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NewBase Energy News 04 April 2022 No. 1501 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Britain could build up to 7 new nuclear power plants by 2050
By CHRIS MATTHEWS FOR MAILONLINE
Britain may be home to seven new nuclear power stations in the next 30 years, the Business
Secretary said. Business Secretary suggests - as all but one of UK's existing plants are set to be
decommissioned by 2030.
In summary:
 Britain may be home to seven new nuclear power stations in the next 30 years
 All but one of UK's existing plants is set to be decommissioned by 2030
 However, Kwasi Kwarteng has said more could be done to ease energy worries.
All but one of UK's existing plants is set to be decommissioned by 2030. However, Kwasi Kwarteng
has said more could be done to ease energy worries. The UK could massively scale up its nuclear
power capability by 2050 - with new stations having far greater capacity, it is understood. 'There is
a realisation across Government that we could do more on nuclear,' the Business Secretary told The
Sunday Telegraph.
He added: 'With energy, you're thinking maybe 30, even 40 years [ahead]. If we fast forward to
2050, there is a world where we have six or seven sites in the UK. 'That isn't going to happen in the
next two years, but it's definitely something that we can aspire to.
'The Prime Minister said, in terms of the energy generation mix, we could see maybe a quarter of
that being nuclear.
Boris Johnson is reportedly preparing to announce plans to expand the Government's commitment
to move forward with new large-scale nuclear power stations this decade
'I'd say 15 to 25 per cent. But obviously in the first three years you're not going to suddenly have six
new nuclear stations in three years. It's physically impossible to do that.'
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It means the UK could massively scale up its nuclear power capability by 2050 - with new stations
having far greater capacity.
While the number of stations is likely to remain similar to now - the plan is for each new site to be
far more powerful than those they will replace, significantly pushing up the UK's capacity.
All but one of UK's existing plants is set to be decommissioned by 2030. Pictured: Hinkley Point C
nuclear power station. Boris Johnson is reportedly preparing to announce plans to expand the
Government's commitment to move forward with new large-scale nuclear power stations this
decade.
The plan had been to back one by 2024 but it is thought the new ambition will be to support the
construction of two by 2030. The move to scale up nuclear power production will reportedly form
part of a major expansion of homegrown energy in the wake of the Ukraine crisis. It comes as the
Government's energy security strategy is expected to be unveiled on Thursday.
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UAE, Israel cooperate to advance maritime transport sector
WAM/Esraa Ismail/MOHD AAMIR
The UAE and Israel have signed a Memorandum of Understanding (MoU) on cooperation in the
field of maritime transport, exchange of experiences, and strengthening strategic partnership, as
part of the Abraham Accords Peace Agreement.
The MoU was signed by Suhail bin Mohammed Al Mazrouei, the UAE Minister of Energy and
Infrastructure, and Merav Michaeli, the Israeli Minister of Transport and Road Safety, in the
presence of a number of officials from both sides.
The MoU aims to enhance cooperation between the two countries in the field of transport, especially
maritime, and to set a future road map based on mutual benefit, in addition to exchanging
experience and knowledge to serve the future directives for the next fifty years.
Al Mazrouei highlighted that the MoU signing reflects the two parties' interest in promoting
cooperation in the field of maritime transport, and the two countries' keenness to enhance the scope
of the bilateral partnership.
The UAE Minister pointed out that the MoU will contribute to anticipating future challenges facing
the two countries in the field of transport, as well as launching pioneering initiatives to support this
vital sector.
Al Mazrouei said, "The joint action between the UAE and Israeli sides is part of the framework of
the two countries' interest in ensuring permanent economic security, stability and prosperity, and to
develop and strengthen sustainable national economies."
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He added, "Both parties believe that boosting bilateral relations would help establish stability and
peace in the Middle East, stimulate economic growth, enhance technological innovation and
establish closer relations between the peoples of the region."
For her part, Merav said, "Economic
and commercial ties build and
maintain political relations, and the
MoU we signed aims at
strengthening maritime transport
links between Israel and the UAE,
and will allow trade to flow
efficiently, quickly and at a low cost.
I am proud that the relations
between our two countries take
another advanced step, allowing us
to cooperate more closely and in a
way that serves the interests of both
sides and strengthens national
economies."
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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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Indian energy players team up for green hydrogen
Offshore Energy - Sanja Pekic
Indian Oil, the country’s refiner, L&T, India’s engineering and construction firm, and ReNew, India’s
renewable energy company, signed a binding term sheet for the formation of a joint venture (JV)
company.
The Green Hydrogen JV is to develop the green
hydrogen sector in India. It brings together L&T’s
credentials in EPC projects, IndianOil’s expertise in
petroleum refining along with its presence across
the energy spectrum, and the expertise of ReNew
in utility-scale renewable energy solutions.
Additionally, IndianOil and L&T have signed a
binding term sheet to form a JV with equity
participation to manufacture and sell electrolyzers
used in the production of green H2.
The JVs are to enable India’s transition from a grey
hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis
powered by renewable energy.
SN Subrahmanyan, CEO & MD, L&T, said: “India plans to rapidly march ahead in its
decarbonisation efforts and production of green H2 is key in this endeavor. The JV will focus on
developing green H2 projects in a time-bound manner to supply green H2 at an industrial
scale…We consider this partnership as a significant step in India’s quest for alternative energy.”
