Showing posts sorted by date for query LNG. Sort by relevance Show all posts
Showing posts sorted by date for query LNG. Sort by relevance Show all posts

Friday, October 04, 2024

 

LNG

Liquefied natural gas carbon footprint is worse than coal



Cornell University





ITHACA, N.Y. – Liquefied natural gas leaves a greenhouse gas footprint that is 33% worse than coal, when processing and shipping are taken into account, according to a new Cornell University study.

“Natural gas and shale gas are all bad for the climate. Liquefied natural gas (LNG) is worse,” said Robert Howarth, author of the study and a professor of ecology and environmental biology. “LNG is made from shale gas, and to make it you must supercool it to liquid form and then transport it to market in large tankers. That takes energy.”

The research, “The Greenhouse Gas Footprint of Liquefied Natural Gas (LNG) Exported from the United States,” published Oct. 3 in Energy Science & Engineering.

The emissions of methane and carbon dioxide released during LNG’s extraction, processing, transportation and storage account for approximately half of its total greenhouse gas footprint, Howarth said.

Over 20 years, the carbon footprint for LNG is one-third larger than coal, when analyzed using the measurement of global warming potential, which compares the atmospheric impact for different greenhouse gases. Even on a 100-year time scale – a more-forgiving scale than 20 years – the liquefied natural gas carbon footprint equals or still exceeds coal, Howarth said.

The findings have implications for LNG production in the U.S., which is the world’s largest exporter after it lifted an export ban in 2016, according to the paper. Almost all of the increase in natural gas production since 2005 has been from shale gas. Howarth said the exported LNG is produced from shale in Texas and Louisiana.

The liquefication process – where the extracted natural gas is cooled to minus 260 degrees Fahrenheit – makes LNG easier to transport on tanker ships.

But that mode of transportation comes at an environmental cost. The ships with two- or four-stroke engines that transport LNG have lower carbon dioxide emissions than steam-powered ships. But as those stroke-engine vessels burn LNG during storage and transportation, methane slips through as emitted exhaust gas, putting more into the atmosphere.

Methane is more than 80 times more harmful to the atmosphere than carbon dioxide, so even small emissions can have a large climate impact, Howarth said.

That’s why, he said, the modern LNG tankers with two- and four-stroke engines have more greenhouse gas emissions than those tankers powered by steam. Regardless of better fuel efficiency and lower carbon dioxide emissions, methane still escapes in the tanker’s exhaust.

Significant methane emissions occur in the natural gas liquefication process, a figure close to 8.8% of total when using the global warming potential. Methane emissions from tankers vary from 3.9% to 8.1%, depending on the ship.

“Almost all the methane emissions occur upstream when you’re extracting the shale gas and liquefying it,” Howarth said. “This is all magnified just to get the liquefied natural gas to market.

“So liquefied natural gas will always have a bigger climate footprint than the natural gas, no matter what the assumptions of being a bridge fuel are,” Howarth said. “It still ends up substantially worse than coal.”

The research was supported by a grant from the Park Foundation.

For additional information, see this Cornell Chronicle story.

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Wednesday, October 02, 2024

 

Japan Maintains Energy Policy Focused on Boosting Nuclear and Renewables

Japan aims to continue restarting nuclear power plants and boost renewables capacity, the new industry minister said on Wednesday, signaling that the new government will not alter materially the country’s current energy policy.

“We can use renewable power to the maximum, and we will restart nuclear power, the safe one, as much as possible,” Industry Minister Yoji Muto, appointed by the new Prime Minister Shigeru Ishiba, told reporters in the first press conference as minister, as carried by Reuters.

Ishiba, who won the leadership race of the ruling Liberal Democratic Party, and by default became the new prime minister, had opposed reviving nuclear in the early stages of his campaign.

However, Ishiba stopped calling for ending nuclear power shortly after winning the race to be Japan’s new prime minister.

Currently, Japan is bringing back nuclear power as a key energy source, looking to protect its energy security in the wake of the energy crisis that led to surging fossil fuel prices.

