Energy News Beat

Portuguese oil and gas company Galp has announced the discovery of light oil at the Mopane-1X well offshore Namibia, bringing the total number of oil and gas discoveries to six since 2022. 

Namibia has reached another milestone in its exploration journey, with Portuguese multinational energy corporation Galp announcing the discovery of light oil at the Mopane-1X exploration project – located in Petroleum Exploration License (PEL) 83 in the Orange Basin. Representing Namibia’s sixth commercial oil and gas discovery – following hydrocarbon discoveries made by TotalEnergies in PEL 56 and Shell in PEL 39 – the Galp discovery further elevates Namibia’s status as a frontier oil and gas market.

Galp reports that the discovery, made in reservoir-bearing sands of high quality, prompts the company to initiate an assessment of the reserves’ commercial viability through a planned drill stem test in the coming weeks. Recognizing the immense potential of Mopane-1X and Namibia’s Orange Basin for world-class discoveries, Galp and its partners – Namibia’s national oil company (NOC) NAMCOR and Custos Energy – are extending their drilling campaign with upcoming activities in the Mopane-2X well.

The African Energy Chamber (AEC), as the voice of the African energy sector, congratulates Galp and its partners for the discovery. This achievement represents a substantial stride in positioning Namibia as a major energy player in Africa and on the global stage, aligning with recent successes in the country’s upstream sector.

The AEC believes that the discovery is a massive milestone for Namibia, Galp, NAMCOR and its partners on PEL 83. In addition to fortifying local and regional energy security, the AEC foresees Galp’s discovery and Namibia’s burgeoning oil and gas industry playing a pivotal role in enhancing the country’s economic strength and gross domestic product growth. This will be achieved through bolstering energy market resilience, creating job opportunities, and expanding export revenue. Notably, with approximately 45% of the Namibia’s population currently lacking access to electricity, discoveries like Galp’s will be instrumental in realizing the government’s objective of universal energy access by 2040 while ensuring the region has access to affordable energy.

“This is an example of an African country, the ministry and the NOC working hand-in-hand to enable explorers. These discoveries do not just happen because of the geology itself, but credit should be given to the hard work that has been put in by the Namibian government through its ministry and NOC in constantly and consistently keeping a stable environment, encouraging companies, listening to investors, and giving investors the confidence to pour in money and get massive discoveries. Namibia’s example should be a lesson to many African states when it comes to exploration,” stated NJ Ayuk, the Executive Chairman of the AEC.

The discovery of light oil at Mopane-1X further demonstrates the commercial potential of offshore oil and gas in Africa. With six discoveries made in less than two years, Namibia is a testament to the role and future oil and gas plays in Africa. The AEC is optimistic about Namibia’s hydrocarbon future and urges exploration companies and government to work together in navigating the legal, environmental and investment requirements to fast-track the development of these critical resources.

“We stand with Namibia in its endeavor to explore and exploit oil and gas resources to address energy security issues and maximize industrialization. Namibia’s oil and gas resources will be key to expanding economic growth, driving diversification and advancing socioeconomic development, both in Namibia and across the southern African region,” concluded Ayuk.

Source: Energychamber.org

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A study of clean energy alternatives led by the Pueblo Innovative Energy Solutions Advisory Committee (PIESAC) found that only advanced nuclear could make the community “whole” from the losses it will suffer from the closure of the last unit at the Comanche coal-fired power plant in Pueblo, Colorado, while ensuring a just transition.

PIESAC, a diverse 11-member committee of Pueblo community leaders, was assembled by Xcel Energy-Colorado to evaluate and recommend future clean energy generation strategies to replace the final coal-fired unit at Comanche as the company transitions to delivering 100% carbon-free energy by 2050 to its Colorado customers and communities. The plant, some 110 miles (177 km) south of Denver, includes three coal units: unit 1 (335 MWe) retired in 2022, unit 2 (315 MWe) is due to retire by the end of 2025, and unit 3 (750 MWe) is to retire by 1 January 2031 at the latest.

The closure of Comanche 3 – which had originally been expected to operate until 2070 – will have “devastating impacts” on the economy of Pueblo unless the community, Xcel Energy and other stakeholders begin planning now for its replacement, the study says. The 2031 closure will cost Pueblo more than USD845 million in taxes which fund schools, fire districts, libraries, conservation districts as well as the operations of the city and the county. “It is urgent that we reduce climate changing emissions, but we must also provide a path forward for coal communities such as Pueblo that have relied on highly paid skilled jobs and tax payments from coal plants,” the study finds.

