Trinidad and Tobago business to be fit for Europe

The European Market is the largest in the world, with a population of over 448 million people in 27 member states.

Trinidad and Tobago, as a Cariforum member, has a jump on the competition worldwide on dealing with European businesses, as it signed the EU/Cariforum Economic Partnership Agreement (EPA) in 2008. EPA gives Cariforum states easier access to trade relationships with Europe, as one mandate of the agreement is to promote and export non-energy goods and services from Cariforum states to the EU.

EU Ambassador Peter Cavendish said TT’s trade relationship with Europe results in $33.58 billion in exports from TT to Europe. Business leaders can visit any country in the EU and stay for up to six months. The European market is not for the faint of heart. Standards for entering the market are high and the competition to stay in it is stiff, especiallyas it is one of the most saturated markets in the world.

This is why the Fit For Europe programme was launched in TT through collaboration of the Ministry of Trade and Industry, the Caribbean Development Bank, consultancy firm Market Scope International and the EU. The programme was launched in 2016, with the goal of enhancing the readiness of businesses to enter the market. This year, the programme selected 20 businesses out of 100 applications. A contract has been offered to one company and negotiations are ongoing with European stakeholders.

EU opportunity

At the closing ceremony of Fit For Europe II, Hanna Vokes director and project consultant of Market Scope International, said there were great opportunities in Europe for Caribbean countries to expand and grow into the market.

“We have seen that there is a clear opportunity for differentiated niche products with a story to tell across Europe. There are also opportunities for bean-to-bar chocolate across Europe and alcoholic beverages in Scandinavia.”

However, there were significant challenges facing TT businesses that would prevent them from entering the market. She said each EU member has its own identity, cultural moods, opportunities and challenges and each country has its own legislation, regulations and policies, of which each business needs to be aware and to comply with.

“Companies looking to target European partners need to be aware of the cultural nuances of the specific countries they are targeting, ensuring they are fully aware of and up to date with EU and country-specific compliance and they are adequately prepared in terms of risk management and done their research and due diligence on the opportunities and potential target partners.”

The Fit For Europe programme was designed to coach businesses in identifying the target markets and all the intricacies involved in entering them. This year’s programme trained businesses in different areas, including branding, market entry strategies, propositioning and EU standards, through workshops, mentorships and market research.

In addition to capacity-building the programme arranged “matchmaking” meetings with businesses and potential partners. Fit for Europe II focused on entry into the German and Swedish markets.

Germany, with a population of 83 million, is the largest consumer market in Europe and the fourth largest market in the world. The volume of trade, consumers and its location in relation to the rest of Europe makes it a significant market for exporters. It has a federal system with 16 states each with its own parliament, constitution and autonomous government.

Sweden is the largest Scandinavian country, and one of the least populated, with approximately ten million people. It is a limited constitutional monarchy, with a parliamentary system and public-private partnerships at the centre of its economic model.

One of the most innovative and transparent countries in the world, with few barriers to entry, it was ranked the fourth most competitive country in the world in 2022. Sweden is highly focused on the environment with 60 per cent of its energy from renewables and to be fossil-free and using 100 per cent renewables by 2045. Sweden ranked second out of 132 economies in the 2023 global innovation index.

Vokes said part of the programme included outreach and matchmaking exercises to get local companies into the market. For one company, the programme reached out to 144 companies in Germany and 117 in Sweden. Ten business-to-business (B2B) meetings were also held. From the outreach, four companies shortlisted the local business in their supplier databases.

Cavendish described the programme as more than a training programme, but a transformative journey.

“We have prepared 20 diverse, innovative companies, in the fields in the valued goods and services sectors, to access and thrive in the European market. The unwavering dedication shown by these companies, many led by women, is a testament to the spirit of resilience, ambition ‘stick-to-it-iveness’ and creativity that defines this nation. It is clear that the Fit for Europe II programme has equipped participants with the tools and strategic insights to meet and surpass EU standards.”

Trade and Investment Promotion Agency president Franka Costelloe said this year’s Fit For Europe programme focused on two critical barriers – the lack of market intelligence and difficulty in meeting international quality standards.

“Many companies were unfamiliar with the EU market’s nuances, such as packaging requirements, consumer preferences and logistics. Additionally compliance of mandatory and voluntary standards in various EU countries was a significant challenge. Fit for Europe II focused on enhancing the readiness of TT businesses with particular emphasis on improving international competitiveness for the EU market.”

This year’s programme also included a virtual trade mission targeting companies that were ready for export particularly to Germany and Sweden.

Community-building was also an important aspect of the programme.

“This collaborative environment fostered the exchange of expertise and insights across companies of varying sizes and stages of export development, helping each of them grow and compete more competitively on the international stage.”

Minister of Trade and Industry Paula Gopee-Scoon said the Fit For Europe II project was strategically aligned with several initiatives, including TT’s national development strategy 2016-2030, and supports the Roadmap to Recovery, a plan to navigate the country out of the shocks of covid19, which aims to cultivate globally competitive businesses and establishes linkages to promote export diversification.

The programme enabled government and the EU to translate the 2008 agreement into a tangible result, implementing effective planning and capacity-building initiatives which would enhance the effectiveness of local companies. The newly-formed trade and investment promotion agency, a merger of ExporTT, InvesTT and Creative TT, will establish the ground work for a third Fit for Europe initiative.

“Fit for Europe projects executed under the new agency present opportunities to create a robust programme that addresses capacity-building needs of the agency in a coordinated manner. This initiative can therefore target more companies, enhancing the project’s reach and helping more businesses enter the EU markets.”

To enter the European market, do this:

Volkes said companies that enter into the European market and succeed have a certain set of qualities that make them competitive.

“Companies that succeed in the EU have absolute clarity on who, when, where and how (in the European market) and they focus on outputs, not activities. They understand the power of partnerships and the importance of persistence. They are prepared and they are able to adapt, respond and provide solutions to problems and opportunities. They are focused, they are passionate and they have drive.”

Tips for entering Europe

International trade development strategist Janos Botka shared this sentiment, listing tips for successful entry into the market:

1. Comply with EU quality and safety standards

Like the training and information shared in the Fit for Europe programme, Botka said the EU has strict rules on quality and safety standards for agricultural products, food and beverages. He advised that companies get familiar with EU regulations such as pesticide limits, contaminant levels and hygiene standards.

2. Obtain the necessary certifications and labels

Certifications like Global GAP for agricultural practices, fair trade and organic labels are valued by consumers in the EU. Products often need to have a proper display of health and safety certifications, such as ISO 22000 for food safety. These boost credibility and consumer trust. He advised businesses to develop a robust packaging strategy and consider eco-certifications for added value.

3. Understand the consumer

Botka and Volkes noted that European consumers have specific preferences for products which use natural, organic and sustainable methods. Botka said companies should invest in market research to understand trends and adapt products to increase attractiveness.

4. Build relationships with local distributors and importers

Botka said establishing relationships with distributors in Europe can ease entry into the market. Local distributors can help with understanding distribution channels, regulatory requirements and consumer preferences. Programmes such as the Fit For Europe II familiarise businesses with the market from a local perspective.

EU importers seek transparency in supply chains, especially for agricultural and natural ingredients. Implementing traceability systems allowing tracking of products would benefit businesses.

5. Invest in logistics and cold chain solutions

Products require efficient and reliable logistics to prevent wastage. Businesses should work with people familiar with EU standards to ensure products maintain their quality from source to destination.

 

 

 

 

 

PDVSA Gas Pipeline Blast Halts Fuel Supply

Bloomberg November 12, 2024

An explosion at a key natural gas production facility run by Venezuela’s SOC Petroleos de Venezuela has shutover 60 percent of fuel supply to the country. The explosion at a compression hub injured three people and caused oil processing to be halted in the area to control a resulting blaze. No details were available about how much of oil output will be affected.

The site of the explosion, the Muscar Operations Center in Eastern Venezuela, supplies 63 percent of the natural gas consumed in the country, including for the electricity grid, petrochemicals and iron-ore producing. Other PDVSA facilities add 11 percent to the supply, while privately run ventures, including by Spain’s Repsol and Italy’s Eni‘s Cardon IV, make for over 26 percent of the supply.

 

 

 

Venezuelan exploration of Dragon field

2024, 11/28

Venezuelan Vice President and Minister of Petroleum, Delcy Rodríguez reported that the vessel “Go Electra” had arrived in Venezuela to conduct exploration of underwater infrastructure in the Dragon field on behalf of the Venezuelan government.

These efforts will allow “accelerating the production conditions of this important project developed jointly with the Republic of T&T and the Shell company. Venezuela continues to take firm steps towards making the most of all the potential of its gas belt. She uploaded a video of the ship in Venezuelan waters.”

She explained that the parties to the December 2023 Dragon gas agreement between Venezuela and T&T are combining “the sovereign use of Venezuela’s resources with foreign investment of a productive nature” to advance this project.

Rodríguez considered the gas agreement signed between Venezuela and T&T in 2023 as an extraordinary and historic step. The agreement will serve to promote joint projects in the gas hydrocarbons sector and was signed in the presence of both countries’ authorities. Venezuelan President Nicolás Maduro said that the agreement is to work on projects like the Dragon field in Venezuelan waters, to start producing gas and to go together to sell it globally.

On November 21, President of Petróleos de Venezuela (PDVSA), Hector Obregon said the company plans to export natural gas by 2027. Venezuelan Deputy Minister of Gas, Luis González, explained that exploration and certification work is currently in progress on the reserves of gaseous hydrocarbons not associated with oil.

The Vice president’s update on the Dragon gas project follows the announcement by outgoing US Secretary of State, Anthony Blinken that the US Government recognises Edmundo González as the democratically elected President of Venezuela and not Maduro.

TT Energy Minister Stuart Young told the Chaguanas Chamber of Industry and Commerce (CCIC) that T&T has been engaging Democratic and Republican parties in the United States to secure the Dragon gas deal with Venezuela.

“We remain very connected with the government of the United States to ensure we secure the future of these projects. Our partner, 70 per cent, is Shell, the largest LNG trader.”

 

 

 

 

NGC positive on Dragon gas

2024, 11/26

NGC chairman Joseph Ishmael Khan told the Arthur Lok Jack Global School of Business Leadership Summit 2024 with the theme Bridging Tradition with Innovation, state-owned National Gas Companyof T&T (NGC) will proceed with the Dragon gas deal, while monitoring geopolitical conditions.

His team will continue a positive outlook concerning the deal despite Donald Trump’s victory in the U S presidential election, which prompted speculation concerning the deal.

Observers, including former energy minister, Kevin Ramnarine, expressed concern that policies of the Trump administration could impact the domestic energy sector. Ramnarine said T&T may no longer benefit from the Biden Administration’s pause on liquefied natural gas export approvals.

Asked about the potential impact on operations, Dr Khan said, “We are continuing to look at the situation. We do have the OFAC licence. Work is being done as we speak and we continue to be positive.”

On January 24, 2023, the US Department of the Treasury’s Office of Foreign Assets Control’s (OFAC) issued a specific licence to T&T to develop the Dragon gas field located in Venezuelan territorial waters, near to Trinidad’s north-west tip.

That gas field is being developed by NGC and European multinational energy giant, Shell. On May 29, 2024. T&T received another specific licence from OFAC to continue the exploration, production and export of gas with the government of Venezuela in the Cocuina-Manakin natural gas field.

Mariano Browne, CEO of UWI Arthur Lok Jack Global School of Business, said the event was crucial to expanding the perspective of local businesses and introducing and understanding that local entities can be world class.

“We’re putting this on to let people understand that there are businesses in Trinidad and Tobago that are thinking about other things. They are moving; they are taking on a wider idea and not just thinking about growing in the context of Trinidad and Tobago but growing outside. It is important that people understand and look at some of those examples in terms of what is taking place and what drives those businesses.”

Browne stressed that the public also needed to understand that successful local business was key to a good economy in Trinidad and Tobago.

“In the first instance, many people in Trinidad think that businesses take advantage of them, not understanding that business is vital to the survival of Trinidad and Tobago.

The second one is that people think profit is a bad word but businesses can’t survive without profit.

The third thing is that businesses only survive with dedicated people.. businesses cannot survive without people. In fact it is a symbiotic relationship.”

 

 

 

 

US   lawmakers   lobbied   to   support Dragon deal

2024, 11/25

At Chaguanas Chamber of Industry and Commerce annual Christmas dinner and awards, Energy Minister Stuart Young met CCIC president Baldath Maharaj and VP Dr Vaalmikki Arjoon and revealed that the Government is engaging US Democrats and Republicans to secure the Dragon gas deal with Venezuela.

“We remain very connected with the government of the United States to ensure we secure the future of these projects. Our partner in that project, 70 percent, is Shell, the largest LNG trader in the world. Only two weekends ago I was in London, spending Friday with Shell and Saturday with BP, securing our future to make sure they are on the same pages.”

T & T has been short of natural gas to power petrochemical and LNG facilities; therefore, the Dragon gas deal is a very crucial part of the strategy to increase natural gas output. In 2018, T&T and Venezuela signed a memorandum of understanding for joint development of the Dragon gas field. Suspension of the project followed sanctions imposed by the first Trump administration which specifically targeted the oil and gas sector to pressure the regime of President Nicolás Maduro.

T&T secured a 30-year licence for the Dragon field with Venezuela and a two-year licence from the US Office of Foreign Assets Control licence that he assured would be honoured until it expires in October 2025. An authorisation from the US Treasury Department OFAC allows individuals or entities to engage in transactions that would normally be prohibited by US sanctions.

The Dragon gas agreement, finalised in December 2023, is a significant milestone in energy collaboration with Venezuela. Two vessels funded by Shell and the T&T Government are surveying the Dragon field.

Replying to critics of development of the Dragon field, Young said. “ I heard people are going to write to President Trump’s Government to investigate the Dragon deal …As a citizen of T&T, I have absolutely no fear of what has been signed with Dragon being investigated because we did that with Shell, above board with the highest standards that can stand up to any scrutiny anywhere in the world.”

Government secured the rights to develop the Manatee gas field, one of the largest gas projects in T&T for decades. Part of the Manatee platform is being built in T&T.

“We are in the process of securing Loran as well.”

Energy companies are expected to spend US$10 billion by 2027 to develop T&T’s hydrocarbon sector.   Government was listening to pleas of the business community in Chaguanas on traffic, crime and forex.

High degree of political risk
Kevin Ramnarine, energy minister during the People’s Partnership regime, said the T&T Government would have to engage the incoming Republican administration in Washington.

“The Republicans now control the White House, House of Representatives and the Senate. I have seen no evidence that the PNM Government established bridges to Republican Senators or Congressmen . If they did, that’s nice.

Moreover, incoming Secretary of State, Marco Rubio,is one of the biggest critics of the Maduro administration. The same can be said of Elon Musk, who will be part of the Trump administration. It will be interesting to see how the Republicans deal with Venezuela and how that will impact OFAC licences related to Dragon and Coucina-Manakin. The outgoing Biden administration recognised Edmundo Gonzales Urrutia as the President-elect of Venezuela. I expect that the Trump 2.0 administration will continue this recognition. One can reasonably assume that there remains a high degree of political risk attached to the Dragon and Coucina-Manakin projects, which will weigh heavily in Shell and BP’s decision matrix.”

Ironically, having nationalised Chaguaramas Naval Base and Texaco energy assets and signed deals with PRC, the government expects special favours from US politicians, for prosperity and security enjoyed under British rule. As in the Commonwealth Conference, tyrannical African ruffians and Caricom villains harassed UN bureaucrats, hijacked COP29, ambushed Europeans and pestered Prime Ministers to extort reparations instead of organising repatriation to ancestral domiciles, abounding in energy from solar, wind and biofuel.