The resource-poor country which needs to import about 90% of its energy requirements, made a U-turn in its nuclear energy policy at the end of 2022, as its energy import bill soared amid the energy crisis and surging costs to import LNG at record-high prices.

At present, fossil fuels account for about 70% of Japan’s electricity, which would clash with its net-zero goal.

Earlier this year, a government projection showed that Japan would need to increase its electricity output by between 35% and 50% by 2050 to meet a proportionate surge in demand.

In May, Japan launched the most important energy policy discussions in its post-World War Two history, aiming to strike a balance between the need to boost its energy security with conventional sources and its pledge to become a net-zero economy by 2050.

By Tsvetana Paraskova for Oilprice.com

 

A.P. Moller Plans to Turn a Hard-to-Find Green Bunker Fuel Into Plastic

Chemical plants and tank farms at Port of Antwerp, Europe's largest integrated chemical-industry cluster (Port of Antwerp)
Chemical plants and tank farms at Port of Antwerp, Europe's largest integrated chemical-industry cluster (Port of Antwerp)

Published Sep 30, 2024 6:21 PM by The Maritime Executive

 

 

The family holding company A.P. Moller is known best as the owner of Maersk, and it has invested heavily to build a green-methanol supply chain for Maersk Line's growing portfolio of dual-fuel methanol boxships. Green methanol is an essential ingredient for the shipping industry's transition, and it is in short supply; A.P. Moller's in-house energy portfolio allows Maersk to run some of its ships on low-carbon fuel, a competitive advantage as regulations tighten. A.P. Moller has now announced plans to turn some of this fuel into plastic instead. 

On Monday, a newly formed fossil-free plastics company announced plans to build a large plant in Antwerp that will draw its feedstock from A.P. Moller's green methanol sourcing network. The plant will turn green methanol into polypropylene (commonly used for packaging) and polyethylene (often used for disposable plastic bags and bottles). These are non-biodegradable products with the same attributes as conventional plastics, but made with a renewable source of methanol. 

The A.P. Moller-owned firm, Vioneo, says that it has designed its plant with proven technologies and will run its facility on renewable power, eliminating all CO2 emissions from production. The company believes that this will save up to six kilos of CO2 per kilo of plastic produced, and will achieve the lowest cost of carbon abatement on the market. The firm's name comes from the Latin words for "journey" and "new," and Vioneo says that it "has the potential to revitalize the European chemicals sector and position Europe as a leader in defossilizing the [plastics] industry."

Vioneo's first plastics plant will begin consuming green methanol in 2028, two years ahead of the IMO target date for decarbonizing five percent of the global bunker fuel supply. 

"A.P. Moller Holding is committed to driving the transition to low-carbon and fossil-free sources by advancing green methanol production and its applications across various sectors. The launch of Vioneo marks a significant step in this commitment," said A.P. Moller CIO Jan T. Nielsen in a statement. 

In August, A.P. Moller Holding's Maersk unit announced plans to order up to 60 dual-fuel newbuilds, including - for the first time - an unspecified number of LNG dual-fuel ships. Until the August announcement, Maersk was solely committed to green methanol as its dual fuel, and its executives had previously dismissed the potential of LNG as "another fossil fuel." 

Monday, September 30, 2024

Potential impacts of gas flaring in Soyo, Angola

Journalist Neusa e Silva travelled to Soyo to discover the potential human and environmental costs of gas flaring on the ground


View of the flaring towers from Praia dos Pobres, situated 2.28km from the Angola LNG complex, the largest natural gas exploration investment on the African continent.
 Photo: Neusa e Silva

Gas flaring associated with oil exploration in Angola has raised significant concerns regarding its detrimental effects on climate change and food security. Environmental experts warn that the practice may be contaminating local soils and water resources while simultaneously contributing to increased regional temperatures. In Soyo, a province in northern Angola, growing questions surround the security of community proximity to gas flaring projects and whether adequate measures have been taken to protect public health and the environment.

