New base 742 special 07 december 2015

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NewBase 07 December 2015 - Issue No. 742 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE has cumulative experience in environment protection and
tackling climate change challenges
(WAM)--Dr. Sultan Ahmed Al Jaber, Minister of State and Special Envoy for Energy and Climate
Change and Head of the UAE delegation participating at the 21st Session of the Conference of
Parties (COP21) of the United Nations Framework Convention on Climate Change in Paris, has
said that the UAE is participating with the high-level delegation, including representatives from
ministries, competent authorities and companies.
He pointed out that the UAE through its participation in activities on the sidelines of the event, is
committed to reach an international agreement to limit the consequences of climate change. It is
also keen to participate in the associated events and activities to highlight the UAE's leading
position in the renewable energy and sustainability regionally and internationally."
Dr. Al Jaber made the remarks while visiting the UAE pavilion at the Conference. "Through our
participation in the negotiations, we noted that all negotiators from other world countries accord us
a respect due to the important and effective role being played by the UAE in these negotiations.

We differ from the rest because we based our arguments on the scientific experiences on the
ground through the initiatives of Masdar in the Emirate of Abu Dhabi, the Dubai Electricity and
Water Authority (DEWA) and The Sheikh Mohammed bin Rashid Al Maktoum Solar Park."
"We are committed to a full
and comprehensive
agreement that takes into
account standards of each
party at the conference. We
aim through our
negotiations that the
developed countries should
adopt a clear and binding
role towards the developing
countries by activating their
pledges to provide
techniques and technology,
participation and investment
in cadres to develop the
required technologies so as
to reduce the repercussions
of the climate change."
Dr. Al Jaber noted that the UAE has a great experience and long history in the field of
environmental protection and minimising the impact of the climate change. He said, "We are
committed through these initiatives and through our negotiations in Paris to finding a mechanism
for the economic diversification. We create through these challenges economic opportunities with
a sustainable nature."
On the launch of the global alliance for the desalination of water in Paris with more than 80
countries, Dr. Al Jaber said, "We hope to find a system or a comprehensive, complete and
advanced strategy. In the UAE the energy sector depends on the water sector, while the water
sector depends on the energy sector. Thus, they are integral parts. Therefore, the water sector is
vital and very important for us in the UAE."
He explained that the Abu Dhabi Sustainability Week, which is held in January each year, includes
"the Global Water Summit" during which many partnerships with government and private sector
are struck to develop the efficiency of production of electricity for water desalination, as well as the
development of new techniques in water desalination, Dr. Al Jaber said the experiences launched
in the Global Water Summit have considerably benefited the UAE.
He added, "We came to Paris to demonstrate our experiences in the sectors of clean energy and
water during various sessions of the negotiations."
Al Jaber explained that the Global Clean Water Desalination Alliance, is a new initiative dealing
with the issues of water desalination, involving many stakeholders of the sector, research
institutions, universities and other organisations, government and private sectors of the UAE,
Europe and North and South America and Asia. The alliance aims to address the issue of water
scarcity and minimise the impact of the climate change and environmental impacts of these
technologies, reduce dependence on energy and reduce the cost of energy used in water
desalination.

He said, "We hope this meeting and platform will lead to an important starting point, We are
optimistic about the current talks in Paris."
The minister pointed out that the UAE had an influential and effective role in these meetings, citing
that the UAE and the French side held several meetings to discuss this file, most recently in
September on the sidelines of meetings of the General Assembly of the United Nations in New
York, where "we had a meeting attended by a number of foreign ministers and specialists from the
public and private sectors to discuss the climate issue, in particular the meetings of Paris."
Dr. Sultan Al Jaber pointed out that the participation and attendance at the Conference of States
Parties participating in the United Nations Framework Convention on Climate Change in the
French capital Paris, shows how the world's attention to this issue. The world today pays special
attention to the issue of climate to reduce its repercussions.
He explained that the presence of more than 150 heads of state and governments and more than
120 foreign ministers and the CEOs of companies and government institutions, shows that the
world is already beginning to realise the importance of this issue and that there must be a solution
and a comprehensive agreement that meets the needs of national issues relating to each
individual state, and that the deal should have tangible and feasible economic results.
Dr. Al Jaber referred to the voluntary contributions made by more than 186 countries, adding that
it is an unprecedented and unusual, praising the role of the Secretariat of the United Nations and
the competent French authorities for this momentum and these contributions at the conference,
which will have an important and effective role in reaching a comprehensive deal that satisfies
each party's ambition.

