Energy This Week: Venezuela election contest, Adnoc advances in China, & extreme heat epidemic

https://www.thenationalnews.com/newsletters/energy-this-week

Oil producer Venezuela saw disputed elections on Sunday, with the incumbent President Nicolas Maduro claiming victory despite the opposition saying they received 70 per cent of the vote. Independent observers pointed to intimidation and vote tampering. The Venezuelan economy had collapsed amid oil nationalisation, strikes, the drop in prices in 2014, and then stringent US sanctions in 2019. Some waivers of sanctions have permitted a slight revival of oil output over the past two years. However, the US administration will now probably reinstate the measures.

Egypt increased fuel prices by up to 15 per cent on Thursday, as part of International Monetary Fund-backed plans for economic reform and an elimination of fuel subsidies by December 2025.

Chinese economy takes down oil prices again

Oil prices endured another rough week, losing more than $1 per barrel, in the third consecutive weekly decline. They have fallen again so far this week. The main factor is concerns over Chinese economic performance, as apparent oil demand in the world’s biggest importer dropped 8.1 per cent year-on-year in June. This is partly offset by better-than-expected growth in the US, and hopes of an interest-rate cut as inflation subsides.

Adnoc advances in the Chinese market

Adnoc is moving ahead in the crucial Chinese market despite current economic weakness. Its chemicals joint venture Borouge expects a “bright future” in the country. A consortium teaming Borouge, Adnoc and Austrian chemicals company Borealis, in which Adnoc holds 25 per cent, will build a polyolefins complex in the province of Fujian. On Thursday, Adnoc signed strategic co-operation agreements with China National Offshore Oil Company and China National Petroleum Corporation on liquefied natural gas, low-carbon solutions and other areas.

'Extreme heat epidemic': UN Secretary General

Excessive heat continues to be the oppressive theme of this summer. The world experienced its hottest day on record on Monday last week, even though El Ni?o conditions that encourage warm conditions ended in April. UN Secretary General Antonio Guterres said, “Billions of people are facing an extreme heat epidemic, wilting under increasingly deadly heatwaves, with temperatures topping 50°C around the world.”

China and Japan have been hit by record-breaking temperatures, while serious wildfires hit Canada and Siberia. Iran closed banks, financial institutions and government offices across the country to save electricity, as Tehran hit 43°C and some cities approached 50°C. Iran has been struggling to meet electricity demand during summer heatwaves, compounded by gas shortages and drought affecting hydroelectric output.

Climate change could bring big problems for Europe – but it may be ice rather than fire. This could happen if the delicately balanced system of ocean currents that brings warm water to northern Europe is disrupted. Dust blown from the Sahara encourages rainfall from tropical cyclones over the Atlantic, but these winds may change to deliver less dust in future.

Fair wind for new UK government and King Charles

Abu Dhabi’s Masdar has paid $887 million to buy about 50 per cent share in the solar assets of Spain’s Endesa, totalling 2 gigawatts plus a planned 500 megawatts of battery storage.

The new UK government has immediately launched into energy policy, with plans for the new state-owned Great British Energy to team up with the Crown Estate of King Charles III to build more wind farms on its land.

King Charles, a long-time environmentalist, met Cop28 president and Minister of Industry and Advanced Technology Dr Sultan Al Jaber, and representatives of the next two Cop hosts, Azerbaijan and Brazil, in London’s Clarence House on Friday. Azerbaijan, one of the world’s oldest oil-producing nations, is working on a new climate plan as it prepares to host Cop29 in November.

Mangroves and culture are crucial parts of climate struggle

The UAE’s net-zero carbon plans depend significantly on its mangrove forests, which absorb vast quantities of carbon, as well as forming a haven for coastal and marine wildlife and protecting coastlines from flooding. Emirati values can support conservation, writes Maitha Al Hameli of Environmental Agency – Abu Dhabi. Monitoring and preserving mangroves, seagrass and corals is a crucial part of this. UAE-backed heritage protection group Aliph, after spending $90 million to save cultural sites threatened by conflict, now finds its work dominated by the dangers of climate change.

Deep-sea mining could be a crucial part of meeting the demand for critical minerals for new energy systems but faces opposition over potential damage to little-known ecosystems. New research shows metallic nodules on the seabed generating “dark oxygen”, a mysterious phenomenon.

Climate protesters block European airports

Last Wednesday, climate activist umbrella group Oil Kills attempted to block airports and runways across Europe, including London Heathrow, Barcelona, Cologne, Oslo and Helsinki, disrupting flights. Defence and aviation account together for about 10 per cent of greenhouse gas emissions, the Farnborough Air Show was told. However, sustainable aviation fuels are still considerably more expensive than petroleum-derived fuels, placing a burden on already stretched military budgets.

Warren Buffett’s Berkshire Hathaway has sold more shares in China’s leading electric car maker, BYD, in which it was an early supporter, 15 years ago. Turkey is offering a $30 billion package of incentives to attract advanced technologies, including in electric car-making. BYD signed a $1 billion investment deal with Ankara earlier this month. But shares in US EV leader Tesla slumped after the company outlined slow sales growth on its latest earnings call. The car maker has also had to recall more than 1.8 million vehicles over a defect with their bonnets.

And Olympic podiums in Paris are made from recycled plastics from shampoo bottles and Coca-Cola caps.