Lowering The Vulnerability Of Climate Change Impacts Through Regulations (Opinion)
By: King A. Wellington
Globally, governments must be committed to ensuring that countries are adapting to the effects of climate change. Governments may take action either to achieve a more efficient outcome than would otherwise occur, or on distributional grounds, as is the standard approach to policy making. This also means that in designing and implementing policies, programmes and investments, governments must consider the impacts of climate change.
It is a general school of thought that for climate change, mitigation measures and adaptation to the changes are the two main approaches that will prevent climate change from happening. This notwithstanding, there are certain key regulatory decisions when taken will help lower the vulnerability of climate change impact.
Firstly, there is the need to increase the use of zero or low carbon energy sources (clean energy). Following Denmark’s footsteps to target 2050 as a benchmark year to fully adopt low carbon energy sources is a good start for most countries especially developed nations. This is because clean energy technologies are recognized as sure contributors to climate change mitigation. Clean energy technologies include renewable energy (wind power, solar power, biomass, hydropower, biofuels, geothermal, ocean energy, etc.), energy efficiency, electric vehicles, the use of carbon sinks (carbon capture and storage, and reforestation) and nuclear power.
Secondly, afforestation must be prioritized while deforestation must be curtailed or managed using the principles of sustainable forest management. Planting of trees must be encouraged on a broader scale and environmental laws must be enforced. Governments and non-governmental organizations must directly engage in afforestation programs to expand the global forests base.
Thirdly, laws that promote Carbon Capture and Storage (CCS) must be enacted. CCS is the process of capturing waste carbon dioxide (CO2) usually from large point sources, such as factories, transporting it to a storage site, and depositing it so it does not escape into the atmosphere. The aim is to prevent the release of large quantities of CO2 into the atmosphere from heavy industry. It is a potential way of mitigating carbon dioxide emissions from industry. Carbon dioxide can be captured directly from the air or from an industrial source (such as power plant flue gas) using a variety of technologies, including absorption, adsorption, chemical looping, membrane gas separation or gas hydrate technologies.
Furthermore, the transportation sector must be retooled. There must be regulations to reduce CO2 in the transportation sector. Technical changes must be made and laws enacted to ensure behavioural changes and improvements. This is because it has been reported that the transport sector accounts for 23% of global energy related greenhouse gas (GHG) emissions. Clean transport technologies such as electric vehicles (EVs), battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric such as hydrogen vehicles and biofuel vehicles should be encouraged, adopted and used.
Additionally, standards and regulations must be developed and implemented across all sectors of the economy. Electricity must be produced from low carbon sources and there must be increased contribution of bio fuels and hydrogen fuel cells obtained from low carbon sources in every aspect of the economy.
Also, financial incentives help to lower the vulnerability of climate change impact. This is because financial incentives triggers change of behaviour and equip companies with the needed capital to implement clean energy technologies in their operations. For instance flexible loan schemes can be made available for people and businesses to access to cushion their transition to clean energy.
Furthermore, a long-term cooperative arrangement between the public and private sectors that implements climate change mitigation measures throughout its lifespan should be encouraged. Typically, a public private partnership provides better infrastructure solutions, ensures faster project completion and reduces delays in infrastructure projects. It also ensure greater return on investment through innovative design and financing approaches, safeguards a project from potential risks, increases efficiency and ensures high-quality standards for projects.
Next, charges and subsidies are also ways to lower the vulnerability of climate change impact. For instance, charging a penalty for importing over aged cars with higher CO2 emission and banning the importation of low efficient fridges and air conditions will help a country to lower its vulnerability of climate change impact.
Finally, citizens also play a critical role in lowering the vulnerability of climate change impact in a country. A regulatory decision to ensure that people change their lifestyles such as diet habits, reducing food waste, and modifying consumption patterns, transportation, choosing longer lasting products and being energy efficient will help to lower a country’s carbon footprint.
Siemens Energy To Cut 7,800 Jobs
German Energy group Siemens, which supplies turbines to the power sector, has announced plans to cut 7,800 jobs to counter a drop in demand for new coal-fired energy stations that has also hit rivals General Electric and Mitsubishi Heavy Industries.
Siemens Energy last year announced it would no longer bid in tenders to supply turbines to coal-fired power plants, responding to a weakening market as numerous governments around the world are phasing out the polluting fuel.
