Organisers of the Offshore Technology Conference (OTC) in Houston have postponed the 2021 event until August due to the Covid-19 pandemic.
Back in April the board of directors made the call to cancel the 2020 event due to “continued health and travel concerns”.
Now next year’s event, typically held in May, is being pushed back to August due to “ongoing challenges presented by Covid-19” and “out of the greatest care for the health and safety of our partners, attendees, exhibitors, staff and community”.
Hundreds of business men and women from north-east Scotland fly to Texas every year for the showpiece event.
OTC said it will be communicating with partners, speakers and exhibitors to develop new “in person and virtual plans” for the 2021 event, to be held on August 16-19.
News of two vaccines has broken in the last week, hoped to be a game changer for various industries, including events and offshore oil and gas, however it is unclear whether their roll-out will come in time for major conferences like OTC.
In a statement, organisers said: “By postponing OTC to the second half of 2021, we aim to preserve the significant work of the program committee and authors, as well as minimise the economic impact this decision has on businesses in Houston and throughout the industry.”
OTC was first held in 1969 and has blossomed into the world’s largest offshore oil and gas industry conference.
For north-east Scotland, the May events calendar should at least have Subsea Expo, a smaller event to be held at the P&J Live in Aberdeen.
Last week organisers confirmed the event, typically held in February, would be pushed to May due to the pandemic.
Subsea UK chief executive Neil Gordon said the three-month delay would help the organisation make sure exhibitors and delegates can make meaningful connections and learn about new business opportunities in safety.
Nigeria’s Liquefied Petroleum Gas, LPG, import dipped by 35.13 percent to 57,187.75 metric tonnes in vacuum, MT VAC, in September 2020, against 88,157.108 MT VAC recorded in the previous month, August 2020.
According to the September 2020 LPG supply data of the Petroleum Products Pricing Regulatory Agency, PPPRA, the LPG, also known as cooking gas, imported in September 2020, was 37.81 percent lower than the 91,951.263 MT VAC imported in September 2019.
Using average LPG price of $300 per metric tonne and official exchange rate of N386 to the United States’ dollar, the 57,187.75 MT VAC of LPG imported in September 2020, translates to $17.16 million, an equivalent of N6.34 billion; the 88,157.108 MT VAC of LPG imported in August 2020 translates to $26.45 million, an equivalent of N9.79 billion; while the 91,951.267 MT VAC of LPG imported in September 2019, translates to $27.585 million, an equivalent of N10.207 billion.
The report added that LPG valued at $40.97 billion, an equivalent of N15.159 billion, was supplied in the country in September, with a total of 136,569.1 MT VAC of LPG, 1.02 per cent lower than the 135,191.4 MT VAC of LPG, valued at $40.557 million, or N15.006 billion, recorded in September 2019.
PPPRA LPG supply data further stated that the volume of LPG, also known as cooking gas, supplied in September 2020, however, represented a decline of 10.53 per cent compared to the 123,554.33 MT VAC of LPG, valued at $37.066 million, an equivalent of N13.71 billion supplied in August 2020.
The PPPRA data revealed that out of the total volume of cooking gas supplied in September 2020, 57,187.75 MT VAC, representing 41.87 percent of the total, was imported, while 79,381.34 MT VAC of the commodity, representing 58.12 percent of the total was sourced locally. In comparison, in August 2020, 71.35 per cent of the LPG supplied in Nigeria was imported, while 28.65 per cent of the total was sourced locally, representing 88,157.108 Mt VAC and 35,397.221 MT VAC respectively.
In addition, of the 135,191.4 MT VAC of LPG supplied in September 2019, 91,951.263 MT VAC, representing 68.02 percent of total LPG supplied and 43,240.137 MT VAC of LPG, representing 31.98 per cent of the total were imported respectively. LPG imported from US, E’Guinea
The PPPRA report further stated that 45,148.396 MT VAC of LPG, representing 78.95 per cent of the 57,187.75 MT VAC of LPG supplied in September 2020 was imported from the United States, while 12,039.356 MT VAC of LPG, representing 21.05 per cent of the total, was imported from Equatorial Guinea.
In addition, the report noted that a total of eight companies were responsible for the total supply of cooking gas in the country in September 2020.
The companies, according to the report, are Matrix Energy, NIPCO, Algasco LPG Services Limited, a subsidiary of Vitol; Prudent Energy and Services Limited, Rainoil, Stockgap Fuels Limited, Nigerian Liquefied Natural Gas, NLNG and Ever Oil and gas.
In the import category, Matrix Energy brought in 6,380.319 MT VAC and 6,282.882 MT VAC of LPG from the United States of America; NIPCO imported 12,039.356 MT VAC of LPG from Equatorial Guinea; while Algasco imported 5,495.043 MT VAC and 16,045 MT VAC of LPG from the US.
