Biden Threatens Oil Firms: Increase Gasoline Production, Lower Prices
Faced with record-high prices at the pump, U.S. President Joe Biden escalated the rhetoric against oil companies on Wednesday, telling them in a letter to produce more gasoline and lower gasoline bills for American consumers.
“At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable,” President Biden wrote in a letter to companies including ExxonMobil, Valero Energy, and Marathon Petroleum, seen by Reuters.
“The lack of refining capacity – and resulting unprecedented refinery profit margins – are blunting the impact of the historic actions my Administration has taken to address Vladimir Putin’s Price Hike and are driving up costs for consumers,” the President wrote.
President Biden also warned the companies that “My administration is prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity and output in the near term, and to ensure that every region of this country is appropriately supplied.”
Gasoline prices hit $5 per gallon last week, the highest ever, and averaged $5.014/gallon on June 15, compared to the $5.016 all-time high record set just yesterday.
As gasoline prices rise and inflation hit a four-decade high, President Biden is scrambling for solutions to lower the price at the pump ahead of the mid-term elections in November. So the rhetoric against oil companies is intensifying. At the end of last week, President Biden called out Exxon and other oil companies for making excessive profits, saying that “Exxon made more money than God this year.”
Rallying oil prices, recovering demand post-COVID, and constrained refining capacity are the key reasons for record-high gasoline prices in the U.S. and many other countries.
Crude oil prices are the single biggest factor determining U.S. gasoline prices, accounting for over 53 percent of the average retail price per gallon. Moreover, in the U.S., some 1 million bpd of refinery capacity has been shut permanently since the start of the pandemic, as refiners have opted to either close money-losing facilities or convert some of them into biofuel production sites. In the United States, operable refinery capacity was at just over 18 million bpd in 2021, the lowest since 2015, per EIA data.
Source: Oilprice.com
Ghana: GOIL Posts Gh¢98.74 Million Profit After Tax In 2021
Ghana’s leading indigenous Oil Marketing Company, GOIL Company Limited, registered a profit after tax of Gh¢98.74 million (US$12,194,390) , up by nine per cent compared to Gh¢90 million it made in 2020
The company’s earnings per share also increased from Gh¢0.23 to Gh¢0.253.
GOIL’s total assets also increased from 2.1 billion cedis to approximately 2.5 billion cedis.
The company announced a final dividend of GH¢0.047 per share, amounting to Gh¢17,634,000.
Despite the challenging nature of the year 2021, the company’s volume of sales of fuel was approximately 886.6 million litres, about 11 per cent above that of the previous year.
The Board Chairman of GOIL PLC, Reginald Daniel Laryea, in a speech delivered at the 53rd Annual General Meeting in Accra on Wednesday, which went virtual and in-person, noted that in the year under review, the company added fourteen retail stations to its nationwide network.
He continued that as part of efforts to deliver quality fuel to consumers, the company procured a second test van to test and monitor products at the company’s retail outlets.
According to him, the company also supported a number of institutions.
Source: https://energynewsafrica.com
Ghana: GOIL’s Bitumen Plant In Tema Commences Commercial Production In August
Ghana’s import bill for bitumen is expected to drop significantly this year as GOIL PLC’s bitumen plant under construction in Tema is expected to start commercial production in August this year.
The West African nation imports bitumen—which reportedly costs the country an average of $11.8 billion yearly—from Cote d’Ivoire, India, China and Brazil for road projects.
Responding to a question by a shareholder at the 53rd Annual General Meeting of GOIL in Accra on the status of the bitumen plant, Group CEO and Managing Director of GOIL PLC, Osei Kwame Prempeh, told the gathering that the US$35 million worth of bitumen plant is 99 per cent completed.
He said the plant would be fully completed by the end of June 2022.
According to him, there would be a test run of the plant in July and would start commercial production in August this year.
The 7,000 metric tonnes storage capacity plant is being constructed in partnership with Societe Multinationale de Bitumens (SMB) of Cote d’Ivoire.
Source: https://energynewsafrica.com
Ghana: Policy On Petroleum Subsidies Not Sustainable–Abass Tasunti
The Head of Economic Regulation at the National Petroleum Authority (NPA), Abass Ibrahim Tasunti, has stated the Government of Ghana can only subsidise petroleum products if it can do so despite the hikes in petrol prices in the country.
