to come" given that there was not much gas coming into the market until 2025. "The issue is what's going to happen when they (Europe) want to replenish their storages this coming year and the next year," he said, adding that energy producers were concerned about demand destruction. Qatar is one of the world's top producers of liquefied natural gas. The UAE is an OPEC oil producer that is sharpening its focus on the gas market as Europe seeks to replace Russian energy imports after supply cuts since Western sanctions were imposed on Moscow over its invasion of Ukraine. The Qatari minister said he believed that Russian gas would eventually return to Europe. UAE Energy Minister Suhail al-Mazrouei, speaking on the same panel in Abu Dhabi, agreed that "for a very long time, gas will be there" and that while more renewable energy would be installed, more investment was needed in gas as a base load. "The whole world needs to think of resources and how to enable companies to produce more gas to make it available and affordable," Mazrouei said. Kaabi said gas "is not a transition fuel" but a destination fuel, and that it was unfair for some in the West as part of its green energy push to say African countries should not be drilling for oil and gas when it was important for their economies and the world needed more supply. Mazrouei said the "unclear" strategy of many countries made it difficult for them to commit to long- term gas contracts which in turn made it hard for energy companies to secure financing to invest in developing production capacity.
  • 5. Copyright © 2022 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 endeavors 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 Oman Shell signs agreements for syngas and LNG offtake; takes stake in green hydrogen project. Reuters + Sowmya Sundar, Zawya Shell Oman has signed a Letter of Intent with Oman’s Ministry of Energy and Minerals to explore the deployment of Liquified Synthetic Gas (LSG) in Oman. LSG is produced when renewable hydrogen is combined with captured carbon dioxide to produce natural gas which is then liquefied. This low-carbon gas can be directly introduced to existing gas networks and infrastructure, including LNG plants such as Oman LNG, all the way to the point of use, said Walid Hadi, Senior Vice President, Country Chair, Shell Oman in a Linkedin post. In another agreement, Shell Oman has taken a 35 percent stake in Green Energy Oman (GEO), the consortium that is developing the country’s largest renewable green hydrogen project in Al Wusta and Dhofar governorates, Oman. The hydrogen will be produced from up to 25 gigawatts of solar and wind energy. Other members of this consortium include OQ (through its subsidiary Oman Energy Development), InterContinental Energy, EnerTech Holding Company, KSCC and Golden Wellspring Wealth for Trading. Worley is providing concept feasibility study services for the project. The third agreement pertains to a long-term LNG offtake agreement. Shell Oman has signed a term sheet with Oman LNG for the purchase of 0.8 million metric tonnws per year of liquefied natural gas (LNG) for a period of 10 years, starting from 2025. Furthermore, Oman Shell entered into a Letter of Intent (LoI) with the Ministry of Energy and Minerals to explore opportunities for the production of liquefied synthetic gas (LSG) in the country. LSG is produced when green hydrogen is combined with captured carbon dioxide to produce natural gas which is then liquefied. This low-carbon gas can be directly introduced to existing gas networks and infrastructure, including the liquefied natural gas stations of the Oman LNG company, all the way to the end user. At the end of 2022, Oman LNG signed long-term agreements with three Japanese companies – Itochu Corporation, JERA and Mitsui & Co – to deliver LNG at a total volume of 2.35 mtpa starting from 2025.