In addition, Prudent Energy and Rainoil imported 5,345.514 MT VAC and 5,598.974 MT VAC of LPG from the United States, respectively.
In the locally-sourced category, Algasco obtained 17,730.162 MT VAC of LPG and 9,475.592 MT VAC from the Bonny River Terminal, BRT, NIPCO sourced 13,464.184 MT VAC and 3,741.719 MT VAC of LPG from the NLNG, Bonny; while Stock gap sourced 8,998.006 MT VAC and 9,480.627 MT VAC of LPG from the NLNG , Bonny.
Furthermore, the NLNG supplied 9,286.840 MT VAC of LPG, while Ever Oil sourced 6,962.884 MT VAC of LPG from the Bonny River Terminal.
Source :Vanguardngr.com
Sasol, an integrated energy and chemical company has announced that its Low Density Polyethylene Unite has reached beneficial operation.
The LDPE unit is the seventh and final Lake Charles Chemicals Complex unit to come online.
The LCCP is now 100 percent complete with total capital expenditure forecast to be within the previously communicated guidance of US$12,8 billion.
“This milestone safely brings our Lake Charles Chemicals Project to a close and sets the stage for the next step in the evolution of our chemicals business,” said Sasol President and Chief Executive Officer Fleetwood Grobler.
“The completion of this unit and its impending transition to our joint venture with LyondellBasell will accelerate our transformation to a more specialty chemicals-focused company with a strong presence of base chemicals in our portfolio.”
Sasol’s LDPE unit uses ExxonMobil technology and has a nameplate capacity of 420,000 tons per year (420 ktpa).
LDPE is used to manufacture plastic bags, shrink wrap and stretch film, coatings for paper cups and cartons, container lids, squeezable bottles, and other applications.
The beneficial operation of the final LCCP unit signals that 100% of total nameplate capacity of the LCCP is operational.
The LDPE unit is one of the three LCCP plants that will form part of the Sasol/LyondellBasell Louisiana Integrated Polyethylene joint venture.
To date, Sasol’s Lake Charles Chemicals Project has generated more than 800 full-time quality manufacturing jobs, with up to 6,500 people on site during construction, US$4 billion to Louisiana businesses and nearly US$200 million in local and state taxes.
Source:www.energynewsafrica.com
Ghana’s strategic oil stock keeping company, Bulk Oil Storage and Transportation Company Ltd (BOST) has congratulated Chamber of Petroleum Consumers (COPEC-Ghana) and Institute for Energy Security (IES) for winning prestigious awards.
The two energy think tanks received awards at two separate events.
COPEC-Ghana was adjudged Energy Institution of the Year at the 4th Ghana Energy Awards while IES was adjudged Energy Activist Of The Year Award at the Oil & Gas Ghana Awards.
Commenting on the award, Managing Director of BOST, Edwin Provencal, said: “We received the news of IES and COPEC being recognised for their advocacy role without surprise, knowing very well the level of advocacy they are playing in the downstream petroleum sector.
“These two institutions have brought to the attention of stakeholders’ issues that affect the industry and consumers in particular and make sure that BOST, as an institution, stays focused and fulfills its core mandate of ensuring that we keep strategic fuel stock to prevent fuel shortages in the country. We appreciate their work,” he said.
Mr. Provencal urged them not to hesitate to knock at the doors of BOST if they have concerns which need redress.
“Our doors are always open to engage stakeholders in the industry. We can only thrive in a peaceful and congenial environment. We, therefore, urge all our stakeholders to knock at our doors to engage us and not resort to any medium that can create tension among stakeholders.”
Source:www.energynewsafrica.com
By Dr. Kwame Ampofo
I have read, with amazement, the unsubstantiated and laughable claim made by Hon. Dr. Mohammed Amin Adam, Deputy Minister of Energy, at the Energy Manifesto Town Hall meeting organised by the Chamber of Bulk Oil Distributors (CBOD) in Accra on Friday, November 7, 2020, to the effect that NPP are better managers of the Energy Sector than the NDC.
According to Dr. Amin Adam, when the NDC is in power, it mismanages the energy sector, but when the NPP takes over, it manages the sector “very efficiently”. What a loose talk! What a baseless claim! May I ask what key performance indicators did the Honourable Deputy Minister use to arrive at those absurd conclusions? Dr. Adam could do himself a lot of good if he would share with us, the basis for his unguarded and sweeping claim.
Obviously, Dr. Adam must have just been playing to the gallery and indulging in lame propaganda, in an attempt to conceal the truth of their abysmal failures from his audience, while hoping to score some cheap political points.
