Mechanical Engineer Job At Metal Craft Fabrications Nigeria Limited




Metal Craft Fabrications Limited, a metal fabrication company specialized in elevators, is recruiting qualified candidates to join our design department in the capacity below:

Job Position: Mechanical Engineer

Job Location: Idu Industrial Area, Abuja (FCT)
Employment Type: Full-time

  • Candidates should possess a B.Sc Degree with 2 – 10 years of relevant work experience.
  • Excellent experience in AutoCAD.
  • Very good experience in Microsoft office.
  • Experience in Solidworks is a plus

Application Deadline

1st January 2023

Method of Application
Interested and qualified candidates should send their CV to: [email protected] using the Job position as the subject of the email.


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CNOOC paga a Petrobras mil 900 mdd por producción compartida en campo de Buzios – Oil & Gas Magazine


Petrobras mantendrá una participación del 85% en el campo de aguas profundas.

La estatal brasileña Petrobras dijo el jueves que recibió 10 mil 300 millones de reales (mil 900 millones de dólares) de la principal empresa china de crudo y gas, CNOOC, en pago por una participación del 5% en un acuerdo de producción compartida en el campo de Buzios.

Con esta transacción, Petrobras dijo que tendrá una participación de 85%, mientras que la unidad brasileña de CNOOC, CBPL, tendrá un 10% y CNODC Brasil Petroleo e Gas (CNODC) contará con un 5%.

Petrobras tendrá una participación de 88.99% en el depósito compartido de Buzios, mientras que CBPL obtendrá un 7.34% y CNODC un 3.67%, informó un comunicado enviado al regulador.

(Reporte de Carolina Pulice. Editado por Sarah Morland y Marion Giraldo)



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Solids Control Equipment In Oil & Gas


The importance of solid control equipment is its ability to save costs of dumping drilling fluids due to the existence of unwanted solids inside. As we are drilling the well, the cuttings will appear in the mud, and further treatment is necessary.

Solid Control Equipment Cut Points

Shale Shakers

The design of shaker screens allows them to remove the particles which will not pass through the mesh. At the same time, the vibration of the screen will control blinding or plugging, which would lower its efficiency. The mesh size on most shale shakers is 10 – 14 API mesh. (A 10 mesh screen has ten openings per inch along each side). Many cuttings will pass through the ten mesh screens since they have disintegrated due to erosion and hydration. For this reason, we may use a finer mesh (80 openings per inch). In addition, we may arrange the screens in series so that a finer mesh is beneath the coarser mesh.

Sometimes, we arrange the screens in parallel to control larger volumes of solids, with a slight overlap to ensure in the equipment, no cuttings bypass the screening. We must remember that using a finer screen minimizes the screen’s flow area. While drilling a surface hole, we will have to screen a large volume of cutting, so there may be a physical limitation on the mesh size (unless increasing the screen area).

Model 48 - Solid Control Equipment -Shale Shaker
Model Derrick-48

Hydrocyclone Equipment For Solid removal

The primary application of hydrocyclones is to remove all the sand particles and most of the silt particles from the mud while retaining the colloidal fraction. Hydrocyclone is a general term that includes desanders & desilters – desanders (6″ diameter or greater), desilters (generally 4″ diameter)- and clay ejectors (2″ diameter). The operating principle of the hydrocyclone is the same irrespective of size (Figure 18). A centrifugal pump feeds mud tangentially at high speed into the housing, thus creating high centrifugal forces. These forces, which multiply the settling rate, will throw the heavy particles against the outer wall and descend them toward the outlet (underflow). The lighter particles move inwards and upwards as a spiraling vortex to the liquid discharge (overflow).

Hydrocyclone mechanism
Hydrocyclone mechanism

The design of hydrocyclones allows passing only solids (plus a small volume of fluid) out of the underflow. This process should appear as a “spray discharge” and not a “rope discharge”. Rope discharge indicates solids overloading, and the underflow will soon plug off completely.

Hydrocyclone Cut-off Points
Hydrocyclone Cut-off Points

Operations

Figure 18 shows the regular operation of hydrocyclone equipment for solid control. The hydrocyclone cut point is the particle size at which 50% of the particles of that size will be discarded (Figure 20). A typical cut point for a desilter is 20 microns, and a desander is 40 microns. Since barite particle size lies between 2 and 80 microns, we can’t run hydrocyclones with weighted muds since it would remove about half the barite through the underflow.

