NewBase 21 September 2023 Energy News issue - 1658 by Khaled Al Awadi_compressed.pdf

Copyright © 2023 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 21 September 2023 No. 1658 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Ministry of Energy and Infrastructure launches UAE Scenarios
Sketch transition to reach net-zero
WAM (Emirates News Agency)
The Ministry of Energy and Infrastructure (MoEI) has partnered with Shell to develop the UAE
Scenarios Sketch, which provides possible narratives for the UAE’s energy transition to reach net-
zero emissions by 2050 on a sector-by-sector basis.
Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, said, “Under the directives of
our wise leadership, the UAE is keen to develop clear pathways for its transition to clean energy to
achieve its net-zero commitment by 2050.
The UAE Scenarios Sketch could serve as a vital guiding tool for all stakeholders to utilize as
needed while transitioning to a clean and sustainable energy system. It is in line with the UAE’s
drive to diversify its energy sources, increase reliance on clean energy, and enhance energy
efficiency.”
Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at MoEI, said, “The sketch
provides data-backed scenarios that identify key areas that we must focus on and take forward with
our stakeholders to reach net zero by 2050.
It strikes a balance between meeting the rising energy demand and decarbonizing the energy sector
through leveraging emerging clean technologies. We, in the UAE, have set ambitious energy and
climate targets and we will harness the power of innovation and partnerships to achieve them.”
For his part, Ali Al Janabi, Country Chair of Shell UAE and Iraq, said, “This collaboration with MoEI
reaffirmed the UAE’s determination to meet its net zero by 2050 goal, and the role everyone can
play to achieve this. Getting there will involve heavy planning for what the energy systems of
tomorrow may look like, based on decisions taken today. And the Sketch can be one of the tools
that enable that planning.”
ww.linkedin.com/in/khaled-al-awadi-80201019/
The UAE Scenarios Sketch could serve as a vital guiding tool for all
stakeholders to utilize as needed while transitioning to a clean and
sustainable energy system

Oman’s OQ Gas Networks set to raise up to $771 million in IPO
Source: Oman News Agency , John Benny
Oman’s OQ Gas Networks, the pipeline business of state oil company OQ, aims to raise up to 297
million Omani riyals ($771 million) from its initial public offering in what could be the country's largest
listing.
OQ set the price range for the IPO of OQGN at 131 baisas to 140 baisas per share, which would
give the company a valuation of up to 606 million riyals ($1.57 billion), according to a statement on
the Capital Market Authority's website on Sunday.
The state-run company is selling about 2 billion shares, representing a 49 per cent stake in OQGN
through Oman Energy Trading Company and Oman Oil Services Limited.
Saudi Omani Investment Company, a unit of the Public Investment Fund, as well as Qatar
Investment Authority subsidiary Falcon Investments and gas infrastructure company Fluxys
Belgium, are each taking 10 per cent of the offer, OQGN said in a separate statement on Monday.
The offer is the “largest in the history of the Omani capital market in terms of volume and market
value”, the CMA statement said. The book-building period will run from September 26 until October
9 for institutional investors, while the retail offer is expected to close on October 5.
OQGN's shares are expected to commence trading on the Muscat Stock Exchange on October 24.
“The company’s high cash flow visibility, underpinned by a robust regulatory environment and
experienced leadership team were critical in determining our investment,” said Muteb Al Shathri,
acting chief executive of the Saudi Omani Investment Company.

