Kazakhstan Makes $50 Billion Bet On Green Hydrogen (31 October 2022): By Eurasianet - Best known as an oil and gas hub, western Kazakhstan hopes to become a leading global exporter of clean energy. The government has signed a $50 billion deal with European renewables group Svevind to build one of the world’s five largest green hydrogen production facilities in Mangystau Region, President Kassym-Jomart Tokayev’s office announced on October 27. Hyrasia One will use electricity generated by solar panels and wind turbines to separate hydrogen gas from water. It aims to start production by 2030 and produce 2 million tons annually from 2032. That is equivalent to one-fifth of the EU’s 2030 target for green hydrogen imports – although there would be logistical challenges transporting the gas from Kazakhstan to Europe. (Source: Oil Price)
U.S. Increases Its Bets On Tidal Power (30 October 2022): By Felicity Bradstock - As part of its major renewable energy plans to tackle climate change, the U.S. government is investing heavily in the future of tidal power. Meanwhile, Europe is also funding the development of tidal energy technology to help advance the renewable energy sector. This initial funding period in research and development is expected to contribute to the widescale rollout of tidal energy projects worldwide within the next decade. Tidal energy is produced in three principal ways. The first is tidal barrages, which use a dam-like structure that juts out into the ocean to create a tidal basin. Sluice gates on the barrage control water levels and flow rates, allowing the area to fill when the tide is high and empty into an electricity turbine system to produce energy. The second is tidal turbines, which use blades to turn a rotor that powers a generator. These can be installed on the sea floor in strong tidal waters, but this requires the equipment to be extremely heavy-duty. The third is tidal fences, which use vertical axis turbines mounted on a fence or on the seabed to allow water to pass through turbines and generate electricity. (Source: Oil Price)
Is Saudi Arabia’s Neom Project Too Ambitious? (27 Octorber 2022): By Felicity Bradstock - Earlier this year, Saudi Arabia announced plans to dedicate an $80 billion fund to develop the Neom megaproject, aimed at establishing a futuristic living space in the northwest of the country. This forms part of Saudi Arabia’s Vision 2030, which aims to diversify the national economy and make the country less reliant on its oil revenues. Saudi Arabia plans to develop Neom as a mega clean-energy city on a plot of land the size of Belgium. The space is expected to eventually become self-sufficient and provide a return on investment of between 13 and 14 percent. It will have no cars, roads, or greenhouse gas emissions and will be powered by 100 percent renewable energy, with 95 percent of the land being preserved for nature. (Source: Oil Price)
Tackling The Biggest Challenges Facing EV Adoption (26 October 2022): By Brian Westenhaus - University of Texas at Austin researchers are tackling two of the bigger challenges facing electric vehicles: limited range and slow recharging. The researchers fabricated a new type of electrode for lithium-ion batteries that could unleash greater power and faster charging. They did this by creating thicker electrodes – the positively and negatively charged parts of the battery that deliver power to a device – using magnets to create a unique alignment that sidesteps common problems associated with sizing up these critical components. The result is an electrode that could potentially facilitate twice the range on a single charge for an electric vehicle, compared with a battery using an existing commercial electrode. (Source: Oil Price)
Nanotech Breakthrough Sets World Record For Solar Cell Efficiency (25 October 2022): By Brian Westenhaus - Tandem solar cells made of perovskite and silicon enable significantly higher efficiencies than silicon solar cells alone. By the end of 2021, teams at HZB (Helmholtz-Zentrum Berlin für Materialien und Energiehad) presented perovskite silicon tandem solar cells with an efficiency close to 30 percent. This value was a world record for eight months, a long time for this hotly contested field of research. In the journal Nature Nanotechnology, the scientists described how they achieved the new record value over 31% with nanooptical structuring and reflective coatings. (Source: Oil Price)
Middle East Producers Cautious To Hike Prices After OPEC+ Production Cuts (24 October 2022): By Gerald Jansen - Heading into November 2022 with the firm knowledge that intra-OPEC+ cohesion has been restored to the fullest and the oil group has been given a new long-term ambition, pricing decisions for Middle Eastern cargoes loading next month faced an uncanny dilemma. A sizable supply cut would definitely merit a corresponding OSP hike, however, what to do with ubiquitous fears of a still-unseen recession coming our way? After all, the US Federal Reserve is getting increasingly worried about not seeing signs of inflation easing and by now is seen to reach a consensus target policy rate of 4.5% by March 2023. Likewise, China’s oft-mooted return from its lockdown frenzy has not been particularly stellar – the CCP summit in Beijing has demonstrated that the country’s political path forward is much more fleshed out than its economic one. (Source: Oil Price)