Notice that for a clay ejector (Figure 19), the outlets are reversed (i.e., the underflow containing valuable barite is returned to the active system while the overflow containing finer material is discarded). We install such devices for barite salvage for weighted muds. Notice that the separation mechanism will be due to particles (with different densities) settling action.

Decanting centrifuge
Decanting centrifuge

Decanting Centrifuge Equipment For Solid Control

The introduction of the first oilfield Centrifuges was to control solids and retain the barite in weighted water-based muds. However, we may also use them in unweighted muds and oil-based muds to process the hydrocyclone underflow and return the liquid colloidal fraction to the active system. Figure 21 shows a decanting centrifuge. It consists of a rotating cone-shaped bowl and a screw conveyor. The high-speed rotation of the centrifuge will throw the heavier particles against the bowl side. The screw conveyor moves these particles along the bowl and carries them toward the discharge port. At the opposite end is another port where it discharges the liquid containing the finer particles. For weighted mud, the underflow from the shale shaker will move to the centrifuge (no hydrocyclones used). The solids discharged through the underflow contain valuable barite that will return to the active system.

Centrifuge components
Centrifuge components in solid control equipment

For barite salvage, centrifuge equipment is more efficient than hydrocyclones in solid control since they make a finer particle cut. Under proper operating conditions, we can salvage 90 – 95% of barite. When drilling hydratable shales, we must control the finer drill solids. The finer solids in the liquid phase are typically discarded, although this will also contain chemicals and barite. For unweighted mud, the underflow from the desilters will move to the centrifuge. This time the liquid phase, including the fine material (including bentonite), will return to the mud, while there will be a discard for the solids. We often use this technique in oil-based as the base oil is costly to replace. Water-wet solids in an oil-based mud can be challenging to control, but a centrifuge can separate them from the liquid-colloidal phase. Also, we will have to dump the solids because we can’t reuse them.

Mud Cleaner

Mud Cleaner
Mud Cleaner

A benefit of mud cleaner equipment is to control drill solids larger than barite. It consists of a desilter and a screen and removes solids in two stages. We use it for weighted mud to remove solids while retaining barite. First, the drilling fluids pass through the shale shaker, which should be as fine as possible and still accommodate the full mud flow. Then, the underflow will pass through a bank of desilters, where the overflow (lighter material) will return to the active system. After that, the underflow will move onto the screen (usually 150 – 200 mesh). The barite particles will pass through and return to the system (together with very fine solids). The solids, which the screens will separate, will be discarded.

Most drilling mud companies have developed Mud cleaners under the names “silt separator” or “sand separator”. We can use them with decanting centrifuges to process both weighted and unweighted mud as oil-based mud. They are best suited for drilling fluids less than 15 ppg. (For heavier drilling fluids, a centrifuge is better.)

5.2 Solids Control Systems

The configuration of the above components will be in such a way as to remove the unwanted solids as efficiently as possible while ensuring that there will be no removal for the mud chemical (OBM additivesWBM chemicals) & solids (Bentonite & Barite).

Unweighted Muds

When configuring a system for an unweighted mud (Figure 22), the arrangement of various solids control components in decreasing order of removed particle size is essential to prevent clogging. Dilution is also vital for upstream of hydrocyclones to increase their separation efficiency. If passed through the solids control equipment, the mud should consist of water, well-dispersed bentonite, and very fine drill solids. It can then be diluted, treated with chemicals, and conditioned before re-circulating.

Solid Control Equipment Line Up
Solid Control Equipment for an Un-weighted Mud

Weighted Muds

Hydrocyclones cannot be used alone for weighted mud (Figure 23) since they will discard barite. We may use mud cleaner, however, to overcome this problem. As with unweighted mud, water is necessary for diluting upstream of the mud cleaner and the centrifuge. Notice that the low-density solids in the liquid phase are discarded from the centrifuge while retaining the solids (barite). We must also replace the chemicals and bentonite dumped with the liquid phase. The optimum solids content in a weighted mud is difficult to determine.

