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Transition is away from emissions, not oil: Alberta

  • Market: Crude oil
  • 18/09/23

The energy rich Canadian province of Alberta is strengthening international alliances during a conference on its home soil this week, but remains at odds with its own federal government over the energy transition.

"We're transitioning away from emissions, we're not transitioning away from oil and gas," Alberta premier Danielle Smith said today at the World Petroleum Congress in Calgary, Alberta.

Alberta's largest city is hosting delegates from around the world with the conference's focus on the energy transition. Smith's province — Canada's largest petroleum producing region — will be front and centre in that transition alongside other major producing countries. But that transition must consider reliability and affordability, said Smith.

"You have to build out the new energy system at the same time as maintaining the existing energy system so you have that continuity," said Smith, who's views on energy align with Saudi Arabia's energy minister Prince Abdulaziz bin Salman, who spoke earlier in the day.

"I think he's very pragmatic," said Smith of Prince Abdulaziz's approach to the energy transition, while noting how progressive his country has been with what it can do with captured carbon dioxide (CO2). "I feel like we're going to be in a bit of a technological and innovation race with Saudi Arabia" and more information sharing will ensue as both aim for a carbon neutral target.

Smith and Prince Abdulaziz also found common ground in their opposition to the IEA's recent oil demand forecast, which predicts peak oil, natural gas and coal by the end of this decade. It projects oil demand will be 25mn b/d by 2050, roughly one quarter of what it is today.

Promoting the IEA's forecast was Canada's minister of energy and natural resources Jonathan Wilkinson the previous evening at the same conference, forcing Smith to counter both the minister's message and the IEA's "ludicrous" forecast.

"That was a bit of a slap in the face, let's be frank about that," said Smith. An international energy conference was not the place for Wilkinson to make that speech, Smith continued, at a time when she is trying to make Canada an "investment magnet."

"This is not an industry that's winding down," said Smith. "It's an industry that's transitioning away from emissions, and the fact that we saw other speakers talking about it in the same terms suggest to me that it was minister Wilkinson who was offside."

"We're not going to phase out production of oil and natural gas, we're just going to change the way in which we use it," she said. Hydrogen from natural gas will likely become an increasingly important fuel in the province and carbon capture, utilization and storage (CCUS) will play a role in that development, Smith said.

Wilkinson in his 17 September speech said that oil and gas after 2050 would primarily be used in applications not requiring combustion, such as petrochemicals, asphalt, lubricants, solvents, carbon graphite and waxes.

While CCUS proponents, many of them oil sands companies, await regulatory clarity and government incentives, Smith said her government plans to unveil a credit for industry pursuing this technology when she travels to Dubai for Cop 28 on 30 November. "We're hoping that the federal government will be able to match us so that we can make a joint announcement together in Dubai."


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17/07/24

TotalEnergies agrees to sell stake in Nigeria SPDC JV

TotalEnergies agrees to sell stake in Nigeria SPDC JV

London, 17 July (Argus) — TotalEnergies has agreed to sell its 10pc stake in Nigeria's SPDC onshore oil and gas joint venture to Africa-focused independent Chappal Energies for $860mn. Other partners in the SPDC joint venture comprise operator Shell with a 30pc interest, state-owned NNPC with 55pc and Italy's Eni with 5pc. Shell agreed to sell its stake in the joint venture to a consortium of five companies for up to $2.4bn in January. That deal remains subject to a due diligence process by regulators. The joint venture's assets include around 50 producing oil and gas fields across 18 licences. TotalEnergies will transfer its 10pc interest and all its rights and obligations in 15 of the licences to Chappal. These licences mainly produce oil and netted TotalEnergies around 14,000 b/d of oil equivalent last year. The other three licences — OML 23, OML 28 and OML 77 — mainly produce gas and account for 40pc of supply to the Nigeria LNG (NLNG) joint venture, in which TotalEnergies has a 15pc stake. TotalEnergies will also transfer its 10pc stake in these licences to Chappal but it will retain "full economic interest" in them, it said. The divestment "allows us to focus our onshore Nigeria presence solely on the integrated gas value chain and is designed to ensure the continuity of feed gas supply to Nigeria LNG in the future", said TotalEnergies' exploration and production president Nicolas Terraz. Chappal specialises in taking over and operating mature fields. It agreed a deal in November last year to acquire Norwegian firm Equinor's stake in Nigeria's OML 128 block, a transaction that was finally approved earlier this month . The company said last month that it is contemplating issuing a bond to raise up to $450mn to help it finance acquisitions. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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China’s CNOOC gets record gas results from Bohai well


17/07/24
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17/07/24

China’s CNOOC gets record gas results from Bohai well

Singapore, 17 July (Argus) — Chinese state-controlled oil firm CNOOC has achieved what it described as record gas production results from a test well at its Longkou 7-1 (LK7-1) oil and gas field in the eastern region of China's Bohai Sea. The LK7-1-1 exploration well could produce almost 1mn m³/d of natural gas and about 210m³/d (1,320 b/d) of crude oil, the company said on 15 July. The former set a record for natural gas tested productivity in the Bohai Sea, according to CNOOC. China produced 123.6bn m³ of natural gas in January-June, up by 6pc from a year earlier, according to the National Bureau of Statistics of China (NBS). The country produced 4.15mn b/d of crude in 2023, NBS data showed. The potential output adds to CNOOC's reserves and production in the Bohai Sea, which stood at 1.97mn b/d of oil equivalent (boe/d) and 599,847 boe/d as of the end of 2023, according to CNOOC. The region represents 29pc of the company's total reserves and approximately 32pc of its production. CNOOC, along with other state-controlled firms like PetroChina and Sinopec, dominates China's domestic oil and gas production. CNOOC has also separately started production at an oilfield offshore China. The Wushi 23-5 oilfield development project — located in the Beibu Gulf of the South China Sea — is expected to produce light crude, and achieve peak production of 18,100 boe/d in 2026. "The project will realise full-process recovery and utilisation of the associated gas through integrated natural gas treatment," the company said on 1 July. CNOOC in November 2023 started production at its Bozhong 19-6 condensate gas field in the Bohai bay. The gas field is currently producing an estimated 37,500 boe/d, exceeding an initial expectation of peak production of about 37,000 boe/d, the company said on 11 July. CNOOC in March 2023 discovered the Bozhong 26-6 field with over 100mn t of oil equivalent reserves, also in the Bohai Sea. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Tanker owner denies Houthi attack in Med


16/07/24
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16/07/24

Tanker owner denies Houthi attack in Med

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New Libyan firm starts exporting crude


16/07/24
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16/07/24

New Libyan firm starts exporting crude

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Trump taps Vance as running mate for 2024


15/07/24
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15/07/24

Trump taps Vance as running mate for 2024

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