Advanced Plastic Recycling Could Cut Need For Hydrocarbons Significantly (23 October 2022): By Brian Westenhaus - City College of New York Grove School of Engineering released a new report which examined advanced plastic recycling. The report concluded that advanced recycling helps avoid climate impacts, reduces demand for energy resources, and offers key tools for expanding the circular economy. The report is titled “Quantitative Comparison of LCAs on the Current State of Advanced Recycling Technologies.” The report was authored by Dr. Marco J. Castaldi, professor of chemical engineering and director of CCNY’s Earth Engineering Center (EEC), and EEC research associate Lauren Creadore. The report is well worth your time, the Executive Summary alone is quite informative. (Source: Oil Price)
FERC Sees High LNG Prices This Winter (20 October 2022): By Julianne Geiger - All regions in the United States have adequate energy resources for a “normal” winter, but that doesn’t mean all regions will coast through winter without disruption, the Federal Energy Regulatory Commission said on Thursday in its new annual winter assessment report. Calls for unseasonably warm temperatures across some parts of the United States should allow all regions of the United States to escape the winter heating season unscathed, but any extreme weather events this winter could lead to temporary surges in fuel demand, threatening the stability of power grids. In the six New England states, for example, power generation is “adequate”, but fuel constraints could be a headache. FERC sees Texas as having “robust” capacity, but is limited by its inability to import power from neighboring states. (Source: Oil Price)
What To Expect For Q3 Energy Earnings (19 October 2022): By Alex Kimani - The energy sector has enjoyed bumper profits in the current year, with Big Oil companies setting records right, left and center. ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX) and Shell (NYSE: SHEL) together brought in $46 billion in earnings in the second quarter, with all three setting new records for quarterly earnings. However, the outlook going forward is not quite as rosy. It’s early innings into the earnings season, with just 7% of S&P 500 companies having reported third-quarter 2022 earnings. Unlike the first two quarters of the year, the current one is shaping up as another disappointing show despite 69% of S&P 500 companies having reported a positive EPS surprise and 67% having reported a positive revenue surprise. (Source: Oil Price)
Will Bioenergy Ever Be Competitive? (18 October 2022): By Brian Westenhaus - A study led by researchers at the Center for Advanced Bioenergy and Bioproducts Innovation (CABBI) improves understanding of leaf functional relationships and provides valuable new information for scientists modeling the productivity of C4 bioenergy crops. The research team found that miscanthus and sorghum – both C4 plant species – occupy a distinct niche of the leaf economics spectrum (LES), with greater photosynthetic rates and nitrogen use efficiency than more common C3 plants. The study, published in Plant, Cell & Environment, was led by Postdoctoral Researcher Shuai Li of CABBI, a U.S. Department of Energy-funded Bioenergy Research Center. Li works with Lisa Ainsworth, a Plant Physiologist with the U.S. Department of Agriculture’s Agricultural Research Service (USDA-ARS) Global Change and Photosynthesis Research Unit and Adjunct Professor of Plant Biology and the Carl R. Woese Institute of Genomic Biology (IGB) at the University of Illinois Urbana-Champaign. (Source: Oil Price)
The Global Energy Crisis Is Contributing To A Nuclear Renaissance (17 October 2022): By ZeroHedge - Nuclear continues to be on an upswing globally. Most recently, we learned that Japan is now considering extending its 60 year limit on the operation of plants and is even considering submitting legislation on the issue as soon as next year, according to U.S. News and Nikkei. The rules could allow "repeated extensions", should they be approved by the country's Nuclear Regulation Authority. Currently, regulations put in place in reaction to the Fukushima disaster say that reactors "can be operated for 40 years, followed by a 20-year extension if approved by regulators". As of now, four of the country's 33 reactors have been approved for up to 60 years. (Source: Oil Price)
Is Wind Energy Becoming Too Expensive? (16 October 2022): By Felicity Bradstock - General Electric (GE) plans to make major job cuts in its U.S. wind operations and will consider its other markets too as windfarms are proving to be a major expense in the wake of Covid and the Russian invasion of Ukraine. Continued supply chain disruption and the high cost of wind turbines are deterring companies from investing in wind energy, as they look for cheaper alternatives. It’s a question that has been being asked for years - are wind and solar power more expensive and less reliable? The two renewable energy sources have been repeatedly criticised for their intermittent power provision. Meanwhile, as the prices of steel and other materials continue to rise, solar and wind farms are proving to be more expensive to construct than previously hoped. The prices of solar and wind power had been decreasing as technological innovations were made, thanks to huge amounts of investment worldwide in research and development. But in the wake of a pandemic that has wreaked havoc on global supply chains, the price of components has risen again and again. So, can the improved efficiency of wind turbine technology balance with rising material prices? (Source: Oil Price)