“We have confidence in OQGN’s development and trajectory, as well as in Oman as an attractive
investment destination.” The company holds a natural monopoly over Oman's natural gas transport
infrastructure and is the exclusive owner and operator of the company’s natural gas transportation
network.
The network involves a system of pipelines, metering facilities, compressor stations, gas supply
stations and block-valve stations. Last year, the company transported 39.4 billion cubic metres of
gas from six producers to about 130 consumers through 4,031km of pipelines, supported by three
compressor stations and 25 supply stations.
OQGN reported a more than 41 per cent rise in its first-half profit to 33.1 million riyals as total income
grew 16.5 per cent to 85 million riyals. OQGN is set to be the second IPO from its parent company
OQ amid Oman’s privatisation programme as the Gulf region’s smallest oil producer continues to
focus on the diversification of its economy.
In March, OQ floated its oil-drilling unit Abraj Energy Services after raising $244 million in what was
Oman’s biggest listing in more than a decade. OQ, which is owned by the Oman Investment
Authority, intends to privatise several assets in the coming five years, Mansoor Al Abdali, OQGN’s
managing director told The National in an interview this month.
OQGN aims to expand its business and enter into hydrogen and “be a player in the CCUS [carbon
capture, utilisation and storage]”, he said. It signed a preliminary agreement to “position the
company as an infrastructure player for transportation of hydrogen,” he added.
There has been an IPO boom in the Middle East, with a number of companies listing their shares
on regional stock markets such as the Abu Dhabi Securities Exchange, the Dubai Financial Market
and Saudi Arabia’s Tadawul as economies recover from the coronavirus-induced slowdown on the
back of higher oil prices and government reforms. Middle East IPOs raised more than $23 billion in
2022 from 48 listings, compared with $7.52 billion from 20 offerings in the previous year.
That was the highest share for the Gulf region after 2019 when Saudi Aramco went public in a $29
billion offering, the world’s largest.

China imported record volumes of crude oil in 1st half of 2023
China General Administration of Customs, as compiled by Bloomberg, L.P.
Record volumes of crude oil were imported into China during the first half of 2023 because of
refinery expansions in the country and initiatives to reopen the economy after the government
eased COVID-19 mobility restrictions.
China imported an average of 11.4 million barrels of crude oil per day (b/d) in the first half of 2023,
a 12% increase from 2022’s annual average of 10.2 million b/d.
In the first half of 2023, China's crude oil imports increased from 8 of the 10 top countries it imported
crude oil from in 2022, according to China’s General Administration of Customs data.
China sourced much of the additional crude oil it imported in the first half of 2023 from Russia, Iran,
Brazil, and the United States. Compared with 2022 averages, China’s imports from Russia
increased by 23% (400,000 b/d), from Saudi Arabia by 7% (130,000 b/d), and from Brazil by 49%
(250,000 b/d).
The 2.6 million b/d of crude oil that China imported from Russia in June is the largest volume China
has ever imported from any country in any month. China’s imports from the United States in the first
half of 2023 more than doubled from 2022.
Customs data also indicate that imports from Malaysia increased 330,000 b/d (46%) to 1.0 million
b/d in the first half of 2023. During this period, the import volume from Malaysia exceeded total
production in Malaysia. Industry analysts indicate that much of the oil that was shipped from Iran to

China was relabeled as originating from countries such as Malaysia, the United Arab Emirates,
and Oman to avoid sanctions.
Note: First half of 2023=January to June. UAE=United Arab Emirates. Many imports attributed to
Malaysia, the UAE, and Oman originated in Iran and were relabeled to avoid detection from customs
authorities.
According to its General Administration of Customs, refiners in China used the crude oil to process
a record 14.7 million b/d of crude oil in the first half of 2023, an 8% increase from 2022’s annual
average of 13.5 million b/d and more than China’s record-high annual average, set in 2021.
New refinery capacity was one reason for the record crude oil processing. The 320,000-b/d
Shenghong Petrochemical refinery in Lianyungang began operations in November 2022, and the
400,000-b/d PetroChina Jieyang refinery began trial runs in February 2023.

