Newbase 17 february 2020 energynewsissue 1317 by khaledalawadi

Copyright © 2020 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 17 February 2020 - Issue No. 1318 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Kuwait-Saudi ‘neutral’ zone to start pumping this month
Gulf News + NeeBase
The 'neutral zone' between Kuwait and Saudi Arabia features two fields, one of which is the Khafji
offshore field. Production will resume here later this month.Image Credit: Credit: Kuwait Gulf Oil
Company
Kuwait (Bloomberg): Kuwait and Saudi Arabia will resume oil production from their shared fields this
month - more than five years after a dispute halted supply.
The Khafji field in the so-called “neutral zone” will start output by the end of February, while
operations will resume at Wafra from Sunday with exports likely flowing within three months, said
Hashem Hashem, CEO of Kuwait Petroleum Corp. The restart comes at a critical time as the
projects will bring additional production capacity to an oil market that’s already dealing with excess
supply as the deadly coronavirus hits demand.
The onshore Wafra and offshore Khafji are also important because US sanctions on Iran and
Venezuela have tightened the supply of heavy, high-sulfur crude, precisely the kind of oil that the
fields produce. US diplomats had been pressing both sides to reach an agreement.
www.linkedin.com/in/khaled-al-awadi-38b995b

But Saudi Arabia and Kuwait, both important OPEC members, have said they are unlikely to add
significant amounts of crude within the duration of the group’s current deal to curb output, which
runs until the end of March.
Influential output
The neutral zone’s oil fields can pump about 500,000 barrels a day - more than the
production of each of the three smallest members of the Organization of Petroleum
Exporting Countries last month. The two fields could reach their full capacity by the end
of this year, Hashem said.
Saudi Arabia and Kuwait reached an agreement in December to resume output in the
barren strip of desert straddling their nations. Khafji was shut down in 2014 after a spat
between the countries.
The disagreement escalated over to the Wafra field, when Saudi Arabia extended the
project’s original 60-year concession, giving a unit of Chevron Corp. rights there until
2039. Kuwait was unhappy over the announcement and claims Riyadh never consulted
it about the extension.
Chevron, through its subsidiary Saudi Arabian Chevron Inc., “has now embarked on a
series of pre-startup activity, which includes efforts to ensure its workforce is ready to
safely restart operations and then production,” Sally Jones, a company spokeswoman,
said in a statement in response to the resumption of the Wafra field.
A MASSIVE SPAN
The neutral zone, spanning more than 5,700 square kilometers, was created by a 1922
treaty between Kuwait and Saudi Arabia. In the 1970s, the two Gulf states agreed to
divide the area and incorporate each half into their respective territory while still sharing
and jointly managing the zone’s petroleum wealth.

Egypt: Wintershall Dea signs concession agreement for East
Damanhour exploration,,,,, Source: Wintershall Dea
On the eve of the Egypt Petroleum Show 2020 (EGYPS 2020), Wintershall Dea and Egyptian
Minister of Petroleum H.E. Tarek El Molla have signed the concession agreement for the East
Damanhour block.
The block is located to the west of Wintershall Dea’s Disouq development in the onshore Nile Delta.
During a first exploration phase of three years, starting in 2020, Wintershall Dea is planning to drill
several exploration wells.
'We are excited to get back into exploration in Egypt,' says Wintershall Dea CEO Mario
Mehren. 'Wintershall Dea has a 45-year history in Egypt. Alongside recent investments in our
operated projects at Disouq and in the Gulf of Suez, our exploration plans are a further sign of our
commitment to the country.'
Wintershall Dea, through its predecessor Dea, started operations in Egypt in 1974. The country is
a core area for the company. It produces gas at Disouq in the onshore Nile Delta, gas and oil in the
Gulf of Suez, and gas and condensate from the offshore West Nile Delta project, operated by BP.
In recent years Wintershall Dea has invested significantly in its operated projects in Egypt.
Comprehensive work programs at Disouq and in the Gulf of Suez have led to a significant
improvement of production, as well as maintaining asset integrity in the mature Gulf of Suez sites.
Wintershall Dea will now begin a three-year exploration phase in the East Damanhour block. Sameh
Sabry, Wintershall Dea’s Managing Director for Egypt, says: 'Over the years we have developed
extensive knowledge and experience in this area. This, and the block’s proximity to our existing