With regard to the ECG, Dr. Adam claimed that the NDC left a debt of GHc2 billion, without indicating the source of that debt. Rather, the truth of the matter is that the NDC administration, in its determination to strengthen the financial base of the power sector, passed the Energy Sector Levy Act (ESLA) in 2016, which left a safe and reliable source of huge funds to help maintain a good financial health of the power sector. Indeed, ESLA raked in over GHC3 billion in 2017 alone and even more in the successive years, for the benefit of the Akufo-Addo regime, to secure the financial soundness of the sector. Sadly, Akufo-Addo and his NPP administration (of which Dr. Amin Adam is a leading member) have misapplied the fund, by mortgaging it for the next fifteen years (just as they have done with the GETFUND). It is, therefore, not surprising that Dr. Adam deliberately avoided the mention of the ESLA because he could not account for its use and explain why the sector still finds itself in such financial distress, even after four years of accumulated ESLA revenue.
Dr. Amin Adam further claimed that the current government had injected an amount of GHc4 billion into the operations of the ECG, even though there is no evidence to support this claim. If this assertion was true, then can the Honourable Deputy Minister explain why the Chamber of Independent Power Producers, Distributors and Bulk Consumers have served notice to the government about their resolve to shut down their power generating plants and withdraw their services totally? This notice, the Chamber explained, is to back their demand on the ECG and the government to settle at least 80% of their overdue receivables worth about a whopping US$1.0 billion!
Another evidence of the gross mismanagement and blatant corruption, in respect of the ECG, is how the Ministry of Energy, of which Dr. Adam is a Deputy Minister, facilitated the stealing of billions of Cedis from ECG by associates of the Presidency, through the shameful prosecution of the notorious PDS scandal. Through this obnoxious, criminal PDS deal, cronies (families and friends) of the Akufo-Addo government were aided by officialdom to illegally siphon and pocket over GhC2 billion in revenues belonging to ECG, that they illegally collected over a five months period, and simply allowed to walk away, while Dr. Adam and his Ministry of Energy simply looked on, unconcerned. This dirty PDS scam has also cost the State some US$500 million in lost grant money offered by the United States government, through the Millennium Challenge Account. Maybe Dr. Amin Adam will tell us what they are doing about this disgraceful thievery, to return the stolen money to ECG to improve the financial standing of the company and bring the perpetrators of this PDS scam to book.
It must be put on record that former President John Dramani Mahama and his NDC government conceived and initiated this Private Sector Participation (PSP) in the ECG Project, with good intension, to clean up the mess at ECG and make the company more efficient, by injecting private capital and modern technology into its operations. The NPP government inherited this laudable initiative of the NDC but quickly turned it into a criminal stealing opportunity for the family and friends of President Akufo-Addo, and a dreadful nightmare for the rest of us, the people of Ghana.
Other prominent corrupt practices recorded under this NPP administration in Dr. Amin’s energy sector, include:
(a) The Ameri scandal, that caused the sacking of his first boss, the former Minister for Energy
(b) The BOST contaminated fuel scandal
(c) The persistent theft and diversion of premix fuel meant for the fishing industry,
(d) The Ghana Cylinder Manufacturing Company scandal, to mention only a few.
Indeed, this government’s tenure of office has been characterised by one scandal after another, all of which have cost the good people of Ghana so much in financial loss to the state. So, how could Dr. Adam possibly describe, as “very efficient”, such scandals-riddled governance of the Energy Sector under his supervision?
With reference to the debate, as to whether the power crisis was resolved by the NPP or the NDC, all that Dr. Adam had to say was that, “the NDC did not plan well to put in the mechanism to flow our gas from the West to the East where we have most of the generation capacity”. This assertion by the Deputy Minister is totally false, as the idea of reverse flow of processed natural gas is our NDC engineering plan, that is contained in our handing over notes to them. But, this is a whole topic that I wish to reserve for my next write-up (which will be devoted solely to how the “dumsor” menace was fixed by the NDC, under former President John Dramani Mahama).
I wish to conclude that, verifiable facts and figures in the energy sector, coupled with evidence, already in the public domain and thus, known to the good people of Ghana through media reportage, discussions and debates, point to the fact that the Ministry of Energy under this NPP government, have woefully underperformed. The relative stability in the sector that we are enjoying currently is by virtue of the hard work, foresight and achievements in infrastructural development, coupled with prudent energy sector policies put in place by the past John Mahama government of the NDC.
Source:Dr. Kwame Ampofo (Former Chairman of Energy Commission Under Erstwhile John Dramani Mahama)
Tel: 0243312497
FACT SHEET
President Trump has spent his presidency ignoring the experts and scientists, reversing the Obama-Biden Administration’s efforts to address climate change, abandoning communities and workers, and blocking states and cities trying to lead— going backwards, all while we should have been doing even more.
On the first day of Biden’s Administration, according to the Intergovernmental Panel on Climate Change, there will only be 9 years left to stop the worst consequences of climate change. Biden will act on climate immediately and ambitiously, because there’s no time to waste.
