Communicator

Troll C

Date: February 9, 2025

Norwegian energy giant Equinor has announced a significant shift in its energy strategy, halving its planned investments in renewable energy over the next two years while ramping up oil and gas production.

The company will reduce its renewable energy spending to $5 billion, down from the $10 billion it previously committed, citing rising costs and slower-than-expected progress in low-carbon projects.

Equinor has also revised its 2030 renewable capacity target to 10-12 GW, a reduction from the earlier goal of 12-16 GW. This adjustment comes as the company focuses on "value creation" and shareholder returns.

CEO Anders Opedal emphasized that the decision aligns with market realities, noting that profitability in renewables has not met expectations. Despite these changes, Equinor maintains its commitment to achieving net-zero emissions by 2050.

It plans to continue investing in carbon capture and storage (CCS) and hydrogen technologies while reducing emissions from its oil and gas operations. However, the company will now prioritize increasing oil and gas output by 10% through 2027, leveraging its assets on the Norwegian continental shelf and other key projects like the Johan Sverdrup oil field to produce 2.2mn barrels of oil equivalent per day by 2030.

This strategic pivot reflects broader industry trends as major energy companies, including BP and Shell, scale back renewable ambitions amid economic pressures and geopolitical uncertainties.

While Equinor's move is expected to bolster cash flow and shareholder value, it raises questions about the pace of the global energy transition and the challenges of balancing profitability with sustainability goals.

#energytransition  #renewableenergy  #oilandgas  #equinor  #hydrogen #carbonecapture  #ccs  #greenhydrogen #Sustainability 

African Energy Week 2024 presents the vision of a diversified energy future

AFRICAN ENERGY WEEK: OIL & GAS DEMAND EXPECTED TO REMAIN STRONG THROUGH 2050

Global demand for oil and gas is expected to remain strong in the coming decades, according to Haitham al-Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC). Speaking at the  Africa Energy Week (AEW) in Cape Town,  South Africa, on 6 November, Haitham al-Ghais explained that this increase in energy demand would be driven by global population growth and a doubling of global GDP by 2050. “OPEC sees the outlook for global oil and gas consumption as very positive. By 2050, energy demand will increase by 24%,” he said.

The world population, currently 8 billion, is expected to reach 9.7 billion by 2050, with a significant share of this growth concentrated in developing countries, particularly in Africa. Al-Ghais stressed that this population increase and the economic growth of emerging megacities and cities of several million inhabitants would amplify the demand for energy, requiring the mobilization of all available resources, including fossil fuels.

The leading role of oil and gas

According to OPEC projections, oil and natural gas will still account for 55% of global energy supply in 2050, with oil alone accounting for 30% of this share. “The world will need all kinds of energy resources in the coming decades,” the OPEC Secretary General said, adding that renewables, although growing, will not be enough to meet this increased demand. In order to meet the growing needs and stabilize markets, OPEC estimates that massive investments will be needed in the oil sector. “Until 2050, the oil sector will require investments of $17.4 trillion,” al-Ghais said, adding that this funding will be mainly directed towards production programs to ensure stable supplies and prevent sudden fluctuations in fuel prices.

A strategic event for the sector

The African Energy Week, which brings together over 1,000 participants, including officials from 22 African countries, industrialists, business people and analysts, continues until November 8. The event provides a platform to discuss energy challenges in Africa and how the continent can meet the growing global energy needs.

Source

#oilandgas #crudeoil #naturalgas #africa #refining #refinery #oildemand #energy #fossilfuels #fuelprices #oilsector

Francesco Sassi, 21 Oct 2024, eklipX Research

Spanish energy giant Repsol is freezing the development of all major hydrogen assets in the country, says the company.
After international companies cancelled their plans to export hydrogen from Norway to Germany, this is another alarming sign for the industry in the E.U.
According to Repsol, the world-renowned Oil & Gas Spanish giant, has halted all developments of green hydrogen projects in Spain with a large electrolysis capacity, namely over 350 MW. The company says that the existing regulations in Spain are at the root of this decision.
From Repsol's perspective, the current political discussion about possible windfall taxes on energy companies and banks to be confirmed in the long term makes these investments simply too risky.  Spain is one of the few E.U. countries to still apply a windfall profit tax to fund relief measures for consumers. In 2023, the levy granted Madrid additional €2.9 billion going into the State's coffers.
At the end of 2023, the same government extended the measure for 12 months, allowing companies to partially offset the levy on renewable energy projects. Now, the tensions between the State & Market stakeholders are rising due to the proposal of extending the windfall tax in the future.
Thus, we should understand Repsol's decision in the contexts of growing, domestic political frictions, and the instability of the hydrogen market in the E.U.

