Latest news with #StatisticalReviewofWorldEnergy
Yahoo
2 days ago
- Business
- Yahoo
Sierra Leone Stakes Next Oil Frontier Claim
African countries have recently started making more and more headlines with their plans to develop local oil and gas reserves despite strong opposition from foreign environmentalist organisations and international lenders. The latest to join the oil and gas club is Sierra Leone. And it has big plans for its hydrocarbons. The small Western African state earlier this month concluded a round of seismic research that it now hopes would lure international oil majors in, after several discoveries that failed to produce commercial volumes of hydrocarbons. U.S. Anadarko and Russia's Lukoil were exploring in the country's waters but did not make any major find—although Anadarko struck potentially commercial oil at several offshore sites about a decade ago. Despite a tough start, hopes remain high, and Sierra Leone is planning a new licensing round later this year based on the results of the new survey. 'The reprocessing of that data is happening now with our multi-client partners, TGS, and we are hoping to get something to push to the market in October,' said the head of the country's Petroleum Directorate, as quoted by Reuters, last week. Foday Mansaray added that several oil majors had bought the new data, including Shell, Hess Corp., Murphy Oil, and Brazil's Petrobras. Nestled between Ivory Coast and Guinea, Sierra Leone has estimated hydrocarbon reserves of some 30 billion recoverable barrels of oil equivalent. Of this, an estimated 3 billion barrels lie in a single discovery made by Anadarko over 10 years ago: the Vega prospect. The prospect's development has stalled since its discovery, however, as the company concluded, based on early exploration, that it was not commercially viable. The same has happened to Anadarko's three other discoveries and Lukoil's Savannah discovery. It wasn't just that early exploration data. In 2014, Sierra Leone suffered an outbreak of Ebola, which interfered with its foreign investment plans, to put it mildly, and then the net-zero narrative started gathering pace, discouraging investors from betting on oil and gas. This only serves to highlight the change in sentiment over the past decade—and why oil and gas are so back. In its latest issue of the Statistical Review of World Energy, the Energy Institute reported that demand for oil and gas globally had increased for yet another year in 2024. The increase was modest, at 1% but still an increase, despite forecasts of peak demand for hydrocarbons. This increase was the result of a general rise in energy demand—which prompted a boost in oil, gas, and coal consumption. 'Electrification is accelerating, particularly across developing economies where access to modern energy is expanding rapidly. However, the pace of renewable deployment continues to be outstripped by overall demand growth, 60% of which was met by fossil fuels,' the president of the Energy Institute, Andy Brown, said at the release of the data. So, if the world is consuming ever more energy and wind and solar cannot meet it, then the world will continue needing oil and gas in still-growing volumes—and new sources of supply. This is why Sierra Leone has these high hopes and is investing in seismic surveys. Because legacy production regions are not going to produce forever. Petrobras is an example. The company recently said it has plans for international expansion with a focus on Africa. The reason: natural depletion at some of its fields at home. Petrobras is not alone in the hunt for new discoveries that have revived interest in African exploration. Italy's Eni recently acquired four new offshore blocks in Sierra Leone's neighbour, Ivory Coast, as part of a large-scale project that is supposed to be the first net-zero offshore oil development ever. TotalEnergies earlier in the year received an offshore exploration license for an offshore block in Sao Tome and Principe – an island off the western coast of Africa close to OPEC member Equatorial Guinea. Liberia has also joined the ranks of prospective future oil producers in Africa with a licensing round for as many as 29 blocks earlier this year. Given its proximity to the Ivory Coast and Senegal, and the similar geology, Sierra Leone has good reason for its energy hopes. But it's not just clinging to these hopes. The authorities in the West African state have cut red tape in order to facilitate foreign energy investment. 'From letter of intent to license, our process will not exceed 85 days. Our investment terms are very simple,' the Petroleum Directorate's Mansaray said earlier this year. In this, Sierra Leone is joining a trend across the continent. African governments are turning their backs on transition promises with little substance and instead turning to exploiting their countries' natural resources. As one now former Big Oil top executive said a few years ago, as long as there is demand for oil and gas, there will be supply. By Irina Slav for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
6 days ago
- Business
- Time of India
India's energy consumption up 5.8%, coal still dominates: World Energy Review