“Subsidy in itself is not a good thing; but because you the consumer are only interested in the cheaper prices but you forget that if the price is cheaper and the product is not available, you will not like that,” he said.
He said, “For us, if the government wants to subsidise, the NPA, as a regulator, cannot say it would not allow the subsidy to be passed.”
According to him, it is up to the government to analyse or assess its capacity to subsidise “but you must have the money before you can subsidise so that we don’t go back to the issue where you have subsidised but there’s no money and there’s a shortage.”
He further explained that the NPA can only advise the government when it realises prices are rising to use the Price Stabilisation and Recovery Levy to cushion consumers which the authority did last year.
Giving a presentation on the Price Formula in Ghana at a day’s capacity-building training for journalists in the Northern Region on Monday, June 13, 2022, Mr Tasunti said Nigeria, as an OPEC country, after restructuring its petroleum industry last year, decided to scrap subsidies on petrol by June this year.
“Why is Nigeria scraping subsidy on fuel? Most countries in the world want to scrap subsidies on fuel. It is not an easy decision to scrap subsidies on fuel but it is very good for the economy. About 70% of vehicles in Nigeria run on petrol. In Ghana, we consume more diesel than petrol but in Nigeria, it is the other way round because everybody is using the fuel that is subsidised but because Nigeria produces a lot more crude oil than Ghana does, that is why they’re able to use the revenue they generate from the crude oil export to subsidise the petrol prices. And even that, they say they want to scrap the subsidy because they aren’t able to afford the subsidy,” he explained.
Meanwhile, the NPA Head of Economic Regulation said the Bank of Ghana is organising a special exchange rate options for the oil industry, asserting it used not to happen until three months ago so that the rate at which the oil industry gets the dollar becomes predictable to help stabilise the price for the public.
For his part, the NPA Head of Quality Assurance, Saeed Ubeidalah Kutia, gave an assurance that the authority would continue to put in quality control measures along the value chain to guarantee the integrity of petroleum products in the country.
The National Petroleum Authority also urged consumers to report issues of fuel adulteration within 48 hours for swift investigations and redress.
Source: https://energynewsafrica.com
Nigeria: I Will Make Nigeria Petroleum Hub Of West Africa-Atiku Abubakar
Nigeria’s former Vice President and Presidential Candidate of PDP for the 2023 Elections, Atiku Abubakar, has pledged his commitment to make the West African nation a net exporter of petroleum products and the refining hub of West Africa.
Nigeria is the largest oil producer in Africa with an average daily crude production of about 1.27 million barrels per day.
Nigeria has five oil refineries with a combined installed capacity of more than 445,000 bpd.
Sadly, these refineries are sitting idle, forcing the country to rely heavily on imported fuel.
In 2021, Nigeria spent US$1.04 billion on imported petroleum products.
In a press statement signed by Paul Ibe, Media Advisor to Atiku Abubakar under the heading: ‘How to reduce infrastructure deficit, free funds for social investment’, it said: “We need to stress that the vision of Atiku Abubakar as encapsulated in ‘My Covenant With Nigeria’ is to drive private investment to shift Nigeria from being a “net importer” to a “net exporter” of petroleum products and become the refining hub of the entire West Africa region.
“We cannot hope to achieve this without extensive reforms to restore investor confidence which is currently at its lowest ebb. The active participation of the private sector in the downstream sector will help drive efficiency and healthy competition in the oil and gas sector.”
He expressed regret about the state of infrastructure in Nigeria.
“Regrettably, Nigeria’s core infrastructure sectors are not operating efficiently. Almost all the infrastructure sectors from roads, railways, housing, power and energy are operating below potential. Over the years, we have observed how these enterprises consume huge public resources while offering poor quality services.
“Many of these state-owned enterprises have become a source for political patronage, corruption and rent seeking to the detriment of Nigeria’s long-term economic growth.