Solids Control Equipment System for a Weighted Mud
Solids Control System for a Weighted Mud



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TotalEnergies about to submit its application to drill for gas along south coast

French energy giant TotalEnergies is preparing to submit its final application for approval to drill up to five wells for oil or gas between Cape Town and Cape Agulhas. The project has met opposition from environmental groups but the company says it is part of South Africa’s transition from coal.

The scoping and environmental impact process started in May this year. If the project is approved, the drill area will span about 10 000 square kilometres, with the closest point 60km from the coast and the furthest 170km.

This application is one in a rush of offshore oil and gas applications along South Africa’s coast. This is part of a wider expansion by multinational companies into Africa, as a recent report by environmental research group Urgewald, in partnership with dozens of organisations in Africa and Europe, shows.

TotalEnergies is the biggest oil and gas developer in Africa. In this project, it holds a 40% interest in the block, and is the operator. Shell has a 40% interest and the State-owned Petroleum Oil and Gas Corporation of South Africa (PetroSA) has 20%.

A public participation process concluded last week after meetings in coastal communities, including Saldanha Bay, Hout Bay, Kleinmond and Hermanus. This formed part of the Environmental and Social Impact Assessment (ESIA). Independent assessors from SRL Consulting evaluated marine ecology impact, noise impact, socioeconomic impact, fisheries impact, climate impact, and air quality impact.

The public will be able to submit public comments until 7 December 2022. All the ESIA documents can be accessed here.

The Urgewald report points out that in 2021, the International Energy Agency (IEA) issued a roadmap, based on the Paris climate agreement of 2015, for preventing global temperatures from rising above 1.5°C. “According to this roadmap, exploration for new oil and gas reserves should cease and no further oil and gas fields should be developed beyond those that were already under way in 2021.”

Yet, the report points out, “in 48 out of 55 African nations, oil, gas and coal companies are either exploring or developing new fossil reserves, building new fossil infrastructure such as pipelines or liquefied natural gas (LNG) terminals or developing new gas- and coal-fired power plants”.

“These enormous fossil expansion plans are completely incompatible with the Paris goals and will lock African countries into an obsolete and carbon-heavy energy path,” says the Urgewald report.

But in a summary of its impact assessment report, SRL says the need to reduce carbon emissions to zero by 2050 “is balanced with the need to grow the economy and create jobs”.

The government “currently promotes the use of natural gas as part of the energy mix up to 2030 to serve as a transition to a carbon-neutral goal and provide the flexibility required to complement renewable energy sources,” says SRL.

Oil and gas exploration forms part of the South African government’s priorities as part of the Operation Phakisa’s Oceans Economy programme in order to reduce “dependence on expensive oil and gas imports”. But some environmental organisations and members of the public are saying oil and gas should not be in South Africa’s future at all and that it doesn’t have a place in the country’s commitment to a “just transition” to zero carbon emissions by 2050.

Natural gas is neither “sustainable” nor “clean”, says Janet Solomon, co-founder of environmental coalition Oceans Not Oil. In its objections to the TotalEnergies project, Oceans Not Oil says the idea that natural gas produces less carbon emissions than coal is misleading, because of methane leakage which is common during oil and gas operations.

Also, says Solomon, renewables are a faster way to meet the country’s energy needs.

Solomon said that the ESIA also didn’t consider the fishing communities and the impact the exploration project would have on their heritage. “We’ve got a large informal economy that is totally reliant on a healthy ocean, from tourism to fisheries,” she said. “The ocean is sacred to a lot of cultures in South Africa.”

Not many fishers attended the public meeting held in Hout Bay earlier this month to discuss the project. This was because they didn’t know it was taking place, says fisher Reagan James, Chief of the Katz Korana Royal House, who lives in Hout Bay and did attend the meeting.

“We make our livelihoods out of the sea. … Oil and gas is not going to benefit our community,” he said.

Greenpeace Africa spokesperson Chris Vlavianos told GroundUp the TotalEnergies project would be close to several Marine Protected Areas (MPAs). “These are lifelines for local communities”, he said, and nurseries for fish species.

Vlavianos says it is “nonsensical” to pursue oil and gas in the context of the “just transition”. “It will achieve nothing but locking us into a high emissions trajectory, with little real economic benefits to people on the ground. Often, the jobs and economic upliftment promised by these projects do not materialise.”