#oilandgas  #crudeoil  #naturalgas  #hydrogen  #greenhydrogen  #electrolysis  #repsol  #spain  #eu  #pipeline 

US Presidential candidates have diverging views on the oil industry.

Trump supports expanding production, which could lower oil prices. Harris, who favors green energy, has previously supported a ban on fracking and could limit production. Under president Biden, the free cash flow of the top 10 oil and gas companies tripled in 3 years.

Trump proposes a 10% duty on all imports and a 60% duty on Chinese imports, which could reduce energy demand. Trump may tighten sanctions against Iran but ease measures against Russia.

#russia  #iran  #usa  #trump  #harris  #potus  #oilandgas  #greenenergy  #oilprice  #fracking 

Oil company Chevron is moving its headquarters from California to Houston after repeated warnings that the Golden State's regulatory environment makes it difficult to do business there. The move announced Friday will end the company's more than 140-year existence in the largest U.S. state.

Chevron has already scaled back new investment in California refining, citing "confrontational" government policies in a state with some of the strictest environmental rules in the US. In January, refining chief Andy Walz warned that the state was playing a "dangerous game" with climate rules that threaten to spike gasoline prices.

Chevron joins a long list of California emigrants that includes Oracle Corp., Hewlett Packard Enterprise Co., Tesla Inc. and Social Network X. The migration among former Silicon Valley tech giants has been driven largely by tax and cost-of-living considerations, according to Bloomberg.

However, according to Ilon Musk's view, it's not so much about taxes as it is about policies implemented by the state's leadership. And that includes the green agenda (with its taxes on conventional oil and gas) and drug liberalization and so on.

#usa  #texas  #california  #chevron  #oilandgas  #refining  #netzero  #carbontax  #greenagenda 

Sunset on a refinery

"Oil refineries across Europe will be forced to shut as the West abandons fossil fuels in the race to net zero," – said BP CEO Murray Okincloss, commenting on the company's financial statements, The Telegraph reports.

He believes that older and smaller refineries in the EU will close or switch to biofuels as conventional oil refining becomes unprofitable due to a combination of soaring fuel taxes and falling demand from drivers switching to electric cars.

“So I would expect the least efficient refineries, which are the smallest, oldest around the world, to gradually close down as the world transitions over the next 10 to 30 years.”

BP has four refineries in Europe, three of which are already planned for conversion to produce biofuels including sustainable aviation fuel (SAF). Grangemouth Refinery in Scotland, which is owned by Ineos, employs 500 people but is scheduled to shut early next year.

Data from Fuels Europe shows that refining capacity in the EU, as well as in the UK, Switzerland and Norway, is already declining. Capacity has fallen from 781 million tonnes a year in 2009 to 677 million tonnes now. This means that Europe accounts for about 15% of the world's refining capacity - well behind the US with 21% or  APAC with 36%.

Contradicting the statements reported above, BP said in June that it was scaling back this year’s plans for the development of new sustainable aviation fuel (SAF) and renewable diesel projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression, according to Oilprice.

“This is aligned with BP’s drive to simplify its portfolio, focusing on value and returns,” the UK-based supermajor said.

In June, BP declared to continue investing in deepwater fields in the Gulf of Mexico, and made a statement saying it was "scaling back" new biofuels projects.

The company has tempered its enthusiasm for its low-carbon program, and with it cut its climate commitments, adapting to an operating model that assumes continued high oil demand into the 2040s and beyond.

“Labour policy says oil and gas production in the North Sea will be with us for decades to come ... They launched a consultation process with the sector last night and we’ll be engaged deeply with them on that,” Okincloss said.

The oil giant's net profit for the second quarter of this year was higher than expected ($2.76 billion). The company's low-carbon and natural gas division, on the other hand, performed poorly, posting a loss of $0.1 billion.