The jobs to be lost represent 8.5% of the company’s workforce. The bulk of the cuts will be implemented by 2023 and incur restructuring costs in a mid- to high-triple-digit million euro range for the fiscal years 2020 to 2023, it said.
“The energy market is significantly changing which offers us opportunities but at the same time presents us with great challenges,” Chief Executive Christian Bruch said.
“We will undertake these measures in the most socially responsible way possible.”
In a sector shaped by fierce rivalry, General Electric filed a lawsuit last month accusing a unit of Siemens Energy of using stolen trade secrets to rig bids for gas turbine contracts.
Bruch said Siemens Energy had received the lawsuit, adding it would carefully examine the claims.
Cost cuts also helped Siemens Energy, spun off from Siemens AG last year, swing to a net profit of 99 million euros ($119.5 million) in the first quarter of its fiscal year, compared with a loss of 195 million a year ago.
By cutting costs, Siemens Energy hopes to reach its 2023 profit target, which foresees a margin on adjusted earnings before interest, tax and amortisation of 6.5%-8.5%.
The company also holds a majority stake in Siemens Gamesa, the world’s second-largest wind turbine maker after Denmark’s Vestas, which is benefiting from a global shift towards renewable energy and away from fossil fuels.
Source: www.energynewsafrica.com
Ghana: Nuclear Power Plant Is Needed For Reliable Electricity-Energynewsafrica.com Managing Editor
The Managing Editor of energynewsafrica.com, an online portal operated in the Republic of Ghana, West Africa, Mr. Michael Creg Afful is urging Ghanaians not to pay attention to those opposing the country’s quest to introduce nuclear power generation into the energy mix.
Many uninformed people have been misinforming others about only the atomic use of nuclear and also claiming that nuclear energy is very expensive and takes time to build as compared to wind and solar power plants.
Ghana’s energy sources have been mainly from hydro and thermal with the recent addition of solar and biomass.
To ensure energy sustainability, Ghana has decided to join countries like USA, France, China, Russia, Korea, India and Canada which form part of over 20 countries in the world having 449 nuclear reactors.
Ghana’s nuclear power agenda dates back in 1963 when the Ghana Atomic Energy Commission was established with the launch of 2MW research reactor.
The decision was, however, suspended until 2008 when a Cabinet decision was taken to include nuclear in the electricity generation mix.
Since then, successive governments have shown maximum support and cooperation towards the realisation of this goal.
In 2017, the current administration proceeded to establish the Owner /Operator Organisation-Nuclear Power Ghana (NPG) which has been duly registered as a limited liability company for the Nuclear Power Plant.
Speaking as a panelist on an Accra-based Awake TV show Analyst programme on the prospects of Renewable Energy Sector, Mr. Creg averred that though nuclear energy takes time to build, it is more reliable, cheaper and profitable to developing economies such as Ghana and Africa as a whole contrary to what critics are saying.
“Since the issue of Fukushima Daiichi nuclear disaster (2011), the Chernobyl disaster (1986), the Three Mile Island accident (1979), are we saying there had not been research to improve nuclear technological development?” he queried.
Mr. Creg Afful, who said he is not an authority on nuclear, went on to cite examples of an article written by a South African-based scientists Dr. Kelvin Kemm and Knox Msebenzi, Managing Director of Nuclear Industry Association of South Africa under the heading ‘Nuclear Power: A sensible and sustainable option for Africa’ to support why nuclear energy has improved South Africa’s economy.
He also quoted Eng. Collins Gordon Juma, CEO of Nuclear Power and Energy Agency of Kenya, who recently made a presentation at a symposium organised by the Federation of African Engineering Organizations (FAOE) via zoom, which he participated.
He said that nuclear power technology has been used for over 50 years with only three incidents, stressing that there has been improvement in the technology since those three incidents.
According to Mr. Creg Afful, Eng. Gordon Juma stated that for Africa to industrialise, it must invest in nuclear power plants since it is more reliable and cheaper.
Mr. Creg Afful said the expert extolled the advantages of nuclear power generation as a vehicle to speed Africa’s industrial drive if taken full use of it.
