Manup Industry Roundup
While the world’s renewable energy capacity may not be growing fast enough to hit certain 2050 goals, 2022 was still a record-breaking year for renewable energy growth.
Going forward, 33% of the world’s electricity is expected to come from renewables by 2024 compared to 29% in 2020.
See below some oil and gas updates that made headlines this week carefully curated by?Manup.
The Top 5 Exploration Prospects of 2023
Upstream companies are starting to adapt to an environment where oil prices will be higher for longer, one where OPEC+ production discipline and US shareholder returns are just as important a factor in drilling as the physical flow of oil.
Whilst 2022 witnessed several huge discoveries, most notably the frontier-opening Venus find in offshore Namibia, the aggregate tally of new reserves is still a fraction of upstream activity back in 2014 and 2015.
Crudely put, we are still in a period of low upstream commitments, even if it’s getting marginally better than it was in peak coronavirus times.
Buoyed by the likes of Venus, exploration activities are poised to bring us new surprises in 2023 and these top 5 exploration prospects are the most likely to shake up the market.
Where are these prospects located?
Check them out?here
Renewable Energy Had A Banner Year In 2022
Despite experts saying that the world’s renewable energy capacity is not growing fast enough to support government pledges for a green transition by 2050, several clean energy production records were broken in 2022.
A huge amount of wind and solar power came online around the globe last year, and several advances were made across a variety of different renewable energy sources.
Energy firms across North America, Europe, and Asia established plans to develop major green hydrogen facilities, hydropower plants, and new tidal and wave operations; as well as to boost the connectivity across different regions to fulfill energy-sharing objectives.
Wind power continues to be one of the fastest-growing renewable energy sectors.
The U.K. has some of the best conditions in Europe for wind power generation, with 74 terawatt hours (TWh) of wind energy generation achieved by late December 2022, producing enough energy to power 19 million homes.
In August last year, the U.K. reached 25.5 GW of wind power capacity, an increase of 10.5 GW from 2017. This comes from both onshore and offshore wind farms. And the new 1.1-gigawatt Seagreen project from SSE Plc and TotalEnergies SE is expected to come online next summer. Overall, the U.K.’s pipeline for wind projects, both in operation and development, totals 129 GW, of which 93.3 GW are offshore
In 2022, China was on track to break both fossil fuel and renewable energy production records, with significant government investments in the development of its green energy sector.
China’s solar power for electricity generation increased by 30% between January and October, compared to the same period in 2021. And the contribution of wind power for electricity increased by 25% And China continues to be the largest renewable energy producer in the world.
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Overall, the global electricity demand increased by 3% in the first half of 2022, compared to the previous year. Renewable energy operations were able to meet the entirety of this demand rise, with wind and solar providing 77% and hydrogen the rest. In China, the rise in wind and solar generation provided 92 percent of its electricity demand rise; in the U.S. it met 81%, and in India, it was 23%.
While there is still a long way to go if governments want to realize their pledges to reduce global emissions, greater investment in renewable energy over the last year from public and private players is likely to help accelerate the green transition over the coming decades
Energy Outlook: Oil Making A Comeback In 2023 - WoodMac
The Russia-Ukraine war has thrown the energy trilemma into sharp focus in 2022. All eyes are on finding a new balance between security, affordability and sustainability. The immediate call on oil and gas is for more of both, as fast as possible. Yet the longer-term desire remains for an accelerated shift away from hydrocarbons.
Oil and gas companies have wrestled with this same, somewhat contradictory challenge for the past five years. The crisis of 2022 has generated new opportunities for Majors, Independents and NOCs, but also amplified the challenge and exacerbated the associated risks.
As world events transformed the outlook for energy due to Russia’s invasion of Ukraine, which prompted the EU, the U.S. and their allies to cut their purchases of Russian energy, causing havoc in world markets, prices for LNG and European gas and power soared to record highs, highlighted Crooks.
While unexpected events could inevitably forestall some of the events that currently seem likely, Wood Mackenzie has still listed ten of its analysts’ top predictions for 2023
Check it out?here
U.S. Shale Workers’ Pay Growth Slows As Explorers Reduce Oilfield Activity
Monthly wage growth in the U.S. shale patch slowed to less than 1% in November as explorers pulled back activity to manage record costs in the oilfield.
Average hourly earnings in oil and gas extraction for nonsupervisory workers were up 0.6% in November from the previous month to $42.19, according to Bureau of Labor Statistics data released on Jan 6. Compared with a year ago, the 13% growth matches last month’s annual change.
Labor shortages in the oilfield have been one of the biggest hurdles holding back production growth. The overall number of workers employed in U.S. oil and gas jobs totaled 136,100 in December, down 3.1% from last year’s peak in July.
Near the start of 2022, oil workers showed a willingness to leave the industry for higher pay elsewhere. But record profits throughout the year allowed oil companies to boost compensation in order to lure more workers back.
The jobless rate in oil and natural gas fell to 1.9% in December from 3.1% in the prior month on an unadjusted basis, government figures show. That compares with an unemployment rate of 5.8% a year ago.
The slowdown in oilfield earnings growth fits the overall trend seen across the U.S. economy last month, indicating a resilient labor market that may allow the Federal Reserve to further slow interest rate hikes.
Shale drillers typically reduce drilling during the final weeks of the year as annual budget outlays are exhausted. Oilfield inflation was as much as 25% last year, according to estimates by JPMorgan Chase & Co., causing some explorers to slow activity as costs ate into budgets.