#refining  #refinery  #crudeoil  #naturalgas  #oilandgas  #europe  #saf  #sustainableaviationfuel  #renewablediesel  #biofuels 

Enverus Intelligence Research (EIR) analysts have provided an overview of merger and acquisition (M&A) activity within the U.S. upstream sector for both the fourth quarter and the entirety of 2023.

The final quarter of 2023 witnessed unprecedented activity, marking a historical high in observed M&A transactions within the U.S. oil and gas industry, totaling $144 billion. Over the course of the entire year, M&A deals amounted to $190 billion, also setting a new record.

Notably, two significant transactions significantly contributed to these figures: Exxon's acquisition of Pioneer Natural Resources for $65 billion and Chevron's purchase of Hess for $60 billion.

This surge in M&A activity is noteworthy considering the backdrop of a decade-long decline in investment in oil and gas exploration. Despite the identification of major shale oil fields in the U.S., investment in new wells has waned, with industry giants opting to acquire existing assets instead.

Analysts at Dittmar observed that the market is currently characterized by an imbalance, with more buyers than sellers, resulting in escalated prices.

#oil &gas #m &a #upstream  #oilandgas  #exxonm  #chevron 

According to Bloomberg sources, Shell is planning to lower its green energy targets. The updated long-term strategy will entail increased investment in oil and gas sectors to enhance shareholder returns. The company might unveil this new climate strategy as early as this Thursday. Under the previous CEO, Ben van Beurden, Shell's 2020 strategy aimed for zero net profit to prioritize investments in green energy and achieve net zero emissions by 2050. Since Wael Sawan assumed the role of CEO, Shell has shifted focus towards delivering returns to investors. This shift has resulted in increased payouts to shareholders, job cuts, and a larger portion of investments directed towards  hydrocarbon production. Similar to Shell, BP Plc of Britain revised its climate plans last year, intending to produce more oil and gas and emit more CO2 than previously planned. The announcement of BP's new plans led to an 8% rise in the company's shares.

#greenenergy  #oilandgas  #esg  #climate 

British Petroleum (BP) appears poised to refocus on hydrocarbons, a move that could bolster the company's profitability. However, without a clear declaration of this shift, investors may not reap the benefits, potentially stagnating the share price, as indicated by active investor BP Bluebell Capital Partners, as reported by Bloomberg.

According to Bluebell Capital Partners co-founders Giuseppe Bivona and Marco Taricco, BP ought to ramp up investments in oil and gas while scaling back spending on costly renewable energy ventures to enhance returns for shareholders, as outlined in Bluebell's October communication.

The hedge fund observed indications of BP moving in this direction during its fourth-quarter presentation, the first since Murray Auchincloss assumed leadership of the company. Auchincloss emphasized a "pragmatic" and "flexible" approach to the energy transition, suggesting that BP's oil production could surpass the anticipated 2-3% target for 2027.

While holding only a minor stake in BP (the exact size undisclosed), activist investor Bluebell, through its co-founder Bivona, has engaged with numerous major shareholders, many of whom echo concerns about the company's underwhelming shareholder returns and endorse the fund's proposal for strategic change.

Bluebell's history of shareholder activism includes advocating for a leadership change at Danone in 2021, attempting to compel Glencore to divest its coal business that same year (though unsuccessfully), and calling for Bayer to divide its business into three segments in 2023.

#renewable  #renewableenergy  #oilandgas 

Prime Minister Narendra Modi announced that India is poised to invest approximately $67 billion in the development of its oil and gas industry in the upcoming years. Modi stated that the aim is to elevate the share of natural gas in the energy mix from 6% to 15%. He highlighted the necessity of this investment, estimating it will be executed over the next 5-6 years.




Modi further underscored India's significant position as the third-largest global consumer of energy, oil, and LPG, and the fourth-largest importer and processor of LNG. He projected that India's hydrocarbon demand would escalate from the current 19 million barrels of oil equivalent to 38 million boe by 2025.

Emphasizing India's achievements in renewable energy, Modi noted that the country ranks fourth globally in installed renewable energy capacity. He added that approximately 40% of the nation's installed capacity is derived from non-fossil fuel sources.

Considering this trajectory, Modi expressed confidence that, with appropriate strategies, India could potentially serve as a quality alternative to Europe in the coming years, thus hinting at significant geopolitical implications.

#naturalgas  #oilandgas  #investment  #enrgy  #india