Here are 9 key elements of Joe Biden’s plan for a Clean Energy Revolution and Environmental Justice:
1) Take executive action on Day 1 to not just reverse all of the damage Trump has done, but go further and faster.
Day 1 of the Biden Administration is going to be very busy! To immediately make progress on his climate agenda, Biden will take actions including requiring aggressive methane pollution limits for new and existing oil and gas operations; developing rigorous new fuel economy standards aimed at ensuring 100% of new sales for light- and medium-duty vehicles will be zero emissions and annual improvements for heavy duty vehicles; protecting America’s natural treasures by permanently protecting the Arctic National Wildlife Refuge and other areas impacted by President Trump’s attack on federal lands and waters; and banning new oil and gas leasing on public lands and waters.
2) Work with Congress to enact in 2021, President Biden’s first year in office, legislation that, by the end of his first term, puts us on an irreversible path to achieve economy-wide net-zero emissions no later than 2050.
The legislation must require polluters to bear the full cost of the carbon pollution they are emitting.
3) Rally the world to urgent and additional action. We know we cannot solve this emergency on our own: the United States accounts for only 15% of global emissions.
On Day 1, Biden will rejoin the Paris Climate Agreement. But we must go further. In his first 100 days in office, Biden will convene a climate world summit to directly engage the leaders of the major greenhouse gas-emitting nations of the world to persuade them to join the United States in making more ambitious national pledges, above and beyond the commitments they have already made. Biden will not allow other nations, including China, to game the system by becoming destination economies for polluters, undermining our climate efforts and exploiting American workers and businesses.
4) Make a historic investment in clean energy and innovation.
Biden will invest $400 billion over ten years, as one part of a broad mobilization of public investment, in clean energy and innovation. That investment is twice the investment of the Apollo program which put a man on the moon, in today’s dollars. He will also establish ARPA-C, a new research agency focused on accelerating climate technologies.
5) Accelerate the deployment of clean technology throughout our economy.
Creating the best, most innovative clean technology in the world is not enough. We also need to make sure it is used by households and industry in order to achieve aggressive emissions reductions. Biden will set a target of reducing the carbon footprint of the U.S. building stock 50% by 2035, creating incentives for deep retrofits that combine appliance electrification, efficiency, and on-site clean power generation. He will work with our nation’s governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030. And, Biden will ensure our agricultural sector is the first in the world to achieve net-zero emissions, and that our farmers earn income as we meet this milestone.
6) Make environmental justice a priority across all federal agencies. Everyone is already feeling the effects of climate change. But the impacts of climate change (and inaction on climate change) – on health, economics, and overall quality of life – are far more acute on communities of color, tribal lands, and low-income communities.
The coronavirus pandemic, which early data suggests is linked to air pollution that disproportionately affects communities of color and low-income communities, is shining new light on this reality. Biden will make it a priority for all federal agencies — and hold them accountable for results — to engage in community-driven approaches to develop solutions for environmental injustices affecting communities of color, low-income communities, and indigenous communities.
7) Hold polluters accountable.
On Day 1, Biden will require public companies to disclose climate-related financial risks and the greenhouse gas emissions in their operations and supply chains. In his first year, he’ll work to enact legislation requiring polluters to bear the full cost of their climate pollution. But that’s not all: Biden will direct his EPA and Justice Department to pursue these cases to the fullest extent permitted by law and, when needed, seek additional legislation to hold corporate executives personally accountable – including jail time when merited. Allowing corporations to continue to pollute – affecting the health and safety of both their workers and surrounding communities – without consequences perpetuates an egregious abuse of power. These companies must be
accountable to the American people, the communities where they operate, and the workers they employ.
8) Create 10 million good-paying, middle-class, union jobs.
Every federal dollar spent on rebuilding our infrastructure during the Biden Administration will be used to prevent, reduce, and withstand the impacts of this climate crisis. American workers should build American infrastructure and manufacture all the materials that go into it, and all of these workers must have the option to join a union and collectively bargain. Biden will ensure his infrastructure legislation incorporates labor provisions so federal investments create millions of middle-class jobs, benefiting workers across industries.
9) Fulfill our obligation to the communities and workers that have risked their lives to produce fossil fuels that made it possible for America to win world wars and become an industrial power.
Biden will stand with communities and workers impacted by the changing energy market, including by increasing coal companies’ payments into the black lung benefits program, reforming the black lung benefits system so it is no longer rigged in favor of coal companies who can hire lawyers and doctors to ensure miners’ benefits are denied, expanding efforts to help miners detect black lung cases earlier and access care, and enforcing regulations to reduce cases of black lung in the first place. Biden will also establish a task force to help these communities access federal investments and leverage private sector investments to help create high-paying union jobs based upon the unique assets of each community, partner with unions and community colleges to create training opportunities for these new jobs, repair infrastructure, keep public employees like firefighters and teachers on the payroll, and keep local hospitals open.
