Friday, July 19, 2019

Radical de-carbonisation implications for shipping - study



The de-carbonisation of global energy supplies to address climate change will have radical implications for the global shipping industry, said a new report.
 
If the Paris Agreement goals are met, the fossil fuel cargo base that shipping serves would undergo an aggressive and prolonged transformation, analyst MSI said.
 
The consequences for shipping markets of a major shift in energy consumption away from hydrocarbons and towards renewables and biofuels is the subject of a report prepared by MSI on behalf of the European Climate Foundation.
 
“Whilst some sectors of the shipping industry, such as containerships, would be virtually unscathed, those for which hydrocarbons comprise a significant proportion of - or all - the cargo mix would undergo decades of falling demand,” said MSI Director, Stuart Nicoll. “The results, detailed in the report, would be multi-decade declines in fleet capacity, earnings and asset prices across the affected sectors. Shipowners would be forced to slash new ordering and scrap uneconomic vessels.”
 
MSI’s shipping market modelling systems enable analysis of how changes in energy demand will affect inter-regional commodity trade flows, and the associated shift in required shipping capacity, industry earnings and asset prices, across all segments of the shipping industry.
 
The analysis projects two demand frameworks – ‘Reduction’ and ‘Reference’ – designed to provide broad narrative and structure to long-term global energy demand.
 
Global energy consumption in the ‘Reduction’ scenario is largely based on projections made for pathways consistent with limiting warming to 1.5 deg C above pre-industrial levels, as described in the IPCC SR1.5 report.
 
The ‘Reference’ scenario is designed to provide a comparison to ‘Reduction’. Although it describes a more limited change in the global energy consumption profile, ‘Reference’ still incorporates substantial restraints on future energy consumption.
 
The more extreme’ Reduction’ scenario is the focus of the report, under which fossil fuel demand sees radical decline over the next three decades. By 2050 world coal consumption falls by 80%, oil consumption halves, and gas demand drops by about a quarter.
 
“The energy transition from fossil fuels to renewables means that investors in shipping and ports are exposed to substantial financial risks, which have not been adequately assessed before,” co-author Tim Smith, MSI’s Director, Oil and Tanker Markets, added. “Those in the industry who believe that that global commitments to cut carbon emissions will be achieved need to prepare for radical transition that this implies. Vessel selection will be critical, and divestment from sectors with the greatest exposure to fossil fuels may prove the only way to profitably navigate the changing landscape.”
 
This report will be further analysed in the July/August issue of ‘Tanker Operator Magazine’.

Thursday, July 18, 2019

African Crude For This Ill-Fated Refinery Heads To Canada



Crude oil on its way from Africa to the United States, destined for an ill-fated refinery that plans to close its doors permanently in Pennsylvania, is being diverted to other places, according to Reuters sources.

The 335,000-barrel-per-day , which will close permanently on Monday, used 43.1 million barrels of African oil last year. Only the Phillips 66 refinery in New Jersey imported more oil from Africa.

The oil currently being diverted is a one-million-barrel shipment of Nigerian crude oil, which is now headed into storage in Canada, Reuters said, citing Kpler, which also shows a million barrels of crude idling in nearby waters.

But even more crude has been diverted away from the refinery and to new buyers, according to Refinitiv Eikon data, and at a “heavy” discount, Reuters added.

The United States purchased 4.1 million barrels of Nigerian crude oil in April, the last month for which the Energy Information Administration published data.

Pennsylvania decided not to pour money into saving the largest refinery on the Eastern seaboard after a couple of explosions in June took it offline. Pennsylvania’s decision to let the refinery wither on the vine was multifaceted, citing not just safety concerns but “competitive challenges against more modern refineries that would be extremely costly and difficult to overcome,” a spokesman for Pennsylvania’s governor said at the time.

The 1300-acre, 145-year-old refinery is a near dinosaur, went through bankruptcy proceedings in 2018, citing its financial failings due to the federal Renewable Fuels Standard Policy and a lack of access to cheap domestic crude oil, among other factors.

The closure of the Pennsylvania refinery will cut US refining capacity by 2% to 18.46 million bpd, according to Reuters calculations of government data.

By Julianne Geiger for Oilprice.com

Iran Says Its Revolutionary Guard Seized Foreign Oil Tanker In Strait Of Hormuz

Iran says its military seized a foreign oil tanker in the Strait of Hormuz. In this 2018 photo, a boat from the Iranian Revolutionary Guard's naval force is seen in the Persian Gulf, near the strait.
Jon Gambrell/AP 
 
 
Iran says that its Islamic Revolutionary Guards Corps Navy has seized a foreign-flagged oil tanker in the Persian Gulf, alleging that the ship was smuggling 1 million liters (264,000 gallons) of fuel. Iranian state news outlets report that the ship had a crew of 12 aboard.