Qatar: Maersk Oil installs Middle East’s first nanoCT scanner at
Al Shaheen field . Gulf Times
Maersk Oil has installed the Middle East’s first ‘nanoCT scanner’ with nanometre-scale resolution
in Qatar, which will further enhance its unique understanding of one of the world’s most complex
offshore oilfields of its type.
The scanner will produce high-resolution 3D images of the carbonate reservoir rocks in Qatar’s Al
Shaheen field, allowing Maersk Oil Qatar (MOQ) scientists and engineers to better understand
and predict reservoir properties.
The new nanoCT scanner has a resolution of one billionth of a metre (one nanometre) and can be
applied to samples that are 40 times larger than normal, making studies of real-world problems
possible.
Together with the Australian National University, MOQ has developed a nanoCT scanner that
combines nanometer resolution with sample sizes that are needed to understand fluid flow in
reservoir rocks. Until now, commercially available technology has only been able to provide high
resolution imaging for very small sample sizes. Such small samples do not resemble actual rock
samples close enough to mimic reservoir scale rock fabrics.
The new nanoCT scanner has a resolution of one billionth of a metre (one nanometre) and can be
applied to samples that are 40 times larger than normal, making studies of real-world problems
possible. To put this degree of resolution into context, atoms and molecules are measured in
nanometres — a water molecule is actually less than one nanometre in size, whereas a human
hair is about 100,000 nanometres in diameter.
MOQ managing director Lewis Affleck said, “Working closely with our partner Qatar Petroleum,
Maersk Oil has gained a unique understanding of the Al Shaheen field. The development of a new
nanoCT scanner is a world-class technology solution that further strengthens our applied research

and technology development efforts and our commitment to safely and efficiently unlocking the Al
Shaheen oilfield and delivering the greatest value to Qatar.”
Many oil reservoirs in the Middle East consist of low permeability, very fine-grained carbonate
rocks in which the fluid-filled pores are so small that they require technologies with nanometre-
scale resolution to be studied in detail. This requirement drove the development of nanoCT by
Maersk oil Qatar and Australian National University. The 3D scans of the reservoir samples that
are generated through CT scanning allow a 3D digital image be created and stored for further
study and thus to understand how these impede or enhance oil flow.
Abdulrahman Al Emadi, head, Maersk Oil Research Technology Centre (MO-RTC), said, “The
new CTnano scanner technology is key to unlocking an extra layer of potential from tight
carbonate fields and specifically, Al Shaheen, which is recognised as one of the most challenging
tight-carbonate offshore oilfields in the world. The scanner enables us to mimic real reservoir
processes in tight carbonates, which has been impossible to do previously. We are proud to bring
this technology to Qatar and to share our knowledge with local partners.”
MO-RTC is part of a 10-year investment by Maersk Oil in applied research in Qatar and is the
company’s first global research and technology centre tasked with developing cutting-edge
applications for the Al Shaheen field, while supporting Qatar’s National Vision 2030 of building a
knowledge-based society.
The centre focuses on research that creates practical and applicable solutions for streamlining
production at Al Shaheen, focusing on improved oil recovery, enhanced oil recovery, the marine
environment and digital core technology.
The Digital Core Laboratory installed at MO-RTC in 2014 is already combining X-Ray computer
tomography, 2D mineral mapping and sophisticated algorithms to build digital pore network
models and develop a 3D understanding of core samples from Al Shaheen.
The installation of the new CTnano scanner will further enhance Maersk Oil Qatar’s understanding
of flow properties of the Al Shaheen reservoirs and thus contribute to improved oil recovery.

