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Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase 02 December 2015 - Issue No. 740 Senior Editor Eng. Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE is Key Partner in Global Coalitions to Boost Clean Energy Innovation and Deployment (WAM)--The United Arab Emirates is joining world leaders to accelerate clean energy innovation across the globe through Mission Innovation, a multi-billion dollar clean tech initiative, and the International Solar Alliance, a coalition to advance new solar technologies. The initiatives, announced at the 21st meeting of the Conference of Parties (COP21) of the United Nations Framework Convention on Climate Change in Paris, France, reinforce the UAE’s commitment to climate action. "The UAE is embracing climate action as an opportunity to advance clean energy solutions through promising technologies and innovation," said Dr. Sultan Ahmed Al Jaber, UAE Minister of State and UAE Special Envoy for Energy and Climate Change. "The partnerships announced further support the UAE’s economic diversification strategy and ensure a pathway toward a sustainable future." M ission Innovation, launched by U.S. President Barack Obama, French President Hollande Francois and Microsoft co-founder Bill Gates, is a global effort including the UAE, to double their research and development budgets to boost clean energy deployment by 2020. A group of more than twenty private sector investors have also pledged to provide funding for cooperative projects. Joining the Mission Innovation launch were Heads of States and key government officials of participating countries, including the United States, France, United Arab Emirates, India, South Korea, Saudi Arabia, Indonesia, Japan, Norway, United Kingdom, Brazil and Chile.

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Page 1: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 1

NewBase 02 December 2015 - Issue No. 740 Senior Editor Eng. Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE

UAE is Key Partner in Global Coalitions to Boost Clean Energy

Innovation and Deployment

(WAM)--The United Arab Emirates is joining world leaders to accelerate clean energy innovation across the globe through Mission Innovation, a multi-billion dollar clean tech initiative, and the International Solar Alliance, a coalition to advance new solar technologies.

The initiatives, announced at the 21st meeting of the Conference of Parties (COP21) of the United Nations Framework Convention on Climate Change in Paris, France, reinforce the UAE’s commitment to climate action.

"The UAE is embracing climate action as an opportunity to advance clean energy solutions through promising technologies and innovation," said Dr. Sultan Ahmed Al Jaber, UAE Minister of State and UAE Special Envoy for Energy and Climate Change. "The partnerships announced further support the UAE’s economic diversification strategy and ensure a pathway toward a sustainable future."

M ission Innovation, launched by U.S. President Barack Obama, French President Hollande Francois and Microsoft co-founder Bill Gates, is a global effort including the UAE, to double their research and development budgets to boost clean energy deployment by 2020. A group of more than twenty private sector investors have also pledged to provide funding for cooperative projects.

Joining the Mission Innovation launch were Heads of States and key government officials of participating countries, including the United States, France, United Arab Emirates, India, South Korea, Saudi Arabia, Indonesia, Japan, Norway, United Kingdom, Brazil and Chile.

Page 2: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 2

Current innovations underway in the UAE include the development of the Middle East’s first commercial-scale project for carbon, capture and storage, a partnership to produce sustainable biofuels from desert plants irrigated with seawater and a solar-powered desalination plant.

In a separate but related announcement, Indian Prime Minister Narendra Modi and President Hollande introduced the International Solar Alliance, a coalition of solar rich countries like the UAE, United States, Kenya, Chile and Sri Lanka to promote the increased generation and deployment of solar energy.

"Harnessing solar innovation supports our efforts to create knowledge-based sectors and be competitive in a 21st century economy," said Dr. Al Jaber. "It also enables us to protect the environment and limit potential risks of climate change."

The UAE is already investing in solar energy at home, establishing the Sheikh Mohammed bin Rashid Al Maktoum Solar complex and the "Shams 1" concentrated solar power station launched by Masdar in 2013. The UAE

is also a key investor in solar energy initiatives abroad through Masdar projects such as Gemasolar, Valle 1 and Valle 2 in Spain.

Through the Masdar Institute for Science and Technology, the UAE is developing new competencies and energy solutions. Recently launched is the Masdar Institute solar power plant in Masdar City, which is part of Masdar’s Solar Power Center to serve as a research and testing platform for new solar technologies.

The Mission Innovation and International Solar Alliance announcements build on the UAE’s ongoing efforts in clean energy innovation to address climate change and support the UAE’s "Clean energy is core to the UAE’s climate action plan where we set an ambitious target to increase clean energy to 24 per cent of our total energy mix by 2021," said Dr. Al Jaber.