PIESAC’s newly released report is the culmination of ten months’ work to evaluate clean energy generation strategies to replace the existing coal units at the Comanche Generation Station while ensuring a “just transition” so that “coal communities should not only be no worse off with the closure of coal facilities but also replace the coal generation with high paying and highly skilled jobs and lost tax base so that coal communities have an opportunity to prosper, grow, and reimagine their local economies”.

The committee looked at a “large number” of generation possibilities for Pueblo that could be available by 2034, including various energy storage and battery technologies, hydrogen as a primary fuel, the construction of additional solar facilities, combined cycle gas with carbon capture, and advanced nuclear. Of these, it recommends that only the latter two – a new gas plant with carbon capture or advanced nuclear – should be considered for Pueblo.

A new gas plant with carbon capture would provide 20 to 25 jobs with a salary range of USD80,000-120,000 and tax payments of approximately USD16.5 million a year, but advanced nuclear would provide 200 to 300 jobs with a salary range of USD60,000-200,000 and tax payments of USD95.29 million a year, it notes: “Of all of the technologies that we studied, only advanced nuclear generation will make Pueblo whole and also provide a path to prosperity.”

Coal accounted for some 27% of Xcel Energy-Colorado’s 2022 generation mix, with natural gas supplying around 31% and wind 36%. The company is aiming for 81% of its generation to be carbon free by 2030 and 100% carbon free by 2050.

Xcel Energy-Colorado is part of Minneapolis-headquartered Xcel Energy, serving eight Western and Midwestern US states from a generating portfolio which includes the Monticello and Prairie Island nuclear power plants in Minnesota.

Source: World-nuclear-news.org

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LAUNCESTON, Australia, Jan 11 (Reuters) – China’s status as the colossus of renewable energy is set to be cemented in the next five years, with the world’s second-biggest economy adding more capacity than the rest of globe combined.

The International Energy Agency said in its Renewables 2023 report, released on Thursday, that China will account for 56% of renewable energy capacity additions in the 2023-28 period.

China is expected to increase renewable capacity by 2,060 gigawatts (GW) in the forecast period, while the rest of the world will add 1,574 GW, the IEA data showed.

The European Union and the United States are the next biggest builders of renewable energy, at 429 GW and 337 GW respectively.

It’s worth noting, though, that India is forecast to add 203 GW of renewable capacity, while the 11 countries that make up the Association of Southeast Asian Nations are expected to boost capacity by a combined 63 GW.

This shows that Asia is the dominant force in renewable energy deployment, largely because of supportive policies and the availability of capital and offtake agreements for the electricity produced.

The IEA report also sheds light on just how China is coming to be the leading force in renewable energy, with supportive policies driving a huge increase in the expected capacity additions from the previous report in December 2022.

“China accounts for almost 90% of the global upward forecast revision, consisting mainly of solar photovoltaic (PV). In fact, its solar PV manufacturing capabilities have almost doubled since last year, creating a global supply glut,” the IEA said.

“This has reduced local module prices by nearly 50% from January to December 2023, increasing the economic attractiveness of both utility-scale and distributed solar PV projects,” the report said.

The IEA said the lower costs are making utility-scale solar more attractive in China than coal- and gas-fired generation.

China has also clarified the rules around its green certificates, which will provide additional revenues for solar and wind developers.

China is also expected to increase its gap over the rest of the world in deploying renewables, even as the United States and countries in Europe boost policy and financial support.

ADVANTAGE CHINA

China has several advantages that sometimes aren’t available in other countries.

These include being able to approve and build transmission grids and renewable energy projects more quickly than in countries where democratic processes and the objection of local communities can constrain infrastructure development.

China can also finance projects more easily than in countries where money is lent or raised on the basis of expected returns rather than on policy priorities.

The country’s manufacturing base also allows for economies of scale in producing PV panels and wind turbines, and this is further supported by China’s efforts over the previous decades to build a leading position in the supply and processing of minerals such as copper, nickel and lithium.

There is also a caveat to China’s rapid build-out of renewable capacity because at the same time it is still adding substantial coal-fired generation.

China is the world’s biggest coal producer and importer and has more coal-fired capacity under construction than the rest of the world combined.