“Secondly, the argument people make that it takes time to build a nuclear energy resource is true as compared to solar and thermal plants. But, you know that solar is useful during the day and we cannot build a large solar park without a reliable base load generation source such as nuclear. Look countries like China, USA, Germany, India, Spain, UK, France, Brazil, Canada and Italy which are the top 10 solar and wind power countries have nuclear power plants to support the variable nature of the solar or wind. And it is factual that all these countries with nuclear are industrilised including South Africa.
He urged those going about polluting people’s minds that nuclear is dangerous to stop that deception and rather talk about the good sides of it to prospective investors to help grow the African industrial revolution.
“Ghana is going to build, I think, about 1000MW of nuclear power plant for a start and to him, it is novel and would help in accelerating Ghana’s industrial aspirations,’’ he said.
Mr. Alexander Konadu, CEO of Solar Enablers Ghana who was also a panelist on the show concurred that nuclear power plant is more dependable than other sources of renewable energy.
“Nuclear power is more dependable but because of climate change people want to go the easier way,’’ he said.
He noted that unlike solar power plant which depends on sunshine during the day nuclear power plant does not arguing that it is all whether.
Source: www.energynewsafrica.com
Nigeria: World Bank Approves $500m To Improve Electricity Access
The World Bank has approved $500m to help boost access to electricity in Nigeria and improve the performance of the electricity distribution companies in the country.
According to the bank, financial support would be provided to private distribution companies only on achievement of results in terms of access connections, improved financial management and network expansion.
The World Bank noted in a statement that, “85 million Nigerians don’t have access to grid electricity. This represents 43% per cent of the country’s population and makes Nigeria the country with the largest energy access deficit in the world. The lack of reliable power is a significant constraint for citizens and businesses, resulting on annual economic losses estimated at $26.2 billion (₦10.1 trillion) which is equivalent to about two per cent of GDP. According to the 2020 World Bank Doing Business report, Nigeria ranks 171 out of 190 countries in getting electricity and electricity access is seen as one of the major constraints for the private sector.”
The statement quoted World Bank Country Director, Shubham Chaudhuri as saying, “Improving access and reliability of power is key to reduce poverty and unlocking economic growth in the aftermath of the global COVID-19 pandemic.
“The operation will help improve the financial viability of the DISCOs and increase revenues for the whole Nigerian power sector, which is critical to save scarce fiscal resources and create jobs by increasing the productivity of private and public enterprises”.
Ghana: Energy Minister Nominee To Be Grilled By Parliament On February 15The statement continued, “The Nigeria Distribution Sector Recovery Program (DISREP) will help improve service quality, as well as the financial and technical performance of distribution companies by providing financing based on performance and reduction of losses. This project complements the support provided under the Power Sector Recovery Operation (PSRO) approved in June 2020. Specifically, it will ensure that distribution companies make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid. It will also help strengthen the financial and technical management of DISCOs to improve the transparency and accountability of the distribution sector.” According to the World Bank task team leader for the project, Nataliya Kulichenko, “The program will only be eligible to those DISCOs that transparently declare their performance reports to public with the actual flow of funds based on strict verification of achieved performance targets by an independent third party. The program would also make meters available at affordable prices to all consumers in Nigeria, a long pending demand of Nigerians.” The statement added that “the program will reduce the CO2 emissions of the Nigerian power sector by reducing technical losses, increasing energy efficiency, replacing diesel and biomass with grid-electricity, and investing more in on- and off-grid renewable energy. DISREP supports the development of regulatory guidance on climate-resilient infrastructure and facilitates the inclusion of climate risks in decision making.” Source: www.energynewsafrica.com
Ghana: Electricity From Wind And Solar More Economical Than Nuclear – IES Analysis
Institute for Energy Security’s (IES’) review of data from the U.S. Energy Information Administration (EIA) and financial advisory and asset management firm Lazard, have revealed that generating electricity from wind and solar is more economical than nuclear.
The potential savings attained by generating a set quantity of electricity from renewables as a substitute for nuclear power is revealed as close to 288 percent for wind and utility-scale solar photovoltaic (PV).
IES’ trend analysis based on Lazard’s Levelized Cost of Energy (LCOE) between 2010 and 2019 reveal that new unsubsidized wind and solar power were cheaper than some already running resources like coal, nuclear, and some gas.
The cost decline is rendering solar PV and wind increasingly attractive resource relative to conventional generation technologies with similar generation profiles. The modeling shows that solar power on its own can beat Gas Peaker plants on their own, without storage, in most any market.