Disouq infrastructure, means that we are well placed for a quick and cost optimized development of
any discovered volumes.'
Wintershall Dea sees a strong future for the E&P sector in Egypt. 'EGYPS 2020 comes at an exciting
time for the industry in Egypt' says Mario Mehren, CEO of Wintershall Dea. 'Great potential is seen
in the Eastern Mediterranean region when it comes to undiscovered gas resources.
It’s an interesting region and Egypt is well-positioned to serve as an Energy Hub due to its
established export facilities, which offer convenient export routes. Wintershall Dea is close to these
developments, among others as an active member of the East Med Gas Forum’s Industry Advisory
Committee.'
Background
The East Damanhour block was awarded as part of the Egyptian Natural Gas Holding Company
(EGAS) 2018 International Bid Round. The block is Block 10 on the map below.
Wintershall Dea, through its predecessor Dea, started operations in Egypt in 1974. The country is
a core area for the company. It produces gas at Disouq in the onshore Nile Delta, gas and oil in the
Gulf of Suez, and gas and condensate from the offshore West Nile Delta project, operated by BP.
In recent years Wintershall Dea has invested significantly in its operated projects in Egypt.
Comprehensive work programs at Disouq and in the Gulf of Suez have led to a significant
improvement of production, as well as maintaining asset integrity in the mature Gulf of Suez sites.
Wintershall Dea will now begin a three-year exploration phase in the East Damanhour block.
Sameh Sabry, Wintershall Dea’s Managing Director for
Egypt, says: “Over the years we have developed extensive
knowledge and experience in this area. This, and the block’s
proximity to our existing Disouq infrastructure, means that
we are well placed for a quick and cost optimized
development of any discovered volumes.”
Wintershall Dea sees a strong future for the E&P sector in
Egypt. “EGYPS 2020 comes at an exciting time for the
industry in Egypt” says Mario Mehren, CEO of Wintershall
Dea. “Great potential is seen in the Eastern Mediterranean
region when it comes to undiscovered gas resources. It’s an
interesting region and Egypt is well-positioned to serve as an
Energy Hub due to its established export facilities, which
offer convenient export routes. Wintershall Dea is close to
these developments, among others as an active member of
the East Med Gas Forum’s Industry Advisory Committee.”
EGYPS 2020 takes place from 11th-13th February at the
Egypt International Exhibition Centre. Wintershall Dea’s
CEO, Mario Mehren, will take part in a Global Business Leaders panel session on the topic: “The
importance of forward-looking partnerships to deliver growth aspirations.” The panel takes place on
Tuesday 11th February, at 15.30.
Considered one of the region’s most influential events, EGYPS is set to host over 450 exhibiting
companies and to welcome 30,000 attendees from around the world. Wintershall Dea’s stand can
be found at 3B60.

