Net zero target needs $3.5 trillion in annual green energy investment, Wood Mackenzie says
Wood Mackenzie's report on Tuesday said that the investment in green energy must double every year to $3.5 trillion if we are to reach the Paris Agreement goal of net zero emissions by the year 2050. The consultancy's report said that, in addition to the investment gap, global efforts to switch to cleaner energy are under pressure due to concerns about energy security and tariffs and barriers to trade, which are stunting the electrification of growth globally.
Chevron sells assets worth $6.5 billion to Canadian Natural Resources
Chevron announced on Monday that it would sell its assets in the Athabasca Oilsands and Duvernay Shale fields to Canadian Natural Resources at a price of $6.5 billion. This is part of its divestment plan. The cash-only transaction is part of the company's strategy to sell assets worth $10 to $15 billion by 2028. Chevron will be able to produce 84,000 barrels equivalent per day (boepd), based on the assets located in Alberta Canada. Wood Mackenzie reported in January that the Duvernay was one of Canada's most important shale plays…
New Industry Minister: Japan will keep nuclear but boost renewables as part of its energy mix
Japan will continue to restart nuclear power plants safely and use as much renewable electricity as possible, said Industry Minister Yojimuto on Wednesday. This indicates that the policy of newly appointed Prime Minister ShigeruIshiba is not likely to change significantly. Ishiba had promised to eliminate nuclear power before he was elected leader of the Liberal Democratic Party. He was sworn into office on Tuesday. He was the sole candidate who opposed nuclear power in Japan.
Analysts say that Colombia must develop a natgas plan soon to prevent blackouts.
If it wants to prevent power blackouts in Colombia, the head of Wood Mackenzie’s Americas Gas and LNG division said that Colombia needs to decide quickly whether it will focus on LNG imports or promote domestic production of natural gas. Colombia, under leftist president Gustavo Petro has moved away fracking in order to develop its reserves shale oil and gas. A Santa Marta court judge ordered earlier this month that work be suspended on a major offshore gas project run by Ecopetrol, the state-controlled company and Brazil's Petrobras.
Kiewit: Equipment shortages increase costs of LNG plants
Tom Shelby, Kiewit Energy's President, said that the boom in U.S. LNG plant construction has caused shortages of electric motors, transformers and generators. This has contributed to increased costs and construction delays. Shelby noted that equipment shortages, rising costs of wages, cement and other materials have increased the cost to build new LNG plants between 25 and 30 percent over the past five years. Wages have also increased by 20 percent in line with inflationary costs. Kiewit is one of the largest U.S.
Chinese demand drives up global wind turbine orders in H1 of 2024
Wood Mackenzie reported in a Monday report that global onshore wind turbines orders reached 91.2 gigawatts in the first half, an increase of 23% on the previous year. This was due to a higher demand from China's north region in the second quarter. China has the largest wind turbine production capacity in the world compared to Europe or the United States. Western OEMs are struggling to keep up with China's pricing and availability advantages.
Russell: Asia spot LNG prices fall as demand increases, but prior rally bites back:
Last week, the spot price for liquefied gas (LNG), in Asia, eased amid signs of seasonal demand peaking. The five-month rally has also reduced purchases by price sensitive buyers. The price of LNG spot for delivery to North Asia fell to $13.80 per mmBtu in the week ending Aug. 23. This is a 2.1% drop from the previous week's eight-month high, $14.10. The benchmark price fell for the first time in four weeks. However, it remains 66.3% higher than the lowest price of $8.30/mmBtu that was reached at the start of March.
Russell: Asia spot LNG prices fall as demand increases, but prior rally bites back:
Last week, the spot price for liquefied gas (LNG), in Asia, eased amid signs of seasonal demand peaking. The five-month rally has also reduced purchases by price sensitive buyers. The price of LNG spot for delivery to North Asia fell to $13.80 per mmBtu in the week ending Aug. 23. This is a 2.1% drop from the previous week's eight-month high, $14.10. The benchmark price fell for the first time in four weeks. However, it remains 66.3% higher than the lowest price of $8.30/mmBtu that was reached at the start of March.
Analysts say that new drilling technology could bring billions of barrels worth of oil within reach.
Analysts said that a breakthrough in oil production which producers claim can safely tap fields with ultra-high pressure could bring up to 5 billion barrels previously unaccessible crude into production. Chevron announced on Monday that it had successfully pumped the first oil out of a field with a pressure of 20,000 pounds per sq. inch, which is a third higher than any previous well. The $5.7 billion Anchor Project uses specially-designed equipment from NOV Dril-Quip, and drillships by Transocean. The No. The No.
