Cop 27: UAE says will supply oil, gas as long as needed
UAE President Mohammed bin Zayed al-Nahyan said today his country will continue to supply oil and gas "for as long as the world needs" it.
Speaking at the opening of the Cop 27 UN climate conference he said the UAE is considered as a responsible supplier of energy, and that "it will continue to play this role for as long as the world needs oil and gas."
The president's comment came after UN secretary-general Antonio Guterres said the war in Ukraine has "exposed the profound risks of our fossil fuel addiction" and called for an end to dependence on fossil fuels and the building of coal plants.
One of the largest holders of spare reserves within the Opec+ coalition, the UAE in 2018 set sights on raising its crude capacity from 3.5mn b/d to 5mn b/d by 2030. A source familiar with the matter indicates Abu Dhabi is now considering options to accelerate these plans. Argus estimates UAE production rose by 10,000 b/d on the month to 3.19mn b/d in September.
The UAE will host the Cop 28 UN climate summit next year, and the al-Nahyan reiterated the country was the first in the Middle East to set a target of becoming a net zero carbon economy by 2050. He also said the US and UAE have signed an agreement targeting $100bn of investments in energy transition projects. He stressed that oil and gas in the UAE is one of the least carbon intensive in the world, and that they will focus on lowering carbon emissions from this sector.
Opec+ officials have repeatedly championed a decarbonisation approach that employs fossil fuel resources until such a time that they can be fully substituted by clean energy supplies. The group has also repeatedly said consumers should not face pressure to relinquish hydrocarbon fuels if green options are unaffordable.
Coal, and fossil fuels in general, were directly targeted for the first time in a Cop text last year. But the global energy crisis has made the issue of gas as a transition fuel a flashpoint, with some African countries likely to ask for financial support to develop their resources and economies.
Nigeria environment minister Mohammed Abdullahi told Argus on the sidelines of the summit that gas is a transition fuel, and that developed nations cannot tell Africa not to develop their resources.
"The [US president Joe] Biden administration made a lot of investments in oil and gas in the last three years," he said.
Former US vice president Al Gore told the Cop 27 conference that global leaders now have a credibility problem, and said the "dash for gas in Africa is a dash for gas to be sent to wealthy countries".
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Stakes look low in Washington’s Venezuela dilemma
Stakes look low in Washington’s Venezuela dilemma
Washington, 15 April (Argus) — The US administration's decision to temporarily lift oil sanctions against Venezuela in October last year relied on the premise that economic incentives would prompt Caracas to hold a competitive presidential election. But either the theory was wrong or the incentives were insufficient to encourage Venezuelan president Nicolas Maduro to consider exiting the scene. The US wants Venezuela to allow credible opposition candidates to run in the latter's presidential elections on 28 July, and set this as a condition for extending sanctions relief beyond a looming 18 April deadline. But the Maduro government has prevented key opposition leader Maria Corina Machado from running. The main non-government affiliated candidate allowed to run in the election, governor of the oil-rich Zulia state Manuel Rosales, is viewed with scepticism in Washington. An election in which "only those opposition candidates with whom Maduro and his representatives feel comfortable" can participate will not be considered competitive enough for the US sanctions relief to continue, the US State Department says. Colombian president Gustavo Petro appeared to be mounting a last-ditch effort this week to mediate between Maduro and the opposition. Petro also wants to make it easier for Colombian oil firm Ecopetrol to expand business with its neighbor, including putative plans for gas imports from Venezuela. But doing so requires a massive change of US policy. "The US government looks a little more interested in alleviating sanctions than the sanctioned party," Caracas-based economist Tamara Herrera says. "Barring a grand gesture" by the Maduro government, the US is likely to reimpose sanctions, but perhaps grant specific carve-outs more freely, she says. Maduro's reneging on last year's accord with the opposition over the competitive election comes as no surprise to Washington-based critics of his government. "We've done everything we can to give economic inducement to the regime to behave differently," think-tank Center for