Pakistan: Jura Energy starts commercial production from
Badin IV South Block …Source: Jura Energy
Jura Energy has announced that, after successful testing and commissioning of production facilities,
commercial production has commenced from the Ayesha, Aminah and Ayesha North leases in
the Badin IV South Block.
The current production from the Badin IV South leases comprises of approx. 22 MMcf/d (net to Jura
6.05 MMcf/d) of Conventional Natural Gas ('CNG') and 174 Bbl/d (net to Jura 46.85 Bbl/d) of Natural
Gas Liquids ('NGLs') at an average NGL yield of approx. 7.90 Bbls/MMcf. The CNG production from
the Badin IV South leases is being sold to Sui Southern Gas Company, whereas the NGLs
production is sold directly to refineries in Pakistan.
The sale price of CNG and NGLs production from Badin IV South leases shall be determined under
the Pakistan Petroleum Exploration and Production Policy 2012, using prescribed formulae for CNG
and NGLs, based on the carriage and freight price of a basket of crude oil ('C&F Price') imported
into Pakistan.
Based on the C&F Price of US$ 53/Bbl, the CNG and NGLs production from Badin IV South leases
is expected to be entitled to a price of approx. US$ 4.54/MMBtu and US$ 48.45/Bbl respectively.
The actual realized price may vary due to change in applicable C&F Price.
The Badin IV South leases cover an area of approx. 39.49 sq kms and are located in the districts of
Badin and Sujjawal, in the Sindh Province of Pakistan.
Jura holds a 27.5% working interest in the Badin IV South Block, which is operated by Petroleum
Exploration (Private) Limited.

Oman: Eni begins drilling Oman’s first deepwater offshore well
Oman Oserver Conrad Prabhu
In a move that bodes well for efforts to harness Oman’s untapped offshore hydrocarbon potential, the
local subsidiary of global energy major Eni has commenced drilling of what is billed as the first deep-
water well in the Sultanate’s history.
A drillship chartered by Eni Oman commenced drilling activities in Block 52, a vast deepwater
concession that extends off the Sultanate’s southern and south-eastern seaboard, a high-level executive
said.
“Yes, I can confirm that drilling operations started on February 10 of this year,” said Salvatore Giammetti,
Managing Director —Eni Oman. “This is the first offshore deepwater well in the history of Oman’’.
In remarks to journalists on the sidelines of a press briefing on the upcoming Oman Petroleum and
Energy Show 2020 (OPES), Giammetti said the maiden well is a testament to Eni’s commitment to the
Sultanate’s hydrocarbon sector.
“In the last two years, we have signed more than 16 (Oil & Gas) agreements in the Middle East. But
Block 52 has been the first, and as a matter of fact, Oman was the first country in the region with which
we have signed an agreement (following Eni’s return to this region after a long gap).”
Eni’s decision to drill its first deepwater offshore well — “against a very tight schedule” — was also aimed

at demonstrating the energy major’s “fast-track approach” in the delivery of any exploration project, said
Giammetti.
The Pacifica Bora, a drillship owned and operated by Pacific Drilling, is currently drilling in a water depth
of around 880 metres in Block 52, the Managing Director said.
Eni Oman is the operator of Block 52 — a massive 90,790 sq kilometre concession — with a 55 per cent
stake. Qatar Petroleum holds a 30 per cent interest, while Oman Oil Company Exploration & Production
(OOCEP) — the upstream investment arm of OQ (formerly Oman Oil & Orpic Group) — owns the
balance 15 per cent.
Although largely unexplored, Block 52 is believed to be prospective for hydrocarbon resources based
on evidence of the presence of petroleum systems in the block. Water depths range from 10 metres
near the coast to 3,000 metres at the deep end, underscoring the challenges for Eni in the exploration
and production, if any, of subsea resources.
Eni also has investments in two other blocks in the Sultanate.
Eni and BP each hold a 50 per cent interest in Block 77, covering a total area of 2,734 sq km in central
Oman.
Eni is the operator during the exploration phase of an EPSA pact signed with the Omani government.
Eni (as operator with 90 per cent interest) and OOCEP (10 per cent) have also entered into an
Exploration and Production Sharing Agreement (EPSA) for Block 47, an onshore block in Al Dakhiliyah
Governorate covering an area of 8,524 sq km.
Saudi Arabia plans to export gas and petrochemicals soon

