Category: Nieuws

An oil refinery is one of six major national projects completed by Oman’s Investment Authority, with a value of over 4 billion Omani rials ($10.3 billion).

These initiatives form part of the National Development portfolio, aimed at bolstering economic diversification, stimulating regional development, attracting investments, and generating employment opportunities, particularly for small and medium-sized enterprises.

The Duqm Refinery and Petrochemical Industries project is the most significant venture, and is poised to transform the port town into a major industrial and economic hub in the region.

The initiative comprises a refinery with a capacity of 230,000 barrels per day, producing various petroleum products.

It also includes storage and export facilities at Duqm Port and an 81 km pipeline from Ras Markaz to the refinery, according to a report by the state-owned Oman News Agency.

In Al-Wusta Governorate, the Ras Markaz Crude Oil Storage Terminal underpins government efforts in economic diversification.

This facility holds a storage capacity of up to 200 million barrels, significantly enhancing Oman’s crude oil storage capabilities and export potential.

The Duqm Integrated Power and Water Project in Duqm, with a capacity of 326 megawatts of electricity and 36,000 cubic meters of water per day, aims to support industrial development in the Special Economic Zone at Duqm by catering to the energy and water needs of heavy industrial companies.

Another strategic initiative, the Rabt project in Duqm, comprises 660 km of transmission lines and five main stations.

This project is set to improve the efficiency and integration of the National Electricity Transmission network, focusing on renewable energy sources.

The Khuweimah Shrimp Farm project in Jalan Bani Bu Ali, South Ash Sharqiyah governorate, aims to achieve food security and leverage local raw materials.

The farm, spanning 200 hectares, includes shrimp cultivation and processing facilities with an annual production capacity of 4,000 tons.

Lastly, with its 304 rooms and suites, the JW Marriott Hotel Muscat represents Oman’s focus on tourism development.

This project aligns with the country’s efforts to diversify its economy, boosting the tourism sector’s contribution to the gross domestic product and creating direct job opportunities for the local workforce.

Oman releases 3 electronic platforms to boost investment climate

Oman’s Ministry of Commerce, Industry, and Investment Promotion has inaugurated three digital platforms in Muscat to boost its investment potential.

The Oman for Business, Hazm, and Maroof Oman platforms represent a significant leap toward comprehensive digital transformation in a bid to bolster the country’s business landscape.

Oman for Business streamlines the process for foreign investors to start businesses, while Hazm ensures consumer safety and streamlines customs processes.

Maroof Oman enhances the legal and regulatory framework for e-commerce, fostering a more efficient, secure online business environment.

These initiatives mark a strategic move toward modernizing Oman’s economy and simplifying commercial activities.

Arab News, November 18, 2023

The EU will need to have a “big buffer” of gas in storage at the end of the current winter to help prepare for the following winter, a senior European Commission official said Nov. 14.

Paula Pinho, energy security director at the EC’s energy directorate, said Brussels was maintaining a “very high level of monitoring and preparedness.”

“I think we are prepared but we really cannot just sit back and relax,” Pinho said in comments posted to the EC website.

“We know that storage facilities are now full, but we cannot afford to just use up all the gas during the winter,” she said.

“As at the end of last winter, we still need to have a big buffer to allow us to go through into the next heating season,” she said, adding that the EC was already preparing for winter 2024-2025. “We cannot lower our guard.”

EU gas storage sites were filled to 99.5% of capacity as of Nov. 12, according to Gas Infrastructure Europe data, having hit 99.6% fullness last week.

The past summer’s stock build was made considerably easier by the warm winter of 2022/23, which left the EU’s storage sites still 55.6% full as of the end of March.

The last winter even saw a period of net injections in January 2023 — typically a peak withdrawal month — as temperatures rose well above seasonal norms.

The still healthy stock level in March 2023 was in stark contrast to the end of the 2021/22 winter when stocks were drawn down to just 25.6% of capacity.

Pinho also said the EC remained vigilant in terms of key energy infrastructure in light of damage to the Balticconnector between Finland and Estonia last month.

“Our infrastructure is critical and because of that, it remains at risk and we cannot exclude the possibility of bad things happening to critical energy infrastructure,” she said.

“If our infrastructure is exposed, we can all of a sudden lose the means to supply the stored gas.”

Demand reductions
Pinho also said the EU had reduced gas demand by 18% compared with the average of the past five years. “We believe that a big part of that is the result of structural measures — and these will stay in place,” she said.