“For example, Nigeria’s refining infrastructure remains poor despite the perennial injection of unending public resources for turnaround maintenance. The country’s refining capacity per capita is 0.002 bpd/capita compared to Libya’s 0.06 bpd/capita and South Africa’s 0.01 bpd/capita. As of today, Nigeria imports over 80% of its refined products to meet its current needs and is said to be the largest importer of PMS in the world, with significant balance of trade implications.
“Sadly, the fiscal cost of maintaining these state-owned enterprises is enormous, and it comes with even greater opportunity costs. By holding unto these underperforming enterprises, Nigeria is sacrificing investments in critical areas, including education, health, water, sanitation and rural infrastructure. For example, the first phase in the rehabilitation of Nigeria’s refineries is expected to gulp US$1.55 billion! With its current precarious fiscal position and daunting development challenges, Nigeria cannot afford to forego productivity, enhancing investments in human capital development and channel scarce resources to moribund enterprises,” the statement concluded.
Source: https://energynewsafrica.com
Totalenergies To Splash Out $850 Million On Angola Project
French energy giant TotalEnergies and its partners have made a final investment decision on an $850 million project offshore Angola as part of their plans to further develop the CLOV complex located in Block 17.
Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG) and TotalEnergies announced the decision for the CLOV Phase 3 development last Friday, saying the investment aims to increase production and reduce operating costs.
TotalEnergies’ partners in the project are Equinor, ExxonMobil, BP, and Sonangol.
This project is an extension of the subsea production network and its interconnection to the floating production and storage unit (FPSO) CLOV to develop additional production from existing fields, which can reach a peak of 30,000 barrels per day, in order to sustain the production of the CLOV field, which started in 2014.
For the Chairman of the board of directors of ANPG, Paulino Jerónimo, the final investment decision for CLOV Phase 3 “will clearly contribute to Angola maintaining its national production levels, as well as to the optimization of existing facilities and resources.”
The CLOV Phase 3 development project comprises the extension of subsea infrastructure and five new wells in water depths between 1,100 and 1,400 meters. The first production is expected to begin in 2024.
Director General of TotalEnergies in Angola, Olivier Jouny, stated: “This development will maximise the use of the existing CLOV infrastructure, allowing us to produce oil at lower costs and with less carbon emissions into the atmosphere, in line with TotalEnergies’ strategy.”
It is worth reminding that TotalEnergies started production at the CLOV Phase 2 in Angola in early December 2021. Resources are estimated at around 55 million barrels of oil equivalent. The tie-back project was expected to reach a production of 40,000 barrels of oil equivalent per day in mid-2022.
Source: https://energynewsafrica.com
Ghana: Over 50 Military, Police Personnel Deployed To Supervise Installation Of Prepaid Meters In Krobo Area
The Electricity Company of Ghana (ECG), on Tuesday, commenced the deployment of pre-payment meters in the Krobo area in the Eastern Region under heavy military and police presence.
This portal can confirm that about 50 military personnel from the 49 Field Engineers Regiment and a number of police personnel were deployed to offer security and protection for staff of the ECG.
The Tema Regional ECG PRO, Sakyiwaa Mensah, told this portal that her outfit was working in collaboration with officers from the 49 Field Engineers Regiment to provide technical assistance with the installation of the prepaid meters in Krobo District.
She said ECG has had a long-standing relationship with the Ghana Military, spanning over two decades.
To speed up the installation exercise, Miss Sakyiwaa said, “We have drawn 90 extra technical staff from across our operational areas to help in the deployment.”
She added: “We are also working with our contractors to install the meters.”
She explained that the police would be on the field to provide security for the work they were doing, as has been the case since the inception of installation.
She told energynewsafrica.com that her outfit hopes to install as many meters within the shortest possible time due to the extra hands.
“Any customer who refuses the meters will have their power disconnected. Should a customer reconnect, they will be charged with an illegal connection. Should a customer decide to have a meter after a disconnection, they may have to apply for the service,” she warned.
The Municipal Chief Executive for Yilo Krobo, Eric Tetteh, urged all residents to cooperate with the ECG staff.
The installation of prepaid meters comes after years of an impasse between Krobo residents and ECG which escalated into devastating attacks on the ECG office in Somanya, consequently leading to a deadly crash with the police. The ECG office has since been shut down.
Residents vowed to resist the installation of prepaid meters while they called on ECG to write off debts owed by customers in Kroboland from 2018 to 2021.
