Friday, May 24, 2019

Energy Sector News

Argentina Grants Offshore Exploration Permits

© Patrik Stedrak / Adobe Stock

Argentina awarded permits to begin hydrocarbon exploration in 18 areas off the coast of the country in the Malvinas West basin to companies including Exxon Mobil Corp, Total SA, YPF SA and Royal Dutch Shell Plc, the government said on Friday.The winning companies offered bids totaling $724 million, the government said, to explore the areas that are located in the South Atlantic, some near the Malvinas Islands under the control of the British government, but whose sovereignty is claimed by Argentina.The other companies that will make up exploration consortia include BP…

DNV GL Hires Energy, Utilities Managers

Elizabeth Kaiga (Photo: DNV GL)

DNV GL announced on Friday it has added two new key account managers for Energy North America. Elizabeth Kaiga will work with a wide range of accounts that include utilities, renewable developers, financial organizations and large corporations, all with a focus on renewable energy, while John Costello will focus on the utility industry in the U.S.“Elizabeth and John will lead account teams to expand and strengthen relationships with customers and enhance the services that DNV GL is delivering, both for our core customers and for new customers,” said Richard S.

Energy Firms Lack in Digital Skills: DNV GL

Pic: DNV GL

91% of energy companies say digital skills training is needed, data science and big data analytics identified as most important digital skillsets & 65% of organizations need employees with creative problem-solving competence in their workforce.A lack of digital skills and internal barriers related to company culture and mindset are the biggest roadblocks hindering digital progress in the energy sector, with 71% of organizations in the industry needing employees with…

Shell to Invest $2 Bln per Year in Brazil

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Royal Dutch Shell has plans to invest about $2 billion per year in Brazil through 2025, Chief Executive Ben van Beurden told newspaper Valor Econômico in an exclusive interview.Its investment plans could be increased to allow the company to bid in three upcoming oil and gas auctions, Valor reported in its Thursday edition based on the interview.Royal Dutch Shell will not focus exclusively on oil projects, the report said. It is interested in exploring opportunities in natural gas…

O&G Skills Requirements Shifting

(Photo: OPITO)

Action is needed now to retain, retrain, recruit and renew the workforce in a rapidly changing UK oil and gas sector.These are the findings presented by energy skills body OPITO, who has set out a strategy to prepare the UK oil and gas industry for a shift in skills requirements over the next six years.OPITO’s Skills Landscape 2019 – 2025 report, part of the UKCS Workforce Dynamics research series, reveals technology advances, internationalization and the transition…

Transition to a Hydrogen Future Has Begun

There is a growing international consensus that clean hydrogen will play a key role in the world’s transition to a sustainable energy future. Photograph: IEA/ Shutterstock

There is a growing international consensus that clean hydrogen will play a key role in the world’s transition to a sustainable energy future, said  Noé van Hulst, who chairs the High-Level Advisory Panel for the International Energy Agency (IEA)’s forthcoming hydrogen study.Hulst, the Hydrogen Envoy for the Ministry of Economic Affairs & Climate Policy, The Netherlands, said that it is crucial to help reduce carbon emissions from industry and heavy transport, and also…

Australia: Ren. Energy to Reach 100GW Soon

Graph: Rystad Energy

Australia’s renewable energy pipeline will reach 100 gigawatts (GW) before May, which is a milestone in the country's energy sector.In January and February 6.65 GW of new capacity from 62 assets were added, said Rystad Energy, the energy research and consulting firm. This is more than double the capacity and number of assets that were added in the same period last year.“This clearly shows the confidence investors have in Australia’s renewable future and possibly where the renewables sector sees the election outcome going…

US to Lead Oil Supply Growth to 2024

Dr Fatih Birol (center) and IEA Oil Analyst Toril Bosoni (right) present the findings from Oil 2019 in Houston at CERA Week on 11 March 2019 (Photograph: Getty Images)

The United States is set to drive the global oil supply growth over the next 5 years, thanks to the strength of its shale industry, triggering a rapid transformation of world oil markets, according to the International Energy Agency (IEA).IEA said that oil exports from the United States will overtake Russia and close in on Saudi Arabia, bringing greater diversity of supply, by the end of the forecast.While global oil demand growth is set to ease, in particular as China slows down, it still increases an annual average of 1.2 mb/d to 2024, according to the report, Oil 2019.

Norway Fund to Sell E&P Firms

© Inge / Adobe Stock

Norway's trillion-dollar sovereign wealth fund, the world's biggest, will sell its stakes in oil and gas explorers and producers but still invest in energy firms that have refineries and other downstream activities, according to a government plan.The proposal announced on Friday said the fund's stakes in integrated companies, such as Royal Dutch Shell, ExxonMobil and other majors involved in everything from exploration to selling fuel at the roadside, would not be sold.The state…

World Bank Targets Offshore Wind Markets

Image: Orsted

The World Bank Group announced a new program to advance the adoption of offshore wind energy in developing countries and emerging markets.The World Bank and  International Finance Corporation (IFC) will help these markets evaluate their offshore wind potential and provide technical assistance to develop a growing pipeline of projects that are ready for investment by renewable energy developers, said a release from the  international financial institution.The offshore wind industry has grown nearly five-fold since 2011…

