NewBase 01 June-2023 Energy News issue - 1625 by Khaled Al Awadi.pdf

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NewBase Energy News 01 June 2023 No. 1625 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E : The Make it in the Emirates Forum convenes local and
international industrial companies, government entities,
financial institutions, and investors
WAM+ Zawyah + NewBase
Make it in the Emirates is a one-of-its-kind forum, organised by the Ministry of Industry and
Advanced Technology (MoIAT) in partnership with the Abu Dhabi Department of Economic
Development (ADDED) and ADNOC, a trusted and responsible provider of low-carbon energy. The
forum takes place from 31st May to 1st June.
The Make it in the Emirates Forum convenes local and international industrial companies,
government entities, financial institutions, and investors.
The opening ceremony on Wednesday 31-05-2023 was attended by Mohamed Hadi Al Hussaini,
Minister of State for Financial Affairs; Suhail bin Mohammed Al Mazrouei, Minister of Energy and
Infrastructure; Abdullah bin Touq Al Marri, Minister of Economy; Mariam bint Mohammed Almheiri,
Minister of Climate Change and the Environment; Sarah Al Amiri, Minister of State for Public
Education and Advanced Technology; Sheikh Shakhboot bin Nahyan Al Nahyan, Minister of State;
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; as well as Ahmed Jasim Al
Zaabi, Chairman of the Abu Dhabi Department of Economic Development; Omar Al Suwaidi, Under-
ww.linkedin.com/in/khaled-al-awadi-80201019/

Secretary of the Ministry of Industry and Advanced Technology; along with a number of officials
from federal and local authorities, as well as various heads of local, regional and international
companies.
During his address to one of the region’s most prominent
industry events, Dr. Al Jaber announced an additional
AED10 billion of offtake agreements in the UAE’s industrial
sector, building on the previous forum’s AED110 billion
worth of procurement opportunities, taking the total value
of products targeted for localisation to AED120 billion.
“One of the key achievements of last year’s forum was
several leading national companies announcing their
intention to invest AED110 billion over the next decade to
purchase 300 products from local manufacturers," Dr. Al
Jaber said.
"I am pleased to share with you that in the first year alone, 28 percent of these offtake agreements
have been implemented, representing a total value of AED31 billion.”
He also announced more than 30 innovative industrial projects worth more than AED6 billion.
“These projects include pioneering initiatives such as setting up the first hydrogen electrolyser plant
in the UAE,” he said.
ADNOC will also allocate over AED20 billion for the purchase of structures and metal products
from national companies, the forum heard. It was also announced that MoIAT will adopt a new
standard within the National In-Country Value Programme called Green ICV, to encourage
sustainability practices and motivate companies to reduce emissions.
Dr. Al Jaber noted that during the forum, competitive financing solutions will be announced for the
industrial sector, including AED 5 billion from First Abu Dhabi Bank and AED 1 billion from Mashreq
Bank.
He also announced the provision of 5,000 sustainable job opportunities for UAE nationals in the
industrial sector through the Industrialist Programme that has been supported by Nafis and the
Ministry of Human Resources & Emiratisation.
Accelerating decarbonisation
Taking place in the in the run-up to COP28, the Make it in the Emirates Forum focuses on
sustainable industrial development, decarbonisation and increasing the industrial sector’s
contribution to climate action.
Dr. Al Jaber said, “The UAE will host COP28 with a great sense of responsibility and a full
appreciation of its gravity. During the climate
conference, we will work to achieve transformation
progress in climate action, focusing on finding
practical and realistic solutions to mitigate the
impacts of climate change, especially in the Global
South. COP28 will focus on inclusion, joining forces,
and forging partnerships rather than driving
division.”
Noting the industrial sector is set to play a crucial
role in emissions reduction as it is responsible for

