FRACKING

PetroChina Looks To Double Shale Gas Output By 2025

By Irina Slav - Dec 30, 2020


State energy giant PetroChina plans to increase the natural gas output from its shale operations in the Sichuan province twofold to over 22 billion cubic meters in the next five years, Reuters reported, citing state Chinese media.

China has been looking to boost domestic natural gas production in the face of rising demand and with it, rising dependence on imports. Most recently, Beijing eased restrictions on foreign companies to invest in the country’s gas industry and offered subsidies for natural gas developments.

The incentives include extending the period for exploration for the companies to five from three years, and allowing foreign oil and gas firms to directly operate in the country as long as they have an office registered in China.

China has abundant shale gas reserves, but the geology is tricky, making the development of these reserves challenging. Despite the challenges, PetroChina alone last year announced new additions of almost 741 billion cubic meters to its shale gas reserves in the Sichuan province.

This year, PetroChina drilled more than 240 new wells in Sichuan, which boosted its daily gas production in the province by 40 percent. Earlier this month, the state major announced a new shale gas discovery in the Xinjiang province, with reserves estimated at more than 100 billion cubic meters.

The other state energy major, Sinopec, also has ambitious plans for natural gas, expecting total output of 30 billion cubic meters this year, to rise to 40 billion cubc meters by 2023, representing half of the company’s total hydrocarbons production.

Boosting domestic gas production, including from shale deposits, has become essential for China as it has seen its gas imports rise from 15 percent of supply in 2010 to as much as 45 percent in 2018. Thanks to its efforts in this respect, Rystad Energy recently reported that China will become the top market for seismic exploration onshore over the next two years, while exploration activity remains subdued elsewhere in the world.

By Irina Slav for Oilprice.com

WHY?

Cambodia Prepares To Produce Its First Oil

By Felicity Bradstock - Jan 02, 2021


As Asian oil demand looks set to increase over the next decade, Cambodia is taking advantage of the opportunity with its first crude oil production. Cambodia’s plan is to extract oil from the Gulf of Thailand oil fields in a joint project with Singapore's KrisEnergy Ltd, a plan that has seen several years of delays.

The development was announced by Prime Minister Hun Sen on social media, "The year 2021 is coming and we have received a huge gift for our nation — the first oil production in our territory". Going on to say, “Key benefits include national budget revenue, economic benefits from the diversification of the oil industry and national capacity building in this sector”. This came after production started in the region on Monday.

The venture was initially proposed in 2017 when KrisEnergy and the Cambodian government signed a pact to develop 3,083 square kilometers of the Khmer basin in the Gulf of Thailand, also known as Block A. The government hopes this project will earn around $500 million in revenue in the first phase of the project, with an initial production rate of 7,500 bpd.

KrisEnergy already has several ongoing exploration, appraisal, development and production projects across Asia, in Bangladesh, China, Thailand, Vietnam and Indonesia. The company hopes to increase its Asia portfolio with a 95 percent stake in block A, having purchased Chevron’s stake in the zone for $65 million in 2014.

Oil was initially discovered in the region in 2004 by U.S. energy giant Chevron. Despite this early discovery, Chevron was unable to reach an agreement with the Cambodian government to develop its oil capabilities. Additionally, due to the drop in oil prices in 2014, few companies have been willing to invest in the unestablished oil region.

The project is not without risk, with the production commencing in the midst of a global pandemic that has significantly threatened oil demand. However, the government believes there to be hundreds of millions of barrels of crude in Cambodia’s waters, making the outlook promising.

The drilling program is expected to be completed by February 2021. The exploration and production of oil in Block A is being carried out in phases to collect and assess data to mitigate risk, due to the unknown production performance in the basin.

Cambodia currently produces three-quarters of its energy needs, split between around 44% coal production and 45% hydropower. Earlier in 2020, Cambodia announced plans for the future of its energy industry, embracing new coal power projects. The Cambodian government stated plans to triple the country’s coal output in the coming years. The move comes following failures in Cambodia’s hydropower industry due to drought.

However, Cambodia’s reliance on fossil-fuel over renewable alternatives has led the country to appear less attractive to international brands that manufacture in the country. Companies worry that Cambodia will not keep up with international trends and that it is not considering environmental concerns for the future of its energy, with no clear renewable energy target stated at present.

In contrast, neighboring country Vietnam is embracing its solar potential with production levels increasing from 100 megawatts to 4.5 GW between 2016 and 2019. A clear move to renewables going into the next decade therefore makes Vietnam a more attractive option for many international brands.

As Cambodia’s hydropower industry is faltering in the face of drought, its new oil potential could offer a bright alternative for the country’s energy future. While the government has faced criticism over its move to increase coal output, the new oil venture looks set to improve Cambodia’s energy outlook.

By Felicity Bradstock for Oilprice.com

Felicity Bradstock is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.

Will Batteries Kill Off Traditional Power Plants?

