Petroscan jan 16

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January 2016

CONTENTS OIL, GAS & ENERGY: NEWS & VIEWS

Editorial Note Editor’s Choice • ExxonMobil: Gas to lead global energy demand growth through 2040 • API official asks administration to pursue innovation, not regulation

Editor's Pick • Don’t tamper with patent laws • India’s renewable energy targets: How to overcome a $200 billion funding gap • Goldman: This may push oil to $20 • Post-sanctions Iran roils crude market; petchem may follow suit • How low oil price affects Chemical Industry • Ten Futuristic Technologies • Cheap oil, good for consumers, is slamming stocks.

Why?

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January 2016

IndiScan • Hon’ble Prime Minister dedicates IndianOil's 11th Refinery to the Nation • India tops Asia in sending scientists, engineers to US • Indian refiners need to invest $4.5B to produce Euro VI fuels by 2020 • BP TO SELL ALABAMA PETROCHEMICALS COMPLEX TO INDORAMA • Emission test • Doing scientific research will be made easy: Modi tell scientists • Now Mineral Water costlier than Mineral Water in India • India’s state refiners agree to jointly build new world-scale refinery • India to offer tax discount if Iran accepts all oil payments in INR • India – Africa Hydrocarbon Conference

GlobeScan • Fluor To Build $1-Billion Petroleum-Refining Facility In Mexico • These are the energy stories Houston cared about in 2015 • ConocoPhillips ships first LNG from Australian megaproject • Women CEOs Of The S&P 500 • Petrobras cuts investment by USD 32 billion 3

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• China planning to build floating nuclear power plant • Siemens to buy engineering simulation software supplier CD-adapco • Iran Kicks Off Plan to Boost Oil Exports as Sanctions Lifted • Exclusive: China buys first U.S. crude cargo since end of export ban – source • Marathon Petroleum to combine 2 Texas refineries • Oil producers struggle to plug budget holes torn by price collapse • CNOOC flows first oil from 2 Beibu Gulf Basin projects in South China Sea • Kuwait to set up company to run refinery complex • Canada imposes further delays on two major pipeline projects • Enbridge to buy some Murphy Oil gas plants in British Columbia • Suncor takes $2-billion loss for 2015, sheds more 2016 budget • IEA See Global Oil Glut Worsening. OPEC Deal Unlikely

TrendScan • Raymond James: For oil field services companies, 2016 will be a “roller coaster ride” • Finally Flexing Energy Muscle on Global Stage • Analysts: Global oil, gas M&A to rise in 2016 as companies shed assets • Weak oil markets prompt Saudi leaders to make quicker decisions 4

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• Former US energy secretary: OPEC grip, surging gas to shape markets in 2016 • China’s diesel use falls as gas, gasoline post gains • Oil rises, pares losses in January on hopes for production deal • Lower oil prices — they aren’t good for everyone • Forget peak oil: shale is a market game-changer • Oil slips below $33 as hopes for production cut fade • Kuwait Petroleum International says oil prices could reach $50 a barrel mid-2017

TechScan • The new digital tools catching on in the old school oil field • DuPont, ADM Biotech Will Enable 100% Renewable Chemicals, Plastics • RFCC Failure Analysis - A CASE STUDY • Shocking! 'Electric Eel' Fibers Could Power Wearable Tech • Putting Fuel Cells Inside the Data Center

ALTERNATIVE & RENEWABLE ENERGY • Renewables Attracted record investment of $329 b in 2015 • IRENA Considers Onshore Wind As Cheap As Coal • The Changing Face of HVAC Motor Control

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HSE, Climate Change & Sustainability • Deficiency found in ExxonMobil California Refinery • California calls gas leak a state of emergency • FACTS AT YOUR FINGERTIPS: PROCESS HAZARDS ANALYSIS METHODS • Oil & Gas Firms Under-Reporting Methane Risk, EDF Says • Charging a Smartphone While Driving Isn't as Free as You Think • Is Recycled Oilfield Water Safe for Crop Irrigation?

• Zika-linked condition: WHO declares global emergency • How Engineers Can Adapt Infrastructure Design for a Changing Climate • PROGRESS TO LIMIT CLIMATE CHANGE • State of the Union Pushes Clean Energy, Calls for Coal-Lease Reform • Like Not Having The Next Ice Age? • Cairn India Providing Safe Drinking Water To The Community In Barmer, Rajasthan • 12-Year-Old ShrustiNerkar’s Invention Can Save Upto 80% Water In Showers • Why your Organisation Needs a Chief Sustainability Officer • Sustainability is impossible until companies Account for • Rigid plastics recycling surges 27%; film recycling grows 3% • Microsoft’s Datacenters and the Deep Blue Sea

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F2F • How Ericsson aligned its people with its transformation strategy: An interview with chief HR officer BinaChaurasia • Unconventionals in Saudi Arabia • Kellogg President Wendy Davidson on how women can become leaders in the industry

BookScan • Employee problems are your problems, too.

The Banyan Tree • Vision vs Conceit : Are you a visionary or full of yourself?

• Want to Lead? Consider Becoming a Project Manager • The best way to deal with stress, according to a 69year-old monk who scientists say is the 'world's happiest man' • Why you should give mentoring all you've got • New Year’s development goals for leaders: 2016 • How great leaders balance execution and empathy • Today's actions will matter 15 years from now: Mark Fields Ford CEO • Good management habits are the foundation of great Leadership

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January 2016

Editorial Note A Landmark Event Commissioning of much awaited commissioning and dedication of the 11th oil refinery of IndianOil at Paradip, a new landmark was created by IndianOil. This 15 mtpa refinery constructed at the cost of over R 34000 crores, is highly complex refinery ready to produce Euro-IV grade fuels right from the day one.

We complement IndianOil team of dedicated engineers for working tirelessly braving great hardships in shaping this refinery against all odds. This is one of mega projects executed in the recent times.

The Refinery built at a cost of Rs 34,555 crore and can process dirty and heavy crude oil is located 140 km from the state capital Bhubaneswar, Paradip refinery is one of the most modern refineries in the world which can process cheaper high sulfur heavy crude oils. It has a complexity factor of 12.2.

Spread over an area of over 3000 acres, initially this refinery conceptualized to set up a refinery of 9 mtpa capacity on the eastern coast in the state of Odisha, its capacity was subsequently raised to 15 mtpa. With plans t0 produce polymers like paraxylene, polypropylene and styrene in addition to other valuable transport fuels and petroleum products.

It has also huge linked projects of pipeline from Paradip to Raipur via to Ranchi, which shall cater to the states of Jharkhand and Chhattisgarh besides Odisha. This pipeline cutting across 2,400 km length is almost the length of Ganges. A MercedesBenz S-Class car can pass through the largest diameter pipeline of 126-inch.. On the way there are many tap off points , depots and installations built to meet local demands of the petroleum products.

One can appreciate its mamothness from certain comparative figures which went into constructing this refinery at very difficult 8

January 2016

and low lying site. Over 2.8 lakh ton of steel, equivalent to 30 Eiffel Towers or about 350 Rajdhani trains, 11.6 lakh cubic meter of concreting equivalent to 3 times volume of Burj Khalifa, Dubai, were use on this site, besides over millions of cubic meters of earth filling required in constructing it.

Designed to produce 5.6 million tonnes per annum of diesel, 3.79 million tonnes of petrol and 1.96 million tonnes of kerosene/ATF, besides 790,000 tons/ annum of LPG and 1.21 million tonnes/annum of Petroleum Coke. The refinery sent out it's first consignment of diesel, kerosene, and LPG on November 22, 2015 There are many landmarks associated with this refinery has extensively use PPP BOOT and BOO models in execution and operation of this refinery.

But the brightest landmark of this project is construction and commissioning of the FIRST COMMERCIAL INDMAX of 4.9 mtpa capacity, designed and constructed BASED ON Indigenous technology developed by IndainOil-R&D. With commissioning of this novel RFCC technology India has joined the league of world’s select group of FCC Technology licensor. We hope this technology shall find huge market in India and abroad. I am sure the Govt of India, under its Make in India policy shall bring out certain regulations or incentives for adaptation of Indigenous technologies. China did it and prospered. India has to do it for self reliance.

It was finally inaugurated and dedicated to the nation by Prime Minister Narendra Modi , who was personally monitoring the progress of this mega project, on February 7, 2016.

The refinery has plans to set up an Ethylene Recovery Unit/Mono-Ethylene Glycol (MEG) at an estimated cost of Rs 3,800 crore. It is expected to be completed by 2020-21 9

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The execution of this project took almost two decades from the concept to commissioning, and it is fit for carrying out an academic case study for taking lessons in “How not to Execute Projects”, for the PSEs, consultants, statutory and regulatory organizations, project managers and the governments.

I had got a case study developed on the “Acquisition and Merger of IBP with IndianOil” by IIMA. Indian Oil may once again take help of one of premier business schools specializing in project management, for develop a case study on the Paradip refinery, fro consolidating the lessons learnt.

Team Petrotech send its Heartiest Congratulations to the Team IndianOil for creating another landmark in the first month of 2016.

Anand Kumar Director Petrotech

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Editor’s Choice ExxonMobil: Gas to lead global energy demand growth through 2040 Global energy demand will increase 25% between 2014 and 2040, driven by population growth and economic expansion, ExxonMobil said Monday in its 2016 edition of The Outlook for Energy.

At the same time, energy efficiency gains and increased use of renewable energy sources and lower carbon fuels, such as natural gas, are expected to help reduce by half the carbon intensity of the global economy, according to the annual report.

During the period, the world’s population will increase by about 2 billion people and emerging economies will continue to expand significantly. Most growth in energy demand will occur in developing nations that are not part of the Organization for Economic Co-operation and Development (OECD), Exxon said.

Per-capita income in those countries is likely to increase by 135%.

Natural gas is expected to meet about 40% of the growth in global energy needs, and demand for the fuel will increase by 50%.

Nuclear and renewable energy sources – including bio-energy, hydro, geothermal, wind, and solar – are also likely to account for nearly 40% of the growth in global energy demand by 2040. By then, they are expected to make up nearly 25% of supplies, of which nuclear alone represents about one third.

“ExxonMobil’s analysis and those of independent agencies confirms our long-standing view that all viable energy sources will be needed to meet increasing demand,” said Rex W. Tillerson, CEO of ExxonMobil. “The Outlook for Energy is a useful resource to help understand future energy supply and demand, which can aid decisions by individuals, businesses and governments that together will affect the future of energy.”

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The outlook projects that global energy-related carbon dioxide emissions will peak around 2030 and then start to decline.

Emissions in OECD nations are projected to fall by about 20% from 2014 to 2040.

The Outlook for Energy is ExxonMobil’s long-range forecast developed by its economists, engineers and scientists through data-driven analysis. It examines energy supply and demand trends for approximately 100 countries, 15 demand sectors and 20 different energy types.

“Our forecast is used as a foundation for the company’s business strategies and to help guide multi-billion dollar investment decisions,” said William Colton, vice president of ExxonMobil Corporate Strategic Planning, which develops The Outlook for Energy. “For many years the outlook has taken into account policies established to reduce energy-related carbon dioxide emissions. The climate accord reached at the recent COP 21 conference in Paris set many new goals, and while many related policies are still emerging, the outlook continues to anticipate that such policies will increase the cost of carbon dioxide emissions over time.”

Key findings of the report include: • In 2040, oil and natural gas are expected to make up nearly 60% of global supplies, while nuclear and renewables will be approaching 25%. Oil will provide one third of the world’s energy in 2040, remaining the No. 1 source of fuel, and natural gas will move into second place.

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North America, which for decades had been an oil importer, is on pace to become a net exporter around 2020.

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India will surpass China as the world’s most populous nation, with 1.6 billion people. The two countries are expected to account for almost half of the growth in global energy demand.

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Global demand for electricity is expected to increase by 65%, and 85% of the increase is in non-OECD nations.

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The share of the world’s electricity generated by coal is expected to fall to about 30% in 2040 from approximately 40% in 2014.

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Global energy demand from transportation is projected to rise by about 30%, and practically all the growth will be in nonOECD countries.

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Sales of new hybrids are expected to jump from about 2% of new-car sales in 2014 to more than 40% by 2040, when one in four cars in the world will be a hybrid. Average fuel economy will rise from 25 to about 45 miles/gal.

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Already the world’s largest oil-importing region, Asia Pacific’s net imports are projected to rise by more than 50% by 2040 as domestic production remains steady and demand increases.

For more information about The Outlook for Energy, Visit www.exxonmobil.com/energyoutlook.

API official asks administration to pursue innovation, not regulation WASHINGTON, DC, Feb. 4

By Nick Snow OGJ Washington Editor, 02/04/2016 The Obama administration should rely more on oil and gas industry innovation and cooperation, and less on heavier federal regulation, as it moves into its final year, an American Petroleum Institute official recommended.

The US oil and gas industry is a case study on how the nation can continue to make its general economy grow, create more jobs, and protect the environment through market-driven 13

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innovation, API Upstream and Industry Operations Group Director Erik Milito said.

“By continuing to rely on industry innovation, basing decisions on sound science and providing for oil and gas energy opportunities, we can build on the success of the past decades,” he told reporters during a Feb. 4 teleconference prior to the White House’s scheduled release of its proposed fiscal 2017 federal budget on Feb. 9.

Milito said the situation is different now than it was a few years ago, when the US basically was counted out as a global energy superpower.

“Technology has made the difference in allowing the industry to produce the oil and gas we rely on in our daily lives, while at the same time providing environmental benefits,” he said. “Vast supplies unleashed by hydraulic fracturing have allowed gas to generate much more of American’s electricity. In other words, were it not for [fracing], our carbon emissions would be much higher.”

Methane emissions from fraced wells fell about 80% in the 200513 period as domestic oil and gas production grew by one of the largest amounts in history, Milito said. “Methane is the primary component of gas—a product we sell—and companies [have the incentive] to capture as much methane as possible so that it can be delivered to customers. The data show that companies are doing just that,” he said.

More regulations proposed But both the US Bureau of Land Management and US Environmental Protection Agency are moving forward with methane regulation proposals that do not provide tangible benefits, but could actually restraint domestic producers’ ability to develop resources as well as the nation’s oil and gas technology leadership, Milito warned.

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“The industry has developed technologies to reduce emissions from [fracing] completions, equipment to phase out high-bleed pneumatic controllers, technologies to reduce emissions from storage tanks, and methods for detecting leaks,” he said. “All of this has occurred outside of the regulatory process. Unfortunately, the EPA and BLM rules overlap, and also duplicate, state regulations.”

API’s development of more than 500 industry standards and practices through a process accredited by the American National Standards Institute allows experts from the government, the industry, and engineering and safety companies to work together and develop consensus recommended best practice approaches, he noted.

“Offshore energy development is a perfect example of how innovation and standards development have combined to enhance the safety in operations,” Milito said, citing API Standard No. 53 which governs well blowout prevention systems.

“Unfortunately, the Bureau of Safety and Environmental Enforcement has proposed a well control rule (OGJ Online, Apr. 14, 2015) that goes well outside the scope of API Standard 53, and could create unintended safety consequences and lead to a decline in offshore oil production,” he said.

BSEE expanded its proposed offshore BOP regulation beyond the API standard into other areas, Milito said. “It proposed a very strict drilling margin in which you must drill a well, yet the great majority of wells which are being drilled are outside of that margin,” he said. “The prescriptive types of regulations being advanced by EPA, BLM and BSEE could stifle innovation by locking in specific types of technologies through the regulatory process.”

Base decisions on science Milito also urged the administration to base more of its energy policy decisions on sound science. He said that EPA’s Science 15

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Advisory Board continues to hear arguments that fracing is unsafe the agency’s own findings in a 5-year study which found the process does not threaten drinking water supplies.

“Interestingly enough, the US Department of Energy has identified hydraulic fracturing as an advanced technology that provides environmental benefits and protects groundwater,” he said.

“After 65 years and 2 million wells, the evidence and science are credible and clear,” Milito stated. “The data and facts overwhelmingly support the conclusion that hydraulic fracturing can be done safely. We need to ensure that our government processes stick to the credible science.”

Allowing more access to federally administered acreage lands for oil and gas effectively would embrace a free market approach, he suggested. “Most of today’s production increases stem from projects that started before this administration came into office, and most of it is happening on state and private lands,” he said.

With 87% of all federally controlled US offshore acreage off-limits to oil and gas activity, Milito said it is essential that more areas are included in the 2017-22 US Outer Continental Shelf management plan which the US Department of the Interior is preparing.

He urged the administration to keep all OCS options on the table, and expressed disappointment that a segment off Mid-Atlantic states is the only new area where a lease sale might be held during the next 5-year plan.

“We saw a positive bipartisan policy proposal under consideration in the US Senate yesterday that would provide revenue sharing to coastal states where offshore oil and gas development occurs,” Milito said. “Policies like this are essential for our long-term energy security.”

Contact Nick Snow at nicks@pennwell.com.

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Editor's Pick Don’t tamper with patent laws A SRINIVAS

India is being too accommodating of MNCs The Centre is needlessly apologetic about our IPR laws. It set up an IPR ‘think tank’ in October 2014, perhaps responding to a view that our IPRs are not strong enough to invite foreign investment.

Last January, Prime Minister Modi and President Obama issued a joint statement which “committed to establish an annual high-level Intellectual Property Working Group”. In November, Modi said in Singapore that “India is committed to protect the intellectual property rights of all innovators”. And now, the Cabinet is expected to discuss a ‘new IPR policy’ in a month.

It appears that MNCs have lobbied with world governments after two setbacks in 2013. In April that year, the Supreme Court struck down a patent for Novartis’ leukemia drug, Glivec, citing Section 3 (d) of the Patents Act which disallows superficial innovation. In March 2013, the Intellectual Property Appellate Board awarded NatcoPharma a compulsory licence to make and sell a cheaper version of Bayer’s anti-cancer drug, Nexavar. The MNCs’ gripe against India’s patent law is unjustified. In the book,Politics Trumps Economics, Sunil Mani points out that the share of foreign companies in business enterprise R&D expenditure increased from 10 per cent in 2003 to 29 per cent in 2011. What’s 17

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more, “with tighter TRIPS-compliant IPR regime put in place by India, from 2005 onwards, the possibility of spill-overs to the domestic economy from the R&D done by these foreign companies stands greatly diminished”, he says. In other words, the MNCs are doing pretty well for themselves.

Our patent law merely deploys the safeguards allowed in TRIPS to protect domestic consumers and industry. It is considered a model for the developing world. It enabled India to supply cheap anti-HIV drugs to South Africa. Why dismantle this system? India arguably conceded enough at the Nairobi ministerial. Our IPRs laws should be non-negotiable.

Senior Deputy Editor (This article was published on January 8, 2016) India’s renewable energy targets: How to overcome a $200 billion funding gap 09 July 2015 Rohan Singh Rohan Singh explores the main issues relating to financing renewable energy projects in India, offering up some solutions to help domestic and foreign companies alike meet the challenges head on.

India is set to become one of the world leaders in Renewable Energy. Since his election in May 2014, prime minister NarendraModi and his government have embarked upon an ambitious target of increasing renewable energy capacity five-fold by 2022 (from 30GW currently to a projected 175GW). This would require additional funds of about US$200 billion.

Financing woes To understand a little about India’s financial landscape, the main financial actors and capital providers are as follows:

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Private equity firms – local & international: Actis, 3i, Aditya Birla, Aloe Private Equity, EIG Partners, etc.

International Development Finance Institutions: IFC, Proparco, FMO, OPIC, etc.

Domestic Debt-oriented institutions: PFS, Yes Bank, IDFC, Axis Bank, etc.

The major issues regarding those sources of financing are numerous. It would be hard to list all. The main issues are:

High &variable interest rates given by Indian commercial banks - a traditional solar or wind energy project is getting a loan with an interest rate around c.12%; o Short tenor of debt from Indian commercial banks traditional maturity in senior debt is about 10-12 years; o Hedging currency for international financing - the cost of hedging currency is a component to carefully keep in mind and before addressing any international institutions, an arbitrage between local and international financing solutions should have been completed upfront.

A recent report from Climate Policy Initiative (CPI) suggests these barriers mean the cost of renewable energy in India is 24-32% higher than similar projects in the US. The Indian government has attempted to bridge this gap in infrastructure investment through a number of initiatives, such as Infrastructure Debt Funds and the National Clean Energy Fund. However, given the ambitious renewable energy targets and limited resource availability, there is a need to explore alternative modes of financing for renewable power projects, by leveraging existing resources more effectively. o

Optimistic moves Despite several hurdles, India is currently adopting a very optimistic pace. Recent achievements include: o

The Reserve Bank of India (RBI) now Notifies Renewable Energy under priority sector lending. This means banks can now 19

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provide loans up to a limit of INR 150 million to borrowers for renewable energy projects. This can also help commercial local banks to raise infrastructure bonds which are exempt from PSL but still use the money to lend to renewable energy; o The Asia Development Bank (ADB) is increasing its sovereign and non-sovereign lending to support India’s new initiatives from the present $7 billion to $9 billion in three years from 2015 to 2017 and then from $10 billion to $12 billion between 2016 and 2018 using ADB’s expanded lending capacity; o International investors have increased their market share in India with more than 78% of capacity under development. More than half of large Indian renewable energy projects are internationally funded. The UK Green Investment Bank, for example, has agreed terms on a £200m international pilot development.

India is currently receiving a growing demand from international companies in the RE landscape. These include French-based Fonroche, Solaire Direct, EDF EN (through its subsidiary ACME Solar) and US-based companies SunEdison, First Solar. Besides such internationally recognised players, local firms such as Welspun Energy, OGPL, and Renew Power have also scaled up their footprint in the Indian RE sector.

Innovative financing solutions So what can be brought to the table to put India on a faster track?

The answer, primarily, is that there is no need for an entire, new revolution, but just to build on what has already been done: New policies and clarifications from the State Government on the solar sector (solar parks allocation, distributed solar, etc.) will bring more confidence from potential investors and thus decrease the cost of financing; o Existing actors should continue developing projects and investments; In the meantime, innovative financing solutions can be used including: o

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Green bonds - they still remain sparsely known in India even if in March 2015 the Exim Bank of India launched India’s first dollar-denominated green bond issue ($500 million fiver-year bonds), which was subscribed nearly 3.2 times. This solution has to be applied to corporate as well. o Yieldcos - renewable energy projects face some uncertainty during the development stage but tend to produce low-risk cash flows once they are operating. Yieldcos have the potential to unlock the value of these renewable assets. Yieldcos may attract new investors who may otherwise perceive unacceptable risk or lack the appropriate channels to invest capital in renewables. o Dollar denominated PPA - this solution can decrease the cost of financing especially for companies who borrow internationally (i.e. from multilateral agencies) and then can avoid to hedge currency risk; These are few of the many solutions that can definitely unlock India’s potential in renewable energy. Finergreen is currently working on these challenges and helping clients (local or international developers, IPPs, etc.) to get access to affordable, long-term and adequate funds. The company carefully selects clean energy projects that fit with its ethical philosophy and ambition to help local populations gain access to electricity 24/7 electricity. o

To quote a Finergreen partner: “When we give a family extra hours of light every night, we extend their day, we give them more time to be together, more time to work, more time to study, more time to talk. We not only give them more hours of light, we give them more hours of life… every day.”

ABOUT THE AUTHOR Rohan Singh is project manager at Finergreen. With its head office in Paris, France, and offices in New Dehli, India, the company is a financial advisory company specialising in renewable energy and energy efficiency projects.

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Goldman: This may push oil to $20 Friday Sept 11, 2016, CNBC The risk that oil could fall as low as $20 a barrel is rising, with a persistent surplus requiring prices to remain lower for longer to rebalance the market, Goldman Sachs said, cutting its forecasts again.

"While we are increasingly convinced that the market needs to see lower oil prices for longer to achieve a production cut, the source of this production decline and its forcing mechanism is growing more uncertain, raising the possibility that we may ultimately clear at a sharply lower price with cash costs around $20 a barrel Brent prices," Goldman said in a note Friday.

The sources of stress: an abundance of oil coupled with a scarcity of storage space. The bank estimates the industry added around 240 million barrels of petroleum to storage tanks from January to August. It projects available identified storage capacity outside China at around 375 million barrels and expects an around 240 million barrel inventory build outside China between September of this year and the end of 2016.

"If you don't bring U.S. or global production down low enough underneath demand to create that rebalancing then you're likely to slam into storage capacity constraints and that would put that downward pressure," said Jeffrey Currie, head of commodities research at Goldman, in a CNBC "Power Lunch" interview Friday.

But it noted $20 a barrel isn't its base case, even though risks that oil will fall that low continue to rise, especially as the bank expects only moderate production declines through the end of the year.

There is a less than 50 percent chance it would reach $20 a barrel, Currie noted.

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Cuts to production are not "significant enough," as low-cost output continues to surprise to the upside, Currie added. Risk that neither producers with strong balance sheets nor weak balance sheets would want to trim production "reinforces this idea of lower for longer," he noted.

Goldman cut its one-month, three-month, six-month and 12month WTI oil price forecasts to $38, $42, $40 and $45 a barrel, respectively. That's down from $45, $49, $54 and $60 previously.

It cut its average price forecast for 2016 to $45 a barrel from $57.

Brent for October delivery settled down 75 cents at $48.14 a barrel on Friday, while U.S. crude fell to $44.63 a barrel, down $1.29. That follows a wild ride for oil prices, with crude rallying from a low of $37.75 touched Aug. 24, with daily swings of more than 5 percent in either direction.

"The oil market is even more oversupplied than we had expected," Goldman said. "We now forecast this surplus to persist in 2016 on further OPEC production growth, resilient non-OPEC supply and slowing demand growth, with risks skewed to even weaker demand given China's slowdown and its negative emerging market feedback loop." —CNBC's Amanda Diaz contributed to this article.

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Post-Sanctions Post-sanctions Iran roils crude market; petchem may follow suit 18 January 2016 07:15 Source:ICIS News

DUBAI (ICIS)--Oil prices fell on Monday on heightened concerns about oversupply, with Iran now free to compete in the global export market after international sanctions on the country were officially lifted over the weekend, industry sources said on Monday.

Price volatility is expected to permeate the downstream petrochemical markets in the near term, they said.

Crude fell by more than $1/bbl during Monday's morning trade to their lowest levels since late-2003. Prices fell amid expectations that Tehran will raise exports significantly in the coming months, aggravating the glut in the market that has sent crude values falling since the second half of 2014.

At 04:51 GMT, March Brent crude was trading at $28.52/bbl, while February NYMEX light sweet crude futures (WTI) were trading at $29.05/bbl.

International economic and financial sanctions were imposed on Iran on suspicion that the country is developing a nuclear weapon.

On 16 January, the world powers lifted the sanctions after the United Nations (UN) confirmed that Tehran has curbed its nuclear 25

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programme and has complied with the terms of their July 2015 comprehensive agreement.

Iran is a major oil exporter and is a member of the oil cartel OPEC. “What this says is volatility will continue in the oil and its downstream petrochemical markets for the next one to two years,” said Ewe EeFoong, ICIS vice president of Business Development & Consulting.

ICIS Consulting provides insight into commodity markets via consultancy and data services. It operates independently of ICIS News.

Prior to the lifting of sanctions, Iran had been exporting around 1.1m bbl/day of oil, principally to Asian buyers. The country has been producing just under 2.9m bbl/day, compared with 3.6m bbl/day prior to the implementation of tighter sanctions in 2011.

“With Iran back into the picture, the price of oil is set to be driven down purely on sentiment and speculation,” said a banker based in the Middle East.

“With the sanctions lifted, oil prices will see further declines. We are really worried this could lead to more price volatility further downstream,” a source close to a Middle East energy producer said.

Ewe of ICIS Consulting said: "Lower oil prices normally lead to lower product margins, especially for non-integrated producers.

All companies should take this opportunity to relook at their cost structures. And take the ride on such low oil price scenarios to weed out inefficiencies."

Naphtha and aromatics prices in Asia were moving in tandem with crude on Monday. At midday, naphtha prices shed $17.50/tonne to $310-312/tonne CFR (cost and freight) Japan, while benzene fell $17/tonne at $521-525/tonne FOB (free on 26

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board) Korea, and toluenetrading $15-30/tonne lower at $500535/tonne FOB Korea, according to ICIS data.

“Iran is ready to increase production almost overnight,” according to a source close to a major Iranian energy company.

The lifting of sanctions will unfreeze Iran’s $100bn worth of assets and allow the country to sell oil to Europe.

Immediately after the announcement of the lifting of sanctions, Iran’s deputy oil minister Amir Hossein came out to say that Tehran could increase crude exports by 500,000 bbl/day.

Most of the new Iranian exports are expected to come from substantial volumes stored at sea. As of end-November, Iran has an estimated 36m barrels of oil held at sea in tankers, according to the International Energy Agency (IEA).

“We are watching the developments closely. If Iran increases supply, oil prices will plunge,” a Qatar-based petrochemical source said.

The announcement to lift sanctions on Saturday, seen as unexpected by some given its speed of implementation, came just a month before Iranians vote in a crucial parliamentary election.

Iran petrochemical suppliers are expected to compete actively in the market once Tehran re-joins the Society for Worldwide Interbank Financial Telecommunication (SWIFT) services network, although it remains unclear when exactly this would happen, industry sources said.

“Once Iran can access SWIFT, the country can start to participate in international trade once again,” said a source close to a major US-based energy distributor.

Iranian petrochemical suppliers have been planning to ramp up production and to divert about a fifth of their cargoes from China to Europe once the international sanctions are lifted, industry sources said.

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“We would like to re-establish our links in Europe but at the same time not abandon our partners in China,” a source close to an Iranian petrochemical supplier said.

Iran has an annual petrochemical capacity of 59m tonnes, according to the country’s National Petrochemical Company (NPC), and plans to more than double production in the next three years, but this will depend largely on foreign direct investments (FDIs) from Europe and Asia, industry sources said.

Should Iran violate any aspect of the nuclear deal, the sanctions will automatically resume and will be in place for 10 years, with the possibility of a five-year extension.

Meanwhile, a series of US-led sanctions will remain in place for Iran, including restrictions over doing business with entities linked to the Iranian Revolutionary Guards. On 17 January, the US said it will also enforce separate sanctions on 11 entities in Iran over a recent ballistic missile test.

Talks of a possible repeal of the Iran nuclear deal in the US are being debated, with the US expected to elect a new president in November this year.

“Well, almost all the [US] Republican [presidential] candidates promised to repeal the deal if elected, so who knows what will happen this time next year,” a Saudi-based polymer source said.

Focus article by MuhamadFadhil Oil Route Changes Chemical Landscape How low oil price affects Chemical Industry Jan15,2016 ONDON (ICIS)--As oil continues to collapse past the $30/bbl mark, the global chemical industry faces some new realities if - as looks likely - these low prices persist

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Although the heads of some oil companies such as Shell’s Ben van Beurden are still talking up the oil price (he needs a higher price for the proposed $51bn merger with BG Group to make sense), increasing numbers of analysts disagree.

International eChem’s Paul Hodges has been predicting $2030/bbl since August 2014 and he has now been joined by the likes of Goldman Sachs and Morgan Stanley in expecting the rout to continue and low prices to persist for years.

On the supply side the oil price crash has cut the number of US exploratory rigs yet production there has dipped only slightly.

Meanwhile once sanctions end sometime this year, Iran could bring daily production to 3.6m bbl/day, around 800,000 barrels a day above current production according to the International Energy Agency. That would be the country’s highest level of crude output since 2011. Iraq is also ramping up production to record levels.

According to Hodges, there is now a vast energy surplus in coal, gas, oil and renewables: “So it’s a market share game, as the Saudis realised when they gave up trying to hold the price 18 months ago. You either sell today, or risk ending up leaving the oil in the ground.”

For the chemical industry, a collapsed oil price levels the playing field in terms of feedstock costs. This is good news for naphthabased regions such as Europe, which had been suffering from years of decline with an oil price so much higher than natural gas and ethane prices elsewhere.

As the global ethylene cost curve flattens, we can expect this to be a positive tailwind for naphtha-based producers, especially as they enjoy a broader production portfolio of co-products than their ethane-based peers.

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Analysts at HSBC said in January that as oil fell faster than chemical prices in 2015, positive net pricing was the largest driver of operating earnings growth for the European chemical industry.

The explosion of US shale oil and gas production, meanwhile, gave US chemical producers a new and huge advantage over their peers in Europe and Asia. With typical, entrepreneurial zeal the industry grasped this opportunity with a tidal wave of capacity additions planned or under construction with startups from 2016.

However many of these investment decisions were based on oil at up to $100/bbl, giving a big differential between oil and gas values. There may well be delays or cancellations now that oil has collapsed and demand growth has slowed.

Low oil is having a disastrous effect on the finances of oil companies, large and small. One estimate suggests that 250,000 jobs have been shed globally in the oil and gas sector since the price collapse began.

Investment by oil majors is being severely curtailed, and this will impact their integrated chemicals operations. We can expect to see more project cancellations or delays in 2016.

Looking at demand, China’s economy looks set to endure permanently lower rates of economic growth as its population ages and economy rebalances. This means one of the world’s key drivers of oil and energy demand growth will need less fossil fuels, especially as the government there pushes renewables.

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Elsewhere, there are signs of slowing of economic growth in the US and many emerging markets are also slowing, especially those reliant on oil export income. Although lower oil prices leave more money in consumers’ pockets, there are few signs of this feeding through to more consumer spending at present.

Demand remains the driving factor for chemicals, with trade group Cefic forecasting only a 1% rise in chemicals production across Europe in 2016 because of sluggish domestic and international demand. The American Chemistry Council remains more bullish with a forecast of 3.1% for chemical production (excluding pharmaceuticals) in 2016 after a 3.8% gain in 2015.

ICIS and International eChem are publishing a new study, which includes various oil price scenarios.

Focus article by Will Beacham Ten Futuristic Technologies 1. The Hydrogen Economy Instead of guzzling imported oil (and being at the mercy of oil suppliers) we could turn water into hydrogen and burn that (or use to charge fuel cells.) Meanwhile, the only byproduct of the combustion of hydrogen is ... more water! However, hydrogen storage remains a thorny issue, due to its low density, and hydrogen may end up being only one of many interlocking components that replace the current oil economy.

2. Therapeutic Cloning Forget the stories about generating identical copies of a particular sheep or person. The whole idea behind cloning all along has been to grow replacement organs or tissue in a vat, which the body would see no reason to reject. Cancerous or damaged organs could be replaced by new, disease-free clones of themselves.

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3. Moore's Law Upheld The law, stated by Intel cofounder Gordon Moore in 1965, implies that available computer power can be expected to double every other year. For at least two decades pundits have been pointing out barriers to the law's fulfillment, and the chip industry has been smashing those barriers. Currently they can't agree if the law has a couple of more decades of life left, or 600 years. Either way, in terms of available computing power, it's clear that we ain't seen nothing yet.

4. Desktop 3-D Printing Instead of going to the store for your next gadget, you might download a design of your choosing and generate it in your desktop 3-D printer. The next step will be to design your own gadgets, post the designs, and sell them, etc. Toys, kitchenware, and decorative household items should be fair game, at least.

Cottage industry, here we come!

5. Location-Based Computing Instead of clicking an icon on a browser screen, you can walk outside, point your cell phone at an actual three-dimensional thing (presumably, a building that houses a business), click the phone, and get information about (or jump to the Web site of) whatever you were pointing at. As well as servers with Internet address, there will be servers with geographic coordinates.

6. Better, Cheaper Solar Cells The cost of photovoltaic cells (that turn sunlight into electricity) are coming down. In less than ten years the cost of solar energy could be at parity with the cost of electricity from the grid, and solar cells could be standard features in new residential construction. Your house could power itself about a third of the time. (Science can't do much about night and bad weather.)