Cyberattacks And Satellite Sabotage: Putin's Non-Nuclear Escalations (13 October 2022): By RFE/RL staff - U.S. President Joe Biden turned heads last week by warning Russian President Vladimir Putin is "not joking" when he issues thinly veiled threats of using weapons of mass destruction as his invasion of Ukraine struggles, potentially threatening his 23-year hold on power. Days earlier, Senator Marco Rubio, a Republican member of the upper U.S. legislative chamber's intelligence committee, also made headlines when he said he feared Russia could launch a conventional strike against a NATO member to impede the alliance's military aid to Ukraine. But analysts say Putin may be more likely to use other, less kinetic means to try to intimidate the West into curtailing its support for Ukraine such as targeting critical offshore energy pipelines and data cables, as well as satellites orbiting Earth. (Source: Oil Price)
Goldman Sachs: Hydrogen Generation Could Grow Into $1 Trillion Per Year Market (12 October 2022): By Alex Kimani - Hydrogen power has been on the market for decades but has never really been able to break the glass ceiling of mass-market appeal, mainly due to a host of technical and cost issues. But some experts now believe that the hydrogen economy is ready for take-off, with Goldman Sachs predicting hydrogen generation could eventually grow into a $1 trillion per year market. The EU has hatched a highly ambitious plan to install 40 gigawatts of electrolyzers within its borders and support the development of another 40 gigawatts of green hydrogen in nearby countries that can export to the EU by 2030. The EU has also pledged to cut Russian gas imports by two-thirds by the end of the year and has doubled down on green energy fuels by increasing renewable hydrogen production. (Source: Oil Price)
Can Grid Expansion Keep Up With Surge In Solar Power Generation? (11 October 2022): By Oxford Business Group - As the capacity to generate wind and solar power continues to expand around the world, hopes of accelerating the phase-out of coal as the leading source of electricity may depend on the expansion of a less discussed but equally important part of the energy supply chain: electricity grids. Countries around the world are working to shift to more sustainable sources of power and facing challenges related to the expansion of their electricity grids. Last month Western Australia’s economic regulator ruled that Western Power, the state’s major electricity network provider, should be permitted to spend an additional A$1bn ($646m) over the next five years to upgrade its network to reduce the use of coal, and accommodate the additional solar and wind power slated to come on-line by 2027. This would bring the company’s investment to A$9bn ($5.8bn). (Source: Oil Price)
Europe’s Race To Ensure Gas Supply Comes At A Cost (10 October 2022): By Tsvetana Paraskova - Europe has managed to fill its gas storage sites to nearly 90% as winter approaches, but stocking up on gas has come at a price. Gas and energy prices are now so high that energy-intensive industries are shutting down production lines or whole factories, while households are constantly being asked to conserve gas and electricity to avoid rationing and/or blackouts this winter. The EU, most of which is now deprived of any gas supply from Russia, is doing relatively well with stocking up on alternative supply. The prices, however, are high, and so is the price that industries, residential consumers, and governments must pay. As of October 9, gas storage sites in the EU were 88.58% full, according to data from Gas Infrastructure Europe. Storage in Germany, the biggest economy, was 94% full, and the one in Italy—at 92.7%. (Source: Oil Price)
The UAE Isn’t Ditching Oil For Renewables Just Yet (9 October 2022): By Felicity Bradstock - The UAE has no plans to curb its oil production in favour of renewables, with the country’s climate minister pointing to strong global demand as a driver for greater crude output. As one of the few countries with the potential to increase its oil output, the UAE is continuing to boost its production in line with demand. However, the leader of state-owned oil company ADNOC worries that if other countries do not continue to invest in oil and gas, we could face energy shortages in the transition to renewables. In September, the United Arab Emirates (UAE), announced plans to ramp up its oil production to 5 million bpd five years earlier than planned. Abu Dhabi National Oil Company (ADNOC) had been aiming for 5 million bpdof crude production by the end of the decade. However, thanks to greater investment, ADNOC now believes it can move this target forward to 2025 to take full advantage of the rising global demand – ahead of a demand dip in response to the transition to green. (Source: Oil Price)