 

 

 

 

 

Hawk Rubio, dilemma for Dragon deal

2024, 11/21

Donald Trump’s selection of Marco Rubio as US Secretary of State may jeopardise the Dragon gas deal and other agreements with Venezuela. In 2019 hardliner Rubio admonished TT about its relations with Venezuela and Cuba. Director of the Latin America Energy Program at the Center for Energy Studies at Rice University’s Baker Institute for Public Policy in the USA, Dr Francisco Monaldi, warned that Rubio is a war hawk who advocates toppling the socialist regime of Venezuelan President Nicolás Maduro

“Without a doubt, Marco Rubio represents a more hawkish policy towards Venezuela. He is a Cuban American who has been very antagonistic towards the Venezuelan regime and suggested that maximum sanctions should be imposed. It is still unclear if he or Trump will define the policy. Others in the administration are like Tulsi Gabbard, proposed to be the director of National Intelligence, who has the opposite position about levelling sanctions against Venezuela.”

Energy economist Monaldi argues that sanctions against Venezuela could be “hardened.”

“However, the preponderance of the evidence is that being the Secretary of State who is so concerned about Venezuela and Cuba, that could imply a tougher sanctions regime against Venezuela. Compared to a week ago, when we knew that Trump was the President-elect, we can say that, more likely than not, sanctions could be hardened. It is the case that the gas projects to T&T are in a separate category from the oil projects but having said that, it is hard to predict.”

He qualified his views by saying that it is Trump who will make the final decision and Trump’s mandate is to end wars and conflicts globally.

Trump nominated Florida Senator Marco Rubio as the next US Secretary of State and the first Hispanic to hold this position. Rubio, 53, born in Miami of Cuban heritage, was and is a vocal critic of Cuba and Venezuela and has repeatedly called for a harsh stance against the two socialist.states.

Rubio mentioned T&T several times.  Earlier this year, he congratulated T&T on its 62nd Independence Day but in July 2019, he was critical of its relationship with Venezuela and Cuba.

“The US has an excellent and growing relationship with #TrinidadandTobago. @TTMEEI helping #Cuba circumvent sanctions related to #Venezuela through shipment of LPG via a 3rd party would be an unnecessary irritant in our bilateral relationship.”

Then Energy Minister Franklin Khan said that T&T cherishes its relationship with the United States and it will not help any country that the United States sanctioned.

Energy consultant and former energy minister Kevin Ramnarine noted that the TT regime has not built any meaningful relationship with the Republican Party, which is back in power. This could have a negative impact.

“I have never seen any evidence that the current administration built any material relationship with the Republican party. They focus almost exclusively on building relations with Democratic party functionaries.”

The last Trump-appointed ambassador, Joseph Mondello, had a major dispute with Energy Minister Stuart Young  over the Delcy Rodriguez visit and the Rio Treaty.

“Moreover, Marco Rubio and Elon Musk, two of the most senior members of the incoming Trump 2.0 administration, expressed strong views on Venezuela and its leadership. Rubio commented in 2019 about what he saw as Trinidad’s complicity with Venezuela and sanctions evasion.

They will have their opinion of T&T and its relations with Venezuela and have their foreign policy position on Venezuela. I can’t say what they will do or not do. There are many moving parts that the US will consider such as illegal immigration of Venezuelans into the US and Venezuela’s claim on the Essequibo region of Guyana.”

Only time will tell if the Office of Foreign Affairs Control’s (OFAC) licences will be extended. These licences allowed the energy projects to be possible.

“I can’t say what they will do when the two OFAC licences related to Dragon and Coucina-Manakin expire. That introduces another layer of uncertainty into the equation and ramps up political risk. Shell and BP will not commit US hundreds of millions of shareholder money to the projects unless the OFAC licence ‘sword of Damocles’ is removed. In politics things change all the time, one day you are out and the next day you are in.”

Dr Anthony Gonzales, retired director of the UWI Institute of International Relations, advised that a maximum pressure approach can affect T&T energy agreements if pushed to the extreme. That would place even US energy interests in a quandary.

“Chrevron for instance will have to be sanctioned and generally US (and European) companies will lose access to Venezuelan oil. I am not sure if Trump is prepared to go that far. It is possible he may believe he can overthrow the regime in Venezuela, which he tried without success in his first term. I think that it is even more difficult today to change this regime given that there are more left-wing governments in Latin America which are against external intervention as well as the unwavering support of the military in Venezuela.”

Venezuelan opinions
While the Venezuelan Embassy in T&T declined to comment, last week Venezuela’s daily newspaper El Ultimas Noticias quoted Diosdado Cabello, the First Vice President of Venezuela’s ruling Socialist Party, saying that hardliner Rubio will be one of the first officials who will clash with Trump and be fired.

Venezuelan economist, Luis Vicente Leon, analysed Trump’s victory and its impact on Venezuela’s energy industry in several scenarios. He does not believe Trump’s Government, even with war hawks like Rubio, will tighten sanctions but will instead focus on immigration and deport illegal Venezuelan migrants to Venezuela.

 

 

 

 

Shearwater secures 3D seismic survey with Petronas in Suriname

November 5, 2024, by Zerina Maksumic

Norwegian marine geoscience and technology company Shearwater Geoservices has secured a 3D seismic survey in Suriname with Malaysia’s state-owned energy giant Petronas, covering an expansive 6,000-square-kilometer area.

The project builds on Shearwater’s existing work with Petronas in the region, following previous acquisition activities in Block 52. Shearwater’s Amazon Warrior vessel has been allocated for the three-month campaign, set to commence in Q4 2024. According to Shearwater Geoservices, the survey is focused on delivering high-quality seismic data to aid in unlocking the resource potential within the prolific Suriname-Guyana basin. Irene Waage Basili, CEO of Shearwater said,

“High-quality seismic data is a key enabler for unlocking the vast resource potential of the prolific Suriname-Guyana basin and accelerating exploration activities. Shearwater’s state-of-the-art technology and capabilities enable safe and efficient acquisition of exploration seismic data with the highest quality for our clients, supporting their ambitions in this exiting area.”

Covering an area of 4,749 square kilometers, Block 52 is located north of the coast of Paramaribo, Suriname’s capital city, within the prospective Suriname-Guyana basin.

With a 50% participating interest, Petronas Suriname E&P is the operator of the block with ExxonMobil as the partner. In July 2023, Petronas awarded a one-well contract to Noble Corporation’s Noble Discoverer semi-submersible rig to drill an exploration well in Block 52.

The drilling activities were slated to start in August 2023 and the deal also came with a one-well extension option. However, the work scope was transferred to the 2015-built Noble Voyager rig in January 2024.

In April 2024 , Petronas exercised the option to extend the rig’s assignment and drill one additional well in Block 52 at a day rate of $470,000.

In October, Shearwater GeoServices added more work in Africa to its list, following the award of a deepwater ocean bottom node (OBN) project.

 

 

 

 

COP29 delivers hat trick of $1.3 trillion but weak mitigation and finance action seen as ‘betrayal’

November 24, 2024, by Melisa Čavčić

With the end of a fossil fuel era perceived as an ‘economic inevitability,’ a new energy world order emerges to future-proof and diversify the energy mix in preparation for a net zero future.

Against the backdrop of the winds of change in the global energy landscape, rising geopolitical tensions, high costs and economic woes, the 29th Conference of the Parties managed to reach a consensus on tripling climate finance, setting a new worldwide target to direct $1.3 trillion to developing countries by 2030.

Key takeaways:

• • • Overtime bears fruit as COP29 participants make progress on NCQG
    • Global South and North strike a deal on climate finance
    • New deal triples climate finance with $1.3 trillion on the table by 2030
    • Climate activists wanted more climate change mitigation efforts
    • Finance commitments seen as insufficient to combat climate change
    • Global North accused of watering down COP’s outcome and NCQGs

COP29 and climate action: Highlights from ‘finance COP’

• COP29 was expected to bring a pivotal shift in the final text to build upon accomplishments at other COPs and turn the tide once and for all in favor of renewables by unlocking trillions of dollars to pay the net zero bill and stop coal, oil and gas growth in its tracks.
• Azerbaijan was selected as the host of this year’s COP edition, dubbed the ‘climate finance COP’ and tasked with the high-stakes climate finance negotiations in Baku, which began on November 11 and were due to end on November 22.
• However, participants at the UN Climate Conference, attended by global leaders from almost 200 countries, were unable to strike a deal on climate finance to end the COP on time.
• As a result, they went into overtime to settle differences and agree on a common goal, ironing out the details of a new financial target to set the stage for the achievement of Paris Agreement goals.
• Given the rising urgency to tackle climate change following yet another year of heatwaves, floods and hurricanes, the UN climate negotiations were perceived as a beacon of hope to build a better future.
• Controversy still surrounded the event, including Global Witness’ undercover analysis, which found that 1,773 fossil fuel lobbyists were present at COP29, mostly as part of individual countries and trade associations’ delegations.

António Guterres, UN Secretary-General, explained: “COP29 comes at the close of a brutal year – a year seared by record temperatures, and scarred by climate disaster, all as emissions continue to rise. Finance has been priority number one.

Developing countries swamped by debt, pummelled by disasters, and left behind in the renewables revolution, are in desperate need of funds.

“An agreement at COP29 was absolutely essential to keep the 1.5 degree limit alive. And countries have delivered. I had hoped for a more ambitious outcome – on both finance and mitigation – to meet the great challenge we face. But this agreement provides a base on which to build. It must be honoured in full and on time. Commitments must quickly become cash. All countries must come together to ensure the top-end

COP29’s trillion-dollar net zero battle: Needs, wants, and reality of global energy scene run by oil & gas”

COP29 has managed to ensure more climate finance for developing countries, after hours of intense negotiations. COP29, aiming for at least $300 billion in public funding by 2035, also established a target of $1.3 billion by 2035 for total investments in developing countries’ climate efforts from both public and private sources.

According to the COP29 Presidency, the new climate finance target and follow-up to COP28’s historic agreement on transitioning away from fossil fuels have been central to the negotiations to secure funds to assist vulnerable countries, primarily in the Global South, in tackling climate change challenges while accelerating the worldwide switch to green energy.

The firm’s previous draft related to the new collective quantified goal (NCQG) contained a call for all participants to work together to scale up financing for developing countries’ climate action from all public and private sources to at least $1.3 trillion per year by 2035, including a decision to expand the goal of jointly mobilizing $100 billion per year to $250 billion by 2035 with developed countries taking the lead in climate action.

The United Nations confirmed that a central focus on climate finance saw COP29’s participants featuring nearly 200 countries in Baku reach a breakthrough agreement that would triple public finance to developing countries, from the previous goal of $100 billion annually to $300 billion a year by 2035 while securing joint efforts of all actors to work together to scale up finance to developing countries, from public

“Carbon markets are a go but trillions at stake: Will ‘climate finance COP’ deliver the goods at the eleventh hour?”

While disclosing the new agreement on climate finance, Lars Aagaard, Denmark’s Minister of Climate, Energy, and Utilities, underlined: “I am pleased that last night we agreed on a new agreement on climate finance that is both ambitious and realistic, which we have been working for. More money is now coming to help developing countries with their climate action and adaptation. I recognise that the vulnerable countries had hoped for more. Just as there has also been a pain threshold for several countries that have to pay.

“From the Danish side, we will work to get more funds into play – including private funds, so that we create better certainty about the high funding target. We have also achieved the breakthrough that more prosperous developing countries now also contribute to the climate finance target, and thereby we are taking a step towards changing the division between rich and developing countries that has run out of time.”

Aagard, who described the reduction agenda result as “disappointing,” elaborated on his views by adding that the agenda failed to reach an agreement to confirm in a text how to follow up on the Dubai decision last year regarding the global stocktake, including tripling renewable energy, doubling energy efficiency, and phasing out fossil fuels.

OGDC’s inaugural survey: “progress made with emission cuts, but more work needed on reporting”

Denmark’s Minister for Climate, Energy and Utilities, pointed out: “It is very unsatisfactory that we could not reach agreement on an agreed text on reductions. Much more climate action is needed, and this is in stark contrast to the sluggishness that has characterized the negotiations, because the oil countries have consistently resisted progress.   There was a very thin result on the table, and it was not good enough for several parties.

We will do our utmost to improve the outcome in the further negotiations next year. To create a basis for the real progress needed at COP30 in Brazil, where Denmark together with the EU Commission will lead the EU.”

Closing ‘reality gap’ between net zero ambition and energy transition action requires US and EU to pull all decarbonization levers

Aagard outlined that the last set of rules under the Paris Agreement, which deals with trading in climate credits, was also closed at COP29, thus, it was possible to establish a framework that in practice ensures “robust and transparent” credits that deliver real reductions, thanks to an agreement on Article 6. The final building blocks are portrayed to set out how carbon markets will operate under the Paris Agreement, making country-to-country trading and a carbon crediting mechanism fully operational.

Regarding country-to-country trading, the way countries authorize the trade of carbon credits is now clarified alongside the operation of registries tracking this. Reassurance has been provided that environmental integrity will be ensured upfront through technical reviews in a transparent process.

The work on carbon markets does not stop in Baku, as the supervisory body setting up the new carbon crediting mechanism has received a long 2025 to-do list and will continue to be held accountable.

 

 

 

 

COP29 breakthroughs: Billions to become trillions

Breakthroughs on the Baku Finance Goal, the full operationalization of the Loss and Damage Fund’s total pledged financial support of over $730 million and UN carbon markets are defying expectations. Following a year of intensive multilateral diplomacy led by the Azerbaijani COP29 Presidency, these mark the end of the first decade after the Paris Agreement by taking “a huge step towards reaching climate goals over the next ten years,” underlined the finance COP’s Presidency.

Mukhtar Babayev, COP29 President, highlighted: “When the world came to Baku, people doubted that Azerbaijan could deliver. They doubted that everyone could agree. They were wrong on both counts. With this breakthrough, the Baku Finance Goal will turn billions into trillions over the next decade. We have secured a trebling of the core climate finance target for developing countries each year. The Baku Finance Goal represents the best possible deal we could reach, and we have pushed the donor countries as far as possible.

“We have forever changed the global financial architecture and taken a significant step towards delivering the means to deliver a pathway to 1.5C. The years ahead will not be easy. The science shows that the challenges will only grow. Our ability to work together will be tested. The Baku Breakthrough will help us weather the coming storms.”

The COP29 Presidency of Azerbaijan underscores the success related to these top priorities for the UN Climate Summit represents “a significant uplift from the previous climate finance goal of $100 billion and will unlock a new wave of global investment.”

With COP29 ending the decade-long wait for the conclusion of Article 6 negotiations on high-integrity carbon markets under the UN, financial flows from compliant carbon markets could reach $1 trillion per year by 2050 and have the potential to reduce the cost of implementing national climate plans by $250 billion per year.

“When combined, the Baku Finance Goal and Article 6 will forever change the global climate finance architecture by redirecting investment to the developing world. The Baku Finance Goal is the centrepiece of a package of agreements that deliver progress across all climate pillars. This includes getting the Fund for Loss and Damage up and running and ready to distribute money in 2025,” emphasized the COP29 Presidency while adding that these deliver some of the most complex and controversial tasks in multilateral climate action and mark “a critical step in putting in place the means to deliver a pathway to 1.5C.”

 

 

 

COP28: climate win or backdoor to gas and LNG?

Since the International Energy Agency (IEA) expects global clean energy investment to surpass $2 trillion for the first time in 2024, the new finance goal at COP29 builds on significant strides forward on global climate action at COP27, which agreed to a historic Loss and Damage Fund, and COP28, which delivered a global agreement to transition away from all fossil fuels in energy systems swiftly and fairly, triple renewable energy and boost climate resilience.

Simon Stiell, Executive Secretary of UN Climate Change, remarked: “This new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country. But like any insurance policy – it only works – if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives. It will keep the clean energy boom growing, helping all countries to share in its huge benefits: more jobs, stronger growth, cheaper and cleaner energy for all.”

