New base december 31 2021 energy news issue 1477 by khaled al awadi2
0 likes244 views
The document discusses the Ras Markaz oil storage project in Oman, aimed at becoming a significant energy hub in the region with a planned initial oil storage capacity of 26.7 million barrels, scheduled to begin operations by mid-2022. Additionally, it notes the U.S.'s transition to being a net petroleum exporter for the first half of 2021 and highlights the surge in U.S. LNG exports, driven by increased global demand and the commissioning of new export facilities. The report also emphasizes the impact of China’s reduced crude import quotas on global oil prices.
New base december 31 2021 energy news issue 1477 by khaled al awadi2
- 1. Copyright © 2021 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 31 December 2020 No. 1475 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oman Ras Markaz Oil Terminal to Start by QR2 of 2022 Oman News + NEwBAse The crude storage terminal at Ras Markaz in the Wilayat of Duqm, Al Wusta Governorate, assumes significance as a vital project undertaken by Oman Tank Terminal Company (OTTCO) due to its strategic location in the vicinity of nascent markets in Asia and Africa. The project seeks to manage and maintain an integrated network of tanks for different types of energy derivatives in the Sultanate of Oman, notably in Duqm. Ard Van Hoof, CEO of OTTCO, said that the company has clear-cut vision aimed to provide high-level storage services for liquid and gas products, including renewable energy products. OTTCO boasts an infrastructure that is capable of meeting the requirements of the local and international markets. The Ras Markaz Oil Storage Project is owned 100% by the government, represented by OTTCO, said Eng. Salim Marhoon Al Hashmi, Director-General of the project, which, he said, began to be implemented in August 2019. Al Hashmi pointed out that the Special Economic Zone at Duqm (SEZAD) granted OTTCO a 40-year usufruct rights to set up an oil storage facility at Ras Markaz with effect from the date of signing the said contract on 5 July 2017.
- 2. Copyright © 2021 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 2 Al Hashmi told Oman News Agency (ONA) that the Raz Markaz agreement provides for a storage capacity of 26.7 million barrels of oil in the first phase. The company will increase its capacity in tandem with the growth of demand from investors, said Al Hashmi. The project consists of two streams: The first caters to maritime business. It is completed and it comprises an import-export floating station situated 7 kilometres from the beach, in addition to two 42-inch pipelines, Al Hashmi explained. He added that the second stream (80% over) features a variety of civil tasks, mountain demolishing, oil pumping systems, water treatment, installing tanks, building a power grid and adding associated systems. The infrastructure of the first phase of the oil storage project is ready to operate by the second quarter of 2022, said Al Hashmi. He added that Ras Markaz station has been connected via an 80-km pipeline and that the facility constitutes a source of supplies for Duqm Refinery, where 8 mega tanks are dedicated for the purpose. The project has a construction area of 10 square kilometres, while the total area stands at 40 square kilometres, which means the facility has a storage capacity of 200 million barrels of oil. The floating terminal can receive very large crude carriers (VLCC) from around the world and it has been connected with four main stations to pump crude upwards, said Al Hashmi. The Sultanate of Oman is currently leaning heavily on Mina Al Fahal for the export of crude oil, so the Ras Markaz station will add a strategic dimension to outbound crude export, said Al Hashmi, adding that the facility’s existence outside the Strait of Hormuz area will encourage many investors to store oil there and engage in import, export and oil blending operations. Al Hashmi said that OTTCO envisages making Ras Markaz the largest oil storage facility of its kind the Middle East and a global hub in the Arabia Sea and Indian Ocean zones. The project will generate 130 direct and indirect jobs, 90 of which will be occupied during the period of operation, said Al Hashmi, noting that more employment opportunities will be provided as the facility’s capacity keeps expanding. Al Hashmi said that OQ Group and Aramco company of Saudi Arabia had signed a memorandum of understanding for the storage of their products at Ras Markaz, besides exploring other areas of cooperation related to the import, procurement, production and storage of crude and petroleum products at Duqm Refinery and Ras Markaz.
- 3. Copyright © 2021 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 3 Egypt: SDX Energy completes drilling at MSD-21 well at West Gharib concession … Source: SDX Energy AIM-listed SDX Energy, the MENA-focused energy company, has announced the completion of drilling at the MSD-21 infill development well on the Meseda field in its West Gharib concession, Egypt (SDX: 50% working interest). MSD-21 encountered the primary top Asl Formation reservoir at 4,040ft MD (-3,251ft TVDSS) and reached a TD of 4,740ft. The well encountered 62.3ft of good-quality, net oil pay sandstone, with an average porosity of 21.3% in the Asl Formation reservoir. MSD-21 will now be tied-in to the existing facilities and flow tested. MSD-21 is the first well in a fully-funded, 12-well development campaign on the Meseda and Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert. The development drilling campaign is aimed at growing production from current rates of c. 2,100bbl/d to c. 3,500 - 4,000bbl/d by early 2023. The rig will now move to the next well in the campaign, MSD-25, which is expected to spud in early to mid-January 2022. Mark Reid, CEO of SDX, commented: 'The logs from MSD-21 are encouraging and the well will now be connected to our infrastructure and flow tested. We will update the market in the coming weeks on production rates. With YTD Q3 2021 netback of US$35/bbl at US$68/bbl Brent, West Gharib is currently a very high margin asset in our portfolio and MSD-21, and subsequent wells, will boost the production and cashflow from these fields in the coming months. I look forward to updating the market further as the campaign progresses.'