India: TotalEnergies invest $300 mln in JV with Adani Green Energy
Reuters
France’s TotalEnergies and a subsidiary of India’s Adani Group have agreed to form a joint venture
comprising solar and wind power assets with a capacity of 1,050 megawatts.
The portfolio of the new venture, equally owned by the two companies, will include operational
projects as well as assets under construction or in the development phase, TotalEnergies said on
Wednesday.
Adani Green Energy will contribute the assets to the new company, while TotalEnergies will invest
$300 million in equity to support their development.
“TotalEnergies has been developing, notably through AGEL, its presence in the Indian renewable
power market, a very interesting market by its size and growth and the early development of a
merchant market,” said Patrick Pouyanne, TotalEnergies’ chairman and chief executive.
“This new joint venture with AGEL will enable us to speed up our development through direct
access to a large portfolio of assets.” TotalEnergies holds a 50 per cent stake in Adani Total
Private and a 37.4 per cent stake in Adani Total Gas, which develops distribution networks to
supply piped natural gas.
The European energy major also picked up a 20 per cent stake in Adani Green Energy in 2021.
Before that, TotalEnergies formed a 50-50 joint venture with the renewable energy company in
2020 to operate solar projects.

“We are delighted to extend our long-term partnership with TotalEnergies in AGEL. The
investment will further strengthen the pivotal role played by AGEL in India’s glide path to
decarbonisation,” said Gautam Adani, Adani Group chairman.
The completion of the deal will depend on regulatory approvals. This month, Adani Group said its
financial status remained unaffected despite “misleading” reports, in its latest rebuttal to a report
from Hindenburg Research in January.
The Ahmedabad-based conglomerate has “rebounded strongly since the release of a short-selling
report in January 2023", it said.
The Hindenburg report accused the Adani Group of stock manipulation and improper use of offshore
tax havens, as well as raising concerns about its high level of debt. Adani Group has vigorously
denied all the allegations.
In February, TotalEnergies said its exposure to Adani Group was limited to $3.1 billion, representing
about 2.4 per cent of the company's capital employed.
“TotalEnergies has not performed any re-evaluation in its accounts of its stakes in the listed entities
ATGL [Adani Total Gas] and AGEL in relation to the increase in their stock values,” the company
said at the time.
TotalEnergies' investments in Adani Group companies were undertaken in “full compliance” with
Indian laws and the company's internal governance policy, it said.
TotalEnergies already owns about 20% of Adani Green. This is its first big investment with the Indian
company since January, when U.S. short seller Hindenburg Research alleged improper dealings
and use of tax havens by Adani Group, which the group has denied.
Adani Green will contribute assets to the joint venture, it said in a statement, adding that the JV will
help in achieving the company's target of having 45 GW of renewable energy capacity by 2030.
Adani Green said its board had also approved signing a binding term sheet with Total to modify
certain terms of investment in the JV, named Adani Green Energy Twenty Three.

UK: NSTA grants carbon storage licences to Acorn
Source: Acorn
Acorn has received licences from the North Sea Transition Authority for the Acorn East and East
Mey CO2 stores, expanding its transport and storage system’s capacity deep beneath the North
Sea to around 240 megatonnes (Mt) of CO2.
Awarded its first storage licence in 2018, Acorn will provide the transport and storage network for
the Scottish Cluster to capture and permanently store CO2 emissions 100km offshore, in geological
formations 2.5km below the seabed.
A spokesperson for Acorn said: 'These extensive areas of subsea acreage are key elements in
Acorn’s long-term strategy. The North Sea Transition Authority’s award of these carbon storage
licenses is welcome news, as we continue to respond to Government’s Track-2 process.
'Acorn’s stores, 2.5km below the seabed some 100km north-east of Peterhead on the
Aberdeenshire coastline, have the potential to store c.240 million tonnes of CO2.'
The Acorn Project and Scottish Cluster connections
The Acorn Development Partners – lead developer Storegga, technical developer Shell, Harbour
Energy, and North Sea Midstream Partners – are currently preparing for detailed commercial
negotiations with Government in Track-2.
Prime Minister Rishi Sunak confirmed Acorn had entered the Track-2 process in July 2023, making
it one of four UK Government Carbon Capture, Usage and Storage (CCUS) clusters selected to
deliver storage of 20-30 Mt of CO2 per year by 2030.