Strategic and International Studies' Americas programme director Ryan Berg says, estimating the benefit to Caracas from sanctions relief at $6bn-10bn since October. "I just don't see that they've really given anything" in return. Leading US senators from both parties agree, calling on the White House this week to reimpose the sanctions after 18 April. Do the sanctioned crude shuffle But the six-month period during which Venezuela's state-run PdV was allowed to sell oil freely to any buyer and to invite foreign investment has hardly provided the economic benefits expected in October. India has emerged as a major new destination for Venezuelan crude, importing 152,000 b/d in March. The sanctions relief has not significantly affected US-bound Venezuelan volumes, which averaged 133,000 b/d last year. Even before the October waiver, Washington had allowed Chevron to lift oil from its joint venture with PdV, solely into the US. That exception for Chevron will remain in place. Undoing the US sanctions regime against Venezuela has provided unintended market incentives. Chinese imports of Venezuelan Merey, often labeled as Malaysian diluted bitumen, have been lower since October. Independent refiners in Shandong, which benefited from wide discounts on the sanctioned Venezuelan crude, cut back imports to just a fraction of pre-relief levels. By contrast, state-controlled PetroChina was able to resume imports. The possible reimposition of US sanctions is reflected in the widening Merey discount to Brent ( see chart ). Venezuela's rekindling of a border dispute with Guyana is also irking many countries that might come to its defence, and US elections in November could make the prospects of a US deal with Maduro even less likely. Hopes for a renaissance in oil or democracy in Venezuela seem ever further away. By Haik Gugarats Chinese imports of Venezuelan crude Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore consortium to form emissions registry
Singapore consortium to form emissions registry
Singapore, 15 April (Argus) — A consortium of firms led by the Singapore Business Federation (SBF) will set up a registry to help local businesses establish more accurate emission inventories, the SBF announced today. The SBP is partnering the Agency for Science, Technology and Research, consultancy PwC and telecommunications group Singtel to set up the Singapore Emission Factors Registry (SEFR). The first phase of the registry is targeted to be ready by the end of this year. The SEFR will consist of an emission factors (EFs) database that is reflective of local conditions, according to the SBF. The EFs will allow for the conversion of business activities into greenhouse gas emissions. More details on how this conversion will be carried out were not provided, although the SEFR "supports existing reporting tools and solutions in the ecosystem that help enterprises automate their sustainability reporting process," said the SBF. Singapore businesses are currently using EFs from international sources such as the US Environmental Protection Agency and UK Department for Environment, Food and Rural Affairs in their carbon emissions reporting, especially for scope 3 emissions. The "localised" EFs will be developed in phases, and the initial base load for the first phase will be made up of data from various government agencies, in relation to transportation, water, general waste and energy. EFs for additional categories will be developed and released based on demand and after industry consultations. Three-quarters of local businesses have already implemented or plan to implement environmental, social and governance (EGS) practices into their operations, according to a survey by the SBF. But 60pc of businesses stated they require support in areas of funding, greater clarity on EGS reporting metrics and access to ESG tracking and measurement technology. "With the development of localised EFs, local businesses will be able to report their emissions more accurately," said SBF chief executive Kok Ping Soon. "The SEFR is part of a broader suite of programmes that SBF will progressively be rolling out to support businesses in their net zero transition," he added. This is the latest in a series of moves Singapore has taken to create a carbon market as part of its decarbonisation efforts. The country in June last year launched a spot trading platform for carbon credits . It subsequently in December published a list of eligible international carbon credits under the International Carbon Credit framework, which companies can use to offset up to 5pc of their carbon tax liability , in lieu of paying the carbon tax. Singapore's carbon tax has been set at S$25/t ($18/t) for 2024-25 and will subsequently be raised to S$45/t in 2026-27. The tax will be reviewed with a long-term view of increasing it to S$50-80/t by 2030. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Crude futures shrug off Middle East turmoil