The summary of the environmental assessment does show that the exploration project overlaps with areas where four species are fished, but suggests that with communication and coordination with fishers, its impact can be mitigated. The report notes that many people are “directly reliant on the ocean and coast for their livelihood, and social and spiritual well-being”.

Els Vermeulen, director of the Mammal Research Institute Whale Unit at the University of Pretoria, who attended the meeting in Hermanus, said she had no major concerns about the impact of the project on whales and mammals. She said that the impact assessment had been well done, that the exploration would be short term and not during the whale migration season.

TotalEnergies spokesperson Stéphanie Dezaunay, said: “In South Africa, TotalEnergies is positioning itself as a player in the evolution of the country’s energy mix as part of the necessary transition from coal to renewable energies and gas.

“South Africa’s economy is still predominantly coal-based, accounting for 80% of its current electricity generation. Access to energy, and in particular meeting the growing demand for electricity, is a major concern in South Africa, where load shedding and power cuts have been almost a daily occurrence for nearly 15 years and where air pollution from fine particles linked to coal burning is frequent,” Dezaunay said.

She said the use of gas instead of coal would halve carbon emissions and “drastically reduce air pollution”. TotalEnergies was also working on solar and wind energy, she said.

Asked how much of the output from the project would be used in the domestic market and how much would be exported, she did not reply by the time of publication.

The Department of Mineral Resources and Energy did not respond to GroundUp’s questions.

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PGS awarded Mediterranean survey contract






















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Oilfield Technology,






PGS is awarded a 3D exploration acquisition contract in the Mediterranean by an independent energy company. Ramform Hyperion will commence acquisition in late November and expect to complete mid-January 2023.

President & CEO in PGS, Rune Olav Pedersen, said: “We continue to experience increased exploration activity in this prolific region and are very pleased with this contract award. We currently have the Ramform Hyperion working in the Southeast part of the Mediterranean and this contract secures visibility for the vessel into next year.”

PGS announces the contract award and MultiClient projects as stock exchange releases if the contract has a value of US$10 million or more, and MultiClient projects with a duration of 2 months or more.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/24112022/pgs-awarded-mediterranean-survey-contract/


 










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GeoVerra releases enhanced, customized client experiences for Timber and Road Management partners – Energy News for the Canadian Oil & Gas Industry | EnergyNow.ca


GeoVerra has revamped and enhanced its Timber Management System (TMS) software and Road Management Services (RMS) – because creating more efficient and customized experiences for clients is part of the Company’s Partnership Promise.

Since 1995, GeoVerra has been providing timber, environmental, and land management services to Alberta energy and forest industries. This is thanks to the entrepreneurially driven Forestry and Environmental team made up of Registered Professional Foresters and Forest Technologists, Professional Agrologists and Professional Biologists who have decades of project management experience. When GeoVerra first launched in June 2020 at the start of the global pandemic, they set out on a mission to be a constant partner in an ever-changing world. Two and a half years later, this still rings true and is demonstrated in the Company’s commitment to updating and enhancing existing client software and systems.

The Forestry and Environmental team is excited to provide a more user-friendly and customized experience for industry road users, industry road licensees, timber companies and Alberta’s Forest Management Agreement holders (FMA) with two system updates. GeoVerra’s Vice-President of Forestry and Environmental, Adrienne Maskalyk says, “Our team is excited to offer unmatched support and customized client experiences that allow efficient third-party use, easy budgeting, and cost recovery.”

Timber Management System (TMS):

Available through GeoVerra’s client portal (GV View), TMS is a custom web-based software that receives, tracks, and manages third party applications on behalf of forest tenure holders. It allows third-party industry users and their agents to submit applications for consent of land withdrawals from GeoVerra’s FMA clients. TMS allows GeoVerra’s Forestry and Environmental team to assess sites on behalf of the forest tenure holder for conditions such as good land management, overlapping assets, and infringement into high-value areas. This review results in a timber inventory and subsequent timber valuation assessment and invoicing, with prompt replies, and an interface where third party applicants can view the status of their applications.