Source: https://energynewsafrica.com
She told energynewsafrica.com that her outfit hopes to install as many meters within the shortest possible time due to the extra hands.
“Any customer who refuses the meters will have their power disconnected. Should a customer reconnect, they will be charged with an illegal connection. Should a customer decide to have a meter after a disconnection, they may have to apply for the service,” she warned.
The Municipal Chief Executive for Yilo Krobo, Eric Tetteh, urged all residents to cooperate with the ECG staff.
The installation of prepaid meters comes after years of an impasse between Krobo residents and ECG which escalated into devastating attacks on the ECG office in Somanya, consequently leading to a deadly crash with the police. The ECG office has since been shut down.
Residents vowed to resist the installation of prepaid meters while they called on ECG to write off debts owed by customers in Kroboland from 2018 to 2021.
Source: https://energynewsafrica.com Ghana’s Candidate For UNCLOS Position Lawrence Apaalse Outlines Vision
Ghana’s candidate for the Commission on the Limits of the Continental Shelf (CLCS), Lawrence Asangongo Apaalse, has pledged his commitment to fast-track the evaluation of submissions to the Commission if he is elected.
The Commission on the Limits of the Continental Shelf (CLCS), is one of the three institutions created under the 1982 United Nations Convention on the Law of the Sea.
The Commission plays two significant roles in the establishment of the outer limits of the continental shelf beyond 200 nautical miles of a Coastal State.
First, the CLCS is tasked to evaluate the claim of a Coastal State for an area of the continental shelf beyond 200 nautical miles.
Second, the CLCS may, upon request, also provide scientific and technical advice to the Coastal State in its preparation of its submission of the claim.
Mr. Apaalse, a former Chief Director at Ghana’s Ministry of Energy, is among candidates from across the world who are contesting to be commissioners of CLCS United Nations Convention on Law Of the Sea.
Mr. Apaalse played a key role in securing victory for Ghana against Ivory Coast in 2017 during the three-year Ghana-Ivory Coast maritime dispute.
Delivering a speech at a short ceremony organised by Ghana’s Embassy in the New York City, USA, Mr Apaalse said he has learnt a lot of lessons since 2006 when he started following the State parties’ meetings and would bring his experiences to bear if he is elected.
Touching on his vision, Mr Apaalse said one of the things he would do is to help accelerate the pace of evaluation of submissions to the Commission.
He noted that most of the submissions have remained on the shelves for several years, noting that it was about time these submissions were evaluated
Mr Apaalse holds a Master of Science Degree in Petroleum Geology and a Master of Science Degree in Micropaleontology from the Russian State University of Oil and Gas and University College London respectively.
The election is scheduled for Wednesday, June 15, 2022.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Energy Deficit Top Of Mind For The Government Of South Africa
A Minister at the Presidency of the Republic of South Africa, Mondli Gungubele, says the South African government is doing all it can to resolve energy challenges in the country.
“The commitment of this government is towards…zero emissions in 2050. So everything that we are doing now should always be in line with that. There’s a general principle that we are moving away from fossil fuels.
“This government will tirelessly [ensure] that we find the best possible offer in as far as energy requirements are concerned in the country…everything will be handled by the relevant departments, which are Minerals and Energy and Finance to do everything possible based on the circumstances that we are confronted with. Government is spending sleepless nights on that,” Mondli Gungubele said while delivering a speech at the just-ended Enlist Africa, formerly African Utilities Week in Cape Town, South Africa.
Mr Gungubele said Cabinet welcomed last week’s announcement by Eskom that the 800MW Kusile Power Station Unit 4 has been connected to the grid, and is expected to increase the power utility’s generation capacity.
“Our long-term energy security has been given a massive boost, following the commercial handover of Unit 4 at the Kusile Power Station in Mpumalanga. This handover marks another milestone in Eskom’s efforts to stabilise the power system and will add 800MW to the power grid,” he said.
The Minister said Cabinet has also welcomed the signing of three agreements between the Department of Mineral Resources and Energy and Scatec ASA, which is expected to build, at least, three renewable energy projects in the Northern Cape.