Read Biden’s full climate and environmental justice plan at joebiden.com/climate
The hope of the President-elect of United States of America, Joe Biden, to implement his new policy to control permits for drilling oil and gas would have dire consequences for Sub-Saharan African economies, Dr. Babajide Agunbiade, a Director of National Oilwell Varco, has said.
According to him, he foresees that without political sheltering by Trump’s leadership in Washington, U.S majors like ExxonMobil and Chevron, which have remained focused on the traditional energy business, are beginning to implement strategies for global energy transition like BP and Royal Dutch Shell.
This, he said, would lead to drastic reduction in fossil fuel, which is the main stay of many oil and gas producing countries in that area.
“The implication for Sub-Saharan oil and gas production is that with renewable energy taking the more central stage during the Biden-administration, fossil fuel demand will continue to decline, leading to reduced drilling, production and exploratory activities,” he emphasised in an interview with energynewsafrica.com.
In effect, he stressed that many nations in Sub-Saharan Africa would suffer job losses just like the United States of America and Europe.
This step, Dr. Agunbiade said could equally lead to reduction in global demand for hydrocarbon as a result of the new focus on more desire for renewable energy options in the energy metrix.
Dr. Agunbiade, who is an expert in subsea engineering, noted that should Biden go ahead and ban issuance of federal lands and waters, as well as leasing on public lands, it would automatically result in protecting the climate from further destruction, but would also impact on revenues for Sub-Saharan economies.
“There will be low or zero-carbon energy production, green industry manufacturing and more climate friendly regulations,” he stressed, but assured that Sub-Sahara might not have an immediate plan to shift to renewable energy.
He further anticipates removal of subsidies for fossil fuel, which environmentalists hint pumps about US$2 billion annually into the green industry.
Source: www.energynewsafrica.com
The Government of Ghana has released funds to settle part of its indebtedness to the Independent Power Producers in the West African nation.
According to the Deputy Minister for Finance, Charles Adu Boahen, the government has been making financial commitment to the IPPs and wondered why they have constantly been issuing threats to it.
“The IPPs are getting paid,” Mr. Charles Adu Boahen said in a response to a text message sent to him via the telephone.
The Chamber of Independent Power Producers Bulk Consumers and Distributors (CIPDiB), the umbrella body of the IPPs, last Thursday, November 12, 2020, served a warning notice to the CEO of Ghana Grid Company (GRIDCo) and the Ministry of Energy about their intention to shut down their power plants over failure of the government to settle its indebtedness.
As at July, 2020 government owed IPPs to the tune of US$1.5 billion.
However, the government has managed to pay half a billion dollars of the debt, reducing the total debt to about US$1 billion.
It is not clear how much has been paid but sources within the IPPs Chamber told energynewsafrica.com that the government started crediting the account of their members last Friday, stressing that they are hoping that by
Monday, each of the IPPs would have received their portion of the amount released.
Though the source could not tell the quantum of the amount, it said it was below their expectations.
Ghana has about 21 power plants with total installed capacity of about 5,050MW.
Out of the 21 power plants, the state owns 10 with a total capacity of 2,270MW while the IPPs own 11 with a total capacity of 2780MW.
Source: www.energynewsafrica.com
BP, a British multinational oil and gas firm, has announced the introduction of a new robotic crew member on its Mad Dog platform in the Gulf of Mexico.
In a tweet sighted by energynewsafrica.com, BP said: “Spot is performing autonomous operator rounds on the production deck and we believe spot can improve safety and efficiency,’’
Commenting on the new innovation, Facilities Technology Manager, Adam Ballard said: ‘‘One way to drive digital transformation on BP’s sites is to deploy robots for the inspection of its remote facilities. In this application, the robots will do the work of people by performing tasks like scanning for abnormalities, tracking corrosion, or checking gauges.
Introducing our newest crew member on the Mad Dog platform in the Gulf of Mexico – Spot, the @BostonDynamics robot ?. Spot is performing autonomous operator rounds on the production deck and we believe Spot can improve safety & efficiency
“I see robots as being the eyes, ears, nose and other senses at our sites,” Ballard said.
“It is about being able to use sensors to have that real-time understanding, and to get the context of the facility for someone such as an office-based employee that’s trying to help troubleshoot a job or a piece of equipment—while minimising the exposure of people to these potentially dangerous environments.”
This use of Spot would help BP reach one of its key goals: improving employee safety by keeping people away from potentially hazardous work environments.
“There are thousands of pounds of pressurised combustible material out there,” Ballard said.
“High-pressure oil and gas can create risks for people working in close proximity. If we could have a robot with the proper sensors out there, we’d much rather do that.”
Improving safety isn’t the only thing Spot can do for BP. When these robots are out on remote sites, they can improve operational efficiency by gathering larger data sets on how equipment on these sites performs.