“This means we will be able to continue to simply consume less, which is also our objective, if it doesn’t mean destroying industrial output, and we have good signals in that sense.”

EU member states in July last year agreed to voluntarily cut their gas consumption between August 2022 and March 2023 by 15% compared to the five-year average, and beat the target with demand reduced by 17.7%.

The agreement was extended in March this year and is now set to continue until the end of March 2024.

The biggest cuts in consumption last year were in the autumn on the back of high gas prices and warm temperatures.

Platts, part of S&P Global Commodity Insights, assessed the benchmark Dutch TTF month-ahead price at an all-time high of Eur319.98/MWh in late August 2022.

Prices are now lower thanks to healthy storage levels and demand curtailments but remain historically high, with Platts assessing the TTF month-ahead price on Nov. 13 at Eur47.76/MWh.

The EU rules on demand reduction also provide the possibility for the EU to trigger a “Union alert” on security of supply, in which case the gas demand reduction would become mandatory.

Pinho said “everyone” had contributed to the demand cuts. “When we look at the reduction in gas demand, the contribution from households and industry is 50/50 — so it’s really something that pulled everyone together,” she said.

S&P Global, Stuart Elliott, November 16, 2023

U.S. crude oil refiners this quarter will pull back from red-hot summer run rates as weak gasoline margins and plant overhauls cool operating goals, according to company statements and oil analysts.

Refinery executives are aiming for low-90s utilization rates this quarter after running in the mid- to upper 90% range most of the year. A pullback for seasonal maintenance and a greater shift to producing distillates have reduced production, according to company executives, analysts and U.S. government data.

Production will be enough to keep gasoline prices tame with demand weaker than the production trims, said analysts. Refiners have kept producing gasoline at high rates to supply more distillates. Plants generally make two barrels of gasoline and one of diesel for every three barrels of crude oil processed.

“Guidance has been generally within our expectations of seasonally softer levels due to the pullback in gasoline demand,” said Matthew Blair, head of refiners, chemicals & renewable fuels research at investment firm Tudor, Pickering, Holt & Co.

AAA said on Thursday that gasoline prices have fallen 37 cents in the last month to a national average of $3.44 a gallon as gasoline demand continued to decline.

Last week, the U.S. Energy Information Administration (EIA) reported the latest drop in gasoline demand from 8.86 million barrels per day (bpd) to 8.7 million bpd.

Some companies, notably second-largest Valero Energy , aim to continue high production to capture jet fuel and other distillate demand. Valero’s 14 refineries will operate between 93% and 96.5% of combined crude oil capacity of 2.7 million bpd. HF Sinclair also aims to run slightly hotter this quarter than last with plant turnarounds completed.

Marathon Petroleum, the largest U.S. refiner with 13 domestic plants processing 2.9 million bpd, said it plans to operate at 90% capacity, down from 94% last quarter.

Phillips 66, the fourth largest refiner, said it would operate in the low 90% range, down from 95% in the third quarter.

“Ninety to 91% is where they will operate,” said John Auers, managing director of Refined Fuels Analytics. U.S. refiners are emphasizing diesel production, which has higher profit margins, as they emerge from overhauls, Auers said.

Refineries can shift between 5% and 10% of their production to emphasize either distillate or gasoline production.

Distillates earned about $1.10 a gallon in August while gasoline brought in 80 cents a gallon, according to the EIA.

“It is the diesel that’s carrying the day,” said Andrew Lipow, president of consultancy Lipow Oil Associates. He expects fourth quarter refinery utilization in “excess of 90%” of capacity.

Reuters, Erwin Seba, November 15, 2023

Chinese wind power firm Sany Renewable Energy intends to invest CNY6.5 billion (USD896 million) to build a green ammonia digital demonstration project in China’s northeastern Jilin province.

The project will use wind and solar power to produce renewable hydrogen, which will be used to synthesize green ammonia, the Beijing-based firm said in a statement yesterday. The green ammonia produced will also be used to store hydrogen.

Sany Renewable has already announced three such type of projects this year. In January, it began construction of a green ammonia project in Bayannaoer in Inner Mongolia Autonomous Region, with a total investment of CNY4.3 billion. In April, the company signed a deal with the city of Delingha in Qinghai province to invest and build another of such projects.

The latest project, which will be located in Changling county in the city of Songyuan, will include photovoltaic and wind power plants, transmission lines, hydrogen and ammonia factories, as well as storage and transportation facilities, Sany Renewable noted, adding that the construction schedule is expected to be 18 months.