Fossil fuels to top $1 trillion, clean power $2T in 2024

UN Climate Change acknowledged that COP29 reached an agreement on carbon markets, which previous COPs did not achieve. As a result, the trio of agreements is anticipated to help countries deliver their climate plans faster at a less cost-intensive level and speed up progress in halving global emissions by 2030.

Guterres further noted: “First, countries must deliver new economy-wide national climate action plans – or NDCs – aligned with 1.5 degrees, well ahead of COP30 – as promised. The G20 countries, the biggest emitters, must lead. These new plans must cover all emissions and the whole economy, accelerate fossil fuel phase out, and contribute to the energy transition goals agreed at COP28 – seizing the benefits of cheap, clean renewables.

“The end of the fossil fuel age is an economic inevitability. New national plans must accelerate the shift, and help to ensure it comes with justice. Second, we need swift action to deliver on commitments made in the Pact for the Future. Particularly on effective action on debt; increasing concessional finance and improving access; and substantially increasing the lending capacity of the Multilateral Development Banks, with adequate recapitalization.”

Global North accused of betraying Global South

Not everyone is happy with the deal in Baku, as some climate groups and organizations see it as a “betrayal,” accusing developed countries of failing people and the planet. One of these is the Climate Action Network (CAN), which “wholeheartedly rejects the outcome of COP29 in Baku,” claiming that the linchpin of the climate talks was public finance, but developed countries did not deliver despite their historic responsibilities.

Tasneem Essop, Executive Director of Climate Action Network, said: “This has been the most horrendous climate negotiations in years due to the bad faith of developed countries. This was meant to be the finance COP, but the Global North turned up with a plan to betray the Global South. In the end, we saw the same story play out, with developing countries being left little choice but to accept a bad deal.

As civil society we called on developing countries to reject a bad deal, a deal that would betray the people in the Global South. We are not defeated; we will fight back home, we will be out in numbers and louder than ever. The fight is far from over.”

Climate Action Network finds the figure for the climate finance goal “wholly inadequate,” and believes that the quality of finance is missing with no equity or justice reflected in the text, as in its eyes the direction of finance from developed to developing countries did not come through.

With this at the forefront, the NGO underlines that the goal “completely missed the mark” in responding to the needs of developing countries and places the blame at the developed countries’ door, accusing them of using the U.S. election result, and the imminent return of the former U.S. President, Donald Trump, to the White House next year, as an excuse to push through “this weak outcome.”

“The US has been trying to dismantle the convention and the Paris Agreement for years, Trump or no Trump. Two years of progress on just transition, where parties were starting to shape a common vision, were trashed due to bad process, showing dismay for the millions of people concerned about their lives, jobs, livelihoods. In COP29, justice was not served on any front.”

Mohamed Adow, Director of Energy and Climate Power Shift Africa think tank and Climate Justice Advocate, highlighted: “COP29 has been a disaster for the developing world. It’s a betrayal of both people and planet, by wealthy countries who claim to take climate change seriously.

Rich countries have promised to ‘mobilise’ some funds in the future, rather than provide them now. The cheque is in the mail.

But lives and livelihoods in vulnerable countries are being lost now. At this ‘Finance COP’ not a single dollar of real climate finance has been provided right now.

Not only did the global north impose a low-ball finance figure, it comes into force 11 years from now. This deal is too little, too late. The rich world staged a great escape in Baku.

With no real money on the table, and vague and unaccountable promises of funds to be mobilised, they are trying to shirk their climate finance obligations. Leaving the world without the resources needed to avert climate catastrophe.”

Adow emphasizes that poor countries needed “clear, grant based, climate finance that would boost their ability to deal with the impacts of the climate crisis and accelerate their decarbonisation efforts.” This was “sorely lacking.”

Climate credits equal ‘pollution permits’ that will enable “rich polluters to cheat their way out of actual emission reductions through the use of dubious pollution permit markets. The carbon market rules will allow the richest to continue polluting, placing at risk the 1.5C target, while shifting the burden to developing countries. COP host – a national embarrassment This has been a shamefully led summit by Azerbaijan which deserves to be a global embarrassment for the wealthy countries and the COP president that facilitated them to dodge their obligations.”

 

COP29 and climate action: Highlights from ‘finance COP’

The COP29 Presidency confirmed its progress in advancing several areas it designated as a priority for propelling forward ambitious climate action, placing significant emphasis on the importance of transparency and biennial transparency reports (BTRs) by launching the Baku Transparency Platform and urging early submissions, which 11 participants and the European Union decided to do before the December 31 deadline.

One of the key highlights of COP29 is encapsulated in the progress toward the goal of operationalizing Article 6, which would direct resources to the developing world and reduce the cost of implementing national climate plans. To make this happen, consensus on Article 6.4 standards for trusted and transparent carbon markets was reached and negotiations on Article 6.8 were concluded to facilitate international cooperation through non-market approaches to implementing national climate plans and promoting sustainable development.

The need to raise ambition for mitigation and adaptation was raised and Multilateral Development Banks announced projections for their contributions to climate action as $170 billion per year by 2030, with $120 billion for low- and middle-income countries. Several countries, including the US, China, EU, UAE, UK, Brazil, Canada and Nigeria, united and announced policies focused on reducing methane from organic waste.

While investor groups with over $10 trillion in assets united to deploy private capital into climate markets, pledges to climate finance projects and initiatives totaled $7.3 billion on Finance, Investment and Trade Day, with the largest support from the Asian Development Bank ($3.5 billion), the Azerbaijan banking sector ($1.2 billion), Sweden ($760 million) and Canada ($1.5 billion from the government and $290 million from philanthropies) on investments in combating impacts of melting glaciers, green taxonomies and climate action.

Additionally, development finance institutions pledged to support the 10 GW Lighthouse Initiative for renewable hydrogen projects in emerging markets and developing countries while more than 50 shipping industry actors agreed to accelerate zero and near-zero emission fuels by 2030, translating to at least 5 million tonnes of green hydrogen.

COP29 Initiative launched to accelerate uptake of zero-emission fuels by 2030

The COP29 aimed to emphasize the role of cooperation and peace as indispensable to global climate action, with the COP Truce Appeal garnering support from 132 countries and over 1,200 organizations, and the Baku Call on Climate Action for Peace, Relief and Recovery being adopted, an initiative which will launch the Baku Climate and Peace Action Hub to address the urgent nexus of climate change, conflict, and humanitarian needs.

With Germany’s pledge of $65.1 million and Ireland’s pledge of $13 million, contributions to the Adaptation Fund reached $133 million as Climate Investment Funds rose, collecting additional contributions from the U.S. ($325 million), Germany ($220 million) and the UK ($211 million).

While 25 countries and the European Union indicated their intentions to put forward national climate plans that reflect no new unabated coal in their energy systems, Mexico announced its commitment to net-zero emissions by 2050, meaning all G20 members committed to a net-zero target.

The COP29 Presidency’s Action Agenda urged a wider group of stakeholders to contribute to global climate action by confronting some of the most pressing problems and reinforcing coherence and COP-to-COP continuity, launching its pledges and declarations on energy storage, grids, zones, corridors and hydrogen, which were endorsed by 150 parties.

While over 75 governments and 1,100 members of the digital tech community endorsed the declaration to use digital tools to reduce emissions and strengthen climate resilience, the COP29 Declaration on Water for Climate Action received endorsements from over 50 countries, aiming to take an integrated approach to combating climate change on water basins and water-related ecosystems and include these measures in national climate policies, including NDCs and NAPs.

While reflecting on the events and conclusions reached at COP29, the International Renewable Energy Agency (IRENA) also recognized that progress on the energy transition is geographically imbalanced, with investments largely concentrated in a few developed countries and emerging economies. Therefore, IRENA believes the new finance climate goal reached at COP29 in Baku will help countries keep energy transitions growing and shift to a low-carbon economy.

Francesco La Camera, IRENA Director-General (DG), concluded: “Reaching an agreement at COP29 was essential to keep the 1.5°C global warming limit alive. Although the new financial aspiration falls short of what is needed to meet the Paris Agreement goals, it acknowledges the urgent need for intensified collective efforts to address geographical disparities in climate finance, with developed economies playing a more significant role.”

 

 

 

 

Advanced countries urged to put a figure on climate cash as deadline looms

A draft deal on climate cash includes only an ‘X’ instead of a number. “We need a cheque, but all we have right now is a blank piece of paper,” an African thinktank director says.

Victoria Seabrook Climate reporter
21 November 2024

Environmental activists protest at COP29 to demand financial commitments from developed countries.

Countries reacted furiously to a stash of draft deals published at the COP29 climate summit in Azerbaijan.

With just 36 hours until the two-week negotiations are due to end, countries remained at loggerheads on key issues including money, fossil fuels and gender.

The number one item on the table is a new financial target to pay for climate measures in developing countries, known as “climate finance”.

The draft agreement still lists widely different options for all the most controversial issues, including which countries pay in, where the money comes from, and how many billions of dollars they’re aiming for. Instead of specifying a number for the target, it simply states:

“At least USD [X] trillion of dollars annually”.

Developing countries need about $1.3trn (£1trn) a year to help them switch from polluting fossil fuels to clean sources, and to make them more resilient to increasingly extreme weather but developed countries hinted that they see a more realistic goal as less than half that figure.

They refused to put a number on it until they have agreed where all the money could come from. The current target, which expires next year, is $100bn.

Developing countries, hammered by impacts of climate change they did not cause, think rich countries are obstructive and failed to do their maths in advance.

 

 

 

‘Structure of future COPs needs to change’

15 November 2024

Ex-UN Chief and former UN climate boss Christina Figueres are among those who wrote an open letter, declaring the event unfit for purpose — and in need of an urgent overhaul.

Argentina walks away from COP29

‘All we have right now is a blank piece of paper’

Mohamed Adow, director of thinktank Power Shift Africa, said: “The elephant in the room is the lack of specific numbers in the text. This is the ‘finance COP’. We came here to talk about money.

“The way you measure money is with numbers. We need a cheque, but all we have right now is a blank piece of paper.”

‘We need to address the scale of climate crisis’
Sleep-deprived diplomats from almost 200 countries were poring over the documents on Thursday morning, racing to make sense of them before further meetings in the capital, Baku.

A draft  agreement on cutting emissions barely references last year’s “historic” pledge to
transition away from fossil fuels, let alone progress on it.   This has outraged the EU, the US, small island nations and the UK, but will buoy a group of oil and gas producers, led by Saudi Arabia, that have tried to bury that pledge.

“This is a big step back, and it is not acceptable at this moment of crisis,” Australia’s climate minister Chris Bowen said.

Asked when rich countries would budge on the number,
Eamon Ryan, part of the EU’s team, said: “We all budge together.”
: “If we do not get ambition on [cutting emissions], everything else fails.”

Saudi Arabia accused them of “cherry-picking” issues. COP29 now looks likely to run into overtime.

UN Climate Change Conference Baku

A Stocktaking Plenary revealed the divide that persists in negotiations on the new finance goal but indicated some progress on cooperative approaches for implementing the Paris Agreement. Other draft texts are now in the hands of the Presidency.

Making Climate Finance Work for Farmers

Family farmers produce over 80% of the world’s food value and face disproportionate climate risks, yet receive only 0.3% of international climate finance. It is therefore urgent to restructure climate finance to empower family farmers’ organizations in the context of climate adaptation and resilience.

Caricom prefers to import food, costing $7 billion, while abandoning farmers, enduring crime, extortion, official neglect, discrimination and floods.

 

 

 

SIDS at COP29

2024, 11/12

Climate diplomacy is facing one of its sternest tests at the 29th meeting of the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (COP29), in Baku, Azerbaijan. Delegates from nearly 200 countries, including Trinidad & Tobago, have assembled for the annual summit on climate change at a time when its centrepiece, the landmark Paris Agreement, is severely at risk.

The implications for Small Island Developing States (SIDS) like ours could not be more dire.

COP aims to curb global warming below 1.5°C to avoid catastrophic harm to the planet, but the world remains on track to exceed 3°C by the end of this century. The climate alarms are getting louder and more frequent. The latest State of the Climate report—released in a year that is set to be the first above 1.5 degrees of warming—warns that ‘the future of humanity hangs in the balance’ and calls for more urgent phasing out of fossil fuels.

Every tenth of a degree of warming brings on much more extreme weather.

For SIDS in the Caribbean, the Pacific, the Indian Ocean and the South China Sea, that means an increased risk of catastrophic coastal and inland flooding from higher magnitude rainfall, extreme wave height, storm surges and sea level rise. The threat remains high even if global warming is limited to 1.5⁰C, as it is estimated that over a fifth of SIDS populations will still be exposed to flooding.

Funding to build climate resilience is therefore a critical requirement for T&T and other SIDS and is a key agenda item at COP29. It is estimated that our group of nations needs around $1 trillion a year and $2.4 trillion by 2030 to meet climate finance needs. How much money developed nations will provide and who should provide climate finance remains a contentious issue.

Even if new global commitments are made at COP29 to significantly reduce carbon emissions, ensuring they are backed up by action to mitigate potential loss and damage in SIDS remains a major challenge. COP29 is taking place just ahead of a February 2025 deadline for nations to provide updates on the Nationally Determined Contributions (NDCs) that are at the heart of the Paris Agreement’s goal of curbing the rise in global temperatures.

However, so far the target of containing heating to 1.5°C has not been met and may have become more difficult to achieve. The re-election of Donald Trump is likely to reduce the US’s carbon-cutting commitments to zero, as he had pledged during his campaign to exit the Paris Climate Agreement. This could have huge implications for any agreements reached at COP 29, as the US is the world’s second-largest emitter of greenhouse gases.

There is concern that a US withdrawal from the pact could influence other high-emitting nations to deprioritize their emissions reductions.

Unfortunately, the worst consequences will be felt by the nations that contribute the least to greenhouse gas emissions—SIDS. That is why these voices need to be heard over the next few days as critical decisions are tabled at the climate summit. Delayed or watered-down agreements, particularly on all-important issues of funding, will hurt the countries facing the biggest threats from climate change.

 

 

 

 

T&T, SIDS look for easier access to climate finance

2024, 11/12

As the largest climate change conference, COP29 (Conference of Parties), opened in Baku, Azerbaijan, the day was marred by delays due to the inability of parties to agree on some aspects of the agenda, a common feature of recent COPs. Kishan Kumarsingh, lead climate negotiator, revealed T&T negotiators hope for easier access to climate finance and a stronger global plan to mitigate the impacts of a warming world and outlined T&T’s hopes at the conference.

“In terms of a goal, we would want to see a goal that is defined by adequacy and predictability in light of the changing climate, the increasing emissions, and the accelerated rate of climate change, which would only increase the adverse impacts of climate change and, as a result, increase the cost associated with those impacts.”

Small island states are already debt-laden and cannot afford to have more debt added to their economies. The instruments of disbursement of finance should be grant funding and concessional loans as far as possible.

“We hope for an ambitious outcome and a dedicated and robust decision on climate finance at this COP.”

Beyond the financial aspect of the COP, which is set to dominate negotiations, Kumarsingh said TT will be pushing for “an ambitious” decision on a mitigation work programme.
“With the accelerated rate of climate change, we are already on the way to three and four degree rise in temperature by the end of this century, and for small island states, that could very well mean loss of land, loss of amenities, and certainly severe challenges with food production. So we will also want to see a robust decision on mitigation,” he stated.

Kumarsingh, who is also the head of the Multilateral Environmental Agreements Unit at the Ministry of Planning and Development, said TT will be keeping an eye on the just transition decisions coming out of this COP.

“The just transition is important for T&T because of the energy transition moving to more sustainable forms of energy. The workforce, basically, also has to adapt to that changing set of circumstances so that no one is left behind. Persons can be retooled, reskilled and so on.”

Kumarsingh’s statements came after the executive secretary of the United Nations Framework Convention on Climate Change (UNFCCC), Simon Stiell, urged nations to agree to a new climate finance goal at COP29.