New Delhi: Fossil fuels accounted for 81.5 per cent of total primary energy consumption globally in 2023, despite the strongest-ever increase in renewable power generation, according to the 74th edition of the Statistical Review of World Energy, released by the Energy Institute in collaboration with Kearney and KPMG. Global primary energy consumption rose by 2 per cent to a new high of 620 Exajoules (EJ) in 2023. While renewable energy (excluding hydro) grew by 13 per cent, adding 4 EJ to reach 42 EJ, it was not sufficient to offset the 1.5 per cent rise in oil demand and 0.6 per cent rise in coal consumption. Global natural gas demand remained relatively flat at 142 EJ. CO₂ emissions from energy use increased by 2 per cent year-on-year to reach a record 39.3 billion tonnes of CO₂ equivalent (GtCO₂e). Emissions from methane and flaring added another 5 GtCO₂e, bringing total energy-related emissions to 44.1 GtCO₂e. China and India together accounted for 80 per cent of the global growth in energy demand. India's energy consumption rose by 5.8 per cent, with the share of coal in primary energy at 57 per cent, followed by oil at 29 per cent. India's renewable power generation increased by 13 per cent, while fossil fuel-based generation also grew, reflecting the country's rising energy needs. "India saw a significant increase in power generation, with fossil fuels still accounting for 76 per cent of the mix. Renewable generation rose to 22 per cent, hydro stood at 8 per cent, and wind and solar together represented over 90 per cent of renewables," the report noted . Oil remained the dominant fuel globally at 31.4 per cent of total energy, followed by coal at 26.1 per cent, and natural gas at 22.5 per cent. Despite record renewable additions, fossil fuel use reached a record high in absolute terms, driven by population and economic growth in developing regions. "Renewables met 30 per cent of the growth in electricity generation, but fossil fuels still dominated total primary energy demand," the report said. Electricity demand globally rose by 2.5 per cent, and power generation hit 30,359 TWh, led by China, India, and Southeast Asia . Hydro output fell by 2 per cent globally, while nuclear generation rose by 2.8 per cent, with China contributing over 50 per cent of the net increase. Natural gas demand fell in Europe by 7 per cent and remained flat in North America, but grew in Asia Pacific and the Middle East. "Despite decarbonisation efforts, fossil fuel consumption remains high. The energy trilemma—balancing security, affordability, and sustainability—continues to shape energy decisions," the report concluded. The Energy Institute's review stressed that while the clean energy transition is underway, the pace is uneven and emissions continue to rise.
Axios
6 days ago
- Business
- Axios
Climate's out — but chaos is in — as a clean energy driver
Global upheavals — from supply chain woes to wars — may increasingly spur countries to replace some fossil-fuel imports with homegrown electrons, a new report finds. Why it matters: "2024 may well become seen as a beginning of a paradigm shift," the latest Statistical Review of World Energy finds. The energy transition is becoming "increasingly associated with a need to deliver energy security through energy independence to protect countries from the types of shocks and uncertainty that such events bring." The intrigue: It goes through 2024, but the idea is consistent with an emerging — if contrarian — school of thought about the Trump 2.0 era. While President Trump isn't interested in global warming and renewables, his foreign and trade policies could make him an accidental climate hawk, the thinking goes. Bloomberg columnist Liam Denning had a recent piece: "Trump Is Cementing the Green Energy Transition He Loathes." The big picture: "Investment in renewables in particular is increasingly being seen as a cornerstone of energy security, enabling countries to disconnect their energy systems from global fuel markets and geopolitical tensions," the World Energy report says. It cites Russia's war on Ukraine, Mideast tensions, COVID, extreme weather and more. That take is part of the huge annual data review from The Energy Institute, Kearney and KPMG. The report tells a wider story about what the global renewables surge is and isn't achieving. Solar and wind together grew nine times faster than fossil fuels, rising 18% last year. But the whole energy pie is still growing too, including fossil fuels, so global energy-related CO2 emissions ticked up 1% to set another record. As fast as renewables are rising, global energy thirst is still growing even more, notes the annual report that for decades was produced by BP until 2023. Zoom in: Low-carbon energy — renewables, nuclear and more — is avoiding lots of CO2 emissions that would otherwise occur. But it's still an addition — not a transition that's lowering total emissions yet. "This pattern, marked by simultaneous growth in clean and conventional energy, illustrates the structural, economic, and geopolitical barriers to achieving a truly coordinated global energy transition," a summary states. Reality check: Displacement of imported fossil fuels with renewable power is concentrated in select markets and a "largely untapped opportunity" elsewhere. Major energy importers — including Japan and South Korea — have made much less progress, it finds. And overall global demand for coal, oil and gas is still rising. Friction point: Trump's pullback from traditional alliances, trade wars, and use of fossil fuels as trade chips will help push countries toward domestic electricity sources, Denning writes. And don't forget veteran Carlyle analyst Jeff Currie's paper declaring the "New Joule Order." It similarly argues that risk and trade concerns — not climate policy — are driving countries to seek domestic sources instead of global commodities. My thought bubble: A related trend is low-carbon sectors like renewables and hydrogen adapting their domestic messaging to the Trump era. You hear much less about climate and much more about how they can help the U.S. become "energy dominant." For instance, check out the American Clean Power Association's statement on the Senate's version of the budget reconciliation bill. The bottom line: Sure, there's a case for Trump 2.0 — and the wider geopolitical landscape — creating momentum abroad for renewables and nuclear on security grounds.
