November 2018
Table of contents
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8 14
OPEC has ‘Trump’ card in price war with US
Impact of ICT on the oil and gas industry
04 > Energy News 06 > Oil and Gas News 12 > Technology/Smart Cities News 18 > Renewable News
16 Dubai Department of Energy towards a sustainable future
24 > Financial News
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Trees, gas leaks, carbon: three elements to keep in mind
26 > Dubai Carbon to tackle carbon emissions with DP World 28 > WETEX Coverage 30 > Policy/Regulation News
November 2018
Editor Letter
Toni Eid, Editor in Chief & CEO
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Energy Review is back!
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We are currently in the midst of a new technological era that is transforming how we live, work and play. It has been dubbed as ‘The Fourth Industrial Revolution’ – it is disrupting every industry on a global scale. This disruption is illustrated perfectly in the energy sector which has fully embraced digital transformation in an effort to reduce costs and enhance operational efficiency.
The integration of emerging technologies such as AI, Internet of Things and Machine Learning has transformed how the energy industry operates. We’ve rebranded and restructured our operations in a way which will position us a leader in the energy media space. Our expertise, knowledge and unrivalled capabilities in producing highquality independent professional content are the key factors that differentiate us from other media platforms. Join us on this journey of discovery in the energy sector and find out how we can shape the future TOGETHER!
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November 2018
Energy News
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Austria makes use of oil pipeline to produce electricity with a 2.5-megawatt turbine, which will produce around 11.5 gigawatt hours of electricity per year, the equivalent of the consumption of 3,000 homes, according to its promoters. “The plant works on the same principle as a conventional hydroelectric plant, except that the crude is less fluid than water,” said Mühlmann at the inauguration of the new structure in Mittersill. Because of the risk of pollution, this unique unit in the world was built in a special basin and is subject to enhanced surveillance and anti-avalanche equipment, it was said. A pipeline crossing the Alps has been equipped with a turbine allowing it to produce electricity for the equivalent of 3,000 homes, a world first, announced its operators. The Transalpine Pipeline (TAL), which connects the Italian port of Trieste on the Adriatic to Germany via the Alps, is experiencing a drop of more than 230
meters in Mittersill near Salzburg, in the west of Austria. “The energy from this fall was not used so far,” said Markus Mühlmann, project manager at TAL. The oil pipeline, through which 42.4 million tons of crude oil passed through in 2017, was consequently equipped
In practice, the installation, estimated at 11 million euros, must cover the equivalent of 12% of the energy needs of the TAL in Austria. Inaugurated in 1967 and associating in particular the Austrian OMV and DutchBritish Shell groups, the TAL extends over 753 kilometers, including 165 in Austria. Besides this country and Germany, it also serves the Czech Republic.
For the first time in France, hydroelectric turbine installed on drinking water network specialist in piping systems, the turbine is installed on the network at the same level as the pressure reducers to produce electricity from the water’s kinetic energy. Others could be installed in Annonay, due to a large drop creating the necessary pressure. “There are hundreds of thousands of places where we could place some,” says a former manager of Saint-Gobain PAM company. In France, other municipalities will soon install it, like the city of Hyères, in the Var. The first hydroelectric turbine installed on a network of tap water in France was recently inaugurated in a drinking water production plant in Annonay (Ardeche). With a power of 26 kW, it produces 132 000 kWh annually, equivalent to 30% of the electrical needs of the water production plant. The energy obtained is marketed
through a contract with EDF. The design and installation of this microturbine is the result of a collaboration between the Saur group, specialist in water management, and Hydrowatt, the Lyon operator of hydroelectric turbines. Made by the Spanish company Perga and marketed by Saint-Gobain Pont-à-Mousson,
This is a “very emblematic (project) of energy transition,” said Olivier Dussopt, former mayor of the city and current Secretary of State to the Minister of Action and Accounts.The government is in the process of drafting the energy roadmap of France by 2028, called the Multiannual Energy Program (EPP), initially expected at the end of June but whose presentation has been postponed to November.
November 2018
Energy News
The World Bank bets on battery storage to boost energy
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Turkmenistan opens $3.4 bn petrochemical plant
Turkmenistan inaugurated a $3.4 billion petrochemical plant as the Central Asian state seeks to both obtain greater value from natural gas and reduce its reliance on exporting it to China and Iran.
Solar energy could be a huge source of power in Africa, but its potential has been stymied by storage batteries that are too expensive and inadequate for use in poor countries. The World Bank aims to break through that bottleneck, announcing plans to invest $1 billion - and leverage it by another $4 billion - to boost developing countries' energy storage capacity from 4.5 to 17.5 Gigawatt hours by 2025. While solar energy is abundant, the sun goes down around 5:00 or 6:00 pm in most of the African continent, making storage capacity crucial to providing a continuous supply of electricity. It is a limitation with no impact on diesel and other fossil fuels in wide use to generate electricity. Africa, where solar power is an “unmissable” source of energy, will be the first to benefit, said Riccardo Puliti, head of energy practice at the World Bank. Bangladesh and other developing countries of Southeast Asia also will benefit from the World Bank's investment, which aims to stimulate a fledgling market and to create a “virtuous circle.” “We want to develop the market for batteries in developing countries,” said
Puliti. “Storage has a great future”, he added. Lithium batteries are available today, but they are made principally for electric vehicles. Instead, the World Bank would like to see affordable batteries that are scaled to village life, capable of lasting seven or eight hours at night, resistant to extreme temperatures and require little maintenance. The cost is a crucial factor. Today, the best batteries available in industrialized countries cost $200 to $300 per kilowatt hour of installed capacity, or less.
The plant should produce 386,000 tons of polyethylene and more than 81,000 tons of polypropylene -- both used to make plastic -- by processing 5 billion cubic meters of gas per year, according to fuel and energy chief Myratgeldi Meredov. President Gurbanguly Berdymukhamedov, who participated in the opening of the facility on the coast of the Caspian Sea, said it is part of the country's “extensive plans to diversify the Turkmen energy complex, to increase the economy's export potential by launching production of gas and chemical products that are in demand on the global markets.” While Turkmenistan sits on the world's fourth largest gas reserves, its isolation means it has struggled to take full advantage of them.
In developing countries, they are prohibitively expensive, ranging in price from $400 to $700 per kilowatt hour. Thus, the World Bank's goal is to bring those prices down in the coming years.
Its dependence on a few neighboring countries as customers was driven home when Russia decided to halt imports of Turkmenistan gas three years ago, leaving the country with just China and Iran as customers.
“Battery storage can help countries leapfrog to the next generation of power generation technology, expand energy access, and set the stage for much cleaner, more stable, energy systems,” said World Bank President Jim Yong Kim.
The chemicals produced at the plant will be exported to China, India, Turkey, Europe and other Central Asian countries.
Now it's up to manufacturers to heed the call, and develop the appropriate technologies.
Built by a consortium that includes South Korean firms LG International Corporation, Hyundai Engineering Corp. Ltd and Japanese company TOYO Engineering, the plant was financed by the Japan Bank for International Cooperation.
November 2018
Oil and Gas News
Cyprus invites bids to explore for offshore gas
Eni and BP to resume exploration in Libya
Italy's Eni and Britain's BP signed a deal with Libya's National Oil Corporation aimed at renewing oil exploration in the war-ravaged country, the companies said.
Cyprus decided to invite energy giants Total, Eni and ExxonMobil to bid for a license to explore for oil and gas in a new offshore block, officials said. The cabinet agreed to allow firms already licensed to exploit oil and gas in the Mediterranean island's Exclusive Economic Zone (EEZ) to bid for exploration rights in an area known as Block 7. That has angered neighboring Turkey, which has had troops stationed on the island since 1974, when it invaded and occupied the northern third of Cyprus in response to a coup sponsored by the military junta then ruling Greece.
The three businesses signed a letter of intent in London which will see Eni acquire 42.5% of BP's Exploration and Production Sharing contracts in Libya in zones A and B (onshore) and C (offshore). BP currently holds 85% of the EPSAs for each bloc, while 15% is controlled by the Libyan Investment Authority. The onshore blocs are Ghadames North and Ghadames South (southwest of Tripoli) and the offshore bloc is off the coast of Sirte, east of the capital.
The discovery of Egypt's huge nearby Zohr offshore reservoir in 2015 has stoked speculation that Cypriot waters hold similar riches. Cyprus aims for natural gas to start flowing to a liquefied natural gas facility in Egypt by 2022.
Eni’s CEO Claudio Descalzi hailed the deal that will help resume EPSA operations suspended since 2014. Furthermore, NOC chairman Mustafa Sanalla saluted the deal's “social development guarantee” as a sign of commitment to local communities in the chaos-wracked North African nation. Kadhafi's 2011 ouster saw production fall to about 20% of that level, before recovering to more than one million barrels per day by the end of 2017. OPEC has estimated Libya's oil reserves at 48 billion barrels, which makes them the biggest in Africa.
Saudi Aramco grants China Harbour Engineering drilling contract to process 40,000 barrels per day of hydrocarbons and associated condensates.