In his remarks at the opening of the plenary, he said, “On this platform, we negotiate specific pieces of this ‘puzzle’ every year. But we cannot afford to continue destroying lives and livelihoods in all countries, so let’s achieve a result. I, like everyone else, am disappointed that no single COP conference can provide the full transformation that every country needs. Here in Baku, we must agree on a new global goal for climate finance. If at least two-thirds of the world’s countries cannot afford to rapidly reduce emissions, then every country pays a higher price.”

In a strong opening statement, COP29 President Mukhtar Babayev said the world needs to act on behalf of the most vulnerable.

“Whether you see them or not, people are suffering in the shadows. They are dying in the dark and they need more than compassion, prayers and paperwork. They are crying out for leadership and action. COP29 is the unmissable moment to chart a new path forward for everyone.”

 

 

 

 

 

US Petroleum lobby policy roadmap to ensure US leadership in global energy

 November 21st 2024

A five point policy roadmap with the purpose of ensuring United States leadership in energy, protecting consumers and reducing inflation, elaborated by the American Petroleum Institute, API, has been addressed to incoming president Donald Trump and the next Congress.

To maintain the US position as a global energy leader, API’s first priority is to safeguard consumer choice in the energy market, advocating the repeal of EPA’s Tailpipe Rules, which mandate a steep shift to electric vehicles (EVs) by 2032, arguing this limits choice and drives up costs.

Similarly API opposes California’s Advanced Clean Cars II rule, requiring 100% EV sales by 2035, which they believe overly restricts options and increases dependence on Chinese mineral supply chains

API calls for repealing Corporate Average Fuel Economy (CAFE) standards that align with California’s EV goals, fearing they will heighten costs and narrow consumer options.

API’s stance is that EV mandates are premature, considering current infrastructure and market limitations. Instead, API supports a technology-neutral approach that lets consumers choose vehicles best suited to their needs without restrictive regulatory mandates.

A second priority emphasizes the strategic role of US energy exports in global stability. API urges the Department of Energy (DOE) to lift the pause on liquefied natural gas (LNG) permitting, a policy they see as detrimental to US influence abroad.

Open access to global markets for US oil and natural gas exports, API argues, would support allies and counteract the energy leverage held by nations like Russia and China. Increased exports not only bolster geopolitical strength but also help balance trade and create domestic jobs. API underscores that US energy exports are an effective tool to strengthen alliances and reduce reliance on unstable foreign energy sources.

API’s third priority is to maximize US natural resources on federal lands and waters. They call for a predictable, five-year offshore leasing program to reflect global energy demands accurately and the repeal of restrictive onshore leasing rules that limit investment in energy development.

Additionally, API recommends working with Congress to repeal the EPA’s Methane Fee under the Inflation Reduction Act, which they believe adds unnecessary financial burdens.

By reforming leasing regulations and addressing high regulatory costs, API argues the US can enhance long-term energy security and economic growth through increased domestic energy production.

API’s fourth objective involves streamlining the permits process for energy projects. They call for comprehensive reform to make the process transparent, predictable, and efficient.

Specifically, API advocates for the repeal of recent Biden-era changes to the National Environmental Policy Act (NEPA), which they claim have introduced additional delays and uncertainties.

API believes that an optimized permitting system will benefit not only the energy industry but also other infrastructure-dependent sectors, fueling broader economic growth and creating jobs. Simplifying the permitting process, according to API, would help keep development timelines and costs manageable.

Finally tax policy, API supports retaining the 21% corporate tax rate to ensure US global competitiveness. Additionally, API seeks to maintain and extend critical tax provisions, such as immediate deductions for intangible drilling costs and 100% bonus depreciation, to support infrastructure investment. They also advocate for the preservation of international tax provisions that protect companies from double taxation on foreign earnings.

API’s goal is to create a stable, favorable tax environment that attracts both domestic and international investment in US energy, fostering innovation and bolstering economic growth.

 

 

 

 

 

API outlines Five-Point Roadmap for energy policy

November 13, 2024

The American Petroleum Institute (API) has released a new policy roadmap for the incoming Trump administration and next Congress to secure American energy leadership and help reduce inflation. Beginning with an open letter to President-elect Trump, the five-point policy roadmap details concrete steps Washington can take in 2025 and beyond to protect consumers, bolster geopolitical strength, leverage our national resources, reform our permitting system and advance sensible tax policy.

“Our country has a generational opportunity to fully leverage U.S. energy leadership to improve the lives of all Americans and bring stability to a volatile world,” API President and CEO Mike Sommers wrote in the letter to President-elect Trump. “It has never been more vital that America control its energy future.”

“Yet our continued success is far from guaranteed, and we have been heading down a path of extreme regulations threatening everything from our choice of home appliances to the cars we drive,” Sommers said. “As an industry committed to American prosperity, we stand ready to work with you and Congress to reverse course and advance a robust vision for securing America’s energy dominance.”

API’s five-point policy roadmap outlines the path forward, including:

1.Protect consumer choice

Repeal the Environmental Protection Agency’s (EPA) tailpipe rules.
Repeal the National Highway Traffic Safety Administration’s Corporate Average Fuel Economy (CAFE) standards.
Deny/Rescind EPA’s Waiver for California’s Advanced Clean Cars II (ACCII) rule.
Bolster America’s geopolitical strength

2.Lift the Department of Energy’s (DOE) LNG permitting pause.

Swiftly process all pending export applications now languishing at DOE.
Ensure the open access of American energy to global markets.
Leverage our natural resources

Issue a new Bureau of Ocean Energy Management (BOEM) five-year offshore leasing program.
Repeal restrictive onshore leasing rules, starting with the Bureau of Land Management (BLM) Conservation and Landscape Health Rule.
End EPA’s methane fee that misinterprets Congressional intent and does little beyond increasing the cost of production for American oil and natural gas.

3. Reform our permitting system

Reform the National Environmental Protection Act (NEPA).
Reform the Clean Water Act.
Advance judicial reform.
Repeal the Biden-era NEPA rules.
Advance sensible tax policy

4.Retain the 21% corporate tax rate to ensure global competitiveness.

Maintain and extend tax provisions for domestic infrastructure investment.

5.Preserve crucial international tax provisions.

To read the full policy roadmap, click here.

 

 

 

 

Major companies bet on biofuels with over 40 projects planned by 2030

November 20, 2024(WO)

Under increasing pressure to decarbonize and shift away from traditional fossil fuels, the world’s leading oil and gas companies are ramping up investments in the biofuels sector. Major players such as BP, Chevron, Shell, TotalEnergies, ExxonMobil and Eni are incorporating biofuels into their broader energy transition strategies, recognizing the growing global demand for sustainable fuel sources.

According to Rystad Energy’s research, these six oil majors have announced a total of 43 biofuel projects that are either already operational or are targeted to start up by 2030. While investments span various biofuel products, including biodiesel and ethanol, the focus is clearly on hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), which are expected to make up nearly 90% of the projected biofuel production.

Analyzing the implementation of these investments, which could add a combined 286,000 barrels per day (bpd) of production capacity, reveals that 31 projects are greenfield developments.

Six involve co-processing — integrating bio feedstock into existing crude-oil refineries to produce a blended feedstock — while another six are full conversions of refineries to facilities dedicated exclusively to biofuel production. Co-processing stands out as a cost-effective option that allows companies to leverage existing infrastructure and reduce upfront investment, making it an appealing choice for oil majors entering the biofuels market.

“Supermajors are accelerating investments in biofuels like HVO and SAF, recognizing their potential as low-carbon ‘drop-in’ fuels that can be swiftly integrated into existing aviation, heavy transport and marine fuel systems. As the energy transition progresses, these biofuels offer a practical, near-term solution to reduce emissions without requiring significant changes to current infrastructure. With increasing regulatory pressure to adopt SAF, such as Europe’s ‘ReFuel EU’ initiative and expanding mandates in Asia Pacific, biofuels have shifted from being a potential option to becoming an essential component of decarbonization strategies,” says Lars Klesse, Analyst, BioEnergy Research at Rystad Energy.

The 43 biofuel projects announced by oil majors signal promising developments in the industry. Chevron’s Geismar project, the largest of the 31 greenfield initiatives, is set to produce 22,000 bpd of biofuel, marking a significant addition to global capacity. Additionally, Chevron’s El Segundo refinery, the largest in co-processing capacity, converted a diesel hydrotreating unit last year into a 10,000 bpd renewable facility.

BP’s Kwinana project, the largest announced refinery conversion, is also poised to significantly increase the production of sustainable fuels. By 2030, this project is expected to produce 50,000 bpd of HVO and SAF, a gamechanger that could be pivotal for meeting rising demand for biofuels in the near future.

Among the leading companies, BP stands out with the largest announced production capacity in its pipeline, reaching a combined 130,000 bpd of ethanol and HVO/SAF capacity and positioning BP as a global frontrunner in the bioenergy space. Other oil majors, including Chevron, Eni, Shell, TotalEnergies and ExxonMobil, are also making significant strides, particularly in the advanced biofuels sector, although many of these projects are still in development.

BP and Chevron hold significant positions in operational capacity. BP’s acquisition of Bunge Bioenergia, a leading Brazilian biofuel producer, has substantially increased its production capacity to approximately 66,000 bpd. The acquisition has enabled BP to exceed its 2025 milestone of 50,000 bpd and positions the company to achieve its biofuel target of 100,000 bpd by 2030.

Additionally, Chevron’s purchase of Renewable Energy Group and Eni’s operational advanced biofuel capacity of 22,000 bpd, driven by both co-processing and conversion projects, further solidify their positions in the expanding biofuels market.

TotalEnergies has also outlined aggressive biofuel targets, aiming to use waste biomass for 75% of its biofuel production by the end of 2024. To achieve this, the French integrated energy and petroleum company plans to prioritize waste and residues from the food industry, such as used oils and animal fats, to avoid land-use conflicts.

Meanwhile, ExxonMobil is gearing up to start biofuel production at its Strathcona Refinery next year, with an initial capacity of 20,000 bpd. The company also plans to launch 12 additional biofuel projects to help it reach its goal of 200,000 bpd by 2030.

As oil majors shift to lower-carbon energy, there is a clear trend toward advanced biofuels, particularly HVO and SAF, with companies scaling up production to meet rising demand from the aviation and heavy transport sectors. Despite some project delays, biofuels are seeing a significant increase in investment and innovation as 2030 decarbonization targets loom and the market for fossil-fuel alternatives grows.

 

 

COP29 talks struggle in a year of climate stress and global bickering.

At the UN COP29 climate summit in Baku:

A trillion dollar question? Governments around the globe are ploughing billions of dollars into fossil fuel subsidies to shelter citizens from higher energy costs, at a fiscal burden and hampers the goal of reducing overall usage

 

 

 

 

World Bank food security crisis response

November 19, 2024

The major cause of the world food crisis, the elephant in the room is population growth, doubling to 2.8 billion in Africa which can easily electrify the continent with Sahara solar power and irrigate the desert, instead of pursuing tribal conflict, resulting in famine and aid addiction.

“Global South” is a misnomer. India, entirely in the Northern Hemisphere, is not a developing country.

The world is currently facing an escalating food crisis, characterised by high prices and increasing hunger.

The impacts are being felt disproportionately by vulnerable communities and threatening global food security. A quarter of a billion people are estimated to face crisis levels of acute food insecurity—representing more than a 33% year over year increase.

“The current levels are 2.5 times higher than in 2016, when these global figures started being recorded. Projections suggest that without additional action, 950 million people may be severely food insecure through 2030.” it stated.

Multiple short and long-term drivers continue to affect all aspects of food and nutrition security.

“The El Nino climate pattern is now one of the top concerns. Global food prices remain elevated and at historic highs, with persistent domestic food price inflation. High food prices are reducing families’ ability to purchase healthy foods.

In addition to those challenges, a number of factors continue to affect food stability. These include the non-renewed Black Sea Grain Initiative, restrictive food trade policies, as well as precarious macroeconomic situations, such as reduced growth and high debt distress levels face by many countries,” it explained.

These short and long-term drivers are contributing to the derailment of the SDG2 goal of zero hunger by 2030, the World Bank noted.

“Reductions in child stunting and wasting have slowed while anaemia among women and obesity among adults have increased. Additionally, agricultural productivity growth is well below target to sustainably meet the needs of a growing population, particularly in Sub-Sahara Africa.”

Scaling up response

The World Bank included food and nutrition security among the eight global challenges to address at scale. In the 15 months leading to June 2023, the Bank mobilised US$45 billion—surpassing its initial projected commitment of US$30 billion announced in May 2022. The response includes US$22 billion in new lending—exceeding the target of new commitments set at US$12 billion, and US$23 billion from existing portfolio.

Over half of the new lending, amounting to US$12 billion is allocated for Africa, of which US$10 billion is for Sub-Saharan Africa. The Bank’s support is expected to benefit 335 million people, of whom 53% are women. This portfolio spans across 90 countries, with 22 out of the 24 food insecurity hotspot countries being given priority.

The World Bank said its multi sectoral response “combines both immediate actions to address emergencies and long-term investments to enhance resilience, with US$20 billion committed towards short-term response and US$25 billion for resilience. To address urgent needs, social protection interventions have been the primary means of support for people in crisis. In addition, the World Bank is leveraging the private sector through IFC, which committed US$5.1 billion for food and nutrition security.”

Transforming food systems

To ensure long-term food security for all, countries must transform food systems—“how we produce, distribute and consume food. Our food systems currently generate US$12 trillion per year in hidden costs,” the World Bank noted. “Although agriculture and food produce 30% of global greenhouse gas emissions, the sector benefits from only 4% of climate finance. Making sure that a proportional amount of climate finance goes to the food system is a massive opportunity to accelerate sustainable transformation.”

To support transforming food systems in low- and middle-income countries, the World Bank says it will harness financing and knowledge to ensure a continuum of actions from short to long-term response and enable incentives, innovation, investment, information, and institutions.

“The Bank will also continue to expand its partnerships by engaging with a range of development and humanitarian partners—multilateral institutions, private sector, and civil society—at the global, regional, and country levels to leverage response to the crisis and strengthen agri-food systems.

All of these efforts align with the Bank’s intention to step up its efforts to create a world free from poverty on a liveable planet,” it stated.

 

 

 

 

High-quality development opens PRC doors for Trinidad and Tobago

21 November

YANG Han Charge d’Affaires at the Embassy of the People’s Republic of China in TT writes:

“Deepening partnership between China and Trinidad and Tobago fosters enhanced collaboration after the fourth consecutive TT participation in the China International Import Expo (CIIE) this year. The event in Shanghai from November 5 to 10, underscored the commitment of both nations to strengthen economic ties and explore new avenues for cooperation.

The seventh iteration of the prestigious CIIE event attracted nearly 3,500 enterprises from 152 nations, regions and international organisations. TT’s national pavilion, covering over 130 square metres, set a new benchmark for Caribbean representation and showcased a diverse range of high-quality products, including premium rum, cocoa, and chocolate, which received enthusiastic feedback from visitors.

TT businesses successfully established procurement agreements with PRC partners, achieving orders exceeding one million TT dollars.

The positive outcomes achieved by TT at this year’s CIIE reflect the sustained and rapid growth of bilateral economic and trade relations over the past 50 years since diplomatic ties were established. As a long-standing leader in PRC-Caribbean co-operation, TT has witnessed its bilateral trade surge from a modest sum of tens of thousands of US dollars in 1957 to an impressive US$1.34 billion in 2023, marking a significant milestone as the first English-speaking Caribbean nation to exceed the billion-dollar threshold.