“Both these JVs aim to enable the nation’s ‘Aatmanirbhar Bharat’ mission to rapidly build, expand
and bring in economies of scale to make green H2 a cost-effective energy carrier and a chemical
feedstock for many sectors.”
Shrikant Madhav Vaidya, chairman of ndianOil, also commented: “IndianOil is forging this alliance
to realise India’s green H2 aspirations, which is in sync with the Hon’ble Prime Minister’s vision of
making India a green H2 generation and export hub. To start with, this partnership will focus on
green hydrogen projects at our Mathura and Panipat refineries. Alongside, other green H2 projects
in India will also be evaluated.”
Sumant Sinha, CEO of ReNew Power, said: “The timing for these proposed JVs is excellent as they
will help support Government of India’s recently announced green H2 policy to boost India Inc.’s
decarbonization journey.”
In February, the central government notified the green H2 policy. The policy wants to boost the
production of green hydrogen and green ammonia. This is to help the nation become a global hub
for the environmentally friendly version of the element.
For countries like India, green hydrogen can also help provide crucial energy security by reducing
the overall dependence on imported fossil fuels.
It is estimated that the demand for H2 will be 12 MMT by 2030 and around 40 per cent of the element
produced in the country (around 5 MMT) will be green.
By 2050, nearly 80 per centof India’s hydrogen is to be ‘green’ – produced by renewable electricity
and electrolysis. Green hydrogen may become the most competitive route for hydrogen production
by around 2030.
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Germany faces steep recession if Russian oil and gas halted -
By Reuters Staff
Germany will face a steep recession if there is a stop to imports or delivery of Russian gas and oil,
a top German bank lobby warned on Monday. Europe’s largest economy is heavily dependent upon
Russia for energy, and nations banks echoed concerns over possible energy disruption expressed
by big names in industry in recent days.
Christian Sewing, the chief executive of Deutsche Bank, said in his role as president of Germany’s
BDB bank lobby that banks expected sharply slower growth this year of around 2% due to the war
in Ukraine.
“The situation would be even worse if imports or supplies of Russian oil and natural gas were to be
halted. A significant recession in Germany would then be virtually unavoidable,” Sewing told
journalists.
“The question of government aid measures for companies and sectors would then become even
more urgent,” he said. Sewing once again called on the European Central Bank to act to fend off
inflation.
He said the ECB should end its net asset purchases soon and should send a signal with interest
rates. “A signal that is urgently needed,” he said.
Germany moving step by step toward Russian energy 'embargo' – Habeck
German Economy Minister Robert Habeck speaks during a joint news conference with French
Economy Minister Bruno Le Maire (not seen) at The Federal Ministry for Economic Affairs and
Climate Action (BMWK) in Berlin, Germany March 31, 2022.
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BERLIN, April 4 (Reuters) - Germany's efforts to gradually reduce
fossil fuel imports from Russia weaken President Vladimir Putin,
Economy Minister Robert Habeck said on Monday, when asked if
civilian deaths in Ukraine would prompt Germany to back an energy
embargo against Russia.
"We are working every day to create the preconditions and the steps
toward an embargo, and this is also, in the opinion of the federal
government and also in my view, the right way and one that harms
Putin daily," Habeck told a news conference.
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U.S: Biden orders ‘the largest release of oil reserves in American
history’ to lower prices. Off shore Energy
U.S. President Joe Biden last night announced plans for what is said to be the largest release from
the strategic petroleum reserves in American history of 1 million barrels a day for six months to
lower gas prices at the pump.
In his speech, Biden revealed a two-point plan, which includes immediate action through the release
of reserves and a call to reduce the dependence on fossil fuels altogether and speed up the
transition to clean energy.
On Thursday, Biden authorised the release of 1 million barrels per day for the next six months –
over 180 million barrels – from the Strategic Petroleum Reserve. This is the biggest release from
the reserves since its creation in 1975, in the midst of the Cold War, and the second since the war
in Ukraine started.
There are currently 568 million barrels in the reserve in four locations across Southern Louisiana
and Texas.
As a reminder, the U.S. and 30 other countries that are members of the International Energy Agency
(IEA) in early March committed to releasing a total of 60 million barrels of oil from strategic reserves
in an effort to stabilise the global energy markets. Of the total of 60 million, the U.S. committed to
releasing 30 million barrels of oil from the Strategic Petroleum Reserve.
This latest release announced by Biden on Thursday is part of a two-part plan, aiming to ease the
gas prices at the pump and end this era of dependence and uncertainty, and lay a new foundation
for true and lasting American energy independence.
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The announcement came after OPEC and its allies, including Russia, confirmed they were sticking
to their existing deal to gradually increase production following a meeting on Thursday. At the
meeting, OPEC concluded that “the outlook pointed to a well-balanced market, and that current
volatility is not caused by fundamentals, but by ongoing geopolitical developments.”
A similar conclusion was made at OPEC’s previous meeting at the beginning of March when the oil
prices were skyrocketing following the beginning of Russia’s attack on Ukraine.
Another important detail coming
from OPEC is the fact that, at the
Extraordinary 183rd Meeting of
the OPEC Conference, it
approved with immediate effect,
the replacement of the IEA with
Wood Mackenzie and Rystad
Energy as secondary sources
used to assess OPEC Member
Countries crude oil production.
Meanwhile, the IEA has
scheduled an emergency
meeting to be held on Friday to
discuss the release of the
strategic reserves, Reuters has
reported.
