Gas
Ethanol Loses as Gas-Price Fears Prompt EPA Reevaluation
NEW YORK – For months, lobbyists for refiners such as Valero Corp. (VLO) and Exxon Mobil Corp. (XOM) have warned that a U.S. law requiring increased use of ethanol would exceed the amount of the fuel they could safely blend into gasoline.
While that claim was mocked by executives at renewable fuel producers such as Poet LLC and a joint venture of BP Plc (BP/) and DuPont Co. (DD), yesterday the refiners got their way.
The so-called “blend wall” was cited by the Environmental Protection Agency as the key reason to propose the first cut in requirements for renewable fuels since they were mandated by a 2007 law.
“EPA is proposing to place the nation’s renewable energy policy in the hands of the oil companies,” Bob Dinneen, the president of the Renewable Fuels Association, which represents ethanol makers such as Abengoa SA. (ABG)
Refiners, fast-food restaurants, motorboat makers and chicken farmers have all pushed the EPA to scale back the ethanol mandate, saying it risks ruining engines by forcing more ethanol to be blended into gasoline and is acting to push up demand for corn. Gasoline demand is falling, and rising requirements for renewable fuels are ramping up the percentage of those fuels in the total mix.
The EPA proposal to require 15 billion to 15.52 billion gallons of renewable fuels such as corn ethanol and biodiesel in 2014 was a rare victory for the oil industry under President Barack Obama, and one the biofuel industry said could set back investments in their plants. That proposal compares with 18.15 billion gallons set in the legislation, making it the first time the legal mandate would be cut after years of annual increases designed to boost the industry.
Blend Wall
“EPA’s recognition of the blend wall and the potential adverse effects on consumers is a welcome step,” Charles Drevna, the president of the American Fuel & Petrochemical Manufacturers, which represents refiners such as Valero and Tesoro Corp. (TSO), said in a statement. The renewable fuels legislation “requires quantities of biofuel to be consumed that are well beyond the technical limitations of many engines in service today.”
Valero rose 16 cents yesterday to $43 at 4 p.m. in New York Stock Exchange trading, while Archer-Daniels-Midland Co. (ADM), which processes corn and other agricultural products, dropped $1.44 to $40.56, its biggest decline since Aug. 26. Prices of soybeans, used to make biodiesel, fell the most in six weeks, and corn futures dropped 1.4 percent to $4.305 a bushel in Chicago.
Renewable fuel supporters say the oil industry is holding back investments in the infrastructure to deliver higher blends of ethanol because it wants to preserve its market share.
‘Flexible-Fuel Vehicles’
“Part of our challenge is, the oil industry has done a pretty good job of making it harder to access higher blends and making it harder to take advantage of all the flexible-fuel vehicles that are on the road today,” Agriculture Secretary Tom Vilsack said this week.
Within the range of values it provided, the EPA listed specific volume requirements it was proposing: 15.21 billion gallons for renewable fuel generally and 2.2 billion for advanced biofuels, such as biodiesel. A final rule is due in the first quarter of 2014, after refiners and ethanol makers weigh in.
The EPA also proposed cutting the mandate for biodiesel and cellulosic products to as much as 2.5 billion gallons, compared to the 3.75 billion gallon target in the legislation.
By cutting back on quotas for those so-called “next generation” fuels, producers said that EPA risked killing investments necessary to get fuel from switchgrass, corn husks or algae.
‘Hurt Efforts’
“The numbers released today will hurt efforts to continue to expand and grow this cutting edge technology, create new American jobs and further American energy independence,” Hugh Welsh, president in North America for Royal DSM NV, a Heerlen, Netherlands-based company that’s building a U.S. plant to make fuel from corn cobs and husks.
EPA officials say they are listening to those concerns and have pledged to preserve a market for cutting-edge renewable fuels.
In its rule yesterday, the agency stuck to that estimate, saying it forecasts that 12.95 billion to 13.09 billion gallons of ethanol could be consumed in the U.S. in 2014, which would be below the 13.8 billion gallons it mandated this year.
Refiners, which have resisted the corn ethanol mandate, haven’t fought so hard against biodiesel, as it doesn’t present the same constraints as ethanol. Still, the cut in their use as proposed by EPA was also panned by that industry.
“This proposal, if it becomes final, would create a shrinking market, eliminate thousands of jobs and likely cause biodiesel plants to close across the country,” Anne Steckel, vice president of the National Biodiesel Board, said. “It also sends a terrible signal to investors and entrepreneurs.”
– BLOOMBERG
Announces ambitious expansion plans
Platform Petroleum says the company is targeting a billion-dollar investment as it announces an ambitious strategic plan to bring 3 marginal fields into production by 2025, with a target of 10,000 barrels of oil and at least 50 billion standard cubic feet of gas per day.
Speaking on the sidelines of the 2024 Offshore Technology Conference (OTC) in Houston, USA, Chief Dumo Lulu-Briggs, Chairman of Platform Petroleum said that the company has scheduled a roadshow in London this June 2024 to raise extra funding to finance their ambitious expansion plans.
“The upcoming roadshow aims to attract equity partners and prepare for future opportunities, targeting a billion-dollar investment. We are seeking partners ready to invest in Nigeria’s oil and gas potential.
Our goal is to showcase the country’s vast opportunities and its potential to international investors” Lulu-Briggs said.
Platform Petroleum’s roadshow in London will highlight the company’s efficient production, upgraded flow stations, increased capacity, and achievements in nearly zero emissions.
With about one percent gas flare currently, Platform aims for zero gas flares by the last quarter.