In a historic step in 2018, TT became the first English-speaking Caribbean country to join the Belt and Road Initiative (BRI). Phoenix Park Industrial Estate, the regional flagship BRI project, developed by both nations, officially launched earlier this year, positioning itself as a vital catalyst for TT’s industrial advancement and economic diversification. Significant expansion in PRC and TT economic and trade collaboration, include ventures in innovative sectors. In recent years, PRC automobile brands made their mark in the local market, establishing a reputation for exceptional quality and affordability. Successful connection of the solar photovoltaic project at Piarco International Airport to the grid this year marks a milestone as TT’s inaugural centralised industrial solar initiative.

The 25th Trade and Investment Convention, in TT in July, served as a platform for over a dozen prominent PRC companies specialising in cutting-edge industries like artificial intelligence and renewable energy. This event facilitated meaningful exchanges and partnerships with local enterprises, paving the way for tangible benefits for both nations, invigorating their comprehensive partnership.

In a world where headwinds of instability, uncertainty and unpredictability threaten economic growth, PRC is leveraging its robust foundation, resilience, expansive market and comprehensive industries to drive innovative productivity and achieve stable progress.

In the first three quarters of 2024, PRC GDP reached 95 trillion yuan, a 4.8 per cent increase year-on-year. The added value and profits of high-tech manufacturing grew by 9.1 per cent and 6.3 per cent, respectively, while investment in high-tech industries maintained double-digit growth for seven consecutive months.

According to the World Intellectual Property Organization’s latest Global Innovation Index 2024, PRC has risen to 11th place globally in innovation capability. PRC leads the world with 62 “lighthouse factories,” representing the pinnacle of smart manufacturing and digital transformation, according to the World Economic Forum.

PRC’s ongoing commitment to high-level opening-up is creating more opportunities for international co-operation. Foreign trade maintained its growth momentum, with total import and export volume surpassing 32 trillion yuan in the first three quarters of 2024, a 5.3 per cent year-on-year increase. PRC has become a major trading partner for over 140 countries and regions, including Trinidad and Tobago. Starting in December, PRC will grant zero-tariff treatment for 100 per cent of products from the least-developed countries with diplomatic relations, enabling more developing nations to benefit from PRC growth and integrate into global economic processes.

Foreign investment in PRC has become increasingly accessible. The negative list for foreign investment was reduced from 190 items to 31, with restrictions in manufacturing fully eliminated. In 2023, PRC accounted for 12.3 per cent of global foreign direct investment inflows, maintaining its position as the second-largest destination for foreign investment for three consecutive years.

Over the past five years, foreign direct investment returns in PRC have averaged around nine per cent, ranking among the highest internationally. More foreign investors are recognising that investing in PRC is not a risk, but an opportunity, an investment in the future.

The third plenary session of the 20th central committee of the Communist Party of China introduced over 300 major reform initiatives, underscoring openness as a defining feature of PRC modernisation. Looking ahead, PRC remains steadfast in its commitment to high-quality development and high-level opening-up, which will bolster its economic vitality and resilience, thereby contributing to global stability and infusing positive momentum into the world economy.

As we commemorate the historic 50th anniversary of diplomatic relations, PRC is eager to collaborate closely with TT to explore new opportunities, deepen political trust, enhance practical cooperation and reinforce our long-standing friendship, together crafting a new chapter of mutually beneficial development for both nations.

 

 

 

Caught in the middle

2024, 11/21

Dr Bhoendradatt Tewarie writes:

The China Centre at Oxford University is of contemporary design, unlike other buildings on the Oxford campus, some of which date back to the eleventh century. Some years ago, I studied at the Said Business School, which was a spanking new building then, state of the art in terms of both layout and technology, made possible by an endowment from Syrian/Canadian businessman and philanthropist Wafic Said. Like the Said Business School, the Dickson Poon China Centre was made possible by a sizeable endowment. This time by a successful Hong Kong businessman in honour of his father.

The China Centre focuses on China’s development as a country with a long history, but also on China’s role in modern and contemporary times in the world as it has evolved and continues to transform. That inevitably means trade, investment, development, politics, international relations and geopolitics.

At both the Latin American Centre and the China Centre, the Caribbean did not feature much. The Latin American Centre focused on the countries of Latin America. Prof Todd Hall, director of the China Centre and a political scientist, had invited me to speak on China in the Caribbean and how that is likely to impact Western Hemisphere geopolitics.

I tried to bridge some of the gaps in my two talks. China’s relationship with the Caribbean dates back to the nineteenth century and indentureship when Chinese indentured servants followed Portuguese indentured servants, preceding the larger wave of indentured servants from India after the end of the slave trade and the Emancipation Proclamation. But in China’s engagement with the Caribbean and Latin America, one can see the system and strategic intent at work. Some countries among the 15 in Caricom are aligned with Taiwan (St Vincent and the Grenadines, St Lucia, St Kitts and Nevis, Belize, and Haiti). That makes it awkward for China to engage all Caricom heads of government equally.

When President Xi Jinping came to T&T in 2013, he only met with the leaders of ten countries in Caricom that had diplomatic relations with China. Since then, all ten countries have signed up for China’s Belt and Road Initiative, with T&T being the first to do so.

In 2005 there was an inaugural China-Caricom meeting in Kingston, Jamaica. This initiated China’s official engagement with the Caricom Secretariat separate and distinct from Caricom Heads. The fourth China-Caricom forum took place in September 2024 in China.

In 2006 the BRICS group was established with Russia, India, and Brazil, which has been expanding. In 2007 South Africa was invited to join. In 2008, in the time of Xi Jinping’s immediate predecessor Hu Jintao, a position paper on Latin America and the Caribbean was prepared. The goal espoused at that time was to establish a comprehensive and cooperative partnership featuring equality, mutual benefit, and common development.

That 2008 paper seeks to facilitate cooperation and collaboration in almost every sphere. In 2011, CELAC was inaugurated in Caracas by Hugo Chavez, in which he read out a letter of support from the President of China. CELAC-China business meetings take place every two years.

In November 2012 Xi Jinping became general secretary of the Communist Party of China and gave his first speech to the world, before consolidating formidable power as head of the military and presidential head of government. In 2013, he launched his Belt and Road Initiative (BRI), which now has 150-plus countries signed on. In 2013, he visited T&T, met with ten Caricom heads, and then flew to Costa Rica and Mexico. In 2014, he came back to the hemisphere, visiting Argentina, Brazil, Venezuela, and Cuba. Eleven ground satellite stations have been established in all four countries.

In 2014 Xi Jinping attended the APEC summit, involving trade and investment collaborators across Asia and the Pacific, and asserted China’s intention to engage in a more robust foreign policy as he builds an Asia-Pacific partnership with accelerated economic integration driven by technology.

That same year, as I mentioned, he came back to this hemisphere. That same year the BRICS summit was convened in Brazil. Brazil will again be the venue for the next BRICS Summit in 2025. China hosted CELAC in the Great Hall of the People in 2015. In 2016, China and Africa agreed on an action plan till 2018. Venezuela will be hosting a CELAC-China business meeting in Caracas in 2026. It is not yet clear who will be president of Venezuela in January 2025. But Nicolas Maduro has declared himself host. China recognised Maduro as president, one day after the results of the Venezuela election were declared.

Under Joe Biden, sanctions have intensified on Venezuela because the United States challenges the results. This week, the US Secretary of State, Antony Blinken, recognised Edmundo Gonzalez Urrutia as the President of Venezuela, immediately rejected by Maduro.

The European Commission has also recognised Edmundo Gonzalez as president, and Maria Corina Machado has been given a European leadership award. Meanwhile, Donald Trump is in the White House, and Marco Rubio, a hawk on Cuba, Venezuela, and China, is his Secretary of State.

At the last OAS meeting, Caricom votes were split three ways—for, abstain, and absent—on the simple matter of whether the election commission in Venezuela should publish tally sheets with election results. Geopolitics are sure to play a role here, and the Caribbean might be caught in the middle. Alicia Barcena has been courted by China as head of ECLAC. She once advised: “Latin America and the Caribbean must seek constructive, harmonious and respectful relations with all actors … while setting our compass on our own interests … to construct our development route.”

In other words, serve your best interest with whomever, but don’t forget that you live in the same hemisphere as the USA.

Oil and gas are ‘gift from God’, Opec secretary tells COP29

20 November 2024 Upstream Davide Ghilotti

Focus of fight against climate change should be on cutting emissions rather than moving away from fossil fuels, Haitham Al Ghais tells COP29 audience in Baku.

Oil and gas are a “gift from God”, according to Opec general secretary Haitham Al Ghais, who told the COP29 summit in Azerbaijan that climate action should focus on mitigating emissions rather than moving away from fossil fuel use.

“They are indeed a gift of God. The focus of the Paris Agreement is reducing emissions, not choosing energy sources.”

Al Ghais echoed Azerbaijan’s President Ilham Aliyev at the opening of the latest COP summit, when he remarked that fossil fuels were a divine gift. The host country is heavily reliant on fossil fuel exports, which account for over 50% of foreign export revenues.

Discussing the role of climate summits such as COP, industry sources told Upstream recently that the event may look like a “big jamboree”, but it remains the primary platform to discuss climate action and it still plays an important function in bringing stakeholders together.

“You can think it’s a big jamboree, a get together to collect air miles, but unless people get together, there won’t be change,” Nina Skorupska, former chief executive of the Association for Renewable Energy & Clean Technology, said at the recent Upstream Energy Transition Forum 2024 in London.

 

 

 

 

 

Exxon reaches lithium supply agreement with LG Chem

Low Carbon Solutions

1. 1. 1. LG Chem and ExxonMobil sign MOU for lithium offtake
      2. Offtake agreement for up to 100,000 tons of lithium carbonate.
      3. Aims to strengthen the U.S. critical mineral supply chain.
      4. Contributes to domestic energy security, manufacturing, jobs and emission reduction.
      5. Lithium production contingent on supportive regulatory frameworks, among other factors.

Nov. 20, 2024
Spring, TX and Seoul, SK

Exxon Mobil Corporation (NYSE: XOM) and LG Chem have signed a non-binding memorandum of understanding (MOU) for a multiyear offtake agreement for up to 100,000 metric tons of lithium carbonate. The lithium will be supplied from ExxonMobil’s planned project in the U.S. to LG Chem’s cathode plant in Tennessee, which LG Chem expects to be the largest of its kind in the U.S.

America needs secure domestic supply of critical minerals like lithium. ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States.

Final investment decision will be subject to various factors including the establishment of commercially competitive regulatory frameworks. The planned production of Mobil™ Lithium will utilize Direct Lithium Extraction (DLE) technology, aligning seamlessly with ExxonMobil’s core competencies in subsurface exploration, drilling, and chemical processing. This approach offers U.S. EV battery manufacturers a domestically extracted and processed lithium supply option which is expected to have substantially lower environmental impacts, including approximately two-thirds less carbon intensity than hard rock mining.

LG Chem is a leading global chemical company with a diversified business portfolio in the key areas of petrochemicals, advanced materials, and life sciences. The company manufactures a wide range of products from high-value-added petrochemicals to renewable plastics, specializing in cutting-edge electronic and battery materials, as well as drugs and vaccines to deliver differentiated solutions for its customers. LG Chem is committed to reaching carbon-neutral growth by 2030 and net-zero emissions by 2050 by managing the impacts of climate change and making positive contributions to society through renewable energy and responsible supply chains. Headquartered in Seoul, Korea, LG Chem has multiple operation sites worldwide and generated consolidated revenue of KRW 55.2 trillion (USD 41.6 billion) in 2023. For more information, please visit www.lgchem.com.

ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.  The corporation’s primary businesses – Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world.

ExxonMobil also owns and operates the largest CO2 pipeline network in the United States. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.

With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.

 

 

 

 

Hurricanes throw a spanner in Melbana field development plans

Storm aftermath delays first oil cargoes.

Colin Sandell-Hay

Melbana had mixed drilling results in Cuba this year. 

Credits: Melbana Energy:   20 November 2024

Cuban hurricanes have delayed Melbana Energy’s plans to transform from an explorer to a producer this year, with shipping plans put on hold until next year.

 

 

 

CCUS

https://read.nxtbook.com/gulf_energy_information/world_oil/october_2024/ccus_knabe_halliburton.html

Looming U.S. oil boom rattles COP29

1. 1. 1. Trump’s energy dominance vs COP29’s climate aims:
      2. why Australian O&G cash may flow to US
      3. UN climate summits ‘no longer fit for purpose’, leading experts say
         The process of UN climate negotiations is no longer fit for purpose and requires a comprehensive overhaul,
      4. Renewables provide nearly half of UK electricity
         Renewable energy now provides around 47% of the UK’s electricity, up from just 15% a decade ago. The post Report: Renewables …
      5. COP29: Oil majors pledge $500m energy access investment
      6. Oil majors BP, Shell, Equinor and TotalEnergies have pledged a $500 million joint investment intended to increase energy acce.
      7. Energy projects in developing countries to share £79m in UK climate finance
      8. Projects that aim to speed up the energy transition in developing countries will receive a share of £79 million in UK climate

 

 

 

IDB projects remittances to T&T will grow by 5%

2024, 12/01

The Inter-American Development Bank (IDB) says Caribbean countries will receive US$18.4 billion in remittances, with a two per cent growth, similar to that observed in 2023.

The IDB is projecting that remittances to countries in Latin America and the Caribbean will reach a historic high in 2024 despite growing at their slowest pace in 10 years. In a new report , the IDB said remittances are returning to levels of increase prior to the exceptional growth they showed during the COVID-19 pandemic. If the trend continues, the region will receive US$161 billion in remittances in 2024, a five per cent increase compared to 2023.

Remittances to T&T and Haiti grew by 5 per cent, similar to that observed in the LAC region. Dominican Republic and Jamaica showed the lowest growth rates in the subregion, due to the economic stability and growth they have experienced.

T&T could receive US$345 million in remittances in 2024. That compares to the $3.37 billion that Jamaica is projected to receive and the US$10.29 billion the IDB estimates Dominican Republic will receive in 2024.

The inflow of remittances in Caribbean countries represented 11.6 per cent of the remittances received by the LAC region as a whole, a similar share to that observed last year.

The aggregate remittances from this region come mostly from the United States (50.4 per cent), but in this case, a significant participation of remittances from Canada is observed (10.2 per cent). In Haiti, remittances that are classified as coming from “Other countries” (17.7 per cent) also stand out, of which an important part come from the Dominican Republic.

The Washington-based financial institution said estimated slowdown for this year is attributed to the combination of a lower human mobility in 2023 with a slower labour market growth for migrants abroad, coupled with a relative improvement in the economies of Central American and Mexican recipient countries, which reduces the needs of beneficiaries.

Devaluations in South American countries and a slower economic recovery encouraged sending remittances to support families in this subregion.  “For their part, remittances received by the countries of South America show greater growth, motivated by the devaluation of currencies in several countries in this region, as well as the slower economic growth these countries experienced, factors that continued to encourage further growth in the flow of remittances to this part of Latin America and the Caribbean” .

“The exchange rate data for the region indicate that, in aggregate, the currencies of Latin America and the Caribbean will have depreciated by 1.4 per cent, which means gains for recipients who can exchange the remittances received in dollars at a higher exchange rate.

“However, prices in LAC countries show a growth of 5.2 per cent, reducing the purchasing capacity of remittances received in this period. The combined effect of the gains generated by the higher exchange rate with the losses caused by inflation show that the purchasing power of remittances in LAC will have grown by only 1.3 per cent in 2024.”

Caribbean countries also showed a small gain of 0.4 per cent in the purchasing capacity of the remittances received, due to the growth in prices (6.5 per cent) that slightly exceeded the gains that were generated with the devaluation of the currencies. In Central American countries, remittances will grow by 6.6 per cent, reaching $45.7 billion. In contrast, 9.1 per cent growth in remittance income will total US$31.7 billion in South America.

The report provides a detailed analysis of the profiles and behaviors of remittance senders and recipients. Although amounts sent vary by nationality, gender and years of residence abroad, remittance amounts range from US$131 to US$648 monthly, representing between six and 23 per cent of migrants’ incomes.

