Eddy Kuperus

Groningen Gas Field Closure: Farewell to a Giant, Impact on the Market: - The Netherlands recently closed the Groningen gas field, a monumental decision with significant implications for the European gas market. - It is the largest natural gas field in Europe and one of the largest in the world, with an estimated 2,740 billion cubic meters of recoverable natural gas. - Farewell to a Giant: 1.The Groningen field held a staggering 450bn m3 of remaining reserves – that's more than half of the EU's entire gas consumption in 2023. 2.By leaving this substantial reserve untapped, the Netherlands takes a bold step towards sustainability. 3.Production peaked in the mid-1970s at over 80bn m3 annually, supplying a substantial chunk of Europe's gas needs. -Reason for Closure: 1.The decision is rooted in safety and environmental concerns , for example the seismic activity linked to gas extraction caused damage to buildings and raised safety concerns. 2.The Dutch government prioritized public safety over continued production. - Potential Market Impact: 1.While it won’t significantly affect the TTF (Title Transfer Facility) prices, it sends a clear signal to the gas market. 3.The closure could lead to moderately higher gas prices in Europe. 4.Europe will become more reliant on pipeline imports and Liquefied Natural Gas (LNG) to meet demand. 5. The market may experience less flexibility and potentially higher vulnerability to supply disruptions. Nuances to Consider: The closure has been gradual, allowing Europe to prepare for alternative sources. The impact on prices might be mitigated by factors like increased LNG supplies.

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Until or unless someone proves that CO2 causes climate change, then in the meantime: ALL of YOU who claim that CO2 causes* climate change is just full of hot air (with or without CO2) and in addition belong in prison for making such a claim that is really false; especially if this claim was used as an excuse to have this stupid "renewable" energy infrastructure nonsense that has destroyed wild life (wind turbines) which the TV media has failed or refused to report and may have been, and as well, renewable energy has been more monetarily costly than just using or employing the simple conventional means (coal, natural gas and nuclear power technologies) in terms of producing electricity. Too bad yours truly is not in charge of America especially because of all the scum bag elected officials and many dumb (really dumb) voters *credit: former US presidental campaigner

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One more potent reminder of why Europe must work hard on finding ways to energize itself without creating any dependence on oil or gas from the Middle East. US shale oil and gas show us the value of a domestic source of energy. Sure, the US Greens don't like it very much but without shale, the situation would be dire. I remember about 20 years ago, before shale really took off, gas prices in the US were among the highest on the planet. Now they are among the lowest. Europe won't pull off shale fast enough for effect but not looking at it makes it even more dependent on the machinations of whoever wants to disrupt the international order. And disruptions there will be aplenty. https://lnkd.in/dCkz4GJu

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Climate change boosted deadly Saudi haj heat by 2.5 C, scientists say MIDDLE EAST Reuters 28 June, 2024, 12:20 pm Last modified: 28 June, 2024, 01:18 pm Temperatures along the route from June 16 to 18 reached 47 degrees Celsius (117 degrees Fahrenheit) at times and exceeded 51.8 C at Mecca's Great Mosque A Muslim pilgrim prays during the annual haj pilgrimage in Mina, Saudi Arabia, June 17, 2024. REUTERS/Mohammed Torokman//File Photo The heatwave in Saudi Arabia blamed for the deaths of 1,300 people on the haj pilgrimage this month was made worse by climate change, a team of European scientists said on Friday. Temperatures along the route from June 16 to 18 reached 47 degrees Celsius (117 degrees Fahrenheit) at times and exceeded 51.8 C at Mecca's Great Mosque. The heat would have been approximately 2.5 C (4.5 F) cooler without the influence of human-caused climate change, according to a weather attribution analysis by ClimaMeter. ClimaMeter conducts rapid assessments of the role of climate change in particular weather events. The scientists used satellite observations from the last four decades to compare weather patterns from 1979 to 2001 and 2001 to 2023. Although dangerous temperatures have long been recorded in the desert region, they said natural variability did not explain the extent of this month's heatwave and that climate change had made it more intense. The assessment also found that similar past events in Saudi Arabia occurred in May and July, but now June experiences more severe heatwaves. "The deadly heat during this year's haj is directly linked to fossil fuel burning and has affected the most vulnerable pilgrims," said Davide Faranda, a scientist at France's National Centre for Scientific Research who worked on the ClimaMeter analysis. Climate change has made heatwaves hotter, more frequent and longer lasting. Previous findings by scientists with the World Weather Attribution group suggest that, on average globally, a heatwave is 1.2 C (2.2 F) hotter than in preindustrial times. Medical authorities generally do not attribute deaths to heat, but rather to the heat-related coronary or cardiac illnesses exacerbated by high temperatures. Still, experts said it is likely that extreme heat played a role in many of the 1,300 haj deaths. "The idea that an activity so central to the Muslim faith is now so dangerous needs to be a wake-up call," said Mohamed Adow, director of nonprofit Power Shift Africa. "Saudi Arabia is one of the biggest oil producing nations in the world and they often act to frustrate and delay climate action. They need to realise their actions have consequences." Saudi Arabia is the world's second-largest oil producer, after the United States, and state oil firm Saudi Aramco is the world's largest corporate greenhouse gas-emitter. It is responsible for more than 4% of the world's historical carbon emissions, according to a database of emissions from carbon majors.