7. Mobile Robots The recent DARPA challenge (where robot cars navigated through suburban traffic) hints at what might come. Why drive to the deli to pick up your order when you can just send your car?

We may see convoys of robot trucks on the highways. Admittedly, 32

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they'll probably have more initial acceptance in warehouses, handling pick-and-pull chores.

8. Pervasive Wireless Internet WiMAX, 3G, 4G, etc., all point to a pervasive wireless Internet, where being on-line everywhere, all the time, will be routine. That implies the possibility of full connectivity between any two random devices. Want to check your burglar alarm from your cell phone?

It'll be easy. Unjacking to get away and relax, however, may not be so easy.

9. Gene Therapy and/or Stem Cells A lot of maladies actually involve inherited conditions—they're in your genes, in other words. But scientists are working to change those genesand trick defective cells into growing correctly.

Perhaps, someday, birth defects will be as treatable as pneumonia.

10. Digital Libraries Having total connectivity is pointless if all you get is the latest gossip about Paris Hilton. But the digitization of mankind's accumulated worksproceeds apace. All of MIT's courses are now online, for instance, and, if you haven't done so, check out Google Book Search. The time will come when any straightforward factual question can be answered immediately, online. But, alas, those are always the easy questions.

Cheap oil, good for consumers, is slamming stocks. Why? The drastic drop in oil and stock prices stands in contrast with a US economy that, on the whole, is doing pretty well.

Here’s what experts think is going on.

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The price of crude is down 28% this year already, which in turn has dragged down energy company shares in the Standard and Poor’s 500 index by 13%, which has helped pull the overall index down 9%. Photo: Reuters New York: Wall Street is drowning in oil.

Stocks are having their worst start to a year in history in part because of a rapid plunge in the price of oil. The price of crude is down 28% this year already, which in turn has dragged down energy company shares in the Standard and Poor’s 500 index by 13%, which has helped pull the overall index down 9%.

This even though low oil prices—and the cheap prices for petrol and other fuels that result—are wonderful for consumers and many companies.

“It seems ironic that in the run-up to the global financial crisis we were worried about oil prices being too high in 2007 and 2008.

Now we’re worried about them being too low,” said Julian Jessop, head of commodities research with London-based researchers Capital Economics Ltd. The drastic drop in oil and stock prices stands in contrast with a US economy that, on the whole, is doing pretty well. US employers created 292,000 jobs in December, and few economists see the economy sliding into recession.

Here’s what experts think is going on.

Why is oil so low?

Because there is so much of it.

A long run of high oil prices inspired drillers to develop new techniques and to go to new places to find more oil, and they succeeded. In the US, improved oil drilling technologies known generally as fracking have added more oil to the global market than the total production of any other nation in Opec other than Saudi Arabia.

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Producers in the US and abroad haven’t cut back production very much, despite the low prices, and now the lifting of international sanctions against Iran could send more oil flowing into markets that are already awash in crude.

US stockpiles are at their highest level in at least 80 years, and the International Energy Agency (IEA) predicts that during the first half of this year global oil supply could outstrip demand by 1.5 million barrels per day.

Demand for crude has been growing steadily, but that may not last because economic growth in China, the world’s secondlargest oil consumer after the US, is slowing.

Why do low oil prices hurt the stock market?

Oil company profits are plummeting, so oil company shares are plummeting, and that is dragging down the whole market.

Analysts estimate that profit for all S&P 500 companies in total are on track to be down a recession-like 5.8% for 2015. But if energy companies were removed from that figure, S&P 500 profits would be up a very healthy 5.7% for the full year.

That profit drop directly leads to lower share prices that drag down entire indexes. Two of the biggest oil companies in the world, Exxon and Chevron, are part of the 30-member Dow Jones industrial average. Of the 20 biggest share price losers in the S&P 500 this year, 13 are energy companies.

Investors are also selling shares of companies that may have exposure to the oil industry, like certain banks. And the price of oil has now fallen so low that investors are also worried that it could mean global economic growth is much weaker than expected, which could hurt all companies.

Aren’t lower oil prices a good thing for the economy?

It depends on why prices are lower.

If they fall because new supplies have been found, it usually helps the broader economy, and markets held up fairly well during 35

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oil’s big slide from over $100 a barrel in 2014 to under $50 a barrel last year.

“In the long run, lower oil prices should be positive or at worst neutral for the world economy because all they’re really doing is transferring income from oil producers to oil consumers,” Jessop says.

But this latest plunge in prices to under $30 a barrel has investors worried that oil prices are falling because global growth is slowing, as businesses and consumers in many developing countries, particularly China, cut back on spending. Bruce Kasman, chief economist at JPMorgan Chase, says that steep drops in oil prices have historically been a sign of a weakening global economy.

Also, US consumers have remained cautious about spending the money they aren’t putting into their gas tanks, which limits the benefit to the broader economy. Americans saved 5.5% of their incomes in November, up nearly a full percentage point from a year earlier.

Kasman estimates that US spending grew at a tepid pace of just 1.5% in the final three months of last year. “There’s no doubt that the consumer spending growth figures for the US, Europe and Japan have disappointed,” he said.

Some of that likely reflected a temporary drag from warm weather, as Americans spent less on winter clothing and utilities.

That could turn around in the first quarter, giving the economy a lift, Kasman said.

Delta Air Lines told investors this week that bookings for this spring are ahead of last year’s pace because cheaper petrol means consumers have more money.

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Could this lead to broader turmoil, the way the subprime mortgage crisis did?

It is already having some ripple effects, but the energy market isn’t nearly as big or far-reaching as the housing market.

When oil prices were high, lots of banks, including some of the biggest on Wall Street, made loans to energy companies to finance drilling in North Dakota, Texas and elsewhere. Dealogic estimates that the oil and gas industry has roughly $500 billion in outstanding debt. According to the Federal Reserve, there is $11 trillion in outstanding residential mortgage debt.

Still, some are feeling it. Oil company cash flow is slowing, and companies are finding it harder to repay their loans. Oil and gas company bankruptcies are rising, and the entire market for socalled junk bonds has been shaken as a result of energy company defaults.

JPMorgan Chase, Wells Fargo, Citigroup and Bank of America all had to write down the value of energy loans or set aside more money to cover losses. BofA executives told investors this week that energy loans were roughly 2% of its total loans. Smaller regional banks could to be more exposed relatively than the big Wall Street banks.

Is there an oil price that would be good for the market and consumers?

Jessop thinks that a price of about $60 a barrel would do the trick. “High enough to keep the main producers in business but low enough to provide a real boost to the incomes of consumers,� he says. He expects prices to return to that level by the end of next year as oil companies pare back exploration and the glut is worked off.

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IndiScan Hon’ble Prime Minister dedicates IndianOil's 11th Refinery to the Nation

Hon’ble Prime Minister of India, Mr. Narendra Modi, dedicated IndianOil’s 11th refinery at Paradip in the service of the nation on February 7, 2016 amidst thunderous applause by more than two lakhs cheering audience and the musical strains of Bande Utkal Janani, Odisha State anthem.

Hon’ble Prime Minister, in his address, said, "Paradip Refinery of IndianOil marks the beginning of a new era of development.

Following the commissioning of the Refinery, an investment of Rs. 1, 00,000 crore will come into the State. Paradip Refinery is the Vikas Deep for Odisha. The Refinery will contribute to the development of the state and bring new hope for the youth. The people of Odisha know about the importance of the Refinery.

There will be every support available from the Government of India to sustain this march of development."

Hon’ble Prime Minister especially complimented the Ministry of Petroleum & Natural Gas for initiating a number of new initiatives for the benefit of the citizens. He also emphasised the need for more production of LPG in order to reach the clean fuel to millions of Indian households--taking care of women who still work in the kitchen under the smoke of firewood. We want to reach out to every household with LPG, with the INDMAX at Paradip Refinery, we will be closer to this goal”, he said.

Mr. Naveen Patnaik, Hon'ble Chief Minister of Odisha, said that Paradip Refinery is the pride of Odisha. It is a mark of Odisha's 38

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development. He also thanked the Hon'ble PM for his support and cooperation for the refinery in Paradip.

Mr. Dharmendra Pradhan, Hon’ble MoS (I/c) for Petroleum & Natural Gas, in his welcome address, said, "This refinery was a dream of many and today the dream is coming true. I am honoured by the presence of the Hon'ble Prime Minister of India, Mr. Narendra Modi ji today at IndianOil Paradip refinery. I am also honoured by the presence of our guests from Sri Lanka and Bangladesh. Mr. Pradhan also mentioned that we all dream of a developed Odisha. A new milestone has been reached today on this pious land of Odisha. Through this Paradip Refinery, we would try to enrich the Eastern Province of India, create job opportunities and bring about a transformation in the State of Odisha, he added.

Mr. Narendra Modi, Hon'ble Prime Minister at Pardaip Refinery dedication ceremony in the presence of Dr. S. C. Jamir, Hon'ble Governor of Odisha, Mr. Naveen Patnaik, Hon'ble Chief Minister of Odisha, Mr. Dharmendra Pradhan, MoS (I/c) for Petroleum & Natural Gas, Mr. K.D. Tripathi, Secretary, MoP&NG along with Chairman IndianOil, Shri B. Ashok, State guests from Bangladesh & Sri Lanka and senior members of the Parliament.

Mr. Jual Oram, Union Minister of Tribal Affairs, thanked all the stakeholders for being part of the occasion that heralded a new wave of development for the state of Odisha and the nation as well.

The other top-level dignitaries present on the occasion were the Hon’ble Governor of Odisha, Dr. S C Jamir. Odisha State Ministers who graced the occasion were Hon’ble Minister for Industries, School & Mass Education, Mr. Debi Prasad Mishra, 39

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and Hon’ble Minister for Co-Op & Excise, Dr. Damodar Rout.

Hon’ble Members of Parliament Dr. Kulamani Samal (Lok Sabha) and Mr. Ranjib Biswal (Rajya Sabha), were also present.

Special foreign guests were EH Dr. Towfiq-e-Elahi Chowdhury, BB, Advisor to PM of Bangladesh (Energy, Power & Mineral Resources) and H.E. Dr. Anoma Gamago, Dy. Minister of Petroleum Resources Development, Srilanka.

Mr. K. D. Tripathi, Secretary, (Petroleum), Mr. B. Ashok, Chairman, IndianOil, and Mr. Sanjiv Singh, Director (Refineries), IndianOil, were also present on the ocassion.

Hon'be PM takes a tour of main units of the Refinery On his arrival, Hon’ble Prime Minister was taken to the Main Control Room, which is the heart of a refinery. Mr. Sanjiv Singh, Director (Refineries), gave a briefing on the operation of the control room which is the biggest Control Room among IndianOil refineries and it can control each and every refinery operation along with the facility of startup and shutdown.

He also visited the INDMAX unit, an in-house technology adopted in the refinery, the finest representation of ‘Make in India’ campaign of the Government of India. The continuous endeavour of the IndianOil leadership is to identify the challenges and opportunities for strengthening the Indian economy through development of pioneering technologies for import substitution, dynamically supporting local talent and trade, skill development, creation of job opportunities, spurring manufacturing enterprises, and facilitating inclusive growth to realise the vision of ‘Make in India’ in its true spirit.

‘Make in India’ Sculpture of INDMAX unveiled At Paradip Refinery, Hon’ble Prime Minister unveiled the glorious and illustrative symbol of ‘Make in India’- a sculpture of the inhouse technical innovation of IndianOil’s R&D- the INDMAX technology. The sculpture is a national salute to Ho’ble Prime Minister’s initiatives to take India to the next level of growth by 40

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attracting big investments in the country, and giving a boost to Indian skill and trade for economic development. The INDMAX technology implementations will double LPG production. This will support the mission of Government of India for providing domestic LPG gas to every household in next three years. At present, approximately 50% of LPG is imported in the country.

India tops Asia in sending scientists, engineers to US PRESS TRUST OF INDIA WASHINGTON, JANUARY 14: India continued its trend of being the top country of birth from Asia for immigrant scientists and engineers in US, with 950,000 out of the continent’s total 2.96 million, according to a new report.

From 2003 to 2013, the number of scientists and engineers residing in the US rose from 21.6 million to 29 million. This 10year increase included significant growth in the number of immigrant scientists and engineers, from 3.4 million to 5.2 million, the researchers said.

Of the immigrant scientists and engineers in the US in 2013, 57 per cent were born in Asia, 16 per cent were born in Europe, 6 per cent were born in Africa, 20 per cent were born in North America (excluding the US), Central America, the Caribbean, or South America, and less than 1 per cent were born in Oceania.

Among Asian countries, India continued its trend of being the top country of birth for immigrant scientists and engineers, with 950,000 out of Asia’s total 2.96 million.

India’s 2013 figure represented an 85 per cent increase from 2003, according to the report from the US National Science Foundation’s National Centre for Science and Engineering Statistics (NCSES).

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Immigrants went from making up 16 per cent of the science and engineering workforce to 18 per cent, the report said.

In 2013, 63 per cent of US immigrant scientists and engineers were naturalised citizens, while 22 per cent were permanent residents and 15 per cent were temporary visa holders.

Also since 2003, the number of scientists and engineers from the Philippines increased 53 per cent and the number from China, including Hong Kong and Macau, increased 34 per cent.

The report found that immigrant scientists and engineers were more likely to have earned post-baccalaureate degrees than their US-born counterparts.

In 2013, 32 per cent of immigrant scientists reported their highest degree was a master’s (compared to 29 per cent of US-born counterparts) and 9 per cent reported it was a doctorate (compared to 4 per cent of US-born counterparts).

The most common fields of study for immigrant scientist and engineers in 2013 were engineering, computer and mathematical sciences and social and related sciences.

Over 80 per cent of immigrant scientists and engineers were employed in 2013, the same percentage as their US-born counterparts.

Among the immigrants in the science and engineering workforce, the largest share (18 per cent) worked in computer and mathematical sciences, while the second-largest share (8 per cent) worked in engineering.

Three occupations — life scientist, computer and mathematics scientist and social and related scientist — saw substantial immigrant employment growth from 2003 to 2013.

(This article was published on January 14, 2016)

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Indian refiners need to invest $4.5B to produce Euro VI fuels by 2020 01.07.2016 | Hydrocarbon Processing India has advanced the date for nationwide implementation of Euro VI fuels by four years to April 1, 2020, in an effort to curb pollution, according to the report.

Indian refiners need to invest 300 billion rupees ($4.5 billion) to produce fuels in compliance with new Euro VI rules, the nation's road transport minister said this week.

NitinGadkari delivered the projection, which was captured by news agency Reuters.

India has advanced the date for nationwide implementation of Euro VI fuels by four years to April 1, 2020, in an effort to curb pollution, according to the report.

Pollution levels in Indian cities have often been compared to China's Beijing. A 2014 study from the World Health Organization said India's capital city of New Delhi had the worst air quality out of 1,600 cities surveyed worldwide.

Refining needs better and cheaper technology. For that refiners must come out of box and try new cheaper technologies like Crude Oil Sulfur Removal and Quality Improvement (COSRQI) It should do in 1 billion and save 3.5 billion.

BP TO SELL ALABAMA PETROCHEMICALS COMPLEX TO INDORAMA

By Mary Page Bailey | January 6, 201 ChemEngg.

BP plc (London; www.bp.com) has agreed to sell its petrochemical complex in Decatur, Ala., to Indorama Ventures Public Co., as part of a previously announced effort to refocus its global petrochemicals business for improved profitability and 43

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long-term growth. The divestment is in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilize BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.

“This agreement allows us to focus investment on our world-class PTA production facility in Cooper River, S.C., and a key PTA feedstock producer in Texas City, Tex., as well as to maintain a strong position in the important U.S. petrochemicals industry,“ said Rita Griffin, chief operating officer of BP Global Petrochemicals.

Under the terms of the agreement, Indorama Ventures will purchase the Decatur complex, including working capital and related infrastructure and assume certain contracts with suppliers and customers. The parties anticipate the deal closing to occur in early 2016 when employees will transfer to the new owner.

“We are grateful to our employees who have made the Decatur facility a safe, reliable and valuable contributor to BP’s business for so many years,” said Luis Sierra, head of BP’s global aromatics business unit. “We believe this agreement — with an established global industry leader such as Indorama Ventures –provides a compelling future for those employees, the site and the community of Decatur.”

The Decatur complex makes chemicals essential for the production of thousands of items, from plastic water bottles to flatscreen televisions. Located on 1,000 acres in Northern Alabama, the complex can produce one million tons per year of PTA, as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flatpanel displays, ultra-thin data storage tape and other products.

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Elsewhere, BP is spending $200 million to upgrade its Cooper River plant and its sister facility in Geel, Belgium – the largest PTA-producing sites in the Americas and Europe, respectively.

The investment will enable the two facilities to lower operating costs, improve reliability and reduce emissions.

Emission test

By BusinessLIne January 8,2016 Improved fuel norms are useful, but will achieve little in isolation The Centre’s decision to jump an entire cycle on vehicle emission norms and move directly to Bharat Stage VI —corresponding to Euro VI norms — by 2020, skipping Bharat Stage V altogether, has expectedly been welcomed by environmental activists.

Equally expectedly, it has caused disquiet among automobile manufacturers and fuel refiners over the issue of the heavy investments they would be required to make in order to conform to the new norms by the stipulated deadline. The case for speeding up the switch to Stage VI is simple — India’s cities are reeling under toxic levels of pollution, with six of the world’s ten most polluted cities being in India. Vehicle emissions, particularly diesel emissions, which contain high levels of particulate matter, are one of the key contributors to this, and at Stage VI levels of emission controls, particulate emissions from compliant diesel engines will match those of petrol engines. Those arguing for bypassing Stage V also say that Stage VI technology achieves superior levels of actual, in-use emissions, and greater reductions in nitrous oxide emissions compared to Stage IV and V than the difference in limits alone indicates. And by speeding up Stage VI to 2020, India, under pressure for not committing to sufficient reductions at the recently concluded climate talks, will also get some bragging rights for having beaten most nations, including several advanced economies, to that standard.

However, the question of why, when a detailed roadmap for achieving Stage V and VI was already in place, the Centre chose to speed things up has not been adequately answered. The move appears something of a knee-jerk reaction to the pollution crisis 45

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gripping Delhi. It is also difficult to avoid the impression that the move may have been prompted more by political considerations, since the ruling AamAadmi Party in Delhi had managed to steal a march with its experimental road rationing plan in Delhi. The fuel issue merits more serious consideration. Although BS IV norms are nominally in effect, BS-IV petrol and BS-IV diesel are available only in 24 per cent and 16 per cent of the domestic market, respectively. The entire country will have BS IV quality fuel only by April 1, 2017. Achieving fuel availability by the deadline, therefore, remains a question mark.

It is also worrying that the pollution control debate appears to be narrow-focused on emission norms alone. For meaningful impact, these will have to be accompanied by other measures, such as strict scrappage rules, proper monitoring and control of emissions, as well as enforcement of other regulations, including those covering overloading of commercial vehicles. Even this will address only part of the problem since construction dust, coalburning power plants, and lack of waste management leading to burning of rubbish contribute significantly to pollution levels.

Rather than go for piecemeal action, the Centre and States need to address the issue in a more holistic manner.

(This article was published on January 8, 2016) Doing scientific research will be made easy: Modi tell scientists PTI, MYSURU, JAN 3: PM calls for bridging the gap between traditional knowledge and modern science Looking ahead Prime Minister NarendraModi and Karnataka Governor 46

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VajubhaiRudabhaiVala (right) arrive for the inauguration of 103rd Indian Science Congress at the University of Mysore on Sunday The Centre will make it easier to do scientific research in the country and science administration, too, will be improved, Prime Minister NarendraModi told scientists while stressing that their work should focus on the ‘five-Es’ — economy, environment, energy, empathy and equity.

In his inaugural address at the Indian Science Congress here, Modi called for greater scientific collaboration between central and state-level institutions and agencies.

He asked scientists from India and overseas to bridge the gap between traditional knowledge and modern science so that localised and more sustainable solutions could be found to various challenges.

He said the impact of science would be the most when scientists and technologists keep the principles of what he called “Five Es” at the centre of their enquiry and engineering.

‘Economy’— related to finding cost-effective and efficient solutions; ‘Environment’— to keep the carbon footprint at the lowest and with least impact on the ecology; ‘Energy’ — when our prosperity relies less on energy and the energy we use keeps our skies blue and our Earth green; ‘Empathy’ — when our efforts are in tune with our culture, circumstances and social challenges and ‘Equity’ — when science advances inclusive development and improves the welfare of the weakest, he said.

Modi said good governance was not just about policy and decision making, transparency and accountability but also about integrating science and technology into the choices to be made and the strategies to be pursued.

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“We will also try to increase the level of resources for science and deploy them in accordance with our strategic priorities,” he said at the ‘ManasaGangotri’ campus of the University of Mysore, which is celebrating its centenary.

Some 500 eminent scientists and experts are attending the fiveday Congress with the focal theme ‘Science and Technology for Indigenous Development in India’, in tune with Modi’s big push for ‘Make in India’ programme.

(This article was published on January 3, 2016) Now Mineral Water costlier than Mineral Water in India NDTV, Jan 11,2016 The continued softness in global crude prices and the relative stability in the rupee-dollar exchange rate means oil in India now costs less than a bottle of mineral water. However, the drop in domestic petrol and diesel prices has not kept pace with global prices because the government has repeatedly hiked excise duty on petrol and diesel to increase its revenues. Earlier this month, excise duty on petrol and diesel was hiked for the third time in the current fiscal year.

The government last week said that the price of Indian crude basket has fallen to $29.24 per barrel or Rs 1,956.45 per barrel at Rs 66.91per dollar as on January 7, 2016. An oil barrel is 159 litres, so the price of one litre of crude oil comes to Rs 12 per litre, which is 20 per cent lower than a litre of mineral water priced at Rs 15.

The current situation aptly sums up the spectacular drop in global crude oil prices. Oil prices have already fallen over 70 per cent since the downturn began in mid-2014. Goldman Sachs says oil could hit $20 a barrel.

The crash in global crude prices has however moderately 48

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benefitted Indian consumers as pump prices have fallen by just 20 per cent as compared to the 70 per cent drop in global prices.

Basic excise duty on petrol has gone up by Rs 7.73 per litre in fiscal year 2015-16 while on diesel it has risen to Rs 7.83 per litre.

The government had in four instalments raised excise duty on petrol and diesel between November 2014 and January 2015 to lessen the reduction in retail rates, which followed falling international oil rates.

If the government would not have raised these duties, consumer price of petrol and diesel should have been lower by Rs 10.02 a litre and Rs 9.97 per litre, respectively.

Petrol currently costs Rs 59.35 per litre in Delhi while diesel is priced at Rs 45 a litre India’s state refiners agree to jointly build new world-scale refinery 01.25.2016 | Indian Oil Corp., the nation’s biggest refiner, will build a 60 MMtpy (1.2 MMbpd) oil refinery in Maharashtra together with Bharat Petroleum, Hindustan Petroleum and Engineers India.

India’s state-run refiners plan to build one of the world’s largest refineries on the country’s west coast, Oil Minister Dharmendra Pradhan said in a Twitter post Monday Indian Oil Corp., the nation’s biggest refiner, will build a 60 MMtpy (1.2 MMbpd) oil refinery in Maharashtra together with Bharat Petroleum Corp., Hindustan Petroleum Corp. and Engineers India.

The companies will develop the project in two phases, with the first 800,000 bpd facility costing more than 1 trillion rupees ($14.7 billion), according to Pradhan.

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The planned refinery will produce gasoline, diesel, liquefied petroleum gas (LPG), jet fuel and supply feed stock for petrochemical plants in Maharashtra, Pradhan said.

Reliance Industries’ twin refineries at Jamnagar in neighboring Gujarat state have a combined capacity of 1.24 MMbpd. That makes that plant currently the world’s biggest refining complex.

“In years to come, India will import products if capacity is not augmented,” Deepak Mahurkar, leader for the oil and gas team at PricewaterhouseCoopers in India, said in an interview with Bloomberg. “Availability of domestic and export markets make room for more capacity.”

A timeline for construction of the refinery was not disclosed.

The project may take six to 10 years for design, land acquisitions and construction, MahurkartoldBloomberg.

India to offer tax discount if Iran accepts all oil payments in INR Iran may no longer be keen on taking payments in rupee when it can get paid in US dollar and Euro with the lifting of tinternational trade sanctions PTI January 11, 2016

A file photo of the Mangalore refinery, one of the Indian importers of Iranian crude. In June last year, Iran agreed to receiving all of the payment in rupees but wanted waiver of 50

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40% withholding tax, to which the finance ministry has agreed.

Photo: Bloomberg New Delhi: The finance ministry will exempt payments to Iran from hefty withholding tax if the Persian Gulf nation were to receive full payment for oil it sells to India in rupees.

With sanctions against Tehran blocking payment channels, 45% of the oil India imports from Iran are settled in rupees since January 2012. The remaining gets accumulated and cleared as and when easing of sanctions opens payment window.

In June last year, Iran agreed to receiving all of the payment in rupees but wanted waiver of 40% withholding tax. Finance ministry is agreeable to such waiver, a senior government official said. “The Budget for 2012-13 had exempted Indian refiners from paying withholding tax when paying 45% of dues in rupees to Iran. The same benefit will be extended to 100% payments made in rupees,� he said.

As of now, Indian refiners owe Iran $5.8 billion. Cabinet approval for exempting payments to National Iranian Oil Co (NIOC) would be sought, he said.

But Iran may no longer be keen on taking payments in rupee when the option of getting payment in hard tradable currencies like US dollar and Euro is on the verge of opening. Oil and banking sanctions against Iran may be lifted as early as this month following a historic deal the Persian Gulf nation reached with the US and other western powers in July last year.

Sanctions are to be lifted on Iran agreeing to limit its nuclear programme. Sources said Iran was using the rupee payment it received since January 2012 to pay for imports from India. It had planned to use the full payment received in rupee for the same purpose.

Rupee is not freely traded on international markets. In March 2012, the finance ministry had issued a notification exempting 51

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45% of payments made to Iran in rupee from any local tax. The notification, under Section 10 (48) of the Income Tax Act, related with tax exemptions in regard to foreign oil companies selling crude oil in India has notified the National Iranian Oil Company has as a “foreign company”.

This followed fears that the money paid to NIOC may be considered as income generated by Iranian firm in the country and liable to be taxed.

Iran is India’s 5th largest crude oil supplier, selling 6.53 million tons of oil in the first half of 2015-16. Iranian supplies made up for 6.6% of the 99.36 million tons of oil India imported during AprilSeptember.

Iran was India’s second biggest supplier of crude oil after Saudi Arabia till 2010-11 and made up for 12 per cent of India’s oil needs. But sanctions relegated it to 7th spot last fiscal with supplies of 10.95 million tons. This year it has regained some lost ground.

India – Africa Hydrocarbon Conference Ushering a new era of partnership between India & Africa, the 4th India – Africa Hydrocarbon Conference was held in New Delhi on January 21st & 22nd 2016.

This comes as a significant boost to India’s energy security manifold with the aim of enhancing co-operation towards ‘Development Transmitting Partnership’ in the field of Hydrocarbons.

About 22 African nations participated in the conference, out of which Algeria, Morocco, Mauritius, Liberia, 52

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Sudan, South Sudan, Tunisia, Senegal and Equatorial Guinea were represented by their Ministers.

Drawing inspiration from Honourable Prime Minister Shri Narendra Modi’s words, “When the sun sets, tens of thousands of homes in India and Africa become dark. We want to light up lives of our people and power their future.” at the India- Africa Forum Summit held about three months back, the theme of the conference was "Energizing the bottom of the pyramid – Together towards tomorrow".

Addressing the conference, Minister of Petroleum and Natural Gas (I/C) Shri Dharmendra Pradhan, spoke about how India apart from being an attractive market for crude oil and gas, would be an able partner for African nations across the industry value chain. He highlighted the importance of Africa in India’s Crude imports, with approximately 16% of our crude consumption being fulfilled by African nations.

Shri Pradhan also emphasised on the rapid growth of the African Hydrocarbon sector with new discoveries of Oil reserves growing by over 100% and gas reserves by over 55%.India on the other hand, has emerged as the fastest growing major economy in the world today with over 7% GDP growth.

This puts Africa in a good position as an oil as well as gas exporter for India. Despite being a net importer of crude oil, India, with 23 refineries, has become a net exporter of petroleum products by investing in refineries designed for export. India has emerged as a refining hub with the fourth largest refining capacity in the world with 4.5% of world share.

In addition to this, Indian companies play an active role in Africa’s hydrocarbon sector, having a major presence in exploration and production segments with total investments of nearly US$ 7-8 billion in Mozambique, Sudan and South Sudan and some key Oil & Gas projects in Gabon, Libya & Egypt.

With Indian companies providing comprehensive Engineering, Procurement and Construction (EPC) services to the hydrocarbon 53

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sector in Africa and development of State- of-the- Art for deployment across upstream and downstream sectors by Indian research and training institutes in hydrocarbon sector, the Minister in his speech expressed great optimism and potential for collaboration between India and Africa.

India has also offered a concessional credit of $10 billion over next 5 years for African countries, calling upon public and private sector both in India and Africa to identify viable projects which can be financed and pursued through this line of credit.

Shri Pradhan also held bilateral meetings with the Minister’s of the African Nations to discuss on enhancing co-operation in hydrocarbon sector between India & various African Nations.

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GlobeScan Fluor To Build $1-Billion Petroleum-Refining Facility In Mexico

By Gerald Ondrey | January 11, 2016 Fluor Corp. (Irving, Tex.; www.fluor.com) says that ICA Fluor, its industrial engineering and construction joint venture with Empresas ICA, S.A.B. de C.V. (www.ica.com.mx/ir), was authorized by Pemex Transformación Industrial (Pemex) to proceed with the engineering, procurement and construction (Phase II) of the Madero Clean Diesel project at the Madero Refinery in Tamaulipas, Mexico. Fluor booked its $500 million share of the contract in the fourth quarter of 2015.

ICA Fluor will provide detailed engineering, procurement, construction, commissioning and start-up services for two 25,000barrel-per-day diesel hydrodesulfurization trains and associated facilities. The project also includes installation of new hydrogen, sulfur recovery and sour water treatment plants, the revamp of the existing diesel hydrodesulfurization unit, and offsites and utilities to integrate the new production facility with the existing refinery. The project is scheduled to be completed in the first quarter of 2018.

The project is part of Pemex’s clean fuels program, its comprehensive development and modernization program, and is designed to increase Mexico’s production of ultra-low sulfur diesel in accordance with applicable environmental standards.

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These are the energy stories Houston cared about in 2015 Posted on December 31, 2015 | By Rhiannon Meyers New energy CEOs in 2015

Aaron M. Sprecher / Bloomberg Cheniere CEO CharifSouki was ousted in December 2014. The company is searching for his replacement.

As 2015 winds to a close, the energy industry is preparing to close the chapter on one of its most tumultuous years in decades.

The troubles that started in late 2014 when oil prices started collapsing deepened further this year, starting with oil field services companies and offshore drilling contractors, then trickling into the exploration and production companies as the crude rout lingered.

The early optimism for a quick rebound, fueled by a stabilization in crude prices in the spring, quickly faded with the fresh collapse in the summer as the crude glut remained stubbornly high, demand started to falter and speculation mounted that more oil was headed to market.

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The year was marked by layoffs, bankruptcies and spending cuts, but there were some bright spots, too, as the battered energy industry continued to chug forward with a few new projects despite the brutal market conditions.

With crude prices stuck firmly below $40 a barrel, and energy companies predicting another austere year in 2016, here’s a look back at some of the most popular stories that appeared on FuelFix.com this year.

1. Exxon Mobil’s new campus.

Houston Chronicle energy reporter Jordan Blum took readers behind the scenes of Exxon Mobil’s sprawling new complex near The Woodlands, four years after construction started. His tour in August gave readers the first glimpse inside a closely watched project that has reshaped the region north of Houston in our most-read Fuel Fix post of the year. Designed to accommodate 10,000 employees across 385 acres, the campus looks more like a modern college than a energy company office, replete with sunlit hallways, a wellness center and surprisingly modest personal offices and conference rooms. Employees were still relocating to the campus, which was slated for full completion this year.

2. Layoffs.

As oil prices refused to budge higher, energy companies cut deeper and deeper, paring back their payrolls to match a diminished level of activity. By year’s end, the number of job cuts exceeded 250,000 worldwide, although that number may be underestimated. The Federal Reserve Bank of Dallas estimated the job losses at 70,000 in the U.S. alone. The numbers were staggering for some companies.

Oil field services behemoth Schlumberger revealed plans in January to chop 9,000 jobs. The announcement, the first of a series of similar disclosures, was the second most-read story for the year, followed by other big layoff announcements from Chevron, which slashed 1,500 jobs; Conoco Phillips, which trimmed 10 percent of its global workforce, a second round of job cuts by Schlumberger, 57

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bringing the total number of losses to a whopping 20,000; and some Houston-specific job losses at Sulzer Pumps in Brookshire and the local office of Swiss contract driller Noble Corp.

3. Executive pay.

The downturn didn’t strike all energy workers equally. One of Houston’s richest, Richard Kinder, executive chairman of pipeline conglomerate Kinder Morgan, saw his wealth balloon by about $2.5 billion from late 2014 to early 2015, according to rankings by Forbes magazine released in March. In July, it was revealed that Houston’s highest-paid executives all came from the energy industry. And seven of the 10 made more money they did during the boom times of 2013. But not everyone was so lucky. Energy giant BP announced in January that it would freeze most of its employee pay in 2015 in an effort to save money during the tough times.

4. A new gas station.

For the first time in history, Mexico’s national oil company opened its first gasoline station outside the country’s borders. The Pemex station in the 7900 block of Park Place Blvd. in Houston held a grand opening in early December with much fanfare, including a mariachi band that serenaded guests. The station is the first of several planned for the area.

5. Shell strikes oil.

Slumping oil prices didn’t stop Royal Dutch Shell from pressing forward with its hunt for oil in the Gulf of Mexico. In November, the energy giant announced that it had found 100 million barrels of oil equivalentburied at its Kaikias field, about 60 miles south of the Louisiana coast. A 100-million-barrel find “is not a gamechanger in the Shell portfolio,” said Rebecca Fitz, senior director at IHS Energy. “But this discovery is completely consistent with what Shell is trying to do from its streamlined exploration program.”

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6. Energy company mega-deal.

Schlumberger scooped up Houston-based oil tool maker Cameron International Corp. in a deal worth about $12.8 billion, one of the largest energy acquisitions this year. The deal, slated to close in early 2016, is an attempt to create a company that can offer more services in more locations.

7. Refinery strikes.

The United Steelworkers union went on strike in January, initially walking out of nine plants across the nation, including five in the Houston area, in the largest refinery strike in 35 years. The action eventually spread to 15 refineries across the U.S. Months of negotiations followed before workers finally reached a deal to address concerns about unsafe working conditions, including worker fatigue, the use of contractors and annual wage increases.

The strike final ended in July when employees at Marathon Petroleum’s Galveston Bay Refinery returned to work.

8. CEO retires.

Apache Corp.’s longtime chairman and chief executive G. Steven Farris stepped down in January, marking an end to his 22-year career with the Houston-based oil company. “It has been a privilege to lead one of the top independent oil and gas producers and work alongside some of the best professionals in the business,” Farris, 66, said in a statement. He was replaced by John Christmann, the company’s executive vice president and chief operating officer for North America.