By Alex Kimani - Dec 28, 2020

Many of us typically do not give much thought to the batteries that power our electronic devices other than when our cell phones, laptops, or EVs run out of juice. Fewer still associate them with our power supply since they tend to be tucked away from sight and are not nearly as imposing as the towering smokestacks of fossil fuel power plants.

Yet, the humble lithium-ion battery is beginning to threaten coal and natural gas power plants as utilities everywhere increasingly plug them into the electric grid.

Indeed, there’s an unfolding trend whereby cheap grid-scale batteries are beginning to replace fossil fuel power plants as the more economical option for supplying extra power during times of peak usage thanks to falling costs. The trend is gaining serious momentum as the transition to renewables shifts into higher gear.

The U.S. Energy Information Administration (EIA) has reported that there were 125 battery storage systems deployed in the United States, accounting for 869 MW of installed power capacity in 2019, a sharp increase from 7 systems accounting for 59 megawatts of power capacity just a decade ago.

In other words, Big Battery is beginning to rival Big Oil for dominance in our power grids, partly thanks to quirks in our power usage patterns.

Peak demand is pricey

Variations in the amount of electricity we consume according to the time of day, between weekdays and weekends, and seasonally can be huge.

For instance, peak power consumption in many regions is nearly double the average amount of power they typically consume. To meet the surge in demand, utilities mostly rely on natural gas-powered plants due to their ability to operate as and when needed and also because of their lower construction costs. However, this practice is expensive and inefficient - and the consumer ends up bearing the extra costs.Related: The Worst Performing Energy Stocks Of 2020

For instance, the California Public Utilities Commission requires all major utilities such as Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric to hike electricity prices during weeknights between 4 p.m. and 9 p.m. and also during summer. They also require them to lower costs during non-peak hours and over the winter. The new regulation, also known as time-of-use pricing, is meant to curb the high demand for electricity in the evenings, which forces utility companies to activate additional generators that rely on fossil fuels and release greenhouse gases. Electricity is also more costly to produce during this time. Further, increasing bouts of extreme weather are proving to be costly for utilities, with droughts reducing hydropower, and heat waves causing electricity usage to spike.

But maybe all that California needs is to deploy more battery storage.

When grid-connected batteries supply enough electricity to meet peak demand, utilities neither have to build as many power plants and transmission lines nor fire devices that emit copious amounts of planet-warming gases.

Cheaper batteries

Despite the nearly 15-fold increase in battery-based capacity additions over the past decade, grid-scale lithium-ion battery projects in the U.S. amount to the equivalent of just two medium-sized gas-powered plants.

The United States boasts approximately 1.2 million megawatts of generation capacity, with natural gas accounting for 44% of that, followed by coal at 21%. In other words, the country’s entire grid-scale lithium-ion battery network has a capacity equivalent to just 0.16% that of natural gas.

However, the momentum is clearly shifting to battery storage.

Across California, Texas, New England, and the Midwest, battery grid storage has been proven to be an effective solution for improving operations and bridging gaps when consumers need more power than usual.

Luckily, battery costs as well as solar and wind power costs have come down quite dramatically over the past half-decade. Whereas lithium-ion batteries at 2019 prices are still more expensive than natural gas peaker plants, the battery cost trajectory suggests that by 2030, energy storage will be the more cost-effective option.

Source: The Conversation

As usual, California is leading the way in the green trend of hooking up giant storage systems to power grids.

Pacific Gas & Electric has already received the green light from regulators to build a massive 567.5-megawatt energy-storage battery system near San Francisco, though its bankruptcy could complicate matters.

Hawaiian Electric Company is seeking regulatory approval for a similar project that could establish several hundred megawatts of energy storage. Meanwhile, Puerto Rico Electric Power Authority and Arizona Public Service and both exploring storage options as well.

The mega-battery trend could also mean big business for Tesla Inc.’s (NASDAQ:TSLA) SolarCity.

A month ago, Tesla, in partnership with French renewable energy company Neoen, won yet another contract to install another giant battery storage facility for the Australian Energy Market Operator (AEMO). The 300 MW/450 MWh Victorian Big Battery Project in Geelong will use Tesla’s Megapack technology. Independent analysis has shown that for every $1 invested in the giant project, Victorian homes and businesses will reap more than $2 in benefits.

Neoen’s Hornsdale Power Reserve was able to deliver more than $150 million AUD in cost savings during its first two years of operation.

By Alex Kimani for Oilprice.com

Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com

ISN'T EVERYBODY

Russia Looks To Become Leader In Hydrogen Tech

NATURAL GAS = HYDROGEN

By Vanand Meliksetian - Dec 30, 2020

Russia’s mineral and energy wealth has given it a second chance in global affairs after the Cold War and the implosion of the Soviet Union. Oil and gas exports have provided the necessary income to rebuild the country and exert influence abroad. The energy transition is the ‘Sword of Damocles’ hanging over the Russian fossil fuel industry. Moscow, therefore, is trying to find a new purpose for its energy industry by early investments in hydrogen technologies.