The cost of banning Russian oil
Biden identified Putin as one of
the root causes of high gas
prices, in addition to Covid-19,
and reminded the U.S. has
already banned the Russian
import of oil, saying it was the right thing to do. But the ban has come with a cost, as Russian oil
comes off the global market, the supply of oil drops and prices are rising.
Therefore, the first part of the plan is to immediately increase the supply of oil.
Earlier this month, U.S. Energy Secretary Jennifer Granholm urged the oil and gas
companies to increase their production to stabilise the market following the global energy crisis
exacerbated by Russia’s attack on Ukraine.
Addressing the oil and gas producers in the U.S., Biden said some have already announced they’re
increasing immediate production, but some companies have been pretty blunt.
“They don’t want to increase supply because Putin’s price hike means higher profits. One CEO even
acknowledged that they don’t care if the price of a barrel of oil goes to $200 a barrel. They’re not
going to step up the production,” Biden said.
“I say: Enough. Enough of lavishing excessive profits on investors and payouts and buybacks when
the American people are watching, the world is watching.”
While admitting he is a capitalist himself and has no problem with corporations turning a good profit,
Biden emphasised that companies have an obligation that goes beyond just their shareholders: to
their customers, their communities, and their country.
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To help execute the first part of the plan, the President called for a “use it or lose it” policy when it
comes to unused and approved oil permits, saying that those sitting on unused leases and idle wells
will either have to start producing or pay the price for their inaction.
Acknowledging that it takes months, not days, for companies to increase production, he emphasised
the importance of the second part of the plan.
According to Biden, the release of 1 million barrels per day for the next six months is a wartime
bridge to increase oil supply until production ramps up later this year. This is, according to Biden,
by far the largest release from the country’s national reserve in its history. The U.S. will use the
revenue from selling the oil now to restock the Strategic Petroleum Reserve when prices are lower
to be ready for future emergencies.
Biden noted the release was coordinated with allies and partners around the world, with
commitments from other countries to release tens of millions of additional barrels into the market.
This is the first part of the plan.
American energy independence
The second part of the plan is about declaring real American energy independence in the long
term “so that we never have to deal with this problem again,” Biden said.
Calling for the reduction of dependence on fossil fuels altogether, Biden stated: “We need to choose
long-term security over energy and climate vulnerability. We need to double down on our
commitment to clean energy and tackling the climate crisis with our partners and allies around the
world.”
The way of doing that is, he claims, by passing his plan that is before the United States Congress
right now to speed the transition to a clean energy future that is made in America with American
products and American values.
That is why Biden issued a directive to strengthen the clean energy economy, saying he will use the
Defense Production Act to secure American supply chains for the critical materials that go into
batteries for electric vehicles and the storage of renewable energy: lithium, graphite, nickel, and
more.
“We need to end our long-term reliance on China and other countries for inputs that will power the
future. And I’ll use every tool I have to make that happen,” Biden said, promising that building a
made-in-America clean energy future will help safeguard national security, help tackle climate
change, and help ensure that America creates millions of jobs for generations to come.
The bottom line is, as Biden stated, that between ramping up production in the short term and driving
down demand in the long term, the country can free itself from dependence on imported oil from
across the world.
It is also worth reminding that the U.S. last week agreed to supply 15 billion cubic meters of LNG to
the EU this year as part of efforts to ensure and strengthen European energy security, reduce
reliance on Russian fossil fuels, and reduce Europe’s overall reliance on gas.
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NewBase April 04-2022 Khaled Al Awadi
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Oil fluctuate around $100 as over supply concerns persist
NewBase + Reuters
Oil rose above $105 for Brent , later slide to $104 a barrel on Monday as concern about over supply
arising from Russia’s invasion of Ukraine and the lack of an Iranian nuclear deal persisted despite
countries releasing oil from strategic reserves.
Brent crude was down 22 cents, or 0.21%, to $101.17 a barrel by 10.25 GMT. U.S. West Texas
Intermediate crude gained $0.08, or 0.01%, to $99.355. Both contracts slipped $1 when markets
opened on Monday.
The invasion of Ukraine in February sharply ramped up supply worries that were already
underpinning oil prices. Sanctions imposed on Russia and buyers’ avoidance of Russian oil have
raised fears of larger supply losses from this month.
Oil price special
coverage
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“Will the release of barrels from strategic reserves fill a shortfall caused by sanctions and buyer
aversion to Russian oil? In a word, no,” said Stephen Brennock of oil broker PVM.
Brent dropped by about 13% last week after U.S. President Joe Biden announced a record U.S. oil
reserves release and International Energy Agency members committed to further tapping reserves.
Crude had hit $139 last month, its highest since 2008.
“This short-term measure to target lower oil prices ... doesn’t resolve the long-term problem,” said
Naeem Aslam of Avatrade.
Oil also gained support from a pause in talks to revive the Iranian nuclear deal, which would allow
a lifting of sanctions on Iranian oil. Iran on Monday blamed the United States for the halt. Some
downward pressure on prices came from a truce in Yemen, which could ease threats to supply in
the Middle East.
The United Nations has brokered a two-month truce between a Saudi-led coalition and the Houthi
group aligned with Iran for the first time in the seven-year conflict. Saudi oil facilities have come
under attack by the Houthis during the conflict, adding to supply disruption from Russia.
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NewBase Special Coverage
The Energy world –April -01 -2022
CLEAN ENERGY
What led the US to approve biggest-ever oil release from the SPR?