The clean energy announcements were made on the first day of COP21, the UN climate conference in Paris where leaders are expected to finalise a universal, binding agreement on climate change. Outcomes of the negotiation process will be made public on December 11.

WAM/Majok + images by NewBase

Page 3: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 3

EBRD to spur $1.5b for Egyptian solar industry Bloomberg + Gulf news

The London-based development bank plans to install about 700 to 800 megawatts of solar energy in Egypt

The European Bank for Reconstruction and Development (EBRD) will invest as much as $500 million (Dh1.8 billion) in utility-scale solar photovoltaic plants in Egypt, with the goal of mobilising $1.5 billion from the private sector.

The London-based development bank plans to install about 700 to 800 megawatts of solar energy in Egypt, starting next year, Harry Boyd-Carpenter, a senior banker for power and energy utilities at the EBRD, said in an interview. The main recipient of the EBRD’s funds

will be a 1.8-gigawatt solar park in Benban in the country’s southeast, he said.

Egypt has set a target of generating 20 per cent of its electricity from renewables by 2020. About 90 per cent of its electricity comes from fossil fuels, according to data from Bloomberg New Energy Finance. A giant gasfield was recently discovered off the coast of the nation in the Mediterranean Sea by Italian oil major Eni SpA, but the new supply of fuel is not damping clean energy ambitions, Boyd-Carpenter said.

The Benban solar project will cost about $4 billion to build and will comprise about 40 units, each with a capacity of 50 megawatts. Other development-finance institutions such as International Finance Corp., Overseas Private Investment Corp., European Investment Bank, African Development Bank, Islamic Development Bank are considering investing in the solar park.

“The 1.8 gigawatts will be the most solar PV at one site in the world,” said Jenny Chase, head of

solar analysis at Bloomberg New Energy Finance. “Falling costs of solar panels are a huge factor

in economies of scale like this, there has been a lot of excitement for solar in this region for about

a decade but it hasn’t made economic sense until about now.”

At least 80 clean-energy developers have pre-qualified to enter Egypt’s renewables market, including major players such as Enel Green Power SpA, SunEdison Inc. and EDF Energies Nouvelles SA. Infrastructure works are under way, with four substations for the Benban solar park being built at a cost of $100 million.

The EBRD may be involved in other clean-power projects besides Benban, Boyd-Carpenter said. Egypt has outlined plans to install 2 gigawatts of wind energy, 2 gigawatts of utility-scale solar and 300 megawatts of residential solar. The bank has been working with the Egyptian government since January on the regulatory framework for its renewables industry.

“Egypt has seen three years of tremendous upheaval as well as economic challenges in a geopolitically delicate region,” Boyd-Carpenter said. “Solar is becoming a solution to the energy problem because it makes economic sense, on top of the environmental reasons for renewables, and this is very exciting.”

Page 4: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 4

UAE : Damen Shipyards delivers 2 barges to BINCO Saudi Cazette

Damen Shipyards Sharjah delivered two barges, a Crane Barge 4920 and an Anti-Pollution Barge 2405, to BINCO, a leading contractor in the Middle East with over 30 years of experience and active in various sectors such as marine, pipeline and oil tanks, light and heavy vehicle contracting and industrial services. This contract marks another milestone in the established relationship between BINCO and Damen and aims to strengthen services towards Saudi Arabian Chevron, Khafji Joint Operations and other business partners.

Having previously acquired two Damen Stan Tugs 1605 and one Damen Stan Tug 3509, BINCO’s choice to return to Damen was a combination of the wide range of products on offer as well as Damen’s capacity as a complete package supplier in the region.

The Crane Barge 4920 is a heavily constructed, modern, non-propelled barge, custom built for BINCO with a four-point mooring system, a deck crane and free working deck space. Damen barges have a high deck load

capacity and are suitable for a wide range of working environments.

They can be completely custom-built and designed to accommodate to their purpose and usage. The barge will be used for maintenance and repair jobs in the oil and gas industry, mainly for floating pipelines. In addition, the barge will be providing modern crew accommodation and facilities.

While the crane barge is designed to clean and repair pipelines, the simultaneously purchased anti-pollution barge, will be utilized to contain excess oil pouring out of the pipeline. Both vessels will be deployed for SPM operations and maintenance work; on inland waters, in harbors, deep sea and estuaries. The crane barge will be the biggest vessel in BINCO’s fleet to date.