9. Bankruptcies.

The longer-than-expected period of anemic oil prices began to take its toll on North American oil companies, with the number of bankruptcies rising to 37 by the end of November. Sixteen were based in Texas. With crude prices hovering well below levels considered economic to continue expanding and drilling, and no end in sight to the global crude glut, several more oil companies appear poised to run out of cash or miss the deadline to pay off 59

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their debt, which could lead to more bankruptcies in the coming months.

Categories: Bankruptcy, Crude oil, Deals, Exploration, featured Tags: 2015 | Apache | BP | cameron | Conoco Phillips | ConocoPhillips ships first LNG from Australian megaproject Posted on January 11, 2016 | By Robert Grattan

(Tomohiro Ohsumi/Bloomberg) HOUSTON — The first cargo of liquefied natural gas has sailed from the mammoth Australia Pacific LNG facility in Queensland, ConocoPhillips and its partners in the project announced early Monday.

The shipment, carried on the 935-foot meter tanker Methane Spirit and bound for customer in Asia, is among the first in a wave of liquefied natural gas projects that are coming online even as low oil prices have dragged down the value of natural gas on the international markets they serve.

For the companies behind it, the cargo is an important first step toward the project transitioning from a cash-sink to cash60

January 2016

generator after years of construction and more than $17 billion in investment.

Houston’s ConocoPhillips and Australia’s Origin Energy each own a 37.5 percent stake in the venture, and China’s Sinopec owns the remaining 25 percent and is its largest customer. Kansai Electric Power, a Japanese utility, has also signed contracts for some shipments.

The Australia Pacific LNG, or APLNG, facility takes coal seam gas from Eastern Australia, liquefies it and then ships the fuel to customers in Asia. Monday’s shipment sailed from the first liquefaction train, and a second is due online in the second half of 2016.

The project’s backers began construction of the facility in 2011 hoping to capture the margin between cheap U.S. natural gas and more expensive intentional gas, which is often linked to oil prices.

However, the oil bust has depressed natural gas prices abroad and left immediate profitability of APLNG uncertain — Origin has said it needs between $38 and $42 per barrel international oil before it sees positive cash flow from its investment, according to the Sydney Morning Herald.

Still, the project’s backers have continued to pour billions into the project’s construction even as their budgets were crimped by low oil prices and the large investment weighed on their balance sheets.

ConocoPhillips said in a statement that an operational APLNG would allow it more financial flexibility moving forward. The independent oil and gas producer expects the project to be selffunding after the second train comes online later in 2016.

“This is a significant milestone for our company and we are proud to have safely loaded the first cargo from APLNG,” said Ryan Lance, chairman and chief executive officer, in a written statement.

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APLNG’s first shipment comes as another Houston company, Cheniere Energy, is set to receive its first tanker at the $18 billion natural gas liquefaction and export terminal the company has built at Sabine Pass in Cameron Parish, Louisiana.

That tanker, the 290-meter Energy Atlantic, last reported a position of about 50 kilometers off the Louisiana coast. It could soon become the first ship to depart the mainland U.S. carrying a cargo of American liquefied natural gas.

Cheniere Energy didn’t respond to a request for comment on Monday.

Women CEOs Of The S&P 500 This list names all the women who currently hold CEO positions at S&P 500 companies. Women currently hold 21 (4.2%) of CEO positions at S&P 500 companies. To find out how many women are at other levels of S&P 500 companies, take a look at the Women in S&P 500 Companies pyramid.

Topics: Women in Leadership Centers: Equity in Business Leadership Date: December 14, 2015 • Mary T. Barra, General Motors Co. (GM) • Heather Bresch, Mylan Inc. • Ursula M. Burns, Xerox Corp.

• Debra A. Cafaro, Ventas Inc. • Susan M. Cameron, Reynolds American Inc. • Safra A. Catz, Oracle Corp. (co-CEO) • Lynn J. Good, Duke Energy Corp.

• Marillyn A. Hewson, Lockheed Martin Corp.

• Lauralee E. Martin, HCP Inc. • Gracia C. Martore, TEGNA • Marissa Mayer, Yahoo Inc. • Carol Meyrowitz, TJX Companies, Inc. • Beth E. Mooney, KeyCorp 62

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Denise M. Morrison, Campbell Soup Co. • Indra K. Nooyi, PepsiCo, Inc. • Phebe N. Novakovic, General Dynamics Corp.

• Debra L. Reed, Sempra Energy Corp.

• Barbara Rentler, Ross Stores Inc. • Virginia M. Rometty, International Business Machines (IBM) Corp.

• Irene B. Rosenfeld, Mondelez International Inc. • Meg Whitman, Hewlett-Packard Enterprise Upcoming Changes • Carol Meyrowitz will be stepping down as CEO of TJX Companies, Inc. and will move into the role of executive chairman for at least three years on January 31, 2016.

•

Methodology: This list is based on the S&P list of companies published by Dow Jones from October 2014. Whenever possible, we update our list throughout the year whenever a woman becomes CEO or departs a CEO position at any of the listed companies. Women are counted in our list starting on the date they officially take over their positions. We strive to keep this list accurate and timely; if you have found that we have missed something, or have any questions, please submit that information here: http://www.catalyst.org/what-we-do/services/ask-catalyst.

Catalyst also maintains an historical list of women CEOs that have appeared on the Fortune list from 1972-2014. If you would like a copy of the list, please submit a request here: http://www.catalyst.org/what-we-do/services/ask-catalyst.

How to cite this product: Catalyst. Women CEOs of the S&P 500.

New York: Catalyst, November 18, 2015.

Petrobras cuts investment by USD 32 billion SãOPAULO, January 13, 2016 Petrobras will cut its five-year investment plan by USD 32 billion, Brazil’s semi-public multinational energy firm announced on Tuesday.

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The company intends to invest USD 98.4 billion between 2015 and 2019, a 25% decrease from its planned USD 130.3 billion. It will also cut capital spending and slow its oil production from 2.19 million to 2.15 million bopd this year.

The decision comes during the continued fall-out of Petrobras’ bribery scandal in 2014, in which at least USD 3 billion was stolen from the firm and key members of government, including the president, were implicated. The development contributed to the company’s USD 104 billion of debt, forcing it to put assets on sale.

“Petrobras has been working continuously to fine-tune its business plan and adapt it rapidly to the changes in the business environment,” the company said in a statement.

China planning to build floating nuclear power plant Beijing aims to increase its installed atomic power capacity to 58 gigawatts by 2020, when another 30 gigawatts are scheduled to be under construction AFP

The use of nuclear power at sea for civilian purposes appears to be unprecedented, although a Russian project is reportedly already under construction.

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Beijing: China is planning to build a floating nuclear power station as it seeks to double its atomic capacity by 2020, a senior official said on Wednesday.

Authorities are making plans for a “marine floating power station”, which will go through “strict and scientific demonstration”, said XuDazhe, chairman of China Atomic Energy Authority.

“China is devoted to building itself into a maritime power and so we will definitely make full use of ocean resources,” he told a press conference.

The use of nuclear power at sea is not unknown — aircraft carriers and missile submarines are often nuclear-powered — but doing so for civilian purposes appears to be unprecedented, although a Russian project is reportedly already under construction.

Beijing included the development of two marine nuclear power plants, to be built by China General Nuclear Power Corporation (CGN) and China National Nuclear Corporation (CNNC) respectively, in its 13th five-year plan for 2016-2020, the two companies announced earlier this month.

The CNNC plant is expected to start operation in 2019 and CGN’s the following year, according to their statements.

They could provide power for offshore oil and gas drilling platforms, island development and remote areas, both firms said.

Beijing is at loggerheads with neighbours including Japan and the Philippines over territorial rows in the East and South China Seas, and has alarmed rivals with its massive reclamation and construction of facilities on disputed reefs.

China currently has 30 nuclear reactors in operation, with a capacity of 28.3 gigawatts, Xu said. Another 24 reactors capable of generating 26.7 gigawatts are under construction, Xu added.

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Beijing has said it aims to increase its installed atomic power capacity to 58 gigawatts by 2020, when another 30 gigawatts are scheduled to be under construction.

China suspended approvals of new plants following the disaster at Japan’s Fukushima nuclear power plant after a tsunami struck in March 2011.

But it resumed approvals in 2012, despite a warning the same year from the environmental ministry that the country’s nuclear safety situation was “not optimistic”.

Siemens to buy engineering simulation software supplier CDadapco 01.25.2016 | CD-adapco is a global engineering simulation company with software solutions covering a wide range of engineering disciplines including fluid dynamics (CFD), solid mechanics (CSM), heat transfer, particle dynamics, reactant flow, electrochemistry, acoustics and rheology.

Siemens and CD-adapco have entered into a stock purchase agreement for the acquisition of CD-adapco by Siemens, the companies announced on Monday.

The purchase price is $970 million.

CD-adapco is a global engineering simulation company with software solutions covering a wide range of engineering disciplines including fluid dynamics (CFD), solid mechanics (CSM), heat transfer, particle dynamics, reactant flow, electrochemistry, acoustics and rheology.

Last fiscal year, CD-adapco had over 900 employees and revenue of close to $200 million with software-typical double-digit margins.

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On average, CD-adapco increased its revenue at constant currencies by more than 12% annually over the past three fiscal years, officials said. Siemens expects this business to continue to experience strong growth in the future.

“As part of its Vision 2020, Siemens is acquiring CD-adapco and sharpening its focus on growth in digital business and expanding its portfolio in the area of industry software," said Klaus Helmrich, a managing board member at Siemens. "Simulation software is key to enabling customers to bring better products to the market faster and at less cost.

"With CD-adapco, we’re acquiring an established technology leader that will allow us to supplement our world-class industry software portfolio and deliver on our strategy to further expand our digital enterprise portfolio," he added.

CD-adapco is a global engineering simulation company with a unique vision for multidisciplinary design eXploration (MDX).

Engineering simulation provides the most reliable flow of information into the design process, which drives innovation and lowers product development costs, the company says.

CD-adapco simulation tools, led by the flagship product STARCCM+, allow engineers to discover better designs, faster. CDadapco now has over 3,200 customers worldwide, and its software is currently used by 14 of the 15 largest carmakers, by all of the top 10 suppliers to the aerospace industry and by nine of the 10 largest manufacturers in the energy and marine sectors.

“I am pleased for both the employees and the customers of CDadapco," said CD-adapco CEO Sharron MacDonald. "The opportunities that come with the acquisition by Siemens are endless. The vision of our founders will be realized in the integration of these world-class engineering and manufacturing technologies and a business strategy that will 67

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allow engineering simulation to impact more products and companies than ever before.”

CD-adapco is headquartered in Melville, New York, and has 40 locations worldwide. Siemens expects synergy impact on EBIT to be in the mid-double-digit million range within five years of closing, mainly from revenue. Closing of the transaction is subject to customary conditions and is expected in the second half of fiscal year 2016.

CD-adapco will be integrated into the PLM software business of Siemens’ digital factory (DF) Division. DF is the industry leader in automation technology and a leading provider of Product Lifecycle Management (PLM) software.

“By adding advanced engineering simulation tools such as CFD to our portfolio and experienced experts in the field to our organization, we’re greatly enhancing our core competencies for model-based simulation that creates a very precise digital twin of the product,” said Anton Huber, CEO of the digital factory division at Siemens.

Iran Kicks Off Plan to Boost Oil Exports as Sanctions Lifted Iran is beginning efforts to boost oil production and exports amid a global supply glut after the removal of sanctions that shackled its economy and capped crude sales.

The Persian Gulf country is targeting an immediate increase in shipments of 500,000 barrels a day, Amir HosseinZamaninia, deputy oil minister for commerce and international affairs, said Sunday in an interview in Tehran. Iran plans to add another half million barrels within months. The additional crude will push prices lower when it enters markets that are already oversupplied, said Robin Millsof Dubai-based oil consultant Qamar Energy.

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“The oil ministry, by ordering companies to boost production and oil terminals to be ready, kicked off today the plan to increase Iran’s crude exports by 500,000 barrels,” the official Islamic Republic News Agency reported. Zamaninia said the plan is “still valid” and will be done in a “managed way to minimize the negative impact” on prices.

Buyers of Iranian crude are free to import as much of its oil as they want after the International Atomic Energy Agency determined that the country had curbed its ability to develop a nuclear weapon. As holder of the world’s fourth-largest reserves of crude and biggest deposits of natural gas, Iran gains immediate access to about $50 billion in frozen accounts overseas, funds the government says it will use to rebuild industries. The end of sanctions also opens the door to foreign investors such as Total SA and EniSpA. Benchmark Brent crude has dropped 23 percent this year and lost as much as $1.27 on Monday to trade at $28.53 a barrel at 9:34 a.m. in London, amid oversupply and the looming surge in Iranian output. Gordon Kwan, a Hong Kong-based analyst at Nomura Holdings Inc., said by e-mail that prices may drop as low as $25 a barrel on the same day. ’Knee-Jerk’ Reaction Prices will probably show a “knee-jerk” reaction, falling on Monday before recovering to more than $30 a barrel later in the week, Eugen Weinberg, Commerzbank AG’s head of commodities research in Frankfurt, said by telephone. “There is a real oversupply in the market, but I think that’s already reflected correctly in the price.”

Once the second-biggest producer in the Organization of Petroleum Exporting Countries, Iran is now fifth-biggest in the 13member group. It produced 2.7 million barrels a day in December, data compiled by Bloomberg show. Oil exports fell to an average of 1.4 million barrels a day in 2014 from 2.6 million barrels daily in 2011, the year before the U.S. and European Union intensified 69

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sanctions, the U.S. Energy Information Administration said in June.

Volumes Uncertain “There’s still the cloud of uncertainty around how much Iranian crude will come to market and when,” said Mills, Qamar Energy’s chief executive officer. The impact more Iranian barrels will have on prices will depend on how aggressive the country is in offering discounts and how quickly it ramps up sales, he said. Mills expects Iran can raise output by 600,000 a barrels a day over the next six months and add as much as 800,000 barrels of daily output this year.

Morgan Stanley too sees production increasing by 600,000 barrels a day in the first half of the year, though the longer-term outlook is less clear due to Iran’s uncertain investment environment, the bank said in an e-mailed report. JBC Energy GmbH expects Iran to boost output more slowly, by 255,000 barrels a day in 2016, it said in an e-mailed note.

Iran will probably start increasing exports by selling barrels it stockpiled on tankers in the Persian Gulf in anticipation of the deal. About 18 Iranian tankers are holding 12 million barrels of crude and 24 million barrels of condensates, according to the International Energy Agency.

Not ‘Sustainable’ “We do expect to see a substantial increase in exports over the coming weeks as Iran ships out the crude it had held in floating storage,” JBC Energy said. “However, this quick boom is not expected to be sustainable, and we see exports increasing by an average of 450,000 barrels a day over the year.”

Iran’s longer-term challenge will be to restore oil production, and it hopes to attract more than $100 billion of investment to revitalize ageing fields. The country plans to raise output capacity to 5.7 million barrels a day by the end of 2020, helped by new production contributed by potential foreign partners, 70

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RoknoddinJavadi, managing director of state-run National Iranian Oil Co., said in an interview in Tehran in November.

Exclusive: China buys first U.S. crude cargo since end of export ban – source Thu Jan 14, 2016 | 10:57 PM EST

A customer gets the tank of her car filled at a Sinopec gas station in Qingdao, Shandong province September 11, 2014.

REUTERS/STRINGER

By Jonathan Leff (Reuters) - China’s state-run oil refiner Sinopec Corp has purchased its first ever batch of U.S. crude oil for export, a source told Reuters on Thursday, a landmark transaction after the ending of a four-decade ban on domestic exports.

The cargo, due to be loaded from a Gulf Coast port in March, may mark the start of a sustained flow of U.S. oil to China, the world’s second-largest buyer, which is eager to diversify its energy sources. Unipec, its trading arm, also has the advantage of leased oil storage tanks in the Caribbean, which could allow it to blend U.S. shale with cheap, heavy Latin American crudes for a bespoke mix ideally suited to its plants back home.

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While the first unfettered exports of domestic crude have already set sail to Europe, those cargoes are generally seen as one-off shipments by companies eager to make a point after fighting for two years to end the ban. Based on current U.S. and world prices, the cargoes do not appear profitable, traders said.

With China, the calculations are less straightforward. As the world's second-biggest oil refiner, Sinopec buys more crude oil than almost any other company, and has worked to improve its supply security by seeking out diverse sources. “U.S. crude oil exports are positive news for the global market, and make it possible for Asia-Pacific refiners to diversify their supply if the crude is economically competitive," a company source said. "Our upcoming storage capacity in the Caribbean is well-suited to this development.�

The source declined to comment on any further details of the transaction, including the variety of crude, price or supplier.

A Sinopec Corp representative said the company does not comment on specific deals.

Due to shipping limitations along the Gulf Coast, it is likely to be around 600,000 barrels, a relatively tiny sum equivalent to about two hours' worth of China's overall imports. That would make it worth about $20 million, too small to put a serious dent in a $30 billion a month trade deficit with China.

Marathon Petroleum to combine 2 Texas refineries Two Texas refineries will be combined by Marathon Petroleum next year to become the second-largest refinery in North America, according to the company. The company's Galveston Bay and Texas City refineries will be integrated, resulting in a combined facility with a capacity of 585,000 barrels per day. Argus Media New York, 3 December (Argus) — Marathon Petroleum will begin shutting underperforming units next year as it integrates two 72

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Texas City, Texas, refineries into the second-largest refinery in North America.

A five-year, $2bn series of projects will combine the 475,000 b/d Galveston Bay and 80,000 b/d Texas City refineries to a single 585,000 b/d facility, the company said today.

The company plans to next year begin shutting catalytic cracking unit 1, one of three gasoline blendstock-producing units of its kind at Galveston Bay. Marathon will later shut heaters at its older Texas City refinery as it integrates steam production, and then shut down reformer and aromatics units at the same refinery in 2019.

Marathon will revamp a heavy crude unit, adding 40,000 b/d of capacity and improving gas oil and distillates yields. It will upgrade a resid hydrotreater, adding 20,000 b/d of capacity to bring it to 90,000 b/d. It will also add a new ultra-low sulfur diesel (ULSD) hydrotreater to shift the facility to 100pc ULSD production and increase finished distillates output to 65,000 b/d.

Marathon purchased the refinery and other Gulf coast assets from BP in 2012 for $598mn. BP at the time said it would cost too much to add light, sweet domestic crude processing to the facility.

The refinery also struggled to keep all of its gasoline-producing fluid catalytic cracking (FCC) units operating consistently.

Marathon sees the refinery as half of its two-pronged waterborne gasoline strategy in the US Gulf coast. The US independent refiner uses its Texas City assets in conjunction with its 562,000 b/d refinery in Garyville, Louisiana, to supply Gulf coast markets including Florida and growing export demand. Marathon plans to through logistics projects reach 395,000 b/d of gasoline export capacity by the end of 2017 and to push to 500,000 b/d of capacity by the end of 2018.

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Oil producers struggle to plug budget holes torn by price collapse 03/02/2016 Š AFP/File / by Antonio Rodriguez | Austerity measures, loan negotiations and state asset sales are all on the menu of moves deployed to counter the brutal nosedive in the oil price PARIS (AFP) Oil producing countries are scrambling to fill gaping holes in their budgets torn by crashing petroleum prices, with some turning to international lenders for help and others slashing spending.

Austerity measures, loan negotiations and state asset sales are all on the menu of moves deployed to counter the brutal nosedive in the oil price, with West Texas Intermediate currently below $30 a barrel and Brent just above -- a drop of about 70 percent since June 2014.

"These are bad times for oil producers and their creditors," Gabriel Sterne, head of global macro research at Oxford Economics, said in a note.

National budgets need to adjust further, financial buffers are inadequate and proper adjustment to the new situation may be delayed by weak governance, he warned, calling the assessment "bleak".

In Russia, which depends on oil and gas sales for half of government revenues, Economy Minister Alexei Ulyukayev on Tuesday warned that his country's budgetary situation was "critical" and that it was now urgent to implement a privatisation programme that is expected to feature sales of stakes in stateowned companies such as oil giant Rosneft.

"It is no longer possible to wait," he said, just as Russia -- a top global producer -- was pumping oil at record levels to offset falling prices with increased volumes.

The government in Moscow has already admitted that tumbling oil prices will push it to slash spending as it struggles to keep the deficit to under three percent of gross domestic product.

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- 'A source of risk' "Government deficits are growing strongly. And to maintain social peace and military spending, producer countries are in no position to cut public spending," said Olivier Garnier, chief economist at Societe Generale.

Trying to reduce spending regardless would be "a source of risk", he told AFP. Last month, the International Monetary Fund warned that the sharp collapse in the price of oil is proving more of a drag on the global economy than a stimulus, pointing to the dire budgetary situation that oil exporting countries now find themselves in.

There are big differences between the various oil-exporting countries, many of whom had accumulated vast dollar reserves while the going was good in the commodities markets.

But even the world's biggest exporter, Saudi Arabia, is feeling the pain.

The kingdom reported this week that its fiscal reserves dropped to a four-year low of $611.9 billion last year, from $732 billion in 2014, as the government sought to finance a budget deficit caused by plunging oil revenues.

In December, Saudi Arabia had reported a record deficit and announced austerity measures, including cuts to fuel subsidies.

African producer Nigeria, meanwhile, boasting no such reserves, is seeking loans from the World Bank, the African Development Bank and other lenders to help cover this year's massive budget deficit, the government and bank officials said on Tuesday.

The budget plan, which includes sharply increased spending to stimulate the economy, calls for 1.8 trillion naira ($9 billion) to be covered by borrowing from multilateral organisations -- which the government believes is the cheapest funding option.

The possibility for cash-strapped nations like Nigeria to get a friendly hearing from global lenders means that situation is 75

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perhaps not yet dramatic, according to Ludovic Subran, chief economist at Euler Hermes.

"Today, exporters in Africa have enough foreign reserves for at least another year. The others are being helped by international institutions," he told AFP. - Limited room for manoeuvre Maybe so. But while some countries may obtain "soft loans" to tide them over, other credit lines come with strings attached, notably austerity measures or forced asset sales -- and therefore the danger of social trouble from already impoverished populations.

"The room for manoeuvre is very limited. Growth is slowing and adjustment is very costly because of austerity and the recession," Christine Rifflart, an economist with French think tank OFCE said in a recent report.

Venezuela, which is sitting on the biggest known oil reserves from which it derives 96 percent of its foreign revenues, has been devastated by the drop in prices.

"The economic crisis in Venezuela will deepen," analysts from research group Capital Economics wrote in a recent note. "In the absence of a renewed rebound in oil prices a government debt default looks increasingly likely."

Increasingly desperate, the South American country's oil minister, Eulogio del Pino, last week started a whistle stop tour of Russia, Qatar, Iran and Saudi Arabia to lobby in favour of measures to stop the price decline.

But several OPEC countries, lead by Saudi Arabia, have resisted calls to cut production, preferring to defend their market share rather than prices.

by Antonio Rodriguez Š 2016 AFP 76

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CNOOC flows first oil from 2 Beibu Gulf Basin projects in South China Sea February 2, 2016.

China's CNOOC Ltd commenced production from the Weizhou 12-2 oilfield joint development project and the Weizhou 11-4 North oilfield Phase II project, both located in the Beibu Gulf Basin of the South China Sea. The Weizhou 12-2 project, which lies in an average water depth of approximately 118 feet (36 meters), has three oilfields, comprising the Weizhou 12-2 oilfield, the Weizhou 12-1 West oilfield and the north part of Weizhou 112 oilfield. CNOOC indicated that the main production facilities include three wellhead platforms and 18 production wells, currently producing a total of 16,000 barrels of crude oil per day and reaching its designed peak production. Meanwhile, the Weizhou 11-4 North project -- situated in average water depths of around 131 feet (40 meters) -- shares the existing adjacent facilities for the development. Facilities for the project consisted of two wellhead platforms and 15 producing wells. The Chinese state-owned firm revealed that only one well is currently in operations, producing around 500 barrels of crude oil per day and peak production of approximately 8,000 barrels per day is expected from the project within the year. The company announced the commencement of first oil from the Kenli 10-4 field in the South of Bohai. (www.rigzone.com) Kuwait to set up company to run refinery complex January 31, 2016.

Kuwait's National Petroleum Company (KNPC) said it will set up a new company to run its planned alZour refinery and petrochemical complex which, when built, will be the biggest in the Middle East. The new company, KBRC, will also manage a planned permanent liquefied natural gas (LNG) import terminal, KNPC Chief Executive Mohammed al-Mutairi said. He said that setting up KBRC would allow the independent management of the projects under one structure. Mutairi said that commissioning of the 615,000 barrel per day refinery was expected to start in 77

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November 2019. Contracts to build the 3 billion cubic feet per day LNG import terminal were expected to be awarded early this year. (www.reuters.com) Canada imposes further delays on two major pipeline projects January 27, 2016.

Canada announced new interim rules for environmental reviews that will impose delays on two projects - TransCanada Corp's Energy East pipeline and Kinder Morgan Inc's expansion of its Trans Mountain Pipeline. The Liberal government issued the rules on the grounds that public trust needed to be restored in the process for assessing big energy projects. Proponents say that after U.S. President Barack Obama's denial of the Keystone XL pipeline, all-Canadian projects are needed so the country's oil can reach its east and west coasts and fetch higher prices abroad.

The rules are designed to take greater account of environmental impacts and indigenous groups' view for the two pipelines, which are opposed by environmentalists and some communities but backed by industry. Environment Minister Catherine McKenna said the government would separately calculate direct and upstream greenhouse gas emissions linked to the projects. (www.reuters.com) Enbridge to buy some Murphy Oil gas plants in British Columbia January 27, 2016.

Enbridge Inc, Canada's largest pipeline company, said it would buy Murphy Oil Corp's Tupper Main and Tupper West gas plants in northeastern British Columbia for C$538 mn ($382 mn). The deal includes the sale of plants capable of processing up to 320 million cubic feet per day, Enbridge said. The assets would boost its natural gas footprint in Montney, one of the most attractive gas plays in North America, the company said. The transaction, which is between Murphy Oil's Canadian unit Murphy Oil Co Ltd and 78

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Enbridge unit Enbridge G&P Ltd Partnership, is expected to close in the second quarter. Murphy Oil said that it would buy working interests in some of Athabasca Oil Corp's assets in Alberta for C$475 million. (www.reuters.com) Suncor takes $2-billion loss for 2015, sheds more 2016 budget HOUSTON, 02/04/2016, By OGJ editors Suncor Energy Inc., Calgary, has cut its capital guidance for 2016 to $6-6.5 billion from $6.7-7.3 billion reported in November (OGJ Online, Nov. 18, 2015).

The additional reduction follows a net loss in 2015 of $1.995 billion, compared with earnings in 2014 of $2.699 billion.

During the fourth quarter, the company took a net loss of $2.007 billion, compared with earnings of $84 million in fourth-quarter 2014.

Suncor attributes the fourth-quarter loss to noncash asset writedowns, a result of the depressed commodity cycle and a foreign exchange loss on US dollar denominated debt.

In January, Suncor and Canadian Oil Sands Ltd. (COS) reached an agreement in which COS and its board support Suncor’s offer to purchase all of the shares of COS for 0.28 of a share of Suncor stock for each COS share (OGJ Online, Jan. 28, 2016). The deal was valued at $6.6 billion at the time of the agreement.

“We are pleased that the board of COS is supporting our offer,” said Steve Williams, Suncor president and chief executive officer.

Operations update Companywide upstream production during the quarter was 582,000 boe/d, compared with 557,600 boe/d in the prior year quarter. Oil sands production in the quarter increased to 439,700 b/d, compared with 384,200 b/d in the prior year quarter.

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In its previously announced guidance, Suncor said it expected a slight decline in oil sands output in 2016 due to “significant planned maintenance activities scheduled at various facilities,” including its first 5-year full turnaround at the U2 upgrader near Fort McMurray, Alta. and “major maintenance” at the Firebag in situ project (OGJ Online, Oct. 23, 2012).

The company during 2015 continued to focus on well pad construction to sustain existing production at Firebag and the MacKay River oil sands project, and completed debottlenecking activities at Firebag, increasing nameplate capacity to 203,000 b/d from 180,000 b/d.

The Fort Hills oil sands project, where Suncor boosted its stake by 10% in 2015 (OGJ Online, Sept. 21, 2015), remains on schedule with construction more than 50% complete at the end of the fourth quarter. Startup is expected in fourth-quarter 2017.

Construction of the Hebron heavy-oil project continued in the quarter, with production startup expected in late 2017. Effective Jan. 1, working interests in Hebron have been reset. As a result, Suncor’s working interest in the project decreased to 21% from 22.7%, with the company to be reimbursed for costs incurred to Dec. 31, 2015.

Development drilling at the Golden Eagle Area Development in the central North Sea continued through the quarter (OGJ Online, Nov. 3, 2014). Exploration drilling at the deepwater Shelburne basin offshore Nova Scotia commenced in the quarter and will continue during 2016 (OGJ Online, June 11, 2014).

IEA See Global Oil Glut Worsening. OPEC Deal Unlikely Reuter, Feb 9, 2016 The world will store unwanted oil for most of 2016 as declines in U.S. output take time and OPEC is unlikely to cut a deal with 80

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other producers to reduce ballooning output, the International Energy Agency said.

The agency, which coordinates energy policies of industrialised countries, said that while it did not believe oil prices could follow some of the most extreme forecasts and fall to as low as $10 per barrel, it was equally hard to see how they could rise significantly from current levels.

The Paris-based IEA trimmed its forecast for 2016 oil demand growth, which now stands at 1.17 million barrels per day (bpd) following a five-year high of 1.6 million in 2015.

It cut its call on OPEC crude for 2016 by 100,000 bpd to 31.7 million bpd. That figure is much lower than OPEC's January output of 32.63 million bpd.

"Persistent speculation about a deal between OPEC and leading non-OPEC producers to cut output appears to be just that: speculation. It is OPEC's business whether or not it makes output cuts either alone or in concert with other producers but the likelihood of coordinated cuts is very low," the IEA said.

Oil prices collapsed over the past 18 months to below $30 a barrel from as high as $115 as OPEC opened its taps to drive higher-cost producers such as U.S. shale companies out of the market.

Low oil prices have spurred global demand but it was not enough to absorb all crude produced. As a result, unwanted oil went into storage, leading to record global stockpiles of over 3 billion barrels.

U.S. shale oil output has started to decline because of low prices and OPEC has said it sees the market rebalancing sometime later in 2016 when demand finally meets supply.

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But the IEA said supply may still exceed demand throughout the whole of 2016 and added it saw non-OPEC output falling by just 0.6 million bpd in 2016.

"The number could be higher of course and many senior international oil company figures have said so but there is a lingering feeling that the big fall-off in production from U.S. shale producers is taking an awful long time to happen. Perhaps resilience still has some way to go," the IEA said.

The agency also said it saw the dollar remaining strong as it benefits from its safe-haven status, meaning more downward pressure on oil prices.

With weaker global oil demand, likely new gains in Iraqi, Iranian and Saudi output, low chances of an OPEC deal, resilient U.S. production and a strong dollar - the IEA said the global oil glut was only poised to worsen.

It said that even if OPEC production remained flat, global stocks would build by 2 million bpd in the first quarter, followed by a 1.5million-bpd build in the second quarter.

"Supply and demand data for the second half of the year suggests more stock building, this time by 0.3 million bpd. If these numbers prove to be accurate, and with the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term. In these conditions the short-term risk to the downside has increased.�

(Reporting by Dmitry Zhdannikov; Editing by Dale Hudson and Jason Neely)

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TrendScan Raymond James: For oil field services companies, 2016 will be a “roller coaster ride�

Posted on January 4, 2016 | By Rhiannon Meyers New energy CEOs in 2015

Aaron M. Sprecher / Bloomberg Cheniere CEO CharifSouki was ousted in December 2014. The company is searching for his replacement.

The new year will usher in more tough times for oil field services companies, as penny-pinching exploration and production firms curtail their spending in the oil patch deeper than once expected, according to a new analysis.

Although oil markets are expected to mount a recovery in the second half of 2016, the first part of the year will prove to be difficult for oil field services providers that have already been struggling with a dramatic collapse in oil patch activity.

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“Look for a roller coaster ride in early 2016 for oil field services, followed by outsize gains in the second half,” Raymond James analysts wrote.

That retreat from U.S. oil fields will continue for the next few months, as cash-strapped companies, with dwindling options for obtaining financing, ratchet back their spending plans through at least the second quarter of 2016 as they wait for a significant rebound in crude prices. Raymond James said it now expects annual oil field spending to fall 42 percent amid “skinny E&P cash flows and a non-existent debt market,” analysts wrote in a morning note to investors. (Although, the analysts noted, a surprise uptick in oil prices could dramatically change spending habits, with a small $5-a-barrel swing in crude translating into a 20 percent shift in cash flows).

They predict the U.S. rig count will continue falling over the next six months, with drillers expected to sideline another 150 rigs by mid-year. That pullback could cause the rig count to fall to 550 before shale plays begin to see an uptick in activity again, a dramatic decline that implies “a much uglier fundamental year than current consensus estimates,” Raymond James analysts wrote. The rig count should pick up again in the second half of the year as production declines draw down the global glut of crude, and help support higher oil prices.

Raymond James says drillers will add 200 rigs between June and December, with the recovery accelerating in 2017, when Raymond James expects 463 more rigs to head back to work.

Still, the analysts warned that the rebound in oil field activity will trail an uptick in spending.

“Labor and service availability likely becomes a major constraint on the ability to meet activity demand,” the analysts wrote. “This should be compounded by oil field service pricing increases as the market for services gets tighter.”

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Any additional declines in activity and rig count, even if shortlived, spells more trouble for services companies, which have seen their earnings pummeled in the past year. Companies best positioned to ride out the prolonged slump are the bigger, more well-known names with “dominant market share and clean balance sheets,” the analysts said.

Categories: featured, Oil field services Tags: crude oil | oil field services | oil prices | Raymond James Finally Flexing Energy Muscle on Global Stage Fuelflix, January 12, 2016 | By Brigham McCown Two weeks ago, an oil tanker carrying a shipment of crude oil from the Eagle Ford Shale left the Port of Corpus Christi for Italy.

Not long after, the first crude movement from the Houston Ship Channel departed for Switzerland late last week. These moves are historic for the U.S., as it comes less than a month after the federal government authorized the reversal of a 40-year ban on crude oil exports.

America’s inability to export its crude oil since the 1970s has sidelined its potential on the global energy stage. In the last five years, we’ve surpassed both Saudi Arabia and Russia as the world’s largest producer of oil and natural gas, and it’s only appropriate that we now take full advantage of this impressive feat. The benefits are too significant to ignore.

Trading energy resources in the global marketplace can help strengthen diplomatic alliances. Until recently, the U.S. was forced to sit idly by while Allies in Europe and East Asia grew increasingly dependent on energy resources from parts of the globe seeded with political turmoil. From the European Union’s (EU) reliance on Russian oil and gas reserves, to South Korea and Japan’s near 90 percent dependence on imports originating in the Middle East, it has long been clear: U.S. crude oil and gas 85

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exports will bolster security and allow for stronger relationships with our allies moving forward.

The potential for advancements abroad as a result of stable energy supply to our allies is undoubtedly impressive. But it is the economic growth here at home that will be felt the most by consumers.

As a result of the newfound abundance in oil supplies and diminished storage capacity, our nation’s oil and gas industry— responsible for 9.8 million jobs—has had no choice but to slow production in recent months. While lower energy prices are proof that the basic economic tenant of supply and demand still works, the country finds itself locked in a price war with other nations who would like to see the American energy renaissance falter.

But according to analysis conducted last year by Columbia University, U.S. crude exports could increase domestic production of crude oil by as much as 1.2 million barrels daily through 2025.

Such would help cement the rejuvenation of an industry that will ensure the economic success of the country.

