The world’s advanced economies will see an uptick in their emissions, bucking a five-year long decline. Energy-related CO2 emissions in North America, the EU and industrialized countries in Asia Pacific grew by around 0.5% in 2018, as higher oil and gas use more than offset declining coal consumption, according to the International Energy Agency (IEA).
Princeton University researchers have proposed a U.S. pipeline network that would capture, transport and store underground up to 30 million metric tons of emissions each year – an amount equal to removing 6.5 million cars from the road. The pipeline would transfer CO2 waste from ethanol refineries in the American Midwest to oilfields in West Texas for use in enhanced oil recovery (EOR).
A bitter early cold in the U.S. has propelled up the Henry Hub Dec-18 contract prior to its expiry, raising questions about how much higher the Jan-19 contract can go. “The market is searching for a sweet spot in pricing,” according to Energy Aspects, “[whereby] enough power demand is being redirected away from gas and that deliverability concerns do not arise in the first half of Q1-2019.”
UK-based Turbine Efficiency Group (TEG) has agreed to pay almost $3 million for the acquisition of Gas Turbine Applications (GTA), an after-market service provider in Oklahoma. The takeover broadens TEG’s service offering for include industrial gas turbines, notably for SGT-100, SGT-200, SGT-300, TA, TB, Saturn and Centaur.
Qatar has announced to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) effective January 1, 2019. Following a long feud with Saudi Arabia – the de facto leader of the oil cartel – Qatar now wants to focus efforts on increasing its gas production by over a third to nearly 110 million tons in a bid to boost LNG exports.
French energy major Total seeks to limit its exposure to commodity cycles by integrating its activities across the supply chain. “We start our integration quite high upstream on the gas chain and that leads all the way to electricity, considering that 60% of all gas is used to generate electricity,” said Philippe Sauquet, President of Total’s Gas, Renewables & Power.
Cost and performance of battery technologies will not only be shaping customer acceptance of electric vehicles in the coming years, but also determine how easy it will be to integrate renewable energy into the grid. Tracking the relation between the dramatic drop in prices for batteries and their usage, the International Energy Agency (IEA) says “for each doubling of output, lithium ion battery prices have been getting 19% cheaper.”
Though the deepwater industry appears in good health, Wood Mackenzie warns that cyclical cost inflation could raise break-even costs once again. The most competitive region is the Americas, and particularly Brazil, Guyana, and the Gulf of Mexico, where over 50 billion boe of pre- and post-sanction deepwater developments are now profitable under an oil price of US$60/bbl.