approximately 20 percent of global carbon emissions, according to World Economic Forum's report,
Dr. Al Jaber said. “It is our sector's paramount responsibility to demonstrate the feasibility of working
concurrently towards two objectives: reducing emissions and achieving sustainable growth.”
He added, “With this in mind, this year's forum is centered around bolstering sustainable practices,
and promoting the adoption of clean energy solutions within the industrial sector.”
The Make it in the Emirates Forum also provides a vital platform for corporations and government
to explore the competitive advantages available in the UAE, such as incentives, enablers, financing,
and partnerships, contributing to the country’s transformation to become a global industrial hub.
Leadership directives
In his speech, Dr. Al Jaber said, “In line with the directives of President His Highness Sheikh
Mohamed bin Zayed Al Nahyan, and His Highness Sheikh Mohammed bin Rashid Al Maktoum,
Vice President, Prime Minister and Ruler of Dubai, the Ministry of Industry and Advanced
Technology focuses on establishing an integrated legislative and regulatory system that leverages
the UAE's competitive advantages.
“In doing so, we aim to foster the
growth and sustainability of the
industrial sector, and we aim to
achieve self-sufficiency in
manufacturing essential products,
as well as localise vital industries,
especially those related to food and
medical security.”
Dr. Al Jaber expressed gratitude for
the valuable support of His
Highness Sheikh Mansour bin
Zayed Al Nahyan, Vice President,
Deputy Prime Minister and Minister
of the Presidential Court. He also
acknowledged His Highness’s
guidance in prioritising the
development of strategies to foster the growth of the industrial sector, enhance its GDP contribution,
and promote economic diversification.
He emphasised the leadership's strong commitment to bolstering the strategic role of the industrial
sector within sustainable development plans. He highlighted the significant efforts made by H.H.
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of
the Abu Dhabi Executive Council, who launched the Abu Dhabi Industrial Strategy, which aims to
double the size of the manufacturing sector in the emirate to AED172 billion by 2031.
UAE industry booming
Dr. Al Jaber said, “In pursuit of our leadership's goals, the Ministry of Industry and Advanced
Technology introduced the National Strategy for Industry and Advanced Technology, which has
several key objectives. These include: supporting our national development by capitalising on the
UAE's competitive advantages and introducing attractive incentives that attract investments;
promoting local products; accelerating the expansion of the industrial sector; driving innovation and
sustainable technological transformations; and increasing the industrial sector's contribution to
national GDP to more than AED300 billion by 2031.”

He noted the milestones already achieved by Operation 300 billion. Under the strategy, the value
of the UAE’s industrial exports reached AED175 billion in 2022, compared to AED117 billion in
2020, representing 49 percent growth. The industrial sector's contribution to GDP increased from
AED132 billion in 2020 to AED182 billion in 2022, representing 38 percent growth.
In collaboration with the Emirates Development Bank, the ministry offered financing solutions worth
AED 3 billion to support and enable the Make it in the Emirates initiative. The ministry also launched
the Technological Transformation Programme to accelerate the adoption of Fourth Industrial
Revolution technologies and contribute to lower emission goals.
Dr. Al Jaber stressed the value of the opportunities offered by the forum, which lead to tangible,
result-driven outcomes. He noted the example of the Integrated Industrial Partnership for
Sustainable Economic Development launched between the UAE, Egypt, Jordan and Bahrain.
Recently, agreements have been announced for 9 comprehensive industrial projects under the
partnership, attracting investments exceeding US$2 billion.
He also noted the success of MoIAT’s National In-Country Value Programme, which redirected AED
53 billion into the national economy in 2022, 25 percent more than the previous year, anticipating
more entities to join the programme, which will further enhance growth opportunities for local
manufacturers.
Empowering the industrial sector
Dr. Al Jaber said, “Through issuing Federal Decree-Law No. 25 of 2022 to enhance the UAE’s
industrial competitiveness and investment attractiveness, the ministry has streamlined processes,
including lowering fees and developing programmes that support and enable innovation,
entrepreneurship, and SMEs. It has also facilitated access for our manufacturers to export markets
representing more than 2.5 billion consumers, as part of a collaboration with our partners in the
Ministry of Economy, Ministry of Finance, and various economic departments.
“The Make it in the Emirates Forum, which launched last year, has proven instrumental in
transforming uncertainties – arising from geopolitical tensions, as well as economic, health, and
logistical challenges – into opportunities for sustainable development. Moreover, it has reinforced
the self-sufficiency and localisation of vital industrial sectors.”
Made in the Emirates
Dr. Al Jaber also announced the launch of the Made in the Emirates brand, a national emblem that
brings numerous advantages and opportunities to the companies that earn it. “This brand will be
promoted as a symbol of the quality of Emirati products, and their adherence to the highest
international standards,” he said.
He added, “I invite all attendees and participants to explore through this forum the incentives and
enablers provided by various economic development departments, industrial and special zones,
financing institutions, and national companies.”