Before 2030, the Scottish Cluster could include nine different UK CO2 sources, spanning a variety
of high-emitting sectors including industrial sites and power generation plants, as well as new
hydrogen generation plant technology.
Primary early sources of CO2 include: two of the gas terminals at the St Fergus Gas Complex; SSE
and Equinor’s Peterhead Carbon Capture Power Station; a new blue hydrogen plant supplying
INEOS and Petroineos sites at Grangemouth; and ExxonMobil and Shell’s facilities at Mossmorran.
Peterhead Port provides an additional opportunity for shipped emissions – increasing domestic
reach and opportunities for international
emitters, such as European and other
international emitters, to utilise UK
storage, further reducing costs for UK
emitters.
The Scottish Cluster can help enable a
just transition, delivering a sustainable
future for hard-to-abate sectors,
protecting jobs, supporting
communities and creating value adding
activity for Scotland and the UK.

NewBase September 21-2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls as US rate hike expectations offset tight supply outlook
Reuters + NewBase
Oil prices fell in early Asian trade on Thursday, after posting the largest fall in a month in the previous
session, as U.S. interest rate hike expectations offset the impact of drawdowns in U.S. crude
stockpiles.
Brent futures for November delivery were down 71 cents, or 0.76%, to $92.82 a barrel by 0608
GMT. U.S. West Texas Intermediate crude (WTI) fell 70 cents, or 0.78%, to $88.96, the lowest since
Sept. 14.
"The Fed kept rates unchanged at yesterday's FOMC meeting, as widely expected. However, it was
still seen as a hawkish pause, which put some pressure on risk assets" such as oil, said ING
analysts in a client note.
The U.S. Federal Reserve maintained interest rates after its Federal Open Market Committee
(FOMC) meeting, but stiffened its hawkish stance with a rate increase projected by year-end which
could dampen economic growth and overall fuel demand.
Oil price special
coverage

Fed policymakers still see the bank's benchmark overnight rate range peaking this year at 5.50% to
5.75%, a quarter of a percentage point above the current range.
The hawkish stance also led to the U.S. dollar surging to its highest since early March, placing
downside pressure on oil prices. A stronger dollar typically makes commodities such as oil more
expensive for buyers using other currencies.
Energy markets reacted little to data from the U.S. Energy Information Administration (EIA) on
Wednesday showing crude inventories fell in line with expectations last week, with some analysts
saying the decline was smaller than they expected.
"EIA data showed U.S. stockpiles fell 2.14 million barrels last week, well short of the 5.25 million
barrel drop reported by the American Petroleum Institute. The disappointing inventory drawdown
gave impetus for traders to lock in profits following the 10% gain since the start of the month," ANZ
analysts said in a note.
The stock draw was mainly driven by strong oil exports, while gasoline and diesel inventories were
drawn down as refiners began annual autumn maintenance, the EIA said in a weekly report.
However, price falls were limited by continuous concern on tight supply globally entering the fourth
quarter, with crude stocks at Cushing - the WTI delivery hub - at their lowest since July 2022 and
production cuts continuing by the Organization of the Petroleum Exporting Countries and allies,
together called OPEC+.
Some analysts still expect prices to remain supported in the near term.
"A few more drawdowns could revive talks of tanks reaching their operational minimum ... With the
production cuts by Saudi Arabia and the broader OPEC+ alliance expected to remain for the rest of
the year, inventories will likely touch record lows," said ANZ analysts.
"Our balance shows a deficit of more than 2 million barrels per day through the fourth quarter of this
year," said ING analyst Warren Patterson. his tightness, along with strong refinery margins (largely
a result of tightness in middle distillates) suggests that oil prices are likely to see further strength in
the short term," he said.