Scroll.in
21-05-2025
- Business
- Scroll.in
How India could cut its reliance on China for rare earth minerals
Critical minerals, particularly rare earth elements, or REEs, are crucial for the green energy transition. These REEs are a subset of critical minerals, comprising 17 elements in the periodic table (from 57 to 71) starting with lanthanum. They also include scandium and yttrium. Although moderately abundant in the earth's crust, REEs are not concentrated enough for economic exploitation. They play a crucial role in various industries, including defence, electronics, and energy systems, due to their unique properties. Rare earth magnets, for instance, are significantly more powerful than conventional magnets. Alongside elements like lithium, REEs are essential for developing sustainable energy systems, including renewable energy technologies such as wind turbine magnets, electric vehicle motors and solar panel components. Additionally, REEs have diverse applications in healthcare, medical devices, aerospace, and defence. According to the International Energy Agency's 2024 estimate, global REE demand was 93 kilotons (kt), with 18% used in clean technologies. With the ongoing clean energy transition across countries, the demand is expected to reach 180-202 kt by 2050, where clean technology usage is projected to increase to 32%-39%. All countries rely on REEs due to their widespread applications but only a few nations are significant producers and exporters. China's dominance China dominates the global REE market, leading in reserves, production, and exports. According to the Statistical Review of World Energy (2024), China holds the largest REE reserves, with 44 million tons (38% of global proven reserves), followed by Brazil (18%). In 2023, China accounted for two-thirds of global REE production (240 kt out of 356 kt). The United States accounted for 12.2%. Notably, Chinese REE production increased by 14% compared to 2022. China is the largest exporter of REEs, accounting for 64% of global export value and 86% of quantity in 2023. Thailand ranks second, with a 28% share in value and 10% in quantity. Chinese REE exports grew at a compound annual growth rate (CAGR) of 11.6% from 2018 to 2023. In contrast, Japan and Malaysia are the largest importers, with Japan accounting for 57% of global import value and 19% of quantity, and Malaysia accounting for 25% of value and 70% of quantity. The majority of Chinese REE exports (85% by value) are destined for Japan, followed by South Korea (3.5%) and USA (3.2%). China also imports REEs, accounting for 3.5 percent of global import value in 2023, while India's share is only 0.7%. India's REE imports are primarily sourced from China, which accounted for 81% of India's import value and 90% of quantity in 2022. India's REE imports have grown at a CAGR of 10% since 2017, with imports from China increasing by 8% CAGR. Rare earth minerals and energy transition The dependence on REEs for green energy technologies and the concentrated REE supply market have created unforeseen geopolitical implications. Unlike conventional energy markets, which are relatively diversified, the REE market is dominated by a few key players, making it vulnerable to disruptions. As countries transition to low-carbon technologies, they become increasingly reliant on REEs, shifting their energy security risks from fossil fuels to critical materials. For instance, China's 2010 export restrictions on REEs to Japan, due to a maritime dispute, led to a 39% decline (between 2010-'12) in Japan's REE imports from China, along with sharp spikes in global REE price, which impacted various industries in Japan. This incident sparked a debate about energy security risks associated with the concentrated REE market, prompting Japan, the US and the EU to file a dispute settlement case against China at the World Trade Organization. The WTO ruled in favor of the complaining countries, forcing China to withdraw some restrictions. However, this incident highlighted the need for diversified REE supply chains to mitigate energy security risks. To mitigate energy security risks associated with rare earth elements (REEs), countries can consider three alternatives: recycling REEs from end-of-life products, exploring alternative import sources, and investing in research and development (R&D) to improve REE utilisation or develop alternatives. However, each option has its own drawbacks. Recycling is, in general, water and energy-intensive and requires a proper supply chain to collect end-of-life electronic-waste. R&D is financially expensive and time-consuming due to inherent uncertainties. And, alternative import sources are often limited by geopolitical factors. India's rare earth minerals strategy To address the geopolitical risk, India is exploring all three alternatives. Recently, the Indian Ministry of Mines initiated the designing of a Production Linked Incentives scheme to promote recycling of critical minerals. The state-owned Indian Rare Earths Limited was established in 1950 to extract and process REEs and conduct related R&D. The recent removal of IREL from export control list by the US is expected to enhance India's critical mineral supply chain, including REEs. Furthermore, IREL has commissioned a Rare Earth Permanent Magnet Plant in Visakhapatnam, which will produce samarium-cobalt permanent magnets using indigenous technology, with an annual capacity of 3,000 kg. This development is expected to play a crucial role in India's quest for rare earth elements. Further, the formation of Khanij Bidesh India Ltd (KABIL), inclusion of India in the US-led Mineral Security Partnership and amendment s to the Mines and Minerals (Development and Regulation) (MMDR) Act are also proactive measures in this context. Kazakhstan, which has rich reserves of 15 out of 17 known REEs along with established extraction and processing capabilities, offers a promising alternative for India to diversify its REE imports. Strategic partnerships with Kazakhstan can help India reduce its dependence on China, leveraging geographical proximity and geopolitical stability. Kazakhstan is not only India's largest trading partner in Central Asia; India also has defence cooperation and civil nuclear agreements with Kazakhstan. Moreover, Kazakhstan has established relationships with major global partners, including the US, Japan, South Korea and the EU, demonstrating its commitment to reliable REE supply. The India-Central Asia Rare Earths Forum is exploring collaborations for joint mining ventures through private sector investment. Despite technical challenges, such as geographic hurdles and limited advanced extraction technologies, ICAREF aims to address these issues and establish a regional REE market for mutual benefit, facilitating a smoother transition to renewable energy with reduced dependence on China. Saswata Chaudhury is Senior Fellow & Area Convenor, Energy Assessment and Modelling Division, The Energy and Resources Institute, New Delhi.