  • 6. Copyright © 2022 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 endeavors 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 US Even With the Electric Car Boom, the Need for Oil Is Climbing Analysis by Javier Blas | Bloomberg It’s the battle that will define the US oil market this decade. On one side, the combination of rising sales of electric vehicles, more efficient conventional cars, and the impact of working-from-home is pushing down gasoline demand; on the other, the ever-growing popularity of plastics combined with a growing population is boosting consumption of petrochemicals. In short, one can call it “Tesla against the plastic industry.” If Tesla and its electric-vehicle rivals win the battle, oil demand will peak soon, helping to meet global climate change goals by reducing consumption of fossil fuels. For now, however, plastics have the upper hand, keeping overall oil demand growing. On Tuesday, the Energy Information Administration, the statistical arm of the US Department of Energy, released its first forecast for the 2024 oil market. The look is tentative but provides early clues about its direction. Every January, the EIA is the first of the three major public bodies to publish its outlook for the next year. The International Energy Agency will release its take in June, and OPEC will follow up a month later. The EIA analysis shows that US oil demand will rise next year to 20.63 million barrels per day, surpassing the most recent peak, set in 2018 and 2019, and within a whisker of the all-time high set between 2004 and 2007 when demand averaged 20.7-20.8 million barrels per day just before the onset of the global financial crisis. Strikingly, American oil demand will rise to near-record levels in 2024 despite a significant drop in gasoline use, which in the past was the engine of US oil consumption. It’s an indication that electric- vehicle sales would need to grow significantly before they force overall oil demand down.
  • 7. Copyright © 2022 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 endeavors 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 The EIA estimates that by 2024, American gasoline demand will drop to 8.73 million barrels per day, or about 600,000 barrels a day lower than it was in 2018. That’s equal to the total oil consumption of a medium-sized European nation like Belgium. All suggest that the heyday of American gasoline demand is in the rear-view mirror. But the fall would be more than offset by rising consumption of the feedstock used in the petrochemical industry to produce plastics, which will hit a record high of about 4 million barrels per day by 2024, up more than 700,000 barrels from 2018. The US trends are mirrored elsewhere in the world, with plastic consumption soaring in emerging markets like India and China. The EIA anticipates that global oil demand will hit an all-time high of 102.2 million barrels a day in 2024, up 1.7 million barrels a day from 2023 and above the pre-Covid peak set in 2019 of 100.8 million barrels a day. In projecting another year of strong consumption growth, the EIA is further postponing peak oil demand.If a peak in oil demand is near, it’s not showing up in any contemporaneous data or reliable short-term forecast. Only long-term models — rather than forecasts — point to a peak within the next few years. Everything else shows steady-as-it-goes consumption. The 2024 EIA forecast is a case in point: Not only is global oil demand heading toward another record, but the rate of growth isn’t moderating.
  • 8. Copyright © 2022 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 endeavors 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 Europe Still Winning on LNG Imports Even as Prices Slump Bloomberg + NewBase Europe is still awash with liquefied natural gas despite a crash in benchmark prices as demand in Asia remains lackluster. A few weeks ago, it became more profitable to deliver US LNG to Asia than to Europe, but that premium has been insufficient to lure cargoes away from a region that’s been flooded with the fuel in recent months. Some 68% of the LNG exported by the US last week is headed to Europe, while 27% is en route to Asia, according to Laura Page, a senior analyst at data and analytics firm Kpler. Despite speculation that Asian demand will rise after China scrapped strict Covid restrictions, the country’s reopening has been bumpy, infections are still rife, and there’s the Lunar New Year ahead. “Looking at truck LNG prices in China, which is a good indication of industrial demand — it’s going down, there is no rebound in activity yet,” said Arun Toora, an analyst at researcher BloombergNEF. “You need to go past the holiday season in China first.” LNG deliveries to Europe have helped ease an energy crisis this winter after Russian piped supply slumped. But even when demand is tepid on both continents, Europe has long been considered the market of last resort, with traders standing a good chance of finding buyers in Spain, France or the UK, home to extensive import infrastructure and trading hubs. Gas inventories in Asia — as in Europe — are currently healthy, while the weather hasn’t been cold enough to drive up consumption. Much depends on temperatures for the rest of the winter in both regions, and on industrial demand in China amid its emergence from Covid. Traders considering a voyage of at least 20 days from the US to Asia need to be sure of a reliable market. “If there is a sudden cold snap in Asia, a considerable amount of spot cargoes could divert from Europe, but there are no signs of colder weather there yet,” Toora said. “You wouldn’t see Asian demand picking up substantially unless prices fall to $15-$18 per million British thermal units.” To be sure, Europe’s LNG imports have softened in recent weeks, reflecting lackluster consumption and sliding prices, but they’re still above the seasonal norm. Yet Morgan Stanley, which has slashed its gas-price forecast by half, said European prices don’t need to be anywhere near the peaks of last August to attract shipments. There are some diversions of deliveries, ship-tracking data show. One vessel appears to be rerouting from northwest Europe to Asia, and another last week switched destinations to sail to Turkey instead of the UK. But many tankers are staying close to western Europe — positioning that will also help them once the Freeport LNG facility in the US eventually restarts.