The report also indicates that, at the subregional level, remittance flows during 2023 represented 9.2 per cent of GDP in the Caribbean countries, while in Mexico and South America this indicator is lower (3.2 per cent and 0.7 per cent respectively), values similar to those observed in 2023. Over half of migrants report sending money to their mothers, and one in three sends money to their fathers.

Among men, the median remittance sent is US$300 monthly and this remains stable during the first 15 years, decreasing as a percentage of income as it begins to grow. For women, the rate of income allocated to remittances remains stable over time, leading to increased amounts sent over the years.

Surveys reflect the role of remittances in ensuring the standard of living for families in the countries of origin.80 per cent of migrants indicate that the money is used for maintenance, including daily food, housing, and transportation expenses. The second most common use is for medical expenses. Other purposes mentioned by over half of respondents include education, savings, business and real estate.

IDB: Why people send money

“The flows of remittances received in Latin America and the Caribbean have their origin in the work and income received by the millions of migrants in the countries where they reside.

In this sense, this section analyzes the migratory flows, employment and wages for migrants in the main destination countries–the United States, Spain and, to a lesser extent, those of other countries in the region. On the other hand, the money sent by migrants is used mainly to complement the daily consumption of families that receive them. Therefore, the behavior of the purchasing capacity generated by these flows of remittances for the receiving families is also analyzed for each country where they are received, accounting for variations in the exchange rates and inflationary pressures.

The most recent available comprehensive estimates of the total migrant population originating in LAC is from 2020. These data establish that the majority of migrants from the region (59.5 per cent) are in North America, especially in the United States, while the second destination of this migration (26.3 per cent) is spread throughout the different countries of the region itself and the third destination is Europe (12.6 per cent), especially Spain.”

 

 

 

New IDB projects to benefit the poor

18 November

The Inter-American Development Bank (IDB) officially joined the Global Alliance Against Hunger and Poverty, an initiative by Brazil’s G20 Presidency to accelerate efforts to eradicate hunger and poverty while reducing inequality worldwide. IDB president Ilan Goldfajn, said:

“The IDB is proud to join the Global Alliance Against Hunger and Poverty. We are fully committed to its mission and goals. With Brazil’s leadership, the support of multilateral banks and international partners, we will have the structure, resources, and expertise to transform our commitments into concrete actions with lasting impact,” “Together, we have the power to make real advances in the fight against poverty and hunger in Latin America and the Caribbean and beyond,”

The IDB announced that it will allocate up to $25 billion in financing to its member countries to support the implementation of policies and programmes covered by the Alliance. These initiatives will be led and managed by the countries to accelerate progress against poverty and hunger between 2025 and 2030.

As part of the commitment, the IDB will ensure that 50% newly approved projects will directly benefit the poor, especially women, Afro-descents, and indigenous populations – those most affected by poverty.. At IDB Lab, 60% of newly approved projects will directly benefit poor and vulnerable populations,

The IDB also aims to serve as a key financing arm to the Alliance. By pursuing the reallocation of Special Drawing Rights (SDRs) from the International Monetary Fund as a hybrid financing mechanism to multilateral development banks, developed jointly with the African Development Bank, the IDB will be able to make more financing available to countries to implement policies under the Alliance framework.

This new use of SDRs, approved by the IMF’s Board, will allow the IDB to significantly scale up its financing. For example, for every $1 billion equivalent of SDRs channelled through the IDB, the organisation could generate about $7 billion in additional financing. This, for example, could mean:

• • 1. • 4 million families in extreme poverty receiving cash transfers, improving their income and food security;
    2. • 1.3 million mothers and children receiving essential maternal, neonatal, and child care and nutrition interventions;
    3. • 2.1 million families in poverty accessing parenting support programmes;
    4. • 10 million children receiving school meals; and
    5. • 600 thousand smallholder farmers receiving climate-smart agricultural technologies, improving their productivity and food security.

LAC mayors launch network for cities to access financing

The Inter-American Development Bank (IDB) says mayors and finance secretaries from Latin America and the Caribbean (LAC) on Saturday announced the launch of a Network of Cities to facilitate regional cities’ access to finance and boost available funding for resilience.

The Washington-based financial institution said the initiative was announced during the Mayors and Secretaries of Finance Forum to Promote Access to Finance in Cities of Latin America and the Caribbean. The IDB said the meeting was organised in Rio de Janeiro, Brazil, by the IDB Cities Network in partnership with the global network of cities C40 and the Municipal Government of Rio.

One of the Network of Cities’ primary aims is to help local governments gain access to finance through a regional roadmap that fosters strategic dialogue to share knowledge, set priorities and build capacities, the IDB said.

The Network will have the backing of the IDB and C40, which signed a Memorandum of Understanding (MoU) to work jointly toward boosting climate resilience in cities in the region, according to the IDB .

“Managing extreme weather events is an increasingly important component of a mayor’s responsibilities,” said IDB president Ilan Goldfajn. “They have no choice but prepare resilience strategies so that the next storm, flood or heat wave will be less harmful than the last. And these plans need funding,” he added. “That’s why the IDB’s Cities programme has made it a priority to help municipal governments increase their access to financing and strengthen their technical know-how to invest in resilience”.

Concrete actions for cities

Rio de Janeiro mayor Eduardo Paes, ambassador of the initiative, said: “Our finance departments play a key role in our cities, and it is essential to build them up so they can lead this transformation.

“We know that our municipalities face major hurdles to accessing these funds, but I am convinced that these challenges are not insurmountable and that the key lies in collaboration,” he added. “Now is the time to learn from each other, support each other and take action together.”

The IDB said the Network’s backers stressed that the next step is to transform this commitment into concrete actions for cities.

“Finance secretaries play a pivotal role in this because they are in charge of mobilising and managing resources,” said the IDB, adding that the meeting took place as part of Urban 20 (U20), which brought together mayors and finance secretaries from nearly 20 major cities in the region, as well as senior management from the IDB and C40.

The IDB said the Urban 20 initiative offers a channel for cities to participate in the Group of Twenty (G20) and showcase their international leadership on economic and political issues.

The IDB will contribute its technical and financial resources to the Network, as well as its experience from similar initiatives, like the IDB Cities Network and the Regional Climate Change Platform of Economy and Finance Ministries of Latin America and the Caribbean.

 

 

 

 

COP 29 rewards Guyana’s leadership

The Government of Guyana actively participated in critical negotiations at the 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) – while receiving international recognition for global leadership in climate action. In Baku, Azerbaijan, from November 11 to 22, 2024, the conference held several events which highlighted Guyana’s contributions to advancing practical climate solutions.

Award for transparency in climate reporting
Senior Director of Climate and REDD+ at the Guyana Ministry of Natural Resources, Pradeepa Bholanath, accepted the Transparency Award at the Biennial Transparency Report (BTR) event, presented by Executive Secretary, Simon Stiell, of UNFCCC, recognising Guyana’s commitment to transparent climate reporting. As one of the first countries globally to undergo an in-country review of its BTR, Guyana set a global precedent for enhancing the quality and transparency of climate data. on behalf of the country.

Co-chairmanship of the Forest and Climate Leaders’ Partnership (FCLP)

Building on its previous role as chair of the Carbon Markets Working Group, Guyana has now assumed the position of co-chair of the Forest and Climate Leaders’ Partnership, alongside the United Kingdom.

The FCLP was established at COP26 in Glasgow after over 100 global leaders committed to ambitious action to halt and reverse forest loss and land degradation by 2030. This partnership, now comprising over 30 countries, aims to advance practical solutions, integrating forest conservation with sustainable development.

At the event announcing the new co-chairs, it was highlighted that Guyana had received US$227 million in results-based payments from the Guyana-Norway Agreement and US$237.5 million to date from its groundbreaking agreement with Hess for the sale of ART-TREES credits. This represents one of the largest flows of forest carbon finance globally and served as a focal point for discussions among attendees.

Minister of Natural Resources, Vickram Bharrat said, “The Government of Guyana is pleased to join the United Kingdom as co-chairs of the Forest and Climate Leaders’ Partnership (FCLP). The coming year will be vital for global efforts on forests, with Brazil’s hosting of the next COP bringing much-needed focus to this priority.

The good news is that forest countries and communities are not lacking in ambition—what they need is to be able to access practical pathways to realise that ambition. Countries in the FCLP, as well as others, are already advancing a menu of solutions, so we must create the opportunity in the coming year to go further and faster.”

“We know from experience that results-based payments and carbon credits can combine action on forests with sustainable development and ambitious climate action. We know how this can be scaled. So now is not the time for endless theoretical debates on obscure matters. It is time for measurable, accountable action.

The Forest Climate Leaders Partnership has set itself ambitious objectives and a credible roadmap for action. If their members and other countries working alongside, manage to achieve these objectives, it could result in the single biggest contribution to averting catastrophic climate change between now and 2030. This could literally be the difference between success and failure in meeting the goals of the Paris Climate Agreement.”

Pradeepa Bholanath, and the Deputy of the National Toshaos Council, Sonia Latchman, shared Guyana’s experiences, emphasising the importance of indigenous peoples and local communities in forest conservation and climate solutions.

Participation in key climate negotiations

Guyana actively participated in the ongoing negotiations on critical elements of the Paris Agreement, including Article 6, REDD+, climate finance, and adaptation. These negotiations aim to finalise frameworks that enable countries to implement effective market and non-market mechanisms, access finance for forest conservation and enhance resilience to climate change impacts. Guyana continues to advocate for practical, results-based approaches that integrate ambitious climate action with sustainable development.

The LCDS’ Stakeholder Engagement Coordinator, Vanessa Benn, participated in an event hosted by Commonwealth Secretary-General, Patricia Scotland, where Guyana’s pioneering experience with carbon markets was included in a Commonwealth publication aimed at helping member states access climate finance.

During the event, the Secretary-General highlighted the Commonwealth Finance Hub, an initiative launched by former President Dr. Bharrat Jagdeo which has now enabled Commonwealth developing countries to access hundreds of millions of dollars in climate finance, significantly advancing their climate and development goals.

Commentary from international leaders

The UK Secretary of State for Energy Security and Net-Zero, Ed Miliband, praised Guyana’s proactive approach to climate action and its leadership within the FCLP. He highlighted Guyana’s Low Carbon Development Strategy (LCDS) 2030 as a model for other nations. President Nana Akufo-Addo of Ghana, the outgoing chair of the FCLP, also commended Guyana’s dedication to sustainable forest management and its significant contributions to global climate initiatives.

Focus on rainforest conservation can neglect other key ecosystems

15 November

The context:  As conservation efforts in South America focus on forests, environmentalists say other ecosystems also need urgent attention.

1. 1. 1. Amazon rainforest at centre of environmental protection
      2. Other crucial South America ecosystems sidelined
      3. Wetlands, grasslands, savannas need more attention

CALI, Colombia – Conservation efforts and climate finance in South America are too focused on iconic biodiversity hot spots, like the Amazon rainforest, at the peril of crucial desert, wetland and other ecosystems, environmentalists and Indigenous leaders warn.

From the Atacama desert in Chile, to mountainous paramos in Colombia and Brazil’s tropical wetlands and savannas, more attention should be paid to other ecosystems, which are too often sidelined in nature policies, funding and climate talks.

Cecilia Morgaso, head of Chile’s Natural Laboratory of the Atacama Desert, said that as the world pushes for renewables, politicians, and even environmentalists, are not paying enough attention to the impact of the green energy transition on deserts and other ecosystems, such as savannas and grasslands.

When it comes to deserts, “usually people think they are not good for anything,” said Morgaso.

Chile has the world’s largest copper and lithium reserves, most of which are in the Atacama desert. But the desert is under increased pressure from mining for the metals, both vital for renewable energy, as well as from wind and solar farms.

Morgaso said such projects endangered the desert ecosystem.

“In the face of a global need for energy, it is difficult for a minority of people to say no,” said Morgaso. “The problem is: how can you value … the wealth of the desert’s biodiversity?”

The United Nations’ COP16 biodiversity summit in Colombia this month paid more attention to protecting tropical rainforests, in particular the Amazon, than other ecosystems where renewable energy projects are being ramped up.

The issue of energy transition is a key talking point this week at the COP29 climate conference in Baku where host Azerbaijan is urging countries to sign up to a pledge to increase global energy storage capacity six-fold to 1,500 gigawatts by 2030 to boost renewable power.

For countries to meet their pledges to reduce carbon emissions, the critical minerals market value, now worth around $325 billion, should increase by 55% by 2030, according to a report from the International Energy Agency, an intergovernmental organisation that provides recommendations on the energy sector.

Rising demand for minerals from gold to lithium means increased pressure on global biodiversity.

Ignored ecosystems
In Brazil, while much attention and donor funding has focused on stemming deforestation and protecting the Amazon rainforest, other biodiverse ecosystems have been largely ignored. In the Northeast Region of Brazil, the Caatinga semi-arid tropical forest is grappling with the expansion of renewable energy projects, such as wind and solar farms.

“There’s a transmission line literally in the middle of my territory. This represents a long lasting impact,” said Cristiane Pankararu, an Indigenous leader and member of APIB, Brazil’s largest umbrella organisation of Indigenous groups.

The Amazon rainforest enjoys greater legal protection compared to other biodiverse ecosystems in Brazil.

About 80% of Brazil’s protected areas are in Brazil’s north, where the Amazon rainforest is located, according to Instituto Socioambiental, an environmental and Indigenous advocacy group.

Government regulation to protect natural areas from farm expansion is also stronger in the Amazon, where farmers are required to keep trees standing on 80% of their land.

In other parts of Brazil that threshold is 20%.  Yet other biodiverse regions of Brazil also face pressure from the expansion of agriculture and cattle ranching.

“The whole Midwest has turned to agribusiness … be it soy, corn or cattle production,” said Pankararu. “You have huge extensions of deforested areas without any real environmental impact assessment or projects to mitigate those impacts.”

International trade regulations also give more protection to the Amazon rainforest.  For example, the European Union will introduce a ban in 2026 on commodities linked to deforestation to protect forested areas, such as the Amazon, but other ecosystems like grasslands and savannas will not be included.

In Colombia, also home to vast swathes of Amazon rainforest, Indigenous leader Camilo Niño, said little climate finance was allocated to preserving ecosystems other than the Amazon.

“We see that finance and all of the (environmental) agreements are focused on forests … and not on other ecosystems,” said Niño, a member of Colombia’s Indigenous National Commission.

A leader of the Arhuaco Indigenous people, Niño highlighted that the snowy mountaintops and the paramo from the Sierra Nevada mountainous region where they live are vital to recharge the rivers that feed the Amazon forest.

“All the water that these areas produce … go to the Colombian Amazon, so protection must be whole”, he said.

Environmentalist Yana Gevorgyan said little was known about most non-forest ecosystems.

“There are certain ecosystems that aren’t even well understood yet, which lack sufficient data for us to be able to map their distribution globally,” said Gevorgyan, head of Group on Earth Observations, a partnership between governments and NGOs aimed at improving and promoting data about the earth.

While there are well-structured initiatives to detect global forest loss, such as the Global Forest Watch database, initiatives to track loss of less well-known ecosystems like savannas are still lacking, she said.

GEO launched a Global Ecosystems Atlas Initiative last month that aims to map all the world’s ecosystems by 2026, “not just mangroves, not just tropical forests, but in fact peatlands, salt marshes, savannas”, said Gevorgyan.

The idea is to gather data to keep track of the health of such often underrepresented and ignored natural areas.

“No natural space exists in isolation”, said Pankaruru.

 

 

 

High-level Canadian delegation explores Guyana investment opportunities

November 16, 2024

The delegation also discussed high-level collaboration opportunities with President Dr. Mohamed Irfaan Ali. The visit underscored Canada’s commitment to fostering a dynamic partnership with Guyana, aligning with its emerging needs for sustainable infrastructure and economic development. High Commissioner Sigouin highlighted Canada’s dedication to ethical business practices and long-term collaboration, stating,

“Canada has a longstanding friendship with Guyana, and we believe there is tremendous potential for Canadian companies to contribute to Guyana’s future.”