Ana Maria (a pseudonym) and her elderly mother, both residents of a neighbourhood near Soyo Municipal Hospital, shared their experiences with our reporter, Neusa e Silva. Although initially hesitant and wary of strangers, Ana Maria eventually agreed to speak about the challenges faced by her community. Soyo, a city in Angola’s Zaire Province, is home to approximately 260,000 people, many of whom rely on subsistence farming and fishing to sustain their livelihoods.

Ana Maria, like many women in the region, supports herself by farming and selling cassava. However, she highlighted the increasing difficulty of farming in recent years, attributing these challenges to two primary factors: rising temperatures and the rapid deterioration of crops.

“In recent years, it has become increasingly difficult to farm,” Ana Maria explained. “The city has been getting noticeably hotter, and the vegetables and tubers in our fields are spoiling even before we can harvest them. This phenomenon has been intensifying for about five years, coinciding with the increased operation of the gas flaring towers nearby. During what used to be the cold season, the temperature hardly drops anymore. Our crops are rotting in the fields long before they should. It wasn’t like this in the past.”


Restaurants at Praia dos Pobres. Photo: Neusa e Silva


Oil production


Located in southwest Africa, Angola is one of the largest oil producers on the African continent. Oil production is the country’s main source of revenue, accounting for around 98% of export earnings and approximately 75% of the Angolan state budget. A significant part of these oil exports come from the provinces of Cabinda and Soyo, where the country’s largest oil exploration projects are located, both offshore and onshore.

When Ana Maria and other interviewees referred to the illuminated towers, they were referring to the two gas flaring towers located in the Angola LNG (Liquefied Natural Gas) project complex, the largest natural gas exploration investment on the entire African continent.

This project is made up of the following national and international oil companies: Sonangol (Angola’s national fuel company with 22.8%), the American company Chevron with 36.4%, the French company TotalEnergies with 13.6%, Azule Energy Exploration (Angola) and Azule Energy Angola Production B.V.

Azule Energy is an autonomous energy company that resulted from the combination of the assets and workforce of BP Exploration Operating Company Limited (“BP”) and Eni International B.V. (“Eni”), each with an equal 50% stake, according to information available on its official website.

The Angola LNG consortium is dedicated to processing and receiving natural gas from different oil exploration platforms, and has the capacity to supply the global market with up to 5.2 million tons of liquefied natural gas (LNG) per year, according to the consortium’s website.

Our reporting team contacted the management of the Angola LNG project to ask about the measures adopted to mitigate possible environmental damage and the impact on the population living near the complex. We were informed that, at the moment, it is not possible to visit the complex or grant interviews.

We also requested an interview with the official entities and the regulatory body, in this case the Angolan National Oil and Gas Agency, to find out whether the country has implemented measures to regulate and control the levels of gas flaring by operators, if any. However, as of the closing date of this report, we had still not received the promised answers.

In addition to Angola LNG’s facilities, Soyo province is home to other oil exploration projects, both offshore and onshore, operated by national and global companies.

Local farmers highlighted the increasing difficulty of farming in recent years, attributing these challenges to two primary factors: rising temperatures and the rapid deterioration of crops. Photo: Neusa e Silva


Land expropriation

Farmers Ana Maria and Helena Vanda Estevão told our reporter that the degradation of their crops began to increase about five years ago. But what is even worse for Ana Maria is that the land where some of the women grow their own food is being expropriated, without any justification.

“Yesterday, they told us to pull up the cassava in 15 days because the land has already been sold,” said Ana Maria. “No one has been able to explain to whom the land we planted was sold. All they say is that the second city of Soyo will rise in the place of these plantations. No one knows who the companies or people are who are selling or buying the land. We do not know if it is the administration that is selling it without informing the people, they have not said anything, nor have they announced anything on the radio or television,” she said.

Another place visited by the reporter was Bubu Island, a small fishing village, where we met Donã, a fisherman who has lived on the island since 2000. Donã shared that in the past, they used to fish in the waters around the island, but now there are almost no fish left.