U.S Changes in U.S. residential natural gas prices lag spot prices
Data source: U.S. Energy Information Administration, Short-Term Energy Outlook
Monthly average natural gas wholesale spot prices at the U.S. benchmark Henry Hub have
been generally declining so far in 2023, but these relatively low prices do not immediately translate
into lower retail prices for residential consumers. Changes in retail natural gas prices lag changes
in wholesale natural gas prices, largely due to the nature of utility regulation. Over longer periods,
changes in natural gas wholesale and retail prices are more closely correlated.
Residential consumer prices for natural gas have two major components: costs incurred to buy
wholesale natural gas and the related transportation and distribution charges. Because the fixed
costs are spread over the smaller volumes used by customers in warm weather, residential natural
gas prices are usually highest in the summer and lowest in the winter on a per unit basis when all
charges are combined.
Local distribution companies
(LDCs). LDCs are the utility companies
that serve residential, commercial,
industrial, and electric power customers.
They purchase natural gas from the
wholesale market to deliver to those
customers.
LDCs often buy natural gas months ahead
of when customers need it to limit
exposure to near-term price volatility and

ensure adequate supplies. As a result, the natural gas price an LDC pays can reflect the price for
natural gas purchased in previous periods.
LDCs also work to secure guaranteed transportation on pipelines and reserve storage capacity to
help limit price risk and ensure supply.
Public utility commission (PUC). The state PUC regulates residential natural gas prices. Rate
changes may lag changes in the LDC's costs of purchasing natural gas due to the requirements set
by state PUCs. Because companies regulated by PUCs as utilities—including most residential
natural gas sales in the United States—are generally not allowed to earn or lose money from natural
gas commodity sales, PUCs require LDCs to adjust these rates at some regular interval through
purchased gas adjustment (PGA) charges included in utility bills.
How often LDCs are required to calculate their PGAs can vary from state to state and from company
to company. In general, in times of stable prices, the frequency of these calculations can range from
annually to as often as monthly.
In periods of high spot price volatility, such as the record volatility in 2022, many PUCs allow LDCs
to file motions to make more frequent adjustments. This flexibility allows utility natural gas cost
changes to be reflected in smaller increments rather than all at once.
Additional charges. In some cases, such as during an extreme weather event, LDCs will request
the ability to add additional charges to utility bills. For example, natural gas spot prices
approached record highs following Winter Storm Uri in February 2021, especially in the Midwest.
Many LDCs in states affected by the storm filed motions with their states’ PUCs detailing plans to
recover the extremely high natural gas costs they had incurred following the winter storm. The goal
of these plans was to spread the high natural gas costs to consumers over several years.

Saudi energy minister says oil supply cuts are not about
‘jacking up prices,’ as Brent hovers at $95 a barrel
CNBC- Ruxandra Iordache
Saudi Arabia’s energy minister said Riyadh and Moscow’s decision to extend crude oil supply cuts
is not about “jacking up prices,” as Brent futures hover near $95 a barrel and analysts predict further
rises into triple digits.
“We can reduce more, or we can increase, that has been a subject that we want to make sure that
the messaging is clear, that it’s not about, again, this jacking up prices,” Saudi Energy Minister
Prince Abdulaziz bin Salman said Monday at the World Petroleum Congress in Calgary, Alberta.
“It’s about … making the decision at the right time, when we have the data, and when we have the
clarity that would make us in much more of a comfort zone to take that decision.”
Some members of the Organization of the Petroleum Exporting Countries and its allies, known as
OPEC+, are implementing 1.66 million barrels per day of combined voluntary declines — which falls
outside of unanimously agreed OPEC+ policies — until the end of 2024. Topping this, Saudi Arabia
and Russia announced they will apply respective voluntary declines of 1 million barrels per day of
production and 300,000 barrels per day of exports until the end of the year.
Saudi Arabia is the world’s largest seaborne oil exporter and relies on hydrocarbon revenues to
support so-called giga-projects designed to diversify its economy.
Saudi energy minister defends OPEC+ supply cuts as oil prices surge
Shrugging off the inertia of the first half of the year, oil prices have gained ground amid supply cut
announcements in recent months, as the market braces for a potential volume deficit in the latter
part of 2023.
ICE Brent crude futures with November delivery were trading at $95.21 per barrel at 5 p.m. London
time Tuesday, up 78 cents per barrel from the Monday close price. Front-month October NYMEX
Saudi Arabia’s energy minister said Riyadh and Moscow’s decision to extend crude oil supply cuts is
not about “jacking up prices.”
“We can reduce more, or we can increase, that has been a subject that we want to make sure that the
messaging is clear, that it’s not about, again, this jacking up prices,” Prince Abdulaziz bin Salman said
Monday.
Saudi Arabia and Russia announced they will apply respective voluntary declines of 1 million barrels
per day of production and 300,000 barrels per day of exports until the end of the year.