So, what’s new? After 20 years of success, the old system needed an overhaul and GeoVerra is excited to lead the industry with the latest and greatest software for clients. The revamped TMS software provides:

  • User-friendly and intuitive experience
  • Easily extractable information
  • Ability to check application status
  • Efficiency and streamlined system
  • Minimized back-and-forth communications
  • Expert support

Road Management Services (RMS)

GeoVerra’s RMS is a client-friendly system that can be customized for any industry road licensee and their road users. It is a one-stop-shop for licensees looking to track assets, manage road budgets, and recover costs in a fair and efficient manner from third-party users. RMS and the team of experts behind it, allow clients to recover the costs of maintaining a safe worksite and control the liability of owning and maintaining a lease road on public lands.

This service is providing users with an enhanced experience and new system features. Here is an overview of the capabilities and unique user benefits:

Service capabilities

  • Accessible anywhere (web-based access)
  • Track industrial road assets
  • Receive and track third-party requests
  • Notify field representatives
  • Manage budgets
  • Create and track invoices
  • Support road restrictions and track users during restricted periods
  • Assesses construction and completions billing and maintenance budget and billing

Unique user benefits

  • Custom visual, user-friendly experience
  • Custom development for unique circumstances
  • Team of experts for support and administration
  • Allows clients to recover costs
  • Export data easily

GeoVerra’s TMS and RMS systems offer the customized experience and reliable support clients need to efficiently communicate and complete projects with ease. “We can ALWAYS count on GeoVerra to respond to external and internal requests timely, accurately, and in a friendly and professional manner. They listen to us when we have challenges and bring forth suggestions, then they help us see it through to completion,” says GeoVerra’s valued client partner, ANC Timber.

Interested in learning more? Email GeoVerra’s Vice-President, Forestry and Environmental, Adrienne Maskalyk to discuss how these products can meet your needs, or visit our Forestry and Environmental page for a full list of what this team offers.

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France’s First Commercial Offshore Wind Farm Fully Operational





November 23, 2022


The first wind turbine for the Saint-Nazaire offshore wind farm was installed on 12-13 April. The 80th and the final turbine was installed on September 5, 2022 .©Parc éolien en mer de Saint-Nazaire – Production CAPA Corporate

France’s first commercial-scale offshore wind farm started operating on Wednesday, adding 480 megawatts of capacity to the grid at a time when Europe is scrambling to secure energy supplies following Russia’s invasion of Ukraine. 

The Saint-Nazaire wind farm, situated off the coast of Brittany in northwestern France, consists of 80 turbines and will provide clean energy to power the equivalent of 400,000 homes annually, or 20% of the Loire-Atlantique region’s electricity consumption. 

The project is co-owned by EDF Renewables and EIH Sarl, a subsidiary of Canada’s Enbridge Inc, and CPP Investments. Enbridge, best known for its North American oil pipeline network, is a partner in three other French wind projects currently under construction. 

“(We) look forward to continuing our work together in growing France’s offshore wind sector,” Matthew Akman, Enbridge’s senior vice president of power, strategy and new energy technology, said in a news release. 

The Saint-Nazaire project took 10 years to complete. In September, French President Emmanuel Macron visited the site and vowed to cut red tape to halve the time it takes in France to get renewable energy projects off the ground. Earlier this year, Macron said he wanted France to have about 50 offshore wind farms by 2050. 

(Reuters – Reporting by Nia Williams in British Columbia; Editing by Cynthia Osterman)




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Messy Winter Weather in Pacific Northwest, Rockies Drives Stout Forward Price Gains – Natural Gas Intelligence

Huge natural gas forward basis moves continued for pipeline capacity-starved New England, but hefty premiums also shifted further west during the short Nov. 17-21 period, NGI’s Forward Look data showed. With several inches of snow falling and a stormy outlook ahead, the Rockies and Pacific Northwest posted sharply higher forward prices.

Northwest Sumas December basis picked up 79.0 cents through the period to reach $3.465, according to Forward Look. Sumas prompt-month fixed prices hit $10.239, while January jumped 89.0 cents to $10.093. The balance of winter (December-March) picked up 83.0 cents to average $8.742/MMBtu, and the summer strip (April-October) moved up 22.0 cents to $4.410.

