Global Energy Wrap, Aug 14-20
Here's a summary of last week’s top global energy news that have the potential to impact global energy supply and demand.
Africa/ Oil
Carlyle Group will sell its Gabon-focused oil and gas company, Assala Energy, to French producer Maurel & Prom for $730 million. Carlyle International Energy Partners (CIEP), the fund's non-U.S. energy arm, first invested in Assala in 2017 when it acquired Shell's aging operations in Gabon for $628 million.
Brazil/ Oil
In August, Brazil is set to increase purchases of Russian petroleum products by 25% over July, with imports set to reach record levels this month, helping Russia overtake the U.S. as Brazil’s top foreign fuel supplier, said energy analytics firm Kpler. The discount on Russian diesel to Brazil is estimated at $10 to $15 a barrel.
EU/ Cleantech
EU cleantech startups have attracted less than half the investment as their U.S. counterparts since the $390 billion package of climate subsidies and tax credits was passed a year ago, (Inflation Reduction Act). The EU spent a total of $8.7 billion on startups in areas such as carbon storage and EVs; while $21.7 billion was committed to such projects in the U.S.
Indonesia/ Energy transition
Citing insufficient data, Indonesia has pushed back until later this year its plans to launch investments from a fund of $20 billion pledged by rich countries and global lenders to speed the energy transition. The initiative aims to help Indonesia close coal power plants, adopt green sources of power and reach peak emissions in 2030.
Ireland/ Critical raw materials
Dublin-based TechMet raised $200 million in equity that will go towards investment in mining for nickel, lithium and other metals that will help the West counter China’s dominance of critical minerals supplies for clean energy technologies and infrastructure.
Offshore wind power
Global targets to increase wind power installations five-fold annually by 2030 are unrealistic and would require $27 billion in investment in the supply chain by 2026, Wood Mackenzie said, adding that annual capacity is more likely to increase by 30 GW a year by 2030, well below the 80 GW per year target that’s been set by the global community.
Saudi Arabia/ Oil exports
Saudi Arabia's crude oil exports fell for a third straight month in June to their lowest since September 2021, as big Asian buyers favor cheaper Russian oil. Saudi crude exports totaled 6.8 mbpd in June, down about 1.8% from 6.93 mbpd in May.
Venezuela/ Oil
Venezuela opposes a court-ordered auction of shares in the parent of Citgo Petroleum to pay creditors seeking $10 billion from expropriations and debt defaults. Some 20 creditors with arbitration awards or lawsuits against Venezuela’s state oil company PDVSA asked a Delaware court to register their cases so they can join the October auction.
U.S./ Carbon capture
Occidental Petroleum will buy startup Carbon Engineering for $1.1 billion, hoping to profit from its CCS technology at the Stratos project in Texas, which will be the world’s largest direct air capture plant by 2025.
U.S./ Oil and gas pipelines
Pipeline operator Energy Transfer will buy rival Crestwood Equity Partners for about $7.1 billion. This will give Energy Transfer a larger share of energy transport in three top shale basins. This year, consolidation in the oil and gas pipeline sector has accelerated as U.S. production grows.