Sany Renewable will use self-raised funds to finance the project, which will help its business structure, broaden its business layout, continue to strengthen its core competitive advantages, and ensure the realization of its strategic goals, the company pointed out.

In the first three quarters of the year, Sany Renewable’s revenue rose 18 percent to CNY7.5 billion, while its net profit fell 1.2 percent to CNY1 billion from a year earlier.

Shares of Sany Renewable [SHA: 688349] were trading up 0.5 percent at CNY29.91 (USD4.12) as of 10.55 a.m. in Shanghai today.

Yicai, Xu Wei, November 15, 2023

Many voters think of President Biden as a green energy champion who wants to put fossil fuels out of business. But if you look at the financial performance of oil and natural gas companies under Biden’s presidency, you might think he’s their biggest booster.

Energy has been the best-performing sector during much of Biden’s presidency, which is now fueling a mega-merger consolidation sweep among some of the world’s biggest energy companies.

ExxonMobil announced plans to buy driller Pioneer Natural Resources for $64 billion on Oct. 11, prompting Chevron to bid $53 billion for Hess on Oct. 23. More deals are possible as huge energy firms hustle to lock in premier drilling sites as the point of “peak oil”—maximum global demand for the commodity, followed by a gradual decline — comes into view, perhaps within the next decade.

The Exxon and Chevron deals are both all-stock transactions. That’s possible because shares of America’s two largest energy firms have soared during the past two years, giving the acquirers plenty of headroom for big purchases without having to tap cash or borrow.

Big Oil has been thriving, of course, at the same time Biden is overseeing the biggest green energy push in American history. The 2022 Inflation Reduction Act Biden signed includes green energy incentives that could total more than $1 trillion. Private sector firms are applying for those incentives at three times the rate budgeters expected last year. One consequence is a boom in the construction of factories for electric vehicle components and other green energy gear.

This might sound like a set of schizophrenic developments in the US energy sector, with a jacked-up fossil fuel industry threatening Biden’s green energy push (or vice versa). But it’s not. Big Oil is enjoying a heyday now in part because it’s rebounding from lean times. And while Biden clearly favors renewables over carbon, he has also learned that ample stocks of fossil fuels will be needed for years to keep consumer energy costs down and prevent voters from revolting.

It’s conventional wisdom that oil and gas firms are always rolling in money. But not really. In fact, as the following chart shows, energy sector returns have lagged many other sectors since 2010. During the last 10 years, energy was the worst-performing sector half the time, in terms of stock performance among the 11 major industries represented in the S&P 500 stock index.

Many Americans think gasoline and other energy prices were lower under President Trump than they’ve been under Biden. That’s mostly true — but not because of anything Trump or Biden did. One big reason prices were low from about 2014 through 2020 is that energy firms were overproducing and sacrificing profits as a result. As the shale drilling revolution got underway, many energy firms put profits aside as they invested aggressively in new facilities, in order to gain market share. The assumption was that profits would follow, eventually. As a result, energy investors willing to endure tiny profits or even losses basically subsidized the low cost of gasoline and other forms of energy for consumers.

COVID upended that equation. Oil prices plunged so deeply in 2020 that they briefly turned negative. Energy sector stocks in the S&P 500 lost 37% that year, while the broader index gained 16%, for an underperformance of 53 percentage points. Hundreds of energy firms went bankrupt and the mighty Exxon lost a staggering $22.4 billion.

That washout changed the whole industry. Investors and lenders began to demand short-term returns instead of tolerating losses in exchange for growth. Oil prices climbed off the floor as the global economy recovered from COVID. Then came Russia’s invasion of Ukraine in February 2022, which added a fear premium to oil prices for much of the year.

Yahoo Finance, Rick Newman, November 6, 2023

The city of Cushing in Oklahoma, United States, is a central hub within the United States and worldwide oil industry. It connects major pipelines within the United States and is the location where the oil futures contracts end up being delivered; the crude oil tanks around Cushing have approximately 91 million barrels of storage capacity, which is the world record for the World’s Biggest Tank Farm, according to the WORLD RECORD ACADEMY.

“The city of Cushing in Oklahoma is a central hub within the United States and worldwide oil industry. It connects major pipelines within the United States and is the location where the oil futures contracts end up being delivered.