Crude futures shrug off Middle East turmoil
Singapore, 15 April (Argus) — Crude oil futures were largely unmoved in early trading in Asia on 15 April, as the market watched for an indication of how Israel would respond to the weekend's unprecedented attack by Iran. Front-month June Brent crude futures rose by 0.7pc to a high of $91.05/bl soon after markets opened, but then fell back to trade 0.2pc lower at $90.26/bl at 10.40am Singapore time (02:40 GMT). May Nymex WTI was down by 0.3pc at $85.37/bl. The threat of an Iranian attack on Israel had sent prices higher last week. Iran fired hundreds of drones and missiles against Israel on the evening of 13 April, ushering in a new phase in a six-month conflict that is threatening regional escalation. Almost all were intercepted before they reached Israeli airspace, according to the Israel Defence Forces. Iran, the US and regional powers appear to want to avoid any further increase in hostilities. Tehran's foreign minister Hossein Amir-Abdollahian said Iran considers its operation to have ended. And the US is urging Israel to claim victory for its defence, in an apparent effort to discourage Israeli prime minister Benjamin Netanyahu's government from feeling compelled to retaliate. Israel's response is unclear. The country's war cabinet is meeting to discuss its next steps. Regional shipping also continues to face the risk of disruption. On 13 April, Iranian naval vessels seized the Portuguese flagged, British-owned MSC Aries container ship transiting through the Gulf of Oman. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
G7 leaders to meet over Iran's attack on Israel
G7 leaders to meet over Iran's attack on Israel
Dubai, 14 April (Argus) — Leaders of the G7 will meet today, 14 April, to co-ordinate a diplomatic response to Iran's overnight air attack on Israel, which ushered a new phase in a six-month conflict that is threatening regional escalation. G7 presidency Italy "has organized a conference at leaders' level for the afternoon of today," Italian prime minister Giorgia Meloni said on X, formerly Twitter. US President Joe Biden has pledged a co-ordinated G7 diplomatic response and condemned the Iranian assault. Iran fired hundreds of drones and missiles against Israel on the evening of 13 April, according to the country's state-owned news agency Irna. Almost all were intercepted before they reached Israeli airspace and there were no fatalities reported by Israel. One civilian was injured and an air force base in southern Israel was lightly damaged, according to the Israel Defence Forces (IDF). The Iranian attack came in response to a suspected Israeli air strike on the vicinity of Iran's embassy compound in Damascus, Syria, on 1 April. Tehran's foreign minster Hossein Amir-Abdollahian said Iran considers this to be the end of its operation. But energy markets, which have been supported in recent weeks by a geopolitical risk premium, will face a week of uncertainty about whether Israel will retaliate. The front-month June Ice Brent contract was trading at $90.45/bl before markets closed for the weekend, and hit a more-than five month high of $92.18/bl on Friday, 12 April. Israeli officials said the attack was "a severe and dangerous escalation" from Tehran. Israel's war cabinet is meeting today to discuss a response. "We will build a regional coalition and exact the price from Iran in the fashion and timing that is right for us," said cabinet minister Benny Gantz. The US is urging Israel to claim victory for its defence, in an apparent effort to discourage Israeli prime minister Benjamin Netanyahu's government from feeling compelled to retaliate. While noting that Israel ultimately will make the decision as to how to respond, White House national security communications co-ordinator John Kirby, in a televised interview today, hailed what he called Israel's "incredible military achievement" in defending itself against the attack. Very little managed to penetrate the defensive shield, "and the damage was extraordinarily light," he said. The US military played a role in helping to defend against the attack, bringing down "several dozens of drones and missiles," Kirby said. UK prime minister Rishi Sunak said the Royal Air Force shot down "a number of Iranian attack drones". Israel's western allies are urging it to show restraint as they try to prevent a wider conflict in the Middle East, which could directly affect oil producers and send energy prices soaring. President Biden is especially keen to avoid such a scenario in an election year. By Bachar Halabi and David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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