The U.S. Energy Information Administration (EIA) defines LCOE as the average revenue per unit of electricity generated that would be required to recover the costs of building and operating a generating plant over its assumed lifetime. It is often cited as a convenient summary measure of the overall competiveness of different generating technologies. Key inputs to calculating LCOE include capital costs, fuel costs, fixed and variable operations and maintenance (O&M) costs.
Lazard’s LCOE comparison for various generation technologies on a Dollar per megawatt-hour ($/MWh) basis, is sensitive to factors such as U.S. federal tax subsidies, fuel prices and costs of capital.
It must be noted that a key consideration for utility-scale generation technologies is the impact of the availability and cost of capital on LCOE values; reflecting essentially the return on, and of, the capital investment required to build them.
While capital costs for a number of “Alternative Energy” generation technologies are currently in excess of some conventional generation technologies, declining costs for many Alternative Energy generation technologies, coupled with uncertain long-term fuel costs for conventional generation technologies, are working to close formerly wide gaps in LCOE values. Lazard’s unsubsidized LCOE analysis has shown significant historical cost declines for utility-scale “Alternative Energy” generation technologies driven by, among other factors, decreasing supply chain costs, improving technologies and increased competition.
The 2019 report showed that at a high level, both solar and wind power have shown continued price declines, to outpace coal, nuclear, and some gas-fired power plants. The dramatic historical LCOE decline of wind and utility-scale solar PV is in light of material declines in the pricing of system components (turbines, panels, inverters, etc.) and improvements in efficiency, among other factors.
The IES analysis employs selected historical mean unsubsidized LCOE values from Lazard Annual reports. The mean LCOE reflects the average of the high and low LCOE for each respective technology in each respective year.
Lazard’s data suggests an unsubsidized utility scale solar power plant is going to generate electricity at a cost between 3.6 and 4.4 cents per kilowatt-hour (¢/kWh), with mean value of 4.0 ¢/kWh. This price has fallen by approximately 84 percent between 2010 and 2019. Over the period, utility scale solar power has experienced an average of 25 percent decline in cost per year. That decline fell to 13 percent over the last 5 years, and 7 percent between 2018 and 2019.
With wind, Lazard’s report indicates that it can generate power at a cost between 2.8 and 5.4 cents per Kwh, as it has fallen by roughly 67 percent between 2010 and 2019. Over the decade, unsubsidized wind power has seen an average of 11 percent decline in cost per year, a 7 percent fall per year over the last 5 years.
On the part of nuclear, Lazard’s report suggests it can generate unsubsidized power at rate between 11.8 and 19.2 cents per kilowatt-hour (¢/kWh), with mean value of 15.5 ¢/kWh. That between 2010 and 2019, the cost per megawatt-hour of nuclear has risen by 61 percent. Over the period, the cost of nuclear power has experienced an average increase of 5.7 percent per year. That increase, rose to 7.12 percent over the last 5 years, with the largest cost rise recorded as 27 percent between 2016 and 2017.
From the data analyzed, it is evident that the expected market value of electricity generated by nuclear power is greater than that of renewables, and this difference according to the National Renewable Energy Laboratory (NREL), will continue to increase through to 2050.
The body on the other hand, projects utility solar PV and onshore wind cost to decline 60 percent and 30 percent respectively by 2050, from 2018 levels, assuming continued industry growth, and technological breakthroughs could cut costs up to 80 percent by 2050.
Among the three options reviewed, nuclear power is right at the top, with total costs in 2019 of US$155 per megawatt-hour ($/MWh), most of which involves capital construction costs. On the low ends are solar and wind power at US$40 and US$41 per MWh respectively.
The potential savings attained by generating a set quantity of electricity from renewables as a substitute for nuclear power is revealed as close to 288 percent for wind and utility-scale solar PV. Even without accounting for current subsidies, the cost of renewable energy have shown to be considerably lower than the marginal cost of conventional energy technologies such as coal and nuclear.
The IES analysis also does not take into account potential social and environmental externalities or reliability-related considerations. These includes but not limited to air-borne pollutants, nuclear waste disposal, and climate change. It is also does not take into consideration issues such as dispatch elements (e.g. baseload/intermediate load/peak), and location (e.g. centralized/distributed).