Survival of the fittest: petrochemical manufacturers battle global glut
The survival mode of petrochemical producers is on in Europe and Asia. Years of capacity building in China, the top market for petrochemicals, and high energy prices in Europe have pushed margins down two years in a row. The weakness of the sector is concerning for an oil industry that looks to petrochemicals as a way to maintain profits in future years when transportation fuel demand will fall with the energy shift. Industry executives and analysts report that major producers in Asia…
Solar, Wind Uptake to Reach 5.4 TWac from 2024 to 2033, Says Wood Mackenzie
Global solar deployment to add 3.8 TWac of new project capacity by 2033 compared to 1.6 TW of wind power, while 640% growth is forecast for energy storageFrom 2024 to 2033, developers will bring more than 5.4 terawatts (TWac) of new solar and wind capacity online, increasing the cumulative global total to 8 TWac, as the world endeavours to electrify economies and meet decarbonisation targets, according to latest analysis by Wood Mackenzie.Energy storage capacity (excluding pumped hydro) will grow by more than 600%…
BP to Sell Petrochemicals Business to Ineos for $5B
British oil major BP will sell its global petrochemicals business to Ineos for $5 billion, a transaction delivering BP's divestments target a year earlier than originally scheduled.Brian Gilvary, BP’s chief financial officer, said: “With today’s announcement we have met our $15 billion target for agreed divestments a full year ahead of schedule, demonstrating the range and quality of options available to us.”Ineos will pay BP a deposit of $400 million and will pay a further $3.6 billion on completion.
EXIM Bank Amends Mozambique LNG Loan. Earmarks $1.8B for Offshore Work
The U.S. EXIM Bank has amended its previously approved September 2019 direct loan supporting U.S. exports for the development and construction of the Total-operated LNG project located on the Afungi Peninsula in northern Mozambique.The original scope of the $4.7 billion loan for the project has been amended from exclusively the onshore portion of the LNG plant and related facilities to also allocate an estimated $1.8 billion to support the project’s offshore production.
Denmark's Vestas Breaks Wind Turbine Installation Record, Woodmac Says
Danish wind farm turbine builder Vestas became the first wind turbine manufacturer to install more than 10 GW of wind capacity in a single year (2019), according to new analysis from Wood Mackenzie.The Danish OEM’s grid-connected capacity of 11.3 GW in 2019 is an increase of 1.5 GW on 2018, with installations completed in over 35 markets. The company’s installations in the Americas region contributed more than 50% of capacity for the first time.
Oil Price Crash, What Next?
A historic rout in oil markets sent U.S. crude prices plummeting to as much as minus $40 a barrel as traders rushed to get rid of unwanted stocks with storage capacity already overflowing amid a coronavirus-induced demand collapse.U.S. West Texas Intermediate (WTI) crude for May delivery recouped some losses on Tuesday to be just in positive territory, leaving market participants to assess the wider implications.Here is what analysts…
Opinion: Renewable Energy Wins Over Oil and Gas in Post-Coronavirus World
Imagine waking up one morning with a deadly tiger snake in your bed. To make matters worse out of the window you notice an approaching bushfire.Both are a threat to your life, but you are going to deal with the imminent danger of the snake first, and then tackle the more distant but still serious fire. It's the same with the new coronavirus and climate change.Since the rapid spread of the coronavirus beyond its origin in China and the social and economic havoc it's wreaking across the globe…
Offshore to Constitute 25% of Wind Demand
Offshore wind will constitute 25% of total wind demand in 2028, up from 10% in 2019 and will narrow the gap with offshore upstream oil and gas in terms of capital expenditure deployment, said the analyst firm Wood Mackenzie.The possibility of offshore wind becoming cheaper than coal, gas and nuclear in most major countries is a question of when rather than if.With a diverse 314GW global offshore wind portfolio to tap into and cumulative offshore wind capacity expected to increase more than seven-fold by 2028…
China’s Oil Demand Dip is First Since 2009
The near-term impact of the coronavirus outbreak on oil demand remains uncertain as much depends upon when and how China’s manufacturing industry restarts after the currently extended Lunar New Year public holiday.Wood Mackenzie has lowered its oil demand forecast for the first quarter of 2020 by nearly 900,000 barrels per day (b/d) to 98.8 million b/d. Much of the drop is attributable to efforts to contain the outbreak, including flight cancelations.Ann-Louise Hittle…
What Does US-China Trade Deal Mean for Oil Markets?
After over a year of trade tensions, the US and China signed a “phase one” trade deal on 16 January. As part of the deal, China has agreed to increase the value of energy imports by $52.4 billion above 2017 levels over the next two years. What could it mean for the oil market?Ann-Louise Hittle, vice president, macro oils at Wood Mackenzie said, “This trade deal is beneficial to the broader global economy, but will have limited impact…
China’s Wind Repowering Market to Boom from 2023
State-owned enterprises to dominate wind repowering marketChina’s wind repowering market is expected to take off from 2023, finds a new report by Wood Mackenzie. More than 21 gigawatts (GW) (cumulative capacity) of China’s wind turbine fleet is expected to be repowered over the next 10 years (2019-2028).Repowering refers to complete dismantling and replacement of old wind turbines at the original wind site. Wind farms older than 15 years…