Robin Mills + NewBase
The action has had two desired effects so far: crude prices have fallen and the time-spread between
near-term and longer-dated futures contracts has dropped
“If in the first act you have hung a pistol on the wall, then in the following one, it should be fired”.
Russian playwright Anton Chekhov’s advice on writing applies also to oil, where the US strategic
petroleum reserve (SPR) has long loomed over the market, but rarely been used. Now US President
Joe Biden intends to give the market both barrels.
Why now, and what will the impact be?
The SPR was set up in 1975, after the 1973/1974 petroleum embargo, and consists of salt caverns
and other facilities along the US coast of the Gulf of Mexico. It has been used occasionally,
sometimes for political reasons, to reduce the deficit in the market, or after hurricanes have
interrupted crude production.
All member states of the International Energy Agency should hold stocks to cover at least 90 days
of oil imports. But no other country has reserves the size of the SPR.
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On Thursday, Washington ordered the biggest-ever SPR release: one million barrels per day over
the next six months, draining nearly a third of its capacity (although 20 million barrels of this was
already scheduled). The hope is to bring down oil prices and replace Russian exports lost to
sanctions and buyer caution.
The reserve’s maximum-ever fill was 726.6 million barrels; it now holds 568.3 million. In previous
crises, 21 million barrels were released in 1990-91 to cover the losses following Saddam Hussein’s
invasion of Kuwait and 30 million barrels were sold in 2011 during the revolution in Libya. Most
recently, on March 1, President Biden announced the drawdown of 30 million barrels after the start
of Russia’s military offensive in Ukraine. But 180 million barrels goes far beyond any of that.
The White House’s announcement also commits that the sold barrels will be bought back in future
years, when presumably prices are lower. Other IEA members agreed on Friday to make co-
ordinated releases from their own stocks, but without specifying the volumes.
The US and other IEA states are not at their most prepared. Government holdings are at the lowest
level since 2005. The SPR is the emptiest since 2002, and will drop to the lowest since 1984 after
this action. This reflects the other recent drawdowns but also past sales for more frivolous reasons
that were not replenished. There have been doubts on the SPR’s technical status and whether it
can withdraw and sell so quickly.
Analysts and politicians even questioned whether the US, a newly minted net oil exporter, really
needed a large strategic reserve. This crisis provides the answer.
The announcement came right after the Opec+ meeting where the alliance decided in just 12
minutes to stick to its plan of steady monthly increases. The SPR release may seem to justify caution
in Vienna.
But if Opec+ had somehow agreed to boost output substantially, the SPR release may not have
gone ahead. At least economically, the Opec+ states win anyway: a somewhat lower price now, but
a higher price and more need for their crude next year when their production should be higher.
The action has had two desired effects so far. Oil prices have fallen, with US crude down from
almost $108 to just over $99 per barrel. And the time-spread between near-term and longer-dated
futures contracts has dropped, as the further-out months have risen by about $4 per barrel.
This is the result of putting more oil on
the market now, and promising to buy it
back subsequently. To be even bolder,
and to limit financial exposure, the US
government could even have bought
crude for delivery in 2023-2024 at $80 to
$85 per barrel, the current futures price.
One hope is obviously to show that the
White House is doing something about
the pain at the pump and inflation.
Another is to signal resolution to
Russian President Vladimir Putin that
western countries can and will maintain,
and also tighten, sanctions.
But more constructively, it is intended to
buy time for slower measures to work.
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American shale drillers complain of shortages of labour and equipment, shareholder demands to
limit new investment and an unfriendly attitude to their industry from the Democratic Party.
At current high prices, though, US production should expand substantially over the next year. Drillers
now know there is a floor under prices when the US buyback goes into action. Opec+ production
will also keep stepping up. On the current schedule, the Covid-related cuts will have been phased
out by September and quotas could then be realigned. Perhaps a resumed nuclear deal will also
bring back Iranian crude.
Politically, President Biden had to do something. However, the action carries risks. The SPR was
designed to cover short-term disruptions. It is not even clear yet how much Russian production has
been cut, and if and when it might return. But a wider effort to sanction Russian exports, including
secondary sanctions and measures against banking, shipping and insurance, could mean a long-
lasting drop.
Other crises could also intervene during this period.
If more Russian oil is off the market, if Opec+ has reached maximum capacity, if oil-consuming
countries’ policies continue to favour subsidising instead of restraining consumption, and if the world
economy is still doing reasonably well, prices next year will be higher than now.
Inflation-adjusted prices now are still much below their all-time high of 2008; there is room for things
to get much worse.
What does that mean for oil prices?
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Oil prices are headed higher, but how high will they go is still the tricky part of the
question, There are still variables that have not been answered just yet:
 Russia crude exports have fallen ~1.8 million b/d from 2-weeks ago. Will this be
sustained? How much will Russian crude exports actually drop in April?
 Once we know what Russia is capable of exporting in April, we will then grasp just
how much oil prices have to go up in order to start capping demand.
 OECD oil demand is the variant perception variable this year, which has so far
surprised to the upside. But will there be a point of demand destruction that
loosens the oil market balance?
In the simplest terms, oil prices are headed higher. US crude storage and inventories failed
to build in Q1, which means lower storage over the summer, and higher oil prices. If
Russia’s crude exports loss is over 1 million b/d, oil prices will have to reach demand level
destruction sometime this summer to help “attempt” to balance the market.