WTI futures were at $92.51 per barrel, up $1.03 per barrel from the Monday settlement. The
increases have rallied some analysts around speculation of a short-term return to oil prices at $100
per barrel.
Asked on the possibility of hitting that threshold, Chevron CEO Mike Wirth on Monday admitted oil
prices could cross into triple digits in a Bloomberg TV interview.
“Sure looks like it. We’re certainly moving in that direction. The momentum, you know, supply is
tightening, inventories are drawing, these things happen, gradually you can see it building. And so
I think, you know, the trends would suggest we’re certainly on our way, we’re getting close,” he said,
acknowledging an impact on the world economy. “I think the underlying drivers to the economy in
the U.S. and frankly globally remain pretty healthy. I think it’s a drag on the economy, but one that
thus far, I think the economy has been able to tolerate.”
Energy prices have repeatedly underpinned higher inflation in the months since the war in
Ukraine and Europe’s gradual loss of access to sanctioned Russian seaborne oil supplies.
Peak feud
Abdulaziz once more struck out at Paris-based watchdog the International Energy Agency, whose executive
director, Fatih Birol, last week said in a Financial Times op-ed that “the IEA was wary of such premature
calls, but our latest projections show that the growth of electric vehicles around the world, especially in China,
means oil demand is on course to peak before 2030.”
“None of the things that they were warning about has happened. And name me any time that their forecasts
were as accurate as one would have hoped for. But, you know, they’ve moved now from being forecasters
and assessors of market to one of political advocacy,” Abdulaziz said Monday.
The IEA did not immediately respond to a CNBC request for comment.
Amin Nasser, CEO of Saudi state-controlled oil giant Aramco, likewise on Monday said that the notion of
peak oil demand is “wilting under scrutiny,” noting “many shortcomings in the current transition approach that
can no longer be ignored” and stressing that carbon capture “can no longer be the bridesmaid of transition.”
Climate change positioning has been a key hurdle of the increasingly fraught relationship between Saudi
Arabia and the IEA — in a landmark 2021 report, the energy watchdog argued for no investment in new fossil
fuel supply projects, if the world is to stave off an incoming climate crisis. Riyadh meanwhile champions a
dual approach to decarbonization with simultaneous investment in oil and gas and renewables, in a bid to
avoid an energy deficit.
U.S. stance
Higher prices at the pump have historically put pressure on the administration of U.S. President Joe Biden,
which in October last year waged an intense war of words over the OPEC+ production strategy that levied
accusations of coercion against Riyadh.
But Washington has stayed comparatively silent over the latest OPEC+ reductions, even as Biden mounts
his campaign for reelection next year. The U.S. must balance domestic interests against foreign policy
objectives to normalize relations between Israel and Saudi Arabia, while Riyadh has increasingly slipped
Washington’s influence after resuming ties with Iran in China-brokered diplomacy earlier this year and
earning an invitation to the China- and Russia-backed emerging economies group BRICS in August.
In a further blow to the U.S., Saudi Arabia remains tightly bound to Western-sanctioned OPEC+ heavyweight
producer Russia. Most recently, the Kremlin said Russian President Vladimir Putin and Saudi Arabia’s
Crown Prince Mohammed bin Salman spoke by phone on Sept. 6 and “noted that specific agreements on
reducing oil production, combined with voluntary obligations to limit raw materials deliveries, made it possible
to stabilize the global energy market.”