As Yasser Bangash, Senior Facilities Engineer on the innovation and engineering team explained: “If you send a human out, they can look at two or three things at a time. A robot, like Spot, can have several different sensors or cameras on it, and process all that information at the same time.”
Meanwhile, the operators back in a secure location can focus on applying judgement to the information in order to make smart decisions rather than data collection.
With the election of U.S Democratic Party’s Presidential candidate Joe Biden, as the 46th President of the United States of America, the question many oil and gas industry watchers are asking is how the future of oil and gas industry with Joe Biden in the helm of affairs will be.
Energynewsafrica.com reached out to Dr. Babajide Agunbiade, a Subject Matter Expert in Subsea Engineering and Director at National Oilwell l Varco, to seek for the implications of U.S oil and gas industry with Joe Biden in the helm of affairs.
Below is the response of Dr. AgunbiadeDr. Babajide Agunbiade
I believe the following agendas will drive Joe Biden’s Energy policy: First, An irreversible path to achieve economy-wide net-zero emissions by 2050. Secondly, a drive towards a historic investment in clean energy and innovation and finally, requiring aggressive methane pollution limits for new and existing oil and gas operations; developing rigorous new fuel economy standards aimed at ensuring 100% of new sales for vehicles will be zero-emissions; protecting America’s natural treasures by permanently protecting the Arctic National Wildlife Refuge and other areas impacted by President Trump’s policy on federal lands and waters; banning new oil and gas leasing on public lands and waters.
While Trump had sought to maximize domestic oil and gas production within the United States, Biden will ban the issuance of new drilling permits on federal lands and waters to fight global climate change.
According to data from the Interior Department, the US produced nearly 3 million barrels of crude oil per day from federal lands and waters in 2019, along with 13.2 billion cubic feet per day of natural gas.
That amounts to about a quarter of total domestic oil output and more than an eighth of total US production of gas. A federal ban on new permits would mean those numbers trend toward zero over a matter of years.
I foresee that without the political sheltering by Trump’s leadership in Washington, U.S. majors like ExxonMobil and Chevron that have remained focused mainly on the traditional energy business will begin implementing strategies for a global energy transition more like European oil and gas companies like BP and Royal Dutch Shell.
The implication for Sub-Saharan Oil and gas production is that with renewable energy taking the more central stage during the Biden administration, fossil fuel demand will continue to decline, leading to reduced drilling, production and exploratory activities.
Impact
There would also be an impact on global and the US public revenues – Oil and gas production generated about $12 billion in public revenue in 2019, divided between the US Treasury, states and counties, tribes, and cleanup funds.
According to Wood Mackenzie, 2020, there’s Potential legal Implications – Upstream producers have already invested billions of dollars into exploration and development projects. In US GoM alone, companies have invested over US$180 billion since 2005 in drilling and exploratory activities on the land the Biden government is looking to ban.
There would be removing subsidies for fossil fuels, which, some environmentalists say, inject roughly $20 billion into the industry annually.
There would be an emphasis on low or zero-carbon energy production, green industry manufacturing, and more climate-friendly regulations.
There will be generous government research grants to renewable energy start-ups. The solar and wind producers will enjoy munificent tariffs, and, hopefully, the nuclear industry and fusion pioneers.
Potential job losses in areas that traditionally rely on oil and gas employment.
However, this could be balanced out by Biden’s plan that would create millions of new jobs.
There is a further decrease in global demand for hydrocarbons due to renewable Energy options coming to play, which will impact the already volatile oil prices.
Conclusion
To conclude, it will be imperative for the incoming federal government to maintain a balanced curve in passing such legislation. The Oil and Gas industry still maintains a reliable place in annual revenue generated. Biden’s proposals could bring about some of the most substantial deviations that the US offshore industry has ever seen. Careful thoughts need to be made. After all, not every President has fully stuck with their pre-election promises. The fact that Biden mentioned that he wouldn’t end fracking could be a good omen and some light at the end of the tunnel for the USA oil and gas industry.
Dr. Babajide Agunbiade is a Subject Matter Expert in Subsea Engineering and Director at National Oilwell Varco, based in Houston, Texas, United States
Ghana requires an additional generation capacity of about 225MW in 2023 and 480MW beyond 2024 in order to meet electricity demand, a study has revealed.
The West African nation has an installed energy generation capacity of 5,050MW comprising hydro, thermal and other renewable energy sources.
However, dependable generation is 4,742MW while available generation is around 3,181MW with peak demand hovering around 2,957MW as at March 2020.
Making a presentation at the second day of the 9th Ghana Economic Forum, which focused on Energy Sector, Mr. Wisdom Ahiataku-Togobo, Director of Renewable and Alternative Energies at the Ministry of Energy, said electricity demand, is projected to grow by 11 percent.