Saudi aspires to make an ideal exploitation of hydrocarbons
REUTERS+ © Copyright 2020 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Saudi Arabia, the world's biggest crude exporter, plans to add gas and petrochemicals to its slate
of exports and will soon make a major announcement on the topic, the Kingdom’s energy minister
said on Sunday.
"Soon you will hear about the ability of the Kingdom to be a gas exporter and a petrochemical
exporter," Prince Abdulaziz Bin Salman said in a televised speech at the inauguration of SABIC
2020 Conference in Jubail Al-Sinaia (Industrial City).
The circular carbon economy is a system where carbon emissions are reduced, reused, recycled
and removed (4R). Such a closed-loop system, inspired by how nature works, may help restore the
balance of the carbon cycle.
Prince Abdulaziz added that the main objective for setting up the Ministry of Energy is to expand in
developing the sources of energy and create an integrated system from these sources. In turn,
these would provide the Kingdom with all its energy needs in the best manner to enable economic
transformation within the sphere of the Kingdom’s Vision 2030.
He said a national program would be announced in a couple of months according to an established
road map. It is related to the circular carbon economy in which several authorities will participate
including Saudi Aramco and SABIC.

He said that the Kingdom aspires to make an ideal exploitation of hydrocarbons. These include
using conventional and nonconventional resources from petroleum and gas, which will create a
qualitative change in the field of energy and the national economy in general.
Saudi Arabia has been ramping up exploration for gas to help feed an expanding industrial base
and to replace crude with gas in power generation. The Kingdom plans to produce 70% of its power
from gas and 30% from renewable energy, the minister has previously stated. Currently the country
burns mostly oil to produce power.
Last March, former Saudi oil minister Khalid Al-Falih announced the discovery of large amounts of
gas in the Red Sea, without specifying the amount found.
Saudi Aramco, the state-run energy giant that is the world's biggest oil producing company, had
output of 8.9 billion standard cubic feet/day of natural gas and 1 Bscf/d of ethane in 2018. Its gas
reserves at the end of 2018 stood at 233.8 Tscf.
At the SABIC conference, the minister said the objective for widening the scope of the ministry’s
work is to enable the Kingdom to become a pioneer in all sources of energy needed by the local
and global economy in the future.
He added: “The ideal energy mix in the Kingdom necessitates introducing a big percentage of
renewable energy in it. If we compare this with the existing focus on raising the percentage of local
content, it will catalyze the sector toward more innovations and plastic uses from renewable energy
components.”
Prince Abdulaziz stressed that this is important so as to succeed globally in facing the climate
change challenges, waste management and many other challenges. These will make the Kingdom
more comfortable to the global trends in terms of the concepts of environment, climate change and
sustainable development.

NewBase February 17-2020 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices steady as coronavirus-related demand concerns weigh
Reuters + NewBase
Oil prices were little changed on Monday as concerns of falling fuel demand caused by the economic
fallout from the coronavirus outbreak in China was offset by expectations that output cuts from major
producers will tighten crude supply.
Brent crude LCOc1 was at $57.27 a barrel, down 5 cents by 0541 GMT after rising 5.2% last week,
the biggest weekly gain since September 2019. U.S. West Texas Intermediate crude CLc1 rose 8
cents to $52.13 a barrel, after a 3.4% gain last week.
Oil price special
coverage