Russia’s energy ministry is working on a hydrogen strategy in cooperation with foreign partners in Japan and Germany. The tools for this transformation are the country’s energy titans Rosatom, Novatek, and Gazprom. Each of these companies, with the support of Moscow, is looking into different technologies to produce and export the hydrogen.

According to deputy prime minister Alexander Novak, “experts say that hydrogen may constitute 7 to 25 percent of the global energy balance by 2050, as soon as the issues of high production costs and the challenges related to transportation are resolved.”

To develop a hydrogen sector, Russia intends to use the assets it already possesses such as the world's largest natural gas reserves, strong nuclear know-how, and high-class energy research facilities. The country’s energy mix is a reflection of the current state of affairs.



Russia has one of the world’s largest nuclear plant fleets which is built and operated by state-owned Rosatom. A significant order portfolio for new plants both domestically and abroad is an incentive to develop and improve existing technologies. Therefore, nuclear energy is seen as an asset which through the process of electrolysis could be used to produce ‘yellow’ hydrogen.

Russian and Japanese officials and representatives of their respective industries are already in talks for cooperation opportunities. In this regard, Rosatom and Japan’s Kawasaki Heavy Industries intend to export the first shipment by 2024. The Japanese intend to expand their knowledge of the industry and build on the experience of importing hydrogen from their enterprise in Australia that will start operations in 2021.

Furthermore, Novatek, Russia’s largest independent gas producer, is already looking for new opportunities to supplement its LNG activities. According to CEO Leonid Mikhelson, the company is planning to build steam-methane reforming facilities on the Yamal peninsula to produce hydrogen. Additional carbon capture and storage projects will be required to produce so-called ‘blue’ hydrogen and meet the necessary standards. Mikhelson expects hydrogen to represent “a noticeable share in global energy consumption between 30 and 40 years from today.”

Russia’s unchallenged gas champion Gazprom, however, is pursuing a different path. The company already operates extensive pipeline infrastructure to Europe and is expanding capacity to China. Due to the lifetime of the pipelines, hydrogen could be used to extend operations well after natural gas has been phased out. Before pure hydrogen can be pumped, admixing is a good alternative to reduce the carbon footprint and meet the requirements of customers.

The technology Gazprom is looking into, however, is a process called methane pyrolysis. For this technique, natural gas is still used as the starting point of the process but the byproduct is different from methane reforming. By using heat, natural gas molecules are broken down into hydrogen and carbon which is not gaseous but solid. The carbon then can be used for other industrial processes and increase the value of the process.

Lastly, while renewables are not a big part of Russia's energy mix and the government hasn't announced ambitious plans, there is a bright future for wind in the country. Especially the coastal regions in the northwest are highly suitable for ‘green’ hydrogen production through electrolysis. The existing natural gas pipelines could be reused to pump hydrogen to consumers.

Despite the potential and intentions to become a hydrogen exporter, there is a very long way to go. Russia is one of the country’s most seriously affected by the energy transition due to its sizeable fossil fuel exports. Moscow realizes, therefore, that the current modus operandi is not sustainable. The current hydrogen plans are imperative to diversify the economy and develop new industries.

By Vanand Meliksetian for Oilprice.com

Vanand Meliksetian has extended experience working in the energy sector. His involvement with the fossil fuel industry as well as renewables

 

Robots Are Creating The Super Batteries Of The Future

By Irina Slav - Dec 31, 2020

Artificial intelligence and robots are a hot topic of discussion, especially in the context of automation and job loss for humans. But they are also helping humans with a lot of jobs, including battery research.

The development of bigger and better batteries has somewhat suddenly become a top priority for energy researchers as the world moved in a renewable energy direction. Solar and wind—the most abundantly publicized forms of renewable energy—require storage facilities to become truly competitive with the fossil fuels they are replacing.

Then there are electric vehicles, which many consider the spearhead of the energy revolution as a sizeable chunk of global oil demand is actually demand for transportation fuels. The mass adoption of EVs could remove millions in barrels from daily oil demand and reduce global emissions substantially.

No wonder then that labs all over the world are working on batteries: bigger batteries, more efficient batteries, and last but not least, cheaper batteries. Cost is still an issue for both EV batteries—and EV prices as a consequence—and for battery storage for solar and wind farms. And now, researchers are using artificial intelligence to help them with the task.

Scientists from the Joint Center for Energy Storage Research, a division of the Department of Energy, are using computational screening and robots to develop a new generation of batteries that may some day replace the dominant lithium-ion technology, Jeff McMahon wrote in an article for Forbes recently.

JCESR researcher's focus is on energy storage for the grid and, more specifically, an organic flow battery that, according to JCESR Director George Crabtree, could be more efficient and cheaper than lithium-ion batteries because it would be made from chemical elements that are available in abundance and are therefore cheap. They only had to pick the right elements, which is where artificial intelligence and robots came in.

"There are thousands, maybe hundreds of thousands of candidates out there," Crabtree said earlier this month, as quoted by McMahon, at an industry event. "We just haven't found the right one yet."