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🇪🇬 Egypt's energy landscape has seen notable shifts and challenges in recent years. The resumption of operations at the Damietta LNG plant in 2021 marked a significant milestone, allowing Egypt to ramp up its natural gas exports ( about 8 million Tons in 2022) , particularly to global markets like Europe 🇪🇺 , Turkey 🇹🇷, Spain🇪🇸, South Korea 🇰🇷,…etc. However, the decline in production at Zohr, the country's largest gas field over the course of 2023, has presented a new set of challenges. This decline, coupled with economic strains, population growth, and an influx of refugees from neighboring countries due to political conflicts, has exacerbated the current crisis. To address these challenges and diversify its energy sources, Egypt 🇪🇬 has been investing in renewable energy. Wind, solar, and hydroelectric power have been integrated into the energy mix, representing about 14.5% of power generation. Egypt 🇪🇬 has ambitious plans to further increase the share of renewables to 42% in the electricity mix by 2035. Additionally, there are initiatives underway to position Egypt as a hub for green hydrogen production, showcasing the country's commitment to sustainable energy solutions and its potential to play a significant role in the global energy transition.

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I have friends in the Dutch energy transition community (i really do) and they have been doom and gloom ever since the election. They should cheer up. The new coalition agreement actually shows how deep and unstoppable is the political momentum for the energy transition. My strictly personal take on the policy developments that have been condemned on social media as pushing the planet to a fiery doom is the following: ·      Shifting renewable deployment emphasis to offshore wind with consideration for fisheries: This makes perfect sense in an infrastructure constrained country where onshore renewable interconnection became extremely challenging anyway. With a strong maritime engineering sector, offshore wind will support Dutch green jobs, the latest tenders already had marine ecology assessments which the industry incorporated into project designs. ·      Support for carbon capture: CCS is mainstream climate science, it features in the transition strategies of most net zero jurisdictions including the EU’s which was designed by Dutch green leader Mr Timmermans in his previous role at the Commission. CCS will enable Rotterdam remaining an industrial hub in the net zero society. ·      Existing nuclear stays open, new nuclear is encouraged: Prematurely shutting down nuclear led to increased fossil fuel use in every single place that tried it. Given the space constrains and high industrial energy use of the Netherlands, keeping nuclear in the mix for the long term is a reasonable strategy. ·      Eliminating EV subsidies: given the amazing technology learning curve of EV batteries, I have no doubt that a dynamic EV penetration will continue. A lot of those subsidies ended up anyway in the upper middle class suburbs swarming with Teslas. ·      Eliminating the 100 km/h speed limit: the only losers will be the apps that everyone uses to evade radar control. This regulation was never consistent with social preferences. With electric cars, it does not matter. ·      Maintaining offshore oil and gas production: We might have to agree to disagree, but shutting down hydrocarbon production in stable democracies ahead of the physical transition of demand only benefits the hostile dictatorships and corrupt oligarchs who would step into the market gap while demand is there. The Netherlands has very tough environmental regulations on the oil and gas industry, if it plays a role in serving the remaining demand that is good for the planet. I’m certain that we will see a speedy decline of Dutch CO2 emissions under the new coalition agreement. If this is what is labelled as “climate sceptic backlash’, take the win. There will of course be disagreements and debates on various policies as well as on broader social and cultural issues. This is natural, and the Netherlands has a strong democratic tradition to resolve them. My plea to the Dutch green community is to maintain open minded collaboration.