Total works with QP to optimise production, oil recovery at Al
Khalij: Pouyanné Patrick Pouyanné… Gulf Times
Total is working with Qatar Petroleum to “find innovative and cost-
efficient solutions to optimise production and oil recovery and
ensure that the Al Khalij field is resilient to low crude price
environment,” said its chief executive officer Patrick Pouyanné.
In February 2014, Total and Qatar Petroleum had set up a new
joint venture to further develop the Al Khalij oilfield over the next 25
years.
“Operationally speaking, the results of the Al Khalij field are good. Production has been
maintained over the last three years, which is a performance for a field of that complexity and
maturity,” Pouyanné said in an interview with Gulf Times.
Asked about reports that Total was looking to work in Iran, the global CEO said, “We will see. We
had a long history in Iran, but not as long as in Qatar. First, the sanctions need to be lifted … and
they haven’t to this day. Then we will look carefully if opportunities are of interest, in particular
from a contractual and economical point of view.”
On Total’s relationship with QP and other international oil companies (IOCs) in the country,
Pouyanné said, “We have a very good working relationship with QP at all levels because we share
the same values and goals, safety, operating excellence and cost efficiency among others. We
are partners in Qatar in the Al Khalij field, in Qatargas I and II, and in the refining and
petrochemicals business.
More recently, we have also decided to partner abroad. “This is an opportunity for QP to have
access to different types of operations, and for us to share our knowledge. Qatar Petroleum holds
a 15% share in Total Congo. We look forward to extending this international co-operation to other
countries. Total also entertains good relationships with other IOCs in Qatar, but obviously in a
different manner: we are competitors and partners.”
“Qatar is of upmost importance for the group. We are very proud of the long lasting partnership we
have established with our stakeholders here, notably Qatar Petroleum. We would like to build on
this long term relationship and we look forward to seizing any new opportunity in the oil and gas
sector as well as in petrochemicals or renewable energies,” said Pouyanné, who headed Total’s
Qatar operations for more than three years, some 15 years ago.
He said Total intended to “remain a player all over the value chain”.
“The fact that we are active worldwide all over the value chain has been a great asset in the
current context of lower oil prices. While our exploration and production branch was experiencing
difficulties and adjusting to this new situation, we have been able to capture value thanks to our
refining and chemicals business, and thanks to our distribution business,” Pouyanné said.
Asked whether the current economic situation would result in staff redundancy in Total’s global
and Qatar operations, Pouyanné said, “At Total, we have had a slightly different approach from
that of most of our peers. If you make many people redundant when you are going through a
rough patch, you basically lose people that you have invested in. In 2015, we implemented a
hiring freeze across the company, but we have not used redundancies.

Brunei feels the heat of low oil prices as O&G is 60% GDP
By Arno Maierbrugger - Gulf Times Correspondent
The small, but oil-rich Sultanate of Brunei Darussalam on the northern coast of Borneo could be
one of the first collateral damages of prolonged low oil prices, experts find.
The country’s dependence on oil and gas income remains inappropriately high under the given
market circumstances, both the International Monetary Fund (IMF) and the Asian Development
Bank (ADB) find, as the Islamic nation’s efforts to diversify the economy have been broadly
fruitless so far.
Since commercial oil production in Brunei started in the 1930s, the country has built up
considerable wealth and as per IMF calculations was the fourth richest country in the world in
2014 with GDP per capita of $79,890, measured in purchasing power parity. Brunei just ranked
behind Qatar, Luxembourg and Singapore, but ahead of Kuwait, Norway and the United Arab
Emirates.
However, Brunei’s wealth is jeopardised by the fact that the oil and gas sector keeps dominating
the economy in an unhealthy manner, steadfastly accounting for more than 60% of GDP and more
than 90% of exports.
That way, the massive global oil price slump that started in 2013 did much harm to the nation’s
finances.
Fiscal deficit is expected to reach 16% of GDP this year, a stark contrast to the 28% surplus
Brunei enjoyed back in 2011. In 2015, the country will register its third year of economic recession
in a row, the only Southeast Asian nation to do so. GDP is forecast to decline by 0.5% (as per IMF
estimations) or even 1.5% (ADB forecast), after shrinking 2.3% in 2014 and 1.8% in 2013.
In fact, with international analysts predicting oil prices to stay low “for a long time,” Brunei’s self-
conception of a tranquil, wealthy, independent and trouble-free nation is being put to the test after
decades of generosity. Brunei’s 420,000 citizens enjoy all amenities of a nanny state that grants
them subsidized housing and loans, cheap gasoline, free healthcare and education up to
university level.