China is building 136.24 GW of coal-fired generation, and has another 255.5 GW at the announced, pre-permit or permitted stage, according to data compiled by the Global Energy Monitor.

This is 67% of the global coal-fired capacity currently under construction and 72% of the potential new capacity.

China already accounts for 53% of the world’s 2,095 GW of operating coal-fired generating capacity, a share likely to increase in coming years as more coal plants are retired in the developed world.

When taking China’s renewable deployment together with its ongoing coal-fired construction, a more nuanced view emerges of the country’s energy profile.

It’s clear that renewables are increasing their share of China’s power generation, but it’s equally clear coal-fired power is going to be around for decades to come, and that if China does meet its goal of net-zero emissions by 2060, it will largely be achieved in the final years prior to the deadline.

The opinions expressed here are those of the author, a columnist for Reuters.

Source: Reuters.com

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There is more demand of U.S. natural gas now and it is expected to growth more by 2025, said Williams Companies (WMB) CEO Alan Armstrong.

The Henry Hub Natural Gas Spot Price reached $8.81 per million Btu in August 2022, but last year prices declined about 60% and moved down below the cost of marginal production, said Armstrong during a CNBC interview.

“We’re starting to see that supply taper off now,” he said. “At the same time, we’re starting to see demand pick up pretty strongly against the fundamentals — on a weather normalized basis.”

In 2023, demand for natural gas (NYSEARCA:UNG), (NG1:COM) was up by about 6%. LNG (liquified natural gas) growth is expected to pick up “a little bit” in 2024 and there will be “a big pick-up” in 2025, as a lot of new facilities come on, he said.

According to the Energy Information Administration, 20 new natural gas power plants are expected to come online with a total capacity of 7.7 gigawatts.

“You can see quite a bit of contango in the market with prices picking up by about 25% from 2024 to 2025,” said Armstrong. “So, producers are holding their breath right now through those periods of low prices.”

The EIA’s Annual Energy Outlook 2023 report said that U.S. natural gas production is expected to increase by 15% — to 42.1T cubic feet — and LNG exports are expected to increase by 152% — to 10T cubic feet — by 2050.

“Since 2010, we’ve seen total natural gas demand pick up by 60%, but pipeline infrastructure only 30%,” said Armstrong, adding that storage to back up intermittent renewals only increased by 12%.

Source: Msn.com

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Russia was on pace for a second year of record oil drilling in 2023, further evidence of the nation’s resilience to Western sanctions.

The boom in activity came alongside a recovery in both the volume and value of Russia’s oil exports, a stark illustration of how the country’s fossil fuel industry has been a crucial source of funds for President Vladimir Putin’s war in Ukraine, which is about to enter its third year.

“Russia is substantially more independent in its oil-field services than generally appreciated,” said Ronald Smith, an oil and gas analyst at Moscow-based BCS Global Markets.

In the first 11 months of 2023, Russia drilled oil production wells with a total depth of 28,100 kilometers, according to industry data seen by Bloomberg. That’s on track to beat the previous year’s post-Soviet record.

The frenetic pace of drilling — amid fairly static production — also offers an indication of some long-term problems that may be building up for Russia’s oil sector as a result of Moscow’s international isolation. The industry is working harder to maintain output from its oldest wells, while new projects that would sustain production in the coming decades must adapt to the country’s changed circumstances.

For 2023 as a whole, Russia’s production drilling is set to top 30,000 kilometers, according to analysts at intelligence firm Kpler and Moscow-based consultant Yakov & Partners. The increase comes despite Western countries’ pressure on the country’s energy industry, which is a key source of funds for the Kremlin’s war in Ukraine. The sector has been the target of sanctions ranging from import bans and price caps, to prohibitions on the export of technology.

Last year, the US sanctioned dozens of companies that produce drilling equipment and develop new production techniques, aiming “to limit Russia’s future extractive capabilities.” The European Union in 2022 imposed “comprehensive exports restriction on equipment, technology and services for the energy industry in Russia.”

Two of the world’s largest oil-service providers — Halliburton Co. and Baker Hughes Co. — sold their Russian units and withdrew. Two more giants, SLB and Weatherford International Plc, have said they continue operations in the country in compliance with sanctions.

Failed Goal

The data indicate that these restrictive measures have largely failed.

“Only some 15% of the nation’s domestic drilling market depends on technologies from so-called unfriendly nations,” said Daria Melnik, vice-president for exploration and production at Oslo-based research firm Rystad Energy A/S.