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Mr. Moin Raza Khan's article on the exploration and production potential of lignite coal in Pakistan provides a comprehensive fact sheet on the country's fossil fuel resources, which include gas, oil, and coal (lignite). However, it focuses solely on exploration and overlooks the most critical aspect of any energy project: financing. Globally, lignite mining costs average around $10 per ton, so extracting 200 billion metric tons of lignite would require $2 trillion. The time to extract such vast reserves would span over 100 years. Lignite power plant construction costs vary, but the global average is around USD 4,200 per kW. Therefore, the estimated investment for a 5,000 MW lignite coal power plant in Pakistan would be around $21 billion. These staggering investment requirements raise a crucial question: Who will provide these funds? Pakistan lacks the capability to provide even 1% of the investment needed for its lignite project. The country's inability to secure funding for the Iran-Pakistan gas pipeline project, which requires only $1 billion and has stalled for 13 years, highlights its dire economic situation. Regarding foreign investors, Pakistan's oil & gas and energy experts, including Mr. Khan, have demonstrated a complete lack of awareness, incompetence, and poor insight into the international finance market and the ongoing rapid global energy transition. Over the last decade, and especially in the past four years, nearly all major global financial institutions, banks, companies, and state governments have deprioritized financing for fossil fuel projects in favor of renewable energy projects due to climate laws and strict emission regulations. Consequently, securing any foreign investment for Pakistan's lignite projects is practically impossible. Recently, Pakistan's E&P policymakers and experts announced "Tight Gas" and "Shale Gas" policies, focusing on the exploration and production of tight gas and unconventional oil & gas resources. The E&P industry claims that Pakistan has substantial resources of tight gas and unconventional oil & gas, estimating an investment requirement of around $120 billion. Yet again, these announcements neglect the crucial aspect of financing. Who will fund these tight gas and unconventional oil & gas resource projects in Pakistan? Unfortunately, all of Pakistan's energy sectors—including oil & gas (E&P), electricity, coal, and minerals—are in a deplorable state due to corruption, inadequate planning, poor governance, and flawed decisions and policies. Moreover, Pakistan's energy sector policymakers and leading professionals lack the necessary competence, vision, and skills in the international finance market and the ongoing global energy transition. Otherwise, they would not have proposed these lignite projects, tight gas projects, and unconventional oil & gas projects at this critical time in the international financial market, where securing any funding for such projects is almost impossible. 😭 😭

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Gas on the Rise: A Shift in Oil and Gas Strategies This analysis explores how major oil and gas companies have adjusted their production focus over the past decade. Examining data from 2013 and 2023, an infographic reveals a trend towards increased natural gas production, particularly among national companies. While giants like Saudi Aramco, PetroChina, Rosneft, and Petrobras remain heavily invested in oil, their gas production has seen a significant rise. Saudi Aramco's output quadrupled, Rosneft's tripled, and PetroChina's nearly doubled. This trend contrasts with international players like Shell and ExxonMobil, who experienced a slight decline in gas production. Interestingly, bp's sharp drop in oil production did not significantly impact its gas output, which remained stable. Chevron stands out, showing an increase in gas production alongside a decrease in oil. These shifts suggest a strategic change within the industry. Gas, considered a cleaner fossil fuel than oil, could point to companies aiming to lessen their environmental impact and align with stricter regulations. Furthermore, a more balanced production portfolio may offer protection against price fluctuations in the oil and gas market. The recent surge in gas demand, particularly in Europe after the Russia-Ukraine conflict, has likely played a role. European nations, heavily reliant on Russian gas, have sought alternative sources, boosting exports from Norway and LNG imports from various countries. However, this trend has downsides. High gas and LNG prices strain economies like Pakistan, forced to rely on expensive imports to meet their energy needs. #pakistan #pakistannews #pakistaneconomy #pakistanstockexchange #lahore #karachi #islamabad #oilandgas #oilandgascompanies #gasindustry