OPEC+ Output Cut Sends A Clear Message To The Market (6 October 2022): By ChAI - On Wednesday 5th October, OPEC+, at its 45th Joint Ministerial Monitoring Committee meeting held in Vienna, agreed to cut daily oil production by 2 million barrels per day. As it was the first in-person ministerial meeting for OPEC+ since March 2020, which itself signaled that a major announcement was looming, it was fitting that the group announced the biggest oil production cut since the start of the Covid pandemic. The size of the cut, equivalent to around 2% of global daily oil production, was significantly larger than the expected figure of 1 million bpd. However, according to Reuters, as several OPEC+ member states fell short of their target production levels in August, the real cut is estimated to be less than 1 million barrels per day. Given the magnitude of this step, it is worth looking into the role the group plays in the global oil market and how this latest production cut might affect prices. (Source: Oil Price)
Saudi Arabia, Russia To Cut 1.05 Million Bpd In November (5 October 2022): By Julianne Geiger - Saudi Arabia has agreed to cut its production for November by 526,000 bpd, from its current quota of 11.004 million bpd, according to data provided by OPEC following its Wednesday meeting to set new production targets. OPEC+ decided to cut its November production quotas by 2 million bpd, according to the Wednesday press release, “In light of the uncertainty that surrounds the global economic and oil market outlooks, and the need to enhance the long-term guidance for the oil market, and in line with the successful approach of being proactive, and preemptive, which has been consistently adopted by OPEC and Non-OPEC Participating Countries in the Declaration of Cooperation.” The group also extended the compensation period to the end of March 2023 for those not meeting their quotas. (Source: Oil Price)
U.S. Shale Won’t Fill Gap If OPEC+ Cuts Oil Production (4 October 2022): By Julianne Geiger - The U.S. shale industry won’t step in to fill the gap left by an OPEC+ crude oil production cut, energy executives told Reuters on Tuesday. OPEC+ is set to review on Wednesday its production plans for November—and the industry consensus is that OPEC+ could consider slashing its output by anywhere from 500,000 bpd to more than a million barrels per day. While some in the industry have pointed out that cutting its targets isn’t the same as cutting actual production, the fact that the group’s most prolific oil producer, Saudi Arabia, is producing to its current target means that any production cut would at a minimum result in a production decrease from The Kingdom. And energy executives are saying that OPEC+ remains in control of the market, and that U.S. shale can’t step in to compensate for any production declines. (Source: Oil Price)
The Middle East Is At The Forefront Of Low-Carbon Desalination Technology (3 October 2022): By Oxford Business Group - Long seen as a high-cost, energy-intensive process, desalination mega-projects are seeking to tap renewable resources to limit the cost and environmental concerns of this crucial technology. In June 2022 ENOWA, the energy, water and hydrogen subsidiary of Saudi Arabia’s NEOM mega-project, signed a memorandum of understanding with French energy company Veolia and Japanese trading company Itochu to develop a reverse osmosis (RO) water desalination facility powered by 100% renewable energy. Slated for completion in 2025, the facility is expected to produce 500,000 cu metres of potable water per day, meeting 30% of NEOM’s anticipated water demand. In a similar push for zero-carbon desalination, in September 2022 the Dubai Electricity and Water Authority (DEWA) signed a partnership with Dutch start-up Desolenator to develop a solar-powered desalination pilot project. (Source: Oil Price)
The Biggest Argument For Peak Oil (2 October 2022): By Alex Kimani - It’s been two years since British oil and gas supermajor BP Plc. (NYSE: BP) dramatically declared that the world was already past Peak Oil demand. In the company’s 2020 Energy Outlook, chief executive Bernard Looney pledged that BP would increase its renewables spending twentyfold to $5 billion a year by 2030 and “... not enter any new countries for oil and gas exploration”. That announcement came as a bit of a shocker given how aggressive BP has been in exploring new oil and gas frontiers. When many analysts talk about Peak Oil, they are usually referring to that point in time when global oil demand enters a phase of terminal and irreversible decline. According to BP, this point has already come and gone, with oil demand slated to fall by at least 10% in the current decade and by as much as 50% over the next two. BP noted that historically, energy demand has risen steadily in tandem with global economic growth with few interruptions; however, the COVID-19 crisis and increased climate action might have permanently altered that playbook. (Source: Oil Price)