The withdrawal of major Western oil-service companies from Russia had minimal impact because it largely left intact their local subsidiaries. These operations “were mostly sold to management, retaining the know-how built up over the years,” said Viktor Katona, lead crude analyst at Kpler.

Russia’s exploration drilling rates have also resumed growth after dipping in the wake of the pandemic, industry data show, although they remain below the 2019 peak.

“In crisis times, when companies have to optimize their investment budgets, high-risk projects, including exploration, are slashed,” Rystad Energy’s Melnik said.

Still, for the full-year 2023, Russia is set to drill exploration oil wells with a total depth of just over 1,000 kilometers, according to Dmitry Kasatkin, a partner at Kasatkin Consulting, formerly Deloitte’s research center in the region.

The drilling boom is a sign of Russia’s resilience to Western energy sanctions, but the pace of activity also carries a warning.

Over the years, the rise and fall of the nation’s drilling has moved largely in sync with changes in output, historic data show. Yet in 2023, the drilling boom came alongside production cuts that Moscow is implementing in tandem with the Organization of Petroleum Exporting Countries. That suggests the high level of activity is necessary simply to maintain output.

“The main reason for the growth in Russia’s drilling is the need to launch new wells,” said Gennadii Masakov, director of the research and insights center at Yakov & Partners. “New wells have to be launched as the currently producing fields are depleting.”

As of 2022, fields that had been in operation for more than five years accounted for nearly 96% of Russia’s total liquids production, according to a research paper from the Oxford Institute for Energy Studies. Many of those upstream projects are long past their peak output levels, the paper said.

“Natural decline is a routine factor” for the nation’s industry, said Sergey Vakulenko, an industry veteran who spent ten years of his 25-years career as an executive at a Russian oil producer.

Depletion has to be compensated either by new drilling at existing sites, so-called brownfields, or by new projects known as greenfields. The latter could be problematic, said Vakulenkо, who is now a scholar at the Carnegie Endowment for International Peace in Berlin.

“Pre-war planned greenfield developments were conceived with Western technologies in mind and need to go back to the drawing board to be adjusted to the available technologies,” he said. “In the meantime, Russian oil companies are trying to maintain the plateau by accelerating production in the brownfields.”

Some components from foreign suppliers are difficult to obtain and “the Russian industry might have to resort to simpler wells and fewer frack stages as a result of missing parts,” Vakulenko said. “This would make the wells less productive and more expensive per barrel of oil produced.”

The technological independence achieved by its drillers will be enough for Russia to keep output stable in the medium-term, said Yakov & Partners’ Masakov. Yet over time, the efficiency of Russia’s drilling operations will decline, potentially risking as much as 20% of the nation’s output if untapped reserves become uneconomic to develop, he estimated.

Source: Rigzone.com

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BRICS members Russia and Iran have officially abandoned the SWIFT payment system for cross-border transactions. The two countries will initiate payments to settle international trade using direct bank transfers. SWIFT payment system is no longer needed for trade between Russia and Iran, as both countries have agreed to carry out transactions directly through the banks. The two BRICS members will engage in direct bank transfers in their respective local currency and not the US dollar.

The direct bank transfers with no SWIFT are between Russia and Iran only, and not the other BRICS members. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.

BRICS: After Being Banned From SWIFT, Russia & Iran Initiate Direct Bank Transfers in Local Currency

Source: oilprice.com

Both Russia and Iran were banned from SWIFT in 2022 after the US pressed sanctions against the two countries. However, both countries were allowed to partake in SWIFT for a few transactions but have now decided to abandon it. The Central Banks of both the BRICS countries, Iran and Russia, are now working towards smoothing the direct bank transfers.

The two BRICS members are now bypassing the US sanctions by completely sidelining SWIFT and engaging in direct bank transfers. Mohsen Karimi, Deputy Head for Central Bank of Iran and International Affairs confirmed that the country no longer requires SWIFT.

“We have connected the transmission systems of messages of the two countries to each other. This means that the banks of the two countries no longer need Switzerland to communicate with each other and commercial banks of both countries can establish intermediary relations with each other. The exporter can issue an invoice in Rials to the Russian side and receive money from Russian banks in Iran,” said Karimi to Fars news agency.

Source: Watcher.guru

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Will Direct Lithium Extraction Disrupt the $90B Lithium Market?