China has the luxury of options for where to get its gas
The National - Robin Mills ( images added by NewBase)
At the Shanghai Co-operation Organisation summit in the silk-road entrepot of Samarkand in
September, Russian President Vladimir Putin – who famously makes his eminent visitors wait
– was left hanging around by the leaders of India, Turkey, Azerbaijan and Kyrgyzstan.
This disrespect was a premonition for a bad few months for Russian gas diplomacy in inner Asia.
Russia has destroyed its best market in Europe and has to seek new outlets, but Beijing is cagey
The crater fire named 'Gates of Hell' near Darvaza, Turkmenistan. Turkmenistan has the fourth-
largest gas reserves in the world, more than the whole of Africa. AP
On May 19, President Xi Jinping chaired the inaugural China-Central Asia summit in Xian, another
great historic trading city. There, he encouraged the acceleration of the crucial Line D pipeline from
Turkmenistan, which could bring another 30 billion cubic metres (bcm) of gas annually, almost
doubling China’s imports from the Central Asian gas treasure trove.
Now, Russia’s blunders in Ukraine threaten to undermine its two centuries of dominance over
Central Asia. It is all too apparent that China, its notional ally, has the upper hand. Russia has
destroyed its best gas market, in Europe, and now has to seek new outlets, while China has the
luxury to wait and choose from several options.
Brussels anticipates that the EU will cut gas consumption this year by more than the total amount it
still imports from Russia. In 2021, 150 bcm arrived, then 74 bcm in 2022, and just 11 bcm so far this
year.

A hot summer followed by a cold winter and a resurgence of Chinese demand could still cause
some uncomfortable moments for Europe. Yet as renewable and nuclear power, efficiency
measures and the creation and import of hydrogen ramp up, any residual Russian requirement will
evaporate in the next few years.
From 2026 and 2027 onwards, a wave of new liquefied natural gas exports from Qatar, the UAE,
the US, East Africa and elsewhere should amply supply the global market.
Can Russia look to its eastern neighbour to replace Europe customers? In 2020, the Power of
Siberia pipeline opened from fields in East Siberia to China. For more than a decade, Moscow has
also been promoting the Power of Siberia 2 (PoS-2) line, a planned 2,600km link from the West
Siberian fields that have hitherto supplied Europe, running through Mongolia to Beijing.
But China has remained cagey. In February 2022, Mr Putin did succeed in getting approval for a
smaller pipeline from the island of Sakhalin. Beijing, though, has apparently been wary of being
drawn into competition with Europe for West Siberian gas. For other Russian gas, it seems to pay
about half the price charged to Europe, while Gazprom bears the hefty cost of pipeline construction,
which Russia’s Deputy Prime Minister Alexander Novak puts at $67 billion for PoS-2.
Russia has just one other option for its stranded gas – to expand LNG exports through the Arctic –
though on a smaller scale, higher cost and requiring more technological sophistication than its
pipelines.
In 2021, it exported 175 bcm of gas to its “far abroad”, that is, excluding the “near abroad” of former
Soviet states such as Belarus. Russia supplied just 15 bcm in 2022 of China’s entire gas imports of
around 160 bcm. The Chinese market can absorb only a small amount of the new surplus.
Beijing hardly needs Russia’s cut-off of flows to Europe to remind it not to depend too heavily on
any one supplier or route. In November, state company Sinopec signed a large and exceptionally
long 27-year contract to buy LNG from Qatar, and last month, it took a 5 per cent stake in one of
the new Qatari LNG export facilities, China’s first such direct investment.
But tanker-borne LNG imports could also be threatened in the event of conflict with the US, for
instance over Taiwan. And this makes Central Asian gas an attractive component of the portfolio.
Turkmenistan has the fourth-largest gas reserves in the world, more than the whole of Africa. But
geography and politics block its other export routes, with Russia athwart the route to Europe,
sanctioned and gas-rich Iran to the south, and Afghanistan on the road to Pakistan and India. There
are only faint hopes for a trans-Caspian route via Azerbaijan and Turkey.