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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
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 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
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 21

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  • 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 04 April 2022 No. 1501 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Britain could build up to 7 new nuclear power plants by 2050 By CHRIS MATTHEWS FOR MAILONLINE Britain may be home to seven new nuclear power stations in the next 30 years, the Business Secretary said. Business Secretary suggests - as all but one of UK's existing plants are set to be decommissioned by 2030. In summary:  Britain may be home to seven new nuclear power stations in the next 30 years  All but one of UK's existing plants is set to be decommissioned by 2030  However, Kwasi Kwarteng has said more could be done to ease energy worries. All but one of UK's existing plants is set to be decommissioned by 2030. However, Kwasi Kwarteng has said more could be done to ease energy worries. The UK could massively scale up its nuclear power capability by 2050 - with new stations having far greater capacity, it is understood. 'There is a realisation across Government that we could do more on nuclear,' the Business Secretary told The Sunday Telegraph. He added: 'With energy, you're thinking maybe 30, even 40 years [ahead]. If we fast forward to 2050, there is a world where we have six or seven sites in the UK. 'That isn't going to happen in the next two years, but it's definitely something that we can aspire to. 'The Prime Minister said, in terms of the energy generation mix, we could see maybe a quarter of that being nuclear. Boris Johnson is reportedly preparing to announce plans to expand the Government's commitment to move forward with new large-scale nuclear power stations this decade 'I'd say 15 to 25 per cent. But obviously in the first three years you're not going to suddenly have six new nuclear stations in three years. It's physically impossible to do that.'
  • 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 It means the UK could massively scale up its nuclear power capability by 2050 - with new stations having far greater capacity. While the number of stations is likely to remain similar to now - the plan is for each new site to be far more powerful than those they will replace, significantly pushing up the UK's capacity. All but one of UK's existing plants is set to be decommissioned by 2030. Pictured: Hinkley Point C nuclear power station. Boris Johnson is reportedly preparing to announce plans to expand the Government's commitment to move forward with new large-scale nuclear power stations this decade. The plan had been to back one by 2024 but it is thought the new ambition will be to support the construction of two by 2030. The move to scale up nuclear power production will reportedly form part of a major expansion of homegrown energy in the wake of the Ukraine crisis. It comes as the Government's energy security strategy is expected to be unveiled on Thursday.
  • 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 UAE, Israel cooperate to advance maritime transport sector WAM/Esraa Ismail/MOHD AAMIR The UAE and Israel have signed a Memorandum of Understanding (MoU) on cooperation in the field of maritime transport, exchange of experiences, and strengthening strategic partnership, as part of the Abraham Accords Peace Agreement. The MoU was signed by Suhail bin Mohammed Al Mazrouei, the UAE Minister of Energy and Infrastructure, and Merav Michaeli, the Israeli Minister of Transport and Road Safety, in the presence of a number of officials from both sides. The MoU aims to enhance cooperation between the two countries in the field of transport, especially maritime, and to set a future road map based on mutual benefit, in addition to exchanging experience and knowledge to serve the future directives for the next fifty years. Al Mazrouei highlighted that the MoU signing reflects the two parties' interest in promoting cooperation in the field of maritime transport, and the two countries' keenness to enhance the scope of the bilateral partnership. The UAE Minister pointed out that the MoU will contribute to anticipating future challenges facing the two countries in the field of transport, as well as launching pioneering initiatives to support this vital sector. Al Mazrouei said, "The joint action between the UAE and Israeli sides is part of the framework of the two countries' interest in ensuring permanent economic security, stability and prosperity, and to develop and strengthen sustainable national economies."
  • 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 He added, "Both parties believe that boosting bilateral relations would help establish stability and peace in the Middle East, stimulate economic growth, enhance technological innovation and establish closer relations between the peoples of the region." For her part, Merav said, "Economic and commercial ties build and maintain political relations, and the MoU we signed aims at strengthening maritime transport links between Israel and the UAE, and will allow trade to flow efficiently, quickly and at a low cost. I am proud that the relations between our two countries take another advanced step, allowing us to cooperate more closely and in a way that serves the interests of both sides and strengthens national economies."