Turkish President Recep Tayyip Erdogan has warned foreign energy companies not to “overstep the mark” in disputed waters off the Cypriot coast. Texas-based Noble Energy in 2011 made the first discovery off Cyprus in the Aphrodite block, estimated to contain around 4.5 trillion cubic feet of gas.
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Recently, China Harbour Engineering Arabia was tasked by state oil giant Saudi Aramco, to build two drilling islands in order to increase oil production at the Al-Barri oilfield. The production should double from 250,000 barrels a day to 500,000 by early 2023. The project includes the installation of a new Gas Oil Separation Plant (GOSP) in Abu Ali Island and additional gas processing facilities at the Khursaniyah Gas Plant (KGP)
China Harbour will build each of the two drilling islands in different locations: the first on the northern side of King Fahd Industrial Port, and the second on the southern in Jubail, to boost production. The sites will have an approximate overall area of 616,553sqm and 263,855sqm respectively. Earlier this month, and with the same objective to increase the field’s capacity, Saudi Aramco also awarded Baker Hughes an integrated services contract for its Marjan oilfield, the first of three major offshore expansions in Saudi Arabia.
November 2018
Cover Story
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OPEC has ‘Trump’ card
in price war with US
US President Donald Trump is undoubtedly one of the most outspoken and controversial political figures of the 21st century. Since sweeping to a sensational election victory in November 2016, Trump has emerged as one of the most divisive presidents in US history.
November 2018
Cover Story
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H
is nationalistic rhetoric continues to resonate with his patriotic voter base and many US political commentators firmly believe he is wellpositioned to be re-elected in 2020, despite the seemingly never ending controversies that have plagued his administration. His presidency has sparked multiple protests all across the United States, and there have been calls for his impeachment due to his alleged involvement with Russia interfering with the US Presidential election in 2016. Trump has been on the offensive since taking power in the Oval Office, and became embroiled in a trade war with China. For years, Trump had been expressing his dissatisfaction with the trade agreements in place with its fellow economic superpower China, and claimed that the United States was getting a ‘bad deal’. He has also taken issue with NAFTA, (North American Free Trade Agreement) which is a free trade zone between the US, Mexico and Canada. Trump vs. OPEC His combative style of leadership has ruffled the feathers of many political leaders globally and he has also now become embroiled in a very public war of words with OPEC. OPEC (The Organization of the Petroleum Exporting Countries) is an intergovernmental organization that was established in 1960 and has fifteen members, with Saudi Arabia serving as its de facto leader. Trump has been very vocal in his criticism of OPEC, and the 45th US president has engaged in a sustained campaign via Twitter against the international oil cartel. In September, at the U.N. General Assembly meeting in New York City, the former property tycoon took aim at OPEC and stated that the OPEC members were ripping off the rest of the world with high oil prices.
During his address at the headquarters of the UN, the US president said, “OPEC and OPEC nations are as usual ripping off the rest of the world, and I don't like it. Nobody should like it. We defend many of these nations for nothing, and then they take advantage of us by giving us high oil prices. It’s not good." OPEC has been reducing its output since January 2017 in an effort to end a punishing oil price downturn that bankrupted hundreds of US oil companies. The reduction in output has inflicted significant financial pressure on crude-producing countries. Trump has blamed that policy for pushing oil futures into a price range of about $70-$80 per barrel, which has consequentially kept the average gasoline prince in the US, anchored at close to $3 a gallon. OPEC continued to cut output due to production problems caused by political unrest in Venezuela and Libya. Iran Nuclear Agreement However, many believe that the current policies in relation to output being pursued by OPEC, is a direct result of Trump’s decision in May to pull out of the nuclear agreement made with Iran by the Obama administration in 2015. The decision by the leader of the free
OPEC and OPEC nations are as usual ripping off the rest of the world, and I don't like it
world to immediately restore sanctions on Iran has increased geopolitical tensions. Iran is OPEC’s third biggest producer, and members of the intergovernmental organization have closed ranks wagons in an effort to protect Iran, and thus far have ignored calls from Trump to lower oil prices. OPEC has been supported in its standoff with the US by Russia, which is their biggest political ally outside of the group. In September, oil prices per-barrel reached $80 and Trump issued a threatening tweet insisting that the US would withdraw from protecting
November 2018
Cover Story
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could decide to release the Strategic Petroleum Reserves to bridge a shortterm supply deficit.” The US's Strategic Petroleum Reserves are the largest emergency supply of oil in the world. Some 660 million barrels of oil are currently stored underground in the states of Texas and Louisiana. Established in 1975 after the Middle East oil embargo, the reserves have been tapped several times, including during one particularly cold US winter in 2000, and after Hurricane Katrina shut down 95 percent of crude oil production in the Gulf of Mexico in 2006. Germany's second-biggest lender, Commerzbank, argued in a research report to investors that the reserves were “Trump's only real option in his efforts to drive the prices down.” countries in the Middle East if they didn’t reevaluate their stance on its oil prices. Trump tweeted at the time, "We protect the countries of the Middle East, and they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!" Energy ministers from OPEC and nonOPEC countries met in the Algerian capital of Algiers in September to discuss the current challenges and opportunities in the energy sector. When asked for a response to the US presidents’ demands that OPEC increases its production, the Saudi Arabian energy minister, Khalid Al-Falih, shrugged it off and said, “I do not influence prices.” The Trump administration decided to increase prices in this summer by telling oil buyers they must cut their purchases of Iranian crude to zero by November 4 or else face U.S. sanctions. The aggressive deadline left the market to wonder whether top exporter Saudi Arabia and other producers can fill the gap left by the anticipated loss of about 1 million barrels a day.
OPEC is remaining firm despite the incessant demands and threats from the US president, and it now begs the question as to what Trump can actually do to force OPEC to reduce its oil prices. His decision to re-impose sanctions on Iran has appears to have backfired, and many analysts and experts believe OPEC is in total control in this war over petroleum prices that could have a huge effect on the global economy. OPEC in control For all the criticisms that can be charged at Trump, it’s fair to say he doesn’t like to back down when confronted with an issue, especially one with such economic significance on the global stage. Trump has insisted that the US won’t put up with high oil prices for much longer. But what can he do to force OPEC’s hand? Senior Commodity Analyst at Commerzbank, Carsten Fritsch has said that the president’s bullying tactics are ineffective, and that he needs to change strategy if he wants to win this price war with OPEC. Fritsch said, “I think that instead of bullying OPEC to raise output, he
The ensuing trade battle between the US and China may inadvertently result in a decrease in the demand for oil next year. Trade negotiations between Washington and Beijing are becoming increasingly strained and have already weakened economic growth according to some of the world’s leading economists. Relations between the two countries are continuing to disintegrate, with the Trump administration taking a particularly hard stance towards telecommunication companies ZTE and Huawei. The former was banned from trading with the US for seven-years, and the draconian measures implemented by the US Department of Commerce pushed the vendor close to collapse. However, Trump intervened and allowed them to resume trade in the US, but tensions between the two economic heavyweights are at an all-time low. Janet Kong, Head of BP’s trading business in Asia has claimed that the trade spat will cause oil prices to plummet. As far as taming OPEC, Commerzbank's Fritsch thinks Trump is powerless in the short-term, and that his rhetoric is likely to strengthen the oil cartel's resolve. “It would be difficult for OPEC to raise output as
November 2018
Cover Story
it would risk losing its independence and be seen as Trump's puppets.” He also noted that the US president's latest threat had probably contributed to OPEC members pushing back plans to raise output until their next meeting in December. What’s next? US sanctions against importers of Iranian oil have now come into effect and it undoubtedly threatens the crude oil market’s precarious balance and risks a surge in prices. Riccardo Fabiani, a prominent analyst for Energy Aspects, said it remained unclear as to what impact the sanctions imposed by the US on Iran will have on the market. The analyst said, “In the next weeks, all eyes will be on Iranian exports, whether there will be some cheating around US sanctions, and on how quickly production will fall. The US will target buyers of Iranian oil in order to deprive Tehran of its main source of income.” Trump knows that going after Iran’s oil money will hit Tehran where it hurts. However, it also means that he is hitting a huge player in the global oil market and that will inevitably have serious repercussions on global supply. Prior to the announcement of sanctions, Iran was producing around 2.5 million barrels a day in April this year, but the subsequent decision by Trump has turned buyers away. Oil prices have fallen by $15 in less than a month, but the general consensus from analysts and experts is that the sanctions will result in a huge rise in prices - with some warning a barrel of Brent crude oil could reach $100 per-barrel by the end of the year depending on demand. UBS analyst Giovanni Staunovo said, “Even if the United States grants exemptions, Washington will demand that the volume imported from Iran be significantly reduced.” The ambiguous position of the US has confused some in the industry. Initially the US said the sanctions
Oil prices have fallen by $15 in less than a month
were specifically designed to reduce Iranian export to zero barrels, but it has since softened its approach. This was evidenced by the announcement made by Secretary of State, Mike Pompeo, who said that export exemptions in relation to Iran were being made for eight countries, but declined to name which countries had been given exemptions. Consumer confidence in the US itself could also suffer if rising oil prices translate into higher prices at the pump. “If prices start to rise again or another major producer has difficulties, it could put pressure on the US and lead to new exemptions,” said Fabiani. Saudi uncertainty Analysts have projected that other major oil producing countries will ramp up their production in an effort to compensate for the anticipated decline in Iran’s output. However, it has been pointed out that by doing so, they run the risk of hampering their ability to react to any future crises which may arise globally. Saudi Arabia, as aforementioned
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above, is the de facto leader of OPEC, and the world’s largest exporter of oil. Officials in Riyadh have declared that they can respond to the Iranian shortfall. However, this has been met with skepticism by many leading market players who think the Kingdom is exhausting its capacities. Saudi Arabia can produce 12 million barrels a day, but only if it invests. The country currently produces around 11 million barrels a day. “The mantra right now is to go to Saudi Arabia but its exports have remained flat at around 10 or 10.2 million barrels a day,” said Samir Madani, an analyst at Tanker Trackers, which specializes in satellite tanker tracking. “The big increase right now is Iraq at 4.2 million, which I've never seen before,” he added. The US, which is in the process of becoming the world's leading producer thanks to its shale oil operations, could meet part of the demand, but lacks export capacity, said the analyst. The Future Trump is currently on the campaign trail for the mid-term elections in the US. The economy is soaring and thousands of new jobs have been created all over the country. Unemployment is at an all-time record low and GDP has grown by over 3%. His administration thus far has been a big success economically, but his current standoff with OPEC could have significant economic ramifications for the US and the global economy. His demand for OPEC to reduce oil prices has fallen on deaf ears, and the international oil cartel is unified, and in a very strong position. US sanctions on Iran are set to cause oil prices to rise, and this war with OPEC is one fight the US president appears to be losing. It appears for now that OPEC has the ‘Trump’ card in this price war with the US, and it will be interesting to see if the notoriously stubborn Trump will alter his approach towards OPEC in a bid to wrestle back control of an industry that fuels the global economy.