Japan, the world’s fourth-largest oil consumer, reported an economic contraction of 6.3% for the
October to December period and there is an expectation of a further contraction in the January to
March quarter because of the contagion. Singapore, whose trade-dependent economy is a
barometer for the region, also warned of the potential for a recession this quarter because of the
outbreak.
“Oil remains acutely vulnerable to both excess supply and the economic coronavirus-induced
slowdown in China and other parts of Asia,” Jeffrey Halley, a senior market analyst at OANDA in
Singapore said.
The International Energy Agency (IEA) said last week the virus is set to cause oil demand to fall by
435,000 barrels per day (bpd) in the first quarter of 2020 from the same period a year ago, in what
would be the first quarterly drop since the financial crisis in 2009.
Analysts at Capital Economics said over the weekend that it is too soon to start assessing the
longer-term economic fallout from the epidemic and investors will be looking for February
manufacturing data, particularly in Asia, for an early indication of how significantly the virus is
affecting global manufacturing supply chains.
“We expect the data to be weak, but if they are better-than-expected then industrial commodity
prices could see further gains,” the analysts said.
Oil did rise last week for the first time since early January on optimism that Chinese economic
stimulus measures amid the outbreak could lead to a recovery in oil demand in the world’s largest
importing country.
There are some indications of prompt demand for oil as the front-month Brent futures market has
shifted to a backwardation, when near-term prices are higher than later-dated prices, from a
contango. The April to May spread LCOc1-LCOc2 is now at a premium of 19 cents a barrel after
reaching a discount of as low as 33 cents on Feb. 7.
Investors are also anticipating that the Organization of the Petroleum Exporting Countries (OPEC)
and its allies, including Russia, will approve a proposal to deepen production cuts to tighten global
supplies and support prices.
The group, also known as OPEC+, has an agreement to cut oil output by 1.7 million bpd until the
end of March. A technical committee has recommended the group reduce production by another
600,000 bpd because of the impact from the coronavirus.
OPEC Underestimates China Virus
The oil cartel should get realistic about the potential impact the Covid-19 virus will have on China's
economy, and the rest of the world. By Julian Lee
OPEC is underestimating the global ripple effects from the virus outbreak in China.
The Covid-19 virus is a human tragedy for many who have been affected by it and it’s having a
profound impact on the lives of a large part of the Chinese population. The impact on the rest of the
world of the disease’s dislocation of the Chinese economy is yet to be fully felt. Forecasts of only a
modest impact on oil demand worldwide are far too optimistic.

A comparison of the latest forecasts from the world’s three big oil agencies — the International
Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum
Exporting Countries — highlights the huge uncertainty that exists over the virus’s repercussions
for oil demand.
As may be expected for a body representing oil producers, OPEC sees the impact as minimal,
having just cut its first-quarter forecast for global oil demand by only 400,000 barrels a day. That
looks like wishful thinking. The IEA’s revision is three times as big, and if its forecast bears out, it’s
deep enough to tip the world into its first year-on-year drop in demand in more than a decade.
Demand Revisions
The IEA has slashed its 1Q20 global oil demand forecast by 1.3 million barrels a day - three times
as much as the revision made by OPEC
Source: Bloomberg, IEA, EIA, OPEC
China’s own oil consumption is down sharply as factories stay closed and travel restrictions remain
in place even after the extended Lunar New Year holiday comes to an end. Congestion on roads in
major cities is far below normal levels.
The chart below shows journey times in Shanghai, and other Chinese cities mirror that pattern. My
colleagues at BloombergNEF estimate that China’s jet fuel use is now down by 240,000 barrels a
day from pre-virus levels, with departures from Chinese airports down by around 80%.

Empty Roads
Roads in Shanghai remain empty even after the extended Lunar New Year holiday ends; the pattern
is similar in other cities
Source: TomTom
Note: Vertical axis shows the increase in travel time relative to uncongested times
Pollution statistics also capture the slowdown in economic activity and fuel use — something that
under different circumstances might be reason to celebrate.
China’s nitrogen dioxide emissions fell 36% in the week after the holiday from the same period a
year earlier, according to the Centre for Research on Energy and Clean Air.
A slowdown of 25%-50% across industrial sectors such as oil refining, coal-fired power generation
and steel production contributed to the drop, according to the independent research organization.
However, even as the Covid-19 virus hits consumption, the number of very large crude carriers
hauling cargoes to China has risen.
That’s because independent refiners are taking advantage of the drop in crude prices to fill their
storage tanks with cheap cargoes, even as they cut run rates.