There is no personal income tax or sales tax. An estimated 70% to 80% of Bruneians are
employed by the state in more or less cushy positions, which pushes the overall productivity level
of the country’s economy
down. But the
comfortable times are
seemingly coming to an
end.
Estimates by the BP
World Energy Outlook are
that Brunei’s hydrocarbon
reserves will run out in 22
years in case no new
reserves are being
discovered. And because
the low oil price is
demotivating Brunei’s oil
partners such as Shell
and Petronas to invest
more in exploration, there
is no reason to believe
this grace period can be
easily prolonged.
Brunei’s oil production,
which peaked in 1979 at over 240,000 bpd and since has been deliberately cut back to extend the
life of oil reserves and improve recovery rates, is down 40% since 2006 alone.
Attempts to diversify Brunei’s economy towards other, more sustainable sectors had limited
success.
Although the government has been trying to broaden the economic base by using oil revenues to
invest in non-oil industries like Islamic banking and halal food and pharmaceuticals, as well as by
attracting foreign direct investments into projects such as a methanol factory, a steel pipe factory
and a refinery, there was little impact so far and the few newly-built industrial parks are standing
largely empty.
Both IMF and ADB are now recommending that Brunei freezes public-sector wages and hiring for
government positions, cuts fuel subsidies and abandons big public projects, and in turn boosts low
productivity and encourages job growth. In a first step, Brunei’s finance minister Abdul Rahman
Ibrahim cut the national budget for this fiscal year by $250mn to $6.4bn and promised “prudent
spending to balance out Brunei’s expenditure and revenue.”
And it’s about time. Calculations show that if the Brunei dollar, which is pegged to the Singapore
dollar, would be de-pegged, inflation in Brunei would skyrocket and the international purchasing
power of the Brunei dollar would drop significantly as the country needs to import 60% of its food
and almost everything else.
In terms of Real Effective Exchange Rates, a measure by the World Bank to determine the real
value of a country’s currency against the basket of its trading partners, the Brunei dollar through
the peg is overvalued by at least 25%.

Bangladesh: Chevron starts natural gas production from two new wells
Source: Reuters + NewBase
Chevron has started producing gas from two new wells in the Bangladeshi state of Sylhet,
aimed at easing the country's chronic energy shortages. The U.S oil and energy company, the
largest foreign investor in the Bangladesh's energy sector , will initially produce around 130 million
cubic feet of gas per day
from the Jalalabad field,
located 280 kms (175 miles)
from the capital Dhaka.
'This is the culmination of a
long drilling campaign that
Chevron started in
November 2014,' the
ministry of power, energy
and mineral resources said
in a statement on Sunday.
Another well at the field is
expected to begin
production at the start of next year, it added. 'Bangladesh is an energy starving country and we
need more power and energy to achieve our vision to become a middle income country by the
year of 2021,' said Nasrul Hamid, junior minister for power, energy and mineral resources. He also
called on Chevron to train more
Bangladeshis to work in the energy sector.
'Jalalabad is a very important field and
plays a crucial role in ensuring the overall
gas supply in Bangladesh,' said Istiaque
Ahmad, the chairman of the state run
Petrobangla. 'Had there been no
indigenous gas in the country, we would
have been compelled to spend an
enormous amount of foreign exchange on
imported fuel oil and gas,' he said.
Discovered in 1989, the Jalalabad gas field
first came on-line in 1999, and has been
performing with an uninterrupted efficiency
of 99.9 percent since 2001. Chevron
Bangladesh is supplying more than 50
percent of the total gas output of 1.5 billion
cubic feet (BCF) per day.
'For over a decade now, Chevron has been
supporting Bangladesh to reduce the
nation's reliance on imported energy by
investing resources to deliver more gas,
safely and reliably,' said Kevin Lyon,
president of Chevron in Bangladesh.
Bangladesh currently faces up to 500 million cubic feet of gas shortages a day.

