FormulaE-2

MENA Region: Pushing Through Critical Energy Projects This Year

04/08/17 •lweb.es/f2700 •bit.ly/2oTUalv

In the Middle East North Africa region $622 billion worth of development is planned in the energy sector for the next five years. The power sector accounts for the largest share at $207 billion, with the oil and gas sector at $195 billion and $159 billion respectively. Leading the drive will be Saudi Arabia, and Iraq and Iran will play catch-up. Algeria will pump billions into its upstream sector, and much is expected from Egypt’s recent gas. Renewable-energy projects will be at the forefront of efforts to meet rising power demand in Morocco, Tunisia and Jordan.

Details

Is a Russia-Saudi ​d​eal on the ​h​orizon?

04/07/17 •lweb.es/f2685 •bit.ly/2oar6WZ

Russian president Vladimir Putin met with Saudi Defense Minister in Sochi on October 11th, while Russian Foreign Minister Sergei Lavrov was holding a meeting with his Saudi counterpart. The parties discussed Syria and agreed upon the necessity to prevent the creation of a terrorist caliphate. The levers of a hypothetical Russian-Saudi deal would be: a rise in oil prices, possibly accompanied by Saudi arms purchases, and on the Russian side, the guarantee that Assad will leave after a transition period, along with some kind of a Saudi “right of scrutiny” on Russian arms sales to Iran.

Details

South China Sea: Beijing’s Military Bases Are Ready For Use

03/30/17 •lweb.es/f2695 •bit.ly/2ojz8Po

According to the Center for Strategic and International Studies’ Asia Maritime Transparency Initiative, major construction at three of China’s large man-made islands in the disputed South China Sea is wrapping up, allowing Beijing to deploy fighter jets and mobile missile launchers to the area at any time. China has continued to militarize the waters as it seeks to reinforce effective control of much of the waterway, through which $5 trillion in trade passes each year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims.

Details

PetroChina: Record-Low Profit But Capex To Rise Over 40%

03/30/17 •lweb.es/f2687 •bit.ly/2nOos7y

PetroChina’s profit fell 78% to the lowest on record as the oil price crash punished the country’s biggest oil and gas producer for a third year. Net income dropped to 7.86 billion yuan (US$1.1 billion). While PetroChina expects its crude production to fall a second year in 2017, it sees gas sales rising 10% this year and to be its main growth driver to the end of the decade. PetroChina expects its 2017 global crude production to be 879 million barrels, down 4.5%.

Details

More Export Destinations For U.S. Crude In 2016

03/29/17 •lweb.es/f2697 •bit.ly/2oQhXFR

Due to a surge in oil hedges, the oil-price weakness will not prompt US producers to pull back on drilling. The producers rushed to lock in oil prices above $50 a barrel after the OPEC production cuts announcement in November, and will use hedging gains to help plug any budget deficits caused by sub-$50 spot prices. However, most of the hedges expire by 2018, and oil futures prices must recover before producers can lock in prices over $55 a barrel for next year – a level needed for significant tight-oil production growth.

Details

Trump’s “Energy Independence” Order: Both Uncertainty And Opportunity

03/28/17 •lweb.es/f2693 •bit.ly/2ocvx54

President Trump has issued an executive order to dismantle the Obama administration’s Clean Power Plan. The “Energy Independence” order lifts a moratorium on federal coal leasing, triggers a review of methane and hydraulic fracturing restrictions, and eliminates use of the Environmental Protection Agency’s “social cost of carbon” in policymaking. From a climate action perspective, there is widespread agreement that the order is bad news for U.S. emissions. Interestingly, 62 percent of Trump voters support taxing and/or regulating pollution causing global warming, and nearly three-quarters think the U.S. should use more renewable energy in future.

Details

Russia Sticking To $40 Oil Scenario: Protection Against Worst-Case

03/24/17 •lweb.es/f2698 •bit.ly/2nWvh7E

Policy makers in Moscow see Urals oil at an average of $50 a barrel this year, but falling to $40 at end-2017 and then staying near that level in 2018-2019. Russia’s Finance Ministry similarly highlighted the $40 level in January when it announced that the central bank would start buying foreign currency on its behalf when crude exceeds that level in order to insulate the exchange rate from oil volatility. The price of $40 is additionally being used to calculate the country’s budget in 2017-2019.

Details

National Interest Interview: Russian Foreign Minister Sergey Lavrov

03/24/17 •lweb.es/f2691 •bit.ly/2oQr6Ov

The interview covers various topics: Ukraine, Syria, U.S. presidential election, U.S.-Russia cooperation: “I don’t believe that we are having another Cold War … we have much clearer common threats, like terrorism, like chaos in the Middle East … so this absolutely makes it necessary to reassess where we are and what kind of cooperative structure we need … President Trump is emphasizing the need to concentrate on U.S. interests … in this he certainly holds the same position as we do in Moscow that we don’t want to meddle in other people’s matters.” (Sergey Lavrov)

Details

Saudi Arabia: Long-Term Strategy For Asian Investment

03/23/17 •lweb.es/f2703 •bit.ly/2peKLnK

Saudi King Salman’s lavish tour of Asia had a mission – to cement the kingdom’s place as leading oil supplier to the world’s biggest consumer region. The string of deals inked on his three-week tour to Malaysia, Indonesia, Japan, and China – the big prize – also point to a fresh strategy: growth in the downstream. Chief executive officer of Aramco, Amin Nasser, said on this: “The growth in that sector is very important, and anything integrated between refining, petrochemical, with marketing and distribution, is of interest to us.”

Details

China’s Sinopec Buys Its First Major Refinery In Africa

03/23/17 •lweb.es/f2699 •bit.ly/2oTNcwJ

China’s Sinopec has agreed to pay almost $1 billion for a 75 percent stake in Chevron’s South African assets and its subsidiary in Botswana, securing its first major refinery on the continent. The assets include a 100,000 barrel-per-day oil refinery in Cape Town, a lubricants plant in Durban as well as 820 petrol stations and other oil storage facilities. They also include 220 convenience stores across South Africa and Botswana. With a growing middle class, demand in South Africa for refined petroleum has increased by nearly 5 percent annually over the past five years.

Details

Oil Majors Drive Down Costs In The Offshore Wind Industry

03/23/17 •lweb.es/f2689 •bit.ly/2oQnlJ1

Royal Dutch Shell, Statoil and Eni are moving into multi-billion-dollar offshore wind farms in the North Sea and beyond. The oil companies have many reasons to move into the industry. They’ve spent decades building oil projects offshore, and that business is winding down in some areas where older fields have drained. Returns from wind farms are predictable and underpinned by government-regulated electricity prices. Current projects entering operation are delivering power at about half the price of farms finished in 2012 helping the technology start to compete with traditional forms of energy.

Details

“Shale 2.0”: Shale Drilling Turned From Art Into Science

03/21/17 •lweb.es/f2702 •bit.ly/2nOTs7i

Exxon Mobil, Royal Dutch Shell and Chevron plan to spend a combined $10 billion this year in American shale. If successful, they’ll scramble the U.S. energy business, boost American oil production, keep prices low, and steal influence from big producers. Furthermore, they are transforming shale drilling into a more economical operation. At Bongo 76-43, Shell is drilling five wells in a single pad for the first time, each about 20 feet apart, and is now able to drill 16 wells with a single rig every year, up from six in 2013.

Details