“Looking at our energy demand and supply output, we have been hearing always about excess demand. Yes, but how does it project into the future? This is a study from the power sector institutions and it shows clearly that Ghana has adequate generation to meet demand till around 2023. Beyond 2023, there is the need to add 225MW to be able to meet the 18 percent reserve margin requirement,” he said.
Challenges In The Sector
Touching on the current challenge confronting the power sector, Mr Ahiataku-Togobo said there is the issue of increased generation capacity currently in excess of demand, higher electricity generation cost resulting in reduced demand for power for industrialisation, loss of revenue due to payments of capacity charges on ‘Take or Pay’ PPAs, weak transmission and distribution infrastructure leading to high technical and commercial losses, delay in payment of electricity utility bills by residential and non-residential consumers and in particular government buildings-MDAs, hospitals, schools, security services among others-and difficulty to extend electricity to the hard to reach islands and lakeside communities along the Volta Lake.
According to him, the ‘Take or Pay’ situation is getting worse with more service sectors shifting to the use of diesel and solar powered complementary generation; further reducing demand on utility distribution system.
Measures To Address The Issues
On the measures to address the challenges in the power sector, Mr Ahiataku-Togobo mentioned that steps have been taken to negotiate for price reduction for existing IPPs in operation, re-scheduling Commercial Operation Dates (COD) of new IPPs with PPAs and renegotiating price downwards, transition from use of HFO to NG for thermal power plants, explore cheaper power generation options below 6cents/kWh to support industrialisation, placing moratorium on PPAs for new power plants (Thermal and Renewable) until issues with excess generation are addressed, as well as implementing Cash Water Fall Mechanism (equitable distribution of revenue alone the value chain).
Other measures he said are being pursued include implementing innovative mechanism for electricity consumers to regularly pay their own electricity bills (Prepaid meters, Gov. Go Solar Programme etc.), Short to medium term policy directions in the power sub-sector, procuring new power generation plants through competitive bidding, strengthening and upgrading strategic transmission networks to support rural electrification and enhance power export to neighbouring countries, replacing absolute and inefficient networks some of which are over 50 years, reducing technical and commercial losses in distribution networks; prepaid meters among others and supporting investments in renewable energy sub-sector, particularly in mini-grid and offgrid systems for remote communities not easily accessible by road.
Source: www.energynewsafrica.com
Ten people have reportedly been hospitalised after they sustained various degree of injuries following a fire outbreak at Abrofo Mpoano near Cape Coast Castle in the Central Region of the Republic of Ghana.
According to Citinewsroom.com, eyewitnesses account indicated that the fire razed a premix fuel station and destroyed scores of structures including shops in the vicinity.
The incident happened immediately after a fuel tanker discharged a premix fuel at the station.
“Upon assessment of the situation, we realised they needed assistance because the situation was more than they expected. So we had to deploy two additional fire tenders. So it took us about two hours before we were able to bring the fire under control,’’ DO3 Abdul Wasiu Hudu, a fire officer was quoted as saying.
Some outboard motors, a number of canoes and fishing nets wers said to have been destroyed by the fire.
Investigation into the actual cause of the fire has begun.
Saudi Arabia has thwarted a planned attack with explosives against an oil products terminal near the border with Yemen, the Kingdom said early on Friday, adding that the attempted attack was the deed of the Iran-aligned Houthi rebels in Yemen.
Saudi forces intercepted and destroyed on Wednesday evening two unmanned boats carrying explosives to a floating offloading platform that belongs to an oil products terminal at the port city of Jizan in southwestern Saudi Arabia just north of the border with Yemen, the official Saudi Press Agency reported early on Friday, quoting an official source at the Saudi Ministry of Energy.
The operation resulted in a limited fire on the platform’s floating hoses, which was soon extinguished and caused no injuries or fatalities, the Saudi agency said.
“The Kingdom of Saudi Arabia strongly condemns the cowardly attack, adding that such criminal acts directed against vital facilities do not target the Kingdom alone, but they also target the security of oil exports, the stability of energy supplies to the world, the freedom of international trade, and the entire global economy,” the energy ministry source told the Saudi Press Agency.
Houthi rebels have frequently attacked, or tried to attack, oil infrastructure in Saudi Arabia, especially facilities close to the border with Yemen, that are within rocket or unmanned drone reach.
Saudi Arabia, for its part, often claims it has foiled attacks from the Houthi rebels.
Since 2015, Saudi Arabia and Iran have been essentially fighting a proxy war in Yemen, where the Saudis lead a military Arab coalition to “restore legitimacy” in the country, while the Houthi movement, which holds the capital Sanaa, is backed by Iran.
The Houthis have claimed responsibility for the September 14 attacks on Saudi Aramco’s oil facilities that cut off 5 percent of daily global supply for weeks. But Saudi Arabia and the United States have said that it was Iran—and not the Houthis—who was responsible for the attack.