Bad Choices cost Pemex $1 bln

Mexico's state-oil company Pemex burned through $665 million at its fertilizer unit, ignored consultants and made high-risk investments with no discernible business strategy, according to a devastating government audit of its 2017 operations.The report, published late on Wednesday, offers insight into how Pemex ended up creaking under $106 billion of debt during the six-year term of former President Enrique Pena Nieto.Mexico's Federal Audit Office (ASF) used unusually frank language in its assessment of Pemex's use of public resources…

Oil Rises After Saudi Pledge, Declining U.S. Inventories

© Oleg Zhukov / Adobe Stock

Oil prices rose on Wednesday after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production, and after an industry group reported a surprise decline in U.S. oil inventories.Brent crude, the global benchmark, was up $1.07, or 1.7 percent, at $63.49 a barrel at 9:55 a.m. EST (14:55 GMT), while U.S. West Texas Intermediate futures were up 91 cents, or 1.7 percent, at $54.01."The feel-good factor is back in play but oil bulls are by no means out of the woods yet…

Liberty Wins North Sea Pipe Contract

Largescale pipe ready for dispatch by rail from Liberty Pipes, Hartlepool (Photo: Liberty)

The Liberty pipe mills at Hartlepool has been awarded a multimillion-dollar contract to supply steel pipeline for North Sea gas.The mills, which were acquired and relaunched by Liberty, part of Sanjeev Gupta’s GFG Alliance, in late 2017, have just begun making the first batch of a total order for 12,000 metric tons of 24” steel pipe from global engineers Subsea7, that will be used in the Shell Shearwater gas field over 200 miles off the coast of Scotland.Over the next…

Rebuilding Confidence in Reactivated DP Assets

© bomboman/AdobeStock

The offshore energy sector, like any industry, is constantly subject to market cycles. Challenging conditions may lower demand, resulting in a significant number of resources such as offshore support vessels (OSVs) and drillships being deactivated for potentially extended periods. Over time, however, cycles reverse and demand increases for these same assets.Operators reduced expenditures on offshore exploration and production activities, with a subsequent lower demand for these offshore assets…

Shell Acquires 26% Stake in Hazira LNG

File Image: Hazira LNG and Port

Royal Dutch Shell announced that it has completed the acquisition of French oil major Total SA's 26 percent stake in the company that operates 5 million tonnes per annum-Hazira LNG terminal in Gujarat, India."Shell Gas, a subsidiary of Royal Dutch Shell plc, acquired 26% equity interest in the Hazira LNG and  Port Ventures from French energy major Total Gaz Electricité Holdings, to complete the acquisition," said a press statement.The move allows Shell to build an integrated gas value chain: supply from its global LNG portfolio…

ExxonMobil, IBM Partner on Quantum Computing

© Siarhei / Adobe Stock

Oil supermajor ExxonMobil announced Tuesday it has signed a partnership agreement with technology giant IBM to advance the potential use of quantum computing in developing next-generation energy and manufacturing technologies.The agreement sees ExxonMobil become the first energy company to join the IBM Q Network, a worldwide community of Fortune 500 companies, startups, academic institutions and national research labs working to advance quantum computing and explore…

Moody's Says Global Oil and Gas Heads into 2019 on Steady Footing

Pic: OPEC

The global Oil and natural gas prices will be volatile, but also range-bound in 2019, Moody's Investors Service says in its annual report outlining key credit themes in oil and gas for the year ahead.While the recent announcement that OPEC and Russia will cut production helps alleviate concerns about oversupply, the pivotal questions in the coming year are whether OPEC and Russia will maintain their production discipline and what might happen in June, when the current agreement expires.Moody's expects the medium-term price band for West Texas Intermediate (WTI) crude…

Christophe de Margerie Loads First Cargo from Third Train Yamal LNG

Ice-breaking LNG carrier Christophe de Margerie. Photo: Sovcomflot

The Arctic LNG carrier Christophe de Margerie, owned and operated by Sovcomflot, loaded the first batch of liquefied natural gas (LNG) produced at the third train of Yamal LNG plant, at the Port of Sabetta on the Yamal Peninsula.Dmitry Medvedev, the Russian Prime Minister, initiated the start of cargo operations via a video conference with the vessel’s Master Sergey Zybko.Dmitry Medvedev congratulated Yamal LNG on reaching full production capacity and noted:“This is a significant milestone for the entire Russian gas industry and…

Qatar to Invest USD 20 bln in US Energy Sector

Saad al-Kaabi, President & CEO. Photo: Saad Sherida Al-Kaabi

Peninsular Arab country Qatar has said that it plans to invest more than $20 billion in the US energy sector over the next five years.According to a report in Reuters, minister of state for energy affairs of the energy-rich Qatar Saad Sherida Al-Kaabi, who is also the  President & CEO of Qatar Petroleum, said he is looking to invest in US oil and gas sectors as well as unconventional resources.The report quoted Saad as saying: “North of USD20 billion will be invested…

Engie, EDPR, Sumitomo Pact to Build French Offshore Wind Farms

Image: EDP Renewables

French utility Engie and Spanish partner EDP Renovaveis (EDPR) announced their alliance with the Japanese group Sumitomo Corporation to build the French offshore wind farms of Dieppe-Le Tréport and Yeu-Noirmoutier.As part of the alliance, Sumitomo Corporation acquires a 29.5% equity stake in the French offshore projects (Dieppe Le Tréport and Yeu Noirmoutier) and will bring to the consortium its proven and complementary offshore wind expertise in terms of development…