The three agreements were signed under the department’s Risk Mitigation Independent Power Producer Procurement Programme, which aims to plug the country’s energy deficit.
“Cabinet welcomed the addition of new generation capacity to the grid, which was made possible by the decision to allow independent power producers to produce electricity. The government recently signed an agreement to buy 150MW of capacity from a renewable power producer, Scatec ASA,” Mr Gungubele said.
Source: https://energynewsafrica.com
Ghana: George Sasraku Nipah Heads Systems Operations Of GRIDCo
The Ghana Grid Company (GRIDCo) has appointed George Sasraku Nipah as the Director of System Operations.
He replaces Ing Mark Baah, who is now the Director for Southern Network Services of GRIDCo.
Before his appointment, he was the General Manager, GRIDTel, a subsidiary of Ghana Grid Company.
He previously worked with the Volta River Authority (VRA) in various capacities as a Professional Telecommunications Engineer before joining GRIDCo.
In his current position, Mr Nipah’s responsibilities include governance oversight for the Systems Control Center, power system planning, regulatory affairs and the Wholesale Power Market.
He holds degrees in Electrical/Electronic Engineering from the Kwame Nkrumah University of Science and Technology (KNUST) and an MSc in Public Administration from the Ghana Institute of Management and Public Administration (GIMPA).
Mr Nipah is a member of the Ghana Institution of Engineers (GhIE).
He also serves on the Board of the African Utilities Telecom Council (AUTC).
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Nigeria: Nationwide Blackout As National Grid Collapses
Nigeria’s national grid has once again experienced system failure, resulting in nationwide blackout since 6.49pm on Sunday.
According to Abuja Electricity Distribution Company (AEDC), the development was responsible for the current power outage being experienced.
The disruption marked the 17th time the grid has collapsed in 2022.
A statement issued by AEDC on Sunday night appealed to its customers and those within its areas of operation for understanding as concerned authorities were working tirelessly to restore power supply.
“Please be informed that the current power outage is due to a system failure from the National Grid. The system collapsed at about 6.49pm today 12th June, 2022, causing the outage currently being experienced.
“We appeal for your understanding as all stakeholders are working hard to restore normal supply,” AEDC assured.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Ghana: Energy Sector Agencies, Others To Be Ranked On League Table
Energy sector agencies and other state enterprises in the Republic of Ghana will soon be ranked on a league table to assess their performance.
Among the state enterprises is the Ghana Grid Company (GRIDCo), Electricity Company of Ghana (ECG), Bui Power Authority, Ghana National Gas Company, Ghana National Petroleum Corporation (GNPC), Petroleum Commission, GOIL Company Limited, National Petroleum Authority, Bulk Oil Storage and Transportation Company (BOST), Tema Oil Refinery (TOR) and Volta River Authority (VRA).
The rest are the Tema Development Company (TDC), GIHOC, Ghana Cylinder Manufacturing Company, Ghana Airport Company Limited, National Lotteries Authority, Ghana Ports and Harbours Authority and State Transportation Corporation.
According to the Minister for Public Enterprises, Joseph Cudjoe, his outfit would, on June 30, 2022, officially launch the league table initiative.
He said the initiative would be concentrating on the targets set in the performance contracts of the various public sector enterprises and how best they have achieved them.
He said awards would be given to enterprises that performed very well and those sinking would be supported to upgrade their performance.
The aim of the league table, the Minister said, is to monitor the performance of the enterprises and ensure they are up to the task.
Hon. Joseph Cudjoe disclosed this when he paid a working visit to Ghana Grid Company Limited (GRIDCo) last Wednesday, June 8, 2022.
He said the government is also working hard to tighten performance contracting regimes to ensure the public enterprises meet the targets set in their contract.
He added that the government was putting in place measures including good governance practices in various institutions just as in the private sector.
He appealed to Ghanaians and authorities to help in safeguarding investments in state-owned enterprises.
Hon. Cudjoe explained that a lot of state resources had been invested in specified entities which include the SOEs, JVCs and regulatory firms, but those investments had not yielded the expected results in terms of performance, output and outlet.
According to him, the public sector works within the framework of government policy, the efficient and profitable operations of statutory corporations engaged in the trade.