“We don’t fish here anymore, now we go fishing in the open sea to catch fish. Some use nets, others use lines, in the open sea. But back then, we used to fish here with nets. We used to catch snapper and several other types of fish until 2007. Now, not anymore,” he said.

In a conversation with Angolan family physician Dr. Sandra Gabriela (pseudonym) about the risks faced by Soyo residents due to continuous direct and indirect exposure to gas flaring, she explained that in the short and medium term, exposure to gas flaring significantly increases the likelihood of developing cancer, inflammatory diseases, skin cancer and many other health problems. The burning of gas can also cause headaches, migraines, insomnia and nausea, the doctor said.

“Prolonged exposure can lead to liver damage, birth defects, cancer and even mental health problems,” said Dr Gabriela.


Donã, a fisherman from Bubu Island Donã, told the reporter that now there are hardly any fish left. Photo: Neusa e Silva

Climate risk and regional food scarcity


Experts indicate that gas flaring, associated with oil extraction, has severe impacts on soil contamination, a phenomenon frequently observed in oil exploration areas. In flaring zones, there is an increase in local temperatures, the release of toxic pollutants, and soil contamination. According to the latest Climate Risk Report for the Southern Africa region, the Met Office, ODI and FCDO have warned that the region is on the brink of a devastating famine crisis.

On April 22 2024, CARE, the Council for the Humanities, FANRPAN and the Rural Women’s Assembly reiterated the warning, calling for support from international donors.

To understand the relationship between these phenomena and natural gas exploration activities in Soyo, we spoke to environmental engineer Vanessa Mateus. In addition to our reporter’s on-site research, the journalist also asked an expert whether the gas flaring operations were considered harmful to the environment and human health.

Asked about the effects of gas flaring, Mateus said she was concerned about the safety of the distance between the gas flaring projects in Soyo and Cabinda and the surrounding communities. She noted that “although many projects in the concession phase are destined for areas without communities, agricultural activities or natural conservation areas, the lack of master plans at municipal or land-use planning level contributes to local disorder, bringing communities closer to the companies”.

She added that new neighbourhoods or houses are springing up every day near the companies, partly due to rural migration, as people looking for better living conditions are attracted to the areas where the exploration companies are operating.

Biodiversity is also at risk, she said. “In general, we can consider that there is significant loss and removal of biodiversity, as animals and plants tend to be more sensitive to certain impacts. The effects on air quality and natural watercourses are very difficult to control.”

Pollutants are carried by winds and are no longer just localised; they become regional and even provincial, she explained. “The same goes for leaks into rivers and seas, which are spread by currents and can have local, regional, or even provincial impacts.”


Individual flaring sites – Gas flaring volumes (mn m3/year). Source: World Bank. Graphic supplied


Increased production plans


At the end of last year, Azule Energy and its partners announced the laying of the foundation stone for the construction of the facilities of the New Gas Consortium that will operate in the city of Soyo. The press release, dated October 4 2023, states that “it will be the first non-associated gas project in Angola, with production scheduled to start in 2026, an investment valued at around 2.2 billion dollars”.

On the other hand, Angola LNG recently announced plans to increase its natural gas production. In a recent interview with Jornal de Angola, Angola LNG CEO Amilton Cunha said that the increase was the result of new investments underway, which will allow the company to receive more associated and non-associated gas from offshore platforms. Amilton Cunha highlighted that Angola LNG currently sends more than 50 ships loaded with products to the global market every month, reinforcing its importance in the energy scenario.

The CEO of Angola LNG highlighted the company’s social impact in the province of Zaire, where its social responsibility policy has contributed significantly to the provision of basic services, improving the living conditions of the local population.

