Monday, July 13, 2020

Energy Industry News

Oil Industry Veterans to Launch Hydrogen Investment Fund

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Two energy industry veterans plan to launch an investment fund focused on hydrogen this year as more and more governments include the niche fuel in their global warming battle plans.Hydrogen has long-been touted as a potential clean fuel as it only emits water vapour but it has failed to gain traction, mainly because of historically high production, transportation and storage costs.But with the European Union for one now looking to promote so-called green hydrogen to help reach net zero emissions, the sector is expected to attract hundreds of billions of dollars in investment in the coming decades.The new fund…

EU Hydrogen Plan Splits Supporters Down Color-coded Lines

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Energy industry lobbyists and advocates of renewable hydrogen are divided over whether the bloc should support low-carbon hydrogen produced by fossil fuels ahead of a new EU strategy next month.The EU's executive Commission plans to publish its hydrogen strategy on July 8, which will form the basis for EU regulation and funding to scale up production of the fuel to replace fossil fuels in sectors including chemicals and transport.More than 30 industry groups and energy firms including ExxonMobil, Equinor and Uniper wrote to EU leaders - in a June…

Siemens Gamesa Confirms Fécamp Wind Turbine Deal

Offshore wind nacelles and blades will be manufactured at Siemens Gamesa's offshore wind turbine manufacturing plant in Le Havre, France - Credit: SGRE

After EDF Renewables, Enbridge, and wpd on Tuesday announced the sanctioning of the $2,2 billion Fécamp offshore wind project in France, Siemens Gamesa has confirmed it has received the firm order for the supply of wind turbines for the project.The offshore wind turbine maker will deliver 71 SWT-7.0-154 offshore wind turbines each with capacity of 7 MW. Siemens Gamesa has also secured a 15-year maintenance contract for the 497 MW project located in Normandy.The turbines will be manufactured in the wind turbine plant Siemens Gamesa is to build in Le Havre…

Gastech Postponed for 2021

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Gastech, one of the world's largest gas, LNG and energy industries events has been postponed for 2021 due to the COVID-19 pandemic.The event was expected to take place in Singapore in September this year, however, the organizers have now decided to delay the event to September 13 to 16, 2021.Organizers dmg events said the decision had been based on concerns around the global pandemic, accessibility and for the wellbeing of speakers, delegates, exhibitors and visitors. Nick Ornstien, Vice President Energy for dmg events, said: "The postponement of Gastech 2020 gives the gas…

GMS Fleet Utilization at 2015 High as More Middle East Work Secured

A GMS jack-up unit/Credit: GMS

Gulf Marine Services PLC (GMS), a UAE-bases supplier of offshore jack-up service units, has won a seven-month contract for one of its E-Class (large) vessels, and an extension for a smaller unit.Under the 7-month contract which also includes extension options, GMS will provide support for offshore activities on behalf of a Middle East client, the company said Tuesday.The vessel will be mobilized for the start of operations during the summer of 2020. GMS has also secured a two-month contract extension of a K Class (small) vessel, also for a Middle Eastern-based client. "This increases the total GMS fleet utilization to 82% for 2020.

Saudi Arabia to Reduce Oil Production Further

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Saudi Arabia will voluntarily deepen oil output cuts from June as low oil prices are causing huge pain to the kingdom's budget and global demand remains weak due to lockdowns to contain the coronavirus pandemic.The announcement by the kingdom to add 1 million barrels per day (bpd) - equal to 1% of global supply - to the previously announced cuts follows last week's phone conversation between U.S. President Donald Trump and Saudi Arabia's King Salman.Trump had worked last month to persuade Saudi Arabia, fellow OPEC members and Russia - a group known as OPEC+ - to cut oil output after a collapse in crude prices put heavy pressure on U.S.

