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Wednesday, February 24, 2021

Sheik #Yamani, Legendary #Oil Man, dies at 90, RIP

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Sheikh Ahmed Zaki Yamani, has died at age 90.

Yamani served as Saudi Arabia's Oil Minister from 1962 until 1986, when he was dismissed by Saudi King Fahd over differing opinions on the Kingdom's oil policies.

When Yamani began his role as oil minister in 1962, the United States was the leading oil producer, with Saudi Arabia producing less than 2 million barrels per day. And Exxon and Chevron had control of most of the oil in Saudi Arabia. But that quickly changed as Saudi Arabia moved to nationalize its oil industry. Saudi Arabia's oil production quickly reached 10 million bpd during Yamani's tenure.

Chart courtesy of Dr. Anas Alhajji

See the whole article on Oilprice.com here:

https://oilprice.com/Latest-Energy-News/World-News/Saudi-Arabias-Longest-Serving-Oil-Minister-Dies-At-90.html

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Monday, February 22, 2021

#Spain's #Renewables: The #Chinese are Coming In Big…

The Chinese are Coming In Big… 

• Deal could value renewable assets at up to 500 million euros
Deal includes more than 400 megawatts of operational plants
• State-owned Chinese firm continues acquisition drive in Europe after buying  X-Elio Spanish solar assets in 2020

Three Gorges to Buy Billionaires' Spanish Renewable Portfolio

Bloomberg News
  • State-owned Chinese firm continues acquisition drive in Europe
  • Deal includes more than 400 megawatts of operational plants

China Three Gorges Corp. agreed to buy Spanish renewable assets from a group of billionaires, as the Chinese energy giant seeks to double down on the southern European country.

State-owned Three Gorges will acquire 100% of a portfolio of more than 400 megawatts of operational plants from a consortium led by Corporacion Masaveu, backed by the wealthy Spanish family of the same name, it said in an emailed statement received Monday. The assets include 11 wind farms and one solar plant, according to the statement.

Bloomberg News reported earlier this month that the Chinese company was in advanced talks to buy the assets. Other sellers include Korys Group, the investment arm of Belgium's billionaire Colruyt family, as well as Exus Management Partners and a group of Portuguese minority investors, the statement shows. The deal is expected to be completed before the end of the second quarter.

Three Gorges had been discussing a valuation of about 400 million euros ($486 million) to 500 million euros for the portfolio, people with knowledge of the matter have said. The Chinese group worked with FTI Capital Advisors on the deal.

The investment follows Three Gorges's purchase last year of 13 Spanish solar park assets with more than 500 megawatts of capacity from X-Elio Energy SL, which is owned by Brookfield Renewable Partners LP and buyout firm KKR & Co.

The Chinese company was also among the final bidders for Grupo T-Solar, a green energy firm with a presence in Spain and Italy, which was acquired in December by Cubico Sustainable Investments Ltd. for 1.5 billion euros.

Three Gorges is the biggest shareholder in EDP-Energias de Portugal SA, in which the Masaveu family also holds a minority stake, according to data compiled by Bloomberg. Three Gorges issued a statement last month reiterating its commitment to EDP after selling a 2.5% stake in the company. The sale raised 534 million euros, leaving the state-owned firm with a 19% stake.

— With assistance by Manuel Baigorri, and Dong Cao

https://www.bloomberg.com/news/articles/2021-02-22/three-gorges-to-buy-billionaires-spanish-renewable-portfolio?sref=VxHCy32x 



Wednesday, February 17, 2021

#Texas’s #Blackout, Or When All The Inherent Problems Present In The US’s #Energy #Infrastructure Create The #PerfectStorm

In Texas's Black-Swan Blackout, Everything Went Wrong at Once - Bloomberg
Wouldn't say it was a #BlackSwan, as most of the problems could have been mitigated. 

"wind shutdowns accounted for 3.6 to 4.5 gigawatts -- or less than 13% -- of the 30 to 35 gigawatts of total outages, Ercot's Woodfin said. Gas produced 35% of the power in January.

"Natural gas played an outsize role in the disaster."

"Everyone wants to blame someone, so they blame Ercot"

In Texas's Black-Swan Blackout, Everything Went Wrong at Once

The finger-pointing began immediately: It was the frozen wind turbines that foolishly replaced traditional sources. No, fossil fuels were at fault. No, Texas's deregulated power market, unique in the country, had allowed companies to skimp on maintenance and upgrades.

As the hours ticked by and millions more were plunged into frozen darkness, a more sober reality emerged. The greatest forced blackout in U.S. history, as this event has almost certainly become, was the result of a systemic and multifaceted failure. There are no promises of when power will be restored and little likelihood that the episode won't be repeated in a corner of the country hard hit by climate change.

"This feels like a technical design failure," said Michael Webber, who founded the Webber Energy Group at the University of Texas at Austin and serves as chief science and technology officer at French utility Engie.

Power plants weren't fully weatherized, wiping out generation capacity. The ones that were still standing struggled to get enough fuel, with shale wells experiencing so-called freeze-offs. Many wind turbines stopped spinning. Texas, with a grid notoriously isolated from the rest of the U.S., was unable to call on neighboring states for help.

Still, as the pressure dropped last week and frigid air descended from the north, some saw what was coming and felt like they were witnessing a train crash.

Tuesday, February 2, 2021

#Exxon posts 1st annual loss as a public company on COVID-19 blow, Write-Down of $20BN For #Shale #Gas Assets $XOM

  • Reduces value of shale gas properties by more than $20 billion in Q4.
  • Exxon cut up to 15% of its workforce and delayed oil and gas projects after accepting oil prices could remain below $60 a barrel for years.
  • Added $22 billion to its debt last year to cover its dividend and project spending. 

Exxon posts first annual loss as a public company on COVID-19 blow

(Reuters) -Top U.S. oil producer Exxon Mobil on Tuesday posted its first annual loss as a public company as the COVID-19 pandemic hammered energy prices and it reduced the value of its shale gas properties by more than $20 billion in the fourth quarter.

Exxon cut up to 15% of its workforce and delayed oil and gas projects after accepting oil prices could remain below $60 a barrel for years. It added $22 billion to its debt last year to cover its dividend and project spending.

The company reported a net annual loss of $22.44 billion for 2020, compared with a full-year profit of $14.34 billion in 2019.

Exxon posted four straight quarters of losses in 2020 and is under fire from activist investors pushing for board changes and a better strategy for a global transition to cleaner fuels.

See the whole story on Reuters here: 

https://www.reuters.com/article/us-exxon-mobil-results-idUSKBN2A21LN