ExxonMobil has announced significant additional finds of hydrocarbon reserves in its exploration block in Guyana’s waters, where it began production in 2019. The company expressed confidence that oil exploration in the South American country will prove profitable and productive. Meanwhile, European countries were at odds over whether nuclear power and natural gas can be labeled green fuels for investment purposes, as the bloc seeks ways to reduce its carbon emissions.
New Oil Discoveries in Guyana for Exxon
Exxon’s 6.6-million-acre exploration block in Guyana has yielded encouraging new discoveries of oil deposits recently for the U.S. company, which currently views the South American country as one of its most important investments.
The company announced it had made two new discoveries at its Stabroek Block that’ll add to earlier high-quality hydrocarbon reserves it discovered in the area.
Guyana is believed to have 10 billion gallons of oil and gas available for extraction.
Extraction from the Stabroek reserves began in 2019, led by ExxonMobil and a consortium of partners, with Exxon holding 45% of the stake in the Stabroek Block.
The company has plans to place numerous floating production vessels to extract the hydrocarbons. Hess Corp, which has a 30% stake in the Stabroek Block, estimates that some of the vessels could pump one million barrels of oil and gas per day within the next five years.
Exxon has so far made 20 discoveries since it began exploration in Guyana’s waters seven years ago, with 12 of them being made in the past two years alone. Guyana may have the potential for up to 10 hydrocarbon development projects, the U.S. company said.
Guyana began exports of its crude oil in 2020.
Negative Reaction to EU ‘Green’ Fuel Proposal
A controversial draft proposal that would label nuclear energy and natural gas as green fuels has been presented by the European Union, as a strategy to help curb its greenhouse gas emissions.
Roughly 75% of all EU emissions are due to energy use, and the EU is seeking to include investments in nuclear and gas as sustainable because of concerns that Europe won’t be able to achieve carbon neutrality otherwise.
However, environmental groups and green political parties have rejected the proposals as “greenwashing.”
France relies heavily on nuclear power as a source of energy and has backed the proposals, while Germany views natural gas as a transition fuel toward cleaner energy sources.
Germany’s government voiced objection to the inclusion of nuclear as a clean fuel, especially as it’s in the process of shutting down the last of its nuclear reactors and the German public still has unpleasant memories about the 1986 Chernobyl disaster in Ukraine.
Germany acknowledges that the majority of the EU does not share its opposition to nuclear power, with France and nine other EU countries issuing a pro-nuclear statement late last year.
The draft proposal is set to become law in 2023 once it’s approved by the majority of EU member states.
A final draft will be followed by up to six months of discussion among member states. Once 20 EU countries vote in favor of it, it will be adopted by the bloc.
UK Households Get Help With Cutting Fuel Costs
With household energy costs expected to rise substantially in the UK this year, various measures are being implemented to help people reduce their energy bills.
The government has allocated just over 4 billion pounds to help homeowners struggling with heating bills, as part of a package that includes cold weather payments and special allowances for pensioners.
A borough has also launched an energy savings app that offers advice to homeowners on various ways they can reduce their energy consumption. Hertsmere Borough Council has launched the free Hertfordshire Energy Advice Tool that offers inexpensive solutions to lower energy bills and reduce the carbon footprint of residents.
Using the app is expected to save Hertsmere residents about 70 pounds a year, amid rising concerns about fuel poverty as households struggle to pay escalating energy bills to keep warm.
A report by the country’s Office for National Statistics disclosed that only about 40% of homes in England were assessed as having an acceptable level of energy efficiency. At the same time, fewer than 20% of British residents said they intended to spend money on improving their home’s energy efficiency.
The UK government has expressed its determination to cut the emissions of the country’s 30 million buildings, and is making energy efficiency in homes a priority.
Scotland’s government announced it was providing 50 million pounds to alleviate fuel poverty among households, part of roughly 160 million pounds allocated through 2022 to make all buildings energy efficient.
Judge Dismisses States’ Suit Against Biden Administration
TC Energy’s decision to cancel the Keystone pipeline project crossing the U.S. border has made the case against President Joe Biden irrelevant, the judge hearing the lawsuit said.
The Texas judge therefore dismissed the lawsuit brought by the attorneys-general of 20 Republican-led states against the federal government. The states were alleging that President Biden went beyond his authority when he revoked the permit for the Keystone XL pipeline project by executive decree, soon after taking office in January 2021.
The defeated states expressed disappointment over the judge’s ruling, which they said left unanswered important constitutional questions regarding a president’s authority to revoke a decision made by Congress.
A spokesperson for the attorneys-general also regretted the revenues and jobs that would no longer come to fruition because the pipeline project’s permit was revoked.
The project, which was designed to extend an oil pipeline from Canada to the U.S., was expected to create more than 40,000 jobs in the U.S. It was also expected to yield more than $50 million in property taxes, while paying $2 billion in wages.
TC Energy made the announcement in June 2021 that it wouldn’t continue with the project.
Russian Gas Continuing to Flow Eastward
Russia has been accused by EU officials of withholding gas supplies, as gas in its pipeline flowed away from western Europe for three weeks.
The Yamal-Europe pipeline, through which Russian gas company Gazprom supplies gas to the West, has been flowing in reverse and taking gas to Poland since late December.
The fall-off in Russian supplies to western Europe has contributed to higher wholesale prices of nearly 90 euros per megawatt hour. However, liquified natural gas (LNG) shipments from other countries have helped to alleviate the worst of the upward trend in prices, which reached well over 100 euros per megawatt hour in December.
Europe gets nearly a third of its natural gas supply from Russia, and roughly 16% flows through the Yamal-Europe pipeline, which also supplies Turkey.
Analysts said the direction of the pipeline’s flow responds to demand and that European buyers have preferred to use up stockpiles rather than buy Russian gas at the prevailing high prices.
On Monday, the Yamal pipeline was reported to have sent 7 million kilowatt hours/hour of gas eastward. Some analysts expect the flow to shift westward this week.
Mercedes Concept EV Boasts 1,000-Kilometer Range
Daimler has announced the creation of a concept Mercedes EV that can drive for up to 1,000 kilometers on just one battery charge.
The German company, which produces Mercedes-Benz, explained that the Mercedes Vision EQXX also features a small, relatively light battery and aerodynamic design, with the car’s focus being on efficient battery power use, not speed.
The car also features 117 solar panels on its roof to provide extra power for features other than driving, such as infotainment.
Daimler says the various features mean that the average American driver will likely need to recharge the vehicle only twice a month.
Though the EQXX is just a concept, the car manufacturer has made plans to incorporate important features into EVs it’ll be producing.
The concept car’s range was determined through digital simulations replicating real-life traffic scenarios.
China Commissions Mega-Storage Hydropower Plant
State Grid Corp. of China (SGCC) has commissioned what’s expected to be the world’s largest pumped storage hydropower plant in a province north of Beijing.
The plant, with 12 reversible pump turbines, will have a total installed generation capacity of 3.6 GW when it’s completed. Currently, the world’s largest such facility is the 3 GW Bath County station in Virginia.
SGCC said the plant, referred to as Fengning, will play a key role in integrating renewable energy from wind and solar into the country’s electricity grid. The plant has a storage capacity of 40 GWh and will supply grids in Beijing, Tianjin, and part of Hebei.
China is aiming to have 120 GW of pumped storage capacity by 2030.
Opinion writer: Jewel Fraser
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