  • 9. Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 NewBase January 14 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil posts biggest weekly gain since October Reuters + NewBase Oil prices settled more than a dollar a barrel higher on Friday, notching their biggest weekly gains since October, as the U.S. dollar dropped to a seven-month low and more indicators pointed toward growing demand from top oil importer China. Brent crude futures settled at $85.28 a barrel, up by $1.25, or 1.5%. West Texas Intermediate (WTI) crude futures rose for the seventh-straight session to settle at $79.86 a barrel, up by $1.47, or 1.9%.Brent gained 8.6% this week, while WTI rose by 8.4%, recouping most of the previous week's losses. The U.S. dollar index for the first time in 2-1/2 years, feeding hopes the Federal Reserve would slow its rate hikes. A weaker greenback tends to boost demand for oil, making it cheaper for buyers holding other currencies. Oil price special coverage Summary • Global benchmarks gain over 8% for the week • U.S. dollar hits seven-month low • Data on Thursday showed U.S. inflation fell in Dec. • Analysts bullish on China demand indicators
  • 10. Copyright © 2022 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 endeavors 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 Recent Chinese crude purchases and a pick-up in road traffic in the country are also fuelling hopes of a demand recovery in the world's second-largest economy following the reopening of its borders and easing of COVID-19 curbs after protests last year. "Everyone is looking at Chinese mobility indicators and they point upward, indicating recovering oil demand and supporting prices," said UBS analyst Giovanni Staunovo. "Next thing to watch is if this translates also into higher Chinese crude imports and if energy agencies (IEA, OPEC) revise upwards their (first quarter) demand estimates," Staunovo said. The Organization of the Petroleum Exporting Countries and allies, including Russia, will meet in February to assess market conditions, and there is some concern that the group could cut oil output again to lift prices after recent declines. "We have the seven-day winning streak under our belt... but we are still nowhere near where we were the last time OPEC+ folks cut production," Mizuho analyst Robert Yawger said. OPEC+ had announced a 2-million-barrel-per-day cut to production in October as global oil prices fell under $90 a barrel.
  • 11. Copyright © 2022 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 endeavors 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 Russia Oil-Price Cap Defies Skeptics With So Far, So Good Start Christopher Condon – Bloomberg Once seen as misguided and unworkable, the US-conceived price cap on Russian crude oil exports is showing signs of success — for now — since it was implemented late last year. Moscow’s budget deficit widened to a record amid the slump in prices, with Russian grades falling faster than global prices as supply hasn’t been severely disrupted, the two key aims of the idea that was hatched by the US Treasury Department last year as part of the global response to President Vladimir Putin’s invasion of Ukraine. “If the goal of Western powers was to have their cake and eat it too, then the cap is presently working as planned,” said Raad Alkadiri, managing director for energy, climate and resources at Eurasia Group in Washington. “Russian flows have been diverted but not disrupted for the most part, and prices have not risen.” Crude shipments out of two major western Russian ports averaged just under $40 a barrel during the first days of January, according to data from Argus Media, which gathers prices in the physical market. That’s down more than 35% from the November average and roughly 50% from June. Over those same periods, Brent crude, a global benchmark, fell about 15% and 37%, respectively. That suggests weaker demand from a slowing global economy can’t fully account for the drop in Russian prices, and its export volume hasn’t slipped enough that lower supply is pushing international prices back the other way. The US Treasury’s deputy secretary, Wally Adeyemo, said he and his colleagues were pleased with the results, but reacted cautiously when asked if the plan could be declared a success. “Until the invasion of Ukraine is done, we’re not going to declare anything,” he said in an interview.