Several other studies conducted over the last year concur with this same equation. Most notably, last year the Aspen Institute projected that domestic crude oil exports will lead to as many as 1.3 million direct and indirect supply chain jobs by 2020. An estimated 400,000 of these opportunities are expected to pop up specifically in our nation’s minority communities, resulting in desperately needed economic development for struggling Americans.

The forecast for the overall economy is just as bright. According to research conducted by ICF International and EnSys Energy, the impact could be much as $20 billion generated by 2020. And separate analysis by the non-partisan Congressional Budget Office late last year suggested crude exports would create $1.4 billion in economic revenue between 2016 and 2025.

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Study after study confirms that ending this outdated policy makes sense for the economy. Now that the first tankers carrying American crude oil have set sail for foreign coastlines, the country is finally poised to effectively compete with countries such as Saudi Arabia and Russia. By realizing the country’s full energy potential in the global marketplace, the U.S. is poised to be an energy force to be reckoned with for decades to come.

Analysts: Global oil, gas M&A to rise in 2016 as companies shed assets

By JAMES PATON Bloomberg, Oil and gas producers should see an increase in deals this year as cheap crude prices and limited funding options force debtsaddled energy companies to sell assets, according to consultant IHS. An uncertain oil price outlook discouraged M&A last year, with the value of transactions falling 22% to $143 billion, despite the boost from Royal Dutch Shell’s agreement to take over BG Group, IHS said in a report on Wednesday. The deal pace will probably pick up as energy companies face further financial pain after a 35% drop in Brent prices last year.

“Oil and gas producers with heavy debt burdens and hedges rolling off in 2016 will become increasingly vulnerable,” Christopher Sheehan, director of energy M&A research at IHS, said in the report. “They will either have to dispose of prized assets, face serious restructuring -- including the potential for bankruptcy -- or become takeover targets in 2016.”

The number of deals almost halved in 2015 to the lowest level since 2001 while big, unsolicited takeover bids were rejected, the report showed. Other than the Shell purchase, there were no corporate takeovers exceeding $5 billion, it said.

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Scaled Back Chinese oil companies spent less than $5 billion on acquisitions for the second straight year, while Asian national oil companies scaled back overseas acquisition spending for the second straight year, according to IHS. Excluding the Shell-BG deal, North America accounted for about 60% of global upstream value for the second year. “The likelihood for wider consolidation in the oil and gas industry will increase in 2016 as producers face further financial pain and will have more constrained financing options due to persistently weak oil prices,� Sheehan said.

National oil companies in Asia will probably resume purchases with PetroChina Co. and Oil & Natural Gas Corp. of India among potential buyers, Sanford C. Bernstein & Co. said in November.

Weak oil markets prompt Saudi leaders to make quicker decisions 01.08.2016 | By BEN HOLLAND, Bloomberg

Saudi Arabia, one of the most tradition-bound societies on the planet, where family structure and tribal patriarchy differ little from a century ago, is suddenly in a hurry. It has done more in the past week than in most years.

Over eight days, it has executed dozens of militants, severed ties with Iran and announced numerous steps for a radical rollback of 88

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the state that may include privatizing oil giant Saudi Aramco, among the world’s largest companies.

The flurry of action, a result of tumbling oil prices, shifting US interests and regional turmoil threatening rulers across the Middle East, appears to be the largely the work of Prince Mohammed bin Salman, the 30-something son of King Salman, in office less than a year. And while his ambition to modernize has drawn praise, some fear he is in over his head.

“The Saudis had a reputation of being kind of cautious, secretive,” said EckartWoertz, a senior researcher at Barcelona Centre for International Affairs. “Right now there are some concerns about rash decisions.”

Thatcherite Revolution The biggest bombshell this week: Prince Mohammed’s announcement, in an interview with The Economist, that an initial public offering in Saudi Aramco may form part of the kingdom’s privatization plans. A decision will be taken in the coming months, he said.

He called his plans a Thatcherite revolution, like the overhaul of the UK economy in the 1980s, saying private investors will be invited to play a bigger role in health care, education and some defense industries; state land will be sold off; and sales taxes introduced on consumer goods.

The new government is rapidly abandoning its old slow style, said Saud Al Tamamy, a political theorist at King Saud University in Riyadh.

In a single day last week, the government announced and implemented a cut in fuel subsidies, sending drivers speeding to gas stations and spurring a spate of company statements on how the change would affect them. In November, an annual fee on 89

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undeveloped urban land intended to transform the kingdom’s property market was approved by the cabinet after years of talks.

Some of the reforms “bode well for the long-term health of Saudi Arabia, in the sense that they have shown a willingness to cut subsidies, to implement taxes, to cut spending,” said Allison Wood, Middle East and North Africa analyst at Control Risks in Dubai. “But on the other hand, these do increase risks for investors in the sense that they’re often unpredictable and implemented, as we saw, overnight.”

State-run Saudi Aramco confirmed on Friday that it was considering an initial public offering, which could see the producer leapfrog Apple as the world’s biggest listed company.

Embassy Burned Among the Sunni-ruled kingdom’s 47 executions, many of which included convicted terrorists and which were strongly supported at home, was Nimr al-Nimr, a Shiite cleric and activist on behalf of the Shiite minority.

Protests erupted throughout the Shiite world, especially in Iran, where a mob set the Saudi embassy on fire. The Saudi foreign ministry sent a text message to reporters in Riyadh on Sunday calling a press conference 30 minutes later to announce it was cutting ties with Iran. It thus escalated years of verbal sparring between regional powers on opposing sides of wars in Yemen and Syria.

Alarms went off in the US and Europe, concerned that efforts to end those conflicts were set back. Some analysts noted, however, that the move was aimed partly at the US, that the new muscular Saudi style results from its feeling abandoned.

“The US is and remains their primary security patron,” said RevaBhalla, a geopolitical analyst at the strategic advisory firm Stratfor in Austin, Texas. But the Iran nuclear deal “meant Saudi 90

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Arabia would have to take more matters into its own hands, knowing they couldn’t rely on the US exclusively to back up their interests.”

Plunging Reserves Pressure for change is coming from a budget deficit that reached 15% of economic output last year, as oil fell by about two-thirds from mid-2014 levels. Saudi Arabia has dipped into its savings to cover the shortfall -- reserves declined for 10 straight months through November, sometimes at an unprecedented pace.

Investors began to question whether the Saudis would be forced to devalue their currency, or make an about-turn at OPEC and sanction production cuts that would push oil prices back up. Saudi credit-default swaps spiked this week to the highest since the global slump of 2009, and riyal futures have weakened on speculation about the dollar peg.

Some wonder whether the economic changes will occur. A few weeks ago, Prince Mohammed made an unexpected announcement, telling a hastily assembled press conference that Saudi Arabia would head an Islamic military coalition of 34 nations to combat terrorism. Several of the countries knew nothing about it.

Meanwhile, war in Yemen -- still largely under the control of the Shiite rebels the Saudis are fighting -- is set to drain the same budget that the kingdom is seeking to shore up. And tensions over Yemen and Syria, now heightened by al-Nimr’s execution and the severance of ties, won’t help efforts to attract the cash that Prince Mohammed’s ambitious plans will require.

Unprecedented Powers Prince Mohammed came to power with little experience, yet has titles that put him in control of the army, the oil industry and most other areas of the economy.

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“We’ve seen fairly unprecedented consolidation of power in the hands of a fairly young prince,” according to Wood at Control Risks.

Prince Mohammed is “seen as the driving force behind many recent decisions,” said Mohammed al-Sabban, a Saudi economist and former oil ministry adviser. Saudi Arabia’s new stripped down decision-making process, with power taken away from a finance ministry that had previously delayed or blocked reforms, is more attuned to the nation’s needs, he said.

“The Ministry of Finance is now basically a treasury ministry. It used to be the ministry of ministries,” al-Sabban said.

The other leading figure among the younger generation of Saudi royals is Prince Mohammad bin Nayef, who as heir to the throne outranks the other. Prince Mohammed Nayef is a longtime pointman for the US on counter-terror issues and is in charge of internal security. Primarily, that means the fight against al-Qaeda and Islamic State, which have sought recruits in the kingdom and carried out attacks there.

So far there’s been no public indication of disagreement between the kingdom’s two rising stars, though there have been mutterings of unrest among some more junior royals at the changes since King Abdullah’s death a year ago.

‘Disconcert People’ But opening up the economy in the ways proposed by the young prince may be anathema to Saudi conservatives. The kingdom’s clerics enjoy an exalted status in return for their backing against radical Islamists such as al-Qaeda who have challenged the Al Saud family’s legitimacy.

“People used to express frustration about how things weren’t happening fast enough but at the same time these radical changes disconcert people,” said Crispin Hawes, managing 92

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director of Teneo Intelligence. “There is a more aggressive attitude about this government on certain issues, which has created a lot of unease among people used to a certain ways of doing things.�

Former US energy secretary: OPEC grip, surging gas to shape markets in 2016 12.09.2015 | Adrienne Blume, Hydrocarbon Processing, Keywords:

By Adrienne Blume Executive Editor HOUSTON -- During a breakfast presentation of The Economist's 30th global forecast issue on December 9, Executive Editor of The Economist, Daniel Franklin, invited Spencer Abraham, Chairman and CEO of The Abraham Group LLC and former US energy secretary under George Bush, to discuss the energy markets in 2016.

With the recent OPEC decision to leave oil production levels unchanged and crude oil prices hovering below $40/bbl, Franklin posed the question: "What can we expect for the year ahead in energy?"

Abraham (pictured right) noted that, with regard to the cyclical nature of energy markets and oil prices, it is interesting how the US perception of commodity markets has changed over the past year. The consensus used to be that low commodity prices were a good thing for the economy, but perception has shifted in the opposite direction since oil prices began falling in 2014.

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OPEC retains heavy influence on oil market.

Over a year ago, OPEC and the cartel's kingpin, Saudi Arabia, made a decision to hold onto OPEC's market share in an oversupplied market.

This decision, made amid dramatic increases in production in the US and Russia, as well as potential ramp-ups in unconventional energy output in the US and other nations, brought about a "dramatic change in [OPEC's] philosophy," Abraham noted.

"The Saudis are trying to build a floor under prices," he said.

The cartel used to be willing to lose some market share to nonOPEC producers, but it is no longer taking that position. As lowercost producers, OPEC nations are forcing higher-cost producers to take a step back with their new policy.

OPEC's new philosophy could cause oil prices to fall further, Abraham acknowledged. The world will see significant reductions in project CAPEX among oil majors, especially for highcost projects, such as those located offshore.

Additionally, the world will see reversing signals from demand side, such as slower economic and energy demand growth in China, and environmental regulations impacting demand in the West. These factors will combine to stabilize or potentially push down energy demand in the midst of growing supply sources.

After a decade of upward pressure on prices, the reverse is now happening.

OPEC has evolved with the change in global oil marketplace, and it is definitely still a cartel, Abraham opined. OPEC used to prioritize the maintenance of stability and limited price 94

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volatility in the oil market, but market share is now the cartel's priority, he said.

Gas to surge in 2016.

Natural gas will remain extremely competitive next year, according to Franklin (pictured left). Abraham noted that the US has a "nearly unlimited supply" of gas reserves for both domestic use and export. Cheniere Energy's new LNG export terminal in Louisiana will mark the start of a new era of US natural gas exports. A number of other LNG exports projects are "right behind" Cheniere, Abraham said.

There is also a worldwide impetus toward increasing competition for more natural gas imports and safer supply sources. The gas marketplace will remain very competitive in 2016, particularly in the US, Abraham said.

What about renewables?

The former energy secretary also spoke to the fluctuating appeal of renewable energies. It is difficult to make renewables attractive to investors with natural gas at $2/MMBtu, Abraham noted.

Investments in solar energy, wind farms and other renewable energies are easier to justify when gas prices are higher; otherwise, it is too expensive for consumers to make these transitions.

If gas is allowed to take on a larger role in power generation, it will supplant coal use and continue to influence transition in fuel markets, Abraham said. At the same time, the combination of more nuclear energy, supplemented by renewables, will help to offset greenhouse gas (GHG) emissions.

Paris climate talks.

Franklin also asked about the state of climate talks in Paris and the possibility of a carbon tax. Abraham advised breakfast attendees to look toward the November 2016 US election for development on carbon taxes and environmental policy changes.

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US Democrats will push for clean power and Environmental Protection Agency-generated rules that will affect related industries, such as oil and gas, Abraham said. While these rules may not include a carbon tax, they may collectively have a similar effect.

If European economies continue to be soft and the US economy remains a bit lax, then public support for actions that would potentially undermine economic growth will not be popular, Abraham noted.

The world, and in particular the US, needs to embrace nuclear energy and "tone down some of the climate rhetoric," he said. Environmental groups and politicians should appeal to people on a practical, not emotional, level.

Future of Texas O&G. In closing, Franklin asked Abraham, "What do all of these trends mean for the Houston and Texas economies in 2016?"

Abraham noted that pricing and commodities cycles are inevitable, although industry veterans know that they need to "weather the storm." The Texas oil and gas industry has been resilient in the face of rapidly fluctuating market conditions, he noted.

As the global energy markets continue to grow and change, Texas-produced commodities will continue to be highly sought after. An end to the US ban on crude exports would be helpful. "In a low-price environment, it's easier to make an argument for that [scenario]," Abraham said.

China’s diesel use falls as gas, gasoline post gains 01.25.2016 | The 3.7% decline in diesel demand in 2015 is greater than the 1.5% drop in diesel usage in 2014. Meanwhile, gasoline and natural gas consumption rose by 7% and 5.7%, respectively.

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Keywords: Diesel use in China dropped 3.7% in 2015 from the prior year, according to new data made available Monday from the nation's National Development and Reform Commission.

The decline is greater than the 1.5% drop in diesel usage in 2014.

Meanwhile, gasoline and natural gas consumption rose by 7% and 5.7%, respectively.

The figures reflect divergent economic trends, as gasoline demand in the world's top automobile market rises. Meanwhile, slowing industrial production has hampered the diesel market.

Industrial output in China expanded by 6.1% last year, representing the slowest pace of growth since at least 1999.

However, China's total vehicle sales are expected to rise a further 6% this year after increasing to a record in 2015.

In a forecast issued last month, the International Energy Agency (IEA) expects Chinese diesel consumption to stay flat or fall in 2016, while gasoline use will rise by 200,000 bpd. Diesel exports from China surged 75% last year, representing a record volume.

The 5.7% growth in natural gas was likely driven by a price cut in November, according to industry analysts, since consumption in the first 11 months of the year had only risen by 3.7%.

Oil rises, pares losses in January on hopes for production deal Reuters – Sat 30 Jan, 2016

By Devika Krishna Kumar NEW YORK (Reuters) - Oil prices rose on Friday, rebounding more than 25 percent from 12-year lows hit last week and cutting losses for the month, on prospects of a deal between major 97

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exporters to cut production and curb one of the biggest supply gluts in history.

Oil also drew support from firmer stock markets, lifted by weak U.S. gross domestic product growth data that raised hopes the Federal Reserve may slow any planned interest rate hikes. [.N] The oil market rallied for four straight sessions after a renewed call from the Organization of the Petroleum Exporting Countries for joint efforts with rival producers to cut supply triggered a volley of comments from Russia on a deal with the cartel, something it had been refusing to do for 15 years.

Brent March futures (LCOc1), which expired on Friday, closed at $34.74 a barrel, 85 cents or 2.5 percent higher. On Jan. 20, it hit $27.10, its lowest since November 2003.

U.S. crude (CLc1) settled up 40 cents or 1.2 percent, at$33.62 per barrel, having hit a high of $34.40 in the session.

For the week, Brent was 7.9 percent higher and U.S. crude 4.4 percent higher, paring their monthly losses to 6.8 percent and 9.3 percent respectively.

Both contracts briefly turned negative after the Wall Street Journal cited an Iranian oil official as saying the country would not join an immediate OPEC production cut.

Moscow has sent mixed signals, eventually saying veteran minister Sergei Lavrov, who almost never comments on oil policies, would visit the UAE and Oman to discuss oil markets.

Cash-strapped Venezuela is also sending its oil minister to Russia on a tour beginning on Saturday of non-OPEC and fellow OPEC states.

"The market has rewarded these statements about the possibility of a deal, even though I think it's ridiculous," said John Kilduff, partner at Again Capital LLC in New York.

He noted that Iran and Iraq were determined to boost production, and were unlikely to come together with Saudi Arabia to cut OPEC output. The Saudis have made no official statement on a deal.

"This is a rally on false hopes, unfortunately"

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Other analysts said prices may have found a bottom and could rally as high as $45 by year-end as non-OPEC supply is reduced and global demand improves.

U.S. oil production fell in November for the second straight month and U.S. shale producers, who have helped add to the glut, have slashed 2016 capital spending plans more than expected.

Meanwhile, the U.S. oil drilling rig count fell for the sixth straight week with more cuts seen, oil services company Baker Hughes Inc (BHI.N) said.

"With more energy companies announcing cuts and OPEC contemplating a cut, it looks like oil is forming a bottom," said Phil Flynn, an analyst at Price Futures Group in Chicago.

"Now the question becomes how high can they go. The charts look like a test near $40 is on the cards."

In a sign that the market sentiment was improving, hedge funds raised their bullish bets on U.S. crude oil for the second straight week, the U.S. Commodity Futures Trading Commission (CFTC) said. [CFTC/] "It's something that sub-$30 oil does. It makes some traders inclined to think that we are have reached or are near a bottom, so they want to be positioned ahead of it," said Gene McGillian, Senior Analyst at Tradition Energy in Stamford Connecticut.

(Additional reporting Simon Falush and Dmitry Zhdannikov in London, Meeyoung Cho in Seoul and Henning Gloystein in Singapore; Editing by Marguerita Choy and David Gregorio) Lower oil prices — they aren’t good for everyone

By Jay Fitzgerald GLOBE CORRESPONDENT JANUARY 23, 2016

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ANDREW CULLEN/REUTERS Receding oil prices have forced a decrease in drilling in North Dakota’s shale fields, leading to thousands of layoffs Here’s the economic question of the day: Aren’t lower oil prices supposed to be a plus for the US economy?

Economists have long equated declines in oil prices to tax cuts, putting more money into consumers’ pockets to spend elsewhere, slashing heat, power, and material costs expenses for firms and industries, and easing inflation.

Yet, over the past several weeks, financial markets have been in turmoil, as investors dump stocks amidst concerns about a worldwide oil glut, plunging oil prices, and slowing global economy. US stock indexes have plunged as much as 9 percent since the beginning of the year.

This reaction reflects a changing and more complex world, where international markets and economies are more closely tied, and the United States is not only the world’s biggest consumer of oil and its products, but also now a leading producer.

Many economists insist that investor concerns over collapsing crude oil prices — which fell as low as $27 a barrel last week from more than $100 per barrel 18 months ago — are overblown.

“Lower oil prices remain a net plus for most people,” Mark Zandi, chief economist at Moody’s Analytics, the forecasting unit of the bond rating company.

But Zandi and other analysts acknowledge there are always negatives to wild swings in oil supplies and prices, whether up or down. Here are some of the pluses and minuses in oil’s latest crash, including its impact on local companies.

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The biggest loser By far, the biggest losers from falling oil prices are energy companies exploring, drilling, refining, and delivering crude oil and other petroleum products. Oil-service companies — such as drillers in the shale fields in North Dakota, Pennsylvania, and Texas — have been the hardest hit.

Haynes and Boone LLP, a Houston law firm specializing in the energy sector, says that 42 energy firms filed for bankruptcy last year in the United States and Canada, as companies couldn’t fetch high enough prices to pay creditors. In turn, energy firms have laid off tens of thousands of workers while leaving behind at least $17 billion in unpaid loans.

Locally, Global Partners LP, an energy transportation, storage, and distribution company is hurting like other publicly traded companies in the energy sector. Global Partners, a Fortune 500 firm, grew quickly as shale oil production boomed in North Dakota and crude needed to be shipped to ports and refineries. It also invested heavily in building a network of rail-loading facilities, storage and barge terminals, and retail gasoline stations.

Global Partners’ stock fell below $16 a share at one point last week, down from its 52-week high of $42.74. The company recently reported that third-quarter revenue last year plunged to $2.5 billion from $4 billion in 2014, a drop of nearly 40 percent.

A spokesman for Global Partners did not respond to requests for comment. But company officials in earnings calls blamed deteriorating conditions in the oil industry.

Rich Hendrick, general manager of the Port of Albany in New York, where Global Partners owns a large rail, port, and storage terminal, doesn’t need financial reports to see that business is slowing for Global Partners and other energy firms.

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Global Partners was “shipping oil by barge [down the Hudson River] at about one per day,” Hendrick said, “but now it’s down to about a barge every other day.”

Banks take a hit A lot of that expensive drilling equipment that opened oil reserves trapped in shale rock formations needed financing, and many of the nation’s largest banks find themselves exposed to billions of dollars in losses from loans they made to energy companies.

Wells Fargo & Co. of San Francisco has set aside about $1.1 billion to cover potential loan losses. JPMorgan Chase & Co. of New York has said energy loan losses could top $750 million.

Citigroup Inc. has set aside $300 million to cover potential losses in its energy lending.

Bank of America, one of the largest banks in the country and the largest in Massachusetts, has set aside reserves of $500 million to cover potential losses from the plunge in oil prices. In all, Bank of America has about $8.3 billion in “higher risk” loans to oil exploration and production companies, of which about 35 percent are considered especially at risk of default.

These “higher risk” energy loans represent less than 1 percent of Bank of America’s outstanding loans, but it and other banks are still on guard.

“We’re very focused on energy, given the volatility in oil prices,” Paul Donofrio, chief financial officer of Bank of America, told reporters last week. “We are looking at every loan.”

Investors, too The Dow Jones industrial average is down about 8 percent this month alone, the S&P 500 off about 7 percent, and the Nasdaq Composite down by about 9 percent. Stocks have tracked oil prices, falling when crude prices fall and rebounding when oil does.

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That pattern is tied directly and indirectly to energy stocks, said Jeff Knight, head of Global Asset Allocation at Columbia Threadneedle Investments in Boston. He noted that exchangetraded-funds that track energy stocks within the Standard & Poor’s 500 are down about 50 percent since June 2014, when oil prices exceeded $100 per barrel.

Those losses have a big impact on the broader market because energy stocks once accounted for about 11 percent of the total value of all publicly traded companies on the S & P index, he said. Falling oil prices also affect sectors that provide goods and services to the industry.

Major banks included in the S&P 500 saw their shares fall by 12.5 percent in the month ending Jan. 19, compared with the index’s overall slide of 6.2 percent. The reason: Investors fear banks’ exposure to loan defaults by energy companies.

On the other hand . . .

Transportation companies, from major airlines to trucking firms, have benefited from lower fuel prices.

Chris Crean, a vice president at Peter Pan Bus Lines Inc. in Springfield, said all of his firm’s 230 buses run on diesel fuel — and the company has enjoyed substantial fuel-cost savings, though he didn’t have specific numbers available.

The price of diesel has fallen to an average $2.24 per gallon in recent weeks in Massachusetts, down from $2.96 a gallon a year ago and from an all-time high of $4.92 a gallon in 2008, according to AAA, the auto-services organization.

Even some railway companies, which have seen a drop-off in crude-oil deliveries, consider today’s lower petroleum prices as a net plus for the industry because oil is a relatively small part of what many railways ship.

Cynthia Scarano, executive vice president at Pan Am Railways in North Billerica, said 15 percent of her rail company’s operational 103

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expenses are tied to diesel costs. Though she declined to give dollar figures, she said the savings from lower fuel prices have improved the company’s bottom line and allowed it to spend more on improving tracks.

“The lower prices have really helped us,” she said.

Fueling auto sales Falling gasoline prices have contributed to soaring auto sales and brought gas-guzzling SUVs back in vogue. US sales of cars and light trucks climbed to a record of 17.5 million last year, up 6 percent from 16.5 million in 2014.

“Lower fuel prices are absolutely helping us,” said Ray Ciccolo, president of Village Automotive Group, owner of nine car dealerships in the Boston area. Overall sales at Village increased last year by about 6 percent, and sales of SUVs — which are more expensive and provide higher profit margins — increased by about 8 percent, Ciccolo said.

“SUVs and trucks are driving the market,” Ciccolo said.

Motorists are also big winners. Average pump prices in Massachusetts fell to $1.87 last week, less than half the all-time high of $4 a gallon in July 2008, according to AAA Northeast.

A warmer feeling For years, heating oil dealers took it on the competitive chin because heating oil prices were much higher than natural gas.

Just a few years ago, heating oil cost about twice as much as natural gas to heat homes, leading many consumers to convert to natural gas.

But with the recent fall in heating oil prices — to about $2.10 a gallon from a high of $4 a gallon two years ago — the industry is more competitive. Heating oil today costs 7 percent more than natural gas to heat homes.

“We’re closing the gap,” said Michael Ferrante, president of the Massachusetts Energy Marketers Association, whose 350 104

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members are mostly heating-oil dealers. “When prices fall like this, it’s tremendous for our customers and for our members.”

By the numbers 72: The percentage drop in monthly average oil prices per barrel from June 2014 ($105.22) to January 2016 ($29.79) 53: The percentage fall in Massachusetts gasoline prices from their all-time high on July 8, 2008 ($4.09 per gallon) to Jan. 21, 2016 ($1.92) 42: The number of US oil exploration and production companies that went bankrupt in 2015 258,000: The number of lost energy sector jobs worldwide in 2015 SOURCES: Energy Information Agency, AAA, Haynes and Boone LLC, Graves & Co., Baker Hughes Rig Count Jay Fitzgerald can be reached at jayfitzmedia@gmail.com.

Forget peak oil: shale is a market game-changer US shale production could have long-term global implications High elasticity of supply, lower US oil imports and lower oil prices are some of the implications of US shale production, which has increased to 4.5 million barrels per day from nearly nothing in 2010, Martin Wolf writes, citing a speech by BP chief economist Spencer Dale. The shale boom is also expanding global supply capacity for oil, Wolf writes. The Irish Times (Dublin) US shale oil production has risen to around 4.5 million barrels a day from almost nothing in 2010 Wed, Dec 2, 2015, 11:19 Updated: Wed, Dec 2, 2015, 11:31

Martin Wolf

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Pump jacks at the Belridge Oil Field and hydraulic fracking site, the fourth-largest oil field in California. Photograph: Getty Images Why have oil prices fallen? Is this a temporary phenomenon or does it reflect a structural shift in global oil markets? If it is structural, it will have significant implications for the world economy, geopolitics and our ability to manage climate change.

With United States consumer prices as deflator, real prices fell by more than half between June 2014 and October 2015. In the latter month, real oil prices were 17 per cent lower than their average since 1970, though they were well above levels in the early 1970s and between 1986 and the early 2000s.

A speech by Spencer Dale, chief economist of BP sheds light on what is driving oil prices. He argues that people tend to believe oil is an exhaustible resource whose price is likely to rise over time, that demand and supply curves for oil are steep (technically, “inelastic�), that oil flows predominantly to western countries and that Opec is willing to stabilise the market. Much of this conventional wisdom about oil is, he argues, false.

US shale revolution A part of what is shaking these assumptions is the US shale revolution. From virtually nothing in 2010, US shale oil production 106

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has risen to around 4.5 million barrels a day. Most shale oil is, suggests Mr Dale, profitable at between $50 and $60 a barrel.

Moreover, the productivity of shale oil production (measured as initial production per rig) rose at more than 30 per cent a year between 2007 and 2014. Above all, the rapid growth in shale oil production was the decisive factor in the collapse in the price of crude last year: US oil production on its own increased by almost twice the expansion in demand. It is simply the supply, stupid.

One implication is that the short-term elasticity of supply of oil is higher than it used to be. A relatively high proportion of the costs of shale oil production is variable because the investment is quick and yields a quick return. As a result, supply is more responsive to price than it is for conventional oil, which has high fixed costs and relatively low variable costs.

• • •

The rise of Trump is a rejection of the elite’s agenda Martin Wolf: China’s great economic shift needs to begin Martin Wolf: Market turmoil means we are in for bumpy ride This relatively high elasticity of supply means the market should stabilise prices more effectively than in the past. But shale oil production is also more dependent on the availability of credit than is conventional oil. This adds a direct financial channel to oil supply.

Another implication is a huge shift in the direction of trade. China and India are likely to become vastly more important net importers of oil, while US net imports shrink. Possibly 60 per cent of the global increase in oil demand will come from the two Asian giants over the next 20 years.

By 2035, China is likely to import three- quarters of its oil and India almost 90 per cent. This assumes the transport system will remain dependent on oil over this long period. If it does, it demands no great mental leap to assume that US interest in stabilising the Middle East will shrink as that of China and India rises. The geopolitical implications might be profound.

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A further implication concerns the challenge for Opec in stabilising prices. In its World Energy Outlook 2015 , the International Energy Agency forecasts a price of $80 a barrel in 2020, as rising demand absorbs what it sees as a temporary excess supply. A lower oil price forecast is also considered, with prices staying close to $50 a barrel this decade.

Two assumptions underlie the latter forecast: resilient US supply and a decision by Opec producers, notably Saudi Arabia, to defend production shares (and the oil market itself). But the lowprice strategy would create pain for the producers as public spending continues to exceed oil revenues for a long period. How long might this stand-off last?

A final set of implications is for climate policy. The emergence of shale oil underlines that the global supply capacity is not only enormous but expanding. Forget peak oil. As Mr Dale notes: “In very rough terms, over the past 35 years, the world has consumed around a trillion barrels of oil. Over the same period, proved oil reserves have increased by more than a trillion barrels.�

Direct opposition The problem is not that the world is running out of oil. It is that it has far more than it can burn while having any hope of limiting the increase in global mean temperatures over the pre-industrial levels to 2°. Burning existing reserves of oil and gas would exceed the global carbon budget threefold. Thus, the economics of fossil fuels and of managing climate change are in direct opposition. One must give. Technological change might undermine the economics of fossil fuels. If not, politicians will have to do so.

This underlines the scale of the challenge leaders confront at the climate conference in Paris. But the response to the fall in oil prices shows how hopeless policymakers have been. According 108

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to the IEA, subsidies to the supply and use of fossil fuels still amounted to $493 billion in 2014. True, they would have been $610 billion without reforms made since 2009. So progress has been made.

But low oil prices now justify elimination of subsidies. In rich countries low prices could – and should – have been used to impose offsetting taxes on consumption, thereby maintaining the incentive to economise on use of fossil fuels, increasing fiscal revenue and allowing a reduction in other taxes, notably on employment. But this important opportunity has been almost entirely missed.

One has to ask whether there is the slightest chance that effective action, rather than window-dressing, will emerge from Paris. I hope to be proved wrong, But I am, alas, sceptical.

Oil slips below $33 as hopes for production cut fade Brent for April delivery down $1.32 at $32.92 a barrel

Stockpiles are still on the rise, leading many to speculate that global storage may be close to capacity. Photo: Bloomberg London: Oil fell around 4% on Tuesday, dented by worries about the demand outlook and rising supply, while hopes for a deal between OPEC and Russia on output cuts faded.

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Brent for April delivery was down $1.32 at $32.92 a barrel by 1315 GMT a fall, after settling down $1.75, or 4.9%, in the previous session.

The front-month contract for US West Texas Intermediate (WTI) was down 80 cents at $30.82 after falling $2.00, or 5.9%, the session before.

Russia’s energy minister and Venezuela’s oil minister discussed the possibility of holding joint consultations between OPEC and non-OPEC countries in the near future, the Russian Energy Ministry said on Monday.

But Goldman Sachs said it was “highly unlikely” the Organization of the Petroleum Exporting Countries would cooperate with Russia to cut output, saying such a move would also be selfdefeating as stronger prices would bring previously shelved production back to the market.

“It’s hard to see a successful agreement between OPEC and Russia to cut production and people are starting to see that,” said Andy Sommer, senior energy analyst at Axpo Trading in Dietikon, Switzerland.

He said there was a good chance that oil could fall back below $30 per barrel this month.

Didier Houssin, president of French Institute for Petroleum and New Energies said that a deal would benefit Russia and OPEC’s main competitor, the United States.

“There is no way US producers will respect any OPEC – Russia deal meanwhile, they will be the first to benefit from any price recovery by ramping up production,” Houssin said.

Underlining the well-supplied nature of the market, Russia’s oil output rose to 10.88 million barrels per day (bpd) in January, from 10.83 million bpd in December, Energy Ministry data showed on Tuesday.

Stockpiles are still on the rise, leading many to speculate that global storage may be close to capacity, Sommer said.

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US commercial crude oil inventories likely rose by 4.7 million barrels last week to a new record of 499.6 million barrels, a Reuters survey taken ahead of industry and official data showed.

The American Petroleum Institute, an industry group, releases its weekly inventory report later on Tuesday, while data from the US government’s Energy Information Administration is due on Wednesday.

Investors await economic data later in the week, including US nonfarm payroll and unemployment figures and producer prices from the euro zone.

The tumbling crude price has hit oil majors, with BP slumping to its worst annual loss in more than 20 years last year, its results showed on Tuesday, pushing its shares down more than 6%.

Other oil companies also fell sharply. Reuters Additional reporting by Keith Wallis in Singapore and Felix Bate in Paris.Top of Form Kuwait Petroleum International says oil prices could reach $50 a barrel mid-2017 Reuter. Sat Feb 13, 2016 Kuwait Petroleum International (KPI) said on Saturday oil prices could reach a range of $50 to $60 a barrel by mid-2017, the official state news agency reported.

The agency quoted the company's top executive Bakheet alRashidi as saying prices could reach the range of $60 to $80 a barrel in three years' time.

"The global oil market is going through a correction and we have reached the bottom," he was quoted as saying by the official Kuwait news agency, who added that Rashidi had made his comments at a company event in London.

Rashidi attributed the drop in oil prices to excess supply in the market and slow demand from Asia, particularly China.

Asked whether oil prices would ever reach the $100 per barrel level again, Rashidi said, "We can reach prices ranging between $60 and $80 but we need three years."

On Vietnam's Nghi Son refinery, Rashidi said it would start operations by the end of 2016.

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TechScan The new digital tools catching on in the old school oil field Posted on January 6, 2016 | By Rhiannon Meyers New digital tools changing the oil field

Baker Hughes Baker Hughes employees monitor a customer's wells from the company's operations center in Claremore, Oklahoma. The Houston-based oil field services giant developed the round-theclock monitoring system in an effort to help its customers bolster production.

Oil and gas companies have been working for years on ways to swap out pencil and paper in the oil patch for sophisticated sensors and iPads, but the digital oil field initiative fell by the wayside during the recent shale boom when speed mattered more than efficiency.

That effort is now gaining renewed attention during the worst crude slump in decades as oil and gas firms scramble to squeeze more out of their smaller fleet of wells and workers.

Read more about the new technology changing how oil workers operate in the field at HoustonChronicle.com.

Categories: Crude oil, Oil field services Tags: crude oil | iPads | oil field services | oil prices 112

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DuPont, ADM Biotech Will Chemicals, Plastics By: Jessica Lyons Hardcastle

Enable

100%

Renewable

DuPont Industrial Biosciences and Archer Daniels Midland today said they have developed a “game-changing” technology — a process to develop a molecule that can be converted into several biobased chemicals and plastics with applications in packaging, textiles, engineering plastics and other industries.

The companies have developed a method for producing furan dicarboxylic methyl ester (FDME) from fructose. FDME is a highpurity derivative of furandicarboxylic acid (FDCA), one of the 12 building blocks identified by the US Department of Energy that can be converted into a number of high-value, biobased chemicals or materials. It has long been sought-after and researched, but has not yet been available at commercial scale and at reasonable cost, the companies say.