So it relies on three existing pipelines to China, the last of which opened in 2014, which take the
same route through Uzbekistan and Kazakhstan. Line D, by contrast, would head through
Uzbekistan then Tajikistan and Kyrgyzstan – mountainous, but further from Russia.
China National Petroleum Corporation provides finance and expertise for the development of the
Galkynysh field, often estimated to be the world’s second-largest. It is the main source for Line D,
which could be operational by 2028, ahead of PoS-2 in the early 2030s.
Of course, China is playing both Turkmenistan and Russia to extract better terms. Gas pipelines
alone are not going to reverse the verdicts of 751, 1864 and 1969. But leaders from Ashgabat,
Bishkek and Dushanbe will certainly not keep Xi Jinping on hold.
Robin M. Mills is chief executive of Qamar Energy and author of The Myth of the Oil Crisis

India: TGS announces Facies Map Browser for East Coast India
Source: TGS
TGS, a global provider of energy data and intelligence, has announced the development of a Facies
Map Browser (FMB) for East Coast India. This project builds on the extensive 2Dcubed seismic
data available across the India East Coast 2D and over 20 years of development of the FMB tool
by TGS geoscience teams.
Final deliverables are expected to be available for download in Q3 of 2023 and are being developed
with full Industry support.
The East Coast India FMB will provide extensive access to well-based stratigraphic interpretation
and sequence-constrained facies maps. Current well data will be analyzed and interpreted using a
developed sequence stratigraphic framework harmonized across the basins.
Lithological and other log properties can be queried at various levels and displayed in table format
or on maps for demonstrable purposes. The detailed Gross Depositional Environment (GDE) maps
are developed utilizing all available data.
This includes the seismic interpretation of the East India 2Dcubed dataset with geological
understanding developed from well analysis, and the regional synthesis of the data.
FMB well and map datasets are delivered via our easy-to-use desktop browser, allowing users to
query and visualize interpreted wells and facies maps and quick access to source data and a
regional cross-border stratigraphic framework.
This is the first phase in FMB development for the region. Utilizing a wealth of high-quality seismic
data in the TGS database and the FMB workflows will enable a fast-track understanding of the
regional geology and play fairways.
Will Ashby, Executive Vice President, Eastern Hemisphere at TGS, comments, 'TGS has built an
expansive data library across India and the broader Asia Pacific region. We are excited that our
FMB technology, which has a long-established history in Northwest Europe and the Americas, is
now being utilized to support exploration activity in India.'

Europe’s Unwanted Coal Heads to China and India as Heat Builds
Bloomberg + NewBase
Coal cargoes unwanted in Europe are heading to Asia, where utilities are stockpiling the fuel amid
sweltering temperatures heading into the summer.
Shipments of about 7 million tons of Colombian coal will be exported to Asian countries in the next
quarter, instead of ports in Europe, according to James Marshall, chief executive officer of Berge
Bulk Ltd., whose fleet of ships ply those routes. Destinations for fuel used by power plants and
steelmakers include China and India, he said.
European customers raised their imports of Colombian coal last year by 23% to about 30 million
tons, according to data from shipbroker BRS Group, after the continent was plunged into an energy
crisis following Russia’s invasion of Ukraine. However, with natural gas prices dropping more than
90% since August, more power plants are switching back to the alternative fuel.
More coal is also heading to Asia from South Africa, Carl Tyler, a head of chartering at Noble
Resources Group, told a conference in Singapore last week.
The extra arrivals in China will add to burgeoning inventories at coastal ports. The country has
ramped up imports at the same time as expanding domestic production to feed the reopening of its
economy. But demand hasn’t kept up as China’s recovery has disappointed.
That’s likely to change as the weather warms, and alternatives like hydropower are affected by the
lingering impact of drought last year and the prospect of hotter-than-usual temperatures this
summer.
A stronger economic performance in the second half would bolster China’s power needs, said
Johann Tan, an analyst at Fitch Solutions’ unit BMI. “A warmer summer also incentivizes higher
coal supplies as insurance against energy shortages,” he said.