  • 12. Copyright © 2022 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 endeavors 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 European Union’s decision last June to stop importing almost all seaborne Russian oil from Dec. 5 forced Moscow to look elsewhere to sell about 2 million barrels a day. While it found outlets in China, India and Turkey, that concentrated group of buyers seized upon their leverage to secure deep discounts. On top of that, Russia has been forced to absorb the extra costs for the longer shipping distances. “What has hurt Russia is having to swing cargoes from Europe to Asia and be forced to accept the discount,” said Paul Horsnell, head of commodities research at Standard Chartered Bank in London. “Lack of access to Europe is what has mattered, not the price cap.” The cap was designed as a way to partly undercut EU sanctions, which the US feared might backfire by cutting supply. In addition to the embargo on Russian oil, the EU and UK barred their companies from offering key services to any shipper carrying Russian oil anywhere in the world, which included insurers who dominate the global market for underwriting oil tankers. That set off alarm bells in Washington, where US Treasury officials feared the sanctions might trap 2 million to 3 million barrels a day inside Russia, sending global prices spiking well above $100 a barrel. Officials even worried that higher prices on lower output could end up benefiting Russia while driving the rest of the world into recession. Against that worst-case scenario, the cap was conceived as a release valve to allow Russia continued access to EU and UK shipping services so long as cargoes were priced under an agreed cap, which was ultimately set at $60. The US had to charm, plead and bully Group of Seven governments and then the EU into backing the scheme just in time for the Dec. 5 deadline. To be sure, Russian export volumes fell in the weeks following Dec. 5, but bad weather, port maintenance and a shift by Russia to exporting refined products may explain much of that. The cap advocates also got lucky. A cooling global economic outlook combined with the leverage already applied by Russia’s few buyers meant that Moscow was already selling much of its crude below the $60 cap before it even came into effect. For shipments priced over the cap, mostly coming from Russia’s eastern ports, Russia and its buyers have apparently been able to line up shipping and service providers from outside the EU and UK. Still, the US and its allies must navigate an uncertain path forward for the cap, beginning with a review of the crude price, which begins in January, and related caps for refined fuels that must be agreed by Feb. 5. Some EU members are already clamoring to tighten the screws on Moscow by lowering the crude cap, but squeezing too hard risks pushing Putin to cut production in an attempt to provoke a price spike the US has always sought to avoid. Any change to the cap would require a unanimous vote by the EU’s 27 member governments, according to an EU official. Adeyemo wouldn’t comment on whether the US will want to adjust the cap. While one aim of the cap, he said, is to reduce Moscow’s revenue, the US also wants to make sure Russia has a continued incentive to export its oil. “We feel at the moment the $60 amount that we’ve set is accomplishing our two goals,” he said.
  • 13. Copyright © 2022 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 endeavors 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 NewBase Specual Coverage The Energy world –January -01 -2023 CLEAN ENERGY Hydrogen advances shifting towards clean energy: IEA PARIS, 0 hours, 55 minutes ago Hydrogen technology development is shifting towards low-emissions solutions such as electrolysis, according to a joint study of patents by the European Patent Office (EPO) and the International Energy Agency (IEA). The report is the first of its kind and uses global patent data to provide comprehensive up-to-date analysis of innovation in all hydrogen technologies. It covers the full range of technologies, from hydrogen supply to storage, distribution and transformation, as well as end-use applications. “Hydrogen from low-emissions sources can play an important role in clean energy transitions with potential to replace fossil fuels in industries where few clean alternatives exist, like long-haul transport and fertilizer production,” said IEA Executive Director Fatih Birol.