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#energytransition Investments in the energy transition are falling way short of what is needed for its success. The fresh warning comes from BlackRock, which said annual investments in the shift away from hydrocarbons need to almost double from their current record levels. But it’s getting less likely this would ever happen. In a new edition of its Investment Institute Transition Scenario, the bank said that moving the transition forward would require more money from both public and private sources and that, for its part, would require “alignment between government action, companies and partnerships with communities,” according to Michael Dennis, head of APAC Alternatives Strategy & Capital Markets at BlackRock, as quoted by CNBC. BlackRock mentioned the $4-trillion figure as the necessary sum to be invested in the transition annually back in December when it released the original IITS. The amount was as impressive then as it is now, not least because it was double the amount of earlier investment estimates. What makes it even more impressive is the fact that last year’s record transition investments came in at less than half that, at $1.8 trillion. The situation is very much different for transition companies. Many of these are struggling to stay afloat amid higher-for-longer rates despite generous government help. Many are folding or, in the case of European companies, relocating to the U.S. where government help is even more generous. Turning in a profit has become a major challenge, and investors are not sticking around to find out if wind and solar developers are going to overcome it. Source: OilPrice.com https://lnkd.in/dXzsj3sW #globalenergy #oil

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6 years before the global ambition of eliminating routine flaring it increased by 7%. This is a disgrace both from environmental and development point of view. The direct impact is more than 300 million tons CO2, roughly the total emissions of Italy. Worse still, a gas flare never burns completely so methane also escapes to the atmosphere that has a brutal greenhouse impact. In gas turbines the amount of gas flared away would be sufficient to provide a decent 1000 kwh/year basic supply for every person in the planet who don’t yet have electricity. Large international companies listed on Western stock markets certainly including Shell have very stringent flaring and methane leakage policies. Unfortunately, this matters less and less as due to increasingly aggressive litigation and divestment campaigns strongly encouraged by green left politics this part of the oil and gas industry is retrenching: Shell’s oil production is 20% below the pre covid level, upstream investment is half of the peak while global oil demand exceeded the 2019 level already. As a result, demand increasingly relies on production from actors whose priorities are very different. Two thirds of this worrying increase in gas flaring came from just two countries: Russia and Iran. Despite both of them committing widely condemned violations of human rights and international law, their oil and gas industry enjoyed a resurgence recently. Given the robust demand recovery there was no political will to implement really binding sanctions on Russian oil: Instead of the 1- 3 million barrels/day decline predicted at the start of the war Russian production and exports are essentially unchanged. Surging production of Iran was the second largest incremental source of oil during the post covid recovery with Western foreign policy looking the other way and even encouraging more Iranian oil to the market. In both Russia and Iran the oil industry has the capability to sweat the existing assets, but there is no expertise and access to technology for the sophisticated monitoring and abatement systems that Shell and our peer group applies. For both regimes filling the coffers of the military and the secret police is far more important than investment in flaring abatement. Any oil and gas producer has a responsibility to implement stringent standards. I’m proud of the cutting edge work Shell upstream is doing ranging from drones and satellite monitoring to analytics by AI. But Western politicians also should show leadership and call down the campaigns against domestic oil and gas investment in Western democracies. Will they tell the misguided activists and sustainable finance gurus that “just stopping oil’ in the West and emboldening Russia and Iran is a really bad idea not only from a geopolitical but also from an environmental point of view as well? If not, don’t be surprised by similar sobering reports in the future.