“Cushing is a “vital transshipment point with many intersecting pipelines, storage facilities and easy access to refiners and suppliers.” Crude oil flows “inbound to Cushing from all directions and outbound through dozens of pipelines.” In 2005, crude oil and refined products in the US were almost always transported by interconnected pipeline systems. In Oklahoma, eight private companies operated almost all the pipelines and frequently operated oil terminals and refineries: Enbridge; Enterprise Products; Explorer Pipeline; Jayhawk; Magellan Midstream Partners; Plains All American Pipeline; Sunoco; and Valero Energy.

“The crude oil tanks around Cushing have approximately 91 million barrels of storage capacity. On October 28, 2016, tanks held a total of 58.5 million barrels of oil, though it has dropped in 2018.”

“Though the refineries from its boom years earlier in the century are gone, the town of Cushing, northeast of Oklahoma City, is a major storage site for crude oil and gas that comes and goes by pipeline. Cushing also became famous as a trading benchmark for the industry, when, in 1983, the New York Mercantile Exchange selected the price that a 42-gallon barrel of West Texas,” The Center For Land Use Interpretation says.

“Intermediate crude is trading for at Cushing, as an amount reflecting the general price of oil in the global marketplace. Cushing developed as a holding point between supply, coming principally from Texas, and demand, the markets of the north and northeast, like Chicago, to which it is connected by transcontinental pipeline.

“Cushing would be the southern terminus for the Keystone Pipeline from Alberta, should it be built. Several companies operate tank farms south of town, including Magellan, Enbridge, and PXP, with a total capacity of more than 30 million barrels in around 300 above-ground tanks.”

“Today Tank World News journeys to Cushing, Oklahoma, a small town of no more than 8000 people nicknamed the “Pipeline Crossroads of the World” which hosts the world’s largest tank farm,” the Tank World says.

“An oil town since 1912 when the first wildcatters struck oil, it quickly developed major infrastructure and once its own stocks dwindled it shifted to storage aided by a large number of pipes already in place and its central position in the heart of America. Recent figures from Bloomberg Business Week state the total crude stocks (including stock in farms and pipeline fill) to be in excess of 80 million barrels, with a working volume of 65 millions barrels and an increase of 14 million barrels from September 2011.

“Cushing Oklahoma, is the home of 13 oil storage companies including Enbridge, Magellan, Enterprise and more. Currently, there are 13 pipelines bringing crude oil into Cushing with an estimated total capacity of 1.7 million bpd. Whilst going the other way, out of Cushing there are 12 pipelines running in all directions with a capacity of 1.5 million bpd.”

“Cushing is strategically located to pull in barrels from top U.S. shale fields and Canada, while its hundreds of tanks are tied to pipelines that supply U.S. mid-continent and southern refineries and funnel oil to Gulf Coast export ports,” the Reuters says.

“Tank storage of below 20 million barrels, or between 10% and 20% of Cushing’s over 98 million barrels of capacity, is considered close to operational low, say traders. Below those levels the oil is difficult to remove. Water and sediments often settle at the base of storage tanks, making the crude oil at the bottom unable to meet quality standards for refiners or exporters.

“Some tanks have outlets at the bottom that can be used to empty oil and sludge completely, while others do not and therefore the oil at the base cannot be removed completely. At lower levels, it becomes more expensive for companies to get the remaining crude out of the tanks. Roofs of storage tanks also float on the oil, preventing vapors from building up or escaping into the atmosphere. When the legs of these roofs touch the base, it creates a gap between the oil and the roof, causing combustible vapors to form.”

“North American crude oil is pouring into Cushing, where dozens of steel storage tanks fan out from the outskirts of town, tank farms that march on for miles and connect to every major oil patch in North America through an maze of pipelines. Cushing’s nickname is “The Pipeline Crossroads of the World,” the CNBC says.

“It’s one of the largest crude oil storage hubs on Earth, and in the U.S. arguably the most important. Delivery for West Texas Intermediate crude is taken here, priced for Nymex contracts and stored before it’s shipped to refineries.

“However long that process takes, in the meantime, just outside the geographical limits of the tiny town of Cushing, some $2.5 billion worth of black gold is sitting in tanks, awaiting delivery and drawing the attention of the entire industry.”

“This vibrant hub has 90 million barrels of storage capacity where commercial companies are active participants in the market. The storage capacity has grown dramatically over the past few years and now accounts for 13% of total U.S. oil storage,” the CME Group says.

“Cushing’s inbound and outbound pipeline capacity is well over 6.5 million barrels daily. It is interconnected to multiple pipelines, each capable of transporting hundreds of thousands of barrels of oil daily.