“Nigeria is a vast market, and Platform Petroleum is thinking big. With the government’s ambitious plans, such as the Lagos-Calabar coastal line, Platform is poised for growth; pushing itself to the next level, building on a strong foundation and following Seplat’s successful precedent”, Lulu-Briggs said.
Despite being a small company, he emphasized that Platform Petroleum has demonstrated significant success and efficiency, showcasing that smaller oil and gas entities can indeed achieve remarkable feats adding that he believes that the company deserves recognition and more assets.
“Platform Petroleum is ambitious, aspiring to become a tier-1 company akin to international oil companies (IOCs) or a tier-2 company like Seplat. Interestingly, Seplat originated from Maurel & Prom, Shebah Petroleum, and Platform Petroleum, and today stands as a major player in the industry.
This history underlines Platform’s potential for substantial growth”, Lulu-Briggs said.
Furthermore, the Platform Petroleum Chairman said that the Offshore Technology Conference (OTC) is a crucial event for promoting Nigeria’s significant market potential.
“Partnering with the Petroleum Technology Association of Nigeria (PETAN) at OTC is key to attracting investment. The current proactive government understands the necessity for economic growth, and Platform is prepared to leverage every opportunity in the oil and gas industry to contribute to this expansion”, he concluded.
Precious ADELOLA
The NNPC/Aiteo Joint venture has announced the introduction of Nembe Crude Oil Grade, a new crude oil grade into the international crude oil market.
The announcement of the Nembe Crude Oil Blend, produced by Aiteo, the Operator of the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV), was made at the ongoing Argus European Crude Conference in London, on Tuesday.
OML 29, an asset located onshore Nigeria, is operated by Aiteo Eastern Exploration & Production Ltd, Africa’s leading indigenous hydrocarbon producer, following a historic acquisition from Shell in 2014.
NNPCL Boss, Engr. Mele Kyari
The Nembe Crude was previously blended with the popular Bonny Light grade and exported via the Bonny Oil & Gas Terminal.
The unique selling point of the Nembe Crude Oil grade with an API gravity was highlighted by both the Aiteo E & P and NNPC Limited Leadership at the Argus Conference in London.
The Nembe Crude Oil grade also has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.
Two cargoes of 950,000 barrels each of the Nembe Crude Oil grade have since been exported to France and the Netherlands. With its attractive Assay of API 29 and low sulphur content, the Nembe Crude Oil grade commands a premium to the global Brent benchmark.
With the NNPC-Aiteo OML 29 JV back on-stream, Nigeria now boasts of an additional crude oil export of 2 Cargoes at 950,000 barrels each per month and 1.2 Bcf of export gas monthly.
This remarkable achievement signals the commencement of activities at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which was licensed in line with the extant laws and Crude Oil Terminal establishment regulations.
The terminal was conceived as a Floating Storage and Offloading Vessel (FSO) with a storage capacity of two (2) Million Barrels and the ability to offload crude oil to any export tanker from AFRAMAX to Very Large Crude Carriers (VLCC).
It has a loading capacity of 25,000 barrels per hour and will be exporting over 3.6 million barrels of Crude oil monthly at full scale of operation.
Currently, hydrocarbon production from OML 29, which was hitherto constrained due to evacuation challenges owing to the security issues around the Nembe Creek Trunk Line (NCTL) corridor, has now been resolved through a collaborative and creative approach that led to the innovation of the Alternative Crude Oil Evacuation Solution.
The Argus European Crude Conference 2023 in London is a gathering of energy majors, refiners, NOCs, traders, financial institutions, and other representatives from across the global oil markets. The event also provides a critical opportunity for business leaders to connect, discuss, share and learn from one another.
Modupe Asudo
Major players in the oil and gas sector in Nigeria led by the Nigerian National Petroleum Company Limited (NNPCL) have covenanted to optimise operations by reducing contracting cycle to not more than 180 days.
A statement issued by the company disclosed that the Memorandum of Understanding (MoU) to this effect was endorced on Monday in Abuja at the company’s head office.
Other parties to the the contract include, the Nigerian Content Development and Monitoring Board, (NCDMB) and international oil companies.
Biztellers reports that an optimised contracting cycle was expected to improve the ease of doing business, reduce cost and drive efficiency, which would eventually translate to production growth, increased revenues, and ultimately improved profitability.
In addition, the MoU was expected to contribute significantly to the double-digit economic growth rate agenda of the Federal Government and generate value for all stakeholders, including investors, companies, host communities and Nigeria.
Notable elements in the framework of the MoU, going by the statement, included a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days respectively.
This was in contrast with the current best effort performance of 327, 333, and 185 working days respectively.
According to Group Chief Executive Officer, NNPCL, Mele Kyari, signing the agreement portends exciting times for Nigeria’s oil and gas industry, in addition to standing as a bold testimony that the company was plunging into the future of hope, productivity and success.
Kyari, represented at the occasion by Executive Vice President, Upstream, NNPCL, Oritsemeyiwa Eyesan, pointed out that with oil and gas as the bedrock of Nigeria’s economy, there was need to get the contracting process in the Industry right so as to get the economy back on track.
In his remarks, Executive Secretary, NCDMB, Simbi Wabote, described the MoU as a way forward and a critical step towards enhancing the nation’s crude oil production.
Entertainment Made Africa Look Good Despite Bad Leaders — Davido
NECO Expands Global Footprints, Accredits Niger, Equatorial Guinea Schools
Harry Kane Hits Back At Critics With Historic Hat-Trick For Bayern Munich
Angry Mob Burns Two Revenue Touts Alive After Fatal Accident In Onitsha
Ex-UN Envoy Warns Of New Cold War Threatening Africa’s Unity
EPL Confirms 2025/26 Season Dates, Introduces Player Welfare Measures
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