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#GreenDeal & #Coal. Vitol is acquiring Noble Resources for ~$210 million. "Noble Resources" says the company is one of Asia’s leading independent energy products and "steel-making raw materials" supply chain managers. "Noble Resources" trades 35 mt thermal #coal per year. In 2020, Argus Media report underlined "Price, not policy, continues to be the key driver impacting investment in #coal supply infrastructure". After significant dramatic geopolitical and economic changes, price, not policy, still continues to be the key driver impacting investment in coal sector. Vitol's press memo: https://lnkd.in/enuB9q8N

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Geological Hydrogen Storage: Geochemical Reactivity of Hydrogen with Sandstone Reservoirs

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This not happening this year or even next year unless a miracle happens! The chance this happening is a proof that the world is flat instead of round! If it does happen it is political and will also cause inflation to go out of control worse then it is! Individuals are constantly using debt to attempt to maintain a current lifestyle that is unsustainable do to their income. The proof is credit card debt, individuals not paying their student loan debt, the repossessions of vehicles, foreclosures on homes, and bankruptcies of personal and businesses alike. The unemployment reports are being changed after they are submitted to the public months later on job creation and unfortunately the state and government jobs are also effectively hurting social security due to those workers do not pay in to social security system through their payroll checks. The private businesses and self employed are paying in to the social security program through FICO tax! The information is on social security website on ratios of workers vs beneficiaries is way out of unstable to continue at the current path! There is to many variables and issues that is causing inflation and the thought of FED reducing the interest rates will only intensify the issues and problems with the economy! Your thoughts? https://lnkd.in/gntdzy6Z

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#natgas Natural Gas price (XNG/USD) has given traders a nice run, rallying 40% since the end of March. This movement partially came on the back of Israel and its continuing attacks on Gaza. With pressure building from world leaders, calling out Israel to at least have a ceasefire, tensions are likely to ease from here. Meanwhile, Europe has secured enough Gas supply before the next heating season and ahead of the substantial longer-term measures that will kick in as of 2025 in 2028, making the bloc independent from Russian Gas. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades steadily above the crucial support of 105.00 on Tuesday ahead of the speech from the US Federal Reserve (Fed) Chairman Jerome Powell. Markets are already bracing for the Consumer Price Index (CPI) for April, which is set to be released on Wednesday, so any words from Fed Chairman Powell on possibly keeping rates higher for longer might influence the initial Fed rate cut prospects to later 2024 or even earlier 2025. The outcome of that scenario would be a stronger US Dollar across the board, weighing on Gas prices denominated in USD. Natural Gas Technical Analysis: Buyers already in the dip? Natural Gas rally trade since the end of April is running out of steam. The rally has reached the end of the line and faces a firm rejection against the 200-day Simple Moving Average (SMA) at $2.53 on Tuesday. A big catalyst or driver will be needed to push through that cap on the topside. If Gas price breaks above the 200-day SMA, the $3.00 marker is the first level to watch. Once through there, the pivotal level near $3.07 (high of March 6, 2023) will come into play and mark a new high for 2024. Further up, there is room for a quick crossing towards $3.69. On the downside, a double belt is awaiting to provide support with the 100-day SMA at $2.09 and the pivotal level at $2.11 (low of April 14, 2023). Should this support area fail to hold, then the ascending green trendline near $1.98, together with the 55-day SMA at $2.00, should avoid a further decline. Source: #fxstreet https://lnkd.in/dvGpq4KE #globalenergy #oilgas

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Interesting survey from 90+ US #exploration and #production companies shows the average cost of producing a barrel of #oil in various US plays: https://lnkd.in/dkw-PuCM

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KOC discovers giant oil reserves in Al-Nokhatha offshore field Kuwait Oil Company (KOC) announced on Sunday the discovery of huge commercial quantities of light oil and associated gas in the offshore Al-Nokhatha field, located east of Kuwait’s Failaka Island. The initial estimated area of the field is approximately 96 square kilometers, marking a key breakthrough in Kuwait’s exploration of hydrocarbon resources in its marine area, according to KOC’s statement to KUNA. Preliminary estimates suggest the hydrocarbon volume at this field to be about 2.1 billion barrels of light oil and 5.1 trillion standard cubic feet of gas, equal to approximately 3.2 billion barrels of oil equivalent, it said. These initial findings indicate huge potential to further enhance and increase hydrocarbon resource quantities in various layers and reservoirs within the discovered field, KOC added. More info @ https://lnkd.in/dGM6Ygs4 #oilandgasindustry #exploration #energy #offshore

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