So the team used computational screening to select the best candidates for their battery by simulating hundreds of thousands of combinations of elements until they found the best molecule to use in their battery. Then they used artificial intelligence to help tick off requirements regarding properties such as solubility, stability, and multi-electron transfer, McMahon writes. Finally, to synthesize the molecules to use in the flow battery, the researchers enlisted the help of robots.

"You could then have automatic synthesis. So the laboratory, using a robot, would make the material—automatic characterization, run it through lots of machines, send that information back to the artificial-intelligence brain here to score the material," Crabtree explains. "Did it actually work? If it failed I wonder why it failed; let's try something else. So it actively learns from every cycle of this synthesis route. And this is what's coming to the fore."

European researchers are also working on organic flow batteries, aiming to produce one that will store energy at a cost of less than $0.12 (0.10 euro) per kWh per cycle, PV Magazine wrote recently. The purpose of the 40-month project is to provide a battery that is both cheap and environmentally sustainable while still providing longer duration than currently available batteries and more energy density.

Such a set of requirements may seem mutually exclusive at this point, but the research highlights the drawbacks of existing batteries and how they are interfering with governments' ambitious energy transition agenda. Cost and duration are the two big problems that need to be solved to make large-scale storage a reality and renewables the dominant form of energy generation.

By Irina Slav for Oilprice.com

WHEN THE SOLUTION IS WORSE THAN THE PROBLEM

Fracking Could Save Colombia From Economic Crisis

By Matthew Smith - Dec 30, 2020, OILPRICE.COM

Colombia country is facing its worst economic catastrophe of modern times because of the global COVID-19 pandemic. The IMF believes that the strife-torn Latin American country’s economy will shrink by over 8% during 2020 with some analysts predicting that the contraction could be even worse predicting a 10% drop in gross domestic product. The threat of an extensive economic crisis and stalled recovery is heightened by low proven oil and natural gas reserves, a sustained oil price slump, weak investment inflows, and softer hydrocarbon production. For almost a decade, hydraulic fracturing has been positioned as a means of resolving many of the issues confronting Colombia’s hydrocarbon sector and petroleum-dependent economy. There are signs after nearly 10 years, fracking could become a reality for Colombia’s economically crucial oil industry. The controversial technique could resolve many of the risks faced by the industry and head-off Colombia’s emerging economic crisis. Data from the government statistics agency DANE (Spanish) points to a sharp economic contraction. After modest pre-pandemic first quarter 2020 GDP growth of 1.2% year over year, economic activity declined considerably with second-quarter GDP plunging almost 16% followed by a 9% third-quarter decline. According to DANE, Colombia’s GDP (Spanish) contracted by 8% year over year for the nine months ending 30 September 2020, indicating that the economic contraction may be worse than predicted by the IMF. This substantial unprecedented contraction caused unemployment to soar, peaking at 21.4% in May 2020 before falling to 14.7% for October. There are fears of worse ahead for a country that a decade earlier had emerged as one of Latin America’s economic success stories.

On a troubling note, soft first quarter 2020 GDP data and double-digit unemployment rate of 13% for January 2020 indicates Colombia’s economy was slowing before the global pandemic arrived. That can be blamed on the sustained oil price slump that commenced in August 2014. Despite having some of the lowest oil reserves, totaling just over 2 billion barrels, of any major oil-producing nation in Latin America, Colombia’s economy is highly dependent on petroleum. Prior to late-2014 crude oil was responsible for 57% of all exports by value, 4% of GDP and earning around a fifth of government revenue. Once the current oil price slump commenced Colombia’s economy came under significant pressure with the peso weakening, government revenue falling and growth declining to levels not seen since the 2009 Great Recession.

Sharply weaker oil prices are weighing on Colombia’s economy, investment inflows and oil as well as natural gas production. While the Andean country’s hydrocarbon sector has reactivated after one of the world’s lengthiest COVID-19 lockdowns, production is weak. By October 2020, Colombia was pumping an average of 751,374 barrels of crude oil daily which was 15% lower than a year earlier and well below the 2031 record high of 1,008,178 barrels daily. Natural gas production has also declined, falling almost 2% year over year to 1,091 million cubic feet daily. The Andean country’s average crude oil output for the first 10 months of 2020 reached 785,527 barrels daily while natural gas was 177,415 barrels of oil equivalent daily. This is well below the annual average of 885,863 barrels of oil and 184,675 barrels-equivalent of natural gas daily pumped during 2019, which was the highest level of production since 2015.

Source: Colombia Ministry of Mines and Energy and U.S. EIA.

The economic threat posed by Colombia’s low oil and natural gas reserves is immense. Latin America’s third-largest oil producer only has proven reserves (Spanish) of just over 2 billion barrels of oil and 3.1 trillion cubic feet of natural gas with a production life of 6 years and 8 years, respectively. There have been no major onshore conventional hydrocarbon finds in Colombia since 2009. The economy’s dependence on petroleum is highlighted by the Andean country’s GDP expanding by an impressive 5.1% for 2013 when oil production hit a record high of just over 1 million barrels daily. During that year, the international oil price benchmark Brent averaged $108.56 a barrel or more than double its current market price. By 2017 when Brent averaged $54.25 per barrel and oil output had softened to an average 853,578 barrels daily, GDP grew by an unremarkable 1.4% or less than a third of the rate experienced four years earlier.