November 2018
Technology/Smart Cities News
A total of 80.6% of Dubai’s water meters are now smart
His Excellency Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), announced that DEWA has installed 595,755 smart water meters across Dubai. This is 80.6% of the total number of water meters in the Emirate, with all water meters in Dubai to become smart meters by the end of next year. “Our projects are also aligned with the Dubai Plan 2021, which aims to make Dubai a smart, integrated and connected city. We are working to make DEWA the world’s first digital utility to use autonomous systems for renewable energy and storage, while expanding our use of Artificial Intelligence and digital services. The ‘Smart Applications via Smart Grids and Meters’ is one of the initiatives DEWA launched to support the Smart Dubai initiative to make Dubai the smartest and happiest city in the world.”, said Al Tayer. The ‘High Water Usage Alert’, under DEWA’s Green Dubai, helps customers discover possible leaks in their water connections, after the meter. The system sends instant notifications to the customer if there is any unusual increase in consumption, to check the internal connections and repair any leaks. This contributes to reducing incurred costs by limiting water wastage.
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Schneider Electric partners with Dubai Municipality on smart cities innovations at WETEX
Mohammed bin Rashid Space Centre (MBRSC) has announced the appointment of Hamad Obaid Al Mansoori as its new chairman. Yousuf Hamad Al Shaibani will serve as his deputy. The appointment was made by Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister, in his capacity as the ruler of Dubai.
The board, which will serve a three year term, comprises Mohammed Abdullah Al Zafeen, Mohammed Saif Al Meqbali and Mansour Jum’aa Bu-Aseibah as members. In another development, Sheikh Mohammed revamped the board of trustees of the Mohammed bin Rashid Al Maktoum Humanitarian and Charity Establishment and appointed Mohammed Jum’aa Al Naboodah as its new chairman. Ibrahim Mohammed Bu Milha will be the new deputy chairman. The board, which has been constituted for a three year term, comprises Nabeel Abdul-Rahim Gargash, Khalid Ali bin Zayed, Mohammed Abdullah Al Tawheedi and Abdul-Rahim Hussain Ahli as members.
Shell Marketing Oman selects operator as its digital solutions provider
Ooredoo has signed an agreement with Shell Oman Marketing Company SAOG, leading fuel marketing company in Oman, to provide network solutions, as well as high quality and reliable telecoms services to their network of 187 retail Service Stations, strategically located throughout the Sultanate.
dynamic solutions, including PBX services, Ooredoo internet leased lines (OIE), Shahry Business Packs and bulk SMS services. This will improve existing network connectivity and optimise costs, which will result in greater business operational continuity and efficiency.
Ian Dench, Chief Executive Officer at Ooredoo said, “We are excited about starting this new journey with them to help grow their business with the right communications infrastructure.”
Dr Mohammed Mahmood Al Balushi, CEO of Shell Oman Marketing Company, said: “Our partnership with Ooredoo is meant to build a platform to work together towards such customer-centric approach, and drive us to the next level in our digital transformation, communications strategies and business objectives.”
Ooredoo will provide Shell Oman Marketing Company with a range of
November 2018
Technology/Smart Cities News
US Department of Energy invests $3m to accelerate development of EV infrastructure Tritium which will also receive a share of $400,000 in the funding being made available by the US DOE.
Shell partners with Citi Bank on new blockchain platform
Engineering Director and co-founder of Tritium, James Kennedy said the investment will significantly enhance its capabilities in its efforts to build advanced EV charging infrastructure.
The US Department of Energy (DOE) has announced that it will invest $3.2m to the Electric Power Research Institute (EPRI) in an effort to assist in the scaling of electric vehicle (EV) charging infrastructure that connects to the grid. The extremely fast charging system will be developed by technology partner
The system will reduce the impact on the grid while providing the ability to charge multiple EVs quickly at ‘extreme’ levels while providing physical and cybersecurity protection for the infrastructure. “Electrification of transportation presents opportunities for massive decarbonization, increased productivity and customer satisfaction,” added Mark McGranaghan, vice president of integrated grid, EPRI.
US Department of Energy selects smart solutions provider to accelerate its new supercomputer “Eagle” will consist of more than 2100 nodes and deliver 3 times the performance compared to NREL’s current supercomputing platform. Eagle will be put into production in January 2019.
Mellanox Technologies, Ltd, a leading supplier of high-performance, end-toend smart interconnect solutions for data center servers and storage systems, announced that InfiniBand has been chosen to accelerate the U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory’s (NREL) new supercomputer. The new 8 Petaflop system named
“InfiniBand’s smart In-Network Computing acceleration engines, RDMA technology, and high reliability and robustness will ensure the highest performance, efficiency and scalability for NREL’s HPC, AI, storage, cloud and other applications,” said Gilad Shainer, vice president of marketing at Mellanox Technologies. “The Eagle supercomputer will enable NREL’s researchers to run increasingly detailed models that simulate complex processes and phenomena, to gain new insights and innovations in energy efficiency and renewable energy technologies,” said Steve Hammond, NREL's Computational Science Director at NREL.
Royal Dutch Shell, banking colossus Citi Bank, and other multinational organizations announced the launch of a new blockchain platform that has been established to facilitate mega oil and gas deals. The new platform has been entitled the Komgo SA - and it represents the latest introduction of several in the financial sector to utilize the revolutionary and cutting-edge blockchain technology driving cryptocurrencies like bitcoin. “The launch of komgo SA highlights a shared vision for industry innovation and underlines the ongoing commitment among members to build a truly open and more efficient network within commodity trading," said Souleima Baddi, CEO of the komgo SA. Long regarded with mistrust, blockchain has over time come to be used far beyond the confines of the world of cryptocurrency -- with banks, luxury firms, sports clubs, entertainment giants and The World Bank embracing the technology over the years. Blockchain works by allowing digital data to be shared in a highly protected, decentralised ledger of transactions.
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November 2018
Opinion
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Impact of ICT on the oil and gas industry Over the past several years, the global oil and gas industry has gone through continuous changes. That led every company in the oil and gas sector to look for ways to increase production without increasing resources. At the same time, oil and gas software-as-a-service vendor is looking to provide the latest in production optimization software and technology.