- 4. Copyright © 2021 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 4 The U.S. exported slightly more petroleum than it imported in the first half of 2021 Source: U.S. Energy Information Administration, Petroleum Supply Monthly From December 20 through December 30, Today in Energy will feature some of our favorite articles from 2021. Today’s article was originally published on September 17. Our Petroleum Supply Monthly trade data show that the United States exported more crude oil and petroleum products than it imported during the first half of 2021 by 120,000 barrels per day (b/d), or less than 1% of combined crude oil and petroleum product exports and imports. The United States was a net importer of crude oil and petroleum products (imported more than it exported) in the first of half of each year until the first half of 2020, when the United States became a net exporter (exported more than it imported) by 432,000 b/d of crude oil and petroleum products. This year marks only the second time the United States has been a net total petroleum exporter in the first half of the year. The United States has been a net exporter of petroleum products alone since 2011. The United States exports more refined petroleum products than it does crude oil. Petroleum product exports averaged 5.5 million b/d in the first half of 2021, up from 5.3 million b/d in the first half of last year.
- 5. Copyright © 2021 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 5 Exports of petroleum products include motor gasoline, distillate, and propane exports. Both imports and exports of select petroleum products mainly consumed as transportation fuels—distillate fuel oil, motor gasoline, and jet fuel—altogether decreased in 2020 compared with 2019. Propane exports increased in response to more demand for propane in Asia and less demand for propane in the United States. Propane now surpasses distillate fuel oil as the most prevalent U.S. petroleum product export by volume. In the first half of 2021, both imports and exports of petroleum products increased above their levels in the first halves of 2020 and 2019. The United States imports more crude oil than it does petroleum products. The United States was a net importer of 2.9 million b/d of crude oil in the first half of 2021. Net imports of crude oil have decreased in the first half of every year since 2017, primarily reflecting increasing U.S. exports of crude oil since the end of the U.S. crude oil export ban in 2015. Gross U.S. crude oil exports in the first half of 2021 averaged 3.0 million b/d, down from 3.2 million b/d in the first half of last year. This decrease was the first time exports decreased since the end of the export ban in 2015 and was likely driven by lower crude oil production, which decreased substantially in 2020 because of economic responses to the COVID-19 pandemic. Gross U.S. crude oil imports also fell, decreasing from 6.2 million b/d in the first half of 2020 to 5.9 million b/d in the first half of 2021.
- 6. Copyright © 2021 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 6 NewBase December 31-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil prices slip after China cuts import quotas Reuters + NewBase Oil prices eased on Thursday after the world's top importer China cut the first batch of crude import allocations for 2022, offsetting the impact of U.S. data showing fuel demand had held up despite soaring Omicron coronavirus infections. Oil prices pared earlier gains after China, the world's top crude importer, lowered the first batch of 2022 import quotas to mostly independent refiners by 11%. "Market sentiment weakened on worries that the Chinese government could take stricter actions against the teapots," a Singapore-based analyst said, referring to the independent refiners. Global oil prices have rebounded by between 50% and 60% in 2021 as fuel demand roared back to near pre-pandemic levels and deep production cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) for most of the year erased a supply glut. read more U.S. Energy Information Administration data on Wednesday showed crude oil inventories fell by 3.6 million barrels in the week to Dec. 24, which was more than analysts polled by Reuters had expected. Gasoline and distillate inventories also fell, versus analysts' forecasts for builds, indicating demand remained strong despite record COVID-19 cases in the United States. Oil prices also drew support from steps taken by governments to limit the impact of record high COVID-19 cases on economic growth, such as easing testing rules. read more OPEC+ will meet on Jan. 4 to decide whether to continue increasing output in February. Saudi Arabia's King Salman said on Wednesday the OPEC+ production agreement was needed for oil market stability and that producers must comply with the pact. Oil price special coverage
- 7. Copyright © 2021 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 7 NewBase Special Coverage The Energy world –Dec -31 -2021 U.S. LNG exports grew to record highs in the first half of 2021 Energy Information Administration (EIA), based on data from the U.S. Department of Energy’s LNG Monthly, From December 20 through December 30, Today in Energy will feature some of our favorite articles from 2021. Today’s article was originally published on July 27. U.S. exports of liquefied natural gas (LNG) continued to grow in the first six months of 2021, averaging 9.6 billion cubic feet per day (Bcf/d). This average marks an increase of 42%, or 2.8 Bcf/d, compared with the same period in 2020 (according to the U.S. Department of Energy’s LNG Monthly reports and our estimates for June 2021, based on shipping data from Bloomberg Finance L.P.). During the summer months of 2020, U.S. LNG exports fell to record lows, but they set consecutive record highs in November and December. U.S. LNG exports increased in the first half of this year as international natural gas and LNG spot prices increased in Asia and Europe due to cold weather. Rising global LNG demand once COVID-19 restrictions began to ease, as well as continuous unplanned outages at LNG export facilities in several countries (including Australia, Malaysia, Nigeria, Algeria, Norway, and Trinidad and Tobago), also contributed to increased U.S. LNG exports. In Asia, colder-than-normal winter temperatures led to increased demand for spot LNG imports. Natural gas demand in the spring continued to rise amid low post-winter inventories, which