The new FDME technology is a more efficient and simple process than traditional conversion approaches and results in higher yields, lower energy usage and lower capital expenditures.

This partnership brings together ADM’s world-leading expertise in fructose production, and carbohydrate chemistry with DuPont’s biotechnology, chemistry, materials and applications expertise, all backed by a strong joint intellectual-property portfolio.

“This molecule is a game-changing platform technology. It will enable cost-efficient production of a variety of 100 percent renewable, high-performance chemicals and polymers with applications across a broad range of industries,” said Simon Herriott, global business director for biomaterials at DuPont.

One of the first polymers under development utilizing FDME is polytrimethylene furandicarboxylate (PTF), a polyester also made from DuPont’s Bio-PDO (1,3-propanediol). PTF is a 100-percent 113

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renewable and recyclable polymer that, when used to make bottles and other beverage packages, substantially improves gasbarrier properties compared to other polyesters. This makes PTF a great choice for customers in the beverage packaging industry looking to improve the shelf life of their products, DuPont says.

ADM and DuPont are taking the initial step in the process of bringing FDME to market by moving forward on the scale-up phase of the project. The two companies are planning to build an integrated 60 ton-per-year demonstration plant in Decatur, Ill., which will provide potential customers with sufficient product quantities for testing and research.

The global renewable chemicals market will reach $84.3 billion by 2020, up from $49 billion in 2015, growing at a CAGR of 11.47 percent, according to a Research and Markets report.

Read more: http://www.environmentalleader.com/2016/01/19/dupontadm-biotech-will-enable-100-renewable-chemicalsplastics/#ixzz3yzVjxF3t RFCC Failure Analysis - A CASE STUDY May please like to share with all FCC people of your refinery..

Major accident and failure of stationary equipment in the RFCCU 01.01.2016 | Seok, W., SK Energy , South Korea; Lee, S., SK Energy , South Korea in HP The four case studies cover component failures and multiple types of leakage: valve packing, expansion joint and corrosion. Each case study systematically identifies cause, countermeasures taken and lessons learned.

Keywords: [residue] [cracking] [failure] [lessons] Several lessons were learned during the operation of two residue fluidized catalytic cracking units (RFCCUs) built in 1995 and 2008. An RFCCU converts atmospheric residual oil to create lighter hydrocarbons under very high temperature conditions, and 114

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the design of the equipment is complex. The RFCC streams of catalyst, feed oil, air and flue gas are shown in Fig. 1.

Fig. 1. A typical RFCC process flow.

The major stationary components are the reactor, the regenerator cyclone internals, catalyst-transfer lines that connect the reactor and the regenerator, bellows expansion joints that absorb the thermal movement of the lines, and slide valves that control catalyst flow. After the regenerator, a carbon monoxide (CO) boiler produces superheated high-pressure (HP) steam, using flue gas as fuel. The boiler is operated under high temperatures with a high velocity of erosive catalyst fines and, therefore, has experienced many problems, both large and small. RFCCUs always operate under very severe conditions, such as temperatures ranging from 530ﾂｰC to 780ﾂｰC with catalyst fines. If even a small amount of leakage or a minor abnormal symptom is found, the consequences can be very significant.

Since its initial operation in 1995, this plant has gone through many troubles and leakages that affected the process capacities窶馬amely, charge-down or total shutdown.

The major accidents experienced included: 1. Failure of a catalyst cooler tube and aeration pipe due to the poor insertion of the inner tube to the outer tube, bad welding quality and misalignment of pipe to elbow.

2. The leakage of a slide valve packing due to improper countermeasures when the valve stem was stuck.

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3. Leakage of an expansion joint due to a lack of monitoring the pressure gauge on the bellows.

4. Leakage of the CO boiler tube due to urea solution penetration into the insulation beneath. Urea is used for removing NOx from RFCC flue gas.

There are several types of commercially licensed RFCC processes,1 but the process schemes are deemed similar enough, by these authors, that their organizational “lessons learned� can provide important lessons to readers for the operation and maintenance of other RFCC processes.

FOUR CASE STUDIES The following case studies encompass the range from reactor to CO boiler.

Failure of a catalyst cooler tube and aeration pipe The catalyst cooler is used to both produce medium-pressure (MP) steam, using the heat of the regenerated catalyst, and to cool regenerated catalyst to again feed the RFCC reactor. The cooler tube bundle is a bayonet type, which has inner tubes and outer tubes that are inserted into a refractory lined shell of the regenerator (Fig. 2). Boiler feed water enters the inner tubes, and steam comes out through the outer tubes, each of which are composed of a tube sheet and stainless-steel fluidizing air lances that distribute air into the cooler near the bottom of the tubes. This air creates turbulence and increases heat-transfer efficiency as the bubbles move upward. Because they are operated under high temperature with catalyst fines present, the tubes are subjected to severe erosion.

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Fig. 2. A schematic of a catalyst cooler.

It is recommended to periodically replace them with spare bundles and to repair the used tube bundles (e.g., re-tube and replace aeration pipes). However, during maintenance, workers may be unable to visually understand if it is actually assembled properly because the insertion status can only be checked through a nozzle.

If the catalyst cooler has some troubles, such as tube leakage or aeration pipe failure, there are normally only two options: the first is to repair it during a total shutdown, and the other is to carry out a charge-down and keep it operating until the next turnaround.

Cause of the first failure. The plant has experienced four failures since 1995. The first two cases were outer tube leakage because the inner tube was not inserted properly, and the second involved the outer tube cap, which was exposed to high temperatures, causing oxidation or thermal shock (Fig. 3). The inner tube was bent due to improper insertion at the maintenance stage, so the inner tube was 163 mm shorter than in the design.

The outer tube had been exposed to approximately 720째C and was subject to oxidation with thermal shock, resulting in final failure.

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Fig. 3. Expected failure mechanism.

Countermeasures. Visual inspection revealed that one inner tube was bent due to interference between the pressure stabilizer and the guide plate. The shell-side temperature was still high, so other nondestructive examination (NDE) methods were not used.

After an idea-generation session, an interesting inspection method termed the “balloon plug test� was implemented and proved very successful in detecting leaked tubes. Two tubes had leaked, and the adjacent 12 tubes were plugged to avoid further leaking.

Normally, for a failure like this, a total shutdown would be required to repair it, but the team succeeded in doing the repair work with only a 50% charge-down (Fig. 4). Only the inner tube bundle was pulled down and the leaked tubes were plugged. There are many precautions to be studied and taken before implementing such a 118

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repair. For the failure on the outer tube, it should be confirmed that the hole is small, and the catalyst in the shell side should be kept steady, without air fluffing, by closing the slide valve on the catalyst-cooled standpipe, so that small leakage might be allowed.

Fig. 4. The repair sequence was completed with only a 50% charge-down.

During bundle replacement, the workers should wear protective equipment, such as heatproof protection clothes. If the catalyst leakage is significant or cannot be stopped, work should stop and the bundle should be assembled soon. Fortunately, the plant had succeeded twice without any trouble because the condition was under control. After the failure, the plant revised its maintenance manual to prevent the improper insertion of inner tubes, and to check the condition through the nozzle.

Lessons learned. The quality for inserting inner tubes into outer tubes should be checked through a side nozzle, or by another method, when conducting tube replacement. If the outer tube failed, the repair can be done without a total shutdown, but caution must be taken prior to beginning repair work.

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Cause of the second failure. The aeration pipe vibrates under high temperature, so a fatigue crack can be easily initiated. In this instance, a fatigue failure developed on an aeration pipe that is used to fluidize catalysts in the shell side with air. Their original design used a Schedule 80 elbow connected to Schedule 40 straight pipes, and there is a thickness difference: 8 mm vs. 5.7 mm. The inspection showed a crack initiated at the weld toe of the Schedule 80 elbow to the Schedule 40 straight pipe due to the notch effect of a thickness difference between the thicker elbow and the thinner pipe. Microstructure analysis showed that the crack was a fatigue crack, which does not show itself in small branches, but in single cracks starting from a notched surface area (Figs. 5 and 6).

Fig. 5. Microstructure analysis showed fatigue cracks, which are revealed in single cracks starting from a notched surface area.

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Fig. 6. Aeration pipes in the catalyst cooler.

Countermeasures. Since this fatigue crack could not be repaired during operation, the plant could not continue operating with this cooler. The second catalyst cooler was operated with maximum capacity until the next turnaround. During the repair, all aeration pipe welds were checked by dye penetration and radiographic tests to confirm that there was no excessive penetration of any welds. The field joint was checked thoroughly for excessive misalignment or notch by NDE. To minimize stress concentrations, the thicker Schedule 80 elbow was changed to a Schedule 40 elbow.

Lessons learned. The aeration pipe is operated under severe vibration conditions with high temperatures. Therefore, any area of stress concentration is not permitted. All butt welds should be flush ground, and any excessive misalignment prohibited. It is especially important that excessive penetration at the root pass of welds should be removed to minimize the stress concentration.

Leakage of a slide valve packing Six slide valves are used for catalyst flow control between the reactor and the regenerator. These are gate-type valves, operated by hydraulic power under very high temperatures (530째C to 780째C) with catalyst fines. The disc and orifice plate are 121

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covered with abrasion-resistant lining, and any parts exposed to catalyst fines are hard-surfaced with Stellite 6, a cobalt-based alloy with high abrasion, corrosion and elevated-temperature wear resistance. A steam purge system is required for the valve packings to keep the valve stem free of catalyst. The recirculation slide valve that is operated more frequently leaked through its packing box during operation, and the process was shut down right away (Fig. 7).

Fig. 7. Detailed view of a slide valve packing box.

Cause. The expected cause was the continued purge air flow that was preventing the intake of catalyst fines from the regenerator to the slide valve stuffing box. The plant staff should have controlled the pressure and flow of the purge air after the sticking of the stem was solved, but they had not. The valve packings had worn out, and many catalyst fines had leaked during operation. As shown in Fig. 8, the valve was stuck after the replacement of the packings during turnaround. An attempt was made to solve the 122

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problem with a higher-pressure nitrogen/air purge, and this was serviced continuously for about eight months. However, this caused damage to the packings, and hot catalysts penetrated outside.

Fig. 8. Leakage sequence.

Countermeasures. The process was shut down urgently, and the leak area was covered with rectangular plates. After this accident, the plant staff checked the purge flowrate and pressure periodically.

Lessons learned. The valve packing must be checked by monitoring the purge gas flowrate and pressure. If any deviation from the design value occurs, a sealant recommended by the manufacturer should be prepared and injected through the nozzle. When the valve is not working due to the inflow of catalyst 123

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fines, a higher gas pressure can be used to get rid of catalyst fines. To avoid packing damage, this is not a recommended longterm solution.

Leakage of a metallic expansion joint Seven metallic expansion joints were used in the large catalyst transfer lines to absorb the axial, angular and lateral movement within the system, thereby minimizing the stresses imposed on vessel nozzles (Fig. 9). Insulation materials were installed due to the high temperatures. The bellows are composed of two plies of Inconel 625LCF (resistant to low-cycle fatigue) that are designed to detect the leakage of the inner ply. During operation, the regenerated expansion joint leaked, and the process had to be shut down urgently because the amount of leakage was out of control, and the additional bellows for repair had not yet been prepared.

Fig. 9. Metallic expansion joints were used in the large catalyst transfer lines to absorb axial, angular and lateral movement.

Cause. When the leakage occurred, the process had to be shut down urgently because the amount of leakage was out of control, and the additional bellows for repair had not yet been prepared.

The cause of failure seemed to be fatigue cracking: for an extended period of operation, the hose braid seal and insulation 124

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pillow were damaged, and the bellows were exposed to high temperatures. Cracks developed, allowing leakage (Fig. 10).

Fig. 10. Extended operation damaged the hose braid seal and insulation pillow, exposing the bellows to high temperatures.

Countermeasures. As a temporary repair, a patch plate was installed. An additional new bellows designed for temporary use up to the next turnaround was again installed during operation (Fig. 11). In accordance with the licensor manual, the monitoring of the pressure gauge at the bellows should be checked and, if the gauge is pressurized, additional bellows would be required to avoid total shutdown. The plant staff did not accomplish this.

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Fig. 11. To control leakage, a patch plate and new bellows were installed as temporary repairs.

Lessons learned. The lifetime of bellows (10–20 years) depends on operating conditions—outer bellows need to be monitored periodically for pressure and temperature. If any change is detected, an additional bellows that is designed in accordance with the lifetime should be prepared. The internal components, such as the hose braid seal and the insulation pillow, should be checked during shutdown.

Leakage at a CO boiler tube Flue gas exits the cyclones into a plenum chamber in the top of the regenerator. The hot flue gas is sent to a CO boiler, where both sensible heat and combustion heat are used to generate superheated high-pressure steam. To correspond with enhanced NOx emission regulations, a urea solution was supplied in the boiler during operation; unfortunately, some of the solution penetrated into the insulation refractory and caused CO2corrosion of the tubes (Eq. 1).

CO(NH2)2 + 2NO + 1⁄2O2 → 2N2 + CO2 + 2H2O (1) Cause. Eight of the 10 urea nozzles had been serviced since the initial startup in 2008. After isolation of the CO boiler, it was found that one tube under the insulation refractory had leaked, and the others had also started to thin from the outside. Severe localized areas of corrosion around the leaked tube were found. The cause was wet CO2 corrosion due to the urea solution that had dripped, penetrated into the refractory and corroded the tube. The refractory beneath the urea nozzle was not constructed properly 126

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to minimize the interference with the spray pattern of the urea solution and the refractory (Fig. 12).

Fig. 12. Due to the urea solution, wet CO2 corrosion dripped, penetrating into the refractory and corroding the tube.

When urea solution decomposes in water, NH3 and CO2 are produced, corroding the plain carbon steel (Eq. 2).

CO(NH2)2 + 2H2O → 2NH3 + CO2 (2) The moist flue gas from the generator contains CO2 and SOx and causes wet conditions; therefore, the tube can severely corrode. If NH3 contacts SOx, highly corrosive salt, such as ammonium sulfate (NH4)2SO4, ammonium bisulfate (NH4)HSO4 or ammonium sulfide (NH4)2S can be formed, and corrosion may be accelerated.

Countermeasures. A design and construction mistake was confirmed (Fig. 13). To combat this, a spraying test was again conducted to determine whether there was dripping. The nozzle projection distance was adjusted to 35 mm from the tip of the spray nozzle. Note: Almost any spray nozzle can have a small amount of dripping, but evaporating the drips during operation would remedy the situation. The urea injection system designer or inspector may have thought the dripping liquid would quickly evaporate and not penetrate into the refractory and corrode the tubes.

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Fig. 13. Interference between spray and refractory.

Lessons learned. Using urea to remove NOx in the boiler flue gas was a first experience for this plant. At the design stage, the liquid should be checked thoroughly to determine whether it has the potential to corrode the tubes. Additionally, the projection of the nozzles should be checked to see if the liquid can be dripped by conducting a spraying test.

Key learnings As previously mentioned, the licensors of RFCCUs for other refineries may be different, but the failure conditions for the main equipment are similar. Therefore, these four failure cases experienced in the RFCCU may help others that operate such units: 1. The catalyst cooler should be replaced at every major turnaround.

The outer tube failure may be due to the improper insertion of inner tubes, so it is important to ensure they are assembled properly.

2.

3. For the fatigue crack of aeration pipes, all of the welds, including field joints, should be checked to ensure that there are no significant notches due to excessive penetration or misalignment.

4.

5. To prevent leakage in slide valve packing, the purge gas flowrate and pressure should be monitored and recorded periodically. If there are significant deviations from the design, packing should be retightened and a specific sealant should be prepared.

6.

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7. Expansion joints are very important to absorb the thermal movement, and they are exposed to very severe operational conditions. The pressure and/or temperature gauge on the first ply bellows should be checked periodically, especially after shutdown or startup. If pressure increases, an additional bellows should be prepared immediately.

8.

9. If a urea solution is used to remove NOx in the CO boiler, it is recommended to ensure that the solution does not penetrate and soak the tube refractory surfaces during operation.

SUMMARY In-depth analysis and practical advice for the design, operation and maintenance of fluidized catalytic cracking units for residue is provided here. The four case studies cover component failures and multiple types of leakage: valve packing, expansion joint and corrosion. Each case study systematically identifies cause, countermeasures taken and lessons learned.

A key strategy focus is on methods that can affect repairs without requiring a total shutdown, rather only a 50% charge-down. NDE approaches included using a “balloon plug� test to detect leaked tubes. Design changes included avoiding stress concentrating notches due to wall-schedule thickness change and minimizing excessive penetration of root pass welds. Attention was needed for the design of the urea spraying system to avoid dripping liquid on refractory and corroding underlying tubes. Monitoring improvements included temperature and pressure at the expansion bellows to catch any leakage early from bellows fatigue cracking, and having a replacement bellows ready to install. HP LITERATURE CITED 1 Sadeghbeigi, R., Fluid Catalytic Cracking Handbook, Ch. 1, 3rd Ed., Elsevier, 2012.

THE AUTHORS Sang-Mo Lee is a senior engineer for SK Energy on the stationary equipment engineering team. He has over 20 years of experience in technical support to the 129

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mechanical maintenance division in refinery and petrochemical plants, especially resid fluid catalytic cracking, hydrodesulfurization, lube base oil and those that operate under very high pressure or high temperature. He has participated in many large plant construction projects as a key mechanical engineer and advised on procurement, design, fabrication and constructionprocesses. He has a BS degree in mechanical engineering from the University of Ulsan in South Korea, and has earned an international welding engineer degree from the International Institute of Welding.

WoomyungSeok is a maintenance and detailed design engineer at SK Energy in Ulsan, South Korea. He has over nine years of experience in static equipment maintenance and engineering, especially within RFCC plants. He has a BS degree in mechanical engineering from the University of Ulsan in South Korea.

Shocking! 'Electric Eel' Fibers Could Power Wearable Tech

by Charles Q. Choi, Live Science Contributor January 21, 2016 03 ACC Smartbrief

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Stretchy fibers that mimic electric eels could be woven into clothing to power wearable technology one day, new research suggests.

In experiments, these flexible fibers produced enough power to run electronic lights and watches.

The new fiber is exciting because it takes a page from nature to "solve real-world problems and even surmount nature in some aspects," said study lead author Hao Sun, a materials scientistatFudan University in Shanghai. [Top 10 Inventions That Changed the World] High voltage Electric eels (Electrophorus electricus) can generate deadly shocks to stun prey and defend against predators. These fish have cells known as electrocytes, which store and release electrically charged ions to generate powerful electric fields.

By themselves, electrocytes in electric eels generate low voltages of only about 0.15 volts. However, in eels, thousands of these disclikeelectrocytes line up, working in concert to produce deadly shocks of up to 600 volts, or about five times the voltage emitted from a U.S. electrical outlet.

Sun and his colleagues wanted to harness the power of the electric eel in a man-made material. To do so, they created fibers that mimicked the shocking creatures' ability to stack up tiny voltage-producing cells in concert.

These fibers are capacitors, meaning they alternate pairs of electrical conductors and electrical insulators, or materials that block the flow of electricity. Capacitors store electric charge on the surfaces of the conductors, and can capture and release energy much more quickly than batteries can, although they usually store less energy than batteries do.

The scientists fabricated the capacitors by first wrapping sheets of carbon nanotubes around elastic rubber fibers 500 microns wide, or about five times the average width of a human hair. Carbon 131

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nanotubes are pipes only nanometers, or billionths of a meter, in diameter that possess remarkable electrical and mechanical properties.

The researchers made sure that the electrically conductive carbon nanotube sheets did not completely cover the electrically insulating rubber. Instead, there were gaps where the insulating rubber was exposed. Such gaps are key, because capacitors consist of both conductive and insulating units.

Then, the scientists applied patches of electrically conductive electrolyte gel onto these fibers. The pattern of patches the researchers used converted the fibers into capacitors.

The more alternating segments of electrically conductive nanotube sheets and electrically insulating rubber gaps a fiber had, the greater the voltage it could generate. A fiber about 39 feet (12 meters) long could generate 1,000 volts, the researchers reported online Jan. 14 in the journal Advanced Materials.

Previous research also sought to mimic electric eels by connecting many electrocytelike units together. However, those units were impractical because they were strung together with metal wires, and generally had poor flexibility, the researchers said. This new device instead connected all of its electrocytelike units together on a single fiber.

"We think these findings provide an efficient strategy for the advancement of flexible electronics and wearable devices," Sun told Live Science.

Power fiber The elastic fibers could stretch up to 70 percent more than their usual length without losing their electrical or structural properties, the researchers said. The team also showed that the fibers could be woven together with conventional elastic fibers to create fabric that could be incorporated into clothes.

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The researchers suggested that the eely fibers could help power miniature electronic devices. For example, in experiments, they created energy wristbands to power electronic watches, and wove fibers into T-shirts to power 57 light-emitting diodes (LEDs). In the future, these energy fibers "might be incorporated into our daily clothes to power our wearable devices, such as the Apple Watch and Google Glass," Sun said.

The scientists also connected their capacitor fibers to fibershaped solar cells to create material that could both harvest and store energy. In experiments, these combinationfibers generated 10 volts of electricity when exposed to light — enough to power some types of small electronic devices, they said. Solar cell fibers could also recharge battery fibers in wearable devices, the researchers said.

Putting Fuel Cells Inside the Data Center November 14, 2013 By Linda Hardesty The idea is to bring the power plant inside the datacenter, effectively eliminating energy loss, according to a blog posting by Sean James, senior research program manager at Global

Foundation Services. Microsoft Research and Global Foundation Services are investigating a way to power a datacenter entirely by fuel cells integrated directly into the server 133

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racks. The two organizations have published a research paper “No More Electrical Infrastructure: Towards Fuel Cell Powered Data Centers.”

The paper explains how the researchers would integrate a small generator with the IT hardware and eliminate a lot of complexity of electrical distribution in the grid and the datacenter. Because fuel cells are not limited by the Carnot Cycle Efficiency limit that conventional generators are, they are clean, they fit in small-size applications and they can be deployed within the data center, according to the blog.

The researchers have found that an integrated server rack, combining fuel cells with IT equipment offers these benefits: -Higher power availability through reducing points of failure.

-Lower infrastructure costs by eliminating electrical distribution.

-Improvement in power utilization effectiveness (PUE).

-The ability to create a universal datacenter design.

In current data center energy supply chains, energy undergoes several conversions from chemical, to thermal, to mechanical, to magnetic, to electrical, as well as conversions from alternating current to direct current, resulting in lost energy during these processes.

“In the new datacenter design approach outlined in our paper, chemical energy is first converted to direct current electrochemically and sent a few feet to the server power supply….we are now getting double the efficiency of traditional datacenters,” writes James.

However, the researchers must resolve R&D challenges, including thermal cycling, fuel distribution systems, cell conductivity, power management.

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Alternative & Renewable Energy Renewables Attracted record investment of $329 b in 2015 Posted on January 14, 2016 | By Bloomberg The slump in oil prices that’s brought upheaval and cost-cutting to the traditional energy industry spared renewables such as solar and wind, which raked in a record $329.3 billion of investment last year.

The 4 percent increase in clean energy technology spending from 2014 reflected tumbling prices for photovoltaics and wind turbines as well as a few big financings for offshore wind farms on the drawing board for years, according to research from Bloomberg New Energy Finance released on Thursday.

“These figures are a stunning riposte to all those who expected clean energy investment to stall on falling oil and gas prices,” said Michael Liebreich, founder of the London-based research arm of Bloomberg LP. “They highlight the improving costcompetitiveness of solar and wind power.”

While oil companies such as Exxon Mobil Corp. and Royal Dutch Shell Plc eliminate jobs and curb capital spending to cope with prices that have fallen two-thirds in 18 months, renewables are enjoying a renaissance underpinned by rules designed to curb fossil-fuel emissions damaging the atmosphere.

Fears that low oil prices will continue into 2016 have knocked confidence among oil companies, delaying $380 billion worth of investment in upstream projects, according to analysis by industry consultant Wood Mackenzie Ltd. on Jan. 12. Companies are “going into survival mode” this year with more projects delayed and budgets cut, said Angus Rodger, one of the report’s authors.

Brent crude oil has traded near $30 a barrel this month, down from more than $110 in 2014 as exporters led by Saudi Arabia battled for market share. Coal and natural gas prices have 135

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followed, already pushing a handful of producers into bankruptcy.

While BNEF has said lower prices may hurt funding for efficiency projects and the spread of electric cars, the main clean energy technologies enjoyed record installations in 2015.

Another “strong year” is in store for renewables in 2016, said Angus McCrone, chief editor at BNEF, stopping short of saying another record will be reached. Balancing that is a potential slip in funding for yieldcos, which drew higher investment in 2015, and a clouded outlook for offshore wind in its biggest market.

“There is a lot of uncertainty on how strong U.K. support for offshore wind is going to be,” McCrone said. “It is conditional on costs coming down, and I think that will happen, but it’s hard to say how many will be supported.”

China remained the biggest market for renewables, increasing investment 17 percent to $110.5 billion. That’s almost double the $56 billion invested in the U.S., which was second in the BNEF rankings. The strength of the dollar helped boost the value of investment.

In India, funding for clean energy rose 23 percent to $10.9 billion, and new markets including Mexico, Chile and South Africa attracted tens of billions of dollars. Brazil bucked the trend with a 10 percent drop to $7.5 billion.

“Wind and solar power are now being adopted in many developing countries as a natural and substantial part of the generation mix,” Liebreich said. “They can be produced more cheaply than often high wholesale power prices. They reduce a country’s exposure to expected fossil fuel prices. And above all, they can be built very quickly to meet unfulfilled demand for electricity.”

New wind and solar power accounted for about half of all new generation last year. Around 64 gigawatts of new wind power and 136

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57 gigawatts of new photovoltaics was added, representing an increase of 30 percent from to 2014.

Investment was driven mainly by large-scale projects, including a number of major offshore wind farms. The U.K.’s 580 megawatt Race Bank offshore wind farm was the largest project financed last year, attracting $2.9 billion, followed closely by the $2.3 billion Galloper offshore wind farm, also in the U.K. U.K. Record As a result, the U.K. was by far Europe’s strongest market, despite Prime Minister David Cameron’s effort to roll back incentives for the industry. Renewables investment in the U.K. rose 24 percent to a record $23.4 billion from 2014, according to BNEF. The U.K.’s rooftop solar power market grew to $1.8 billion, putting the U.K. in fourth place for investment in solar installations smaller than one megawatt, behind Japan, the U.S. and China.

Globally, rooftop solar installations like the ones championed by SolarCity Corp. were another big winner, reaping a 12 percent increase to $67.4 billion.

Europe recorded its weakest year since 2006, in part because of slower activity in Germany after the government cut subsidies and revealed plans for a new auctioning system in 2017.

Investment in the continent’s biggest economy fell by 42 percent to $10.6 billion. The continent as a whole suffered an 18 percent drop to $58.5 billion.

IRENA Considers Onshore Wind As Cheap As Coal January 26th, 2016 by Joshua S Hill According to an analyst from the International Renewable Energy Agency, onshore wind has dropped in cost to the level of coalfired production.

Michael Taylor, an energy analyst and renewable energy expert at the International Renewable Energy Agency (IRENA), has 137

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recently analyzed the cost of onshore wind power, and found that it has dropped to the level of coal-fired generation — and that’s even without including the cost of health and environmental effects caused by coal.

“If the environmental and health costs of fossil fuels were properly priced at realistic levels, the situation would be even more favourable for wind,” said Michael Taylor.

According to the new study published by Taylor and IRENA, 1 KWh of electricity produced by an onshore wind farm could cost in the realm of €0.05, and the same amount of electricity produced by an average coal-fired plant is only €0.001 cheaper.

This brings onshore wind to within spitting-distance of coal, and as Taylor hinted at, when the cost of coal’s impact on society is included — i.e., the cost of global warming on countries, health impacts, and other similar impacts — onshore wind makes a strong case for ending the day as cheaper than coal.

Incidentally, gas-fired electricity generation did better than both, coming in at €0.041/KWh. However, what is most interesting from this study, is that this sudden drop in onshore wind’s cost compared to that of fossil fuels has happened so quickly, society hasn’t followed the news.

“Renewable power generation technologies can now provide electricity at very competitive levels,” Taylor said. “Yet despite these facts, many of the world’s decision-makers have yet to grasp how competitive renewables have become. Often, vested interests lead to propagation of the myth of ‘costly’ renewable energy. In other cases, the change has simply come so fast, and so unexpectedly, that public information has yet to catch up.”

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Between 1988 and 2014, the levelized cost of onshore windgenerated electricity has dropped by 65%, thanks in large part to the growth of the industry which has allowed the economics of scale and maturation of technology to drop the cost.

IRENA data provided courtesy of The Institution of Engineering and Technology Northern Ireland wind energy 'cheaper than gas generation' by 2020 GENERATING power through onshore wind farms will be cheaper than through new gas projects by 2020, according to a leading lobby group.

But the Northern Ireland Renewable Industry Group (NIRIG) said that would only be possible through if "appropriate policy and regulatory conditions" were in place.

The body is holding its annual conference in Belfast today.

It is using the occasion to call for certainty over the north's energy policy which it said is "vital to future opportunities" for renewables.

Wind energy satisfied 20 per cent of the north's electricity needs in 2015.

And it reached a new record of 583MW on June 1 last year, providing 48 per cent of Northern Ireland's electricity.

Doubt has been cast over future projects with changes in how they are incentivised.

The north's scheme for subsidising wind energy projects is due to close in April, a year earlier than planned but in line with the closure of the UK-wide initiative.

The decision has faced opposition, especially from farmers, many of whom had applied to erect single turbines in an effort to avail of the blanket payments on offer.

Stormont energy minister Jonathan Bell said he had hoped to keep the scheme open but had his hands tied by his counterparts in Britain.

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Speaking ahead of today's conference, NIRIG chairwoman Rachel Anderson called for "agreement and coordination between the NI executive and UK government about the direction of energy policy and the role of wind energy in helping cut consumer bills and power our economy".

She said the typical wind farm garnered £1.18m investment per MW into the economy over its lifetime.

"The challenge for policy makers and the industry is to move to ensure that Northern Ireland’s wind energy resource can continue to act as a catalyst for jobs and investment for the future, while also cutting harmful emissions," she said.

“We are committed to ensuring that benefits continue to flow into the local economy. Today more than ever, you can stand at the base of a turbine in Northern Ireland, and be confident that significant investment flows back into the regional economy.

"It is vital for the future prosperity of Northern Ireland that renewables, particularly onshore wind continues to flourish from now to 2020 and beyond.”

Meanwhile Neasa Quigley, head of the energy team at Carson McDowell Solicitors, said the sector was at risk of stalling over obstacles to further development.

She said "obstacles outside of developers’ control are now putting the industry on hold at a time when it should be pushing forward".

“The Northern Ireland government has set clear goals about the amount of electricity it wants to generate from renewable sources by 2020.

"NIE has said it cannot meet the current demand for capacity for network connections from wind, solar and other renewable energy sources but if it can’t accept these applications, then those targets simply won’t be met,” she said.

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The NIRIG conference is taking place today at the Hilton Hotel in Belfast.

The Changing Face of HVAC Motor Control January 29, 2016 By Carl Weinschenk

The drive toward energy efficiency is changing just about everything a facility manager has to track – including HVAC motor controls.

The use of variable frequency drives (VFDs) to control motors are a common approach to powering HVAC systems. A VFD, according to VFD.com, is a motor controller that uses frequency and voltage to adjust the speed of the unit.

The overall VFD market – which goes far beyond HVAC – is changing and growing rapidly. Technavio predicts that the sector, which is taking market share from mechanical and hydraulic motors – will experience a compound an annual growth rate 141

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(CAGR) of 8 percent through 2020. Another report – this one released earlier this month by Frost & Sullivan – suggested that the evolution is dramatic: Homeowners and end users from the construction and commercial verticals are increasingly seeking out technologically innovative solutions as replacement products. Consequently, HVAC equipment suppliers are diversifying their portfolios with respect to system design and technology.

The design changes were discussed this week by McGuire Engineering’s John Yoon at Consulting-Specifying Engineer.

Yoon’s piece is a highly technical. The bottom line, however, is that facility managers – or the on-staff or outside people who advise them on difficult engineering-based buying decisions – should not understand these changes.

The move to energy efficient operations is made real by legislators and regulators in changes to codes and standards.

Those who are charged with designing and installing HVAC systems should keep abreast of these changes. Writes Yoon: Design engineers are often caught off guard by energy-code changes. In many cases, the changes seem to add unjustified expense and complexity to HVAC systems that worked fine before. While engineers usually focus on specific aspects of designs, there is a need to take a step back to get a broader perspective on the external influences that will continue to push the designs toward increased energy efficiency.

The world of HVAC motors is not a simple one.

There are several concerns, according to Dave Morse, the Director of Sales and Operations for Delta Product’s Industrial Automation Group. “Some systems may use variable speed blowers or constant speed blowers with variable dampers,” he told Energy Manager Today. “Many HVAC systems use Induction motors, yet others are using Electrically Commutated Motors (ECM) with embedded controls. There are also needs for Plenum rating for use in the duct, or special features such as Purge mode and BACnet communication. To help make the facility managers workload easier, it is always better to find a VFD that incorporates many of these features into one drive.”

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The details are, of course, quite complex. At the highest level, however, the basic point is simple: People in charge of HVAC systems must educate themselves.

Yoon provides the overview on how things are changing over time. Within that context, there have been several announcements during the past few weeks on HVAC power and related issues.

• Delta used the Air Conditioning, Heating and Refrigeration Expo at the Orange County Convention Center in Orlando to introduce the NEMA 1 stacked bypass system. The company said in a press release before the show that the device is designed for drop-in HVAC applications. It offers the capabilities of the company’s CP2000 series VFDs, hand-offauto switch capabilities and other features.

• EC Fans & Drives, which is a division of Epec Engineered Technologies, used the same show tointroduce the EConomy and the EXRi50 motors. The motors, the press release says, have finished six-month beta tests with several companies. The EXRi50 has a slim profile that can be deploy in areas too small for many current motors. The EConomy is a single speed, single direction entry level motor with an output power of 1 to 16 watts. The EXRi50 is a single speed, single direct motor with EC fan assembly. It is available as a fan pack with an integrated fan ring.

• While not a motor itself, Fluke’s new 902 FC True-rms HVAC Clamp Meter tests HVAC systems, which is deeply related to motors and their operation. The press release says that the meter is rated for CAT III and CAT IV (600V and 300 volts, respectively) and performs what the release calls all the essential measurement of an HVAC system. The 902 FC can send measurements to a mobile device for subsequent analysis.

Energy efficiency is a goal and a high level concept. At the end of the day, it only becomes real when it codified and companies produce gear that fulfill those mandates. That seems to be happening in the realm of HVAC powering.

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HSE, Climate Change & Sustainability HSE Deficiency found in ExxonMobil California Refinery Fuelfix, Jan 15, 2016 REDONDO BEACH, Calif. (AP) — An explosion at an ExxonMobil oil refinery in California last year could have been prevented if managers had taken into account aging safety equipment and shut down a key, spark-generating part of the refinery before attempting repairs elsewhere, federal investigators said Wednesday.

The unit being repaired had operated for five years without a maintenance overhaul and, as a result, a key valve failed and leaked volatile hydrocarbons into an electrostatic chamber where the material combusted, the U.S. Chemical Safety and Hazard Investigation Board said.

The resulting fireball injured four contractors, destroyed a large part of the refinery and sent a fine white ash raining down on nearby homes and cars.

The explosion could have been much worse, said Chairwoman Vanessa Allen Sutherland.

The blast also shook nearby homes and tossed an 80,000-pound piece of equipment within feet of another unit where tens of thousands of pounds of a highly volatile and toxic substance called modified hydrofluoric acid, or HF, are stored in tanks.