By Alaa ElShimy, Managing Director & Vice President, Enterprise Business, Middle East, Huawei
November 2018
Opinion
The solution supports a minimum latency of 20 milliseconds and mass connections of 4,000 users per cell
apply to a wide variety of complex production environments; as it can be accessed in different ways, and carry vital communications on reliable, highbandwidth links. These capabilities ensure real-time data uploads and can serve as the foundation for remote control. When working in oil and gas fields, workers need mobile terminals for coordinating activities and handling emergencies. These terminals can support traditional voice services as well as video and data services for troubleshooting. Using terminals that are waterproof, dustproof, shockproof, flameproof, and corrosion resistant enables reliable operations in harsh environments. An intelligent surveillance system helps prevent intrusion, shorten response times, and reduce the workforce. Oil and Gas Digital Production Solution
T
he oil and gas sector is one of the biggest industries that is opting for digital efficiency. The reason behind it is that the sector is eager for innovation, while being ripe for disruption to existing business models, and for real growth. Due to oil and gas fields extending across large areas and challenging terrain, it is often impossible to collect data in real time by manual data recording. As a result, improving production and management efficiency is difficult. Additionally, traditional manual maintenance methods are challenged by the difficulties of dealing with flammable, explosive, and poisonous substances, as well as the risks of someone stealing or damaging company assets. Maintaining and protecting these assets imposes a heavy workload, reduces efficiency, and requires constant readiness to respond to emergencies. All these challenges can be addressed through ICT, which supports production automation, unified scheduling, and secure monitoring for safe and costeffective production. ICT networks
Based on the information requirements for oil and gas development, Huawei offers oil and gas digital production solutions: •
•
•
Which support the production business from network, communication, and security technologies. We provide diversified network infrastructures to suit different production environments, as well as trunking communication systems and video surveillance systems, to realize auto monitoring of production process, intelligent warning of danger and timely response of unified dispatching and commanding. Huawei can offer products and technologies such as optical fiber, submarine optical cable, wireless bridge, Long Term Evolution (LTE), microwave transmission, and wireless local area networks (WLANs) to meet service interaction and communication requirements.
These products and technologies can be combined flexibly to suit offshore and onshore oil and gas fields. Hence cooperating with industry partners
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to launch ICT solutions covering the upstream, midstream, and downstream is very crucial. This will combine digital production with safety control and improve productivity in the oil and gas sector. These innovative ICT solutions include IoT for oil and gas, digital pipelines, High-Performance Computing (HPC) for operations management, and smart distribution. That’s why Huawei created the wireless eLTE technology which has become an effective means of communication to support real-time monitoring and mobile inspection of systems and devices, especially in remote and dangerous areas. The new eLTE-DSA solution overcomes the challenge of insufficient continuous dedicated spectrum resources around the world by using 4.5G technology to aggregate traditional VHF/UHF narrowband discrete spectrum into broadband spectrum resources. The solution supports a minimum latency of 20 milliseconds and mass connections of 4,000 users per cell to enable IoT technologies within the oil and gas industry. This will help oil and gas enterprises drive operational efficiency, seamlessly add new services and help customers achieve energy savings. The development and rise of (ICT) Information Communications Technology industry while also highly investing in open collaboration with ecosystem partners, is enabling ICT solutions providers to create lasting value for customers, while also working to empower people, enrich home life, and inspire innovation in organizations of all shapes and sizes. Huawei’s Digital Oil and Gas Solutions serve 70% of Global Top 20 oil and gas companies. An example is Huawei's cooperation with Santos, the largest onshore oil and gas producer in Australia. In this cooperation, Santos' original narrowband production network for gas fields is replaced with a 4G LTE IoT network that Huawei helps build. These deployments help Santos collect and analyze data in real time, accurately detect services. Santos's overall work efficiency is improved by 40%.
November 2018
Interview
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Earlier this year, the Department of Energy (Abu Dhabi) hosted a retreat entitled ‘A New Energy era’. Can you outline to us some of the major viewpoints and projections that were made in relation to building a sustainable economy in the UAE? The two-day Zayed Energy Retreat ‘A New Energy Era’ was held to discuss the Department of Energy’s plans to develop Abu Dhabi into a sustainable and competitive economy. The event was regarded as a landmark in the journey of Abu Dhabi away from a reliance on hydrocarbons as a source for the emirate’s energy requirements.
Dubai Department of Energy towards a sustainable future The UAE is giving much attention today to sustainable development especially in order to maintain their economy at a competitive level. For its part, the Department of Energy (DOE) has been dedicated to ensure achieving the UN Sustainable Development Goal (SDG) under its Agenda 2030. In an exclusive interview with Energy Review, the DOE elaborated on the 2030 vision it established for a greener country from signing partnerships to the importance of issuing e-licenses, and more steps they are initiating to be considered as leaders in future energy and sustainability.
During the retreat, the department presented a strategic plan designed to ensure a unified approach to the creation of a viable road map for the future, with all stakeholders having a part to play. This strategic plan is based on the three main principles of security, sustainability and affordability. Eight pillars were identified as part of this plan to create and promote the future vision of the Abu Dhabi’s energy sector under Vision 2030; follow a supply security, environmentally sustainable and affordable direction; use natural resources to maximum value in relation to the economy; encourage and promote continuous development; ensure transparency in reporting; promote capacity building and the development of local skills; create a functional operation model and to spread awareness and understanding of the department’s goals to customers and partners. The UAE leadership has set out a strategic vision in terms of achieving the sustainability goals set out by the UN. How much of a key enabler will The Department of Energy be in helping the UAE execute its goals? Ensuring access to affordable, reliable, sustainable and modern energy is the seventh UN Sustainable Development Goal (SDG) under its Agenda 2030. Among its key targets are to ensure universal access to affordable, reliable and modern energy services, to substantially increase the share of renewable energy in the global energy
November 2018
Interview
Energy Strategy 2050 aims to increase the contribution of clean energy from 25% to 50% by 2050
mix and to double the global rate of improvement in energy efficiency. The UAE is committed to meeting the UN’s energy goals and the Department of Energy is playing an integral role in ensuring that this happens. At the start of 2009, on the eve of World Future Energy Summit, the Abu Dhabi leadership pledged that 7% of its energy would be clean. At that time none of the capital’s energy was derived from renewable sources. Since then, we have seen the establishment of the International Renewable Energy Agency in Abu Dhabi and the coming online of projects that include Masdar City, which aims to be the world's most sustainable econeighbourhood, and Abu Dhabi’s Shams Solar Park - the first utility-scale solar plant in the Middle East. As the regulator of the UAE capital’s energy industry, the department is reaching out to all energy sector stakeholders– whether oil and gas producers, renewable energy generators, or major industry consumers - to embrace a unified approach to reforming the capital’s energy sector. In 2017, the UAE launched ‘Energy Strategy 2050,’ the country’s first unified energy strategy based on supply and demand,
which aims to increase the contribution of clean energy in the total energy mix from 25 per cent to 50 per cent by 2050. It also aims to reduce the carbon footprint of power generation by 70 percent and increase consumption efficiency by 40 per cent. In undertaking these measure, the strategy aims to both massively reduce its dependency on unstainable natural resources and to save AED 700 billion over the next three decades. At GITEX, The DOE launched electronic licensing (e-license) for small-scale regulated activities. Can you outline to us what the main benefits of this new e-license will entail? What other innovations, solutions and partnerships did The Department of Energy announce during GITEX? A main component of the Department of Energy’s mandate is to adopt the latest technologies to simplify procedures and processes for service users and to increase the number of transactions carried out on smart devices. This policy both enhances the customer experience and supports the leadership’s vison of transitioning to a smart city complete with smart government services. The advantages of this policy can be seen with the issuance of Department of Energy licenses, with two-year licenses easily and efficiently accessible through the department’s website. In a muchsimplified procedure, advance notification of licence renewal has been reduced from 28 days to just two days, with the e-licence fee-exempt for two years. The launch of the ‘Fast and Flexible License Initiative for Small Organisation Activities’ also helps create a unified database of all suppliers and ensures the quality of services provided by them. It is a tangible result of the department’s ongoing efforts to provide accurate and fast e-services and to reduce customer visits to service centres. Other innovations that have joined the department’s list of smart and e-services are licensing and regulation services, the Water Quality Regulation Reporting System (WQRRS), the electronic system for Company Registration, and e-tendering.
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Can you elaborate on the guidelines you’ve established regarding your Legislation and Compliance blueprint? Licence compliance analysis is based on a Red Amber Green (RAG) assessment, where Red signifies non-compliance, Amber refers to partial compliance and Green denotes compliance with the condition.Compliance against an item will realise one (1) compliance point, partial compliance a half (0.5) point and noncompliance will score zero (0). Can you outline to us what is the primary objective and role of the DOE in delivering Abu Dhabi’s Vision 2030 plan? Established to be the new regulator of the UAE capital’s energy industry, the Department of Energy is playing a pivotal role in meeting Vision 2030’s target to ‘Enhance Energy Security to Meet Future Demand’ – a key objective under its pillar to ‘Develop a Sufficient and Resilient Infrastructure Capable of Supporting the Anticipated Economic Growth.’ It is working to do this by formulating a ‘holistic road map’ – a framework that recognises the importance of a unified approach from all key energy sector stakeholders in meeting the vision’s goals. Comprising complex and interrelated tradeoffs, the road map balances six objective requirements: preservation of oil and gas resources, economic development, social impact, security of supplies, cost competitiveness and environmental sustainability. So intertwined are its multitude of factors that the department is calling on all energy sector stakeholders– whether oil and gas producers, renewable energy generators, or major industry consumers – to become an integral part of this road map. The Department of Energy is committed to building a sustainable economy in the UAE by working collegiately with all energy sector stakeholders to reform the energy sector and by achieving energy sustainability through harnessing orchestrated efforts with best international practices. It is through this approach that the department has already established itself as a leader in future energy and sustainability.