Reuters
10-04-2025
- Business
- Reuters
China trade spat undermines Trump's ‘max pressure' Iran campaign: Bousso
LONDON, April 10 - The deepening trade war between the United States and China could significantly undermine President Donald Trump's "maximum pressure" campaign against Iran, which earns tens of billions of dollars in revenue annually from oil sales to Beijing. Since taking office in January, Trump has ratcheted up pressure on Iran in a bid to stop it from obtaining a nuclear weapon, an ambition it denies harbouring. Washington has sought to drive Tehran's oil exports down to zero, cutting off a major source of revenue for the Islamic Republic. That's a tall order. The United States and the European Union have for years targeted Iran's oil exports with limited success. The OPEC member's oil production rose to 4.6 million barrels per day in 2023, the highest since 2018, according to the Energy Institute's Statistical Review of World Energy, opens new tab. But Trump is clearly willing to up the ante. He recently threatened to bomb Iran and impose secondary tariffs on buyers of its oil if Tehran does not agree to a nuclear deal. The U.S. administration also issued a string of sanctions against Chinese entities involved in crude trading and, for the first time, targeted Chinese "teapot" refineries – small, independent plants – that process Iranian crude. Beijing accounted for at least 77% of Iran's roughly 1.6 million bpd of exported crude in 2024, according to analytics firm Kpler. The value of Iran's crude sales to China is not officially disclosed, but a Reuters calculation puts the trade at nearly $29 billion last year, assuming a 20% discount to the Brent crude prices to include costs of logistics. Washington thus clearly understands that any effort to choke off Iran's oil exports will have to involve persuading, or coercing, China to halt the oil trade. But doing this will be much more challenging now, given the rapid deterioration in relations between the two trading partners. They have exchanged tit-for-tat tariffs over the past few weeks, culminating in Trump's announcement on Wednesday that he would raise tariffs on Beijing to an eye-popping 125%, dwarfing China's newly announced 84% tariff on U.S. goods. So what could Trump try to do? While China officially does not import any crude oil from Iran, its independent teapot refineries have for years circumvented international sanctions on Iranian oil exports and shipping using an opaque web of shell companies and tankers. So, in theory, more of these small refineries could be targeted. But as the recent U.S. sanctions on Shandong Shouguang Luqing Petrochemical Co., Ltd have shown, such actions are likely to have a limited impact since many of these China-based plants' operations are domestic. Secondary sanctions on Iranian crude are also unlikely to faze China, considering the extraordinarily high tariff barriers Trump has already erected. Once a country is facing tariffs exceeding 100%, the threat of additional penalties has little bite. If Washington is incapable of limiting Iran's oil revenue by a meaningful amount, then it is fair to assume that the key lever in Trump's "maximum pressure" campaign won't be financial. That doesn't necessarily mean Trump will pursue a military conflict with the Islamic Republic, though the administration has taken several actions – including moving six B-2 heavy bombers to the Indian Ocean – which appear designed to signal that the threat is real. But the Republican president this week also made a surprise announcement that the United States and Iran were poised to begin direct talks. Iran's foreign minister later said the discussions in Oman would be indirect. Either way, tensions between Washington and Tehran continue to rise, and this could ultimately give Chinese President Xi Jinping leverage in his own battle with Trump. He could use Iran's dependence on China as a bargaining chip in any future negotiations with the U.S. about defusing their trade tussle, as it is unlikely that Trump would want to pursue a trade war and an actual war simultaneously. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here.