The blast knocked over a column that contained a laser sensor dedicated to detecting a leak of the acid, investigators said.

“What we definitely believe is that this was a serious near-miss incident,” Sutherland said. “That amount of HF — or even a portion of the HF — had the potential to vaporize and cause some injury.”

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The lack of layered safety precautions mirrors the cause of a 2012 fire at a Chevron refinery in Richmond, California, that sent more than 15,000 residents to the hospital and endangered 19 workers, the agency said.

Exxon disputes the findings in the 2015 blast and has stringent safety rules, said Todd Spitler, an Exxon spokesman. An internal review of the incident found no protocols were violated, he said. “ExxonMobil stands on its record of good faith compliance with all agencies, including the chemical safety board, and we look forward to hearing their perspectives on the incident and reviewing the preliminary report,� Spitler said in a statement Tuesday night before the news conference by investigators.

Exxon has refused to provide federal investigators with nearly half of the documents they requested for the preliminary probe, specifically those related to the acid, Sutherland said.

Exxon maintains that the federal agency, which serves a watchdog role and has no regulatory authority, does not have jurisdiction to investigate anything but the cause of the blast itself, she added.

The Department of Justice will help the investigative agency enforce subpoenas to get the files, she said.

ExxonMobil sold the refinery to New Jersey-based PBF Energy Inc. in September. Continued repairs have delayed the closing of the deal.

California workplace regulators issued $566,000 in fines last summer for health and safety violations related to the blast. The plant is located in a densely populated area of the city of Torrance, about 20 miles southwest of Los Angeles.

The fluid catalytic cracker unit where the blast occurred is critical to producing California-grade fuel.

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The special blend means the state typically has the highest gas prices in the U.S. Exxon is appealing Cal OHSA’s findings.

Federal investigators agreed that serious safety deficiencies led to the blast that occurred when Exxon shut down the fluid catalytic cracker unit to do repairs.

With the unit down, Exxon pumped steam in to prevent hydrocarbon gas from seeping out, but workers complained about the steam and so the volume being pumped was reduced, said Mark Wingard, the board’s investigator-in-charge.

The reduction was in line with a similar repair plan used in 2012, but aging equipment changed the scenario and Exxon did not test to make sure the lesser steam pressure was still sufficient to prevent a leak.

A valve that had not been checked in five years failed and allowed the hydrocarbons to seep through the system until they reached an electrostatic precipitator, where a spark ignited the gas and caused the explosion.

If Exxon had shut down the electrostatic precipitator, the accident never would have happened, Wingard said. In addition, investigators found five or six pieces of equipment — including the faulty valve — that failed because they had not been maintained, he said.

A full maintenance overhaul was due in June, four months later.

Exxon managers also failed to talk to workers who knew the valve was faulty, said Don Holmstrom, western regional director of the chemical safety board based in Denver.

Two other recent incidents at the Torrance plant have frayed nerves.

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caused a large steam cloud above the refinery as sirens urged residents to shelter in place.

ExxonMobil said it was mostly steam that leaked. A state investigation is pending.

The refinery on 750 acres produces 1.8 billion gallons of gasoline a year, which accounts for about 8.3 percent of the state’s total refining capacity.

California calls gas leak a state of emergency Jan. 6, 2016, SAN FRANCISCO (AP) — The latest on a natural gas leak in a Los Angeles neighborhood (all times local): 1:35 p.m.

California Gov. Jerry Brown has declared a state of emergency over a massive natural-gas leak that has been spewing fumes into a Los Angeles neighbourhood for months.

Brown said Wednesday that he acted based on the requests of local residents in the community of Porter Ranch and the "prolonged and continuing" nature of the gas blowout at the underground storage facility.

The leak is gushing huge amounts of methane daily, leading thousands of families to request relocation and two nearby schools to send away their students.

A well at the Aliso Canyon gas field owned by Southern California Gas Co. blew out in October.

FACTS AT YOUR FINGERTIPS: PROCESS HAZARDS ANALYSIS METHODS

By Chemical Engineering | January 1, 2016 Different methodologies are available for conducting the structured reviews known as process hazards analyses (PHAs) for new processes. PHAs are often conducted or moderated by 147

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specialists, with participation by the design team, representatives of the facility owner, and experienced process operators.

Each different PHA method is better-suited to a specific purpose and should be applied at different stages of the project development. The table below includes brief descriptions of some of the most widely used PHA methods in the chemical process industries (CPI).

WHEN TO USE DIFFERENT METHODS Different types of PHA studies have varying impact, depending on the design phase in which they are applied. For example, if a consequence analysis is not performed in a conceptual or preFEED (front-end engineering and design) phase, important plotplan considerations can be missed, such as the need to own more land to avoid effects on public spaces; or the fact that the location might have a different elevation with respect to sealevel than surrounding public places impacted by a flare plume.

Some other studies, like HAZOP, cannot be developed without a control philosophy or piping and instrumentation diagrams (P&IDs), and are performed at the end of the FEED stage or at the end of the detailed engineering phase (or for improved results, at the end of both) to define and validate the location of pressure safety valves (PSVs) as well as to validate other process controls and instrument safety requirements.

QRA or LOPA evaluations (or both) are undertaken after the HAZOP study to validate siting and define safety integrity levels (SIL), to finally meet the level required by the plant.

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Oil & Gas Firms Under-Reporting Methane Risk, EDF Says Karen Henry, Jan 12,2016 Leading oil and gas companies are failing to adequately disclose meaningful information on emissions of methane, according to a new report by the Environmental Defense Fund.

The report, Rising Risk: Improving Methane Disclosure in the Oil and Gas Sector, examines the current state of voluntary reporting on methane in the US oil and gas sector. The report found that none of the 65 market leaders reviewed in the production and midstream segments disclose targets to reduce methane emissions and less than a third report such emissions via accessible, investor-facing data sources. The data, which is publicly disclosed through sources like CDP questionnaires, corporate sustainability/CSR reports and 10-K filings, is generally low quality and lacks rigorous and standardized metrics, making comparisons among operators difficult, EDF says.

The report provides a number of recommendations to improve methane disclosure centered around four key methane metrics that aim to bring a level of standardization and quantitative rigor to methane reporting. Operator and disclosure platform adoption of these metrics will help give investors much-needed information to properly assess risk from methane.

The oil and gas industry releases seven million tons of methane annually in the United States alone, according to the EPA. Methane emissions from the oil and gas sector are increasingly viewed as a financially material issue for companies, and by extension, their investors. A 2015 study by the Rhodium Group found that the sector loses $30 billion globally each year from leaked or vented methane at oil and gas facilities.

The massive methane leak currently under way at the Aliso Canyon storage facility in California, for example, has cost $50 150

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million for mitigation of environmental and community impacts, over $12 million in lost product to date and reputational damage.

Read more: http://www.environmentalleader.com/2016/01/12/oiland-gas-firms-under-reporting-methane-risk-edfsays/#ixzz3x93fi5bP Charging a Smartphone While Driving Isn't as Free as You Think Jeff Green JeffAGreen January 12, 2016, Bloomberg • Handsets plugged into car ports cut mileage, boost pollution • It also costs 33 times more than using outlets at home It’s not just using a handheld phone while driving that’s a menace to society. It turns out that charging it in the car has consequences too.

That’s because a phone drawing electricity from a USB port cuts 0.03 miles from each gallon of gasoline in a tank. Across the fleet of vehicles in the U.S., that would mean about 970,000 tons of extra planet-warming carbon dioxide a year, according to calculations by Jon Bereisa, a retired General Motors Co. engineering executive who studies vehicle power usage. With a race under way to see how many charging ports automakers can cram into a car, the increased pollution is only going to get worse.

“Do I think we’re at peak USB? No,” said Mary Gustanski, vice president of engineering and program management at Delphi Automotive Plc, which makes wiring and USB ports for vehicles.

“We’ll get more and more creative to not only allow you to 151

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connect with USB but also to connect wireless. Consumers want their car to be just like their home.”

It’s not just an environmental issue, either. The proliferation of consumer devices, the growth of dashboard touch screens and other technology, and the shrinking size of engines to meet fueleconomy mandates mean the 12-volt automobile electrical system is just about tapped out. Some automakers are already turning to supplemental 48-volt systems in future models.

Port Proliferation The number of vehicles sold in the U.S. with USB charge ports rose to about 14.6 million last year from about 3.3 million in 2005, the first year they were available, and is projected to climb to 16.7 million by 2022, according to a forecast from the consulting firm IHS. Global sales of vehicles with USB ports will increase to 85 million in 2022 from about 49 million last year, IHS said.

That estimate doesn’t capture how many ports are in a particular vehicle. For example, the new Chrysler Pacifica minivan, which goes on sale later this year, will have nine USB charging points, the most of any automobile, said Bruce Velisek, director of Chrysler brand product marketing. The model it replaces has four charging points, he said.

To make his calculation, Bereisa assumed that a typical smartphone connected to WiFi or the Internet needs about 4.8 watts of energy to charge in a car. (Delphi estimates that some less-efficient models draw twice that amount.) For a vehicle getting about 30 miles per gallon, that’s a 0.03 mpg loss, he said.

Spread out across about 3 trillion road miles motorists drive each year in the U.S. -- assuming an average speed of 30 mph -- the estimated extra usage is 100 million gallons of gasoline, or about $200 million in costs, said Bereisa, the chief executive officer of Auto Electrification LLC in Sunrise Beach, Missouri.

Home Charging The estimated extra CO2 created by plugging in one phone in every car in the U.S. would be about the same as that produced 152

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by 185,257 passenger vehicles in one year, according to an Environmental Protection Agency website that converts greenhouse gas into real-world equivalents. Put another way, that’s the pollution created by burning 945 million pounds of coal.

By far, the cheapest way to charge a smartphone is at home, Bereisa said. With gasoline at $2 a gallon, it costs about 2 cents an hour to charge a phone in a car compared with about 0.06 cent at home, or 33 times less. Gasoline would have to fall to 6 cents a gallon to compete with home electricity, he said. It would also produce about half the carbon dioxide.

“That’s why modern electricity power plants are not driven by gasoline engine generators,” said Bereisa, who worked on the EV-1 and Volt electric-vehicle programs and fuel-cell models during his 35 years at GM. “We go through life without realizing how important energy is to everything we do, and the consequences of our energy consumption. We grow up entitled to just plug it in or flip the switch or push start -- with no idea of what’s behind it all.

Is Recycled Oilfield Water Safe for Crop Irrigation?

Jan 19,2016 Environmental Leader Some 50,000 acre feet of recycled oilfield wastewater is used to irrigate about 90,000 acres of crops in California’s Central Valley, one of the world’s most productive agricultural regions.

But is this produced water safe for use on food crops? A newly formed panel aims to answer this question.

“There appears to be a data gap here,” the Central Valley Water Board’s Clay Rodgers, project supervisor of the Food Safety/Oil Field Produced Water project team, told Environmental Leader.

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produced water for crop irrigation and that’s the reason we brought in food safety experts.”

As farmers in drought-stricken California look for alternative water sources for their crops, a $54 billion industry, recycled oilfield wastewater has become an attractive source. In 2013, about 150 million barrels of oil were produced in the state, along with nearly 2 billion barrels of water. While the bulk of this water (878 million barrels) is recycled for use in the oil fields, a portion of the produced water is recycled to irrigate crops for human consumption.

At least five oil fields in the state provide recycled water to irrigate crops including almonds, grapes, pistachios and citrus.

Chevron and the California offshoot of Occidental Petroleum, called California Resources Corporation, are the primary oil companies supplying oilfield wastewater to farmers.

There’s a desire to increase use of produced water for irrigation — and also concern about oilfield wastewater, and whether it contains chemicals and other harmful substances.

Assuming it’s safe, recycled water is a boon for agriculture.

“For the Central Valley, what we need to look for is how can we diversify our water supply and that often means looking at more local and recycled water in all forms. Oilfield water is just one potential source of water that could be used for irrigation,” the Almond Board of California’s Dr. Gabriele Ludwig told Environmental Leader. Ludwig sits on the new food safety panel.

Ludwig says there are two concerns with using alternative sources of water for irrigation. “One, from the safety perspective, is making sure there is nothing harmful that can get into the food supply, and that’s an issue that has been controversial in terms of using urban recycled water. The other concern is the plant itself.

There are only certain compounds the plants can handle. So those are examples that need to be addressed.”

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In December, the Pacific Institute, a nonprofit that studies water issues, published a study, Oil, Food, and Water: Challenges and Opportunities for California Agriculture, that, among other things, looked at the reuse of oilfield water for crop irrigation.

“There is an opportunity to expand the recycling of oil-field wastewater for ‘beneficial uses,’ such as for crop irrigation or livestock watering,” the study said. “However, the health and food safety impacts of this practice are poorly understood…Scientists should conduct a study to determine what level, if any, of chemicals in oil-field wastes is safe for farmworkers, animals, and consumers. Such a study should be performed by an independent science panel, and would help to reduce the uncertainties around the safety of this practice.”

The Central Valley Water Board’s first Food Safety/Oil Field Produced Water panel met last week. Panel members include experts from the California Department of Food and Agriculture, California Department of Fish and Wildlife, California Department of Public Health and Lawrence Berkeley National Laboratory.

Pacific Institute researcher Matthew Heberger presented the nonprofit’s study at the meeting.

“We are concerned about the health and safety of the people who live and work near oil and gas production,” Heberger told Environmental Leader. “We are especially concerned about farmworkers. Oilfield wastewater can contain volatile chemicals such as benzene and toluene that are known to have health impacts, and Central Valley residents that we spoke to cited this as a concern.

“We are obviously also concerned about the safety of our food supply. We need to take a more careful look at projects where oilfield wastewater is treated and sent to irrigators to make sure that the practice is safe. The bigger concern for me is pollution due to spills, leaks, or unsafe disposal of oil-field wastes that can contaminate the soil and water resources used by agriculture.”

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The panel aims to produce a white paper, or a series of white papers, that addresses the safety of using recycled oilfield water for crop irrigation. Rogers says he hopes the white paper will be ready by the end of summer but acknowledges, “Obviously this is an issue of critical importance to us. We want to get through it as quickly as we can but we also want to makes sure we do the things we need to do. If it takes longer to do it right, we’ll take more time.”

Zika-linked condition: WHO declares global emergency

By Michelle RobertsHealth editor, BBC News online

A disease linked to the Zika virus in Latin America poses a global public health emergency requiring a united response, says the World Health Organization.

Experts are worried that the virus is spreading far and fast, with devastating consequences.

The infection has been linked to cases of microcephaly, in which babies are born with underdeveloped brains.

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The WHO alert puts Zika in the same category of concern as Ebola.

It means research and aid will be fast-tracked to tackle the infection.

There have been around 4,000 reported cases of microcephaly in Brazil alone since October.

WHO director general, Margaret Chan called Zika an "extraordinary event" that needed a co-ordinated response.

"I am now declaring that the recent cluster of microcephaly and other neurological abnormalities reported in Latin America following a similar cluster in French Polynesia in 2014 constitutes a public health emergency of international concern."

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Media caption WHO director general, Margaret Chan declares an international public health emergency She said the priorities were to protect pregnant women and their babies from harm and to control the mosquitoes that are spreading the virus.

She advised pregnant women:  to consider delaying travel to areas affected by Zika  seek advice from their physician if they are living in areas affected by Zika, as well as protect themselves against mosquito bites by wearing repellent Dr Chan justified declaring an emergency even amid uncertainties about the disease, saying it was time to take action.

The WHO faced heavy criticism for waiting too long to declare the Ebola outbreak a public emergency.

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Stopping Zika Currently, there is no vaccine or medication to stop Zika. The only way to avoid catching it is to avoid getting bitten by the Aedes mosquitoes that transmit the infection.

The WHO has already warned that Zika is likely to "spread explosively" across nearly all of the Americas. More than 20 countries, including Brazil, are reporting cases.

Most infections are mild and cause few or no symptoms, although there have been some reported cases of a rare paralysis disorder called Guillain-Barre syndrome.

The bigger health threat though is believed to be in pregnancy, to the unborn child.

Dr Jeremy Farrar, Director of the Wellcome Trust, said: "There is a long road ahead. As with Ebola, Zika has once again exposed the world's vulnerability to emerging infectious diseases and the devastation they can unleash. Alongside the emergency response that Zika necessitates, we must put in place the permanent reforms, health systems strengthening and proactive research agenda that are needed to make the global health system more resilient to the threat of future pandemics."

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More on the Zika crisis: What you need to know Key questions answered about the virus and its spread Travel advice Countries affected and what you should do The mosquito behind spread of virus What we know about the mosquito involved Abortion dilemma Laws and practices in Catholic Latin America Media reflect fears over virus Press in Latin America ask searching questions

Are you worried about the Zika virus? Have you planned to travel to areas where there have been cases of the virus?

Email your stories tohaveyoursay@bbc.co.uk.

Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:  

WhatsApp: +44 7525 900971 Tweet: @BBC_HaveYourSay 159

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

Text an SMS or MMS to 61124 (UK) or +44 7624 800 100 (international)

Climate Change How Engineers Can Adapt Infrastructure Design for a Changing Climate Winn Hardin, 03 December 2015

Mud flows on Oct. 15, 2015 shut a 30-mile stretch of I-5. Image source: Getty Images via Univ. of Arkansas Now in its fourth year of severe drought, California is juggling with knives. Groundwater levels are falling. Seawater intrusion threatens drinking water supplies. Sinking land and erosion expose structural vulnerabilities. But drought alone does not cause infrastructure failure. Factor in heavy rainfalls or an earthquake, and that precarious knife-juggling act could result in some serious consequences.

(Read “Hardening the Infrastructure: Flood Management Controls.”)

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California officials have put in place mandatory water restrictions and groundwater supplies are being recharged with clean-treated wastewater in southern parts of the state, but these efforts represent the proverbial drop in a bucket in mitigating drought risk and its impact on infrastructure.

The state’s volatile situation illustrates the challenges confronting civil engineers when planning infrastructure for drought and other extremes in the face of a changing climate. The primary challenge to the engineering community is developing strategies for the uncertainty that comes with projecting future climate conditions.

Cracks in the Facade Prolonged periods of drought pose many threats, perhaps the biggest of which is the stability of levee systems. Droughts produce a series of weakening mechanisms that negatively impact the integrity of such earthen structures.

A leading source of stress on levees is land subsidence. Drought leads to increased extraction of groundwater from aquifers, which creates subsurface movement. Over time the land sinks or subsides.

FarshidVahedifard, Mississippi State UniversityExtensive groundwater pumping has exacerbated existing land subsidence in parts of the state, especially the Delta, says FarshidVahedifard, an assistant professor at Mississippi State University. The geotechnical engineering specialist researches climate change and its impact on critical infrastructure performance. A climbing 161

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rate of soil organic carbon (SOC) decomposition due to drought also is contributing to land subsidence in the Delta.

Recent results from a monitoring program revealed that droughtaccelerated land subsidence has reached as much as 2 inches per month in some places, several times greater than pre-drought subsidence rates.

Additional drought-induced stressors on levees include soil strength reduction, desiccation cracking, erosion, fissuring and soil softening, and increased SOC oxidation. In California, such conditions compound the stresses on levee systems that already are endangered, says Vahedifard.

High Hazard The California Department of Water Resources evaluated the state’s levees in 2011 before the start of the current drought. The agency classified 51% and 55% of urban and non-urban levies, respectively, as high hazard. The designation indicates that levees are in danger of failing during an earthquake or flood.

The study results imply that functionality of the aging structures “will continue to decrease unless strategic actions are taken to implement some level of maintenance and rehabilitation approaches,” Vahedifard says.

That could spell disaster for the 13,000-plus miles of levees and their various functions should heavy rainfall or storm surges occur, a phenomenon that is not uncommon at the end of a drought. The Delta, for example, directs drinking water to 23 million people and irrigation water for several million acres of agriculture. Levees throughout most of the Delta downstream of Sacramento primarily protect land at or below sea level and often serve to hold water back.

Catastrophic failure of these non-urban levees could inundate land that has subsided below sea level “drawing in seawater and consequently contaminating the water supply,” Vahedifard says.

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In comparison to the Delta’s levees, urban levees protect densely populated areas in the Central Valley and Northern California from flooding. According to Vahedifard, desiccation cracking “can be of greater consequence for the integrity of these intermittently loaded levees that may become completely dry during drought.”

Effects on Related infrastructure Drought conditions impact more than levees. They can threaten any infrastructure interfacing with soil, including slopes, embankments, roads, bridges, building foundations and pipelines.

Vincent Lee, ArupLand subsidence, for instance, puts utility connections at risk as buildings sink, says Vincent Lee, associate principal at the international engineering firm Arup. Canals and sewers are examples of utility conduits that require gravity to enable them to function properly, Lee says. “Sewer or drainage pipes tilting in the wrong direction would result in conveyance issues as water can’t flow uphill,” he says.

In California, two recent events demonstrate what heavy rains do to drought-stricken, soil-related infrastructure. An intense October storm with hail unleashed 300,000 cubic yards of mud and debris onto Interstate 5 and surrounding roadways north of Los Angeles.

The mudslide trapped a few hundred vehicles.

In July, a bridge collapsed on Interstate 10 in the California desert between Los Angeles and Phoenix after flash flooding eroded the ground beneath the bridge supports. Repair of that magnitude can typically take 18 months; design engineers and construction crews finished the work in two months for $5 million.

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To further complicate matters, the El Niño weather phenomenon is expected to hit California in early 2016 with the possibility of heavy rainfall and storm surges, adding stress to already vulnerable infrastructure.

In addition to heavy rain, extreme heat often accompanies drought. In the Southwest U.S. and Texas, extreme heat has caused railroad rails to bend, Arup’s Lee says. This increases the risk of train derailments. Meanwhile, decreasing water levels in rivers, channels and waterways can impact shipping and transportation routes. Power plants that rely on water for cooling may have to decrease their generation output or experience shutdowns. Low water levels on the Missouri River a decade ago impacted power generation across the Midwest.

Designing for Uncertainty California’s drought-plagued infrastructure serves as a microcosm of the challenges that civil engineers face when adapting and designing critical infrastructure to be resilient to a changing climate.

Bilal Ayyub, University of MarylandEngineers typically plan and design infrastructure according to historic weather records. With the changing climate, however, “the assumption that things are random but the same — that is, they are stationary — might not be valid,” says Bilal Ayyub, professor of civil and environmental engineering and the director of the Center for Technology and Systems Management at the University of Maryland. “We are 164

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dealing with a higher level of uncertainty in predicting extreme conditions compared to what we have done in the past.”

That uncertainty relates to the location, timing and magnitude of the changes over the lifetime of infrastructure. To help engineers navigate these unknowns, the American Society of Civil Engineers (ASCE) produced the white paper “Adapting Infrastructure and Civil Engineering Practice to a Changing Climate.”

Written by ASCE’s Committee on Adaptation to a Changing Climate, the paper identifies three types of information engineers need to effectively address climate change impacts: actionoriented knowledge, fundamental knowledge and analytical tools.

Civil engineers require action-oriented climate change information that characterizes climate projections over the next few decades.

Also necessary is understanding interdependencies within and between the various components of civil infrastructure.

Fundamental knowledge involves re-examining many civil engineering design standards and performance metrics. That means everything from identifying limits in current designs and materials for extreme loads to evaluating the effects of changing demands on infrastructure vulnerabilities.

Analytical methods are necessary to integrate variance into planning and design, measure the effectiveness of infrastructure adaptation and define and evaluate the economic implications of infrastructure vulnerabilities.

Ayyub also points out that designing with climate change in mind necessitates a risk-management strategy that allows a system to be updated as conditions change. This framework includes monitoring various infrastructure components with sensors to detect early warnings of stress, says Ayyub, a lead author on the ASCE paper. Performance data collected over the years can yield insights into a system’s performance under changing conditions.

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In addition to the paper, ASCE’s Infrastructure Resilience Division generated a list of potential initiatives this past summer that address how to implement resilience concepts for infrastructure into civil engineering practice.

Amir AghaKouchak, University of California at IrvineOne roadblock awaiting engineers is that the codes used to design infrastructure don’t necessarily consider drought. “When the engineering community built all of this infrastructure in the 1940s and ’50s, potential impacts of droughts were unknown,” says Amir AghaKouchak, a hydrologist and assistant professor at the University of California, Irvine.

Updating the codes is a complicated process that requires research not only to understand the mechanisms but also develop methods and frameworks to factor drought conditions into designs.

“There are infinitely potential ways to make a structure stable, but those ideas should be explored and calculated by the greater scientific community,” AghaKouchak says.

Putting Infrastructure to the Test Research, development and demonstration will help civil engineers address the impact of climate change on the infrastructure they design. In his work on quantitatively assessing the resilience and vulnerability of critical infrastructure to extreme events under a changing climate, Mississippi State’s Vahedifard is collaborating with hydrologists and climate scientists to bridge the gap between climate science and engineering practice.

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One part of his research assesses the thermo-hydro-mechanical impacts of climate change on the performance of and soilstructure interaction in critical earth structures. In another part, Vahedifard and his colleagues are working to develop tangible design and risk management approaches for critical infrastructure.

The research team currently is evaluating the effects of California’s drought on soil strength and the structural integrity of the state’s levee systems, as well as the effects of increased rainfall intensity on landslide activities in Seattle, Wash.

At UC Irvine’s Center for Hydrology & Remote Sensing, AghaKouchak has developed the Global Integrated Drought Monitoring and Prediction System (GIDMaPS). The system relies on NASA data products to generate meteorological, agricultural and agro-meteorological drought information. AghaKouchak and his team will soon unveil a fourth category based on relative humidity. He expects that to help detect drought onset earlier than other indicators.

Used for seasonal analysis, the statistical drought prediction model estimates how drought will change in the next 4 to 6 months. “We don’t go any farther out into the future because drought prediction is very challenging,” AghaKouchak says. He and the other researchers also are developing a Californiaspecific model.

Solutions for a more resilient infrastructure are starting to emerge outside the lab. “We need a systematic approach and understanding of how one system affects another,” Lee says.

“Engineering solutions need to be tied to an elegant and integrated design.”

Lee cites the proposed reconfiguration of the 51-mile Los Angeles River corridor. Project planners and engineers seek to integrate design and infrastructure for a “more aesthetic solution that 167

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benefits the community while still functioning from an engineering standpoint,” Lee says.

The Los Angeles River Revitalization Corp. has commissioned architect Frank Gehry and a team of experts to analyze data and recommend river interventions and capital improvements “based on design storm impacts and process methodology.”

The initial study, which involves public engagement, will address factors such as flood management, infrastructure resilience, recreation and quality of life. Lee says that public engagement in this and other infrastructure projects is critical. After all, “many communities may have to transform significantly as climate change risks increase.”

To contact the author of this article, email engineering360editors@ihs.com PROGRESS TO LIMIT CLIMATE CHANGE

By Chemical Engineering | January 1, 2016 Last month, delegates from 195 countries converged on Paris, France for the 21st Conference of the Parties (COP21; November 30 – December 12) to the United Nations Framework Convention on Climate Change (UNFCCC). The goal of COP21 was to reach an international agreement on how to limit global warming by reducing or eliminating the emissions of greenhouse gases (GHGs). After all-night deliberations, the UNFCCC agreement — to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels — was adopted by all parties on December 12.

THE BUILDUP TO COP21 Already by last October, 120 countries had submitted to the U.N. their Intended Nationally Determined Contributions (INDCs), which are their national targets for reducing GHGs. The U.S., for example, intends to achieve “an economy-wide target of reducing its GHG emissions by 26–28% below its 2005 level in 2025, and 168

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to make best efforts to reduce its emissions by 28%.” The target covers all GHGs in the 2014 Inventory of the U.S. GHG Emissions and Sinks: CO2, CH4, N2O, perfluorocarbons (PFCs), hydrofluorocarbons (HFCs) SF6 and NF3. Similar INDCs were issued by: Japan (26% reduction of GHGs by 2030 compared to 2013 (25.4% reduction compared to 2005); Canada (30% reduction of GHG emissions below 2005 levels by 2030); and Australia (26–28% below 2005 levels by 2030). China pledged to peak emissions by 2030 and increase its share of non-fossil fuels in primary energy consumption to around 20%. The E.U. aims for at least 40% domestic reduction in GHG emissions by 2030 compared to 1990.

Achieving such targets will require the efforts and expenditures across all sectors of the chemical process industries (CPI): oiland-gas (CO2 and CH4), petroleum refining (CH4and CO2), chemicals (CO2, CH4, N2O), power generation and transmission (CO2, PFCs), semiconductor fabrication (SF6 and NF3), as well as iron, steel and cement making (CO2). Consumers, too, will ultimately feel the effects on their pocketbooks, with higher costs for electricity, more fuel-efficient transportation, and “greener” buildings. The priority areas listed by the parties submitting INDCs is shown in Figure 1.

Figure 1. Renewable energies and energy efficiency were priorities for the majority of countries’ Intended Nationally Determined Contributions INDCs; source: http//unfccc.int/files/adaption/application/pdf/all_p arties_indc.pdf) 169

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In the buildup to COP21, The Institute of Chemical Engineers (IChemE; Rugby, U.K.; www.icheme.org) Energy Center Board issued a statement (December 2) that outlines five priority topics for the climate talks: energy efficiency; energy storage and grid management; carbon capture, storage (CCS) and utilization; nuclear energy; and sustainable bioenergy. “The technologies exist now to deliver massive energy savings and GHG emissions reductions in all five priority areas. Taken together, they represent a pathway to a decarbonized energy system that can be realized now, as long as the agreement made at COP21 recognizes that the time has come for deployment of such technologies” (emphasis IChemE’s).

“Chemical engineers already understand the technology needed to limit atmospheric CO2 levels. Now is the time to start using it, says professor Stefaan Simons, chair of IChemE’s Energy Center. “World leaders can shift the focus from research and development (R&D) to demonstration and deployment. We can give policy makers the solutions needed to mitigate climate change,” he says.

This position was supported by U.N. Secretary General, Ban KiMoon during COP21, who said The solutions to climate change are on the table. They are ours for the taking. Let us have the courage to grasp them.

PROGRESS IN CCS Because fossil-fuel-based power generation represents the largest source of CO2emissions around the world, most experts and authorities agree that CCS will be required to prevent global temperatures from exceeding safe levels. However, two main challenges to widespread deployment of CCS technologies in the power sector are the need to bring down the cost to a level that sustains competition with low-carbon technologies and to establish plant sites where CO2 storage is available and economic, according to the 2015 World Energy Outlook Special Report: Energy and Climate Change, published last October by the International Energy Agency (Paris, France; www.iea.org).

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challenges, as well as increasing the acceptance of the technology.

Last September, the U.S. Department of Energy’s (DOE) National Energy Technology Laboratory (NETL; Morgantown, W. Va.; www.netl.doe.gov) released the fifth edition of its Carbon Storage Atlas (Atlas V), which shows prospective CO2 storage resources — in saline formations, oil and natural gas reservoirs, and un-mineable coal seams — of at least 2,600 billion m.t. — an increase over the 2,380 billion m.t. reported in the 2012 Atlas.

This vast resource has the potential to store hundreds of years’ worth of industrial GHG emissions, permanently preventing their release into the atmosphere, says NETL. NEW CCS MILESTONES

Figure 2.

A view inside the CCS facility of SaskPower’s Boundary Dam Unit 3 in Canada. This plant, with more than one year of operation, is the world’s first coal-fired power plant to capture and store the CO2 from the fluegas CCS achieved an important milestone in the fall of 2014, with the startup of SaskPower’s Boundary Dam Unit 3 (120 MW) in Canada (Figure 2) — the world’s first commercial power plant to come online with CO2 capture (for more details, see CO2Gets Grounded, Chem.

Eng., April 2014, pp.

21– 23; www.chemengonline.com/co2-gets-grounded).

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More recently (last November), Fluor Corp. (Irving, Tex.; www.fluor.com) completed the construction of Shell’s (The Hague, the Netherlands; www.shell.com) Quest CCS project near Fort Saskatchewan, Alberta, Canada. The Quest CCS project is designed to capture more than 1 million m.t./yr of CO2from the Scotford Upgrader, which turns oil-sands bitumen into synthetic crude oil. The CO2 from the upgrader’s hydrogen-production plant is captured by an amine solution, and then released and liquefied so it can be pipelined 65 km north to be injected 2 km underground for permanent storage.

State of the Union Pushes Clean Energy, Calls for Coal-Lease Reform By : Jessica Lyons Hardcastle. Jan12, 2016 President Obama took on big oil in last night’s State of the Union, emphasizing the US’ transition to clean energy.

“Rather than subsidize the past,” he said, “we should invest in the future — especially in communities that rely on fossil fuels. That’s why I’m going to push to change the way we manage our oil and coal resources, so that they better reflect the costs they impose on taxpayers and our planet.”

Not surprisingly, his comment drew praise from environmentalists and clean energy interests and criticism from fossil fuel and other industry groups.

The American Petroleum Institute president and CEO Jack Gerard warned new regulations could raise costs for consumers.

“The majority of new oil and natural gas production that has done so much to grow our economy and save consumers money has occurred primarily on private and state lands,” Gerard said. “On federal lands controlled by the administration, crude oil production has remained flat and natural gas production has declined.

Furthermore, the administration has advanced nearly 100 regulations impacting all aspects of the oil and natural gas industry over the past year, which hinders production. Instead of 172

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bombarding our economy with duplicative, job-crushing new regulations, President Obama should embrace policies that recognize America’s energy resurgence, including environmental improvements.”

The National Association of Manufacturers president and CEO Jay Timmons also cautioned about new environmental regulations, which he said will hurt manufacturers.

“Instead of imposing new rules on business, including environmental regulations, providing regulatory relief could unleash billions of dollars of investment in the US economy,” Timmons said. “Pursuing a comprehensive energy strategy that addresses current market realities would allow us to harness growth opportunities.”

On the other side of the isle, Tom Sanzillo, director of finances for the Institute for Energy Economics and Financial Analysis, said President Obama’s coal-lease reform “does for the coal industry what it cannot do for itself — discipline production, shrink supply and better manage the nation’s energy security and this vital resource.”

Center for Climate and Energy Solutions president Bob Perciasepe said the next steps in transitioning to a clean energy future is to implement the Clean Power Plan and flesh out the details of the Paris climate agreement. “On both fronts, strong leadership from business will be critical,” Perciasepe said.

In his final State of the Union address, Obama also took a parting shot at climate deniers. “Look, if anybody still wants to dispute the science around climate change, have at it,” Obama said. “You’ll be pretty lonely, because you’ll be debating our military, most of America’s business leaders, the majority of the American people, almost the entire scientific community, and 200 nations around the world who agree it’s a problem and intend to solve it,” he said, referencing the Paris climate deal.

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Like Not Having The Next Ice Age? Thank Global Warming

By News Staff | January 13th 2016 Though 90,000 out of every 100,000 years in recent geological cycles have been Ice Ages, and it has been 12,000 years since the last one, a new glacial inception hasn't happened.

That's because humanity has become a geological force that is able to suppress the beginning of the next ice age, according to a paper in Nature.

Scientists of the Potsdam Institute for Climate Impact Research found the relation of insolation and CO2 concentration in the atmosphere to be the key criterion to explain the last eight glacial cycles in Earth history. Even moderate human interference with the planet's natural carbon balance might postpone the next glacial inception by 100,000 years.

"Even without man-made climate change we would expect the beginning of a new ice age no earlier than in 50.000 years from now - which makes the Holocene as the present geological epoch an unusually long period in between ice ages," explains lead author AndreyGanopolski. "However, our study also shows that relatively moderate additional anthropogenic CO2-emissions from burning oil, coal and gas are already sufficient to postpone the next ice age for another 50.000 years. The bottom line is that we are basically skipping a whole glacial cycle, which is unprecedented. It is mind-boggling that humankind is able to interfere with a mechanism that shaped the world as we know it."