Source: DANE, Colombia Ministry of Mines and Energy and U.S. EIA.

Sharply weaker oil prices coupled with diminishing oil output led to sharp budget cuts, higher deficits and growing sovereign debt. The economic crisis emerging in Colombia is underscored by a sharp decline in government revenue for the first half of 2020 which plunged almost 2% compared to the same period a year earlier. Combined with increased spending and crumbling taxation revenue this saw the budget deficit blowout to 8% of GDP. Stimulus spending, aimed at mitigating the impact of the pandemic on the economy, is being funded by debt. Central Bank data shows total central government debt at the end of 2019 was around $137 billion or 55% of annual GDP. That is expected to balloon out by at least 10% during 2020 as Bogota struggles to increase income and fund stimulus spending aimed at restarting the economy. As Colombia’s sovereign debt load increases it will weigh on attempts to return the economy to growth, reduce unemployment, and bolster government revenues.

Attracting oil industry investment is an important means bolstering oil and natural gas production, growing hydrocarbon reserves, lifting government revenue, and strengthening economic growth. It is believed that fracking offers the most potential for achieving those goals and bolstering Colombia’s energy security. Since taking office in August 2018 President Duque has been a vocal proponent of the controversial hydrocarbon extraction technique, seeing it as a silver bullet for Colombia’s economy. The commercial development of fracking has the potential to be a game-changer for the Andean country’s oil industry because national oil company Ecopetrol estimates that Colombia possess up to 12 billion barrels of recoverable shale oil and 100 trillion cubic feet of natural gas resources. It is believed that fracking will triple or even quadruple Colombia’s proven oil and natural gas reserves.

There is, however, substantial domestic opposition to fracking. Despite oil industry regulator, the National Hydrocarbons Agency (ANH – Spanish initials), completing shale block auctions as far back as 2012, hydraulic fracturing has yet to become commercially operational in Colombia. In 2018, as the central government and the ANH moved ahead with plans to, yet again, promote unconventional oil exploration and production, Colombia’s highest administrative tribunal placed a moratorium on the technique which it upheld in September 2019. The court determined, however, that the ruling did not prevent investigative projects and in September 2020 it rejected (Spanish) a bid to ban fracking pilots in Colombia.

In November 2020, Ecopetrol secured the rights to a fracking pilot in the Middle Magdalena Valley through an auction of three unconventional land packages by the ANH. There is still considerable uncertainty surrounding the pilot because Colombia’s environmental regulator has yet to approve the project. There is no guarantee it will be approved when it is considered that in July 2019 the environmental regulator suspended the licensing of Ecopetrol’s APE Guane A fracking operation in the Middle Magdalena Valley. Ecopetrol was the only energy company to participate in the ANH auction, underscoring how the uncertainty surrounding the future of fracking in Colombia is deterring investment in unconventional hydrocarbon assets by foreign energy companies. This points to the ANH’s next auction of three fracking pilot contracts also foundering. That makes Ecopetrol the key driver of the development of Colombia’s unconventional oil potential. The state-controlled integrated energy major plans to invest almost $77 million in the Middle Magdalena Valley unconventional oil and natural gas Kale project.



Source: Ecopetrol.

Ecopetrol believes the Middle Magdalena Valley has 4 billion to 7.4 billion recoverable barrels of oil equivalent. Ecopetrol has earmarked $600 million in its 2021 budget for unconventional plays, although most of that will be directed to its operations in the Permian where it has partnered with Occidental Petroleum.

While commercial fracking will be a game changer for Colombia’s oil and natural gas sector the controversial hydrocarbon extraction technique is surrounded by considerable controversy, opposition and uncertainty. When that is coupled with a lack of social license, legal moratoriums, and serious security issues it is clear why foreign energy companies are reticent to invest in unconventional oil and natural gas projects. It is thus unlikely that fracking will be the urgently needed silver bullet for Colombia’s troubled economy, or that Bogota will benefit from the tremendous additional hydrocarbon production and revenues that fracking has the potential to generate.

MONOPOLY CAPITALI$M
Merger Mania Is Transforming Canada’s Oil Scene

By Felicity Bradstock - Dec 31, 2020

Canada’s oil landscape looks encouraging for 2021 as Whitecap Resources Inc. acquires two oil and gas companies in addition to mergers between other energy companies, with anticipated growth through the coming year as demand for energy steadily increases. In November, Whitecap Resources announced a plan to acquire rival company TORC Oil & Gas through an all-stock transaction of $704.12m equivalent. The deal is expected to go through by 25 February 2021, providing an encouraging outlook for the first quarter of next year.

This merger would mean an estimated 100,000 bpd equivalent in production making it one of Canada’s major players. The expected value of the combined company is around $3.13 billion.