Another advantage for BINCO was the location of Damen Shipyards Sharjah (DSSh) in the United Arab Emirates (UAE), in the Sharjah Hamriyah Free zone. DSSh is ideally positioned for easy access to all seven Emirates as well as providing connections to nearby Gulf States closer to the Straits of Hormuz having a substantial impact with regards to transportation costs.

Located on a 284,000-m? site, the yard is equipped with a 5,200 ton ship lift with a platform dimension of 120m x 26.5m, together with eight dry berths, a fully enclosed blasting and painting facility. The newly built construction sheds total 4,500 m? and additional workshops covering 7,500 m? for the various trades active on the site. This state of the art shipyard is ideal for providing services in the Middle East and beyond.

Page 5: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 5

Russia may freeze work on Turkish Stream gas project Reuters + Newbase

Russia may freeze work on the Turkish Stream gas pipeline project for several years in retaliation against Ankara for the shooting down of a Russian air force jet, two sources at Russian gas giant Gazprom told Reuters.

The Kremlin has imposed trade sanctions on Turkey over the jet incident last week but so far the measures have not affected the Russian energy exports to Turkey that are the core of their economic relationship.

Freezing work on the pipeline – intended to pump Russian gas, via Turkey, into southeastern Europe while bypassing Ukraine – would have a more symbolic than practical effect because the project is already beset by delays and doubts over its viability.

Any freeze would also not affect another Russian project to boost gas exports to the north of Europe. Gazprom is going ahead with plans to expand the Nord Stream pipeline to Germany despite resistance from several ex-communist states in eastern Europe.

Gazprom sources said no decision had been taken inside the company about changes to the Turkish Stream schedule in response to the row with Ankara, but said they were awaiting instructions from President Vladimir Putin.

“We’re expecting that the head of state, in all likelihood, could declare a freezing of Turkish Stream, or at least some kind of timeout should be announced,” said one Gazprom source, who spoke on condition of anonymity.

A second source in Gazprom, who also did not want to be identified, said: “We are still hoping that Turkish Stream will be pushed back by a few years, rather than completely cancelled.”

Page 6: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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Russian Economy Minister Alexei Ulyukayev said last month Turkish Stream could be among the projects affected by sanctions against Turkey, but he did not specify how. Gazprom is pursuing a strategy of diversifying the routes by which it supplies gas to Europe – its biggest export market – so that less of the gas passes through Ukraine.

In the past, rows between Moscow and Kiev have disrupted transit flows through Ukraine to the European Union. Russia’s annexation of Crimea last year and a rebellion by pro-Moscow separatists in eastern Ukraine have made the relations more fraught, and added urgency to the search for an alternative.

The project is to involve, initially, building a new gas pipeline under the Black Sea to Turkey, and in subsequent phases the construction of a further line from Turkey to Greece, and then overland into southeastern Europe.

Even before the row with Ankara, the project had been delayed and reduced in scale, leading some industry insiders to doubt if it would ever happen. In October, the completion date for the first phase was pushed back from 2016 to 2017.

Russia abandoned a previous attempt to build a new route to southern Europe after Bulgaria, where the pipeline was to have made landfall, pulled out under pressure from Brussels. In September, a group of European companies signed an agreement with Gazprom to expand its Nord Stream pipeline so that it can deliver increased volumes directly from Russia to Germany, also without pumping them through Ukraine.

Gazprom, E.ON, BASF /Wintershall , OMV, ENGIE and Royal Dutch Shell form the new consortium for the project, which is called Nord Stream II and aims to double the route’s annual capacity to about 100bn cubic metres of gas. The new pipelines are due to start transporting gas by the end of 2019, according to the consortium.

The plan has met opposition from the US government and some eastern European countries, which say it allows the Kremlin to squeeze Ukraine out from its role as a transit country.

The pro-Western government in Kiev, in power since street protests overthrew a Moscow-friendly president last year, earns significant revenues from transit fees.

On May 8, 2015 Gazprom moved

on to the construction stage of the

Turkish Stream offshore gas pipeline.

Gazprom will be solely responsible

for the construction of the offshore

section. Turkish gas transportation

facilities will be built jointly

Page 7: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 7

Cameroon: Sterling Energy provides update on Ntem Concession Source: Sterling Energy

AIM-listed Sterling Energy has provided an update on the Ntem Concession, offshore Cameroon.