While utility-scale solar and wind power generation technologies are already cost-competitive with conventional generation technologies such as coal and nuclear, a key factor regarding the long-term competitiveness of these alternative energy generation technologies is the ability of technological development and increased production volumes to materially lower their operating expenses and capital costs, in the years ahead.
Source: Fritz Moses, Elizabeth Sam, & Abisola Ganiyu
Ghana: AIS Students Who Tested Positive For Covid-19 Are Stable-VRA
Ghana’s state largest generation company Volta River Authority (VRA) is urging parents of the Akosombo International School to remain calm, assuring that health professionals have been adequately equipped to handle the recent Covid-19 cases in the school.
The power generation company owns the Akosombo International School in Eastern Region of the Republic of Ghana.
Media reports suggested that a student of the school tested positive for coronavirus prompting management to undertake mass testing of the students.
Reports went on to suggest that out of the number of students who were screened 42 of them were positive.
In a statement issued by Corporate Affairs and External Relations Unit of VRA , it said: “All who have so far tested positive are stable and without symptoms but in isolation for further management and treatment by VRA hospital staff.
The statement noted that parents of the students have been duly informed about the development.
“We urged parents and the general public to remain calm as our health professionals are adequately equipped to handle the cases,” the statement said.
Source: www.energynewsafrica.com
Tullow Taps Maersk Venturer For Long-Term Ghana Campaign
Maersk Drilling has received a conditional letter of award from Tullow Ghana Ltd. for the provision of the ultra-deepwater drillship Maersk Venturer and additional services for a development drilling campaign at the TEN and Jubilee field offshore Ghana.
The duration of the final contract is around four years with expected commencement in Q2 2021.
The estimated value of the final contract is approx. USD $370 million, excluding the value of the additional services provided and performance bonuses. The operation will be supported by local partner Rigworld.
The final contract has a progressive day rate structure for the full duration of the contract. However, after the initial period of 18 months, the contract has a provision to shift to a market-linked day rate structure.
The final contract is conditional upon certain regulatory conditions being met. Maersk Drilling will publish an announcement upon conclusion of a final contract.
“We’re delighted to get this opportunity to secure a long-term contract for Maersk Venturer, as Tullow once again shows confidence in Maersk Drilling’s ability to deliver stable and highly efficient operations to their major development projects in Ghana. This also means that we will be able to continue our work with the Ghanaian community and local suppliers who have previously contributed to our West African operations,” says CEO of Maersk Drilling, Jørn Madsen.
Maersk Venturer is a high-specification 7th generation drillship delivered in 2014. It is currently warm-stacked in Las Palmas, Spain, after finishing a campaign in Ghana for Tullow in 2020.
Source:www.energynewsafrica.com
Saudi Arabia Raises Oil Prices To U.S. And Europe
The world’s top oil exporter, Saudi Arabia, on Thursday raised the prices of all its crude oil that will go to the United States and Europe in March while leaving unchanged the official selling prices of its crude to its key market in Asia.
The Saudi state oil giant Aramco raised the prices of all its crude grades to the U.S. by $0.10 per barrel, while the Saudi oil prices to Europe were lifted by between $1.30 and $1.40 a barrel, according to Bloomberg.
The price of the Saudi flagship Arab Light crude grade to Northwest Europe was raised by $1.40 a barrel for March compared to February and set at a discount of $0.50 a barrel against ICE Brent, Reuters reported, citing a pricing document it had seen.
Last month, a day after surprising the market with a 1-million-bpd additional production cut for February and March, the Saudis raised the official selling prices (OSPs) of their oil for Asia for February. Saudi Aramco lifted the price of the flagship Arab Light grade by $0.70 a barrel to a premium of $1 per barrel against the Middle East benchmark, the Oman/Dubai average.
This month, however, the Saudis are leaving the prices to Asia unchanged for March compared to February, after the extra production cut created a rush among refiners in Asia in January, with buyers scrambling to secure crude oil supplies from Europe.
Saudi Arabia has also reportedly announced reductions in crude oil volumes to be supplied to at least nine clients in Asia and Europe for this month. The cuts were made for shipments under long-term contracts and concern Aramco’s heavier grades, according to Bloomberg.