Since demand for energy has steadily increased since the slump in early 2020, so has Whitecap’s share price, going from C$2.29 ($1.80) in early July to C$4.96 ($3.89) in December, with a market cap of C$2.025 billion ($1.58bn) on the Toronto stock exchange.

Whitecap CEO Grant Fagerheim stated of the acquisition, “We are combining two strong Canadian energy producers to form a leading large-cap, light oil company geared towards generating sustainable long-term returns for shareholders while prioritising responsible Canadian energy development’”.

The TORC acquisition comes just months after Whitecap announced its plan to buy NAL Resources for nearly $119 million in August. Manulife, an insurance and financial company, will have a 12.5 percent stake in the combined company as Whitecap issues it with 58.3 million shares. The move to acquire both companies drives forward Whitecap’s aim to increase its Alberta and Saskatchewan assets and operations.

Smaller energy companies across Canada have been showing interest in mergers throughout 2020 as a means to bolster their portfolios, in response to the volatile oil market this year.

In October, Cenovus Energy and Husky Energy agreed to an all-stock transaction, valued at $2.9 billion, to undergo a merger. The move will make the combined company the third-largest oil and natural gas producer as well as the second-largest refiner and upgrader in the country, at a total value of $17.97 billion and a production level of 750,000 bpd equivalent. The company is expected to operate out of Calgary, Alberta.

Additionally, Obsidian Energy proposed a combination transaction to Bonterra Energy Corp. in August, with a plan to issue up to 72.3 million shares, giving Bonterra a 48 percent stake in the combined company. Bonterra is yet to agree to the proposal, but this could all change as the deal will be on the table until 4th January 2021.

In July, top independent U.S. oil producer ConocoPhillips announced it would buy Canadian land from Kelt Exploration Ltd at $375 million. Kelt’s 140,000 acres in British Columbia is directly next to ConocoPhillip’s Montney lands, providing greater oil production potential at an estimated 1 billion bpd equivalent.

ConocoPhillips previously sold much of its Canadian assets to Cenovus Energy in 2017, in the move to withdraw foreign producers from Canada. However, given the dire situation – battling pandemic restrictions and the significant decrease in the price of oil, small companies are turning to external actors for a bailout.

Mergers between small Canadian oil and gas companies with bigger Canadian and U.S. players through the trade of stocks has helped them to battle the 2020 decrease in energy demand. Going into 2021, these newly combined companies are expected to play a big role in Canada’s oil sector.

By Felicity Bradstock for Oilprice.com

FELICITY BRADSTOCK is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.

Monthly Review | What Is Monopoly Capital?

POSTMODERN ALCHEMY

How Gold, Silver And Platinum Are Used In The Battle Against

COVID-19

By MINING.com - Jan 02, 2021,

As covid-19 spread across the globe last spring, investors rushed to precious metals as a financial safe haven. Gold rose to over $2,000 by early August, up more than 30% from the start of the year. Silver surged more than 50% over the same period, reflecting the common correlation among precious metals during times of financial uncertainty or volatility. Providing financial protection is not the only role that precious metals are playing in the fight against covid-19. The metals also have broad applications in the medical field, well beyond the dental uses most people associate with them.

Combatting covid-19: gold, silver and platinum

Researchers have developed drugs and tests that use silver to detect and protect against the virus. Serological assays, a type of blood test, employ silver and gold nanoparticles to quickly determine if antigens exist in a patient’s bloodstream. These are critical in determining if the person is infectious and to ensure that donated plasma used to treat ill patients is safe.

Figure 1. Covid-19 serology tests (antibody tests)



Beyond silver’s diagnostic and therapeutic uses in the fight against covid-19, there are also trace amounts of silver in the fabric of some masks. While not anti-viral, silver does protect against other bacteria and eliminates odors, which helps when wearing the masks for extended periods of time.

Silver has been used for thousands of years to prevent microbial infections and was the most important antimicrobial agent in use before the introduction of antibiotics.

The fight against covid-19 highlights a trend: growing demand for precious metals in healthcare. This has particular relevance now, but also into the near future as the population continues to age. National health spending in the U.S. is expected to rise to 19.4% of GDP (gross domestic product) by 2027, or $6 trillion a year, representing a generational shift in spending. Precious metals, because of their unique physical attributes, are expected to play a role in this shift.Related: Russia Looks To Become Leader In Hydrogen Tech


The fight against cancer: gold and platinum Treatments for certain cancers employ gold and platinum. This role has the potential to grow, accelerated by recent breakthroughs.

Since its natural properties slow cells — both healthy and cancerous ones — from dividing, platinum (Pt) has long been used in chemotherapy treatments, including in drugs known as cisplatin and carboplatin. A downside to these platinum-based drugs is their non-specificity, which creates some of the adverse side-effects in chemotherapy, like hair loss.

Figure 2. Chemical structures of cisplatin and transplatin



Gold nanoparticles have become a focus of a new type of more targeted treatment. Researchers are testing therapies that use gold-silica nanoshells to target cancer cells, preventing the diseased areas from spreading. Similar to the platinum treatments, it essentially suffocates the diseased cells, but the gold nanoparticles are more effective in attacking the unwanted cells. This treatment has shown particular promise in prostate cancers, a disease that impacts about 11% of men.