Current lithium extraction and refinement methods are outdated, often harmful to the environment, and ultimately inefficient. So much so that by 2030, lithium demand will outstrip supply by a projected 1.42 million metric tons. But there is a solution: Direct lithium extraction (DLE).

For this graphic, we partnered with EnergyX to try to understand how DLE could help meet global lithium demands and change an industry that is critical to the clean energy transition.

The Lithium Problem

Lithium is crucial to many renewable energy technologies because it is this element that allows EV batteries to react. In fact, it’s so important that projections show the lithium industry growing from $22.2B in 2023 to nearly $90B by 2030.

But even with this incredible growth, as you can see from the table, refined lithium production will need to increase 86.5% over and above current projections.

2022 (million metric tons)2030P (million metric tons)

Lithium Carbonate Demand0.461.21

Lithium Hydroxide Demand0.181.54

Lithium Metal Demand00.22

Lithium Mineral Demand0.070.09

Total Demand0.713.06

Total Supply0.751.64

The Solution: Direct Lithium Extraction

DLE is a process that uses a combination of solvent extraction, membranes, or adsorbents to extract and then refine lithium directly from its source. LiTASTM, the proprietary DLE technology developed by EnergyX, can recover an incredible 300% more lithium per ton than existing processes, making it the perfect tool to help meet lithium demands.

Additionally, LiTASTM can refine lithium at the lowest cost per unit volume directly from brine, an essential step in meeting tomorrow’s lithium demand and manufacturing next-generation batteries, while significantly reducing the footprint left by lithium mining.

Hard Rock MiningUnderground ReservoirsDirect Lithium Extraction

Direct CO2 Emissions15,000 kg5,000 kg3.5 kg

Water Use170 m3469 m334-94 m3

Lithium Recovery Rate58%30-40%90%

Land Use464 m23124 m20.14 m2

Process TimeVariable18 months1-2 days

Providing the World with Lithium

DLE promises to disrupt the outdated lithium industry by improving lithium recovery rates and slashing emissions, helping the world meet the energy demands of tomorrow’s electric vehicles.

EnergyX is on a mission to become a worldwide leader in the sustainable energy transition using groundbreaking direct lithium extraction technology. Don’t miss your chance to join companies like GM and invest in EnergyX to transform the future of renewable energy.

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Japan’s Inpex plans to enter into a deal with compatriot Tokyo Gas to buy a small stake from the latter in the Inpex-operated Ichthys LNG export project in Australia.

Inpex said in a statement it would buy a 1.575 percent stake held by Tokyo Gas in the Ichthys LNG project through Tokyo Gas Australian project subsidiaries.

Through this acquisition, Inpex’s project subsidiaries would increase their participating interests in the Ichthys LNG project from 66.245 percent to 67.82 percent.

The firm did not reveal the price tag of the deal.

The deal includes interest in Block WA-50-L and Block WA-51-L including the Ichthys gas condensate field, shares of Ichthys LNG, a downstream company that owns LNG facilities, and interest in exploration permit WA-285-P.

Inpex said this agreement results from the October 2022 decision by Tokyo Gas to sell the shares in its Australian project subsidiary that holds the stake in the Ichthys project to EIG’s MidOcean Energy.

In accordance with the relevant joint operating agreements and shareholder’s agreement, Tokyo Gas notified the proposed sale to the projects’ participating interest holders whereupon Inpex exercised its preemptive rights to acquire Tokyo Gas’s participating interest, it said.

Inpex added the completion of the acquisition remains subject to the fulfillment of certain conditions, including approval by Australian government regulatory agencies.

The Japanese company has shipped 96 LNG cargoes from its Ichthys export plant during the January-September period of 2023, 16 cargoes more compared to the same period last year.

The facility at Bladin Point near Darwin has two trains and a nameplate capacity of 8.9 mtpa but it is expected to reach a production of about 9.3 mtpa due to debottlenecking.

Last year, Inpex said that it plans to ship record 132 cargoes of LNG, or 11 per month, from the Ichthys plant in 2023.

Ichthys LNG is a joint venture between operator Inpex and major partner TotalEnergies.

Also, other partners include Australian units of CPC, Osaka Gas, Kansai Electric Power, Jera, and Toho Gas.

Natural gas arrives to the LNG plant at Bladin Point from the giant Ichthys field offshore Western Australia via an 890 kilometers long export pipeline.

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