The extra Saudi cut looks to be working, for now, in favor of the OPEC+ producers who are desperate to see higher oil prices to patch up their budgets hit by the crash in oil prices and the economic downturn due to the pandemic. Oil prices have rallied over the past month since Saudi Arabia announced the additional 1-million-bpd cut.
Source:Oilprice.com
Ghana: Energy Sector On Autopilot -INSTEPR
The Institute for Energy Policies Research (INSTEPR), an energy think tank in the Republic of Ghana, has expressed worry over the seeming inaction in the country’s energy sector since the swearing in of President Nana Akufo-Addo for his second term in office on January 7, 2021.
According to INSTEPR, Ghana’s energy sector is now on an autopilot because of the absence of a substantive minister.
President Akufo-Addo has nominated Dr. Matthew Opoku Prempeh, Member of Parliament for South Manhyia Constituency, as Minister for Energy, pending parliamentary approval.
The ministerial nominee is expected to be vetted on Monday, February 15, 2021.
In a statement issued by INSTEPR and signed by its Executive Director, on Thursday, February 4, it noted that despite the numerous problems besetting the energy sector, there would not be a minister until the end of February.
“Ghana missed a deadline to take over the operation and maintenance of the Ameri Plant. This was because of delay in undertaking audit of the plant and an indebtedness to Ameri. There are union agitations at the Tema Oil Refinery since the beginning of the year. The refinery needs special attention by the government to determine its long-term viability. In recent weeks, most parts of the country have experienced low voltage and power outages. There are teething problems at Gridco and ECG which need immediate attention. We have just mentioned a few problems occurring in the energy sector in the month of January and the Institute believes that the lack of leadership can compound these problems to escalate,” the statement said.
“INSTEPR strongly believes that the Transition Act 845, 2012, should be amended to remove section 13(5) to replace it with the appointment of, at least, five substantive ministers for Finance, Health, Energy, Education and Agriculture. Parliament will make the necessary provisions to vet and approve these ministers designate within the first 21 days of the new parliament. This will afford any new government to have leadership in key areas of our economy,” the statement said.
Below is the full statement
THE ENERGY SECTOR ON AUTOPILOT FOR THE FIRST 100 DAYS OF THE NEW ADMINISTRATION
Ghanaians have high expectation after the swearing in of a new President on the 7th of January, to swiftly oversee all sectors of the economy. We have the first ‘100 days’ expectations and in some countries, there is a believe that the momentum of this ‘100 days’ determines the pace and success of a government.
The energy sector with its numerous problems does not have a Minister and looking at the timetable for vetting by Parliament, we will not have one until the end of February. Even when the President appoints a caretaker as stipulated in the Transition Act 845, 2012, section 13 (5), that individual cannot take policy decisions. The Authorities, corporations and companies under the sector faces the same problem of inaction and no policy direction since their boards were dissolved as per the Chief of Staff’s letter dated 12th January 2021.
This problem is not only felt in the energy sector but across the entire government in Ghana. In the midst of this Covid-19 pandemic, the President does not have a Cabinet and a Health Minister to steer the country through these difficult times.
In the past week, Ghana missed a deadline to take over the operation and maintenance of the Ameri Plant. This was because of delay in undertaking Audit of the plant and an indebtedness to Ameri. There are Union agitation at Tema Oil Refinery since the beginning of the year. The Refinery needs special attention by government to determine the long-term viability of the Company. In recent weeks, most part of the country has experienced low voltage and power outages. There are teething problems at Gridco and ECG which needs immediate attention. We have just mentioned a few problems occurring in the energy sector in the month of January and the Institute believes that the lack of leadership can compound these problems to escalate.
INSTEPR strongly believes that the Transition Act 845, 2012 should be amended to remove section 13 (5) to replace it with the appointment of at least 5 substantive ministers for Finance, Health, Energy, Education and Agriculture. Parliament will make the necessary provisions to vet and approve these ministers designate within the first 21 days of the new parliament. This will afford any new government to have leadership in key areas of our economy.
As it stands, Ghana Incorporated will have nothing to show for in the first quarter of 2021. The private sector looks to government for stability and the uncertainty created by the current situation does not benefit Ghana. Our industry Barometer for first quarter, will now be published in the second quarter, June 2021.