UK: The end of deep coal mining in Britain: ‘They’ve knocked us down’
The Gaurdian - Susanna Rustin ( images by NewBase )
“It could be me and 10 others, or we could be 300, it’s always hard to know with a march,” says
Chris Kitchen, secretary of the National Union of Mineworkers (NUM). But Keith Poulson, the
union’s branch secretary at Kellingley colliery in north Yorkshire – whose closure later this month
is the reason for the demonstration planned for 19 December – is thinking bigger.
He believes that as many as 2,000 people could attend, “because it’s the last deep coal mine”. He
expects a media scrum along with miners and their families, and says: “You won’t be able to move
for TV crews on the verge out there. If we’d only had as much attention when we were trying to
keep the place open, then it might have been a different tale we’re telling now.”
There is so much bitterness here that
the Kellingley miners rejected an offer
by management to lay on a buffet and a
brass band to mark their last day at
work. Then, at a 40th birthday party a
few weeks ago, two women whose
partners are among the 451 men still
working at Kellingley decided they
would arrange something.
They fixed on a march modelled on one
held in January, when the local Labour
and Conservative MPs Yvette Cooper
and Nigel Adams joined calls for the
mine – which is in Adams’ constituency
but so close to Cooper’s that she, too,
is heavily involved – to be saved.
Led by the Knottingley Silver Band, and with NUM officials carrying the branch banner, the
marchers will process the short distance from Knottingley town hall to the Miners’ Social Club.
Tickets are on sale for an event later that evening, billed as “The Last Pit Party” on the poster
pinned up in the concourse where the miners clock in and out, and where staff from Jobcentre
Plus have set up a temporary surgery to offer advice.
Poulson respected union members’ wishes when he agreed that they would just walk away after
the final shift. “We didn’t think it was good to mark the end of the industry – you only celebrate a
victory, don’t you?” he says. But now the two women have taken the initiative, he says he’s glad.
“Their energy is commendable,” he adds.
Most of the miners I spoke to at Kellingley this week seemed to think they would join the march –
although there were plenty who declined to talk to the handful of journalists allowed in, along with
a documentary film crew, to have a look around before the last of more than 50 Yorkshire coal
mines is shut. Alan Clasper, a welder, says he hopes the farewells “will be upbeat, though people
will be feeling disappointed. Everyone sticks together, don’t they?”
Employment prospects are grim for this ageing workforce, some of whom have worked in mines
since their teens. A good number had fathers and grandfathers who were miners, and they now
face little choice but to apply for unskilled warehouse and driving jobs. A notice invites applications