For the first time, research can explain the onset of the past eight ice ages by quantifying several key factors that preceded the formation of each glacial cycle. "Our results indicate a unique functional relationship between summer insolation and atmospheric CO2 for the beginning of a large-scale ice-sheet growth which does not only explain the past, but also enables us 174

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to anticipate future periods when glacial inception might occur again," Ganopolski says.

Humanity as a geological force Using an elaborate Earth system model simulating atmosphere, ocean, ice sheets and global carbon cycle at the same time, the scientists analyzed the effects of further human-made CO2emissions on the ice volume on the Northern Hemisphere. "Due to the extremely long life-time of anthropogenic CO2 in the atmosphere, past and future emissions have a significant impact on the timing of the next glacial inception," co-author RicardaWinkelmann says. "Our analysis shows that even small additional carbon emissions will most likely affect the evolution of the Northern Hemisphere ice sheets over tens of thousands of years, and moderate future anthropogenic CO2-emissions of 1000 to 1500 Gigatons of Carbon are bound to postpone the next ice age by at least 100.000 years."

The quest for the drivers of glacial cycles remains one of the most fascinating questions of Earth system analysis and especially paleoclimatology, the study of climate changes throughout the entire history of our planet. Usually, the beginning of a new ice age is marked by periods of very low solar radiation in the summer, like at current times. However, at present there is no evidence for the beginning of a new ice age: "This is the motivation for our study. Unravelling the mystery of the mechanisms driving past glacial cycles also facilitates our ability to predict the next glacial inception," Winkelmann says.

"Like no other force on the planet, ice ages have shaped the global environment and thereby determined the development of human civilization. For instance, we owe our fertile soil to the last ice age that also carved out today's landscapes, leaving glaciers and rivers behind, forming fjords, moraines and lakes. However, today it is humankind with its emissions from burning fossil fuels that determines the future development of the planet," co-author and PIK-Director Hans Joachim Schellnhuber says. "This 175

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illustrates very clearly that we have long entered a new era, and that in the Anthropocene humanity itself has become a geological force. In fact, an epoch could be ushered in which might be dubbed the Deglacial."

Source: Potsdam Institute for Climate Impact Research (PIK) Sustainability CAIRN INDIA PROVIDING SAFE DRINKING WATER TO THE COMMUNITY IN BARMER, RAJASTHAN Company’s initiative to bring safe drinking water to more a million lives in parched districts of Rajasthan Barmer, Rajasthan: Hundreds of villages in the desert district of Barmer, got what they needed the most, clean and safe drinking water. A Memorandum of Understanding (MoU) was signed today between the Public Health and Engineering Department (PHED) of Rajasthan and Cairn Enterprise Centre Society. As per the MoU, water purification plants will be established and maintained to provide clean and safe drinking water to more than 800 villages in Barmer.

The MoU was signed in presence of Principal Secretary PHED, J C Mohanty and Manoj Aggarwal the Head of CSR, Cairn India.

Given that the Barmer district has an acute shortage of quality drinking water with available underground water being unsuitable for drinking (highly saline total dissolved solids (TDS) content >3,000 with high fluoride content), there are several prevalent water borne diseases that impact the quality of life. These also lead to a high incidence of diarrhoea, which in turn leads to a high Infant Mortality Rate (IMR) as well as Maternal Mortality (MMR) in the area, besides widespread incidence of fluorosis, etc.

Hence, Cairn has planned a major CSR intervention to support the Government of Rajasthan (GoR) on water treatment to make 176

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the available water safe for drinking and ensuring delivery of the safe drinking water to households.

The initiative will involve setting up of 333 small scale Reverse Osmosis (RO) plants (1,000 to 3,000 litres per hour capacity) over the next three years to provide safe drinking water to a large number of people (estimated in excess of 1 million) living in ~800 villages.

BACKGROUND TO THE PROJECT Cairn’s intervention to provide safe drinking water to the community focuses on the Barmer district, part of the Thar Desert, said to be the most densely populated arid zone in the world with a population density of ~90 people per square km. Temperatures can reach more than 50 oC during summer.

Accordingly, Cairn India initiated the JeevanAmrit pilot project in collaboration with PHED, GoR, to ensure safe drinking water to the communities in the districts of Barmer and Jalore through the establishment of RO facilities. Due to the extremely positive community feedback, Cairn is now substantially increasing the scale and scope of our project. In partnership with PHED, GoR, Cairn will establish as many as 333 water purification units across the district over three years; this would make our intervention one of the largest in the country, impacting as many as a million-plus people.

At present, for the pilot project, Water Committee is responsible for collecting all user charges and operations and maintenance of the RO facility. The model Cairn has adopted ensures widespread distribution at the point of consumption. Water ATW (Any-time Water) kiosks have been established at a number of access points; the community is provided with pre-paid smart cards with which they can access water at their convenience in a manner similar to the access provided by bank ATM machines.

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In addition, Cairn has partnered with a few local entrepreneurs to run a ‘water on wheels’ system (called jalrath). Power availability remains unreliable in some areas in Barmer; to address this issue, Cairn is providing for solar-powered RO plants in this project.

These plants allow for remote monitoring in which the health of the plant and quality of water can easily be monitored though SMS alerts or through the Android™ platform. This provides realtime access of crucial parameters such as TDS levels, input and output water quality and flow rates etc., ensuring quick action can be taken in case of any issue.

12-Year-Old ShrustiNerkar’s Invention Can Save Upto 80% Water In Showers ShreyansDodia, December 21, 2015 A 12-year-old Nasik girl has taken it upon herself to solve the water woes of the world. Quite literally. ShrustiNerkar, a Std VI student of RachnaVidyalaya has invented a shower with special nozzles that actually saves water.

According to Nerkar, it was her concern for environmental issues that prompted her.

A car wash inspired her ShrustiNerkar told the DNA that it was when she accompanied her father to a car wash that she realised that saving water is not that difficult.

She says, “I heard them announce that they will wash the car with just two litres of water. That really made me curious and I asked them they would go about it. That’s when I found out that they use special sprinklers. Later, I spoke to my father about whether we could use such sprinklers in our shower as well.”

She experimented with electric wire pipes and PVC pipes before 178

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finally settling for foldable pipes. It took her about four models before the fifth one finally worked.

How does it work?

According to media reports, thanks to her design, the shower uses only 15 litres of water for one person as opposed to the 80 litres that is normally used. So effectively, 65 litres of water per person, per shower is being saved.

It seems the technology can supply water to a population of 17 lakhs for 34 days.

Nerkar’s invention was noticed by District Collector Dipender Singh Kushwah. She has now applied for a patent as well.

The young inventor is also a good painter, has a collection of 3,000 erasers, plays the keyboard, likes basketball and is also an amateur magician!

She says, “My next step to improve this innovation and make it more environment-friendly is to develop a sensor which will save water when the person is not under it!”

Meet 12-year-old girl who has invented a shower that saves up to 80% water

Twelve-year-old ShrustiNerkar is a standard six student in Nashik’sRachnaVidyalaya. She has invented a shower with special nozzles, which can save up to 80% water. Shrusti’s shower uses approximately 15 liters of water per person when compared to the 80 litres that is normally used, thereby saving 65 litres of water per shower.

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Shrusti has applied for a patent of her new invention. Her older brother Amey who studies in standard 12 already holds a patent for devising a smart helmet that would not allow one’s scooter to start till it is worn by the rider. Their father, NarendraNerkar, a professor of electronics at the government polytechnic college, swells with pride at the accomplishments of his children.

Why your Organisation Needs a Chief Sustainability Officer Organization charts normally have boxes for lots of chiefs — whether it’s chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO) or even chief technology officer (CTO) — to indicate positions of senior responsibility for large areas the organizations’ day-to-day and strategic operations. However, organizations that are making an explicit commitment to more sustainable business practices have not yet granted the same seniority to the person in charge of those sustainability initiatives. There are a growing number of chief sustainability officers (CSOs) out there — DuPont appointed Linda Fisher as CSO as far back as 2004 — but for many organizations, sustainability is seen as being part of other strategic responsibilities such as compliance or environmental health and safety, corporate affairs, marketing, community relations, which precludes the creation of an entirely separate division.

Greenwashing As we have discussed in other blog posts, greenwashing is the practice of using advertising and PR messages to promote a commitment to sustainability that has no real evidence in operational practice. Companies say all the right things but make no significant changes to their business practices to support those commitments. On that basis, many companies see no need to support sustainability initiatives with a formal organizational structure or operational metrics. The compliance department can make sure that the company isn’t breaking any rules, and marketing can make sure that we are promoting all of our good 180

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community efforts in the name of sustainability and corporate social responsibility (CSR). However, sustainability and CSR are about exceeding what is required by law and going beyond ordinary compliance.

Changing Expectations Customers, partners and investors are no longer willing to settle for PR messages and advertising slogans. They now expect to see firm commitments, disclosures and sustainability reports as to how the company is meeting those commitments. It may make sense for your supply chain manager to monitor better use of recyclable packaging and for your operations manager to monitor energy and water usage, but these are internal procedures and do not cover the full spectrum of sustainability topics, like social value created, investment in local community or stakeholder engagement. If your company plans to incorporate sustainable business practices as a core value, it should also embrace the accountability of a public commitment to that value.

A Strategic Approach Of course, putting a CSO in place in a small organization may seem like you’re trying to run before you can walk, but there is a clear path to follow. Compliance is a great place to start. Actively promoting the fact that you devote time and resources to maintaining compliance with any and all regulations can be a good first step on your path to sustainability. This compliance will involve all departments that are subject to such regulations. In that sense, sustainability acts as a risk management mechanism.

The next step will be to move beyond basic compliance into cost efficiency in order to realize financial savings while incorporating greater sustainability. Moving to wind or solar power to reduce carbon emissions would be a good example here. This will enable brand differentiation and identification of business opportunities. To gain a strategic advantage, though, would involve a formal transition to sustainability as a core value. Products and services that you offer to your customers need to truly reflect your commitment. This typically involves 181

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innovation as you start to redesign existing products, services, management and engagement methodologies in addition to expanding your offerings. At this point, you may be ready to post that CSO vacancy!

AglaiaNtili is the managing director of Sustainability Knowledge Group, providing sustainability and CSR advisory and training services at international corporate level. She is the founder of CSR Coaching, supporting professionals in corporate responsibility and sustainability, and the founder of the CSR & Sustainability meetup, an open platform to support learning and knowledge sharing in the UAE. She holds a master of business administration degree, a master of science degree total quality management and business excellence and a degree in business administration. She is an ISO9000 Lead Auditor, an EFQM Accredited European Excellence Assessor, and an IEMA, GRI and ILM approved trainer.

Read more: http://www.environmentalleader.com/2016/01/13/why-yourorganization-needs-a-chief-sustainability-officer/#ixzz3x91EgWAf Sustainability is impossible until companies Account for Jan 13,2016 The Guardian On holiday recently, I visited the Japanese sacred area of Kumano Kodo. Miles of treks mark pilgrim routes from the ancient capital of Kyoto to a number of shrines located around the Wakayama peninsula.

We were walking on a high ridge and stopped to look and to listen to the forest sounds – bird song, a variety of insect noises and large butterflies.

But something was strange. The sound was coming at us in mono not in stereo. One side of the ridge fell off steeply. The forest was 182

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lush, varied and full of animal and insect life. It was from this side that the cacophony of sound was coming. The other side of the ridge was less steep and had been commercially exploited as a wood plantation: a monoculture of pine trees. No or very little life other than the pine trees themselves could survive here.

By some standards, the pine plantations can be considered "sustainable". They are well managed, re-planting takes place and the soil is maintained in good condition. But what of the vast amount of other life that has been driven out and destroyed in the process of turning whole mountain ranges into managed forests?

Who bears the cost of that? The management of "externalities" – as such damage is un-emotionally labelled by economists – has proven to be one of the most intractable issues in moving towards sustainability.

Neither does the ability for businesses to do damage or dump their waste unhindered only hurt the environment. It can lead to the creation of products that can be harmful to human health.

Take the Norwegian salmon farming industry – and most salmon farming elsewhere, much of which is controlled by Norwegian companies. A report on farmed salmon by Green Warriors of Norway, stated that "farmed fish is Norway's most toxic product."

Why? Some salmon farms dump toxic waste into rivers and oceans.

Besides the obvious and substantial damage both to the oceans and to ocean life, the ability to dump waste unhindered allows the salmon producers to use antibiotics and carcinogenic chemicals in the farms in order to "optimise" the commercial value of their product.

A proportion of these chemicals remain in the fish and, as a result, the salmon we all eat may be far from the clean, healthy, natural, product it is positioned as. Even the typical salmon colouring is often chemically added as farmed salmon emerge with dull, grey flesh. The issue of imposing costs on others has 183

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been one of the most intractable in the sustainability debate.

Attempts to move forward have been criticised by all sides.

Businesses have resisted taking on the full costs of their activities. Even when alternative technologies that could eliminate and reduce dumping significantly already exist and are affordable – as in salmon farming – producers refuse to adopt them.

Regulators prefer to maintain the status quo rather than discharging responsibilities to environment and human health. On the other side, some environmentalist groups have objected to attempts to offset some of industry's externalised costs as representing a commodification of nature.

Industry cannot absorb previously externalised costs overnight. It is also clear that continuing to ignore the consequences is no longer acceptable.

A first step would be a requirement for all corporations to be transparent about the externalities they generate in financial, environmental and human health terms. We can then start an open discussion asking: if corporations do not wish to bear these costs they generate, how should our society deal with them?

While these costs remain hidden and largely ignored, such a discussion is impossible.

There are signs of progress. The new UK requirement for quoted companies to report on their greenhouse gas (GHG) emissions is a welcome step forward. But the requirement should be extended to include every sort of externalised environmental impact throughout the whole of the supply chain.

A few companies have started this process. Puma is probably the best known for its environmental profit and loss statement.

Patagonia is another company that takes its environmental responsibilities seriously. They have made great progress but, they do not yet fully and transparently account for all the costs they are imposing of the environment and on human health.

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We are all shocked when we see images of open dumping of garbage in the streets or waste piles in the cities of many developing countries. Yet the discussion of the vast amount of dumping and other externalised costs by industries worldwide receives little attention.

Until corporations start being fully transparent about the full costs they impose on the environment and regulators start to take such dumping seriously, much of the talk about creating sustainable business will remain just talk. Transparency and an open debate about how, as a society, we should meet externalised costs are both long overdue.

Join the community of sustainability professionals and experts. Become a GSB member to get more stories like this direct to your inbox Rigid plastics recycling surges 27%; film recycling grows 3% The recycling of post-consumer rigid plastics surged 276 million pounds, or 27%, in 2014 to reach a new high of over 1.28 billion pounds for the year, according to a report released today at the 2016 Plastics Recycling Conference. The 2014 National Postconsumer Non-Bottle Rigid Plastic Recycling Report also indicated that the reported volume of recycled rigid plastics -tracked separately from bottles or film -- is now four times greater than the volume reported in just 2007. "This is really exciting news," said Steve Russell, vice president of plastics for the American Chemistry Council. "The combination of more advanced sorting technologies coupled with expanded consumer access is making a positive difference, and we look forward to seeing growth in rigid plastics recycling continue."

NEW ORLEANS, LA (February 2, 2016) – The recycling of postconsumer rigid plastics surged 276 million pounds, or 27 percent, in 2014 to reach a new high of over 1.28 billion pounds for the year, according to a report released today at the2016 Plastics 185

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Recycling Conference. The 2014 National Postconsumer NonBottle Rigid Plastic Recycling Report also indicated that the reported volume of recycled rigid plastics—tracked separately from bottles or film—is now four times greater than the volume reported in just 2007.

“This is really exciting news,” said Steve Russell, vice president of plastics for the American Chemistry Council. “The combination of more advanced sorting technologies coupled with expanded consumer access is making a positive difference, and we look forward to seeing growth in rigid plastics recycling continue.”

Moore Recycling Associates Inc., which authored the report, attributes much of the strong gain to a rebound from the 2013 Green Fence effort in China, improved bale quality, and growing standardization of plastics bales—the unit by which post-use plastics are sold after collection.

The source of non-bottle rigid plastics collected with the biggest increase in 2014 was the Pre-Picked Bale, which is generated from municipal programs and contains a mixture of products with bottles removed.

The rigid plastics category contains food containers, caps, lids, tubs, clamshells, cups and bulky items, such as buckets, carts and lawn furniture, along with used commercial scrap, such as crates, battery casings and drums. Typical end markets for these materials include automotive parts, crates, buckets, pipe, lawn and garden products, and thick-walled injection molded products.

As in prior years, polypropylene and high-density polyethylene comprised the two largest resins in this category, representing 38.3 percent and 34.1 percent, respectively, of total rigid plastics collected.

Approximately 64 percent of the 1.28 billion pounds of rigid plastics collected for recycling was processed in the United States or Canada, down slightly from 2013. The remainder was exported overseas, primarily to China.

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A separate report also released today found a minimum of 1.17 billion pounds of post-consumer plastic film was recycled in 2014, an increase of over 29 million pounds, or 3 percent, from the prior year. The 2014 National Postconsumer Plastic Bag and Film Recycling Report, also authored by Moore Recycling, marks the tenth consecutive year of the report, and a 79 percent increase in plastic film recycling since 2005. Based on data from the U.S. Environmental Protection Agency, the recycling rate for film has grown from 6.6 percent to 17 percent of production during the same period.

The plastic film category includes commercial film packaging, a variety of consumer wraps and bags—all made primarily from thin, flexible sheets of polyethylene. Of the film collected for recycling in 2014, approximately 45 percent was processed in the United States or Canada with the remainder going primarily to China.

Primary uses for recycled plastic film include composite lumber, new film and sheet, agricultural products, crates, buckets, and pallets.

"We’re pleased to see growth in these important areas of plastics recycling,” said Patty Moore, president of Moore Recycling.

“Continued expansion of a healthy sorting and processing infrastructure, and further development of end markets for recycled materials are essential for building on recent gains.”

Information on tracking the recycling of plastic bottles is documented annually in a third series of reports. The 25th Annual National Post-Consumer Plastics Bottle Recycling Report with results from 2014 was released in November 2015.

Contact: Jennifer Killinger (202) 249-6619 Email: jennifer_killinger@americanchemistry.com

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Microsoft’s Datacenters and the Deep Blue Sea February 2, 2016 By Carl Weinschenk 2

It’s not often that datacenter cooling is big news in the consumer media. But it was yesterday: Microsoft introduced Project Natick, which focuses on the placement of a datacenter on the ocean floor. The story was covered everywhere.

The initial research vessel is named the Leona Philpot, a character from the Halo video game. It was submerged and ran on the ocean floor about one kilometer off the coast of San Luis Obispo, CA from August to November of last year.

There are several advantages to the dumping a datacenter in the ocean: Microsoft ways that almost half of people live near the coast.

Serving them from nearby reduces latency and generally builds efficiencies.

The ocean provides a natural source of power. It also cuts costs: Since there are no people, those associated costs – from cafeterias to parking garages – are eliminated.

Real estate costs are less as well.

While each of those advantages is appealing – and they cumulatively add up to tremendous savings — the most important driver of the project is cooling. Natural cold water cooling saves prodigious amounts of energy.

Bob Johnson at Jilard offers good details on what Microsoft did.

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Leona Philpot contains a metal pod, eight feet across, which has a rack of servers. These are surrounded by pressurized nitrogen which, the piece says, aids in removing heat. Performance is monitored by more than 100 monitors.

The on-board sensors helped the research team monitor data such as motion, humidity, and pressure inside the pod. They discovered that sounds from the pod’s fans were quieter than nearby wildlife, and heat dissipated well so that temperatures were only high about a few inches away from the data center.

It is no slam dunk: Johnson points out that the salty environment is corrosive and could lead to leaks, storms could bounce the submergible around and damage the sensitive gear and, of course, equipment can’t be fixed or replaced.

Clearly, there is potential. The question is if those liabilities can be neutralized to the extent necessary carry the project forward.

Clearly, what Microsoft announced is the highest profile example of liquid cooling of datacenter equipment. It is far from the only one, however.

Another approach is being taken by Nautilus Data Technologies.

The company is using the water – but not by submerging the datacenter. Its Waterborne Data Center is mounted on a barge, which is moored in a secure location.

The system employs a secondary closed-loop heat exchange technique that does not waste water, which is a considerable advantage over other implementations. Nautilus claimed this can save up to 130 million gallons of water a year in comparison to a mid-size land-based datacenter with a water cooling architecture.

The story says that that datacenter is 30,000 square feet. The power source, conversion and backup systems are on land. This means that the equivalent land-based datacenter would be 80,000 square feet.

That’s a bit misleading, of course, because the only space that truly is saved is for the cooling.

It will be interesting to see if Nautilus eventually creates a version of the datacenter that is self-contained on the barge. That would 189

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enable it to move in case of a storm and travel to where it is needed, such as to a natural disaster.

Whenever cool sounding but somewhat “out there” technology is mentioned, Google’s name generally is mentioned. This is no different. The company got a patent on floating datacenters all the way back in 2009. SEO by the Sea had the story way back then.

Conceptually, the idea is similar to Nautilus’ and fairly well advanced. The floating datacenter idea often is linked to the mysterious Google barges thatsporadically pop up in the news.

Several trends make water-based datacenters likely: The first, of course, is the sheer explosion of demand for datacenter capacity. The power necessary to meet that demand is overwhelming in and of itself. On top of that, it is growing in an era in which energy efficiency and carbon neutrality is paramount.

Putting datacenter on or in the water seems to be very good fit for meeting demand in an environmentally friendly way.

Finally, the parallel modularization of datacenters will generate technology and knowhow that will help make these concepts commercially viable.

In any case, the technology is changing because it has to. “The traditional data center model is unsustainable,” Arnold Magcale, Nautilus Co-Founder and CEO Arnold Magcale told Energy Manager Today.

“Land-based models consume massive amounts of water and energy to power the facilities, wasting natural resources at an alarming rate. Innovative and sustainable designs are critical to ensure global data centers are able to keep up with the demand of a world increasingly dependent on technology to survive and thrive.”

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F2F How Ericsson aligned its people with its transformation strategy: An interview with chief HR officer BinaChaurasia A recent shift in strategy required an overhaul of HR. Ericsson’s chief human-resources officer, BinaChaurasia, describes how skills, technology, and processes had to change on a global scale.

January 2016 It’s been more than a decade since Ericsson relied on its own mobile-phone production, and nearly four years since it sold its stake in the Sony–Ericsson joint venture. In 2010, Ericsson embarked on a journey to reframe its strategy and become a leader in telecom services, software, and hardware.

This strategic shift brought with it a talent challenge, as new markets and priorities required different capabilities. In this interview conducted by McKinsey’s Simon London, BinaChaurasia, Ericsson’s chief human-resources officer, describes how the company has revamped HR in response— increasing its agility, coordination, global scale, and ability to leverage data analytics.

The Quarterly: What was the business context for the organizational changes human resources has been driving over the past few years?

Sidebar BinaChaurasia biography

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Graduated with a master’s degree in management and human resources from Ohio State University and a master’s degree in philosophy from the University of Wisconsin Career Highlights Ericsson (2010–present) Chief human-resources officer Hewlett-Packard (2007–10) Vice president of global talent Various executive positions at Gap, Sun Microsystems, and PepsiCo/Yum! Brands BinaChaurasia: When Hans Vestberg started as CEO six years ago, he decided to get out of the remaining consumer businesses and grow the software and services segments, which now make up about two thirds of our total operations. The idea was to leverage the core network-infrastructure business to develop new growth areas, including TV and media, cloud services, and support software—what you might call telecom IT solutions. At the time, it was very clear to Hans that you couldn’t accomplish this vision without transforming the skills and capabilities of our people across the organization.

The Quarterly: What were the company’s biggest organizational strengths and liabilities in pursuing this new strategy?

BinaChaurasia: Our culture was our strongest asset. It’s a culture of collaboration and innovation; people are used to working with colleagues across the globe or taking assignments in other locations. Our employees are also very clear about our deeper purpose—we are ultimately creating technology for good.

We go where no one’s gone before, and we build communications infrastructure that makes a difference in communities across the world.

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At the same time, we were incredibly decentralized. We had 23 regional groups that are now consolidated into 10. Every region had their own way of doing things. We had no clear systems in place. From an HR perspective, we had scattered processes and tools.

We had to tackle the problem in three simultaneous waves. One, we needed a single people strategy that was fully aligned with the business strategy. Two, we needed an integrated IT platform for HR. You can’t run an efficient global company with disjointed IT tools. We’re now on an integrated platform that can be used by both managers and employees, where our data can be centrally gathered and analyzed. And, three, we had to globalize our HR processes, with the criteria that each one should be simple, user friendly, and business focused. For example, we created global learning programs that our employees can access virtually on our Ericsson Academy portal from anywhere in the world.

We also had a larger vision to build an HR team with the knowledge and skills to partner with our leaders on implementing strategic shifts in the business. So we had to clarify roles, promote from within, bring in some strong external talent, and provide everyone with thorough training that included business acumen, financial analysis, and data analytics.

The Quarterly: What kind of insights have you been able to glean from the data analytics?

BinaChaurasia: It’s incredible. It’s a guiding indicator in a variety of areas for the business as a whole. We can pool and crunch data from all over, not just from recruiting or performance. For example, in 2014, we did an extensive data analysis across more than 52,000 job applications for over 2,000 open positions in the US. We saw that more female candidates were applying to jobs posted by female managers. So we started looking at what might be the cause. Is the wording in the female managers’ job descriptions different?

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We decided to use an app to do a “gender bias wash” of job descriptions, removing male-focused references. Overall, we have now increased the percentage of external female applicants to one of our key global job portals from 16 percent to 21 percent in just the last 9 months. We have similar analytics insights into our learning programs, which enable us to develop and deliver those programs to our employees that best enable knowledge transfer on the job. It’s essentially provided us with an ROI that we had not previously seen.

These kinds of stats are great, but the key is to move beyond data reporting and basic analytics to true predictive analytics— make the data a parameter in decision making. And you can’t have that kind of analysis across the whole enterprise, if you don’t go through the initial pain of bringing everyone onboard with common platforms and processes. And, of course, we build flexibility into our processes as needed to ensure that we are fast and relevant across our business lines and regions.

The Quarterly: How did you go about tackling your new people strategy?

BinaChaurasia: From a business perspective, it was important for us to identify the skill gaps that we would need to fill in order to succeed in our targeted growth areas. And a big part of that is building a competency model that we could use as a framework.

So, we literally took every single function in the company and all of its roles, mapped out the stages of each job, and laid out the competence needed for each one. That took a couple years, as you might imagine, getting every functional area into the framework. At that time, many in the company thought it would be impossible. Today, every position in the company is mapped out.

At the same time, we had to ask ourselves, “How do we get an aggregated assessment of capabilities across the entire organization?” Our answer was to tie in the gap-identification process with our annual strategy review. Every business unit, every region develops their annual operating plan and their threeyear plan. We then analyze the competencies needed to deliver 194

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those plans, and determine how we’ll fill the gaps. The aggregated information creates clear demand signals for our learning and recruiting teams. They know exactly what competence will be needed by which date, and in which country.

And how you fill those competence gaps is equally important. You can’t just go and hire all of them. You have to have a clear idea of what talent to hire, what learning programs to develop, and at what scale. It has always been very important to us as a company to focus on developing our employees’ competence instead of just relying on hiring from the outside.

The Quarterly: How do you manage your talent pipeline?

BinaChaurasia: Hans and I meet annually with every member of our global leadership team, and their HR partners, to review their talent and succession plans. The executive-leadership team then calibrates our top talent as a group and this talent-planning process culminates in my presentation to the board of directors.

Over the years, our talent pools have been extremely healthy for any position. So when we look externally, it’s because we want to, not because we have to.

The Quarterly: Have you put any directional targets in place when it comes to geographic presence or diversity?

BinaChaurasia: Along with many leading Silicon Valley tech companies, we publicized our diversity figures. We weren’t happy with the reality, so we put down a milestone—by 2020, at least 30 percent of our global employees will be women, up from 22 percent in 2014. It starts with the tone from the top. Hans has changed the makeup of his own leadership team. Before, there was one woman on the executive team; now there are four. If employees don’t see it from the leaders, then it won’t happen across the board. I’ve also been very clear in communicating our philosophy: Not only do you have to send the right signals from the top, but you have to make it organic so it’s not about a quota system; naturally embed it into your hiring and talent-review process. Finally, make it locally relevant.

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The Quarterly: What role have social tools played in the transformation, internally or externally?

BinaChaurasia: We’ve invested a lot in collaboration tools for our internal learning programs. It’s increasingly the way people want to learn, particularly millennials. We created Ericsson Play, a video learning model, where any employee can upload their own videos. Today, we have over 30 video channels with over 450,000 video views. We also launched Ericsson Academy Virtual Campus, which makes online training available to all our employees, and we’ve included mobile programs as well so people can learn on the go.

Externally, we’ve used social to build the company’s employer brand. When I joined the company, we asked an outside firm to evaluate our employer brand and in their words it was “an incredibly well-kept secret.” So we tried to change that, and our employees have been our best advocates on social media. We started winning in rankings for great places to work.

The Quarterly: Looking back, is there anything you would have done differently?

BinaChaurasia: I would have focused more on change management. I would have prepared the organization more by saying up front, “This is going to be a year of transition.” I kept the unit heads apprised, and the next level down was also engaged, but I could’ve done better to ensure communication all the way down the line. Building enterprise-wide tools and processes, and an HR department engaging on a strategic level, was a big change. But if we hadn’t done that, we would not be able to transform Ericsson’s capabilities, or contribute fully to the people side of our business strategy.

About the authors BinaChaurasia is the chief human-resources officer of Ericsson.

This interview was conducted by Simon London, McKinsey’s digital communications director, who is based in the firm’s Silicon Valley office.

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Unconventionals in Saudi Arabia January 13, 2016, TOGY Hani Al Maimani, managing director of National Petroleum Services (NPS), talks to TOGY about the importance of technology and investment in Saudi Arabia’s upstream services sector.

NPS is an oil, gas and petrochemicals services provider, with operations in more than 15 countries across the Middle East, North Africa and Southeast Asia.

TOGY: What challenges are facing upstream services companies in Saudi Arabia?

HAM: In Saudi Arabia, only a handful of providers specialise in upstream oil and gas services. The high barrier to entry on the market for the upstream services sector prevents many companies from starting operations in the market.

Capital expenditure is very high, and continuous investment is needed for training and keeping up with technological developments. Not every piece of technology can be acquired off the shelf. Companies must create alliances and partnerships to better tailor service packages to customer needs.

TOGY: How are low oil prices affecting the drilling sector?

HAM: Low oil prices have an impact on every part of the energy value chain. Operators and services companies are all in the same boat. We enjoyed the good days together, and now we are both sharing the same pain.

The crisis has affected some companies more than others. There have been many redundancies. While it is a difficult time for the industry, oil and gas resources are still there. This is the third time in the past 20 years that energy prices have sunk. It is a natural part of the economic cycle.

TOGY: Will Saudi Arabia develop unconventional gas?

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HAM: The low price of oil, coupled with the high cost of production, makes exploiting shale resources unfeasible at the moment. However, shale is not going anywhere. As the price of oil climbs back up and technological improvements make production less expensive, shale will become more and more attractive.

The major oil and gas operators in Saudi Arabia are taking a longterm strategic approach to shale. In the coming five to 10 years, the majority of investments will be in unconventional gas.

Companies in the downstream sector all need gas, so GCC countries are dedicated to looking for gas resources.

TOGY: What steps is Saudi Arabia taking to maximise its resources and boost its output?

HAM: World oil consumption is around 93 million barrels per day.

OPEC contributes 30 percent to the total world production. The world’s population is increasing. At the same time, production at major oilfields is decreasing. The big oilfields in Saudi Arabia and in other countries have been in production for many decades.

Some of them are now in decline.

To compensate for the decline in production, oil and gas producing countries are investing a lot in production enhancement activities. I do not see this trend changing in the future.

Saudi Arabia is looking for new discoveries in both unconventional and conventional resources. While shale has become a major industry in the US, it is a medium to long- term strategy for Saudi Arabia due to the high cost of production. For the moment, Saudi Arabia is relying on its existing reserves and new conventional discoveries, which are less expensive to produce.

TOGY: To what extent does the upstream sector encourage technological innovation?

HAM: Oil accounts for a large share of Saudi Arabia’s economy.

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that most of the current prospects and discoveries are found in jungles, deserts or in the deep sea. These harsh environments have made the upstream sector increasingly expensive to operate in.

A lot of investment goes towards making operating locations liveable for personnel. This is why a lot of investment is made to shorten the exploration time and increase the recovery rate. Until now, the recovery rate of oil and gas has been less than 50%, especially oil. Oil operators are investing in research and development to enhance the oil recovery rate.

Upstream companies need to stay on the cutting edge of technological developments. To do so, they can collaborate with institutes or universities. If companies fail to invest in new technologies, they will quickly become obsolete.

Kellogg President Wendy Davidson on how women can become leaders in the industry

By Tricia Contreras on June 22nd, 2015 | 300 inShare

Davidson (Photo: Kellogg) Wendy Davidson has almost 25 years of experience as an executive in the food and beverage industry, and she successfully balances her professional responsibilities as president of the Kellogg Company with volunteer work and her role as a mother of two. She is a member of the company’s Global Leadership Team, the Kellogg North 199

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America Leadership Team, the Global Snacks and Global Breakfast Operating Councils, the Women of Kellogg network and serves as executive sponsor for the Global Talent Management Advisory Team.

SmartBrief interviewed Davidson about how she defines work-life balance and what advice she has for women who want to become leaders in the industry.

SB:What advice do you have for women who want to become leaders in the industry?

WD I’ve been very fortunate in my career to have a network of industry colleagues who have provided invaluable coaching and advice as I explored opportunities to stretch and grow. They’ve given their time to share their experiences and insights to help me as I transitioned into new roles both personally (as a mom!) and professionally.

For women aspiring to play a larger leadership role in the industry, my advice is to seize opportunities when they present themselves, build authentic connections and learn something new every day. Don’t be afraid to take risks. With every new opportunity comes great learning which will build your skills and experiences as you move forward in your career. Equally important, take every opportunity to give back to others as an advocate, mentor and coach. Just as others have supported me in my growth, I have a responsibility to provide the same for the future of our industry.

I’m a firm believer it is important to be yourself and be authentic.

Whether you are at a customer meeting or an industry event, embrace each learning and networking opportunity that comes your way. When you make connections your world gets bigger, and your perspective gets broader. You build friendships, find mentors, collaborate with customers and brainstorm with colleagues.

SB: How did you balance the responsibilities of your career with volunteering and raising a family? What is your definition of work-life balance?

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WD: Over the years, people have often asked me that question and I don’t believe there is right answer. I think it’s unique to the individual and achieving balance is something you have to focus on every day. What balance looks like for me on one day may not be the same the next.

I am very fortunate to have a fantastic husband and two beautiful children who, as my “home team”, have been very supportive of my career. We work to make sure that we prioritize our time with a focus on enjoying the journey together.

For example, when I joined Kellogg and we were planning to move to Chicago from Baltimore, I knew I would be commuting for a long period of time, so I asked the kids about activities or events that were most important to them that I attend. While I knew I wouldn’t be able to be at everything, we agreed that I would do everything possible to move my schedule to be present at the things that were most important to them. There are many nights when I leave work early to attend a school function or sporting event, and then power up the laptop later in the evening. Those aren’t the hours I expect my team to work, but those are the things that work for me and my family. For me, it’s all about communication with those closest to me to ensure clear expectations and managing the give-and-take on a daily, almost hourly basis.