NewBase June-01 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil holding above $73/B after large surprise build in US crude stocks
Reuters + NewBase
- Oil prices dipped in early them slightly recovered on Thursday for the third straight session after
data showed an unexpected, large build in U.S. crude stocks last week, triggering fears of an
oversupply amid signs of weaker Chinese demand, too.
Brent crude futures for August delivery fup 40 cents, or 0.6% to $72.20 a barrel by 0023 GMT, while
U.S. West Texas Intermediate crude (WTI) eased 39 cents, or 0.6%, to $67.70 a barrel.
Both benchmarks had settled down more than $1 on Wednesday after steep declines the day
before. U.S. crude oil inventories rose by about 5.2 million barrels last week, according to market
sources citing American Petroleum Institute figures on Wednesday. That compared with estimates
in a Reuters poll for a drawdown of 1.4 million barrels.
In a further bearish sign, gasoline inventories also posted a surprise build of about 1.9 million barrels
in the week ended May 26, according to the data, compared with estimates for a draw of about
500,000 barrels.
Oil price special
coverage
 U.S. oil stocks rise by 5.2 mln barrels - API
 U.S. gasoline stocks rise by 1.9 mln barrels - API
 Analysts give mixed signals on OPEC+ output cuts expectations
 Coming up: EIA data on U.S. stockpiles at 1500 GMT

Market participants now await government data on U.S. crude stocks due later on Thursday. The
data was delayed by a day because of a U.S. holiday earlier this week.
Meanwhile, Chinese data showed manufacturing activity contracted faster than expected in May,
worrying markets about demand in the world's second-largest oil consumer.
Investors were also watching the upcoming June 4 meeting of OPEC+, the Organization of the
Petroleum Exporting Countries and allies including Russia, after mixed signals so far on whether
further cuts are likely.
Analysts at HSBC and Goldman Sachs have said they do not expect OPEC+ to announce further
cuts at this meeting.
Unexpectedly strong labor market data on Wednesday also rattled investors who fear the Federal
Reserve might hike interest rates again in June, potentially cutting fuel demand in the U.S., the
world's biggest oil consumer.
A bill to suspend the U.S. government's $31.4 trillion debt ceiling and avert a disastrous default
cleared a key procedural hurdle in the House of Representatives on Wednesday, setting the stage
for an vote on the bipartisan debt deal itself.

Gas Price Plunge Brings Relief to Europe After Energy Panic
Bloomberg
European gas prices have plunged to the lowest since mid-2021, when Russia was just beginning
to squeeze supplies before its invasion of Ukraine, helping to reverse a surge in inflation and bring
relief to consumers.
The slump — gas futures are down by two-thirds already this year – hasn’t just eased the pressure
on household budgets. It also undermines one of the biggest bargaining chips held by President
Vladimir Putin — the ability to squeeze the region’s gas supplies.
With some traders predicting short-term prices could even go negative at times this summer, the
picture couldn’t be more different from May last year. Back then, futures were quadruple what they
are now and countries were forced to revive coal generation to keep the lights on after Russia
slashed gas supplies.
There were also worries about shortages and whether Europe would be able to build gas storage
levels before winter. Now, stockpiles are above average and might even be filled during the summer,
and ahead of schedule.
Benchmark Dutch futures have fallen for eight straight weeks and are below €25 per megawatt hour,
the lowest since May 2021. They traded as low as €24.45 on Monday morning.
Increased imports of liquefied natural gas to replace Russian supplies have helped, as did a
relatively mild winter, which meant the region didn’t need to dip into storage sites too extensively.
Reserves are almost 67% full for Europe, compared with a five-year average of about 50%. German
stockpiles are at 73%, according to data from Gas Infrastructure Europe.
Economic weakness is also playing a part by curtailing energy consumption. China’s recovery has
lost momentum, European manufacturing is in a deep slump and Germany unexpectedly shrank in
the first quarter, tipping it into a recession.