to the new wind-turbine factory in Hull, while pointing out that 1,000 applications were received for
14 jobs. Asked if they have enjoyed working at Kellingley, the men say they will miss the
camaraderie, and there is bravado as well as anger among a group who list those they hold
responsible – Margaret Thatcher, Tony Blair – before one tries a joke: “We’re all off on gap years,
aren’t we?”
From the yard, between the two mine shafts and the conveyor belts leading to the buildings where
the coal is washed and loaded on to trains, the eight huge chimneys of Eggborough coal-fired
power station are clearly visible. Less than four miles in the other direction is Ferrybridge. Both are
set to close next year, long before the government’s recently announced deadline for coal-fired
power stations of 2025.
For decades, this corner of Yorkshire has been a vital source of electricity, but asked whether
people know what is about to happen here, the unanimous answer is “no”. “You live in London. Go
and ask your next-door neighbour if they think there’s any deep mines left in Britain,” Poulson tells
me.
“Everyone thinks mining is already finished,” says Margaret Faull, who recently retired as director
of the National Coal Mining Museum after almost 30 years. Colliery manager Shaun McLoughlin,
sitting behind the desk in his office, and cable bolter Tony Chappell, in a high-vis jacket covered in
black dust, tell versions of the same story: when you go on holiday and get into conversation,
people can’t believe you work in a mine. “They don’t know that up this end of the world it’s always
been mining,” says Chappell, who is 53.
Hatfield colliery near Doncaster was expected to be the last of England’s three remaining coal
mines to shut, and the NUM invested £4m of members’ money there in the hope that state aid
could further extend its life. But the doubling of the carbon floor price by chancellor George
Osborne in April meant that, when the mine’s contracts ended, there was no buyer, leading to its
closure in June. Two weeks later, Thoresby in Nottinghamshire closed, too.
No one denies British coal is expensive. Labour costs, safety standards, and issues with this mine
including the three hours a day miners spend travelling underground, are among the reasons –
and a contract with Drax power station is the only reason Kellingley can sell what it currently
produces.

US: Crude oil storage capacity and inventories have increased in
Cushing, Oklahoma and PADD 3 since September
Commercial crude oil inventories in Cushing, Oklahoma (located in Petroleum Administration for
Defense District, or PADD, 2) and the Gulf Coast (PADD 3) totaled a record high 309.4 million
barrels as of the week ending November 27 (Figure 1). Based on the recently released storage
capacity and line fill data in the September Petroleum Supply Monthly (PSM), EIA estimates
70.2% utilization of working crude oil storage capacity in Cushing, Oklahoma and PADD 3 on a
combined basis. This utilization level is only slightly below the record set in the week ending April
24 of this year.
While often assessed separately, looking at the combined utilization of storage capacity in
Cushing and PADD 3 is currently relevant, given the increased pipeline capacity to move crude oil
from Cushing to the Gulf Coast—reflected in the recently low Brent-WTI spread—during a time of
high global crude oil inventory builds. Despite relatively high crude oil inventories and crude oil
storage capacity utilization, there is still more than 100 million barrels of capacity available within
the two areas.
For much of 2013-14, both WTI and Brent were in backwardation, meaning that near-term prices
were higher than those for longer-term delivery (Figure 2). However, the backwardation in WTI
prices was more pronounced and variable than for Brent prices. This difference reflected steady
crude inventory declines at Cushing as a result of increasing pipeline takeaway capacity to bring
crude from Cushing storage to refineries on the Gulf Coast for processing. From mid-2013 through
mid-2014, Cushing inventories mostly declined and PADD 3 inventories were regularly above the