The Company is aware that Société Nationale des Hydrocarbures ('SNH'), the state oil company of Cameroon, has included a map on its website that indicates that the Ntem Concession is an 'open block'. Sterling Cameroon is the current holder of the Ntem Concession and disputes the

Ministry and SNH's rights to re-licence the concession.

As previously announced, the Company declared force majeure over the Ntem Concession on 6 May 2014 due to overlapping maritime border claims affecting the Ntem Concession by the Republic of Cameroon and the Republic of Equatorial Guinea. As a result, the First Renewal Period has been suspended since 6 May 2014 and therefore the Ntem Concession has not expired. In the event force majeure is lifted, approxi. 10 months remain in the First Renewal Period.

The Company reserves its rights in relation to the Ntem Concession and does not believe that the Ministry of Industry, Mines and Technological Development (the "Ministry") and/or SNH have the right to relicence the Ntem Concession. The Company will continue to seek an appropriate resolution with the Ministry and SNH given the declaration of force majeure and the subsequent suspension of the First Renewal Period. Ntem Background

Sterling Cameroon, a wholly owned subsidiary of the Company, holds a 100% working interest in and is operator of the Ntem Concession. The minimum work obligations for the First Renewal Period have been satisfied. The declaration of force majeure arises due to overlapping maritime border claims affecting the Ntem Concession by the Republic of Cameroon and the Republic of Equatorial Guinea.

Page 8: New base 740 special  02 december  2015

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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

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NewBase 2 December - 2015 Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

US crude oil prices dip after unexpected rise in stockpiles Reuters + NewBase

Crude prices dipped in early Asian trading hours on Wednesday as U.S. stockpiles rose against expectations, compounding a glut that is seeing hundreds of thousands barrels of oil being produced every day in excess of demand.

U.S. crude was trading at $41.68 per barrel at 0000 GMT on Wednesday, down 17 cents from its last settlement and down more than 10 percent since the start of November. Traders said the dip was due to an unexpected 1.6 million barrels increase in American crude stocks to 489.9 million, compared with analysts' expectations for a decrease of 471,000 barrels.

The increase will add to ongoing oversupply which is seeing between 0.5-2 million barrels per day of oil being produced in excess of demand, leading to an over 60 percent price fall since June 2014.

A meeting by the Organization of the Petroleum Exporting Countries (OPEC) this Friday in Vienna is not expected to bring a change in the group's policy, which has seen it keep

output high in an effort to defend market share against other producers like Russia and North America.

"We expect the current status quo to persist. Saudi Arabia is in no mood to cut output, especially as a collective cut remains elusive amidst rising financial stress among other major OPEC and key non-OPEC members," consultancy Energy Aspects said.

One of the supporting factors in oil prices has been demand, especially in Asia where China, the world's biggest energy consumer, is taking advantage of low prices to build up its strategic reserves. Barclays bank said that high car sales despite a dip earlier in the year also supported demand.

"China's implied oil demand growth ... grew at 3.8 percent year-on-year in October (407,000 barrels per day), an improvement relative to the 226,000 barrels per day growth in September," Barclays said.

However, it forecast a moderation in consumption over the rest of the year, with 2016 demand growth expected to average 300,000 barrels per day.

Oil price special

coverage

Page 9: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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Russian Oil Output Stays Near Record Level as OPEC Set to Meet Bloomberg - Stephen Bierman

• November oil output rises from year earlier to 10.779m b/d • November oil exports fall from month earlier to 5.32m b/d

Share on FacebookShare on Twitter Russian oil output in November hovered near a post-Soviet record set the previous month, shrugging off a crude-price slump before OPEC gathers for its annual meeting in Vienna.

Production of crude and gas condensate averaged 10.779 million barrels a day during the month, according to data from the Energy Ministry’s CDU-TEK unit. That’s an increase of 1.3 percent from a year earlier and slightly beneath the 10.782 million barrels a day record in October.

The Organization of Petroleum Exporting Countries meets on Dec. 4 to discuss its output limit a year after it chose to defend market share rather than cut production amid a supply glut. That decision compounded the price slump as Saudi Arabia pursued a policy that squeezed U.S. shale producers and other higher-cost output.

Russia, which isn’t a member of OPEC, continues to build output as a weakened ruble reduces costs for drilling and the nation’s tax system helps compensate for the lower price.

Crude exports reached 5.32 million barrels of oil a day in November, an 11 percent gain from the previous year and a 2.4 percent decline from the previous month.