Neusa e Silva is an Angolan journalist and international freelance correspondent based in Portugal. This investigation is part of the series “Burning Skies: Behind Big Oil’s toxic flames”, developed by Environmental Investigative Forum, a global consortium of environmental investigative journalists, in partnership with the European Investigative Collaborations network, and their partners Daraj, Source Material and Oxpeckers Investigative Environmental Journalism. This series was supported by Journalismfund Europe

Thursday, September 26, 2024

 

First Containership with Integrated Automation Systems Departs Korea

autonomous containership
POS Singapore during her float out earlier this year (Ministry of Oceans and Fisheries)

Published Sep 23, 2024 6:11 PM by The Maritime Executive

 


South Korea highlights that the first containership designed with an integrated automation system has completed its installation and testing and is now starting international service. The project which was supported by South Korea’s Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries is designed to advance and commercialize autonomous shipping.

The automation systems for the vessel, POS Singapore (22,867 dwt) were designed in South Korea as part of a government-sponsored program to develop the new technologies. PAN Ocean, South Korea’s bulk shipping company, is participating in the program and worked to integrate the systems into the 1,800 TEU vessel. 

POS Singapore was ordered in 2022 and built by Hyundai Mipo Dockyard in Ulsan. It measures 576 feet (172 meters) in length and is registered in Liberia. The ship was floated in March and delivered in April. Since then, it has been undergoing the outfitting and testing of the automation system.

During today, September 23, sendoff ceremony, government officials highlighted that the ship will be used for the next year in testing and validation of the automation systems. The ship is currently underway bound for Shanghai. It will operate for the next year on routes between Korea and Southeast Asia.

The ship integrates core technologies including intelligent navigation and monitors and interprets the weather conditions for situation awareness and navigation. Other systems provide for engine automation and maintain cybersecurity. The ministries have invested $119 million in the project which they view as a blueprint for the commercialization of automation technology.

Using the results from this year of demonstrations, Korea also looks to lead the development of international standards for the automation of ships. The International Maritime Organization launched the effort to develop the MASS Code (international automation standards). Academics, researchers, and government officials are contributing to the creation of the new standard.

Korea looks to lead the development of automation to create a competitive edge in the next generation of shipbuilding. HD Hyundai led the first test of automation during a Pacific voyage on an LNG carrier in 2022. Korea has conducted additional tests including last year with a smaller domestic cargo ship.  

Saturday, September 21, 2024

New U.S-Greece LNG Deal Will Boost Europe’s Energy Security

  • Venture Global, a U.S. LNG producer secured regasification capacity at an LNG terminal in Greece.

  • The new South-North Vertical Corridor will shore up Europe’s energy security.

  • Russian gas supplies to the EU have largely been replaced by U.S. and Norwegian gas.

Venture Global, a U.S. producer of liquefied natural gas (LNG) sourced from North American basins, has secured ~1 million tonnes per annum (mtpa) of LNG regasification capacity at Greece’s new Alexandroupolis LNG receiving terminal for five years, starting in 2025, Reuters reports, noting that the new South-North Vertical Corridor will shore up Europe’s energy security by allowing alternative supplies of natural gas to be imported into the region. 

“This move further integrates our business by growing our assets across the LNG supply chain including LNG production, shipping and regasification. As a major point of entry for LNG into Central and Eastern Europe, this strategically important infrastructure will be a game changer for the region’s ability to diversify their energy and access a secure and reliable energy supply. Venture Global is proud to support these efforts as a strategic partner with volumes from both Plaquemines LNG and the future CP2 LNG," Venture Global CEO Mike Sabel said in a press release

Renewable Energy Displacing Gas In Europe

Norway and the U.S. have replaced Russia as Europe’s biggest gas supplier: last year, Norway supplied 87.8 bcm (billion cubic meters) of gas to Europe, good for 30.3% of total imports while the U.S. supplied 56.2 bcm, accounting for 19.4% of total. However, the U.S. is the biggest LNG supplier to Europe: last year, the U.S. accounted for nearly half of total LNG imports by the continent, marking the third consecutive year in which the United States supplied more LNG to Europe than any other country