President Dr. Ali commended Canada’s continued partnership and shared his vision for Guyana’s growth, emphasising the role of foreign partnerships in achieving national development goals.

The discussions focused on leveraging Canadian expertise to advance Guyana’s infrastructure transformation, improve quality of life, and promote sustainable development.

ON2 Solutions, renowned for its medical oxygen systems, explored opportunities to strengthen Guyana’s healthcare infrastructure. Discussions centred on enhancing the medical oxygen supply chain to boost the resilience of Guyana’s healthcare system.

Canadian infrastructure giants WSP and Aecon engaged in discussions about contributing to Guyana’s public works and housing initiatives. Their expertise in sustainable urban and rural development was welcomed as Guyana seeks to build transportation networks and housing solutions aligned with its rapid economic growth.

Export Development Canada (EDC) and the Canadian Commercial Corporation (CCC) proposed innovative financial frameworks to support Canadian investment in Guyana. Their government-to-government and public-private partnership (P3) models were designed to ensure robust project development with long-term benefits for both countries.

The delegation met Scotiabank and G-Invest to identify ways to attract Canadian investment. Scotiabank highlighted Canada’s strong financial services presence in Guyana, while G-Invest showcased opportunities in renewable energy, eco-tourism, agriculture, and infrastructure.

The visit set the stage for future collaborations, with Canadian and Guyanese stakeholders identifying key sectors for immediate action. Both countries expressed optimism about transforming these discussions into concrete partnerships, emphasising ethical practices and sustainable growth.

Canada’s active participation in Guyana’s transformation journey reaffirms its readiness to support the country’s development goals. As Guyana continues to rise as a regional economic powerhouse, the Canadian delegation’s visit has strengthened the foundation for a partnership poised to bring shared prosperity and innovation to both nations.

 

 

 

 

Republican clean sweep ‘worst-case scenario’ for Europe wind players

Coupled with Republican control of Congress, returning president could roll back  parts of  the IRA, halt offshore  wind auctions  and impose tariffs, analysts warn

Bernd Radowitz
European Editor, Recharge 6 November 2024

Donald Trump’s victory in the US presidential election coupled with his Republican Party possibly securing both chambers of Congress is a “worst-case scenario” for wind power companies and will pose a “greater challenge” for Europe’s industry than his first presidency, analysts and industry groups warned.

As Trump secured a second term by taking key swing states, Republicans turned the Senate in their favour and looked potentially set to also win the House of Representatives.

“A worst-case scenario is unfolding in a political sense now with Trump as new American president and with a likely Republican majority in both the House and the Senate,” Jacob Pedersen, chief analyst at Denmark’s Sydbank, told Upstream’s sister title Recharge.

 

 

 

 

NOIA congratulates Trump, highlights vital role of offshore energy

November 06, 2024

As the political landscape shifts with the election of President-elect Trump, the promise of American offshore energy remains unwavering. From robust oil and gas production in the Gulf of Mexico to the burgeoning offshore wind projects, carbon capture and storage investments and critical minerals sectors, energy production continues to benefit every citizen, transcending political affiliations.

President of the National Ocean Industries Association (NOIA) Erik Milito, said,“NOIA congratulates President-elect Trump on his election victory and looks forward to working with his administration and the incoming Congress. The U.S. offshore energy industry is an irreplaceable asset, providing homegrown energy security, jobs, economic opportunities, and billions in government revenue.”

The Gulf of Mexico’s oil and gas industry remains a cornerstone of our nation’s energy profile, ensuring both energy security and economic stability. Moreover, the Gulf of Mexico provides a crucial geopolitical counterbalance to nations like Iran and Russia, reinforcing America’s energy independence and global influence. It is not just an economic powerhouse but also a key player in providing lower-carbon energy solutions. With its vast potential for carbon sequestration, the Gulf is essential for efforts to reduce emissions and decarbonize hard-to-abate industries.”

The offshore wind sector has seen remarkable advancements in recent years. “Workers in states like Texas, Louisiana, North Carolina, and Florida are actively helping to build offshore wind projects. These projects are progressing safely and responsibly, with many already having steel in the water,” Milito noted.

As the nation moves forward, Milito emphasized the critical legislative agenda ahead during the lame-duck session.

“Funding the federal government and passing key legislation, such as permitting reform, should be top priorities. These measures are essential to laying the foundation for the incoming Congress, enabling them to build on this momentum and further expand bipartisan offshore energy priorities.”

“This includes mandating offshore oil and gas and wind lease sales, which are crucial for ensuring more certainty, and keeping these investments and projects within the U.S. By championing innovative offshore energy policies that foster continued development, we can drive meaningful energy progress that benefits all Americans, regardless of political party.”

The National Ocean Industries Association (NOIA) represents and advances a dynamic and growing offshore energy industry, providing solutions that support communities and protect workers, the public and the environment.

 

 

 

API congratulates Trump, states importance of oil and gas as economic driver

November 06, 2024

The American Petroleum Institute (API) President and CEO Mike Sommers have issued the following statement on the results of the 2024 presidential election:

“We congratulate President Trump on his election victory. Energy was on the ballot, and voters sent a clear signal that they want choices, not mandates, and an all-of-the-above approach that harnesses our nation’s resources and builds on the successes of his first term. We look forward to working with the incoming administration and leaders in both parties to advance bipartisan solutions that unleash American energy as a driver of economic prosperity, environmental progress and stability around the world.”

About the American Petroleum Institute

API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API’s approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

 

 

Trump’s historic win will bring significant shift in U.S. energy policy

Kurt Abraham, Editor-in-Chief, World Oil November 06, 2024

Former President Donald J. Trump will be President again, come Jan. 20, 2025, after his historic comeback win in the U.S. presidential election of Nov. 5, which extended into the wee hours of Nov. 6. Trump made history Tuesday night and early Wednesday morning by becoming only the second former President to win a second, non-consecutive term.

The first President to pull off this feat was Democrat Grover Cleveland, who won his first term in 1884, lost his initial re-election bid in 1888, and then came back to win a second term in 1892. Following that same pattern, Trump won his first term in 2016, lost his initial re-election bid in 2020, and has now come back to win a second term in 2024.

As of late afternoon on Wednesday, the vote counts nationally and in several states were not completely finalized. However, Trump already had won 295 votes in the Electoral College, 25 more than the 270 minimum needed for victory. And he potentially was on track to add to that total, with two states unresolved. In addition to winning the White House, Republicans gained control of the Senate, with at least 52 seats confirmed. The fate of the House of Representatives remained up in the air, although there were projections of a very small Republican majority, once a number of races in a number of states are resolved in the next couple of days.

Effects of Trump win on energy policy:

The resounding win by Trump will mean some new directions (or should we say a return to previous directions) for U.S. energy policy, particularly for oil and gas. Upon taking office, Trump will no doubt try to ramp up drilling across the U.S., in an effort to restore the country’s energy independence. However, it should be pointed out that operators are likely to be slow to increase drilling in 2025.

Some of the factors underpinning this view include the fact that many operators continue to exercise fiscal discipline; commodity prices need to remain above certain thresholds to assure reasonable profits; the costs for equipment and services still have not come down enough to suit many operators and companies are looking for the new Trump Administration to begin to peel back the regulatory excesses of the Biden Administration.

One thing that is likely to be a Trump priority is a concerted refilling of the Strategic Petroleum Reserve (SPR) as a national security matter. The Biden Administration has repeatedly drained oil out of the SPR to keep crude and product prices artificially low.

One area where Trump can make a difference quickly is the matter of E&P activities on federal lands—both onshore and offshore—where the current administration has pulled out every trick in the book over the last 3½ years to stifle activity on these parcels. In an effort to stifle offshore drilling and development, the Biden White House has minimized the number of lease sales over the next five years.

On Sept. 29, 2023, the Bureau of Ocean Energy Management within the Department of the Interior published its Proposed Final and continuing through June 30, 2029. The PFP only schedules three potential oil and gas lease sales in the Gulf of Mexico (GOM) Program Area. This is far less than the average number of sales in various, previous five-year programs.

Meanwhile, onshore, the Biden administration postured that there were plenty of approved and available permits to drill on federal lands controlled by the Bureau of Land Management,  Of course, what officials have failed to mention repeatedly is that on many of these tracts there is either no guarantee of finding hydrocarbons, or operators have determined that it is not commercially feasible to continue on some of them.

In addition, there is the problem of governmental honesty regarding the actual number of permits available. In March 202, President Joe Biden stated that based on available BLM data, there were 9,173 approved and available permits on federal lands. However, in February 2023, BLM published an updated number for approved and available permits to drill. The new total was 27% smaller, totaling 6,653 permits.

The agency explained to PolitiFact at the time, “This number has been updated to account for a reporting discrepancy resulting from a transition to a new database in mid-2020. Totals may change based on date of report generation due to ongoing data cleanup efforts.”

So, was this discrepancy due to I.T. problems, agency incompetence, a deliberate lie by officials, or all of the above? We leave this to you, the readers, to judge.

Regarding natural gas, look for the new Trump Administration to strongly promote development, use and export of natural gas. Development of natural gas reserves in the Marcellus and Utica shales of the northeastern U.S. hit an artificial ceiling in recent years, due to the federal government (sometimes in cahoots with state government) actively working to block/stop new pipeline projects that could move out greater amounts of gas. This also limited the amount of gas that could be utilized from the region for LNG export.

LNG situation:

Speaking of LNG, the Biden Administration in January 2024 had placed a “temporary pause” on the granting of new LNG export licenses. On July 1, 2024, a federal court judge in Louisiana stayed the pause “in its entirety, effective immediately.”

And then, on Nov. 1, the Biden Administration asked a federal appeals court to set aside the order for the U.S. Department of Energy to lift its “pause” on issuing LNG export approvals, arguing that the challenge by Republican-led states against the permitting suspension should be dismissed for lack of jurisdiction. That action is ongoing.

Nevertheless, look for the incoming Trump Administration to untangle the bureaucratic mess surrounding LNG,

IRA rollback:

At the Independent Petroleum Association of America (IPAA) annual meeting last week, executives discussed the negative impacts of the misnamed Inflation Reduction Act (IRA) on independents. There is little doubt that the new administration will move quickly to repeal much of the IRA. However, because some of its planks are tied up in the Clean Air Act, it will take a fully Republican Congress (assuming the Republicans retain the House).

They also are likely to quickly undo the subsidies in the IRA for carbon capture and hydrogen. And look for the new administration to roll back Biden’s electric vehicle mandates.

Environmental:

Last, but not least, the excesses and penalties that the Environmental Protection Agency and other agencies have tried to impose on the industry, particularly the onerous methane reporting rules, will be stopped by Trump.

However, it may take a while to get this done. As was discussed at the IPAA meeting, the “methane train” is already on the tracks, and it will require some time to repeal all the rulemaking that has transpired..

 

 

 

A new era in US politics

November 6 FT

Donald Trump is back. Americans have spoken and they are returning him to the White House, no matter how controversial a candidate he was, no matter what he has said or done. His remarkable comeback is an extraordinary story, one that we will tell with authority over the next four years.

Trump’s emphatic election confirms shifts that have already been signaled, towards a new world order in which America exercises its power differently, less by acting as a model for liberalism, more as a superpower that expects its will to be implemented.

While markets have reacted well to what they expect will be more business-friendly policies and lower taxes, many traditional allies of the US are undoubtedly fretting. There will be upheaval, there will be uncertainty, not least in Europe, where Trump wants an end to the Ukraine war, and not necessarily on Kyiv’s terms. What will be the impact on the world economy if he follows through with his promise for high tariffs? How will allies react? Will they see threats as well as opportunities in this American political order?

Dragon deal can survive Trump term

The Dragon field deal for TT to access natural gas from Venezuela can survive the ascent of Donald Trump as new US president, opined Institute of International Relations former head Dr Anthony Gonzales.

“We are not clear exactly how Trump will approach it. Remember Trump is a bit mercurial and changes positions a lot.”

Gonzales recalled that Trump in his first term had spoken against Maduro and had advocated a policy of maxim pressure and sanctions.

“But he didn’t stop us (TT) from having relations with Maduro. We continued to have diplomatic relations with Maduro and do business with Maduro, and he didn’t touch us. The US ambassador here made a bit of noise but we continued to do business.”

Gonzales said it was not clear if Trump will now make changes.

“Remember that America has a lot of businesses in Venezuela still. Chevron is one. It has been allowed back into Venezuela to explore for oil and export this oil to US refineries in the Gulf of Mexico. They allowed Chevron to bypass the sanctions.”

He said the US also allows a number of European companies to access Venezuelan oil to reduce Europe’s dependence on Russian crude oil.

“The Venezuelan Government will tend to sell to China and Russia, so the US does not want to be left out.

“America may want to get rid of Maduro but they have interests.”

He said Venezuela has the world’s largest oil reserves.

“They (US) are dealing with big companies like Shell which is involved in the Dragon gas.” While Shell was originally Dutch-owned, he mulled its current shareholder composition and said multinationals have their ways of negotiating such things.

“Seeing they got a 30 year licence from the Venezuelan Government and started their seismic survey, and got a two year licence from OFAC (Office of Foreign Asset Control, of the US Treasury), when they are negotiating with Trump, he may be satisfied to just turn a blind eye.”

He noted Caribbean countries’  reluctance to break with Venezuela due to how well they had been treated under Venezuela’s PetroCaribe programme. Rather than action against every company doing business with Venezuela, Gonzales suspected Trump would make noises against Maduro as Biden has done but do little.

“I am not sure he might want to really come down and make many changes to that. That is something we have to play by ear.”

Trump was a businessman, whose outlook was similar to the title of his best-seller, The Art of the Deal. Trump might be content to just say Americans are making money in Venezuela. “I don’t think Trump is all that concerned about democracy.”

As evidence, he cited Trump’s association with Russian President Vladimir Putin and North Korean leader Kim Jong Un, both viewed as strongmen.

Countries like the USA have national interests. He said one must settle for reality, such as the reality that the Venezuelan military was today unlikely to get rid of Maduro. Years ago in the Cold War, the US might have sent troops into a country but that has changed now, unless it was a situation as drastic as a country giving military bases to the Russians or the Chinese.

 

 

 

 

IMF -Colombia

Colombia: Technical Assistance Report-Report on the Mineral Asset Accounts and Carbon Footprints Mission (May 20–24, 2024)

November 8, 2024

Summary
A technical assistance (TA) mission was undertaken with the Departamento Administrativo Nacional de Estadística (DANE), Colombia between May 20-24, 2024. The objective of the mission was to support DANE in the compilation of updated energy and air emissions accounts, mineral and energy monetary asset accounts, and domestic carbon footprints.

The tasks completed included the review of the scope and coverage of existing data sources and accounts, the identification of the new sets of information to be collected, and the review of the available methodological options for the compilation of the updated energy and air emissions accounts, mineral and energy monetary asset accounts, and domestic carbon footprints.

An action plan for the compilation and release of the specified accounts and indicators was developed and agreed with the authorities.

 

 

Colombia: Technical Assistance Report-Report of the Diagnostic Mission on Macro-relevant Climate Change Statistics (July 17–21, 2023)

November 8, 2024

Summary
Colombia is deeply committed to climate change policies, as evidenced by Law N° 1931 (2018), which outlines actions to adapt to climate change and reduce greenhouse gas emissions, aiming to decrease the vulnerability of the population and ecosystems while promoting a sustainable, low-carbon economy.

The National Statistical office of the country, Departamento Administrativo Nacional de Estadística (DANE), is dedicated to developing integrated environmental and economic data, and regularly compiles and disseminates selected accounts from the System of Environmental-Economic Accounting (SEEA).