November 2018
Renewables news
EDF wants to lead electric vehicle charging market countries”: France, Belgium, Italy and the United Kingdom.
EDF unveiled a plan for electric mobility, through which it aims to gain the top spot in its four main European markets, including France. EDF's ambitions revolve around its four major European markets or “core
Practically, EDF plans to supply 600 000 electric vehicles with electricity, being a 30% market share in the four countries in question.The company will offer next year an integrated offer, with the supply of electricity and a charging solution for customers who have a parking space.
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DR Congo signs $14 bn deal for hydroelectric project
Finally, EDF sets itself the goal of exploiting 4 000 “smart” terminals by 2020. These will make the vehicles’ batteries available to networks and contribute to their balance during period of high consumption.
Engie, Casino launch a new joint venture
The Democratic Republic of Congo announced a deal with Chinese and Spanish partners for the development of a much-delayed $14 billion hydroelectric project. The Inga 3 project is the first of a six-phase mega-project and part of a major program to expand hydroelectric dams along the Congo River. A $13.9 billion development agreement has been signed, according to a report released after a cabinet meeting.
Energy giant Engie and GreenYellow, a subsidiary of Casino supermarkets, have launched a joint venture specializing in solar photovoltaic self-consumption for businesses and communities. The company, equally owned, is named “Reservoir Sun” and will focus on small plants up to 1 megawatt (MW). The goal is to install “a hundred MW per year” almost “one delivered and connected central per day,” detailed Otmane Hajji, President of GreenYellow, at a press conference.
Both partners have planned to invest 100 million euros per year. The panels will be installed on roofs or car parks, which still represent a large area potentially exploitable in France In fact, GreenYellow was launched ten years ago by Casino group, whose main activity is distribution. Moreover, Casino has just sold 24% to the investment company Tikehau Capital and Bpifrance for 150 million euros.
The Inga 3 project is expected to complement two ageing power stations built between 1972 and 1982 on the Inga falls of the Congo River 260 kilometers (160 miles) downstream from the capital Kinshasa. The Inga 3 dam is expected to generate 4,800 megawatts of power, equivalent to the output of three third-generation nuclear reactors, in a country where less than 10% of the population has access to electricity.
November 2018
Renewables news
Highest wind turbines inaugurated in French Jura
Six wind turbines were inaugurated recently in the commune of Chamole in the Jura. They’re considered as the highest in the France and on their own, they can produce the equivalent of the annual electricity consumption of a city of 12,000 households. Built on farmlands and in the woods of this town of 170 inhabitants, they dominate the first Jura plateau, with a maximum height of 193 meters. It will be used in the future to develop other projects around renewable energies. After a year of construction, the three blades of each turbine, hung on an impressive 115-meter-diameter rotor, began circling in December under wind effect. The wind turbines reach their maximum power when they blow at 12 m/s with a height of 135 meters, “a very regular phenomenon,” said Hartmut Schulteis, in charge of Enercon’s park operation. The expected electricity production is close to 33 million kWh per year, enough to supply the surrounding communes with “clean and renewable electricity”, according to the project promoters.
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Lack of oil pushes Jordan to shift more towards solar
In the south of Amman, hundreds of panels are shining on the roofs of mosques: Jordan is turning more and more towards solar energy to try to reduce its dependence on hydrocarbons.
The province of Maan, 200 km south of Amman, has seen the birth of 11 green energy projects, including the country's largest solar power plant, "Shams Maan".
The place of worship was equipped with 140 solar panels at the beginning of the year, which allows it to produce nearly 44 kilowatts (KW) at a cost of 32000 dinars ($45700).
At present, the country has “800 MW of production capacity thanks to these resources, of which 600 MW for solar and 200 MW for wind”.
Last year, two solar power plants were inaugurated in the Zaatari and Azraq camps, which host tens of thousands of Syrian refugees.
By the end of 2019, however, the minister plans a near doubling of production, to about 1500 MW, for nearly 2.3 billion dollars of foreign investment.
New start for Chernobyl as solar power park one-megawatt plant is located just a hundred meters from a giant metal dome sealing the remains of the nuclear power plant which suffered a catastrophic meltdown in 1986.
Ukraine launched a park of photovoltaic panels at the former Chernobyl power plant as the country seeks to use solar power to give the scene of the world's worst nuclear disaster a new lease on life. The 1 million-euro ($1.2-million),
The facility, which is installed across an area of 1.6 hectares (4 acres), can power a medium-sized village, or about 2 000 households. Ukrainian authorities have offered investors nearly 2 500 hectares to construct solar panels, and beside the cheap price of the land the site is also attractive as it offers connections to the power grid.
November 2018
Feature
Trees, gas leaks, carbon:
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three elements to keep in mind Reducing carbon emissions in the atmosphere has been a hot topic for many years, but has become specifically alerting today due to the growing risks of climate change we’re experiencing from fires to floods and rising temperatures.
November 2018
Feature
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only delay, not prevent, 2.7 degrees Fahrenheit of global warming. While a 0.9 degrees Fahrenheit (0.5 degrees Celsius) increase in room temperature is unnoticeable, permanently heating the whole planet that much will have “substantial” consequences, the report warns. The impacts will be felt across ecosystems and human communities and economies.
R
educing carbon emissions in the atmosphere has been a hot topic for many years, but has become specifically alerting today due to the growing risks of climate change we’re experiencing from fires to floods and rising temperatures.
that is projected to significantly reduce the yields of tomatoes, wheat, rice, maize and sunflowers in this region. Not to forget that it has an impact on wildlife, forcing animals who hunts for food to migrate to higher altitudes or northern habitats as the climate warms.
The rise in global temperatures by trapping solar energy in the atmosphere alters water supplies and weather patterns, changes the growing season for food crops and threatens coastal communities with increasing sea levels. The US Environmental Protection Agency (EPA) forecasts that climate change will shrink water supply thus increasing the demand for water, knowing that the latter is a very important component not only to the human health, but also to manufacturing processes and the production of energy and food. In addition, according to NASA, global warming is likely to cause more wildfires, droughts and tropical storms which are becoming more frequent - the type of 2012's Hurricane Sandy and 2013's Typhoon Haiyan. The storms themselves and the damage to infrastructure they cause often result in a tremendous loss of human life.
Geographical changes are not to be forgotten as well, although they cannot be visually detected rapidly. The change in global temperatures can have dramatic effects on shorelines, especially those densely populated by humans where rising sea levels flood buildings and roads and influence shipping traffic. According to the EPA, sea levels on the mid-Atlantic and Gulf Coasts have risen over 20 centimeters (8 inches) in just 50 years after almost 2,000 years of no observable change.