Kwadwo N. Poku
Executive Director
Ghana: Energy Minister Nominee To Be Grilled By Parliament On February 15
The Ministerial Nominee for Ghana’s Energy Ministry, Dr Matthew Opoku Prempeh, is expected to appear before the country’s Appointments’ Committee of Parliament on February 15, 2021, to be vetted on his understanding of the sector.
The nominee will be vetted alongside other ministerial nominees.
Dr. Opoku Prempeh would be grilled on a wide range of issues in the energy sector covering both power and oil and gas (downstream and upstream).
Key areas where questions are likely to come from would be on Ghana’s Commitment to the Paris Agreement on Climate Change, Energy Sector Debt, Cylinder Recirculation Model on LPG, Ameri Power Deal, botched PDS deal, Ghana’s Nuclear Power Programme, the government’s commitment towards rural electrification and universal access to electricity and impact of Covid-19 on operations at the upstream.
The Appointments’ Committee has scheduled between February 10 and March 9, 2021, to vet President Akufo-Addo’s first batch of ministerial nominees.
Dr Opoku Prempeh, popularly known as Napo, is a Member of Parliament for South Manhyia Constituency in the Ashanti Region.
He is a Medical Doctor and served as a Minister for Education in the first term of H.E Nana Akufo-Addo.
Source: www.energynewsafrica.com
U.S. Oil Production On Course To Hit Record Levels In 2023
U.S. oil production fell sharply in 2020, but the Energy Information Administration is expecting it to pick back up and even set new records in just two years, it said in its much-anticipated annual energy outlook (AEO2021).
According to the EIA, U.S. oil production will surpass in 2023 its previous annual average of 12.25 million barrels per day, achieved in 2019.
In 2020, U.S. oil production had reached a high of 13.1 million bpd on average for week ending March 13. But the overall annual average for the pandemic year was much lower after oil production fell sharply in August, briefly dipping below 10 million barrels per day.
U.S. energy consumption, however, will take years to return to 2019 levels—eight years to be exact. The EIA notes, however, that “that projection is highly dependent on the pace of U.S. economic recovery.”
Electricity demand, according to the AEO2021, is expected to return to 2019 levels by 2025—again, a slower recovery than U.S. oil production, which also has export markets to draw on.
That U.S. production could return to 2019 levels is remarkable, considering that domestic consumption will take years longer to recover.
What The U.S. Political Transition Might Mean For Africa Generally And Its Oil And Gas Sector In Particular (Article)Currently, U.S. oil production, according to the EIA is averaging 10.9 million barrels per day—2.2 million bpd lower than the highs reached in March of 2020. The number of active drilling rigs is on an upward trajectory, but overall, the number of active drilling rigs is still 400 below where it was just one year ago today. Meanwhile, OPEC’s production is also down by millions of barrels per day from 2019 levels as part of its coordinated production cuts. Source: Oilprice.com
Ghana: Aker Energy’s Country Director Now CEO
Norwegian oil and gas company, Aker Energy AS has promoted its Ghana’s Country Director, Mrs. Kadijah Amoah, to the position of Chief Executive Officer.
This follows a decision by Aker Energy SA to let Aker Energy Ghana to be managed and run fully by Ghanaians.
The company announced this in a statement issued on Tuesday, February 3, 2021.
Aker Energy holds a 50 percent participating interest in the Deepwater Tano Cape Three Points block in the Western part of the Republic of Ghana, including the Pecan development project.
Other partners are Lukoil (38%), Fueltrade (2%) and Ghana National Petroleum Corporation (10%).
In a statement issued on Tuesday, CEO of Aker Energy, AS Håvard Garseth said: “This sends a strong signal that Aker Energy is committed to becoming a fully Ghanaian operator managed and run by Ghanaian employees. Mrs. Kadijah Amoah has, as Country Director, proved her drive, intellect and passion for her native country and the company and we are looking forward to her management of this transition.”
Commenting on her elevation, Mrs. Kadijah Amoah said: “For the Ghanaian people, we need to get in control of our own destiny and it starts with mastering the development and operation of the vast energy resources we have. The 700 million barrels of undeveloped oil in our block and the adjacent AGM block have the potential to transform Ghana, not only the economy but also the competence base. The latter can also be applied over time in other sectors such as the renewables sector.”
Mr. Garseth would continue to safeguard the technical delivery of the Pecan project while supporting Mrs. Amoah’s management of the transition to become a fully-run Ghanaian operator.