Oil rises 5% in second weekly gain on output cuts, demand hopes

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Oil prices settled 5% higher on Friday in their second consecutive week of gains as U.S. producers cut production with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns intended to halt the coronavirus pandemic.The number of operating oil and natural gas rigs fell by 34 to an all-time low of 374 this week - reflecting data going back 80 years - as the energy industry slashes output and spending to deal with the coronavirus-led crash in fuel demand.North American oil companies have…

Wood, NERA Team Up for AI-Powered Subsea Inspections

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Oil and gas engineering firm Wood has teamed up with National Energy Resources Australia (NERA) to develop and deliver an AI Inspection tool for subsea oil and gas infrastructure.The companies say that the solution has the potential to revolutionize the way asset inspections are conducted in challenging and high-risk environments across a range of industries while increasing the speed and accuracy of issue detection, response, and resolution.According to a statement released by NERA, Wood’s Augmented Machine Vision Solution provides a real-time inspection device capable of autonomously detecting and categorizing equipment anomalies."The solution will minimize safety risks…

GMS Rejects Seafox Proposal Again

A GMS jack-up unit - Credit: GMS

Gulf Marine Services (GMS), a UAE-based owner of a fleet of jack-up service units for the offshore energy industry, has again rejected Seafox's takeover proposal and has urged its shareholders to do the same.Seafox, the Dutch owner of a fleet of offshore jack-up service vessels, late in April made a non-binding proposal to take over the UAE-based jack-up specialist GMS. Both companies provide offshore service support jack-up units for hook-up and commissioning in the oil & gas and offshore wind industries.The proposal was for a possible cash offer for GMS at a value of US$0.09 per GMS ordinary share.

Ampelmann Makes One Millionth Offshore Transfer in Middle East

Image Credit: Ampelmann

Ampelmann, a Dutch company providing crew transfer gangways to the offshore energy industry, has said it has achieved a milestone of one million safe personnel transfers in the Middle East.The company said Wednesday that the milestone, which it took nearly a decade to achieve, was achieved during a project with vessel owner Halul Offshore Services, a subsidiary on Milaha.The millionth transfer crew transfer was made via Ampelmann's A-type system, that has been operating on the Halul 43 vessel since the beginning of 2020, and will continue to do…

When Oil Became Waste

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A week of turmoil for crude, and more pain to comeThe magnitude of how damaged the energy industry is came into full view on April 20 when the benchmark price of U.S. oil futures, which had never dropped below $10 a barrel in its nearly 40-year history, plunged to a previously unthinkable minus $38 a barrel.In just a few months, the coronavirus pandemic has destroyed so much fuel demand as billions of people curtail travel that it has done what financial crashes, recessions and wars had failed to ever do - leave the United States with so much oil there was nowhere to put it.While the unusual circumstance of negative oil prices may not be repeated…

Russian Oil Majors Examine Assets for Cuts

For illustration only - A Gazprom offshore platform - Image Credit: Gazprom

Russian oil companies are examining which wells they will cork, looking mainly at mature fields where production was falling anyway and as Moscow needs to deliver its biggest output cut ever to comply with the new global supply deal, sources said.The Organization of the Petroleum Exporting Countries and other oil nations including Russia, the group known as OPEC+, agreed to their deepest oil cut ever - 10 million barrels per day (bpd) - from May in the face of collapsing demand.Russia currently pumps 11.24 million bpd and needs to cut it down to 8.5 million bpd - its lowest since 2003 - from May 1, according to the deal's terms.

Oil Rises After OPEC+ Agrees Record Output Cut

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Oil prices rose on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won't be enough to head off oversupply with the coronavirus pandemic hammering demand.After four days of wrangling, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, agreed on Sunday to cut output by 9.7 million barrels per day (bpd) in May and June to support oil prices, representing around 10% of global supply.Brent crude futures rose 16 cents, or 0.5%, to $31.64 a barrel by 0709 GMT after opening at a session high of $33.99. U.S.