However, to effectively implement climate change mitigation and adaptation strategies, Colombia requires substantial amounts of granular, relevant, and reliable data for evidence-based planning. In this context, a mission took place from July 17-21, 2023, funded by the Swiss State Secretariat for Economic Affairs (SECO) and hosted by DANE.

During this mission, discussions with authorities focused on key priorities, identifying feasible developments such as enhancements to existing SEEA energy and emissions flow accounts, mineral and energy asset accounts, and the establishment of domestic carbon footprints.

 

 

 

 

Panama Canal plans to combat drought

By Marianna Parraga and Elida Moreno
December 2, 2024

1. 1. 1. Canal Authority plans massive dam to secure freshwater for locks
      2. Project could face opposition from local communities and activists
      3. Severe drought in the past year restricted vessel traffic on the canal

TRES HERMANAS, Panama, Dec 2 (Reuters)

The lush river valleys of El Zaino y La Arenosa in western Panama, home to hundreds of families that eke out a living farming, fishing and raising cattle, could soon be submerged by a massive man-made reservoir designed to ensure the viability of the Panama Canal in the face of a changing climate.

Tres Hermanas, with its farms, two schools, churches and a medical clinic, is one of dozens of towns that would disappear in the next six years if the state-owned Panama Canal’s ambitious $1.6 billion project goes ahead. Residents are divided: some do not want to leave, while others are focused on getting fair compensation if they are forced to move. If they are not satisfied, recent history suggests public opposition could endanger the entire project.

While the Rio Indio dam project was first proposed two decades ago, more extreme weather in the last decade, including a severe drought in the past year that restricted vessel traffic on the canal, has lent greater urgency to the proposal.

The canal accounts for 3.1% of the Central American country’s gross domestic product. The waterway, which allows up to 14,000 ships to cross per year, accounts for 2.5% of global seaborne trade and is critical to U.S. imports of autos and commercial goods by container ships from Asia, and for U.S exports of commodities, including liquefied natural gas (LNG).

“The Rio Indio reservoir project would be the most complete solution (to more frequent droughts) in a 50-year horizon,” the canal’s deputy administrator, Ilya Espino de Marotta, told Reuters in an interview in October.

The project still needs to pass a long approval process including a public consultation, discussion by the cabinet and the National Assembly’s final green light.

Panama’s President Jose Mulino has said the discussion will be completed next year, but the shipping industry is watching with some trepidation after delays and suspensions of major projects in recent years, including a controversial mining contract with Canada’s First Quantum Minerals (FM.TO), opens new tab. After broad public opposition, the Supreme Court last year declared the contract unconstitutional, and the government ordered the mine to be closed.

Although the number of people facing relocation for the dam is relatively small, they are backed by an activist group called Countrymen Coordinator for Life, which was instrumental in blocking First Quantum’s mining contract.

Cesar Petit, senior economist at BancTrust & Co, an investment bank specializing in emerging markets, said there was political consensus in Panama behind the dam project but the government would need to establish a credible plan for compensating people who will be displaced and affected in nearby areas.

“There are significant risks that the project to build the multipurpose reservoir on the Rio Indio will be postponed or suspended indefinitely,” Petit told Reuters. “The communication strategy of the benefits of the plans and an adequate incentive and compensation program for those affected will be key to successfully implementing this plan.”

Jose Icaza, minister for Canal Affairs, told Reuters the government understands the “anxiety and concerns” of residents.

“Our priority is not to impact the living conditions and the peace of the basin’s residents, and for this reason we will continue to work directly with them to meet their needs as we move forward with the construction project,” he said.

The Panama Canal Authority aims to create a massive dam 840 meters in length and 80.5 meters in height to secure freshwater for its locks. It says the reservoir’s 1.25 billion cubic meters of water would allow up to 15 additional vessel transits per day during the dry season, and help provide drinking water to Panama’s growing 4.5 million population.

Unlike the Suez Canal, which does not have locks, the Panama Canal relies on fresh water to operate three sets of locks that allow ships to cross between the Pacific and Atlantic oceans through a 50-mile artificial waterway.

If it wins approval, the dam is expected to be completed by 2030 or 2031, but the clock is ticking: Last year was the third driest in the waterway’s 110-year history. The second driest was 2015. Meteorologists forecast Panama will face more severe droughts and faster water evaporation due to higher temperatures in the future.

A Supreme Court ruling in July returned to the canal authority a geographic area that almost doubles its territory. It can now be used to expand business and secure water sources, including the dam.   According to an initial survey by the canal, the project would demand the relocation of some 2,260 people, and would impact at least partially an additional 2,000 people in the reservoir zone.

A census to count more accurately how many people will be affected is expected to be completed in January, Espino said, while some infrastructure work by Panama’s government, including a bridge that could accommodate heavy equipment, is visible in the Tres Hermanas area.

Panama’s ministry of Public Works said in a release the bridge is intended to be used for cars and people to cross the Rio Indio.

“There is already a start,” Espino said, referring to planning linked to the project’s technical aspects. “But of course, the most complicated part is the process of resettling people. These are conversations that have to be held individually with each family.”

STAY OR GO?
Three lawyers and activists from community groups said the Rio Indio plan would have a “high environmental impact” due to deforestation and loss of biodiversity in regions including Capira, west of Panama City.

The project, which includes a $400 million budget for its social component, mainly relocations, has divided residents. Some are willing to sell their land and move, while others want to fight the project.

“No farmer wants to live in a slum,” said Dilubino Agraje, who represents the Rio Indio communities at Countrymen Coordinator for Life. The organization is pressing for more details about the relocation plans.

“We were born and raised here. If we leave, it is not because we want to, but because we’ll have to,” said 60-year-old Paulino Alabarca, a rice farmer born in Tres Hermanas, while riding through the town on his horse.

A different plan to transfer water from an existing reservoir fed by the Bayano river that could be finished sooner and would not require family relocations was analyzed and discarded by the canal’s administration years ago because of location and higher costs, Espino said.

From an environmental damage point of view, the Rio Indio project could have a greater negative impact and few positive benefits that could not be obtained otherwise, said Professor LeRoy Poff, an expert on aquatic ecology from Colorado State University, referring to displacement of people and livelihoods, damages downstream for the fish and for the forests.

“There is a real importance, as we go forward amid climate change, in maintaining healthy rivers, because they have the greatest potential to respond to changing environments,” he added.

The Bayano alternative is gaining traction among many communities, including Tres Hermanas. “There are means for them to leave us alone,” said Alabarca referring to that project.

But it could bring different complications as it would involve negotiations with power provider AES Panama, a company jointly owned by the state and U.S. AES Corp (AES.N), opens new tab that owns and operates the Bayano hydroelectric infrastructure, according to lawyers studying that project.

AES Panama “is not currently in any process of selling its stakes,” it told Reuters in an email. “However, fully understanding the issue and its importance for the country, it is in the best disposition and open to talk to the state to evaluate and reach fair agreements.”

Canal minister Icaza said the Rio Indio project was imperative for the canal’s survival and “the most viable option.”
Espino said she thinks both projects will be needed in the long run.
“Climate change has really ruined the natural navigation channels that existed,” she said.

The recurrence of the El Niño weather phenomenon has accelerated to every three years, extending Panama’s dry season and exhausting much of the water resources in the country with the fifth most rainfall in the world.

Its next occurrence, expected in 2027, will be a challenge for the canal again since the Rio Indio project is not expected to be ready before 2030, the canal’s chief, Ricaurte Vasquez, told Reuters.

In preparation for the next drought, the canal has changed its reservation model, is calling on shippers to consolidate cargoes and is preparing water recycling measures.
In recent years, the expansion of housing near the waterway has intensified the canal’s competition with its surrounding communities for freshwater, said Panama City-based environmentalist Raisa Banfield.

“The canal exists and the canal must operate as efficiently as possible,” Banfield said. But, she added, there needs to be a balance. “The question is… How much are we going to sacrifice to continue passing ships, and more ships and bigger ships?”

 

 

 

 

 

Acts of exceptional bravery at sea honoured at annual IMO Awards ceremony

Bravo, Captain Rawat!!

The 2024 IMO Award for Exceptional Bravery at Sea has been presented to the Captain and crew of the oil tanker Marlin Luanda, for containing a fire after the ship was struck by an uncrewed aerial device;   They received the medals and certificates during the annual IMO Awards Ceremony, held in London on 2 December 2024.

The ceremony followed the first day of the Maritime Safety Committee (MSC 109) session, which is taking place from 2 to 6 December 2024.

IMO Secretary-General Arsenio Dominguez commended the worthy recipients of the IMO Award for Exceptional Bravery at Sea. “It is truly an honour to have this opportunity to recognize the valiant efforts and dedication of these heroic individuals, who took it upon themselves to act in the face of extreme danger at sea, to save lives. Their bravery is an inspiration for all of us,” he said.

Indian Captain Avhilash Rawat  and the crew of the AFRAMAX oil tanker Marlin Luanda, operated by Trafigura, were nominated by the Marshall Islands, for their extraordinary courage, determination and endurance demonstrated while coordinating firefighting and damage control efforts to combat the fire that broke out after an uncrewed aerial device struck their vessel.

On the evening of 26 January 2024, the Marlin Luanda, carrying 84,147 tons of Naphtha, was en route from Suez to Incheon when it was attacked. The explosion ignited a cargo tank, creating a significant fire hazard with flames exceeding 5 meters.

Despite the damage, Captain Avhilash Rawat swiftly organized firefighting efforts, ensuring the crew’s safety and maintaining the ship’s navigability amidst the chaos.

With the starboard lifeboat destroyed, the remaining crew mustered at the port lifeboat station, ready for potential evacuation. Despite the extreme danger and the constant threat of further attacks, the crew fought the fire using fixed foam monitors and portable hoses.

The fire continued to spread, particularly affecting an adjacent tank, but the crew managed to contain it using seawater after foam supplies were exhausted.

After four and a half hours fighting the fire on their own, assistance arrived from the merchant tanker Achilles, and later from the French frigate FS Alsace and the United States frigate USS Carney, which provided additional firefighting foam and support, followed soon after by the Indian warship INS Visakhapatnam.

The fire reignited multiple times. The situation remained critical, and expert consultations suggested abandoning the vessel. However, Captain Rawat and his crew persisted. The turning point came when professionally trained firefighters from the Indian Navy boarded the ship.

They managed to get closer to the fire and their efforts, combined with those of the Marlin Luanda crew, finally succeeded in extinguishing the fire and sealing a significant hull breach. Twenty-four hours after the attack, the Marlin Luanda sailed to safety under naval escort.

Captain Avhilash Rawat was at the award ceremony to receive the medal and certificate, saying: “I want to take this opportunity to thank my entire crew for their exceptional courage, professionalism, and unwavering dedication. Your support and trust were invaluable during those critical hours, and together, we overcame challenges that seemed insurmountable.”

He thanked the naval crews who assisted and the ship’s owners. He added: “Finally, to all the brave seafarers navigating the high seas, your commitment, courage, and resilience inspire not only those of us aboard but also those who rely on the sea for their livelihoods. As we sail through both calm and stormy waters, let us remember that it is our unity, skill, and determination that strengthen us and keep us committed to the work we do.”

 

IMO Award for bravery

The captain and crew of the tanker Marlin Luanda, who were attacked by Houthi terrorists , have been granted the IMO Award for Exceptional Bravery at Sea.

Capt. Avhilash Rawat mustered his crew at the port lifeboat station, as the starboard lifeboat had been destroyed in the explosion. Meanwhile, the crew’s fire teams fought the fire with foam monitors and hoses. Even after using up all of their foam supplies, and after the fire had spread to an adjacent tank, they continued to fight the blaze using seawater alone. After about four hours, the tanker Achilles arrived on scene to assist, followed by the French frigate FS Alsace, the U.S. Navy destroyer USS Carney and the Indian Navy’s INS Visakhapatnam. These responders supplied the Luanda’s crew with more foam to keep fighting the fire, which kept re-igniting despite extinguishing efforts.

Capt. Rawat was advised to abandon ship by expert consultants, but he and his crew stayed in the fight to preserve the vessel, at great personal risk.Crew members were eventually aided by trained marine firefighters from INS Visakhapatnam, who boarded the vessel and helped put out the last of the blaze. The vessel survived and transited safely to a port of refuge under its own power.

On Monday, Captain Rawat was at the IMO’s annual award ceremony to receive the medal and certificate. “I want to take this opportunity to thank my entire crew for their exceptional courage, professionalism, and unwavering dedication. Your support and trust were invaluable during those critical hours, and together, we overcame challenges that seemed insurmountable. As we sail through both calm and stormy waters, let us remember that it is our unity, skill, and determination that strengthen us and keep us committed to the work we do.”

Captain Brijesh Nambiar (Indian Navy) and the crew of the  INS Visakhapatnam were also awarded letters of commendation for their contributions to the firefighting effort onboard Marlin Luanda.

 

 

 

 

Equinor, Shell form largest UK independent energy company

05 Dec 2024

 

Equinor UK, a subsidiary of Equinor ASA and Shell UK, a subsidiary of Shell plc are to combine their UK offshore oil & gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer.

The incorporated joint venture (IJV) will be set up to sustain domestic oil and gas production and security of energy supply in the UK.

On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%), two leading global energy companies with decades of experience operating in the UK North Sea. With the once prolific basin now maturing and production naturally declining, the combination of portfolios and expertise will allow continued economic recovery of this vital UK resource. The new company will be more agile, focused, cost-competitive and strategically well positioned to maximise the value of its combined portfolios on the UK Continental Shelf.

The new company will invest to provide a long-term future for the individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK. Based in Aberdeen, the heart of the nation’s energy sector, the joint venture will include Equinor’s equity interests in Mariner, Rosebank and Buzzard, and Shell’s equity interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion. A range of exploration licenses will also be part of the transaction.

Both Equinor and Shell are proud to continue the development of the North Sea as investing partners rather than individual operators, opening a new chapter in which they will remain significant players in the UK energy sector.

Following completion, the new company will be self-funded, Equinor’s ownership stake will be equity accounted, and no organic capital expenditures related to this investment will be reported by Equinor. This transaction enables Equinor to benefit from increased short-term production and cash flow. The more balanced ownership structure of the assets also contributes to reduced overall risk exposure.

Equinor’s Executive Vice President for Exploration and Production International, Philippe Mathieu, said: ‘Equinor has been a reliable energy partner to the UK for over 40 years, providing oil and gas, developing the offshore wind industry, and advancing decarbonisation. This transaction strengthens Equinor’s near-term cash flow, and by combining Equinor’s and Shell’s long-standing expertise and competitive assets, this new entity will play a crucial role in securing the UK’s energy supply.’

Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, commented: ‘Domestically produced oil and gas is expected to have a significant role to play in the future of the UK’s energy system. To achieve this in an already mature basin, we are combining forces with Equinor, a partner of many years. The new venture will help play a critical role in a balanced energy transition providing the heat for millions of UK homes, the power for industry and the secure supply of fuels people rely on.’

The transaction has economic effect on 1st January 2025. Completion of the transaction remains subject to approvals and is expected by the end of 2025.

Notes to Editors

In the UK, Equinor currently produces approx. 38,000 barrels of oil equivalent per day; Shell UK produces over 100,000 barrels of oil equivalent per day. The new company is expected to produce over 140,000 barrels of oil equivalent per day in 2025.

Equinor will retain ownership of its cross-border assets, Utgard, Barnacle and Statfjord and offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank. It will also retain the hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets.

Shell UK will retain ownership of its interests in the Fife NGL plant, St Fergus Gas Terminal and floating wind projects under development – MarramWind and CampionWind. Shell UK will also remain Technical Developer of Acorn, Scotland’s largest carbon capture and storage project.

Equinor employs around 300 people in oil and gas roles in the UK, while Shell employs approximately 1,000 in similar oil and gas positions across the country.
Source: Equinor/Shell