Similarly steep gains were seen at Opal, where December basis tacked on 67.0 cents to reach $2.320, Forward Look data showed. This represented a fixed price of $9.096 for the prompt month. Further out the forward curve, the January contract climbed 89.0 cents to reach $9.263 and the balance of winter added 82.0 cents to average $8.262. The summer strip, meanwhile, ticked up only 13.0 cents to average $4.560.

[LNG Offline: Get the latest on the Freeport LNG restart with NGI’s Hub & Flow podcast. Listen now.]

The National Weather Service (NWS) said a shortwave trough in the eastern Pacific was expected to arrive in the Pacific Northwest on Tuesday. It could bring low-elevation rain and mountain snow to the region before spreading over the Northern Rockies. 

The system is forecast to then shift over the Northern/Central Plains ahead of Thanksgiving. Snowfall was expected primarily over the northern Cascades, where up to one foot of snow and isolated higher amounts were expected, according to NWS. Freezing rain and some sleet also were likely to accumulate over portions of east-central Washington.

By Friday, the next storm is likely to be knocking on the doorstep of the Northwest, according to AccuWeather. The forecaster said this would be the start of a much stormier and colder pattern overall for the West heading into early next week.

Pipelines in the region already were being impacted by the frigid weather. Kern River Gas Transmission reported low linepack this week, with deliveries limited beginning over the weekend and remaining through the week so far.

Criterion Research LLC noted that Canadian imports into the Pacific Northwest have ratcheted up amid the bitter conditions, with regional demand remaining high even as overnight temperatures trended on the warm side. Storage facilities in the region also have boosted withdrawals.

Meanwhile, inventories at Pacific Gas & Electric Corp. (PG&E) are low. Maintenance along the PG&E pipeline, which began Monday, is set to continue through late November, adding to constraints, Criterion said. PG&E declared an operational flow order amid the tight conditions. Storage withdrawals extended into Southern California as well.

“PG&E’s storage was in especially bad shape as its net inventory dropped to only 3.8 Bcf,” Criterion Research’s James Bevan, director of research, said. “To put this in perspective, aside from 2019 (and this year), inventories have only been lower once, and that was 2018’s end of season. Not a promising look.”

Henry Hub Volatility

With a stretch of widespread chilly air finally showing signs of easing, Henry Hub forward prices continued to post mostly gains during the short trading period.

There are lots of potential reasons prices have risen close to $7.00 again. Some traders are pointing to the potential for a railroad strike that could limit coal deliveries and prop up gas demand. The possibility of cold weather returning in December also provided momentum for bulls, as has the typical volatility seen ahead of contract expiration.

NatGasWeather said the weather data are mixed. The Global Forecast System trended a little warmer for the next five days, a few heating degree days colder for Nov. 27-Dec. 2 and warmer again for Dec. 3-7.

There were major changes in the latest data related to the timing of swings in national demand, with demand easing for the next week as temperatures are forecast to climb into the 60s and 70s over the southern United States and into 40s and 50s over the northern states.

“Frigid air remains on track to arrive over Northwest, Mountain West and Northern Plains Nov. 29-Dec. 7 with lows of minus 10s to 30s for regionally strong demand,” NatGasWeather said. “However, recent weather data wasn’t as aggressive advancing cold air eastward Dec. 2-7, thereby keeping the southern and eastern U.S. mild most days with highs of 40s to 70s.”

Given the recent cold that’s blanketed much of the Lower 48, market observers expected a considerable decline in storage inventories. After all but erasing deficits to historical levels, storage deficits could widen over the next two weeks.

At noon ET on Wednesday, the Energy Information Administration (EIA) is set to publish its weekly inventory report. Estimates ahead of the report were wide ranging, from a draw as light as 60 Bcf to one as steep as 111 Bcf.

A Bloomberg survey of nine analysts had a range of draws from 74 Bcf to 111 Bcf, with a median pull of 86 Bcf. Estimates submitted to a Wall Street Journal poll also were within that wider range and averaged an 89 Bcf withdrawal. NGI estimated a lower-end draw of 65 Bcf.

EBW Analytics Group LLC said the cold December now favored by independent weather forecaster DTN could rapidly deplete the storage cushion and reintroduce upside price risks. These risks come into play particularly if Freeport LNG hits its updated guidance. The liquefied natural gas export facility said last week it is targeting mid-December for initial operations.