The vessel was seized south of Larak Island in the Strait of Hormuz, according to the state-run IRNA news agency. The island sits less than 20 miles off the Iranian mainland, south of Bandar Abbas.

As quoted by Iran's semiofficial Fars news outlet, the Iranian military said in a statement Thursday that the tanker was on its way "to deliver the smuggled fuel received from the Iranian dhows to foreign ships in farther areas but it failed thanks to the IRGC Naval forces' vigilance."

Without naming the tanker, the military says it has a cargo capacity of 2 million liters — making it a small vessel when compared to supertankers that can carry 2 million barrels of oil.

The elite military force's statement did not describe the condition or whereabouts of the crew, saying only that Iranian authorities are studying the case. It also added that the Revolutionary Guard Corps "denied claims that it has seized any other foreign ship as claimed by the foreign media in the last several days."

The ship was seized on Sunday, Iran says. While it did not name the vessel, U.S. media outlets and maritime news sites have identified it as the MT Riah, a small Panama-flagged tanker that went missing in the Strait of Hormuz around midnight Saturday, according to ship-tracking data. According to the Vesseltracker website, the tanker has been missing since it "turned off its AIS" — its automatic identification system transponders.

News of the at-sea seizure comes one day after another semiofficial Iranian news site, ISNA, quoted an Iranian Foreign Ministry spokesman saying that Iran had "rescued" a foreign oil tanker in the Persian Gulf, taking it to shore for repairs.

In recent months, the Riah frequently traveled between ports of the United Arab Emirates. As the Associated Press reports, "An Emirati official had told the AP the small oil tanker made no distress call before switching off its tracker."

The seizure adds another layer of complexity to Iran's standoff with the U.S. — and its insistence that European countries that signed a landmark nuclear deal in 2015 keep their promise to ease economic sanctions, despite U.S. withdrawal from the pact.

The Strait of Hormuz is the world's most important strategic chokepoint for oil transport, according to the U.S. Energy Information Administration. The agency says that last year, the strait was the conduit for 21% of the world's crude oil and other petroleum products.

In recent weeks, oil tankers have been the targets of attacks, tense standoffs and interdictions.
Two weeks ago, a British marine force helped seize an Iranian tanker in the Strait of Gibraltar, on the grounds that it was believed to be carrying oil from Iran to Syria — a violation of European sanctions.

In retaliation for that confiscation, a former Revolutionary Guard commander said, Iran should seize a British oil tanker. And last week, it seemed that Iran's navy tried to do just that, as the U.K.'s defense ministry announced it had foiled an attempt by three Iranian ships to divert a British oil tanker. Iran denied being involved.

That back-and-forth followed a claim last month by the U.S., which accused Iran of attacking two tankers in the Gulf of Oman using magnetic mines.

Wednesday, July 17, 2019

Chevron oil spill dumps nearly 800,000 gallons of crude, water in California canyon

800,000 Gallons of Oil and Water Spilled by Chevron in California 
 In this May 10, 2019 photo provided by the California Department of Fish and Wildlife's Office of Spill Prevention and Response, oil flows at a Chevron oil field in Kern County, Calif. Nearly 800,000 gallons of oil and water has seeped from the ground since May. (California Department of Fish and Wildlife's Office of Spill Prevention and Response via AP)


Chevron crews have begun to clean up a massive and ongoing oil spill in California after nearly 800,000 gallons of oil and water were dumped into a canyon near Bakersfield in May.

The company recently revealed that 794,000 gallons of water and oil have leaked out of the ground where Chevron uses steam injection to extract oil in the large Cymric Oil Field about 35 miles west of Bakersfield.

Spokeswoman Veronica Flores-Paniagua told The Associated Press on Friday that the latest flow has stopped and officials have now begun the process of cleaning up the affected areas.

According to the California Department of Fish and Wildlife’s Office of Spill Prevention, the cleanup and ultimate investigation into what caused the oil flow were somewhat delayed as officials had to ensure there were no dangerous fumes or sinkholes that could trap workers or heavy equipment.
It is not yet clear what caused the spill but officials say it is not near any waterway and has not significantly affected wildlife. Around 70 percent of the fluid is water, meaning that around 240,000 gallons of oil were spilling out.

The state has issued Chevron a notice of violation ordering it to stop steam injections around the spill. The company also increased its production of oil from wells in the area. Both actions are intended to relieve underground pressure that may be forcing the mix of oil and water to the surface.

The process of steam injection softens the thick crude so it can flow more readily.

Environmental groups said the Chevron spill is another sign of weakened regulations under an embattled California agency. Gov. Gavin Newsom this week fired the head of the state's oil and gas division over a recent increase in hydraulic fracturing permits and amid a conflict-of-interest investigation of other division employees.

Chevron will pay for the cleanup while California state officials will oversee the process.

The Associated Press contributed to this report.