The Saudis and the U.S. blamed the attack on Iran, claiming evidence showed the missiles had been fired from the north rather than the south, where Yemen is.
Source: Oilprice.com
The African Development Bank and the Government of Uganda have signed a $500,000 grant agreement for financing of Micro, Small and Medium Enterprises (MSMEs) to boost business linkages on the East African Crude Oil Pipeline Technical Assistance project.
The project’s overall objective is to help develop capacity of local Uganda MSMEs along the East African crude oil pipeline, by enabling them to access new market opportunities, and building linkages with larger, national, regional and international companies.
The project aims to support inclusive private sector growth and the creation of an estimated 500 jobs along the pipeline.
Through the Fund for African Private Sector Assistance (FAPA), the Bank will contribute $500,000 to the project. The Government of Uganda through the Petroleum Authority will provide counterpart funding. A similar project is being finalised on the Tanzanian side of the border.
The grant was provided in response to a request from Uganda and Tanzania for assistance in preparing local business communities to be able to retain a portion of the $3.5 billion investment in the construction of a crude oil pipeline from Hoima in western Uganda to Tanga, on the Coast of Tanzania, agreed in 2016. This has recently been followed by the signing of an agreement in September 2020 between the two governments, for the project to be undertaken by Total E&P as the lead private sector developer.
The grant agreement was signed on 17 September by Bank Acting Senior Vice President and Chief Finance Officer Swazi Tshabalala on behalf of the African Development Bank, and Matia Kasaija, Ugandan Minister of Finance, Planning and Economic Development.
The target is to have at least 100 local micro business in Uganda and Tanzania trained to do business on the pipeline project. It is also expected to link at least 70 business enterprises or other relevant business transactions undertaken on the pipeline. With the increased number of enterprises joining petroleum supplier databases in both Uganda and Tanzania, new job opportunities would also be created for about 500 people.
FAPA is a multi-donor thematic trust fund which provides grant funding for technical assistance and capacity building to support implementation of the Bank’s Private Sector Development Strategy. Japan and Austria, and the African Development Bank are active contributors to the Fund, which to date has provided over $69 million to 87 projects in over 38 countries across the African continent.
The FAPA portfolio includes regional and national projects aimed at improving the business environment, strengthening financial systems, building private sector Infrastructure, promotion of trade and development of Micro-, Small- and Medium- Enterprise.
Additional information on FAPA can be obtained from the following link https://bit.ly/36x47fl or contact to [email protected] for specific requests.
“Looking at our energy demand and supply output, we have been hearing always about excess demand. Yes, but how does it project into the future? This is a study from the power sector institutions and it shows clearly that Ghana has adequate generation to meet demand till around 2023. Beyond 2023, there is the need to add 225MW to be able to meet the 18 percent reserve margin requirement,” he said.
Challenges In The Sector
Touching on the current challenge confronting the power sector, Mr Ahiataku-Togobo said there is the issue of increased generation capacity currently in excess of demand, higher electricity generation cost resulting in reduced demand for power for industrialisation, loss of revenue due to payments of capacity charges on ‘Take or Pay’ PPAs, weak transmission and distribution infrastructure leading to high technical and commercial losses, delay in payment of electricity utility bills by residential and non-residential consumers and in particular government buildings-MDAs, hospitals, schools, security services among others-and difficulty to extend electricity to the hard to reach islands and lakeside communities along the Volta Lake.
According to him, the ‘Take or Pay’ situation is getting worse with more service sectors shifting to the use of diesel and solar powered complementary generation; further reducing demand on utility distribution system.
Measures To Address The Issues
On the measures to address the challenges in the power sector, Mr Ahiataku-Togobo mentioned that steps have been taken to negotiate for price reduction for existing IPPs in operation, re-scheduling Commercial Operation Dates (COD) of new IPPs with PPAs and renegotiating price downwards, transition from use of HFO to NG for thermal power plants, explore cheaper power generation options below 6cents/kWh to support industrialisation, placing moratorium on PPAs for new power plants (Thermal and Renewable) until issues with excess generation are addressed, as well as implementing Cash Water Fall Mechanism (equitable distribution of revenue alone the value chain).
Other measures he said are being pursued include implementing innovative mechanism for electricity consumers to regularly pay their own electricity bills (Prepaid meters, Gov. Go Solar Programme etc.), Short to medium term policy directions in the power sub-sector, procuring new power generation plants through competitive bidding, strengthening and upgrading strategic transmission networks to support rural electrification and enhance power export to neighbouring countries, replacing absolute and inefficient networks some of which are over 50 years, reducing technical and commercial losses in distribution networks; prepaid meters among others and supporting investments in renewable energy sub-sector, particularly in mini-grid and offgrid systems for remote communities not easily accessible by road.
Source: www.energynewsafrica.com