“I am humbled by this honour, but also glad that Håvard and his very experienced technical team will continue to support and safeguard the technical delivery until all technical knowledge and competence has been fully transferred to my home country,” said Mrs. Kadijah Amoah.
During 2020, the technical team, comprising some of the most experienced subsea experts globally, reduced the breakeven estimate significantly through optimising the field development.
“I am very satisfied by the strong work that the teams in Accra and Oslo have carried out so far. The technical fundamentals of the new concept are strong,” says Garseth.
Source: www.energynewsafrica.com
Power Pools In African Need To Be Interconnected- Amuna
A former Chief Executive Officer of Ghana Grid Company (GRIDCo), a power transmission company in the Republic of Ghana, Ing. William Amuna is urging Africans to interconnect the various power pools within the continent to facilitate power export.
Emphasizing on the benefits to be derived from interconnecting the power pools Ing. Amuna said it will lead to more efficient supply of electricity and less cost.
He noted that East Africans have their power pool, with South Africa, North Africa and West Africa having theirs too.
Ghana: Tullow To Drill New Oil Well At Jubilee Field In Q2 2021“There is the need to pull all these power pools as that is the best way to go so that in future, somebody in South Africa can have his power plant and can export power to Ghana or Nigeria or any part of West Africa,” he said. Speaking at a symposium organised by the Federation of African Engineering Organisations (FAEO) via zoom, Ing. Amuna stressed the need for African countries to invest heavily in the power supply, saying it would lead to improved economies. Ing. Amuna, who is a technical controller at Millennium Development Authority (MiDA), an implementing agency for Ghana Power Compact II, expressed worry about how electricity produced are sometimes not consumed. This, he said places a huge task on the continent to promote and implement a sustained energy efficiency and demand side management. “Sometimes you have electricity but people don’t want to use it efficiently, ” he said. He revealed that Ghana and Burkina Faso would soon construct another interconnection line to boost power transmission. Source: www.energynewsafrica.com
ExxonMobil Swings To $20.1Billion Loss In Q4 2020 Amid ‘Most Challenging Conditions’ Ever
U.S oil super major ExxonMobil booked a $20.1 billion loss in the last quarter of 2020 compared to a profit in the same period of 2019 due to massive impairments amid the most challenging market conditions the company has ever experienced.
ExxonMobil on Tuesday announced an estimated fourth quarter 2020 loss of $20.1 billion compared to a profit of $5.7 billion in the same period of 2019.
The loss of $20.1 billion included unfavourable identified items of $20.2 billion, primarily non-cash impairments; earnings excluding identified items were $110 million.
The company’s fourth-quarter capital and exploration expenditures were $4.8 billion, bringing full-year spending to $21.4 billion, $9.8 billion lower than the prior year.
ExxonMobil’s oil-equivalent production in the fourth quarter was 3.7 million barrels per day, consistent with the third quarter of 2020. Production was reduced by government-mandated curtailments.
Excluding entitlement effects, divestments, and government mandates, liquids production increased 5 per cent, while natural gas volumes increased 2 per cent.
Chevron Reports Annual Loss Of $5.5bn On Lower Oil Prices“The past year presented the most challenging market conditions ExxonMobil has ever experienced”, said Darren W. Woods, Chairman and Chief Executive Officer. “While the effects of the pandemic significantly impacted our 2020 results, our previously executed strategic initiatives and reorganizations enabled us to respond decisively to permanently improve our cost structure, drive greater efficiencies across our businesses, and emerge a stronger company. “These improvements are expected to deliver structural expense savings of $6 billion per year by 2023, relative to 2019”. In 2020, ExxonMobil reduced annual cash operating expenses by $8 billion, of which $3 billion are structural reductions. The company expects to generate additional annual savings of $3 billion by 2023, resulting in total structural annual expense reductions of $6 billion, including savings from a global workforce reduction. ExxonMobil also announced the election of Tan Sri Wan Zulkiflee Wan Ariffin, a former Petronas president and Group CEO, to its board of directors. ExxonMobil continues discussions with other director candidates with a range of skills sets for potential addition to its board, as part of its ongoing refreshment process. With the election of Wan Zulkiflee, the ExxonMobil board will increase to 11 directors, 10 of whom are independent directors. The board expects to take further action in the near term. Source:www.energynewsafrica.com