methane emissions

Oil prices to keep on rising

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Oil prices to keep on rising

– The oil price is now over /barrel due to tight supply, increasing demand, Middle East conflict, and Houthi attacks on vessels in the Red Sea, with expectations of further increases.
– The International Energy Agency (IEA) now predicts a global oil supply deficit throughout 2024, reversing its earlier forecast of a surplus.
– The IEA and OPEC agree on supply deficits due to OPEC+ cuts and rising global demand.
– The IEA forecasts a crude consumption increase of 1.3 million barrels per day (b/d) this year, while OPEC maintains its growth estimate at 2.25 million b/d for 2024.
– The US is producing more crude oil than any other country, averaging 12.9 million b/d in 2023, with Saudi Arabia and Russia close to 10 million b/d.
– Oil and gas executives expect a slower transition to net-zero due to geopolitical turmoil, macroeconomic conditions, and AI.
– Shell aims to reduce its net carbon intensity by 15%-20% by 2030, adjusting from its previous goal of 20%.
– Adnoc and BP suspended their billion bid for a stake in Israel’s NewMed Energy due to the conflict in Gaza but remain interested.
– Adnoc and BP announced a new joint venture centered on Egypt on 14 February.
– European refineries may have a profitable future due to elevated margins for refined oil products like diesel and gasoline, amidst war in Ukraine and Red Sea tensions.
– On 13 March, Ukraine conducted drone strikes on Russian refineries, reducing refining capacity by 370,500 b/d.
– Falling refining capacity has increased diesel premiums ahead of crude by about /b.
– By 2026, Europe will have reduced its crude distillation capacity by about 7% compared to 2020, becoming more reliant on imports of refined products and more vulnerable to supply shocks.
– The IEA and OPEC continue to have contrasting biases in oil market forecasts.
– CERAWeek in Houston saw top oil executives and ministers discuss the energy sector, with less pressure for a large-scale move to clean fuels.
– ExxonMobil CEO Darren Woods emphasized the cost concerns in reducing emissions.
– Shell CEO Wael Sawan highlighted the critical role of LNG in Shell’s future.
– Saudi Aramco’s CEO criticized the energy transition approach, advocating for efficient hydrocarbon use.
– US Secretary of Energy Granholm emphasized meeting current energy needs while preparing for future realities.
– Wind turbine blades, which can’t be recycled, are accumulating in landfills.
– Methane emissions from the energy sector remained near a record high in 2023, according to the IEA.
– Germany has opened its first EUR 4 billion bidding round for ‘Carbon Contracts for Difference’ for industrial users to switch to green hydrogen or other low-emissions technology.
– Engie urges caution on the pace of hydrogen deployment in hard-to-abate industries.
– Global greenhouse gas emissions from food systems are growing, with livestock being the biggest driver.
– Jim Skea of the IPCC stated the world is in ‘unknown territory’ after heat records were broken, indicating more science is needed to understand extraordinary temperatures.

Methane to become key criteria for future EU energy imports, official says

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Methane to become key criteria for future EU energy imports, official says

– The European Union plans to use methane emissions as a criterion for deciding its energy suppliers in the future.
– A U.N. methane conference took place in Geneva from March 18-21, with over 1,000 participants from 100 countries.
– Methane is the second-biggest cause of climate change after carbon dioxide and has a higher warming effect in the short term.
– The EU will focus on the environmental impact and carbon intensity of its energy purchases.
– In November, the EU agreed to impose methane emissions limits on its oil and gas imports from 2030.
– The EU will create “methane performance profiles” for countries and companies, favoring those that reduce emissions.
– The Geneva forum aims to advance methane emissions reduction efforts ahead of the COP29 climate summit in Azerbaijan.

Methane emissions from energy sector near record high in 2023, IEA says

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Methane emissions from energy sector near record high in 2023, IEA says

Methane emissions from the energy sector remained near a record high in 2023 despite commitments from the oil and gas industry to address leaking infrastructure, according to a report by the International Energy Agency (IEA). The IEA is optimistic that new satellites could improve monitoring and transparency of methane leaks, a significant greenhouse gas. Methane emissions have been stable since 2019, with over 120 million metric tonnes released into the atmosphere in the last year, a slight increase over 2022. Large methane plumes from leaky fossil fuel infrastructure increased by 50% in 2023 compared to 2022, with a notable event being a well blowout in Kazakhstan lasting over 200 days. Nearly 200 countries agreed at the United Nations climate summit in Dubai to cut methane emissions substantially, building on a previous commitment to reduce global methane emissions by at least 30% from 2020 levels by the end of the decade. However, countries and companies are under-reporting their methane emissions compared to the IEA’s estimates. New satellites, including one backed by Alphabet Inc’s Google and the Environmental Defense Fund, are expected to enhance methane emission monitoring. The IEA anticipates that 2024 will be a significant year for action and transparency on methane emissions.