Oil Posts Biggest One-day Gain After Trump Touts Saudi-Russia Deal

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Crude prices posted their biggest-one day gains on record on Thursday after President Donald Trump said he expects Russia and Saudi Arabia to announce a major oil production cut, and Saudi state media said the kingdom was calling an emergency meeting of producers to deal with the market turmoil.Trump said he had spoken to Saudi Crown Prince Mohammed bin Salman, and expects Saudi Arabia and Russia to cut oil output by as much as 10 million to 15 million barrels, as the two countries signaled willingness to make a deal.Trump did not specify barrels per day (bpd), though the market expresses demand and supply in those terms.

ABS to Class Silver Eagle's New Jack-Ups

ABS, a classification services provider to the marine and offshore industries, will provide classification for a series of "highly innovative Self-Elevating Drilling Units (SEDU)" for Silver Eagle Global.Silver Eagle, of Manama, Bahrain, says the self-propelled design is capable of working at greater water depths and in harsh environments. According to Silver Eagle Global, the Silver Eagle SEDU 430WC-4 will have the industry’s largest deck area and deck load capacity, large accommodation, increased crane capacities, high-speed jacking system,…

Italian Marine Cable Laying Firm to Cut Dividend

Cable Enterprise cable laying vessel. Image credit: Prysmian

Italian marine cable installation company Prysmian plans to cut the dividend by 50 percent, citing the effect of the coronavirus pandemic and its effects on the global economy.Citing the spread of the pandemic and its potential duration, and given the uncertainty surrounding the terms and geographical extent of the restrictions to production and logistics around the world, as well as the slowdown that it could cause on the demand and the economic cycle, Prysmian said it would propose the dividend to be reduced at the next shareholders' meeting.The company…

Work from Home: Energy Traders Swap Shouts for Babies, Barking Dogs

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SINGAPORE, March 24 -- From banks of screens and giant phones in the office, energy traders worldwide are adapting to a laptop in the bedroom -- and it's going surprisingly well.Working from home has become the new norm in the oil trading hubs of Singapore, London and New York as governments encourage physical distancing to curb the spread of coronavirus.While some energy companies have long had facilities in place to allow off-site access to trading platforms and other technology, others are rapidly installing key equipment and communication systems for the bulk of their trading teams."Working from home…

U.S. Offshore Oil Lease Sale Weakest Since 2016

Silhouette of an oil platform at sunset in the Gulf of Mexico - Image by Lukasz Z / AdobeStock

A major sale of oil and gas leases in the U.S. Gulf of Mexico on Wednesday generated $93 million in high bids, the lowest total for any U.S. offshore auction since 2016, reflecting caution in the drilling industry amid a steep slide in oil prices.Firing up offshore drilling is a crucial part of U.S. President Donald Trump's "energy dominance" agenda to maximize domestic production of crude oil, natural gas, and coal. But the energy industry is in crisis as the coronavirus outbreak decimates world demand for fuel and crushes prices."While bidding did take a tough hit…

Offshore Technology Conference (OTC) 2020 Postponed

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Offshore Technology Conference 2020, one of the world's largest conferences and exhibitions dedicated to the offshore energy industry, will be postponed this year due to the coronavirus outbreak.The OTC 2020 organizers said on Friday that the conference, originally scheduled for May 4-7, 2020, would be delayed.“The Offshore Technology Conference (OTC) recognizes the unprecedented global challenge associated with the current COVID-19 pandemic. The health and safety of our partners, attendees, exhibitors, staff, and community are of the utmost importance…

Toshiba Delivers Fuel Cell System to Ship

Image: Toshiba Energy Systems & Solutions Corporation

The provider of energy industry solutions Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) announced that the company has delivered a mobile 30kW hydrogen fuel cell system, which volume per unit power output is reduced to 1/3 compared to the stationary fuel cell systems, to a fuel cell ship.The fuel cell ship, which passed the Temporary Navigation Permit Inspection of Japan Craft Inspection Organization on October 30, has started demonstrations of the verification by NREG Toshiba Building Corporation and Tokyo University of Marine…