Page 10: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 10

NewBase Special Coverage

News Agencies News Release 02 Dec. 2015

Oil production rates to dip in 2016 , says experts Saudi gazette

The GCC economies will face challenges in the oil market, says Anton Brender, chief economic officer at Candriam Investors Group, who presented an analysis report on the global economy at the Economic and Investment Outlook for 2016 conference recently held in Kuwait.

Brender stated that each country is facing certain challenges since the global financial crisis in 2008, indicating that the GCC countries will encounter difficulties in redefining their growth strategies as oil prices are low.

The annual conference, organized by the Kuwait Investment Company in cooperation with Candriam Investors Group, gathered businessmen, major CEOs, economic analysts, and journalists to discuss

economic prospects and investment opportunities for the upcoming year.

Equity fund manager from Kuwait Investment Co. Khalid Alduhaiem said: “It is imperative to organize this annual event in cooperation with Candriam Investors Group to provide an overview of economic opportunities for investors.”

Brender further presented two scenarios in which the oil price stands at $55 or goes down to $35, indicating that the oil production rate will in either case significantly decrease in 2016.

“Increase in oil production and falling of oil prices aimed to push the US out of the oil production market has proved difficult,” he said. “With the price at $55, the US Shale oil production falls very slowly. If the oil price would go up to $75, the Shale oil price will move up very quickly. If the oil price goes down to $35, then Shale oil production is going to be depressed in the US and that will make some room for the OPEC countries to put more oil in the market.”

In addition, he said, “The increase in production has been absorbed by a huge increase in inventories which will weigh in the market in the years to come.”

Due to the huge excess of supply in inventories during the last years, “the key problem is to adjust the level of inventories in the near term”.

Anton Brender chief economic officer at Candriam Investors

Group speaks at Economic and Investment Outlook for 2016

conference in Kuwait

Page 11: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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Saudi Arabia has very high break-even prices as opposed to Kuwait, UAE, and Qatar. In addition to slowdown in growth in the upcoming years in Saudi Arabia, fiscal deficits will remain for a while.

“It’s a challenge for the GCC economies as it is for other emerging countries to redefine their growth strategies relying less on oil income,” said Brender. He added that it is in OPEC as well as Saudi Arabia’s interest to increase the oil price.

On emerging countries since the global financial crisis, Brender said, “There was an excess in borrowing in the developed world before the crisis. It has been replaced by an excess of borrowing in the emerging part of the world after the crisis”.

The world is currently witnessing an adjustment of the pace of borrowing in most emerging countries in order to support growth and avoid unsustainability, especially in China where the excess borrowing has been the biggest, he said.

With the exception of India, most emerging countries have been going heavily into debt, he added. China, in particular, is faced with the challenge of rebounding its economy.

Since a large number of trading partners depreciated against the US dollar simultaneously this year, there has been weak depreciation in most emerging countries.

Interest rates will stay low in the global economy and rates of growth will be underperforming compared to the past years, he said.

Florence Pisani, economist at Candriam, said the US economy will continue to witness growth in 2016, adding that investment is increasing steadily yet the power of the US dollar will restrain the rate of growth. However, that will not affect the consumer power of the US market, which will witness a 2.4 percent increase in GDP in the upcoming year.

As for the Eurozone, the economy will be driven by consumption, which will consequently generate improvement in the labor market. The Eurozone is expected to witness a 1.9 percent increase in GDP by 2016.

Page 12: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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Turning Exxon's Tiger Into Joe Camel Is Climate Camp's Gameplan Bloomberg - Alex Nussbaum

A cartoon circulating on Twitter carries a warning for the oil industry. There’s Joe Camel, retired tobacco spokes-animal, suave as ever in a tuxedo, cigarette dangling from his smiling snout. In his hand, a pack of smokes with a twist -- an Exxon Mobil Corp. logo on the wrapper. “Big Oil: The New Big Tobacco,” reads the caption.

Activists have been urging investors for years to pull money out of the fossil-fuel producers blamed for much of the world’s warming. Joe Camel’s new role shows the movement has an even broader target: not just the industry’s money, but its reputation. With envoys gathered in Paris this week for a United Nations summit on climate change, there are signs -- from coal-plant closures to thedeath of the Keystone XL pipeline -- that the effort is bearing fruit.

“That pariah status is growing,” Bill McKibben, a founder of climate advocacy group 350.org, said in an interview. “The fossil-fuel industry remains incredibly strong -- they are super-rich -- but they are not so invincible as they thought they were.”