“Significant investments in infrastructure, along with increased U.S. oil production, and the repeal of the oil export ban have strengthened the role of WTI as the leading global benchmark. As U.S. oil production continues to increase, Cushing will play an even greater role in the global petroleum landscape.”

“Cushing is known as the “Pipeline Crossroads of the World” for crude oil, with approximately 100 million barrels of storage in the tank farms in the area. The city plays a critical role in the energy sector due to its expansive storage operations and as a significant physical market price reference or benchmark,” the Oklahoma Department of Commerce says.

“The Cushing Economic Development Foundation, Inc. and the City of Cushing announced that Southern Rock Energy Partners, LLC (SREP) has selected Cushing as the site for the company’s next-generation, full conversion crude refinery. The project is expected to have $5.56 billion in capital investment and supply more than 420 full-time employees for operations.

“The project will result in SREP developing a 250,000-BPD next-generation, full conversion crude refinery which will reduce and eliminate 95% of greenhouse gas emissions while producing approximately 91.25 million barrels or 3.8325 billion gallons annually of cleaner transportation fuels including gasoline, diesel, and jet fuel from crudes sourced domestically from the Anadarko, Permian, Denver and Julesburg, and Bakken Basins. The project will be constructed over a 36-month period beginning in 2024 with commercial operations beginning in 2027. Total economic impact for the first decade of operations of the facility to the Cushing area and the state of Oklahoma is estimated to be more than $18 billion.”

“The first oil well in the Cushing area was drilled in 1896, but it was not until 1912 that the Cushing field was discovered in earnest. This field was unique in that it produced a high-quality crude oil that was in great demand by refineries across the country. The oil was also relatively easy to transport, as it was located near several major rail lines,” the 1600 KUSH says.

“One of the most important events in the history of the Cushing oil fields occurred in 1929, when the world’s first oil futures contract was traded on the New York Mercantile Exchange. This contract, which was for the delivery of oil from the Cushing storage tanks, set the standard for oil pricing worldwide and made Cushing a key player in the global oil market.

“Today, the Cushing oil fields continue to play an important role in the American oil industry. The town remains a major hub for oil storage and transportation, with millions of barrels of oil passing through the area every day. While the production levels of the Cushing fields have declined in recent years, they remain a crucial source of oil for the United States and the world.”

“Cushing (Meskwaki: Koshineki, Iowa-Oto: Amína P^óp^oye Chína, meaning: “Soft-seat town”) is a city in Payne County, Oklahoma, United States. The population was 7,826 at the time of the 2010 census, a decline of 6.5% since 8,371 in 2000. Cushing was established after the Land Run of 1891 by William “Billy Rae” Little. It was named for Marshall Cushing, private secretary to U.S. Postmaster General John Wanamaker.

“A 1912 oil boom led to the city’s development as a refining center, with over 50 refineries operating in Cushing over its history. Today, Cushing is a major trading hub for crude oil and a price settlement point for West Texas Intermediate on the New York Mercantile Exchange and is known as the “Pipeline Crossroads of the World.”

“Cushing is a major crude oil hub within the United States and worldwide oil industry. It is a “vital transshipment point with many intersecting pipelines, storage facilities and easy access to refiners and suppliers.” Crude oil flows “inbound to Cushing from all directions and outbound through dozens of pipelines.” Crude oil tank farms around Cushing have over 90 million barrels of storage capacity.”

World Record Academy, November 6, 2023

IMTT announced today that it has closed on the sale of the company’s bulk liquids storage terminals located in Alamogordo, NM; Bremen, GA; Macon, GA; Montgomery, AL; and Moundville, AL to JET Infrastructure.

These terminals collectively represent approximately one million barrels of storage capacity, leaving IMTT with 41 million barrels of storage capacity at its terminals on the East, West, and Gulf Coasts and in the Great Lakes and Canada.

“The proceeds from this sale will be reinvested into current and future growth projects, allowing us to continue executing our Greener and Cleaner strategy,” said IMTT Chairman and CEO Carlin Conner.

“As of today, over half of IMTT’s revenue in 2023 is expected to be generated from the storage and handling of non-petroleum products, such as renewable diesel feedstocks, renewable diesel, vegetable and tropical oils, and chemicals. At the same time, we remain committed to supporting our legacy petroleum positions in advantaged markets across the US and Canada.”

New Orleans-based IMTT will continue to own and operate its 11 other terminals across North America, all of which can facilitate marine product movements, including eight terminals with deep water dock capabilities.

Businesswire, Kim Nave, November 2, 2023