What’s interesting here is how fast this has happened: the U.S. supplied 27%, or 2.4 billion cubic feet per day (Bcf/d), of total European LNG imports in 2021; 44% (6.5 Bcf/d) in 2022; and 48% (7.1 Bcf/d) in 2023. Obviously, Russia’s war in Ukraine has played a big part in growing Europe’s appetite for U.S. gas. Meanwhile, Europe’s capacity to accept LNG is increasing. Europe’s LNG import, or regasification, capacity is on track to expand to 29.3 Bcf/d in 2024, a 33% increase compared with 2021. Currently, Germany is adding the most LNG regasification capacity in Europe, with developers in the country having added 1.8 Bcf/d in 2023 and on track to add another 1.6 Bcf/d in 2024. 

On a global scale, the United States shipped a record 56.9 million metric tons of LNG during the first eight months of 2024, surpassing 54.3 million tons from Australia and 53.7 million tons from Qatar during that period. That marks the second straight year that U.S. exporters have topped global export rankings. 

Unfortunately, Europe has bought considerably less LNG from the U.S. in the current year, with shipments from January through August dropping by 22% Y/Y. The slowdown has largely been triggered by a sharp climb in European power generation from renewable energy sources, which remain a priority for Europe's power utilities. Solar and wind power's share of electricity generation in Europe jumped from around 16.4% in 2022 to 20.5% so far in 2024 while fossil fuel generation's share dropped from around 44.6% in 2022 to 36.6% so far this year. As you might expect, coal-fired power has taken the biggest hit in Europe’s energy mix, although natural gas generation's share has also declined, from around 26% in 2022 to 22% so far this year.

The latest Europe natural gas rally has lost momentum, with natural gas futures dropping below €35 per megawatt-hour, the lowest in seven weeks, thanks to warmer weather forecasts and ample gas inventories. Europe’s gas inventories are 0.1 bcm higher than the corresponding time a year ago however and 8.6 bcm above the five-year average.  Storage capacity utilization for the entire continent stands at 93.4%;  95.6% in Germany, 94.9% in Italy and 91.4% in the Netherlands. 

U.S. gas producers are currently going through hard times, with a 25% Y/Y drop in average LNG export prices during the first half of 2024 cutting revenues by $4 billion from the opening half of 2023 to $13.2 billion. That was the lowest half-year revenue total since the first half of 2021, and marks a more than $12 billion fall from the second half of 2022 when U.S. export earnings from LNG peaked. 

By Alex Kimani for Oilprice.com

TotalEnergies Starts Natural Gas Production From Argentinian Offshore Field

French supermajor TotalEnergies announced on Friday the start of natural gas production from the Fenix gas field offshore in southern Argentina.

The Fenix field has been developed to have a production capacity of 10 million cubic meters per day, or 70,000 barrels of oil equivalent per day, (boe/d). The field, 60 km (37 miles) off the coast of Tierra del Fuego in Southern Argentina, consists of a new unmanned platform and is connected to the existing facilities at the Cuenca Marina Austral 1 (CMA-1) concession, which TotalEnergies operates.

The natural gas produced at Fenix is sent through a subsea pipeline to the TotalEnergies-operated Véga Pléyade platform and is subsequently treated onshore at the Río Cullen and Cañadon Alfa facilities, which are also operated by the French company.

According to TotalEnergies, Fenix is a low-cost, low-emissions development, with a carbon intensity of 9 kg CO2e/boe, which uses existing infrastructure.“Fenix will contribute to maintaining our gas production plateau in Tierra del Fuego and ensure a reliable supply to the Argentinean gas market,” said Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies.

“With its low break-even and low carbon intensity, Fenix perfectly matches the Company's low-cost and low-emission strategy,” Rielo added.

TotalEnergies has been operating in Argentina since 1978, and has interests offshore, onshore, and in the Neuquen province, home to the Vaca Muertra shale.

Argentina plans to raise oil and gas output and exports from Vaca Muerta in the coming years.