  • 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 Indian energy players team up for green hydrogen Offshore Energy - Sanja Pekic Indian Oil, the country’s refiner, L&T, India’s engineering and construction firm, and ReNew, India’s renewable energy company, signed a binding term sheet for the formation of a joint venture (JV) company. The Green Hydrogen JV is to develop the green hydrogen sector in India. It brings together L&T’s credentials in EPC projects, IndianOil’s expertise in petroleum refining along with its presence across the energy spectrum, and the expertise of ReNew in utility-scale renewable energy solutions. Additionally, IndianOil and L&T have signed a binding term sheet to form a JV with equity participation to manufacture and sell electrolyzers used in the production of green H2. The JVs are to enable India’s transition from a grey hydrogen economy to a greener economy that increasingly manufactures hydrogen via electrolysis powered by renewable energy. SN Subrahmanyan, CEO & MD, L&T, said: “India plans to rapidly march ahead in its decarbonisation efforts and production of green H2 is key in this endeavor. The JV will focus on developing green H2 projects in a time-bound manner to supply green H2 at an industrial scale…We consider this partnership as a significant step in India’s quest for alternative energy.” “Both these JVs aim to enable the nation’s ‘Aatmanirbhar Bharat’ mission to rapidly build, expand and bring in economies of scale to make green H2 a cost-effective energy carrier and a chemical feedstock for many sectors.” Shrikant Madhav Vaidya, chairman of ndianOil, also commented: “IndianOil is forging this alliance to realise India’s green H2 aspirations, which is in sync with the Hon’ble Prime Minister’s vision of making India a green H2 generation and export hub. To start with, this partnership will focus on green hydrogen projects at our Mathura and Panipat refineries. Alongside, other green H2 projects in India will also be evaluated.” Sumant Sinha, CEO of ReNew Power, said: “The timing for these proposed JVs is excellent as they will help support Government of India’s recently announced green H2 policy to boost India Inc.’s decarbonization journey.” In February, the central government notified the green H2 policy. The policy wants to boost the production of green hydrogen and green ammonia. This is to help the nation become a global hub for the environmentally friendly version of the element. For countries like India, green hydrogen can also help provide crucial energy security by reducing the overall dependence on imported fossil fuels. It is estimated that the demand for H2 will be 12 MMT by 2030 and around 40 per cent of the element produced in the country (around 5 MMT) will be green. By 2050, nearly 80 per centof India’s hydrogen is to be ‘green’ – produced by renewable electricity and electrolysis. Green hydrogen may become the most competitive route for hydrogen production by around 2030.
  • 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 Germany faces steep recession if Russian oil and gas halted - By Reuters Staff Germany will face a steep recession if there is a stop to imports or delivery of Russian gas and oil, a top German bank lobby warned on Monday. Europe’s largest economy is heavily dependent upon Russia for energy, and nations banks echoed concerns over possible energy disruption expressed by big names in industry in recent days. Christian Sewing, the chief executive of Deutsche Bank, said in his role as president of Germany’s BDB bank lobby that banks expected sharply slower growth this year of around 2% due to the war in Ukraine. “The situation would be even worse if imports or supplies of Russian oil and natural gas were to be halted. A significant recession in Germany would then be virtually unavoidable,” Sewing told journalists. “The question of government aid measures for companies and sectors would then become even more urgent,” he said. Sewing once again called on the European Central Bank to act to fend off inflation. He said the ECB should end its net asset purchases soon and should send a signal with interest rates. “A signal that is urgently needed,” he said. Germany moving step by step toward Russian energy 'embargo' – Habeck German Economy Minister Robert Habeck speaks during a joint news conference with French Economy Minister Bruno Le Maire (not seen) at The Federal Ministry for Economic Affairs and Climate Action (BMWK) in Berlin, Germany March 31, 2022.
  • 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 BERLIN, April 4 (Reuters) - Germany's efforts to gradually reduce fossil fuel imports from Russia weaken President Vladimir Putin, Economy Minister Robert Habeck said on Monday, when asked if civilian deaths in Ukraine would prompt Germany to back an energy embargo against Russia. "We are working every day to create the preconditions and the steps toward an embargo, and this is also, in the opinion of the federal government and also in my view, the right way and one that harms Putin daily," Habeck told a news conference.
  • 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 U.S: Biden orders ‘the largest release of oil reserves in American history’ to lower prices. Off shore Energy U.S. President Joe Biden last night announced plans for what is said to be the largest release from the strategic petroleum reserves in American history of 1 million barrels a day for six months to lower gas prices at the pump. In his speech, Biden revealed a two-point plan, which includes immediate action through the release of reserves and a call to reduce the dependence on fossil fuels altogether and speed up the transition to clean energy. On Thursday, Biden authorised the release of 1 million barrels per day for the next six months – over 180 million barrels – from the Strategic Petroleum Reserve. This is the biggest release from the reserves since its creation in 1975, in the midst of the Cold War, and the second since the war in Ukraine started. There are currently 568 million barrels in the reserve in four locations across Southern Louisiana and Texas. As a reminder, the U.S. and 30 other countries that are members of the International Energy Agency (IEA) in early March committed to releasing a total of 60 million barrels of oil from strategic reserves in an effort to stabilise the global energy markets. Of the total of 60 million, the U.S. committed to releasing 30 million barrels of oil from the Strategic Petroleum Reserve. This latest release announced by Biden on Thursday is part of a two-part plan, aiming to ease the gas prices at the pump and end this era of dependence and uncertainty, and lay a new foundation for true and lasting American energy independence.
  • 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 The announcement came after OPEC and its allies, including Russia, confirmed they were sticking to their existing deal to gradually increase production following a meeting on Thursday. At the meeting, OPEC concluded that “the outlook pointed to a well-balanced market, and that current volatility is not caused by fundamentals, but by ongoing geopolitical developments.” A similar conclusion was made at OPEC’s previous meeting at the beginning of March when the oil prices were skyrocketing following the beginning of Russia’s attack on Ukraine. Another important detail coming from OPEC is the fact that, at the Extraordinary 183rd Meeting of the OPEC Conference, it approved with immediate effect, the replacement of the IEA with Wood Mackenzie and Rystad Energy as secondary sources used to assess OPEC Member Countries crude oil production. Meanwhile, the IEA has scheduled an emergency meeting to be held on Friday to discuss the release of the strategic reserves, Reuters has reported. The cost of banning Russian oil Biden identified Putin as one of the root causes of high gas prices, in addition to Covid-19, and reminded the U.S. has already banned the Russian import of oil, saying it was the right thing to do. But the ban has come with a cost, as Russian oil comes off the global market, the supply of oil drops and prices are rising. Therefore, the first part of the plan is to immediately increase the supply of oil. Earlier this month, U.S. Energy Secretary Jennifer Granholm urged the oil and gas companies to increase their production to stabilise the market following the global energy crisis exacerbated by Russia’s attack on Ukraine. Addressing the oil and gas producers in the U.S., Biden said some have already announced they’re increasing immediate production, but some companies have been pretty blunt. “They don’t want to increase supply because Putin’s price hike means higher profits. One CEO even acknowledged that they don’t care if the price of a barrel of oil goes to $200 a barrel. They’re not going to step up the production,” Biden said. “I say: Enough. Enough of lavishing excessive profits on investors and payouts and buybacks when the American people are watching, the world is watching.” While admitting he is a capitalist himself and has no problem with corporations turning a good profit, Biden emphasised that companies have an obligation that goes beyond just their shareholders: to their customers, their communities, and their country.