Tuesday, July 16, 2019

JFK - We choose to go to the Moon, full length

UAE oil tanker missing in Strait of Hormuz after drifting into Iranian waters

, UAE oil tanker disappears in Persian Gulf near Iran, Buzz travel | eTurboNews |Travel News

https://www.foxnews.com/world/uae-oil-tanker-strait-of-hormuz-iran-waters

An oil tanker traveling through the tiny strip of water located in the mouth of the Persian Gulf stopped transmitting its location more than two days ago when it drifted into Iranian waters.

It is not clear what happened to the Panamanian-flagged oil tanker – which is based in the United Arab Emirates – on Saturday night as it traveled through the Strait of Hormuz, but its apparent disappearance has raised concerns amid heightened tensions between Iran and several Western nations.

The Riah, a 190-foot oil tanker, typically made trips from Dubai and Sharjah on the UAE’s west coast before going through the strait and heading to Fujairah on the UAE’s east coast.

However, something happened to the vessel after 11 p.m. on Saturday when it stopped transmitting its location with tracking data shows its last position pointing toward Iran.

Capt. Ranjith Raja of the data firm Refinitiv told The Associated Press on Tuesday that the tanker hadn't switched off its tracking in three months of trips around the UAE.
"That is a red flag," Raja said.

Oil tankers have previously been targeted as the Persian Gulf region took center stage in a crisis over Iran’s unraveling nuclear deal with world powers.

Recently, Iran has inched its uranium production and enrichment over the limits of its 2015 nuclear deal, trying to put more pressure on Europe to offer it better terms and allow it to sell its crude oil abroad.

However, those tensions also have seen the U.S. send thousands of additional troops, nuclear-capable B-52 bombers and advanced fighter jets into the Mideast. Mysterious attacks on oil tankers and Iran shooting down a U.S. military surveillance drone has added to the fears of an armed conflict breaking out.

Iranian officials have not said anything publicly about the ship, nor have officials in the UAE. The U.S. Navy's 5th Fleet, which oversees Mideast waters, declined to immediately comment.

The ship's registered owner, Dubai-based Prime Tankers LLC, told the AP it had sold the ship to another company called Mouj Al-Bahar. A man who answered a telephone number registered to the firm told the AP it didn't own any ships.

Separately, Iran's Supreme Leader Ayatollah Ali Khamenei said Tuesday his country will retaliate over the seizure of an Iranian supertanker carrying 2.1 million barrels of light crude oil. The vessel was seized with the help of British Royal Marines earlier this month off Gibraltar.

Khamenei called the seizure of the ship "piracy" in a televised speech Tuesday.

"God willing, the Islamic Republic and its committed forces will not leave this evil without a response," he said.

British Foreign Secretary Jeremy Hunt said Saturday that Britain will facilitate the release of the ship if Iran can provide guarantees the vessel will not breach European sanctions on oil shipments to Syria.

 The Associated Press contributed to this report.

Monday, July 15, 2019

Chevron Phillips, Qatar Petroleum Sign $8 Billion Petrochemical Deal

President Donald Trump holds a bilateral meeting with Qatar's Emir Sheikh Tamim Bin Hamad Al-Thani, in Riyadh, Saudi Arabia on May 21.

 President Donald Trump and Qatar’s ruling emir, Sheikh Tamim bin Hamad al-Thani.

Chevron Phillips Chemical and Qatar Petroleum signed an agreement on Tuesday to develop an $8 billion petrochemical plant along the U.S. Gulf Coast, the second pact between the companies to build such plants in the last few weeks.

The U.S. Gulf Coast II Petrochemical Project will include a 2,000 kilotons per year (KTA) ethylene cracker and two 1,000 KTA polyethylene units. The plant will mostly make hard plastics for everything from pill bottles to coolers to kayaks.

Chevron Phillips Chemical, a joint venture of Chevron and Phillips 66, will be the majority owner with a 51 percent share, with Qatar Petroleum owning 49 percent of the project. The companies expect a final investment decision no later than 2021 for the project, which has a target of starting in 2024.

Mark Lashier, chief executive and president of Chevron Phillips Chemical, said the plants would help fill demand for plastics from an expanding global middle class, which is expected to grow by about 160 million people per year for at least the next decade.

Last month the companies announced they would build a petrochemical plant north of Doha in Ras Laffan Industrial City that will come on line by 2025 and tap Qatar’s North Field for natural gas feedstock.

Qatar, a tiny but wealthy country, is the world’s largest exporter of liquefied natural gas (LNG). Qatar is broadening its energy interests after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed ties with it in 2017, in one of the worst diplomatic disputes in the region in years. The countries accused Doha of support for Islamist militants and Iran, charges it denies.

In February, Qatar Petroleum and Exxon Mobil Corp said they are investing in a $10 billion project to expand an LNG export plant in Texas, as companies race to meet global demand for the fuel.

Tuesday’s deal was signed at the White House in the presence of

The two petrochemical plant deals spread the financial and trade risks for Chevron Phillips and Qatar Petroleum, Lashier said.