The Paris talks got under way Monday with more

than 150 world leaders vowing to speed the world’s shift away from fossil fuels. In one of the opening acts, the U.S. and about 40 other countries pledged to cut billions of dollars in industry subsidies. Legal Front

New York State Attorney General Eric Schneiderman has opened another front with an investigation into whether Exxon misled investors by supporting groups that question the danger of climate change, even as its own scientists briefed executives on the risks. Schneiderman has subpoenaed documents from Exxon, the world’s biggest oil explorer, dating back to the 1970s,

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according to a person familiar with the probe. Those allegations inspired the Joe Camel cartoon and an #ExxonKnew campaign that’s burgeoned online in the run-up to Paris.

Scott Silvestri, an Exxon spokesman, said allegations the company suppressed climate research are “inaccurate distortions.” Exxon has worked with government and academics to develop climate science “in an open and transparent manner” for more than 40 years, he said in a phone interview. That includes some 150 public research papers, he said.

Exxon acknowledges the risks of climate change and sees calls for divestment as “a diversion,” Silvestri said. “In view of the monumental scale of the world’s energy needs, solutions are not easy and they’re going to take time, huge investments and thoughtful policies.” Risk Premium

Exxon and oil-industry peers have softened their stance on greenhouse-gas limits over the years. The company now supports a carbon tax and, like rivals, has invested in more climate-friendly natural gas.

The prospect of widening investigations may still add a risk premium to fossil-fuel stocks, said Gregory Elders, a Bloomberg Intelligence analyst.

“Even if proving wrongdoing is unlikely, the damage may be the uncertainty cast over coal, oil and gas,” Elders wrote in a Nov. 9 report. Energy and utility stocks have been the worst performers this year, he said. Moreover, the challenge is more comprehensive than in the case of tobacco, since divestment campaigners are arguing for the end of an industry rather than just a more tightly regulated one, Elders said in an interview.

As of November, money managers controlling trillions of dollars in assets had committed to keep out of fossil-fuel companies, according to Elders. The list has grown in the last year to include French insurance giant Axa SA, Norway’s $900 billion sovereign wealth fund, the Church of England and California’s state pension funds.

Page 14: New base 740 special  02 december  2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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While such pledges probably have little impact on companies’ financial health, they contribute to a political climate that’s getting stormier for fossil fuels, said Katie Bays, an energy specialist at Height Securities in Washington.

Companies that burn or mine coal have faced the most pushback, with power stations shuttered by new regulations or lawsuits. ‘Sea Change’

“You’ve gotten these incremental changes because of the political sea change that we’re seeing,” Bays said.

Divestment gathered steam after a low-point for U.S. climate advocacy in 2010, when Congress killed a cap-and-trade bill supported by President Barack Obama. Activists decided they needed to challenge the industry’s legitimacy, not just push legislation. They took inspiration from the anti-apartheid movement of the 1980s, as well as the tobacco wars, McKibben said.

“The financial community increasingly understands we’re entering a new realm for fossil fuels where it is a dangerous asset and past performance is no guide to its future prospects,” he said. “The message was that on rare occasions, there are some companies that go rogue and those companies have to be treated differently.”

In the U.S., a decades-long anti-tobacco campaign culminated with a legal settlement in 1998 between 46 states and the biggest cigarette makers, which required the companies to pay at least $206 billion to cover public health costs. Nine years later, a federal court found the industry guilty of a “massive, 50-year effort to defraud the public” by hiding the dangers of smoking, and ordered new warnings on tobacco products. Public Opinion

Tobacco stocks mostly shrugged off the assault, helped by growing sales in developing countries. Since the 2006 judgment, Philip Morris parent Altria Group Inc. and R.J. Reynolds’ parent have seen their shares almost triple -- while the Standard & Poor’s 500 Index gained about 60 percent.

By another metric -- public opinion -- the case against tobacco has hit home. Polls suggest mixed results for U.S. climate campaigners on that front. Two-thirds of Americans see global warming as a serious problem and about half, 47 percent, say the government should do more about it, according to a Nov. 30 Washington Post-ABC News poll. But both figures have declined in the past few months.

Meanwhile, the oil industry’s approval ratings have edged higher in recent years as gasoline prices fell. Still, 47 percent have a negative view of it, according to an August survey by Gallup.

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Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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Khaled Al Awadi is a UAE National with a total of 25 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great

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