“Cold may have to prove enduring to sustain Nymex risk premiums on a seasonal basis, but renewed upside for the 30-45 day period remains possible,” EBW senior analyst Eli Rubin said.

The December Nymex gas futures contract inched higher Tuesday to settle at $6.779, up slightly from Monday’s close of $6.776.

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Equinor ‘still working hard’ on sanctioning Rosebank oilfield despite windfall tax


Norway’s Equinor said it is “still working hard” on sanctioning the Rosebank oilfield in the first quarter of next year – despite the latest windfall tax “uncertainty”.

In a statement to Energy Voice, the firm said it is “evaluating the impact of the EPL (Energy Profits Levy) on our projects” but said work is still progressing on the West of Shetland development.

The firm said that uncertainty is never helpful for “large energy projects” in the long-term, taking a swipe at the energy profits levy (EPL) changes last week from the UK Government.

It said: “Uncertainty makes it harder to take investment decisions, and for UK especially the uncertainty around the longevity of the EPL did not help investor confidence. We are evaluating the impact of the EPL on our projects.

“As for Rosebank, we are still working hard towards FID in Q1 next year.”

Last week, chancellor Jeremy Hunt unveiled a 10% hike in the levy– taking the headline tax rate for the industry to 75%.

However, a 91% investment allowance for new projects – and an effective subsidy for oil and gas electrification schemes – could actually improve economics for certain schemes.

The statement comes hours after Shell said it, too, was reviewing its planned £25bn investment in the UK energy system in the wake of the EPL announcement.

Earlier today, Offshore Energies UK CEO Deirdre Michie said the tax puts £200bn of planned energy investments at risk.

Equinor said Rosebank is “estimated to bring £26.8 billion to the UK through tax payments and investments into the UK economy, and will strengthen energy security with oil and gas that is produced with lower carbon than imports, while creating value and jobs in the UK”.

It comes as the Scottish Government voiced opposition to the West of Shetland oilfield earlier today – estimated by partner Ithaca Energy to hold some 300 million barrels of recoverable oil.

In parliament today, environment minister Mhairi McAllan was asked by Scottish Greens MSP Mark Ruskell whether the field should go ahead – to which she expressed opposition to the new oil and gas licences being awarded by the UK Government.

Watch the exchange below:

 

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The big new Exxon Mobil climate change deal that got an assist from Joe Biden


Could it be that Big Oil’s next big thing got a big assist from Joe Biden?

Maybe, if carbon capture and storage is indeed as big a deal as ExxonMobil’s first-of-its-kind deal to extract, transport and store carbon from other companies’ factories implies.

The deal, announced last month, calls for ExxonMobil to capture carbon emitted by CF Industries‘ ammonia factory in Donaldsonville, La., and transport it to underground storage using pipelines owned by Enlink Midstream. Set to start up in 2025, the deal is meant to herald a new stage in dealing with carbon produced by manufacturers, and is the latest step in ExxonMobil’s often-tense dialogue with investors who want oil companies to slash emissions.

The Inflation Reduction Act, passed in August, may determine whether deals like Exxon’s become a trend. The law expands tax credits for capturing carbon from industrial uses in a bid to offset the high up-front costs of plans to capture carbon from places like CF’s plant, as other tax credits in the law lower costs of renewable power and electric cars. 

The Inflation Reduction Act and Big Oil

The law may help oil companies like ExxonMobil build profitable businesses to replace some of the revenue and profit they’ll lose as EVs proliferate. Though the company isn’t sharing financial projections, it has committed to investing $15 billion in CCS by 2027 and ExxonMobil Low-Carbon Solutions president Dan Ammann says it may invest more.

“We see a big business opportunity here,” Ammann told CNBC’s David Faber. “We’re seeing interest from companies across a whole range of industries, a whole range of sectors, a whole range of geographies.”

The deal calls for ExxonMobil to capture and remove 2 million metric tons of carbon dioxide yearly from CF’s factory, equivalent to replacing 700,000 gasoline-powered vehicles with electric versions. 

Each company involved is pursuing its own version of the low-carbon industrial economy. CF wants to produce more carbon-free blue ammonia, a process that often involves extracting ammonia’s components from carbon-laden fossil fuels. Enlink hopes to become a kind of railroad for captured CO2 emissions, calling itself the would-be “CO2 transportation provider of choice” for an industrial corridor laden with refineries and chemical plants. 