Hon. Cudjoe expressed regret at the loss of investment in Ghana’s one-time automobile industry among others, which was mismanaged leading to their collapse.
The Minister and his entourage were taken to the Systems Control room.
On his part, Ing Ebenezer Essienyi, Chief Executive Officer (CEO) of the country’s power transmission company, GRIDCo, expressed gratitude to the Minister, who also happens to be the former Deputy Minister for Energy in charge of Finance and Infrastructure, for visiting the company.
Source: https://energynewsafrica.com
On his part, Ing Ebenezer Essienyi, Chief Executive Officer (CEO) of the country’s power transmission company, GRIDCo, expressed gratitude to the Minister, who also happens to be the former Deputy Minister for Energy in charge of Finance and Infrastructure, for visiting the company.
Source: https://energynewsafrica.com Biden Tells Exxon To Start Paying Its Taxes
With the U.S. Administration growing more desperate by the week as gasoline prices breach $5 per gallon in the United States, President Biden is now taking aim at individual oil and gas companies—namely, ExxonMobil.
A Biden statement attempting to address May inflation data contained harsh words—both for the oil industry as a whole and Exxon specifically.
“Why aren’t they drilling? Because they make more money not producing more oil,” he said. “Exxon, start investing and start paying your taxes.”
The President also said that they would make sure everyone knew how much Exxon was profiting.
“Exxon made more money than God last year.”
To be precise, Exxon’s net profit was $23 billion in 2021, making up for the $22.4 billion loss the year prior. Exxon’s 2021 profit came in behind Apple, Berkshire Hathaway, Alphabet, Microsoft, JP Morgan Chase, Meta Platforms, Amazon, and Bank of America—and barely eeked out a win over the Federal National Mortgage Association, Fannie Mae.
On the issue of taxes, Exxon’s income taxes for Q1 2022 alone were $2.8 billion dollars, with full year 2021 income taxes at $7.6 billion, according to Macrotrends and CSI Market.
Biden’s anti-oil statement follows a similar one from Thursday, where deputy director of the National Economic Council Bharat Ramamurti told CNN in a phone interview that “It’s outrageous that oil and gas companies are able to take advantage and make four times the profits that they made when there wasn’t a war.”
When asked about the potential for the White House to back a proposal for a windfall profit tax, Ramamurti said that they were “open to lots of different ideas. We realize there is a problem here we need to tackle.”
Source :Oilprice.com
Nigeria: We’re Working Tirelessly To Restore Power Supply To Ogun State-IBEDC
The Management of Ibadan Electricity Distribution Company (IBEDC) Plc has appealed to its numerous customers in parts of Ogun State that are currently without power supply.
The affected towns and communities are Papalanto, Arigbajo, Ejio Ifo, Agosti, Olomu road, Ososun village, Coker, Akinside, Ibogun, Oju-sango, PMakoto Babyoku, Agebgise, Ogun bade, Iyana Cele, Iyana Ilogbo, Owode, Ijako, Isorosi, Ishaka Igbala, Ijako-Sugar, Lagos/Abeokuta Expressway, Ilaro town and Igbogila.
The rest are Oja Odan, Ilaro poly, Pay, Idiroko, Ipokia, Lease, Igua, Farm settlement, Ibese, Ijoga, Ibara oriole, Ijoun, Imasayi, Abule oke, Maria, Yewa, Ajegunle, Abalabi, Akinside, Akinbo, Olorunsogo, Ilaro road, Weybridge, Gudugba, Abule Oko, Bonny Pie industries, Waterworks and Lapeleke.
A statement signed by the Chief Technical Officer, Engr Akin Abiodun, apologised for the disruption in supply and said that the outage was due to a heavy fault on a 33kV line that had a backlash on the grounding transformer at the TCN Sub-station at Papalanto.
The grounding transformer, which forms part of the power transformer’s protection, has to be replaced before the supply can be restored.
‘’Our technical team is working assiduously with their TCN counterparts to ensure power supply is restored as soon as possible” Engr Abiodun said.
He further explained that IBEDC is not insensitive to the effect of this outage on the customers.
“Once again, we sincerely apologise for the inconvenience and seek the understanding and patience of all in the affected communities.”
Source: https://energynewsafrica.com