Supertankers could begin docking in Argentina to load oil from the country’s shale patch after a pipeline is set to connect Vaca Muerta with a terminal at Punta Colorada port capable of handling the so-called very large crude carriers (VLCCs).

Argentina is also moving a step closer to exporting LNG and monetizing its huge resource in Vaca Muerta after maritime LNG infrastructure firm Golar LNG signed a 20-year deal with Pan American Energy (PAE) for the deployment of a Floating Liquefied Natural Gas (FLNG) vessel in Argentina.

By Tsvetana Paraskova for Oilprice.com


TotalEnergies Set to Develop $9 Billion Suriname Oil Resources

French supermajor TotalEnergies has started to scour the market for deepwater rigs and support vessels to begin development of massive resources discovered offshore Suriname, anonymous sources with knowledge of the tenders told Bloomberg on Friday.

Exploration and resource development in the Atlantic Basin is now alive more than ever, following the huge developments offshore Guyana led by ExxonMobil and the plans of TotalEnergies to tap the discovered resources in Guyana’s neighbor, Suriname.

TotalEnergies, which partners with APA Corp offshore Suriname, has already made several discoveries in the area. The companies are expected to make as early as next month the final investment decision (FID) to develop part of the resources, according to Bloomberg’s sources.

TotalEnergies has reportedly ordered a hull for a 200,000-bpd production vessel, the clearest sign yet that the French supermajor would be moving to develop the project.

“They have reserved this hull,” Annand Jagesar, managing director of Suriname’s state oil company, Staatsolie, told Bloomberg.

“You’re not going to pay a lot of money for that to have it sitting around,” Jagesar added.

TotalEnergies and APA plan to make the final investment decision on the Block 58 project by the end of 2024, targeting first oil in 2028.

Crude oil discoveries in Suriname have opened access to some 2.4 billion barrels in reserves, Wood Mackenzie analysts have estimated. The consultancy also reported the South American nation holds some 12.5 trillion cubic feet in natural gas reserves.

A total of nine offshore discoveries have been made in Suriname in the last six years but commercial development of any of them is still in the future. 

Suriname is often seen as a candidate for a repeat of Guyana’s oil boom since the two neighboring countries share one hydrocarbon basin. However, exploration efforts have taken longer in Suriname and the colossal success of Exxon with the Stabroek Block and its dozen discoveries has yet to be replicated in Guyana’s neighbor.

By Charles Kennedy for Oilprice.com

 


 HEWERS OF WOOD, DRAWERS OF WATER

Canada’s Role in Global Energy Supply Critical for U.S., Says RBC Chief

RBC CEO Dave McKay believes Canada plays a critical role in the energy security of the United States, especially when it comes to supplying oil and gas to Asia. Speaking in Toronto, McKay highlighted that while the U.S. focuses on "Buy American," they rely on Canadian energy to meet global demands.

The United States needs Canada’s energy resources—particularly oil and LNG—to support Asia, which allows the U.S. to divert its energy supplies to Europe, according to McKay. Canada’s Trans Mountain pipeline expansion and upcoming LNG exports will be keyplayers in this dynamic.

Asia’s demand for cleaner energy, especially natural gas, is growing rapidly. The U.S. Energy Information Administration (EIA) projects a significant rise in Asian oil and gas demand through 2050, with Canada in a prime position to capitalize.

However, McKay warned that federal policies, such as the proposed oil and gas emissions cap, could limit Canada's production, undermining its ability to meet growing demand. He emphasized the need for Canada to continue leveraging its vast energy resources while pursuing a balanced approach to clean tech and emission reductions.

Canada must strike a balance between traditional energy exports and cleaner energy solutions, especially as the world faces increasing energy demands and climate challenges, McKay said.

The exponential growth of artificial intelligence is posing a challenge for energy that is expected to account for 3.5% of global electricity consumption by 2030. In the United States, data centers could reach 9% of electricity generation by the end of the decade—double their current levels. To meet this demand, more renewables and simply more energy production in general will be needed to avoid crippling energy shortages.

By Julianne Geiger for Oilprice.com