Additional therapeutic uses

Gold nanoparticles (tiny spheres made of gold atoms with a diameter of only a few billionths of a meter) have also shown potential in the testing and treating of HIV/AIDS. In a study, researchers were able to detect the HIV virus, even in situations where the virus had little development. This brings hope of earlier detection. In an early study of monkeys with an HIV-like virus, gold nanoparticles reduced the number of infected cells. Though still very early days for this research, it provides some promising potential.

Gold has anti-inflammatory properties that help reduce joint inflammation and pain, and gold preparations were among the original treatments for rheumatoid arthritis (RA). Gold is also used in rapid tests for malaria, allowing doctors to test the disease within 20 minutes. This has value, particularly in parts of the world where there they lack access to labs.

Platinum and palladium have similar biological properties. While platinum is typically selected for many uses, palladium can stand in platinum’s stead for biological purposes.

Since precious metals are inert, they react with other chemicals in few naturally occurring environments. They are also electrically conductive, opening applications where the body or organs are stimulated directly. And they are strong, so they do not break easily. This has encouraged the broad use of platinum in catheters. Electrophysiology catheters, for example, use electrodes to measure cardiac muscle activity. The platinum electrodes make the device possible.

Figure 3. Gold nanoparticles support new drug development and drug delivery systems



A place in medical technology

Germs do not spread on a silver surface, due to its anti-microbial properties. This makes it an ideal component of many of the devices and tools one sees in a hospital. In fact, silver is much more useful in medical devices than in medicines because of its toxicity – too much silver in the body can cause Argyria, a blue or grey hue in the skin. But in the medical technology field, it has a place because of this germ-protective property. Staphylococcus aureus, a dangerous and highly infectious bacterium, spreads quickly in hospitals. To limit the spread, hospitals often use equipment lined with silver, from surgical tools to stethoscopes to even the furniture. Silver is also often incorporated in breathing tubes and catheters to protect against infections.

Platinum is also broadly used in medical devices, including stents and pacemakers, in addition to catheters. Platinum reduces the likelihood that the body will reject the devices. It also appears in X-rays, allowing healthcare workers to track the progress of the operation.

Platinum plays a critical role in neuromodulation devices, which help treat Parkinson’s patients’ neurological conditions by sending electric signals to the central nervous system. In these “brain pacemakers,” there is platinum in the electrodes and within some of the device’s components.

Figure 4. Platinum (Pt) is a critical components in implantable cardioverter defibrillator



Source: Johnson Matthey



The broader value of precious metals

The healthcare sector represents approximately 3-5% of the overall precious metals market. However, as our society ages and the need for healthcare applications increases, the use and demand for precious metals in medicine will continue to expand. This often overlooked contribution of precious metals to fighting disease speaks to the broader value of these metals and their critical multi-varied roles.

By Mining.com

Americans should prepare for ‘a revolt against the unprecedented inequality’

Last Updated: Jan. 2, 2021

First Published: Dec. 30, 2020 

By Shawn Langlois

GETTY IMAGES


“When the top 10%’s bubble pops in 2021, the loss of illusions/delusions of security and wealth will be shattering to all those who believed artifice and illusory ‘wealth’ were real.“

That’s Charles Hugh Smith, previously hailed by CNBC as one of the best alternative financial bloggers on the internet, offering up his unsettling outlook for the coming year.

“Those in America’s top 10% who have reaped virtually all the gains in income and wealth of the past 20 years live in a bubble that they view as unbreakable: no matter what problems arise, their personal income and wealth is secured by the government, central bank, etc,” he said.

In other words, those at the top of the wealth-power pyramid are confident any financial pain will quickly be soothed by the Federal Reserve and its willingness to keep printing money.

“Any spot of bother in the gravy trains that fund the top 10% — local and state government, universities, Big Tech, Big Pharma, Department of Defense, Wall Street, hedge funds, venture capital, etc. — will be doused with trillions of dollars borrowed or printed into existence by the Treasury or Fed,” he wrote on his Of Two Minds blog. “No matter what spot of bother arises, the solution — more trillions — is just a few keystrokes away.”

While that has, indeed, been mostly true for years now, Smith pointed to the folly in that thinking.

“We cannot print wealth, or borrow it into existence,” he continued. “All we can print/borrow is artifice, phantom representations of illusory ‘wealth’ that will vanish into thin air, in a reverse of how the ‘money’ was created — out of thin air.” This will lead to assets of the elite getting “crushed” without the backstop of liquidity. Stocks, he warned, “will go bidless as phantom wealth dissipates.”

Ultimately, Smith envisions a shake-up of the status quo in which the drying up of the Fed money flow is only one factor in a larger unwind.

