The Unappreciated Commodity: Sand

By Alexander Bencini

The Mid-Week Energy Blog - 24 March 2021

In this article: 

I'm no tabloid writer. So when I put together the title of each blog, I think what makes me laugh, what do I find interesting.. and boom; it's a title. Only a few weeks ago, I was reading that sand is indeed the world’s most consumed raw material after water and believe it or not, we are facing a global sand shortage. Sand is the primary substance used in the construction of roads, bridges, high-speed trains and even land regeneration projects. Sand, gravel and rock crushed together are melted down to make the glass used in every window, computer screen and smart phone. Even the production of silicon chips uses sand, so I guess it's not just my sandcastles. Sand is a commodity that we all take for granted and it now constitutes one of the greatest sustainability challenges of the 21st century. Check out the BBC coverage here or the more recent CNBC article here.

So when one of the world's largest ships (the size of the Empire State Building) hit a sandbank and is currently still blocking traffic moving both ways in the Suez Canal.. I'll take a pat on the back for linking the topic of sand as a commodity and the disruption to oil prices caused by the sea-road block. The 220,000-ton, 400-metre-long Ever Given – a so-called “megaship” – became stuck near the southern end of the canal on Tuesday. The Suez Canal Authority (SCA) said it had lost the ability to steer amid high winds and a dust storm.

On the vaccine front, nothing much has changed. However, I recommend anyone who is still anxious (and that is entirely normal) to make sure you broaden your news sources and information gathering. I'll never forget my law professor at university asking the class which news source we should trust and why. Naturally, everyone pointed to the Times / Guardian and scuffed the Daily Mail. Interestingly, he brought to light a number of stories published in the former papers that were later proven to not be true.. and that brings to the front, one of the biggest problems of our day and age; that access to information is a click-away, but it is up to us to decipher content and process reliable and trustworthy content.

Download the WHO weekly updated Vaccine Candidates list here (Currently there are 83 vaccines in clinical trials globally today)

Download the WHO weekly updated Vaccine Status and Evaluation Report here

Here are this Week's Energy Headlines:

Oil rose more than 2% on Wednesday after a ship ran aground in the Suez Canal raising supply concerns, although fears of a slow recovery in demand due to European lockdowns limited gains. The giant container ship that has been blocking the Suez Canal for more than a day has been partially refloated and traffic along the fastest shipping route from Europe to Asia is expected to resume soon, port agent GAC said on Wednesday. Brent crude rose $1.48, or 2.4%, to $62.27 a barrel by 1223 GMT, after tumbling 5.9% the previous day. West Texas Intermediate (WTI) climbed $1.32, or 2.3%, to $59.08, having lost 6.2% on Tuesday. Read the full article in Reuters

Schlumberger has won a $480-million contract to drill 96 oil wells in southern Iraq for the country’s Basra Oil Company and for ExxonMobil, which operates the giant West Qurna-1 field with partners from Iraq, Japan, Indonesia, and China. West Qurna-1 is one of the world’s largest oil fields. The Iraqi cabinet agreed on 23 March to award the contract to Schlumberger, which has worked at West Qurna-1 field where ExxonMobil Iraq Ltd.is lead operator, according to press statements. In announcing the award, Iraqi authorities did not identify where the new drilling will take place. Read the full article by Pat Davis Szymczak in JPT

Saudi Aramco has pledged a 50-year partnership with China in energy and closer co-operation to develop new technologies to combat climate change. Speaking at the 2021 China Development Forum, Aramco Chief Executive Officer Amin Nasser said: “Ensuring the continuing security of China’s energy needs remains our highest priority – not just for the next five years but for the next 50 and beyond. Read the full article by Frank Kane in Arab News

Other Articles I'm Reading:

• SPE-Informa partnership to bring world-class oil & gas knowledge to MENA (Arab News)
• The site of a former coal mine in Britain is being fitted with a solar farm and battery storage (CNBC)
• 'Busy on other fronts' - White House without Trump stays quiet on OPEC (Reuters)
• Saudi Arabia Skips LNG, Bets Big On Hydrogen (Oil Price)
• UK seeks to drill more oil and gas from North Sea (BBC News)

IPTC 2021

The 13th International Petroleum Technology Conference kicked off yesterday and the event runs till April 1st. The Entire Conference, seminars, technical sessions and even networking opportunities are all taking place virtually this year. So if you've been sleeping under a stone for the past few months, take a moment to register and attain your access here.

This Week on SPE Live:

Upcoming Broadcasts:

Thursday, 25 March — Diversity in Oil and Gas — How to Break the Glass Ceiling?

Recent Broadcasts:

Please do check out our SPE Tech Talks, broadcast in conjunction with Schlumberger. For those interested in the oil and gas technical discussions, you'll find our most recent episode below; where we looked at how to optimize stimulation and conformance operations for improved production through fiber services, software integration, and other intervention services.

If you're not following the series already, take a look at our Live and On-Demand content.

For Entertainment Purposes: 

Music on Right Now:

Ras Sheehama — Inotila

Take what you will from this blog, but if it ends up being a broader appreciation for global music, I will have succeeded. Stemming from the stunning country of Namibia, Ras Sheehama has an incredible story, spending much of his life living in exile, until Namibia achieved independence and welcomed democratic and free elections in 1990. Don't be afraid, the sun will rise, are words we should all live by.

In My Video Queue: 

The Courier — Cinema

I am an absolute sucker for anything Cold War related, so when I see a trailer of Benedict Cumberbatch playing a British spy.. and it's based on a true story? Sign me up! Cinemas are a funny thing in 2021. Social distancing means you have no latecomers spilling their popcorn all over you, although, to be fair; I was the only person in the cinema the entire time. No complaints there. If you're courageous enough to venture out again into society again and find yourself in the cinema, I recommend this film. Then again, I have a tendency of recommending everything.. so perhaps just watch the trailer and make your own mind up.

That's it for this week. I'll be on a short break next week, but look forward to being back just in time for our 100th SPE Live in April!

Wherever you are in the world, thank you for reading and keep safe.

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Alexander Bencini, a multimedia producer for the Society of Petroleum Engineers, based in Dubai and proudly European, enjoys following the ever changing dynamics of the global energy markets. When he's not putting together this blog or brainstorming with his colleagues, Alex enjoys supporting his two football teams - Bayern Munich and the Indianapolis Colts.