That’s to some extent cushioning producers now. But those stockpiles will hit future demand for
crude from China’s teapot refineries, even after the immediate effect of the virus dissipates.
Crude to China
More supertankers are sailing to China despite the slowdown in consumption
Source: Bloomberg
At the same time, the Chinese government is in the process of building and filling a strategic
stockpile similar to the U.S. Strategic Petroleum Reserve, as it becomes ever more dependent on
imported supplies. It may also be using the price drop to boost purchases for long-term storage,
raising the risk that it will cut them again as prices recover, crimping demand for imported oil in the
future. By contrast, China’s state-owned processors are seeking to reduce the volumes
supplied under term contracts.
Even with reduced refinery runs, China is producing more fuel than it needs. Exports of gasoline
and diesel have soared, according to shipping intelligence firm Vortexa. But they aren’t finding ready
buyers. Most of these additional fuel exports are ending up in storage tanks in Singapore amid
subdued regional demand.
That brings us back to concerns over just how bad the reverberations from Covid-19 will be. The
China of 2020 is very different to that of 2003, and so today’s epidemic is likely to have a much
bigger international impact than the SARS virus to which it is most often compared. For a start,
China’s oil consumption now is more than twice what it was when SARS hit and last year the country
accounted for more than three-quarters of the growth in global oil demand, according to the IEA.
In the past 17 years, China has also become much more closely linked to the rest of the world
economy. Chinese travelers accounted for about 20% of total spending on tourism in 2018,
according to the United Nations World Tourism Organization, while China itself was the fourth most
popular destination. The virus will effect both of those figures in 2020.
The country has also become the center for producing and exporting both finished goods and
components. “All the signs are that there has been a major dislocation in global supply chains,”

according to Caroline Bain, chief commodities economist at Capital Economics. For some products,
“it’s only going to get worse in February data.”
Lack of parts from China has already forced Hyundai Motor Co. and Kia Motors to halt some car
production temporarily in South Korea, while Fiat Chrysler Automobiles NV plans to do the same in
Serbia. Just-in-time supply chains are starting to show their fragility. There will be more to come as
shipments from Chinese ports continue to suffer delays. South Korea’s government says economic
impact from the virus is “unavoidable.” The impact won’t stop at South Korea.
In that light, OPEC’s forecast that global oil demand will be cut by just 440,000 barrels a day in the
first quarter and by 230,000 barrels a day over the year as a whole looks like wishful thinking on the
part of producers. It is doing them no favors, though. A delay in reducing supplies will only make
the cuts needed later even deeper.

NewBase Special Coverage
The Energy world - Special Feb-13-02-2020
TOXIC AIR: THE PRICE OF FOSSIL FUELS
This report reveals the cost of air pollution from fossil fuels and highlights solutions that can protect
our health and benefit our communities. Air pollution generated from burning fossil fuels is attributed
to approximately 4.5 million premature deaths worldwide every year, the report shows.
Air pollution increases the incidence of chronic and acute illnesses and contributes to millions of
hospital visits and billions of work absences due to illness each year. It also damages our economies
and the environment.
For the first time, Greenpeace Southeast Asia and the Centre for Research on Energy and Clean
Air (CREA) have quantified the global cost of air pollution from fossil fuels, finding that it has reached
an estimated US$8 billion per day, or roughly 3.3% of the world’s GDP. While coal, oil and vehicle
companies continue to
push outdated
technologies, our health
and our communities are
paying the price.
Yet while toxic air pollution
is a global threat, the
solutions are increasingly
available and affordable.
Moreover, many of the
solutions to air pollution
are also the solutions to
climate change.
Renewable energy and
clean energy-powered
mass transport systems
not only reduce toxic air
pollution, but are also
critical to limiting the
global temperature
increase to below 1.5 °C from pre-industrial levels.
1. COSTS
Air pollution from burning fossil fuels, primarily coal, oil, and gas, is attributed to approximately 4.5
million premature deaths worldwide each year, a figure that exceeds global road accident deaths