historical five-year average, as crude oil movements from PADD 2 to PADD 3 increased sharply
(Figure 3).
In mid-2014, as a result of global crude supply outpacing demand, the Brent price moved to
contango, with current month prices lower than the thirteenth month forward price. A similar
dynamic with WTI prices was slower to emerge because PADD 3 inventories were falling, and
Cushing levels were very low, putting upward pressure on near-month WTI prices. WTI prices did
not enter contango until the fourth quarter of 2014, following a sharp drop-off in both Brent and
WTI prices. As WTI entered contango late in 2014, Cushing inventories began to increase again,
and have been above the five-year range since early March. However, trade press reports that
ample takeaway capacity now exists to move crude oil from Cushing to the Gulf Coast. The recent
build in Cushing inventories reflects the WTI contango, and not a lack of infrastructure. Since
September, the monthly average Brent-WTI spread has been about $2 per barrel.
EIA has published net available shell and working crude oil storage capacity data with the March
and September PSM releases since September 2010. However, until recently, calculating an
effective utilization rate for this capacity was difficult. Simply dividing EIA's total commercial
inventories by working capacity overestimated utilization because the inventory data include crude
oil not stored in tanks, such as that held in pipelines (pipeline fill). As of the March 2015 release,
EIA now publishes more granular data indicating estimated pipeline fill, improving the utilization
calculation. Total working capacity is often the best measure of total available storage since it
excludes tank bottoms and contingency space.
Crude oil working storage capacity in Cushing and PADD 3 increased by a total of 6.6 million
barrels (1.8%) between March 31 and September 30 of this year. At just over 70%, total utilization
remains relatively high compared with utilization rates during 2011 through 2014, which were
mostly below 60% for Cushing, Oklahoma and PADD 3. Since March 2011 working crude oil
storage capacity in the United States has increased by 95.6 million barrels. Most of the increase in
capacity was in Cushing, Oklahoma and PADD 3, with build-outs of 25.0 million barrels and 55.7
million barrels, respectively. Combined Cushing, Oklahoma and PADD 3 accounted for about
84.5% of the increase in storage capacity since March 2011.

U.S. average gasoline and diesel fuel prices decline
The U.S. average retail regular gasoline price fell four cents from the prior week to $2.06 per
gallon on November 30, 2015, down 72 cents from the same time last year. The Midwest price
decreased six cents to
$1.88 per gallon, while
the Rocky Mountain price
declined four cents to
$2.05 per gallon. The
Gulf Coast and West
Coast prices were both
down three cents, to
$1.82 per gallon and
$2.55 per gallon,
respectively. The East
Coast price decreased
two cents to $2.09 per
gallon.
The U.S. average diesel
fuel price decreased two
cents from the previous
week to $2.42 per gallon,
down $1.18 from the
same time last year. The
West Coast, Midwest,
and Gulf Coast prices
were each down three cents, to $2.62 per gallon, $2.41 per gallon, and $2.25 per gallon,
respectively. The Rocky Mountain price declined two cents to $2.45 per gallon, and the East
Coast price decreased one cent to $2.46 per gallon.
Propane inventories fall
U.S. propane stocks decreased by 2.1 million barrels last week to 104.1 million barrels as of
November 27, 2015, 24.7 million barrels (31.1%) higher than a year ago. Gulf Coast inventories
decreased by 1.6 million barrels and Rocky Mountain/West Coast inventories decreased by 0.3
million barrels. Midwest inventories fell by 0.2 million barrels, and East Coast inventories
decreased by 0.1 million barrels. Propylene non-fuel-use inventories represented 3.0% of total
propane inventories.
Residential heating oil price decreases while propane price increases
As of November 30, 2015, residential heating oil prices averaged $2.36 per gallon, nearly 2 cents
per gallon below last week and almost 97 cents lower than one year ago. The average wholesale
heating oil price this week was just shy of $1.43 per gallon, 1 cent higher than last week and $1.07
per gallon lower than a year ago.
Residential propane prices averaged just under $1.96 per gallon, almost 1 cent per gallon higher
than last week's price and 45 cents lower than one year ago. Wholesale propane prices averaged
slightly over 50 cents per gallon, more than 1 cent per gallon higher than last week and 43 cents
lower than last year's price for the same week.