An industrial facility on the Houston Ship Channel where Exxon Mobil is proposing a carbon capture and sequestration network. Between this industry-wide plan and its first deal for another company’s CCS needs, ExxonMobil is hoping that its low-carbon business quickly scales to a legitimate source of revenue and profit.

CNBC

Exxon itself wants to develop carbon capture as a new business, Amman said, pointing to a “very big backlog of similar projects,” part of the company’s pledge to remove as much carbon from the atmosphere as Exxon itself emits by 2050.  

“We want oil companies to be active participants in carbon reduction,” said Julio Friedmann, a deputy assistant energy secretary under President Obama and chief scientist at Carbon Direct in New York. “It’s my expectation that this can become a flagship project.”

The key to the sudden flurry of activity is the Inflation Reduction Act.

“It’s a really good example of the intersection of good policy coming together with business and the innovation that can happen on the business side to tackle the big problem of emissions and the big problem of climate change,” Ammann said. “The interest we are seeing, the backlog, are all confirming this is starting to move and starting to move quickly.”

The law increased an existing tax credit for carbon capture to $85 a ton from $45, Goldman said, which will save the Exxon/CF/Enlink project as much as $80 million a year. Credits for captured carbon used underground to enhance production of more fossil fuels are lower, at $60 per ton.

“Carbon capture is a big boys’ game,” said Peter McNally, global sector lead for industrial, materials and energy research at consulting firm Third Bridge. “These are billion-dollar projects. It’s big companies capturing large amounts of carbon. And big oil and gas companies are where the expertise is.” 

Goldman Sachs, and environmentalists, are skeptical

A Goldman Sachs team led by analyst Brian Singer called the law “transformative” for climate reduction technologies including battery storage and clean hydrogen. But its analysis is less bullish when it comes to the impact on carbon capture projects like Exxon’s, with Singer expecting more modest gains as the law accelerates development in longer-term projects. To speed up investment more, companies must build CCS systems at greater scale and invent more efficient carbon-extraction chemistry, the Goldman team said.

Industrial uses are the third-largest source of greenhouse gas emissions in the U.S., according to the EPA. That’s narrowly behind both electricity production and transportation. Emissions reduction in industrial uses is considered more expensive and difficult than in either power generation or car and truck transport. Industry is the focus for CCS because utilities and vehicle makers are looking first to other technologies to cut emissions.

Almost 20 percent of U.S. electricity last year came from renewable sources that replace coal and natural gas and another 19 percent came from carbon-free nuclear power, according to government data. Renewables’ share is rising rapidly in 2022, according to interim Energy Department reports, and the IRA also expands tax credits for wind and solar power. Most airlines plan to reduce their carbon footprint by switching to biofuels over the next decade.

More oil and chemical companies seem likely to get on the carbon capture bandwagon first. In May, British oil giant BP and petrochemical maker Linde announced a plan to capture 15 million tons of carbon annually at Linde’s plants in Greater Houston. Linde wants to expand its sales of low-carbon hydrogen, which is usually made by mixing natural gas with steam and a chemical catalyst. In March, Oxy announced a deal with a unit of timber producer Weyerhauser. Oxy won the rights to store carbon underneath 30,000 acres of Weyerhauser’s forest land, even as it continues to grow trees on the surface, with both companies prepared to expand to other sites over time.

Still, environmentalists remain skeptical of CCS.

Tax credits may cut the cost of CCS to companies, but taxpayers still foot the bill for what remains a “boondoggle,” said Carroll Muffett, CEO of the Center for International Environmental Law in Washington. The biggest part of industrial emissions comes from the electricity that factories use, and factory owners should reduce that part of their carbon footprint with renewable power as a top priority, he said.

“It makes no economic sense at the highest levels, and the IRA doesn’t change that,” Muffett said. “It just changes who takes the risk.” 

Friedman countered by saying economies of scale and technical innovations will trim costs, and that CCS can reduce carbon emissions by as much as 10 percent over time.

“It’s a rather robust number,” Friedmann said. “And it’s about things you can’t easily address any other way.” 



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