NewBase Specual Coverage
The Energy world –September 04 -2023
CLEAN ENERGY
Saudi oil delegation at World Petroleum Congress says we're
nowhere near peak fossil fuel
Paula Duhatschek, Kyle Bakx · CBC News ·
As hundreds of oil and gas executives and government representatives descend on Calgary for
the World Petroleum Congress, a delegation from Saudi Arabia is warning of the consequences
of ditching oil and preaching the need for a more realistic energy transition and more
investment in oil and gas.
The country has the largest delegation at the conference of any country or company, led by
Energy Minister Abdulaziz bin Salman Al Saud, who told the crowd of delegates that the sector
can't solely focus on climate change.
Alberta Premier Danielle Smith, left, tours the Saudi Arabia pavilion with Saudi Arabia Minister
of Energy Abdulaziz bin Salman Al Saud at the World Petroleum Congress in Calgary
Monday. (The Canadian Press)
"If we really want to be faithful to the idea that we will be transitioning, we have to also make
sure that transitioning happens whereby you end up attending to energy security, ensuring
that energy is still affordable, and does not act as an impediment to economic prosperity and
growth," he said while onstage.

"And if you don't do all of the above, I'm sorry, but I don't think you could attend to climate
change issues."
Alberta premier brands federal minister's net-zero speech at oil conference 'tone-deaf'
Net zero?
The pitch by the Saudi delegation runs somewhat counter to the net-zero theme of this year's
World Petroleum Congress, though it's shared by many in attendance. Alberta
Premier Danielle Smith made similar comments this week, along with the head of ExxonMobil,
one of the world's largest publicly traded international oil and gas companies.
But outside the walls of the World Petroleum Congress there's pushback to this narrative. A
recent, bombshell op-ed from the International Energy Agency (IEA) suggests peak demand for
fossil fuels will happen within the next decade and that, while timelines vary, oil, gas and coal
are all on their way out.
The two perspectives exemplify the fundamental debate that surrounds the oil and gas
industry, as some governments and environmental groups pressure companies to move
faster on climate change — especially given their record profits — while executives and some
politicians caution the road to net-zero is a slow, windy path without a clear road map.
Amin Nasser, CEO of Saudi Aramco, speaks on stage at the World Petroleum Congress in
Calgary. (Kyle Bakx/CBC)

Just days before the World Petroleum Congress kicked off, the IEA warned how the world's
appetite for oil and other fossil fuels may peak before the end of this decade.
It's the first time the global energy watchdog has predicted peak fossil fuels will arrive so soon.
Fatih Birol, the IEA's head, wrote in the Financial Times last week that the projections would
show that "the world is on the cusp of a historic turning point."
"Peaks for the three fossil fuels are a welcome sight, showing that the shift to cleaner and more
secure energy systems is speeding up and that efforts to avoid the worst effects of climate
change are making headway," he wrote.
Still, Birol warned the IEA's forecast downturn is nowhere near steep enough to put the world
on a path to limiting temperature rises to 1.5 C above pre-industrialized levels, which is
considered important to avoiding a climate catastrophe.
ExxonMobil CEO Darren Woods participates in a conference panel discussion as part of the
World Petroleum Congress in Calgary. (Kyle Bakx/CBC)
But speaking to conference delegates Monday, the president and CEO of Saudi Arabia's state-
owned oil and gas company pushed back against the idea that the world is anywhere close to
peak fossil fuel demand.