  • 14. Copyright © 2022 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 endeavors 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 “This study shows that innovators are responding to the need for competitive hydrogen supply chains, but also identifies areas – particularly among end-users – where more effort is required. We will continue to help governments spur innovation for secure, resilient and sustainable clean energy technologies.” “Harnessing the potential of hydrogen is a key part of Europe’s strategy to achieve climate neutrality by 2050,” said EPO President António Campinos. “But if hydrogen is to play a major role in reducing CO2 emissions, innovation is urgently needed across a range of technologies. This report reveals some encouraging transition patterns across countries and industry sectors, including Europe’s major contribution to the emergence of new hydrogen technologies. It also highlights the contribution of start-ups to hydrogen innovation, and their reliance on patents to bring their inventions to market.” The study presents the major trends in hydrogen technologies from 2011 to 2020, measured in terms of international patent families (IPFs), each of which represents a high-value invention for which patent applications have been filed at two or more patent offices worldwide. The report finds that global patenting in hydrogen is led by the European Union and Japan, which account for 28% and 24% respectively of all IPFs filed in this period, with significant growth in the past decade. The leading countries in Europe are Germany (11% of the global total), France (6%), and the Netherlands (3%).
  • 15. Copyright © 2022 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 endeavors 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 The US, with 20% of all hydrogen-related patents, is the only major innovation centre to see international hydrogen patent applications decline in the past decade. International patenting activity in hydrogen technologies remained modest in South Korea and China but is on the rise. In addition to these five main innovation centres, other countries generating significant volumes of hydrogen patents include the United Kingdom, Switzerland and Canada. Hydrogen production technologies accounted for the largest number of hydrogen patents over the 2011-2020 period. While global hydrogen production is currently almost entirely fossil-based, the patenting data shows that low-emissions innovations generated more than twice the number of international patents across all segments of the hydrogen value chain than established technologies. Technologies motivated by climate concerns accounted for nearly 80% of all patents related to hydrogen production in 2020, with growth driven chiefly by a sharp increase of innovation in electrolysis. The most innovative regions are now competing to host the first industrial roll-out phase, with the data suggesting that Europe is gaining an edge as a location for investment in new electrolyser manufacturing capacity. Among hydrogen’s many potential end-use applications, the automotive sector has long been the focus for innovation, and patenting in this sector continues to grow, led mainly by Japan. Similar momentum is not yet visible in other end-use applications, despite concerted policy and media attention in recent years on hydrogen’s potential to decarbonise long-distance transport, aviation, power generation and heating. National net zero emissions NZE pledges cannot be achieved without addressing unabated fossil fuel use in these sectors. One bright spot is a recent uptick in patenting for the use of hydrogen to decarbonise steel production – possibly in response to the post-Paris Agreement consensus that the sector needs radical solutions to cut emissions quickly.
  • 16. Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 For established hydrogen technologies, innovation is dominated by the European chemical industry, whose expertise in this sector has also given it a head start in climate-motivated technologies such as electrolysis and fuel cells. Automotive companies are also active, and not just for vehicle technology. Behind them, universities and public research institutes generated 13.5% of all hydrogen-related international patents in 2011- 2020, led by French and Korean institutions, with a focus on low-emissions hydrogen production methods such as electrolysis. The study finds that more than half of the $10 billion of venture capital investment into hydrogen firms in 2011-2020 went to start-ups with patents, despite them making up less than a third of the start-ups in the report’s data set. Holding a patent is a good indicator of whether a start-up will keep attracting finance: more than 80% of late-stage investment in hydrogen start-ups in 2011-2020 went to companies that had already filed a patent application in areas such as electrolysis, fuel cells, or low-emissions methods for producing hydrogen from gas.
  • 17. Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 NewBase Energy News 13 January 2023 - Issue No. 1583 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.
  • 18. Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18
  • 19. Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19
  • 20. Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20