by more than threefold.1 The incidence of stroke has been linked to PM exposure, and 600,000
deaths from stroke annually can be attributed to fossil fuel derived PM exposure.
Fossil fuel generated air pollution costs the world an estimated US$2.9 trillion per year, or roughly
3.3% of global GDP. Exposure to fossil fuel generated PM alone is attributed to an estimated 1.8
billion days of work absences due to illness each year worldwide, equating to approximate economic
losses of US$101 billion per year.
KEY FINDINGS
*Valuesshownrepresenta centralestimate, upperand lowerbounds ofa 95% confidence interval are provided in ‘Toxic air:
The price of fossil fuels’
** The cost of premature deaths relates to the number of years of life lost based on life expectancy
Air pollution is a major health threat to children, particularly in low income countries. Worldwide an
estimated 40,000 children die before their fifth birthday because of exposure to PM pollution from
fossil fuels. Air pollution from fossil fuel-related fine particulate matter (or PM) contributes to an
estimated 2 million preterm births each year.
NO2, a byproduct of fossil fuel combustion in vehicles, power plants and factories, is linked to
roughly 4 million new cases of asthma in children each year, with approximately 16 million children
worldwide living with asthma due to exposure to NO pollution from fossil fuels. Exposure to PM and
ozone from fossil fuels is attributed to roughly 7.7 million asthma-related trips to the emergency
room each year.

*Values shown represent a central estimate, upper and lower bounds of a 95% confidence interval are provided in ‘Toxic air: The price of
fossil fuels’
The economic cost of air pollution reflects pollution concentrations, population size and the
availability and cost of healthcare. We found that China Mainland, the United States and India bear
the highest costs from fossil fuel air pollution worldwide, at an estimated US$900 billion, US$600
billion and US$150 billion per year, respectively.
Yet while the cost of our reliance on coal, oil and gas continues to soar, life-saving alternatives are
increasingly widespread and affordable.
SOLUTIONS
Many solutions to fossil fuel air pollution are also the solutions to climate change. Clean transport
and renewable energy not only bring significant reductions in toxic pollutants such as PM, NO2 and
ozone, but also help to keep climate change-causing greenhouse gases out of the atmosphere.
Moreover, solutions to the air pollution crisis have been shown to bring significant financial returns.
According to a study published by the United States Environmental Protection Agency, every US$1
invested under the United States Clean Air Act yielded at least US$30 in return.
Likewise, a weekly car-free day in Bogota, Colombia yielded US$3.20 to US$4.30 in health benefits
for every US$1 invested in the program, according to a study published in the Journal of Urban
Health. The financial benefits of air pollution reduction are visible in high- and low-income countries
alike.
Transport
In cities around the world, private cars clog our streets with traffic, and diesel and petrol engines
spew dangerous pollutants, threatening our health.
A transition to affordable and carbon neutral transport is critical to ensuring healthy cities. Effective
public transport systems and good walking and cycling infrastructure enable mobility, reduce air
pollution and greenhouse gas emissions, and correlate with a decrease in rates of cardiovascular
disease, cancer, obesity, diabetes, mental illness, and respiratory disease.