Global warming directly indicates weather changing. Unstable temperatures affect the agricultural industry and the human food supply by changing the growing conditions for food corps in many areas. According to the U.S. Global Change Research Program, carbon emissions are causing warming in California's Central Valley
Yet much of this will get substantially worse with 2.7 degrees Fahrenheit of warming, and far worse at 3.6 degrees Fahrenheit (2 degrees Celsius). According to the Intergovernmental Panel on Climate Change (IPCC), the world is headed for painful problems sooner than expected, as emissions keep rising. The impacts and costs the 1.5 degrees Celsius of global warming registered will be far greater than expected. The IPCC also reported that 2.7 degrees Fahrenheit could be reached in as little as 11 years—and almost certainly within 20 years without major cuts in carbon dioxide (CO2) emissions. Even if such cuts were to begin immediately it would
“Limiting global warming to 1.5°C compared with 2°C would reduce challenging impacts on ecosystems, human health, and well-being,” said Priyardarshi Shukla, Chair of the Global Centre for Environment and Energy at Ahmedabad University in India, in a statement. Such impacts include stronger storms, more erratic weather, dangerous heat waves, rising seas, and largescale disruption to infrastructure and migration patterns. Under the 2015 Paris Agreement, every country in the world agreed to keep global temperatures well below 3.6 degrees Fahrenheit (2 degrees Celsius) in order to strengthen the global response to the threat of climate change; and as of April 2018, 175 parties had ratified the Agreement, 168 parties had communicated their first nationally determined contributions to the UN framework convention on Climate Change Secretariat, and 10 developing countries had submitted their first iteration of their national adaptation plans for responding to climate change. However, current pledges to cut CO2 emissions will push global warming to at least 5.4 degrees Fahrenheit (3 degrees Celsius) by 2100, risking natural tipping points such as thawing of large areas of permafrost— which could drive global temperatures uncontrollably higher. The Trump administration, for its part, has pulled the U.S. out of the Paris Agreement, being “an agreement that disadvantages the United States to the exclusive benefit of other countries”, Trump said at a podium in the Rose Garden when announcing the withdrawal. Global warming is like being in a mine field that gets progressively more dangerous, says Michael Mann, a
November 2018
Feature
climatologist and director of the Earth System Science Center at Penn State. “The further we go, the more explosions we are likely to set off: 1.5C is safer than 2C, 2C is safer than 2.5C, 2.5C is safer than 3C, and so on,” said Mann, who was not directly involved in this latest IPCC report. “Stabilizing global warming at 1.5C will be extremely difficult if not impossible at this point,” Mann said. The IPCC’s Special Report lays out various pathways to stabilize global warming at 2.7 degrees Fahrenheit (1.5 degrees Celsius). These solutions all require unprecedented efforts to cut fossil-fuel use in half in less than 15 years and eliminate their use almost entirely in 30 years. This means no home, business, or industry heated by gas or oil; no vehicles powered by diesel or gasoline; all coal and gas power plants shuttered; the petrochemical industry converted wholesale to green chemistry; and heavy industry like steel and aluminum production either using carbon-free energy sources or employing technology to capture CO2 emissions and permanently store it. In addition, depending on how fast emissions are cut, between 0.4 and 2.7 million square miles (1-7 million square kilometers) of land may have to be
converted to growing bioenergy crops and up to 3.86 million square miles (10 million square kilometers) of forests added by 2050. And still that won’t be enough, the report warns. Every pound of CO2 emitted in the last hundred years will continue to trap heat in the atmosphere for hundreds of years to come. By 2045 or 2050 there will still be too much CO2 in the atmosphere. More forests or some form of direct capture that takes CO2 out of the atmosphere will be essential to stabilize global temperatures at 2.7 degrees Fahrenheit (1.5 degrees Celsius), the report states. The challenge to stay below 3.6 degrees Fahrenheit (2 degrees Celsius) is immense, requiring fossil fuel infrastructure to be phased out, non-fossil energy sources phased in, and large-scale removal of carbon from the atmosphere, says Glen Peters, Research Director at Norway’s Center for International Climate Research. “To stay below 1.5 C simply requires the transformation be faster and deeper than for 2C,” Peters said. Currently, we are going in the wrong direction with global emissions increasing 1.5 percent in 2017 and a likely increase this year, he said. “Without the full involvement and alignment of our technical, social, and
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Unstable temperatures affect the agricultural industry and the human food supply
political dimensions, 1.5 C and even 2C won’t be possible.” Not only must humans stop releasing greenhouse gases, but as previously mentioned, they must find a way to take back some of the carbon that has already
November 2018
Feature
been released, to limit the rise in global temperature. This overturn must occur, according to many scientists, in the second half of the twenty-first century. This absorption of CO2 is the blind spot of the fight against climate change. But solutions exist. Three forgotten ideas were put on display at the Global Climate Action Summit in San Francisco to save the climate: Forests and fields Trees absorb carbon dioxide through photosynthesis, and help store this carbon in the soil. Deforestation therefore leads to the presence of more carbon in the atmosphere, which warms the planet even more. For this reason, forests and vegetation in general are seen as a central solution to the carbon problem - potentially hundreds of millions of additional tons of absorbable CO2 per year. If only humans stop clearing. “It's 30% of the solution, but it receives only 2% of international funding” related to climate change, says Carlos Manuel Rodriguez, the Minister of the Environment of Costa Rica, where the forest area has doubled in 30 years. Farmland is also important. Field crops naturally absorb CO2 from the air and reinject carbon into the soil. It would be enough to slightly increase the absorbed rate to potentially capture huge quantities: 0.04% or 4 per thousand would do, according to an initiative launched by France in 2015. For example, Stéphane Le Foll, who runs “4 per 1000”, argues that farmers should plant alfalfa, so that the fields remain covered with plants all year, between corn and wheat season for example. Plus, they should stop plowing, to limit erosion. “The idea is that when you fly over these lands in 20 to 30 years, there will be no more plots tilled,” he said in San Francisco. Reduce gas leaks Hydrofluorocarbon gases (HFC) are refrigerants for air conditioners, but air conditioners are leaking, which warms the atmosphere. By accelerating the
economies of scale must therefore be completed.
Stabilizing global warming at 1.5C will be extremely difficult if not impossible at this point replacement of HFCs with other less harmful gases, emissions could drop by 5 to 16% between 2015 and 2025, according to a report released by the America's Pledge coalition. Leaks from wells and pipelines are another major source of greenhouse gases - in this case methane, which is heating power is much higher than that of CO2. It would be necessary to repair the leaks, to the end of the distribution circuit of city gas pipes. Suck CO2 from the air “Sucking” carbon directly from the air is another idea for the moment at the experimental stage. Three companies in Switzerland, Iceland and Canada have developed systems that extract CO2 from the air and store it. For example, CO2 can be injected underground into aquifers, or can be absorbed by rocks. “It's expensive, it's difficult, but it's conceivable,” says James Mulligan, author of a report on the subject for the NGO World Resources Institute. The cost is estimated at $100 to $200 per ton of stored CO2, compared to about $50 for reforestation. Significant
On a personal level, one can also offer a helping hand to help reduce carbon emissions and save money at the same time, by executing simple everydaytasks. Here are some pointers on how to do it: Buying products with minimal packaging helps to reduce waste and adding insulation to walls and installing weather stripping or caulking around doors and windows can lower heating costs more than 25 percent, by reducing the amount of energy needed to heat and cool houses. Moreover, a person can turn down the heat while sleeping at night or away during the day, and keep temperatures moderate at all times. Wherever practical, replacing regular light bulbs with compact florescent light (CFL) bulbs can help enormously. Replacing just one 60-watt incandescent light bulb with a CFL will save you $30 over the life of the bulb. CFLs also last 10 times longer than incandescent bulbs, use two-thirds less energy, and give off 70 percent less heat. In addition, less driving means fewer emissions. Besides saving gasoline, walking and biking are great forms of exercise. For what concerns home appliances, they now come in a range of energy-efficient models, and compact florescent bulbs are designed to provide more natural-looking light while using far less energy than standard light bulbs. Saving electricity and reducing global warming can be done by turning off lights when leaving a room, and using only as much light as needed. It is also important to remember to turn off the television, stereo and computer when not in use. These steps will take us a long way toward reducing energy use and saving money. Less energy use means less dependence on the fossil fuels that create greenhouse gases and contribute to global warming.
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November 2018
Financial news
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BP’s Q3 earnings doubles on high oil prices “What we are seeing is momentum with the delivery of strategy,” he added, noting the performance was boosted also by the ramp-up of key projects.
British energy major BP announced that its third-quarter net profit doubled on sharply higher crude oil prices. Bottom-line profit after tax surged to $3.35 billion (2.9 billion euros) in the three months to September, compared with $1.77 billion a year earlier, BP said in an earnings statement. Underlying replacement-cost profit, which excludes fluctuations in the value of crude oil inventories, also doubled to $3.8 billion. “We've captured the higher (oil) prices,” said chief financial officer Brian Gilvary in a webcast released alongside the results.
Brent oil prices soared in September to a four-year peak above $82 per barrel partly on Iran supply fears. That contrasted with about $50 in the summer of last year. It is noteworthy that revenues jumped almost a third to $79.5 billion. Oil and gas production excluding Rosneft was flat at 2.46 million barrels of oil per day in the reporting period. “Our focus on safe and reliable operations and delivering our strategy is driving strong earnings and growing cash flow,” added chief executive Bob Dudley. BP will meanwhile fund the $10.5-billion purchase of mining giant BHP Billiton's US shale oil and gas
operations entirely from cash, owing to the high oil prices. “While oil prices remain at these levels, we expect to finance the transaction fully using cash,” Gilvary said. “In this event, the $5-6 billion divestment program linked to the transaction will be used to reduce debt.” The landmark deal opens a new chapter for BP in the United States following the devastating 2010 Gulf of Mexico disaster. BP was ravaged by the oil spill catastrophe eight years ago caused by an explosion at the Deepwater Horizon drilling rig that the company leased. The blast killed 11 men off the coast of Louisiana and caused 134 million gallons (507 million liters) of oil to spew into Gulf waters in the worst environmental catastrophe in US history.
Petrobras to sell African oil business for $1.4 bn partnerships and disinvestment program, and is aligned with our 2018-2022 business and management plan and our ongoing portfolio management, focused on investing in pre-salt fields in Brazil,” the company said.
Brazilian state oil company Petrobras announced the sale of its holdings in two Nigerian oil blocks for $1.4 billion, part of the ailing firm's bid to sell off assets and raise cash. Petrobras will sell its 50-percent stake in the joint venture Petrobras Oil & Gas B.V. to a consortium led by Dutch energy trader Vitol, the Brazilian firm said in a statement. “The sale... is part of Petrobras's
Petrobras Oil & Gas B.V. is based in the Netherlands. Petrobras's partner in the venture is BTG Pactual E&P. Vitol's partners in the purchase are the Africa Oil Corp. and Delonex Energy Ltd. Vitol will have a 50-percent stake and the other two partners 25 percent each. The blocks involved include two productive fields, Agbami and Akpo, and another field, Egina, that is in the final stages of development, Petrobras said.