Plus Europe has been pushing to build more renewables. New solar and wind farms and good
weather conditions have helped reduce the need for gas in power generation this year, easing
demand even further.
The drop in prices “is excellent news for Europe and shows that increased LNG imports as well as
demand reduction managed to swiftly rebalance the European market after Russia closed the taps,”
said Georg Zachmann, a senior fellow at Brussels-based think tank Bruegel.
For households, the price benefits are clear to see. Euro-area inflation probably slowed to 6.3% in
May, the lowest since just before Russia invaded Ukraine. In the report, due Tuesday, economists
at Nomura say they expect to see “lower wholesale energy prices reaching consumers broadly
across the euro area.”
But even after central banks
hiked interest rates,
underlying measures of
inflation are proving more
sticky. That’s partly
because energy costs have
radiated out to the price of
goods and services in the
wider economy. As
headline inflation falls back,
wage pressure will
moderate but that process
will take time.
For most sectors, the crisis
began when Russia
invaded Ukraine in
February 2022. For energy
it began two years ago
when Moscow first started
squeezing supplies by
declining to increase deliveries to Europe via Ukraine. Now, Ukraine is the last remaining route for
Russia’s piped gas to western Europe after the shuttered Nord Stream link to Germany was
damaged in September.
The market is closely watching gas demand from China. European gas prices could fall even further,
below €20 a megawatt-hour, if Chinese LNG imports prove very weak, according to analysts at
Energy Aspects.
In Europe itself, the current low prices aren’t triggering an increase in industrial demand, which was
cut last year during the surge in energy costs. If and when this will return is one of the biggest
questions for gas traders trying to judge where the bottom of the market might be. Some are saying
that part of that loss will be permanent.
“Demand destruction is a nice phrase for industry collapse,” said Brenda Shaffer, a senior fellow at
the Atlantic Council’s Global Energy Center in Washington. “Due to the high energy prices in
Europe, many industries, especially gas intensive ones, either collapsed or moved outside of
Europe.”
“Those industries won’t return, even if energy prices come down,” she added.

European gas prices could fall below zero – traders
Short-term natural gas prices in some parts of the EU could briefly dip below zero this summer if
subdued demand doesn’t keep up with a growing supply glut, according to traders cited by
Bloomberg.
A situation when “producers effectively pay someone to take their gas” is looking ever more possible
as prices plummet to pre-crisis levels, the traders claimed.
“Individual regional gas markets in Europe could go negative when you have hours and days with
renewable production,” Peder Bjorland, vice president for gas trading and optimization at oil
major Equinor ASA, told the outlet at the annual E-World energy
fair in Essen, Germany. “There is quite a big distance from the
price level we see now and to the single-digit and negative prices,
and a lot can happen on that route,” he added.
European gas stockpiles are above typical seasonal levels at
about 66% full, and some experts expect storage sites to be filled
up well ahead of the heating season, according to the report.
“If everything continues like this, we are going to be full fairly early
during the summer, by September or October, and then it all
depends on how early winter kicks in,” said Gyorgy Vargha, chief
executive officer of Swiss trading firm MET International. “In a
very short term, for a few days if the storage is full, we could see
some single-digit prices potentially because of the physical bottlenecks.”
Last August, the cost of EU gas futures hit a record high of €345 ($380) per megawatt hour following
the loss of a large part of Russian supplies in light of the sanctions. However, a mild winter, efforts
to reduce consumption, and weak Chinese demand for LNG sent prices down to their current levels.
Front-month futures at the TTF hub, the benchmark for Europe’s gas trading, have been extending
losses below €26 ($28) per megawatt-hour (MWh), to their lowest levels since 2021. They are
already down over 60% this year.
“If none of the bullish factors materialize and with no Ukrainian storage and no floating on a grand
scale, then for a few days prices may fall below €10 a megawatt-hour,” warned MET’s Vargha.
Prices could still spike in the event of supply outages at LNG plants, or if there is a complete shutoff
of Russian pipeline flows, experts believe, adding that a pickup in industrial demand could also drive
prices higher. If there are heat waves this summer with low wind speeds, wind power generation
could be crippled, driving natural gas demand higher, analysts say.