  • 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 To help execute the first part of the plan, the President called for a “use it or lose it” policy when it comes to unused and approved oil permits, saying that those sitting on unused leases and idle wells will either have to start producing or pay the price for their inaction. Acknowledging that it takes months, not days, for companies to increase production, he emphasised the importance of the second part of the plan. According to Biden, the release of 1 million barrels per day for the next six months is a wartime bridge to increase oil supply until production ramps up later this year. This is, according to Biden, by far the largest release from the country’s national reserve in its history. The U.S. will use the revenue from selling the oil now to restock the Strategic Petroleum Reserve when prices are lower to be ready for future emergencies. Biden noted the release was coordinated with allies and partners around the world, with commitments from other countries to release tens of millions of additional barrels into the market. This is the first part of the plan. American energy independence The second part of the plan is about declaring real American energy independence in the long term “so that we never have to deal with this problem again,” Biden said. Calling for the reduction of dependence on fossil fuels altogether, Biden stated: “We need to choose long-term security over energy and climate vulnerability. We need to double down on our commitment to clean energy and tackling the climate crisis with our partners and allies around the world.” The way of doing that is, he claims, by passing his plan that is before the United States Congress right now to speed the transition to a clean energy future that is made in America with American products and American values. That is why Biden issued a directive to strengthen the clean energy economy, saying he will use the Defense Production Act to secure American supply chains for the critical materials that go into batteries for electric vehicles and the storage of renewable energy: lithium, graphite, nickel, and more. “We need to end our long-term reliance on China and other countries for inputs that will power the future. And I’ll use every tool I have to make that happen,” Biden said, promising that building a made-in-America clean energy future will help safeguard national security, help tackle climate change, and help ensure that America creates millions of jobs for generations to come. The bottom line is, as Biden stated, that between ramping up production in the short term and driving down demand in the long term, the country can free itself from dependence on imported oil from across the world. It is also worth reminding that the U.S. last week agreed to supply 15 billion cubic meters of LNG to the EU this year as part of efforts to ensure and strengthen European energy security, reduce reliance on Russian fossil fuels, and reduce Europe’s overall reliance on gas.
  • 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 NewBase April 04-2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil fluctuate around $100 as over supply concerns persist NewBase + Reuters Oil rose above $105 for Brent , later slide to $104 a barrel on Monday as concern about over supply arising from Russia’s invasion of Ukraine and the lack of an Iranian nuclear deal persisted despite countries releasing oil from strategic reserves. Brent crude was down 22 cents, or 0.21%, to $101.17 a barrel by 10.25 GMT. U.S. West Texas Intermediate crude gained $0.08, or 0.01%, to $99.355. Both contracts slipped $1 when markets opened on Monday. The invasion of Ukraine in February sharply ramped up supply worries that were already underpinning oil prices. Sanctions imposed on Russia and buyers’ avoidance of Russian oil have raised fears of larger supply losses from this month. Oil price special coverage
  • 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 “Will the release of barrels from strategic reserves fill a shortfall caused by sanctions and buyer aversion to Russian oil? In a word, no,” said Stephen Brennock of oil broker PVM. Brent dropped by about 13% last week after U.S. President Joe Biden announced a record U.S. oil reserves release and International Energy Agency members committed to further tapping reserves. Crude had hit $139 last month, its highest since 2008. “This short-term measure to target lower oil prices ... doesn’t resolve the long-term problem,” said Naeem Aslam of Avatrade. Oil also gained support from a pause in talks to revive the Iranian nuclear deal, which would allow a lifting of sanctions on Iranian oil. Iran on Monday blamed the United States for the halt. Some downward pressure on prices came from a truce in Yemen, which could ease threats to supply in the Middle East. The United Nations has brokered a two-month truce between a Saudi-led coalition and the Houthi group aligned with Iran for the first time in the seven-year conflict. Saudi oil facilities have come under attack by the Houthis during the conflict, adding to supply disruption from Russia.
  • 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 Special Coverage The Energy world –April -01 -2022 CLEAN ENERGY What led the US to approve biggest-ever oil release from the SPR? Robin Mills + NewBase The action has had two desired effects so far: crude prices have fallen and the time-spread between near-term and longer-dated futures contracts has dropped “If in the first act you have hung a pistol on the wall, then in the following one, it should be fired”. Russian playwright Anton Chekhov’s advice on writing applies also to oil, where the US strategic petroleum reserve (SPR) has long loomed over the market, but rarely been used. Now US President Joe Biden intends to give the market both barrels. Why now, and what will the impact be? The SPR was set up in 1975, after the 1973/1974 petroleum embargo, and consists of salt caverns and other facilities along the US coast of the Gulf of Mexico. It has been used occasionally, sometimes for political reasons, to reduce the deficit in the market, or after hurricanes have interrupted crude production. All member states of the International Energy Agency should hold stocks to cover at least 90 days of oil imports. But no other country has reserves the size of the SPR.