Together, the fields currently produce around 21 000 barrels of oil equivalent per day for the Brazilian firm. Petrobras has been left reeling by its involvement in a massive corruption scandal in Brazil, in which a laundry list of top politicians and business executives colluded to skim billions of dollars off its books. In a bid to get back on track, the company has been slimming down its portfolio to focus on developing core assets -- particularly the hard-to-reach but potentially massive “pre-salt” fields off the Brazilian coast. Its efforts finally appear to be paying off -- in the second quarter it registered a profit of $2.7 billion, its largest since 2011.
November 2018
Financial news
Novatek records increase in quarterly net profit
Second Russian gas group, the private Novatek, announced a net profit and a turnover up in the third quarter year-on-year, pulled up by the start of the project Yamal. According to Novatek, the net profit of the group increased by 21.7% to 45.9 billion rubles (616 million euros at the current rate), after having suffered the “significant impact” of the evolution of exchange rates. Excluding the effect of foreign exchange differences, as well as the one-time effect from the disposal of interests in joint ventures, normalized profit attributable to shareholders of PAO NOVATEK totaled RR 65.5 billion (RR 21.75 per share) in the third quarter of 2018 and RR 166.7 billion (RR 55.31 per share) in the nine months of 2018, representing increases of 87.7% and 47.5%, respectively, as compared to the corresponding periods in 2017. In addition, revenues jumped 67.8% to 219.4 billion rubles (2.9 billion euros). The increases in the total revenues and normalized EBITDA were largely due to the production launches of the first and the second LNG trains at Yamal LNG at the end of 2017 and in July 2018, respectively, as well as a favorable macro-economic environment with increases in average realized liquids and natural gas prices.
Saudi budget deficit shrinks due to revenue surge $120.6 billion while non-oil income jumped 48% to $56.3 billion, it said.
Saudi Arabia's budget deficit dropped sharply in the first nine months of 2018 on the back of a surge in oil and other revenues, said the finance ministry.
The kingdom, the world's top crude oil exporter, has posted a budget deficit every year since oil prices crashed in 2014. In the past four fiscal years, it posted a total shortfall of around $260 billion and has projected a deficit of $52 billion for 2018.
The OPEC kingpin, which has introduced economic reforms aimed at reducing its dependence on oil, has benefited from a sharp rebound in energy prices on world markets.
The ministry said that expenditure in the first nine months of 2018 rose by 25% to $190 billion.The rise in non-oil income is significant after Riyadh has increased the prices of fuels and power and imposed a 5% value-added tax (VAT) in addition to fees on around 11 million expatriates in the country.
According to the ministry’s website, the budget shortfall in the first three quarters of 2018 was $13.1 billion, a 60% drop compared to the same period last year. Oil revenues rose 47% year-on-year to
Saudi Arabia has also increased its oil production by over 500,000 barrels per day to more than 10.5 million barrels daily since June and the price of oil has surged to over $80 a barrel.
Schneider Electric registers successful results in Q3 2018 continued growth expected in the fourth quarter”.
Once again, Schneider Electric revised slightly upward its forecast of activity and operational performance for this year, after confirming fast growth in sales in the third quarter on all its activities. The specialist group for energy equipment and solutions is now targeting a turnover and an operational performance at the top end of the bracket which was already noted at the end of July. According to Schneider Electric, this optimism reflects “the strong sales performance in the third quarter” and “the
In details, the group is now targeting an organic growth of its EBITDA between 8 and 9%, against a previous range of between 7 and 9% and an organic growth of its turnover “close to 6%”, while it expected it to reach between +5 and + 6% so far. The group also benefited from the integration of the British industrial software specialist Aveva, the acquisition of French IGE + XAO in energy management, and the American Asco Power, which IGE + offset the unfavorable impact of the euro growth against several currencies. Schneider also announced that it could accelerate its share buyback program of about 1 billion euros.
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November 2018
Interview
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E-vehicles can save an average of 10 000 dirhams a year
Dubai Carbon to tackle carbon emissions with DP World
Carbon dioxide is the primary gas emitted from human activity and the best-known greenhouse gas that contributes to global warming. Industries have been releasing this gas for a long time now and its excess in the atmosphere is causing more heat to be trapped, thus increasing temperatures which results in global warming. Being alerted about this issue, the city of Dubai is transitioning to a low carbon economy and Dubai Carbon is the enabler and knowledge repository in that process.
November 2018
Interview
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ubai Carbon Center of Excellence (DCCE) is providing turnkey carbon management solutions and developing sustainable business strategies. In an exclusive interview with Energy Review, the CEO of Dubai Carbon, Ivano Ianelli, elaborated more about its strategies to reduce carbon emissions through the solar energy kits and the E-Sayyara campaign. He also talked about the attention the center offers to water, considering it to be a strong energy component, as well as its latest agreement with DP World for carbon neutrality. At WETEX, you signed a MoU with DP World regarding its HQ in Jebel Ali. Can you outline to us what benefits this collaboration agreement will bring? We already have a collaboration agreement with DP World, which looks at their carbon emissions geographically and in terms of areas: free zones, warehouses, real estates, and services etc. Through our agreement, we helped it achieve its carbon neutrality because it was able to offset all of its emissions in its solar installations in Jafza. The latest report from the IPPC has disclosed some shocking statistics which illustrate the impact harmful greenhouse gas emissions are having on global warming. What is your opinion on the report – and what can we do to address this crisis now? I believe that the report doesn’t say anything that we didn’t already expect. So, the major difference is in the fact that the report says a much more stringent feature for the difference between 1.5 and 2 degrees. What we basically observed is that we have continued not to take action, and as a result, we are seeing the climatic conditions deteriorate at a much faster pace than we have anticipated. How much of an issue is the cost of solar energy kits by property
management companies in terms of encouraging residents here in Dubai to embrace the green economy? I think the fees that the properties develop on this work are having a very big impact on cost simply because they are creating a much more difficult platform for end-users to utilize. As international benchmark data, the solution should cost about $1/W, sometimes the fees are about 55% of solar installation cost. Can you tell us me more about your new e-vehicle campaign that Dubai Carbon is launching with E-Sayyara? We have been following the progress by older relevant stakeholders. The EV campaign is launched under the Supreme Council of Energy and it’s running in junction with the FPA and DEWA. There are over 200 charging stations provided by DEWA which are free of any cost for the end-user. There are also additional private and institutional charging stations across the UAE bringing the total to 317. Considering the fact that the electric vehicles’ range has increased dramatically and that we have now vehicles that normally travel 100 kilometers on a single charge, this makes the penetration of electric vehicles much easier. The E-Sayyara campaign basically wishes to educate the public on the platform and the benefits it provides noting that E-vehicles can save an average of 10 000 dirhams a year in running cost to the average driver. The latest issue of Dubai Carbon’s magazine, The Sustainabalist, focuses primarily on water and water preservation. How much of a key focus is this for Dubai Carbon? Water is a major focus just like power because it’s a key resource we track. We’ve seen in the past that water infrastructure is already a challenge and obviously water here in the UAE as well as in many countries around the world is the product of desalination. So, there is a very strong energy component to it. For us,
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Our main objective is to succeed in changing these negative trends everything which can save energy at the forefront is part of our DNA. Can you tell me more about Dubai Carbon’s Safaqat campaign regarding solar energy? What we try to do with Safaqat is leverage crowdsourcing basically at one standard fuller rooftop hectare which can be easily utilized in the UAE. If it’s the vast majority of the applications, and by vast majority we’ve been able to sell the kits in roughly 95% on different configurations shared. Because of the scale and the simplicity, the prices are extremely competitive and beneficial for the end-user. What are your primary objectives and goals for the next 12 months? In the next 12 months, what we wish to see is the carbon market leverage these momentums that started with the Paris agreement. Carbon markets are essentially a representation of the private sector potentials in addressing climate change. Our main objective is to succeed in changing these negative trends that are affecting the environment.
November 2018
Event Coverage
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WETEX
showcases the latest technological innovations in water, energy and environment sector The 20th Water, Energy, Technology, and Environment Exhibition (WETEX 2018), and the 3rd Dubai Solar Show attracted over 33,000 visitors over three days. Dubai Electricity and Water Authority (DEWA) organized both events, under the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and under the patronage of HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and President of DEWA.
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he two events were part of the UAE’s 5th Green Week - and the theme of the event was entitled – ‘At the forefront of sustainability,’ which was held from 23-25 October at the Dubai International Convention and Exhibition Centre (DICEC). The exhibitions covered 78,413 square meters with over 2,100 exhibitors from 53 countries attending the conference. HH Sheikh Hamdan bin Rashid Al Maktoum inaugurated the events, accompanied by HE Matar Humaid Al Tayer, Chairman of DEWA, along with a number of senior officials, director general, ambassadors and officials, DEWA EVPs, senior officials of the
Dubai Supreme Council of Energy, and the media.
track to become the world’s cleanest city by 2050.