NewBase Specual Coverage
The Energy world –June -01-2023
CLEAN ENERGY
Clean energy investment is extending its lead over fossil fuels,
boosted by energy security strengths
IEA
Global investment in clean energy is on course to rise to $1.7 trillion in 2023, with solar set to eclipse
oil production for the first time. Investment in clean energy technologies is significantly outpacing
spending on fossil fuels as affordability and security concerns triggered by the global energy crisis
strengthen the momentum behind more sustainable options, according to a new IEA report.
About $2.8 trillion is set to be invested globally in energy in 2023, of which more than $1.7 trillion is
expected to go to clean technologies – including renewables, electric vehicles, nuclear power, grids,
storage, low-emissions fuels, efficiency improvements and heat pumps – according to the IEA’s
latest World Energy Investment report.
The remainder, slightly more than $1 trillion, is going to coal, gas and oil, it stated. Annual clean
energy investment is expected to rise by 24% between 2021 and 2023, driven by renewables and
electric vehicles, compared with a 15% rise in fossil fuel investment over the same period.
But more than 90% of this increase comes from advanced economies and China, presenting a
serious risk of new dividing lines in global energy if clean energy transitions don’t pick up elsewhere,
the report added.

IEA Executive Director Fatih Birol said: "Clean energy is moving fast – faster than many people
realise. This is clear in the investment trends, where clean technologies are pulling away from fossil
fuels."
"For every dollar invested in fossil fuels, about $1.7 is now going into clean energy. Five years ago,
this ratio was one-to-one. One shining example is investment in solar, which is set to overtake the
amount of investment going into oil production for the first time," he added.
Led by solar, low-emissions electricity technologies are expected to account for almost 90% of
investment in power generation.
Consumers are also investing in more electrified end-uses. Global heat pump sales have seen
double-digit annual growth since 2021, while electric vehicle sales are expected to leap by a third
this year after already surging in 2022, said the IEA report.
Clean energy investments have been boosted by a variety of factors in recent years, including
periods of strong economic growth and volatile fossil fuel prices that raised concerns about energy
security, especially following the crisis in Ukraine.
Enhanced policy support through major actions like the US Inflation Reduction Act and initiatives in
Europe, Japan, China and elsewhere have also played a role, it stated.
Spending on upstream oil and gas is expected to rise by 7% in 2023, taking it back to 2019 levels.
The few oil companies that are investing more than before the Covid-19 pandemic are mostly large
national oil companies in the Middle East.

Many fossil fuel producers made record profits last year because of higher fuel prices, but the
majority of this cash flow has gone to dividends, share buybacks and debt repayment – rather than
back into traditional supply, it said.
Nonetheless, the expected rebound in fossil fuel investment means it is set to rise in 2023 to more
than double the levels needed in 2030 in the IEA’s Net Zero Emissions by 2050 Scenario. Global
coal demand reached an all-time high in 2022, and coal investment this year is on course to reach
nearly six times the levels envisaged in 2030 in the Net Zero Scenario.
According to IEQA, the oil and gas industry’s capital spending on low-emissions alternatives such
as clean electricity, clean fuels and carbon capture technologies was less than 5% of its upstream
spending in 2022.
That level was little changed from last year – though the share is higher for some of the larger
European companies.
The biggest shortfalls in clean energy investment are in emerging and developing economies. There
are some bright spots, such as dynamic investments in solar in India and in renewables in Brazil
and parts of the Middle East.
However, investment in many countries is being held back by factors including higher interest rates,
unclear policy frameworks and market designs, weak grid infrastructure, financially strained utilities,
and a high cost of capital.
Much more needs to be done by the international community, especially to drive investment in lower-
income economies, where the private sector has been reluctant to venture.

NewBase Energy News 01-June 2023 - Issue No. 1625 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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About: Khaled Malallah Al Awadi,
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MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
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Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase 01 June-2023 Energy News issue - 1625 by Khaled Al Awadi.pdf

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NewBase 01 June-2023 Energy News issue - 1625 by Khaled Al Awadi.pdf