- 8. Copyright © 2021 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 8 contributed to unseasonably high natural gas prices. The high prices prompted a higher demand for more flexible LNG supplies, particularly from the United States. In Europe, natural gas storage inventories were also low following a cold winter. Increasingly hot temperatures in May and June and greater natural gas demand from the electric power sector contributed to high natural gas spot prices. Europe’s natural gas spot prices have historically been lower than prices in Asia; however, this year, Europe’s natural gas prices are tracking Asia's spot LNG prices more closely to attract flexible LNG supplies from around the world to refill storage inventories. The U.S. Henry Hub natural gas benchmark and U.S. LNG spot market prices have been lower than prices for international natural gas and spot LNG this year. This price difference has supported record volumes of U.S. LNG exports. U.S. LNG exports also increased because of new export capacity added in 2020. The final liquefaction units were commissioned at Freeport, Cameron, and Corpus Christi LNG, and the remaining small-scale units were placed in service at Elba Island LNG. The new units increased total U.S. LNG export capacity by a combined 2.7 Bcf/d for a total peak capacity of 10.8 Bcf/d. Similar to 2020, Asia remained the top destination for U.S. LNG exports from January through May in 2021, accounting for 46% of the total. Asia was followed by Europe, which had a five-month average share of 37%. Exports to Latin America also increased, particularly to Brazil, which is experiencing its worst drought in more than 90 years.
- 9. Copyright © 2021 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 9 In June, U.S. LNG exports declined slightly, mainly as a result of maintenance on several pipelines that deliver natural gas to U.S. LNG export facilities. Yet, we expect LNG exports to remain at high levels in the remaining months of this year in our Short-Term Energy Outlook. U.S. natural gas production will establish a new monthly record high in 2022 In our December Short-Term Energy Outlook (STEO), we forecast that U.S. dry natural gas production will increase from 95.1 billion cubic feet per day (Bcf/d) in October 2021 to 97.5 Bcf/d by
- 10. Copyright © 2021 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 10 December 2022, a new record high. The previous monthly record of 97.2 Bcf/d was set in November 2019. In early 2020, COVID-19-associated declines in demand resulted in a corresponding natural gas price decrease and reduced drilling. As a result, monthly natural gas production declined to a low of 87.3 Bcf/d in May 2020. Dry natural gas production in the United States has generally risen since then, with a brief exception in February 2021, when winter weather substantially reduced natural gas production in Texas. Our forecast for U.S. natural gas production growth includes expected output from natural gas- directed drilling activity as well as natural gas production associated with crude oil production (associated gas). In both the Haynesville region (mainly in Texas and Louisiana) and the Appalachia Basin (mainly in Pennsylvania and West Virginia), increased drilling activity and greater output per well have led to more natural gas production in recent months, according to metrics compiled in our Drilling Productivity Report. Associated natural gas production has also increased as producers have completed wells that were previously drilled but uncompleted (DUC wells). The number of natural gas-directed rigs—rigs drilled primarily in natural gas-bearing formations— decreased throughout 2019 and the first half of 2020, based on data from the Baker Hughes Company. By late August 2020, the natural gas-directed rig count had fallen to 68 rigs, the fewest in Baker Hughes’s data series, which dates back to 1987. The number of natural gas-directed rigs has since increased to 102 in mid-November 2021.
- 11. Copyright © 2021 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 11 Rig counts are considered a leading indicator of newly drilled wells, but increases in drilling efficiency (the number of new wells each rig can drill) and new-well production have complicated the relationship between rig counts and eventual production. NewBase Energy News 30 December 2021 - Issue No. 1477 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services
- 12. Copyright © 2021 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 12 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 [email protected] or [email protected] 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 Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder of NewBase Energy news articles issues, 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 more than 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management 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.
- 13. Copyright © 2021 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 13
- 14. Copyright © 2021 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 14
- 15. Copyright © 2021 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 15
- 16. Copyright © 2021 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 16 For Your Recruitments needs and Top Talents, please seek our approved agents below