SB: Kellogg was named one of NAFE‘s Top 50 Companies for Female Executives again this year. What does Kellogg do to help women succeed in the industry?

WD: Kellogg strongly believes in investing in talent development, building a pipeline of future leaders and fostering a diverse and inclusive environment. Our internal employee resource groups Women of Kellogg and Women in Supply Chain continue to drive positive change in the organization through professional development and by fostering stronger engagement across the business. This helps women build on their leadership skills, drive organizational excellence and create strategic connections with 201

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peers across the industry. We are also a corporate sponsor of the Women’s Foodservice Forum, where I am currently chairelect and a member of the Executive Committee. WFF offers resources for individuals to build their skills, expand their knowledge and make meaningful strategic connections to reach their full potential and accelerate their career growth.

We encourage our employees to leverage all of the resources available to them to help enhance their skills as they develop and grow within the company.

SB: You have held leadership positions in the industry for almost 25 years. How has the industry changed since you began your career?

WD: I think one of the greatest changes I’ve seen is how consumer preferences have evolved. The food industry continues to serve as the backdrop for some of the most memorable experiences for individuals and families. Whether eating meals in the home, at restaurants, or on the go, consumers are demanding more convenience and greater variety. Over the last 25 years, I’ve watched the adoption of niche foods make their way into the mainstream, with global foods and flavors becoming available locally more than ever before.

In the workplace, we have seen a greater emphasis on diversity at all levels with more women being elevated into leadership positions across the industry. Companies, like Kellogg, are implementing workplace initiatives and employee resource groups to help increase employee development and engagement.

Of course, I’d be remiss if I didn’t mention the changes in technology. It has enabled us to become better connected to the consumer and allowed us to evolve with them over the years.

It’s an exciting time and I am looking forward to seeing where the industry will be in the next 25 years.

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BookScan Employee problems are your problems, too.

Responsibility and accountability

By Marlene Chism on February 1st, 2016 /SmartBrief/SmartBlog on Leadership Leaders should view employee problems as opportunities to hold themselves accountable and take difficult actions, not simply blame the employee, writes Marlene Chism. "As long as the problem is Ron, Rick, or Randy's performance, there's no personal development and no personal responsibility required on the part of the leader," Chism writes.

This post is excerpted with permission from “No-Drama Leadership: How Enlightened Leaders Transform Culture in the Workplace,” by Marlene Chism (Bibliomotion, 2015).

The difficult conversations avoided today become the lawsuit the company fights a decade later. Every single day, supervisors and managers complain about employees’ behavior and lack of accountability, but ultimately the problem is the leader’s lack of responsibility, the evidence of which is the evasion of difficult conversations.

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If leaders are unwilling to take ownership, how can those same leaders blame the employee?

Signs that indicate a lack of leadership include: • Blaming employees instead of coaching them • Avoiding performance feedback • Gossiping about the employee’s ineffectiveness • Transferring the troublemaker to another department • Firing a long-term employee who has had no warning • Making excuses for the lack of clear direction • Failing to communicate expectations There are many reasons individual leaders struggle with responsibility and accountability. Here are four of the main ones: 1. They do not understand the distinction between responsibility and accountability.

2. They do not have appropriate support or resources.

3. They have a skills gap.

4. They lack discipline.

Failing to understand the distinction between being responsible and being accountable is a chief reason leaders struggle.

Responsibility comes from the heart and accountability from the head. You accept responsibility, but accountability (to superiors, stockholders, and perhaps the public) can in a sense be forced on you. We talk about being held accountable, which suggests punishment, blame, and shame.

The second reason some people resist accountability is that they have not had the proper support or resources. When someone has responsibility for a job and is measured on his effectiveness, he will avoid accountability if he is not confident he can accomplish the job. The right support and resources fixes this problem.

The third reason leaders sometimes avoid accountability is a skills gap. They may be disorganized, not know how to delegate, or simply may not be critical thinkers. I’ve seen even high-level 204

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leaders who did not get back to people, dropped balls, and made promises that were not fulfilled unless they were reminded again and again. These patterns indicate a potential problem with accountability because the leaders do not have the right skill set. fourth problem is discipline. Sometimes leaders have too much power, and because no one seems to be holding them accountable, they lose awareness that their own lack of discipline sets a bad example.

The more these kinds of problems are tolerated, the more poor decisions affect the culture. The only reason an employee is disruptive, lazy, confrontational, or ineffective is because it is allowed. When a leader has a drama perspective, she blames the employee. Initially, blaming feels better than taking responsibility.

As long as the problem is Ron, Rick, or Randy’s performance, there’s no personal development and no personal responsibility required on the part of the leader A leader with a more enlightened approach asks, “What can this employee teach me about my leadership weaknesses?” These kinds of questions are never asked until you shift your identity from supervisor to leader. Companies that consciously decide to develop leadership identity have much more success with creating a culture of accountability.

Marlene Chism is a consultant, international speaker, and the author of two books: “No-Drama Leadership: How Enlightened Leaders Transform Culture in the Workplace” (Bibliomotion 2015) and “Stop Workplace Drama” (Wiley 2011). Chism’s passion is developing wise leaders and helping people discover, develop and deliver their gifts to the world.

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The Banyan Tree Vision vs Conceit : Are you a visionary or full of yourself?

Many leaders would like to be the next Steve Jobs, but it is easy for self-regard to become conceit, fostering fear, contempt and ego-driven leadership, writes Steve McKee. "If you're unsure whether you work for someone driven more by healthy vision or destructive conceit, sit down and have a frank conversation with them about it," McKee writes.

SmartBrief/SmartBlog on Leadership (1/6)

By Steve McKee on January 6th, 2016 | “Vision or conceit? Sometimes it’s hard to tell the difference…”

Most of the time it’s just difficult to face.

Ever work for somebody who’s convinced he’s the next Steve Jobs?

You know, the all-seeing visionary who was two steps ahead of the rest of us? The one who could never be dissuaded? Someone who believed that by sheer force of will he could change the world?

As you are probably aware, there was only one Steve Jobs. And one Bill Gates, for that matter. One Herb Kelleher. One Oprah Winfrey. One Howard Schultz. In fact, the reason we know the names of these visionary leaders is precisely because the lofty heights they achieved are rarely reached. And making their names known was probably not at the top of their to-do lists.

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Recite.com Every company needs a vision, and it’s usually the person at the top’s job to articulate it. But having a household name is not a requirement of a visionary leader; in fact, those who wish to become one tend to do their organizations a disservice. Having worked with many struggling organizations over the years, I’ve seen all kinds of leaders, from the humble steward to the arrogant tyrant. You can guess which behavior is more helpful for returning a company to its feet.

We’ve witnessed firsthand the not-so-fine line between compelling vision and simple conceit. How to tell what’s driving the leader of your organization? Three questions tend to tell the tale.

Are they confident, or arrogant? When someone is confident in their vision, they find delight in bringing others along. They’re excited to share their thinking, hopeful that it inspires their team, and motivated to lead them into the future. Arrogance, however, breeds contempt; contempt for those who don’t get it, those who ask hard questions, or those who dare make a contrary suggestion. Contempt can be subtle but it’s impossible to hide.

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Do they motivate by faith, or by fear?

Visionary leaders inspire faith in their followers. An inspired team wants to bring the vision to life because they believe in it—and even if they can’t quite see it yet, they believe in their leader.

Followers of conceit, by contrast, do so out of fear—fear of being reprimanded, or losing their jobs, or missing out, or being stabbed in the back. Good fruit can’t grow in toxic soil.

Is it about us, or about them?

True visionaries are motivated by what’s in it for “us,” whether that means the company, its customers, or the world. By contrast, conceit has the unmistakable stench of “me,” and the “personal branding” thinking that’s so popular today can confuse leaders into believing that’s OK. The irony is that those who deserve approbation most tend not to seek it.

Volumes could be written about whether and to what extent leaders like Jobs, Gates, Kelleher, Winfrey and Schultz manifest the characteristics above.

From what I read about Steve Jobs, for example, he sure seemed arrogant, terrifying, and personally ambitious, but those who knew him best might characterize him as supremely confident, genuinely inspiring and motivated to change the world. Either way, he was the rarest of rare breeds, and emulating his eccentricities while lacking his genius is unwise, to say the least.

Yet many do.

All who lead do so to achieve lofty goals. But not all do so effectively, particularly if one of their goals is to be recognized as a lofty leader. If you’re unsure whether you work for someone driven more by healthy vision or destructive conceit, sit down and have a frank conversation with them about it. If you’re afraid to approach them — or they’re unwilling to engage — you may have your answer.

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Want to Lead? Consider Becoming a Project Manager Project management can open the door to leadership roles Project management can be a rewarding if nontraditional way to gain leadership experience, writes Art Petty. Project managers are responsible for turning initiatives into success stories, and must master skills such as team-building and resource management, Petty explains. To get started, he advises, learn from project managers in your organization and learn what initiatives are . By Art Petty Management & Leadership Expert Project Managers are the quiet heroes of today’s organizations.

After all, just about any major new initiative in an organization takes place in the form of a project. From new product development to implementing a new software system to executing on key strategic initiatives, we live and work in a world of projects. And, it’s the project managers who shoulder much of the burden for bringing these initiatives from paper and presentation to reality. It also turns out that the role is one of the most challenging leadership positions in any organization.

For anyone interested in developing as a leader, getting involved in project work and eventually taking on the role of project manager is a great way to pursue your goals. Here are some of the core leadership tasks of today’s project manager, along with ideas to help you get started.

8 Core Leadership Challenges of the Project Manager: 1. Dealing with uniqueness.

2. Projects by definition are temporary and unique. They are all of the work done once to create or complete something new. Every new product development effort is unique; implementing a new software system is a one-time affair and executing on a strategic initiative requires different initiatives this year than the strategy three years ago. While project 209

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managers learn lessons from past projects, they are leading and guiding something new and unique every time.

1. Assembling a team in a hurry.

2. In many organizations, project team members are drawn from the different functional areas and assemble as a group to focus on a new initiative. From assessing and negotiating for resources with functional managers to assembling the team and bringing it to life, this is a challenging leadership issue for the project manager.

3. Navigating complex customer and stakeholder needs. Project success is often a function of how effective the project manager is at assessing and meeting the needs of all involved parties for project quality, timing, budgets and resources. A stakeholder is any individual or function touched by a project, and managing these stakeholders, including executives, is a full-time job in leadership, negotiation, diplomacy and communication.

1.Scheduling the resources.

2.If you’ve ever attended a circus or, if like me, you're old enough to remember the Ed Sullivan show, you may have seen the plate spinner who strives to start and keep as many plates spinning on sticks as possible. Most project managers describe feeling like this circus performer from time to time, and striving to gain the right resources at the right time and place is their equivalent of plate spinning.

Creativity, negotiation and diplomacy are once again key attributes of the effective project leader.

3. Helping the team move from forming to performing.

4. According to Tuckman, teams move through a number of phases in their lifecycle, from forming to storming and then on to norming and performing.

5. If you’ve been a part of a hastily assembled team, you can relate to the storming phase in particular. Project Managers are 210

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effectively team coaches, helping members define roles, understand their work and then navigate key discussion and decision points—all challenging leadership tasks.

1. Forming an environment for success.

2. Teams like individuals do their best work in a healthy environment where they are trusted and trust their co-workers. Yet the pace and demands of schedules create stress points and can foster disagreement and even dissension. The project manager owns the hard work of ensuring a healthy environment where issues are resolved respectfully and efficiently so team members can proceed with their work and provide their creative best in the process.

3. Managing the money.

4. With leadership comes financial responsibility, and the project manager is accountable for not only the quality and timeliness of the work, but the cost of the work.

5. Ensuring quality and delivery.

6. At the end of the day, the team is delivering something new and unique to a customer or group of customers. The project manager is accountable for ensuring the completeness and quality of the offering—on time and at budget.

Project Management as a Career: Every year I teach an MBA elective course in the fundamentals of project management. When we started this course, enrollment was typically 14 to 20 students. Now, the class has exploded to fill the 48-student maximum with more on the waiting list. One year, I agreed to teach two combined sections with over 80 students.

The word is out—project management is a great career and a great way to learn to lead. It also offers a non-traditional entry point into a leadership opportunity. Instead of competing for the limited number of functional leadership and management roles, you can pursue the nearly insatiable need for project managements skills in most organizations.

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I’m incredibly proud of the number of my former students who have moved on to earn the challenging and important Project Management Professional (PMP) certification from the Project Management Institute. Often, their pursuit of this role and designation starts with a discussion and assignment around exploring what it means to be a project manager. Here are some ideas to help you get started.

5 Ideas to Help You Explore the Role of Project Manager: 1. Interview a project manager in your firm and learn more about the role and your firm’s formal practices. Ask about how he/she moved into this role. Indicate your interest in supporting a project team and learning more about the role of project participant and project manager.

2. Meet with an executive and learn more about some of the key project work in the firm. Are there innovation initiatives underway?

These are most definitely projects. Is the firm installing a new software system? How are new products developed? Let it be known that you would like to work on a project team to contribute and to gain experience.

3. Explore the resources available at the Project Management Institute.

4. Read. My favorite source of information comes from an eminently readable and inexpensive book entitled, The Fast Forward MBA in Project Management by Eric Verzuh. I’ve used Verzuh’s book in lieu of an expensive text for many years and the students give it glowing reviews for its clarity, ease of reading and usefulness.

5. Volunteer to lead an initiative. There’s no shame in volunteering to head up the holiday party or company picnic. The same project management practices apply and you gain valuable project experience in the process.

The Bottom-Line for Now: Developing as a leader doesn’t require you to follow a traditional path of supervising and then managing a function. Projects and project management offer a great way to learn and practice leadership while actively contributing to the success of your firm.

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The best way to deal with stress, according to a 69-year-old monk who scientists say is the 'world's happiest man'

By Alyson Shontell | Business Insider – Thu 28 Jan, 2016

(TED) MatthieuRicard MatthieuRicard, a 69-year-old Tibetan Buddhist monk, has been called the "world's happiest man."

That's because he participated in part of a 12-year brain study on meditation and compassion led by University of Wisconsin neuroscientist Richard Davidson. And Davidson found his brain waves and activity to be off the happiness charts.

In 2008, Davidson had a group of expert meditators (including Ricard) and a group of controls (people who were not experienced in meditation) meditate on compassion, he reported in Scientific American.

Then he had them listen to the sounds of several stressed-out voices. Davidson found that two brain areas known to be involved in empathy showed more activity for the meditators than for the non-meditators, suggesting that people like Ricard have an enhanced ability to respond to the feelings of others and empathize without feeling overwhelmed.

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He also noted that when he exposed Ricard to an outside stimulus meant to startle him — like an alarm going off unexpectedly or a stranger accosting you in the street — while he was meditating, he was far less put-off by the stimulus compared with someone who was not meditating.

So, how does the "world's happiest man" feel happy all the time and get rid of anger and stress?

We spoke with Ricard at the World Economic Forum in Davos, Switzerland last Thursday. He says feeling happy comes down to being altruistic and benevolent. He also believes the mind can be trained to be happy through meditation.

And as for dealing with stress? Ricard says the key is let things go.

Most things you think are problems aren't actually problems Ricard admits that sometimes, feeling stressed is warranted.

"Sometimes there's legitimate stress, like if a rhinoceros is running behind you, it is maximum stress," he says.

Sometimes there's legitimate stress, like if a rhinoceros is running behind you, it is maximum stress.

"Or if you are in a situation that is really oppressing and there's a sense you can't move out of that and you feel so powerless — mentally and physically it's not very pleasant."

Most other kinds of stress — ones that don't cause actual physical or mental harm, Ricard says — should be shrugged off.

"This idea of constantly feeling like there's a rhinoceros running behind you is very unhealthy," Ricard explains. "It will destroy your neurons, it destroys your immune system. Basically it happens when we put too much emphasis on our outer condition.

'If I don't have that I can't be happy.' 'If that thing remains, it's just like hell breaking on me.' So it's underestimating that we can say to those things, 'Oh, you know, okay — no big deal.'"

Living a stress-free life just comes down to the way you deal with perceived problems.

Don't worry about things you can't change or control Ricard admits that of course, problems pop up in life. The trick is to not worry about the ones you can't control, and to focus on solutions for the ones you can.

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"Having some kind of inner resources to deal with the ups and downs of life, whether that's resilience or inner strength — that's a huge advantage against stress," Ricard says.

"If something unpleasant happens, just say: 'First, it won't last.

Second, I can deal with that because I know I can keep my balance. And after all, it's not such a big deal so okay, no problem.' Or if people criticize you just say, 'So what? Why is this going to prevent me from being healthy and from sleeping?'

"The stress doubles the problem. First you have the worry, then you have to worry about the problem, which is totally unnecessary because if there is a solution then just do it. If there is no solution, then why worry? That's just adding to your problems."

Why you should give mentoring all you've got Mentors should adopt an abundance mindset that assumes the more they give of themselves, the more they'll receive, writes Naphtali Hoff. "Such abundance thinking can be felt and sensed by proteges. They come to quickly recognize how invested the mentor is in their success and they make sure not to disappoint," Hoff explains.

SmartBrief/SmartBlog on Leadership (1/13/2016) Recently, I wrote two posts relating to mentoring and abundance theory, respectively. The first article focused on distinguishing between mentors and supervisors and the important role that mentors play on the growth and job satisfaction of their protégés/mentees as well as their own. The latter contrasted abundance theory from scarcity theory. This post will seek to build upon those articles by applying abundance thinking to the mentorship process in order to help both the mentor and protégé gain the most from the experience.

Not long ago I was invited to speak to a group of advancement professionals on the topic of mentorship. There were approximately 80 people in the room and I instructed them all to imagine an ideal mentoring arrangement. Using a scaling 215

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exercise, I asked them to tell me, in vivid detail, what a “perfect 10” looked and felt like.

The audience listed many attributes of strong mentorship. Some of the qualities were technical, such as being consistent and available, as well as being accountable and following through on commitments.

Others talked about mentor attitudes. These included treating protégés as adults, not people to be spoken down to. Another one mentioned was for mentors to be success-oriented, meaning that they are driven by a genuine desire to succeed and see the protégé’s success as their own.

The largest bucket was filled with relational qualities, such as being authentic and not trying to put on a show for the protégé as a way of earning respect. To this audience, the best mentorprotégé dynamic is natural and fluid. This comes from the mentor being a good listener and developing trust. Another contributor was the mentor’s ability to use their experience to help guide and support the protégé, but in a manner that was guidance-driven (using a coach approach) rather than imposing solutions.

I had also asked participants to tell me what a “1” (lowest score) looked and felt like. Mostly, the response sounded like the opposite of a 10. Specifically, some shared that they felt used in bad mentorship pairings; it was as if the mentor was most interested in resume building and that the protégé’s growth didn’t matter. They also cited feeling a lack of validation.

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Mentoring programs typically fail because one or more positive ingredients listed above are missing. Without question, the mentor’s head has to be fully in the game. When I first began as a head of school, I was assigned an experienced mentor from a different school on the other side of the country. He agreed to help me as a favor, and, predictably, as the school year progressed and his schedule became increasingly more filled, our time together dwindled to the point that the relationship had practically ended on its own.

In addition, a mentor has to be able to earn the protégé’s trust.

That is not as simple as it sounds. In addition to demonstrating capacity, effective mentors find ways to make their protégés genuinely feel that they have the mentor’s best interests in mind.

One great way by which to build such trust is to think in abundance. Abundance theory sees the world as offering infinite possibilities. It suggests that not only is there plenty to go around (the opposite of scarcity thinking) but it also posits that my helping others will help me, in terms of sharpening my skillset and building increased capacity and demand within the field.

Mentors who enter relationships with abundance thinking are invariably going to give their protégés everything that they can, in terms of time, attention and advice. They are also likelier to remain committed for more time and to do their share in making sure that progress is being made and that the protégé follows through on his/her end. Perhaps most importantly, such abundance thinking can be felt and sensed by protégés. They come to quickly recognize how invested the mentor is in their success and they make sure not to disappoint.

Employers can help mentors by creating structured mentor programs with clear, quantifiable goals for both parties. In addition, the more that they can contribute to the creation of a less competitive work environment that will allow mentors to offer real help (within reason) without having to worry about time lost from their own responsibilities, the likelier it is that mentors will willingly sign up and make the most of the relationship.

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New Year’s development goals for leaders: 2016

By Dan McCarthy on December 24th, 2015 | 1,050 inShare For many of us, making and breaking promises to ourselves for the New Year has become an annual tradition. We say we’re going to lose that 10 pounds, quit smoking, change jobs, read more, be more positive, etc., and start off all Tigger-like with energy and great intentions. Then, when the going gets tough we lose interest, motivation, and momentum and at the end of the year we’re back to where we started.

For next year, let’s break that cycle! Let’s set our yearly leadership development goals and put some best practices in place to help us achieve those goals.

We’ll start with 10 goals. Don’t get too ambitious, just pick one or two, or maybe these will inspire you to come up with something better of your own. Then, make sure you include the three “goal boosters” at the end.

Credit: Pixabay 1. Pick one thing you like to do or are good at but probably should not be doing at your level and delegate it. That’s right, let it go! Just be sure to provide appropriate support and coaching to your delegee (new made-up word).

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2. Practice in-the-moment, “don’t get distracted by shiny objects,” focused active listening. It’s called “leadership presence,” and it’s the single most important thing you can do as a leader.

3. Let someone on your team know where they really stand.Good or bad, doesn’t matter, just commit to some honest, caring, constructive developmental straight talk.

4. Pick one thing that’s not broke and make it better. Look for an innovative breakthrough solution, not just incremental improvement.

5. Look for at least one thing someone is doing well and tell them about it. While each day would be a nice stretch goal, weekly may be more realistic.

6. Gain clarity on your leadership values and share those values with your team.

7. Get feedback on your leadership skills. Take a formal 360degree assessment or use some other method to get more informal feedback. Then do something about the feedback!

8. Take a leadership course. Whatever program you chose to attend, just make sure it’s grounded in solid theory (no flavor of the month fads), builds self-awareness, and includes lots of practical on-the-job application.

9. Read at least four leadership books. That’s one a quarter.

Believe me, it’s harder than it sounds. Keep an action log of new ideas that you are going to try out.

10. Find a new mentor or coach and/or mentor or coach someone new. Get a little, give a little.

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Bonus content: Three proven ways to help you achieve your leadership goals: 1. Write them down. Be SMART about it — specific, measurable, achievable, realistic, and time-bound.

2. Tell others about them. Make “public declarations.”

3. Find an “accountability partner.” Someone to check in with you once a month to review progress on your goals (or each other’s goals).

Dan McCarthy is the director of Executive Development Programs at the University of New Hampshire and runs the Management & Leadership channel of About.com. He writes the award-winning leadership development blog Great Leadership and is consistently ranked as one of the top digital influencers in leadership and talent management. He’s a regular contributor to SmartBrief and a member of the SmartBrief on Workforce Advisory Board. E-mail McCarthy.

How great leaders balance execution and empathy

By Adam Lloyd on December 11th, 2015 | 669 inShare They’re caring. They also get $tuff done.

It’s often the great debate of what defines an exceptional executive, the discussion of EQ (emotional intelligence) versus IQ (intellectual intelligence).

Go Google it and you’ll find plenty of mixed reviews and articles that point in different directions and various forms of measurement of both EQ and IQ. With all of the compelling arguments around both, the common sense answer is balance.

Of course, this is the easiest answer, perhaps a cop-out, but the reality is that the most effective executives have a holistic leadership DNA. They combine the cognitive ability (which drives things like revenue) with the caring nature that resonates genuinely with the employees of the company.

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The concept of IQ relates directly to business results, practices and execution. Smart capable leaders get down to efficiencies and the numbers of the organizations. It’s how things get done and the financial gains of the organization are directly produced.

Capable in their own realm, are the EQ-centric, the leaders who create a genuine following of people. There are engaged with, and instinctively think first about, the people that make-up the company. They often see numeric gains as a direct result of the value of the cultural well-being.

Not every leader may inherently have an equal balance of both forms of intelligence, but a conscious effort to avoid being too heavily weighted to one side will result in a more well-rounded impact on the company and add depth to the cultural diversity of the business. Executives who are self-aware in this respect have a few commonalities in how they lead with a balanced approach.

They set goals and deadlines, but also embrace creative work styles Effective leaders understand the importance of creating a strategic vision and purpose that resonates and can be executed by the organization, but also know that strategy is only a lofty idea if it is not measured effectively. Establishing performance metrics and measurable outcomes is not just a management exercise to follow productivity, as employees crave clear direction and tangible objectives. Metrics and measurable outcomes are tools for self-motivation and, more importantly, provides real purpose.

The balance is when hard deadlines and concrete goals are met with the autonomy in howthey are met. If employees can achieve performance objectives in a work style that suites them, the result 221

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is a sense of control and pride in their work. This is where the IQ and EQ approaches come together. Hard metrics met and employee fulfillment is high.

They promote a wave of new ideas and explore corporate mindsets Smart leaders know that great ideas and corporate innovation come from a diverse pool of sources. They know to look for ideas that come from outside the organization and apply a broad, longterm view to the business. Whether it’s undergoing a transformational change to evolve, or to revisit current strategy, great leaders know how to get the most from their current employees and attract top talent in areas that lack. To fill the corporate “creative bucket,” it’s necessary to keep evaluating both internally and externally to ensure a collection of varying views and suggestions exist. Real cultural diversity must be present in the organization and, furthermore, people must be encouraged to speak up and contribute.

Exceptional leaders, whether classed as IQ- or EQ-centric, will see eye to eye here. The cognitive measure of ideas (business results) cannot exist without an engaged, culturally rich environment that is comfortable enough to share with senior leadership. Again, this balance is where the business outcome of innovation exists when the cultural dynamic feels appreciated and accepted.

They delegate to the interested and ambitious The importance of delegating the right work to the right people is critical both for efficient productivity, but also employee development. Leaders with proportioned balance know how to feed hungry future leaders. Both EQ and IQ leadership tendencies can appreciate the desire of future leaders to take on more challenging assignments. The balance is met is when new projects are delegated to those who are seeking the work, but also capable and being set up to succeed.

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It is counterproductive to be stagnant, and it is careless to proceed without proper training and resources for employees to tackle larger challenges. With the stage set to delegate, balanced leaders take an interest in the data and measurement of projects in addition to the engagement and participation of employees.

If you’re intellectually ahead, then you’re smart enough to take note and apply these practices. If you’re an empathetic leader, you care enough about everyone’s well-being and are already evaluating how these habits will benefit everyone. Either way, finding the balance will result in a well-rounded organization.

Adam R. Lloyd serves as president and managing partner of Webber Kerr Associates. As an executive talent strategist and consultant, he supports the leadership challenges and objectives of multi-nationals, private equity held and family-owned companies. Lloyd’s experience in CEO and executive appointments spans multiple industry sectors in the Americas and EMEA markets. Prior to founding Webber Kerr, he began his career in financial services and co-founded a midsize human capital services company. He received his a BS, human resources, from Michigan State University. Contact Lloyd on Linkedin, and Webber Kerr on Linkedin and Twitter.

If you enjoyed this article, join SmartBrief’s e-mail list for our daily newsletter on being a better, smarter leader.

Today's actions will matter 15 years from now: Mark Fields Ford CEO Ford's Fields tells just auto he wants to revolutionise the automotive customer experience Ford is working to improve in-car experiences through the FordPass system. The effort is inspired by CEO Mark Fields' belief that companies and their leaders must have "one foot in today and one foot in tomorrow. One foot in today means delivering this month's sales, this quarter's financials, this year's objectives. But one foot in tomorrow means taking a view on what the world is going to look like 5, 10, maybe even 15 years out."

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Just-Auto.com (U.K.) (1/14/2016) Ford did not have a major new product to roll out at Detroit this week, but it did reveal something – FordPass - that CEO Mark Fields views as vital to a future in which Ford gets closer to the customer as part of a mission to make their lives "easier". The ambitious sounding aim is to do for car owners what iTunes did for music listening. Along with GM's recent announcement of its $500m investment in ride-share firm Lyft, we're now getting a sense of how some automakers are beginning to up their game or act faster - to embrace change that is coming.

A range of services will be made available to FordPass members and Mark Fields envisages a future in which Ford becomes an information company as well as a technology company and a maker of vehicles. The relationship with the customer is key.

"The enabling technologies that are available to us today as an industry will take this industry to the next level, not in terms of the product itself but in our ability to have that relationship and provide additional services and benefits to customers."

However, he's well aware of the need to remember what Ford is good at. "We have our core business and we love our core business. We are not going to take our eyes off that. That is the engine that drives our profitability.

"For the foreseeable future, particularly outside of urban areas, people are still going to shop, buy, drive and own vehicles the way they have done for many years."

Ford's strategy for the long-term is informed by analysis of megatrends such as the growth of megacities and how demand for transportation is changing. Fields explains the nature of the challenge for an automotive business that has immediate performance requirements as well as an eye on long-term trends that impact strategy.

"You have to have one foot in today and one foot in tomorrow.

One foot in today means delivering this month's sales, this quarter's financials, this year's objectives. But one foot in tomorrow means taking a view on what the world is going to look like five, ten, maybe even fifteen years out.

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"To help us to do that we are looking at societal factors such as the growth of megacities ([cities with over 10m people]. There are around 28 of these now and projections for the next fifteen years suggest there will be over 40. So that means more congestion in urban areas. There's also the growth of the global middle class which is going to double in the next fifteen years and a lot of that is going to be in Asia. And then you think of pollution and not only the impact on the environment but the impact on basic health.

And there is also changing consumer behaviours to consider. The millennials, for example, are delaying getting married, delaying buying houses. In urban areas for them, access to cars is more important than ownership. So we are looking at these things and saying 'for us, as a company, how do we embrace these things and how do we, potentially, provide a solution for customers that might want mobility but not ownership?'

"I think it is a natural extension of our business but if we ignore it, we do so at our peril."

Fields also sees the mission ahead as being highly aligned to Ford's culture.

"Our culture goes back to our founder, Henry Ford. He was all about how we make people's lives better. Part of that was putting the world on wheels and allowing people to be mobile and for the first time in their lives go beyond the three miles where they grew up. That still drives us today. From a cultural standpoint in the company, it is part of who we are as a business, which is making people's lives better, helping change the way the world moves, just like Henry Ford did a century ago. How do we fulfil a market need and also at the same time provide a business opportunity."

Is he worried about new entrants to the transportation space? He says they can motivate Ford to innovate faster (a view often taken of Tesla's impact on the auto industry). And he also says that Ford is open to forming new partnerships if they represent the best way to deliver new services that Ford wants to be at the heart of.

"In some cases we'll do things on our own and in other cases we will partner. Ultimately it is very exciting and positive for the consumer."

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Fields stresses the importance of the customer now, something that perhaps was not always at the heart of the traditional automotive business model. "We want our customer experiences and our relationships with customers to be just as strong as our products. We realise that for many years the focus was on getting people to buy a vehicle; that was the primary focus. Once they owned it there wasn't a lot to talk about. I think there is a huge opportunity in this industry to create lifelong relationships."

He draws an analogy with Apple's impact on music listening.

"Think about what Apple did. They had the iPod and it was a great device to use to play music. However, what really revolutionised the whole customer experience around getting your own music was iTunes. That's what we are trying to do with FordPass. We are trying to revolutionise and improve the customer experience. We want to make it a part of people's lives, so it makes their lives easier. And we want it to be sticky, so they don't really want to leave and they also have a very favourable view of us."

Fields is something of an auto industry veteran and sees a pace of change now that is unprecedented, with Ford having to rapidly adjust to new market demands that create a positive sense of transformation inside the company. The good news for Ford stakeholders is that he also sees new opportunities ahead that can be tapped as the company embraces change. "The clock speed at which the industry moves forward is getting faster and faster. We have gone from an age when we have gone from a manufacturing industry to a technology industry and ultimately added to that we are becoming an information company as customers allow us to take their data and provide services in response to that."

Don't get mesmerised If the auto industry is facing unprecedented challenges and is at something of an inflection point, Fields nevertheless returns to the theme of a need for perspective. "We are also seeing nontraditional competitors that we never thought would be interested in our business. So, you mix all that together and you can see that we are at an inflection point. And we are embracing that and 226

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we are embracing it in a way that doesn't lose sight of our core business, because you can get mesmerised by some of this stuff.

If you take your eye off the core business – designing, developing, manufacturing and marketing great cars, SUVs, trucks and electrified vehicles – you won't be able to take advantage of those other services. To me, it's not moving from an old business to a new business, it's just moving to a bigger business."

Good management habits are the foundation of great Leadership

By Bobbie Goheen on January 29th, 2016 SmartBrief/SmartBlog on Leadership Don't let yourself get stuck in a rut Leaders shouldn't stop learning and developing themselves, writes Synthesis CEO Bobbie Goheen, and sustained progress requires building new habits that plug skills gaps and mesh with the organization's needs. "If you are going to lead, you have to own your development process and maintain your personal motivation through regular reflection," Goheen writes.

Good management habits are the foundation of great leadership.

They grow at the intersection of knowledge, skills and desire.

Leaders are passionate about acquiring the knowledge available and marshaling the skills needed to get the job done right.

It is work, hard work to cultivate those habits but they pay off by supporting your goals and by building the confidence to anticipate and look forward to meeting new challenges to the success of an enterprise.

Too often, success allows those habits to go fallow. When it is pointed out that they are not practicing the good habits that brought them success, some CEOs respond, “I have a good team around me and they need to practice those habits more than I do,” or, “I have to focus on strategy,” or, “My time is needed on building the new ____.”

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Many CEOs think that applying new knowledge and utilizing new skills means losing their identity, abandoning what got them to the top.

That is not true. Good management habits are the process, not unchanging content!

A very public example of the consequences of unchanging content in its habits is the “Old” General Motors. At the time of its bankruptcy, many analysts believed GM was building the best products in its history. Yet, they could not sell enough of them to avoid going under. Comfortable with being No. 1 for so long, management stuck with “the GM way” and the tyranny of numbers that silenced the voice of individual consumers. It became a self-validating culture that did not adjust to the emergence of more power for consumers to dictate who, what and where their transportation needs would be fulfilled.

By contrast, Ford, faced with the same downturn, changed the contents of its habits. Instead of sticking to the rivalry of fiefdoms, they did away with the “silo mentality” and asked its managers to bring their knowledge and apply their skills to the success of “One Ford.” The habits of good management remained but the content changed to better deal with changing market conditions.

This ability to rapidly acquire new skills and knowledge and integrate them into your daily interactions accelerates a leader’s growth and team. Here are a few techniques to manage your positive habits: Annually • Look back at what you have achieved and acknowledge the practices/skills that supported your achievement.

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•

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Define where there were gaps — ask others for their feedback and insight on the skills that either help or hinder in closing the gap.

Define the skills you will continue to practice and the new ones you need to gain.

Weekly • Provide positive feedback to those who are practicing the kinds of skills that support your team and goals.

• Write down where you notice the organization is thriving and what practices are supporting those achievements.

Experiences • Put yourself in situations to test your skills and to keep them active.

• Make sure you get to the front line of how your business or organization runs — don’t be so far away you forget what it takes to deliver on your promises.

• Practice your skills in areas where you are uncomfortable and they don’t feel natural.

If you are going to lead, you have to own your development process and maintain your personal motivation through regular reflection and by practicing the habits that create success for you and others.

Synthesis CEO Bobbie Goheen is expert in focusing top-management dynamics on a shared vision, specific goals and creative collaborations to achieve them. She has done this for Fortune 100 corporations, clients large and small and across a range of enterprises here and abroad. Connect with her onTwitter and Linkedin.

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