  • 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 On Thursday, Washington ordered the biggest-ever SPR release: one million barrels per day over the next six months, draining nearly a third of its capacity (although 20 million barrels of this was already scheduled). The hope is to bring down oil prices and replace Russian exports lost to sanctions and buyer caution. The reserve’s maximum-ever fill was 726.6 million barrels; it now holds 568.3 million. In previous crises, 21 million barrels were released in 1990-91 to cover the losses following Saddam Hussein’s invasion of Kuwait and 30 million barrels were sold in 2011 during the revolution in Libya. Most recently, on March 1, President Biden announced the drawdown of 30 million barrels after the start of Russia’s military offensive in Ukraine. But 180 million barrels goes far beyond any of that. The White House’s announcement also commits that the sold barrels will be bought back in future years, when presumably prices are lower. Other IEA members agreed on Friday to make co- ordinated releases from their own stocks, but without specifying the volumes. The US and other IEA states are not at their most prepared. Government holdings are at the lowest level since 2005. The SPR is the emptiest since 2002, and will drop to the lowest since 1984 after this action. This reflects the other recent drawdowns but also past sales for more frivolous reasons that were not replenished. There have been doubts on the SPR’s technical status and whether it can withdraw and sell so quickly. Analysts and politicians even questioned whether the US, a newly minted net oil exporter, really needed a large strategic reserve. This crisis provides the answer. The announcement came right after the Opec+ meeting where the alliance decided in just 12 minutes to stick to its plan of steady monthly increases. The SPR release may seem to justify caution in Vienna. But if Opec+ had somehow agreed to boost output substantially, the SPR release may not have gone ahead. At least economically, the Opec+ states win anyway: a somewhat lower price now, but a higher price and more need for their crude next year when their production should be higher. The action has had two desired effects so far. Oil prices have fallen, with US crude down from almost $108 to just over $99 per barrel. And the time-spread between near-term and longer-dated futures contracts has dropped, as the further-out months have risen by about $4 per barrel. This is the result of putting more oil on the market now, and promising to buy it back subsequently. To be even bolder, and to limit financial exposure, the US government could even have bought crude for delivery in 2023-2024 at $80 to $85 per barrel, the current futures price. One hope is obviously to show that the White House is doing something about the pain at the pump and inflation. Another is to signal resolution to Russian President Vladimir Putin that western countries can and will maintain, and also tighten, sanctions. But more constructively, it is intended to buy time for slower measures to work.
  • 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 American shale drillers complain of shortages of labour and equipment, shareholder demands to limit new investment and an unfriendly attitude to their industry from the Democratic Party. At current high prices, though, US production should expand substantially over the next year. Drillers now know there is a floor under prices when the US buyback goes into action. Opec+ production will also keep stepping up. On the current schedule, the Covid-related cuts will have been phased out by September and quotas could then be realigned. Perhaps a resumed nuclear deal will also bring back Iranian crude. Politically, President Biden had to do something. However, the action carries risks. The SPR was designed to cover short-term disruptions. It is not even clear yet how much Russian production has been cut, and if and when it might return. But a wider effort to sanction Russian exports, including secondary sanctions and measures against banking, shipping and insurance, could mean a long- lasting drop. Other crises could also intervene during this period. If more Russian oil is off the market, if Opec+ has reached maximum capacity, if oil-consuming countries’ policies continue to favour subsidising instead of restraining consumption, and if the world economy is still doing reasonably well, prices next year will be higher than now. Inflation-adjusted prices now are still much below their all-time high of 2008; there is room for things to get much worse. What does that mean for oil prices?
  • 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 Oil prices are headed higher, but how high will they go is still the tricky part of the question, There are still variables that have not been answered just yet:  Russia crude exports have fallen ~1.8 million b/d from 2-weeks ago. Will this be sustained? How much will Russian crude exports actually drop in April?  Once we know what Russia is capable of exporting in April, we will then grasp just how much oil prices have to go up in order to start capping demand.  OECD oil demand is the variant perception variable this year, which has so far surprised to the upside. But will there be a point of demand destruction that loosens the oil market balance? In the simplest terms, oil prices are headed higher. US crude storage and inventories failed to build in Q1, which means lower storage over the summer, and higher oil prices. If Russia’s crude exports loss is over 1 million b/d, oil prices will have to reach demand level destruction sometime this summer to help “attempt” to balance the market.
  • 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 Price Increase! At the end of March, we will be increasing HFI Research subscription from $150/month or $900/year to $200/month or $1,200/year. As a subscriber, you receive:  Daily oil and natural gas commentary.  Energy stock recommendations along with trade alerts.  Weekly flagship report.  Access to HFI Portfolio, oil trading portfolio, and natural gas trading portfolio.  Access to the HFIR team for Q&A.  The largest energy investing community on Seeing Alpha live chat. NewBase Energy News 04 April 2022 - Issue No. 1501 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.
  • 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 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.
  • 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
  • 21. 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 21