“On top of this myopic belief that their success is all the result of their own endeavors rather than a tide of financialization, the top 10% are equally blind to the toxic consequences of the wealth/income inequality that has so richly benefited the few at the expense of the many,” he wrote. “But tides do not run in one direction forever, and a revolt against the unprecedented inequality that heavily favors the top 10% is not ‘impossible,’ it’s a certainty.”

Soon, he said, the bottom 90% will demand fairer distribution of wealth and a system that functions for the greater good, instead of “parasites” and “leeches” further lining their pockets.

“Not only will their lifeboats prove unstable, every level of government will come after whatever is left as taxes will soar on virtually every form of income and wealth,” Smith went on to explain in his blog post. “The comfortable are about to experience some of the discomfort that is everyday life for the bottom 60% and an increasing percentage of the next 30% who still aspire to fantasies of middle-class security.”


As it stands now, such a reckoning in the stock market will have to wait, as the Dow Jones Industrial Average DJIA, +0.65% was up triple-digits on Wednesday in its penultimate trading session of 2020. The Nasdaq Composite COMP, +0.14% and S&P 500 SPX, +0.64% were also higher.

Oliver Stone Says Vaccinated With Sputnik V, 

Slams the West For 'Ignoring' Russian Vaccine

© AP Photo / Joel C Ryan

by Daria Bedenko

Sputnik V, developed by the Gamaleya Institute and the Russian Direct Investment Fund (RDIF) is the first anti-coronavirus vaccine registered in the world. According to the latest survey, the vaccine demonstrates 100 percent efficacy in grave cases of COVID-19 and 91.4% general efficacy after the third stage of clinical trials.

American film director Oliver Stone on Monday voiced his support for the Russian-made coronavirus vaccine, Sputnik V, revealing that he has been vaccinated with the first shot of the two-part vaccine.

He added that he does not understand why Sputnik V is being ignored by the Western countries.
"I got vaccinated a few days ago. I don't know how effective Russian vaccine is yet, but I heard a lot of positive things about it", Stone told Russia's state TV. "I have to get a second shot... [] I think your vaccine is useful. I don't understand why they ignore it in the West, the media is just silent about all the information".

Stone is currently shooting a new film in Russia's Sverdlovsk oblast. Winner of the Oscar, BAFTA and Golden Globe awards, the director is famous for many works including "Platoon" and "Midnight Express", as well as multiple documentaries.

The American film director in particular has created a series dedicated to three American presidents - John F. Kennedy, Richard Nixon and George W. Bush, released a film and a book named "The Untold History of the United States" and interviewed Russian President Vladimir Putin - a move that prompted criticism towards Stone regarding what some suggest could be interpreted as "advocacy projects towards Putin".

Sputnik V is the first coronavirus vaccine registered in the world, with the third stage of clinical trials confirming its efficacy against COVID-19 at a level of 91.4 percent. The vaccine, developed by the Gamaleya Institute and the RDIF was registered on 11 August. At least 50 countries have since ordered 1.2 billion doses of Sputnik V.

BUT ITS SCIENTIFIC EVIDENCE FOR EFFICACY HAS NOT BEEN PUBLISHED IN ANY WESTERN MEDICAL PEER JOURNALS SO WE ARE WAITING

Russia gives over 800,000 people its COVID-19 vaccine
BY CELINE CASTRONUOVO - 01/02/21 

© Getty

Russia’s health minister on Saturday announced that more than 800,000 citizens have received the country’s coronavirus vaccine, with more than 1.5 million doses distributed. 

Reuters reported that the TASS news agency quoted Mikhail Murashko as saying that from Jan. 1, people who received the Sputnik V vaccine will receive an electronic verification certificate, with the health ministry maintaining a database of all those vaccinated. 

Russia has the world’s fourth-highest number of COVID-19 cases, with nearly 3.2 million people infected and more than 57,000 fatalities due to the virus, according to data compiled by Johns Hopkins University. 

However, Russian officials on Monday said that the country’s death toll is three times higher than initially reported, meaning the actual number of COVID-19 fatalities could be more than 186,000 people. 

According to Reuters, Sputnik V’s two doses use different components and must be administered 21 days apart. 

The Russian vaccine, which began its rollout in early December, was found by developers to have a 91 percent efficacy rate at preventing COVID-19 after two doses. 

However, the inoculation has received skepticism from some health experts, as the Kremlin announced the vaccine’s registration before all clinical trials were completed. 

Despite this, the Russian vaccine has already been distributed to other countries. 

On Tuesday, Argentina and Belarus began their rollouts of the Sputnik V vaccine, with around 300,000 Argentinians expected to be vaccinated. The Latin American country anticipates receiving 20 million doses within the next two months.

Venezuela also signed a contract this week to acquire enough doses of the Sputnik V vaccine to inoculate 10 million people, Venezuelan Vice President Delcy Rodríguez said, according to Reuters. The country began administering doses in October as part of a clinical trial.

Russian state media reported last week that President Vladimir Putin was slated to receive the vaccine, despite previously suggesting that there was no reason for him to be vaccinated. 

Putin previously said that one of his daughters took part in a clinical trial for the Sputnik V vaccine in August.