NewBase 07 December - 2015 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
OPEC decision to keep output high pulls oil prices close to 2015 lows
Reuters + NewBase
Crude prices fell on Monday in the first trading session after OPEC members failed to agree on
output targets to reduce a bulging oil glut that has cut prices by more than 60 percent since June
2014.
The Organization of the Petroleum Exporting Countries failed to agree on an oil production ceiling
on Friday after a disagreement between Saudi Arabia and Iran meant that the group for the first
time in decades didn't even mention an output quota, which previously stood at 30 million barrels
per day (bpd).
"OPEC is sending an ultimatum to its competitors: the fall in oil production should come from
them," OCBC bank said. Morgan Stanley said OPEC "believes its strategy is slowly working".
OPEC's output of more than 30 million bpd has compounded an oil glut, pushing production 0.5
million to 2 million bpd beyond demand and putting many producers under pressure, especially
small-sized U.S. shale drillers which have piled up large amounts of debt.
U.S. crude was trading at $39.52 a barrel at 0414 GMT, down 45 cents. Internationally traded
Brent futures were down 35 cents at $42.66 per barrel. This left both benchmarks near 2015
lows and not far off levels seen during the peak of the global financial crisis of 2008/2009.
Analysts said that OPEC would likely maintain production around 31.5 million bpd and that a
strategy on how to deal with new Iranian volumes once sanctions against Iran are dropped would
be discussed at the group's next meeting in June 2016.
Oil price special
coverage

NewBase Special Coverage
News Agencies News Release 07 Dec.. 2015
Chinese investment to spur ME renewable energy ambitions
The National - LeAnne Graves + NewBase
Rising investment from China will be the next big catalyst for the Middle East’s renewable energy
ambitions as firms eye opportunities in the fast-growing sector.
Sultan Al Jaber, the UAE Minister of State, will travel to Beijing next week to sign agreements to
increase bilateral ties with China, according to the chief executive of the Abu Dhabi clean energy
firm Masdar.
One of the priority sectors for collaboration will be energy – particularly renewables – as the Asian
superpower looks to get more involved in the solar markets of the UAE, Morocco and Jordan,
Ahmed Belhoul said.
“We want to get into the local [Chinese] market, but more so they want to talk to us to get into the
region,” he said.
Mr Belhoul said that it made sense to look at China. According to the United Nations Environment
Programme, China received the largest amount of renewable energy investments last year,
totalling a record US$83.3 billion. This was a 39 per cent increase on the previous year.
And for Chinese investors, it makes sense to partner with a local company to gain a larger
foothold in the region.
Mr Belhoul said that Masdar would be outlining plans with Chinese counterparts for investment
opportunities. “Masdar is not specifically signing a deal, but we are starting discussions,” he said.

After Mr Belhoul’s speech at the COP21 Re-energise event in Paris, representatives from Chinese
firms approached him to discuss further collaborations. “For us, to work with a partner, we need
someone who has delivered at least 100 to 200 megawatts. We want to go big,” he said. This
represents something of a shift in Masdar’s investment strategy, but it isn’t just pursuing
opportunities in China.
Mr Belhoul said that historically, Masdar had looked to invest in mature markets of the UK and
Spain, but now it was going after projects in other areas, particularly in the Mena region. Masdar is
interested in Morocco, but has so far been unsuccessful in pursuing large-scale solar projects.
“Now we’re going back to our own backyard and we’re pursuing multiple business developments,”
he said, adding that the company would invest more over the next year than it had in previous
years. “For us, the world is our oyster.”
This view falls in line with the push to increase renewable energy to make up 36 per cent of the
world’s energy mix by 2030 to limit climate change to only a 2 degrees Celsius rise.
However, to do this, global annual investment into renewables will need to nearly double from
current levels to reach US$500 billion for the next five years, according to the Abu Dhabi-based
International Renewable Energy Agency (Irena).
In the organisation’s report, Re-Energising the Future, a further scale-up of renewable energy
investment totalling an annual average of $900bn will be needed from 2021-30.
If this goal is met, it also means that employment levels could surpass 24 million jobs, up from the
sector’s current employment figures of 7.7 million people around the world.
“[Renewable energy] is the fastest-moving sector in terms of energy investment,” said Adnan
Amin, director general of Irena. “We’re seeing a world of energy that’s changing in ways that no
one had expected.”

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 07 December 2015 K. Al Awadi

New base 742 special 07 december 2015

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