The UAE in many ways has become a beacon to the rest of the world in terms of how it has embraced sustainability. The embodiment of its commitment is illustrated best by its creation of ‘The Sustainable City’, which is a residential area that is providing inspiration to other countries. Some countries have expressed a desire to embrace sustainability, but many remain skeptical when leveraging the ROI on the adoption of a sustainable model. However, the UAE’s development of ‘The Sustainable City’ is certainly serving as a benchmark to other nations – and Dubai is also on
WETEX also coincided with the fifth edition of the World Green Economy Summit (WGES 2018), which featured a whole series of leading international speakers and experts on topics such as the green economy, smart cities, innovation, and sustainable development. One of the standout global figures that delivered a keynote presentation was former French President Francois Hollande, who played a key role in developing the Paris Climate Agreement before his term in office ended. He praised the UAE for its commitment
November 2018
Event Coverage
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“WETEX also provides a unique opportunity for investors to build business relationships and enhance business opportunities by networking with representatives of major companies and decision-makers from around the world under one roof. Meanwhile, the Dubai Solar Show spurs international efforts to develop the solar power sector, which is a cornerstone of sustainability. The event highlights the most important energy initiatives in Dubai that are main pillars in implementing the Dubai Clean Energy Strategy 2050”, he added.
to climate change, protection of the environment, its embrace of the green economy and sustainability objectives. However, he criticized the decision by US President Donald Trump, to opt out of the Paris Agreement, and expressed concerns that Brazil’s new right-wing president nicknamed the ‘Trump of the Tropics’ was about to follow suit. Hollande said, “We must accelerate, we must invest and that happens in Dubai. We must not wait, even if Donald Trump has cut his commitment, we must consider that we go far and far.” HE Matar Humaid Al Tayer, Chairman of DEWA, echoed the sentiments expressed by Hollande, and said the biggest issue on earth now facing the human race was climate change. HE Al Tayer said, “The World Green Economy Summit this year focuses on best global practices and experiences in the digital transformation and its integration into a green economy. It discusses the latest digital technologies and innovations that will contribute in pushing forward the green growth and sustainable development, as well as expanding new funding mechanisms such as the green financing. The Summit looks into new means to measure the carbon footprint and utilize artificial intelligence in clean energy as each of these contributes efficiently in building a green economy, which will enhance our stand in combatting the biggest global issue our earth is facing now and in the future that is climate change.
“From this summit, we strongly urge leaders, experts, governments and all stakeholders to work hand in hand to face this challenge before it is too late and implement the global commitments that have been made at Paris Agreement for climate change. These commitments were pronounced through integrated initiatives and projects that depend on clean energy as well as through efficiently moving towards green systems, whilst using latest technologies that adapt to digital and innovative solutions.” Several other key events and activities WETEX focused on a variety of events related to energy and water conservation, environment protection, waste management, green building, carbon reduction, highlighting the latest technology and the most successful innovations in conserving natural resources, enhancing environmental security and stimulating innovation and scientific creativity in energy. “WETEX has become a much-awaited annual event for organizations, entities, and companies specializing in energy, water and environment from the region and around the world to show their solutions and green products and to identify the typical investment opportunities in these important and vital areas”, said Saeed Mohammed Al Tayer, MD & CEO of DEWA, and Founder and Chairman of WETEX.
Innovation Hall highlights innovations in energy, water, environment and sustainability The Innovation Hall focused on key innovations in energy, renewable and clean energy, mobility, technology, education, health, water and space science. By providing electronic kiosks for university students, DEWA offered new specialized educational materials, to share experiences and challenges, and honored Emiratis and other talented innovators from around the world. The Innovation Hall encouraged knowledge sharing to build and enhance national capacity and promoted the talents and skills of people of determination as well as their innovations and ideas. The five Innovation Zones in the Hall this year were the Youth Zone; People of Determination Zone; DEWA Supplier Relationship Workshop Zone; Innovation Workshop and Seminars Zone; and the Activities & Events Zone. “We had a full-fledged Innovation Hall during WETEX 2018 as part of our ongoing efforts to promote and contribute actively to enhance R&D and to keep pace with rapid technological advancements, in view of the Fourth Industrial Revolution and its technologies such as Artificial Intelligence (AI), the Internet of Things (IoT) and 3D printing. Through the Innovation Hall, we motivate inventors and innovators to deliver innovations from the UAE, and around the world, through smart platforms, and to promote practical and engineering research to develop new and innovative solutions in energy, water, environment and sustainability,” said Al Tayer.
November 2018
Policy-Regulation News
Chevron, Exxon adhere to climate initiative
Aramco IPO will be launched in 2021
Saudi Crown Prince Mohammed bin Salman has announced that Aramco’s IPO will go ahead by early 2021.The Crown Prince has launched a progressive digital transformation program for the KSA – which has been established in an effort to steer the country from being an oil-based economy to a much more technologically advanced one. US oil giants Chevron and ExxonMobil joined an industry initiative to tackle climate change. The OGCI (Oil and Gas Climate Initiative) announced in a statement that these two behemoths, as well as the US group Occidental Petroleum, will be considered as members. Since 2014, the initiative has included groups such as the British BP, Saudi Aramco and the French Total. However, Americans, more reluctant to engage, were not yet part of the club.
The Aramco IPO was seen as being the key enabler in the Saudi Vision 2030 program, but the initial public offering was scrapped earlier this summer by King Salman.The oil behemoth was planning to float 5% of its stock on the New York Stock Exchange – which would make Aramco’s IPO the world’s biggest ever stock sale. However, following a number of consultations with Aramco officials and fiscal experts, King Salman called the IPO off in August.
Each of the three new members will pay $100 million to this fund, says the OGCI. They also pledge to “recognize and support the Paris Agreement” regarding the climate, which the United States has disengaged, on the initiative of President Donald Trump. Michael Wirth, CEO of Chevron, pledged to “work constructively to address the risks of climate change”.
However, the Saudi Crown Prince Mohamed bin Salman has refuted claims that the plan to take Aramco public has been permanently suspended - and indicated that the stock is likely to be floated by 2021. In an interview with Bloomberg, bin Salman said, "I believe late 2020, early 2021. The investor will decide the price on the day. I believe it will be above $2 trillion because it will be huge." The crown prince vehemently denied that the KSA had halted the plan after media reports suggested that financial advisors tasked with working on the IPO had been disbanded. Bin Salman added, “Everyone heard about the rumors of Saudi Arabia cancelling the IPO of Aramco, delaying that, and that this is delaying Vision 2030. This is not right."But Aramco executives have repeatedly cited unfavorable market conditions to push back the IPO, earlier scheduled for this year, with many observers skeptical whether the listing will happen at all. The crown prince told Bloomberg that the IPO was 100% in the best interests of the kingdom.
Iran regrets OPEC losing credibility
With the accession of these three new members, the OGCI now claims about 30% of the world's oil and gas production. Its two priorities are the deployment of CO2 capture, storage and recovery technologies, as well as the reduction of methane emissions from the sector.
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the decision taken, as the countr y faces new US sanctions, following Washington's decision to withdraw from the 2015 Iran nuclear deal, which has woken up supply concerns in global markets.
Oil cartel OPEC is losing credibility, as some of its members have turned it into a tool in the service of the United States, regretted a senior Iranian official. OPEC and its non-cartel partners, including Russia, agreed at the end of June to increase their output by around a million barrels a day after a previous agreement to limit their supplies in order to raise prices. However, Iran, a founding member of the cartel, strongly disapproved
Iran's OPEC governor Hossein Kazempour Ardebili accused Saudi Arabia and Russia of taking over Iranian market due to production increase and said that OPEC's responsibility is to restore market balance, not to boycott its founding members amid sanctions that threaten to cut Iranian oil sales. Nevertheless, according to the International Energy Agency, output from Iran has witnessed its lowest level since July 2016 with top buyers India and China distancing themselves from Tehran as the sanctions approach.
November 2018
Agenda 12-15 November 2018
ADIPEC Abu Dhabi is organizing a large international exhibition, gathering under one roof over hundreds of Ministers, Energy influencers and leaders in this sector. You can join 42 NOCS and IOCS and more than 2 200 exhibiting companies displaying thousands of products and services.
Place: Abu Dhabi National exhibition center 10-11 December 2018
Telecom Review Summit DUBAI 2018 Telecom Review will hold the 11th edition of its summit for two consecutive days. The first day will be under the theme “It’s All About SMART Networking” and the second day will be under the theme “Building the SMART Future”.
Place: The Meydan Hotel, Dubai, UAE
11 - 12 December 2018
Oman Sustainable Energy And Technology Summit In its second edition, the Sustainable Energy and Technology Summit aims to bring together various stakeholders like ministries, research institutions and industry specialists to focus on sharing the current market trends, technological advancements and future challenges in the energy sector.
Place: Grand Hyatt Muscat, Muscat, Oman 22- 24 May 2019
Solar India/5th Smart Cities India 2019 expo As part of the 5th Smart Cities India 2019 expo, India has dedicated a special part of its exhibition to Solar Energy as it is set to become one of the largest solar hubs globally in the coming years. Visit this expo and find out more about battery storage, floating solar, grund mounted solar, and many more technologies.
Place: Pragati Maidan, New Delhi, India
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