One of the most important ways that governments can catalyze sustainable transport is to set a
phase-out date for diesel, gas, and petrol cars, and to introduce comprehensive and affordable
public transport, with safe walking and cycling infrastructure. We need to move away from private
cars as the primary mode of transport, and initiatives like car-free days allow us to imagine what our
cities would look like without traffic and pollution.
Clean energy
A phase-out of existing coal, oil and gas infrastructure is not only essential to avoid the worst impacts
of global climate change, but it brings major health benefits due to the associated reduction in air
pollution.
Research shows that the closure of coal-fired power plants can yield health benefits that exceed the
value of electricity generated.5 According to a study published in the Proceedings of the National
Academy of Sciences, an expanded fossil fuel phase-out and investment in clean energy sources
could reduce premature deaths related to air pollution worldwide by up to nearly two thirds.
The transition to renewable energy is essential both to prevent catastrophic climate change and to
protect our health. While fossil fuel companies continue to market outmoded technologies, our
communities pay the price. A just transition to renewable energy is possible, but we can’t afford to
delay it any longer.
METHODOLOGY
Researchers used published global datasets describing surface level concentrations of PM, ozone
and NO2 to perform a health impact assessment and subsequent cost calculation for the year 2018.
The health impacts are determined by combining pollutant concentration maps with country-level
health statistics and functions that describe the incidence of health outcomes for a given pollutant
concentration. The assessment incorporates recent research that quantifies the contribution of fossil
fuels to global air pollution levels and health impacts. Total health costs are then determined using
published estimates of the disease or impact specific cost, adjusted to the level of economic output
or income in each country.
Each day, fossil fuel air pollution costs $8 billion, study says
Thomson Reuters Foundation
Global air pollution from burning fossil fuels costs $8 billion each day, more than 3% of the value of
goods and services produced daily, as people fall sick, miss work and need medical care, according
to a report published on Wednesday.

Burning fossil fuels, primarily coal, oil and gas, causes about 4.5 million deaths every year
worldwide, more than three times the number of lives lost to road accidents, said the research by
Greenpeace Southeast Asia, the Jakarta-based regional arm of the global environmental group.
Calls for reducing the use of fossil fuels have grown around the world since nearly all nations agreed
in 2015 to address global warming by trying to limit rising temperatures, and growing devastation
caused by extreme weather, storms and wildfires has been widely attributed to climate change.
The economic cost of burning fossil fuels, and the resulting polluted air, is about $2.9 trillion per
year or 3.3% of global gross domestic product, Greenpeace said in its research.
“A phase-out of existing coal, oil and gas infrastructure is not only essential to avoid the worst
impacts of global climate change, but it brings major health benefits due to the associated reduction
in air pollution,” the report said.
Air pollution increases the risk of stroke, lung cancer and asthma, it said.
Exposure to fossil fuel-generated air pollutants is blamed for some 1.8 billion days of work absences
every year around the world, resulting in economic losses of about $101 billion, it said.
“What we’re showing here is that the current situation costs a huge amount of money,” Aidan
Farrow, an air quality scientist at Greenpeace International and lead author of the report, told the
Thomson Reuters Foundation.
“Relatively speaking, switching to renewable energy is cheaper than what we’re doing at the
moment.”
Getting hit the hardest with
high costs of fossil fuel air
pollution are the United
States, China and India, at
an estimated $900 billion,
$600 billion and $150 billion
per year, respectively, the
study estimated.
A report last year by the
United Nations’ International
Labour Organization found a
projected temperature rise of
1.5C by the end of the
century could lead to a 2.2%
drop in working hours in 2030
- equal to 80 million full-time
jobs - due to heat stress.
That would cost the global
economy $2.4 trillion, it said.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk
Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
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 a total of 28 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE operations
base , Most of the experience were spent as the Gas Operations Manager in
Emarat , responsible for Emarat Gas Pipeline Network Facility & gas
compressor stations . Through the years, he has developed great experiences
in the designing & constructing of gas pipelines, gas metering & regulating
stations and in the engineering of supply routes. Many years were spent
drafting, & compiling gas transportation, operation & maintenance agreements along with many
MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences
held in the UAE and Energy program broadcasted internationally, via GCC leading satellite
Channels.

NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 2020 K. Al Awadi

For Your Recruitments needs and Top Talents, please seek our approved agents below

Newbase 17 february 2020 energynewsissue 1317 by khaledalawadi

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Newbase 17 february 2020 energynewsissue 1317 by khaledalawadi

Similar to Newbase 17 february 2020 energynewsissue 1317 by khaledalawadi (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

Newbase 17 february 2020 energynewsissue 1317 by khaledalawadi