"The reality on the ground is that despite concerted effort to move to alternatives, global coal
consumption is at record levels … with demand still robust," said Amin Nasser, the company's
president and CEO, while accepting an industry leadership award at the conference.
Oil consumption also remains strong, he said, while natural gas has become an increasingly
important "bridge fuel." He said renewables still only account for a relatively small share of
global energy consumption and new solutions like green hydrogen are currently pricey.
'The world wobbles'
While alternatives like hydrogen, wind and solar are important, Nasser said, he warned that
phasing out conventional fuels too quickly could put global energy and security at risk.
"As the recent energy crisis has shown, compounded by the conflict in Ukraine, the world
wobbles if these realities are ignored or wished away, and the public anger we have already
seen could ultimately derail climate ambition and action themselves," he said.
Delegates from Saudi Arabia chat in front of an image of the Canadian Rockies at the World
Petroleum Congress in Calgary Monday. (The Canadian Press)
On-stage at the conference, Darren Woods, chair and CEO of ExxonMobil, made a similar
point.
"There seems to be somewhat wishful thinking that we're gonna flip a switch and we'll go from
where we're at today to where we'll be tomorrow," he said. "If we don't maintain some level of

investment in the industry, you end up running short of supply, which leads to high prices and
some of the effects that Amin referenced."
The IEA, for its part, agrees that demand for fossil fuels will still see peaks and valleys in the
years to come, and that demand will vary country by country. Still, it predicts the era of
"relentless growth" for the fossil fuel sector is coming to an end.
Different perspectives on oilpatch
The IEA's projection and industry comments at the conference in Calgary show the different
points of view that exist about the future of the oilpatch, said John England, an energy analyst
with Deloitte Global.
Oil and gas producers are taking different strategies to try to meet the world's growing demand
for oil, while also trying to cut emissions.
"We can't stop investing in hydrocarbons. We still need to invest in those, but while we're
investing in these newer energies. And so I think it's just trying to find the balance," he said in
an interview with CBC News.
Smith tours the Saudi Arabia pavilion at the World Petroleum Congress in Calgary
Monday. (The Canadian Press)

North American oil prices surged Monday to more than $90 US per barrel, a nine-month high.
Those prices give the industry the financial strength to make investments to reduce emissions
and invest in low-carbon sources of energy. However, the sector has faced criticism from
environmental groups for not using enough of its profits to make meaningful investments to
drive down greenhouse gases.
Environmentalists unimpressed
2023 was Canada's worst wildfire season on record, while record temperatures
were reached this summer around the globe.
Environmental groups have protested outside the gathering.
"Now that the evidence is clearer than ever that demand for fossils will peak this decade, major
oil producers will do anything to delay that transition," said Julia Levin, associate director of
national climate at Environmental Defence Canada.
The science is clear about what needs to be done, Natural Resources Minister Jonathan
Wilkinson said during a speech at the conference, urging the industry to prioritize climate
change.
"As a global community we need to achieve net-zero emissions by 2050 and we need to make
meaningful progress by 2030. We cannot get to net-zero by 2050 if we begin our journey in
2040."
The World Petroleum Congress is led by WPC Energy, which is an organization of nearly 65
member countries from around the world, including both Organization of the Petroleum
Exporting Countries (OPEC) and non-OPEC countries.
The event, which has not been held in Canada since 2000, is expected to draw in 15,000 visitors
from more than 100 countries this week.
Paula Duhatschek , Reporter/Editor
Paula Duhatschek is a reporter with CBC Calgary who previously worked for CBC
News in Kitchener and in London, Ont. You can reach her at
paula.duhatschek@cbc.ca.

NewBase Energy News 21-September - Issue No. 1658 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.
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.

NewBase 21 September 2023 Energy News issue - 1658 by Khaled Al Awadi_compressed.pdf

NewBase 21 September 2023 Energy News issue - 1658 by Khaled Al Awadi_compressed.pdf

NewBase 21 September 2023 Energy News issue - 1658 by Khaled Al Awadi_compressed.pdf

Recommandé

Contenu connexe

Similaire à NewBase 21 September 2023 Energy News issue - 1658 by Khaled Al Awadi_compressed.pdf

Similaire à NewBase 21 September 2023 Energy News issue - 1658 by Khaled Al Awadi_compressed.pdf(20)

Plus de Khaled Al Awadi

Plus de Khaled Al Awadi(20)

Dernier

Dernier(20)

NewBase 21 September 2023 Energy News issue - 1658 by Khaled Al Awadi_compressed.pdf