Energy Industry Observation Bi-Monthly Newsletter (Issue 3)

Date: Nov 2014

Global Energy Overview

Oil Prices Steady Despite Geopolitics
Regional escalations have rocked the international oil market amid a global economic recovery. Although geopolitics have caused intensifying clashes between major powers, international oil prices have remained steady, with a slight increase.
Energy Security from the Perspective of Exporting Countries
The security of energy exporting countries is not a new topic. Since the discovery of large scale petroleum deposits in the Middle East, it has been a continual game between resource-rich countries and multi-national oil giants.

Energy Watch by Regions

“Butterfly effect” of Sino-Russian Natural Gas Cooperation
The execution of the Sino-Russian natural gas agreement is not only the basis for subsequent cooperation between the two countries, but also affects the supply and demand of the global energy market. Cooperation between China and Russia has accelerated following the conclusion of a natural gas agreement between the two countries worth up to $400bn. Russia has recently chosen to deepen Sino-Russian cooperation due to increasingly strict sanctions from the West.
Indian Energy Problem Amid Power Crisis
India has recently faced a severe power crisis due to a lack of coal, which has caused a power shortage of at least 5000MW in northern India. According to recent data, the coal supply in half of India’s thermal power plants cannot be sustained for more than one week. India’s Minister of Power and Coal said that the situation for the thermal power plants has worsened due to insufficient power generation from hydropower stations as a result of limited rainfall this year. On September 9, relevant Indian parties discussed countermeasures to cope with the crisis.
Nigeria: Crisis and Rebirth
Nigeria has abundant natural gas resources, equivalent to its oil reserve. Proven natural gas reserves now stand at around 188 trillion cubic feet, ranking the country 9th in the world, while the potential reserves are even greater (up to 600 trillion cubic feet). In addition to its plentiful reserves, Nigeria’s natural gas resources have unique advantages– good quality, sulfur-free, plentiful heavy components - making them desirable for development and exploitation.

Energy Company Updates

Rockefeller Reinvests in Green Energy
Rockefeller, one of the three global oil super giants, made an astonishing decision a few days ago to slash its investments in fossil fuels (such as petroleum and coal) and redirect investments into the renewable energy industry. No doubt this decision is a sign that the “Oil Empire” created by John D Rockefeller will abandon its “primary fortune making business” and switch to the clean energy sector.
Russian Petroleum Company Files Lawsuit against EU
Rosneft Oil has filed a lawsuit against the EU in the European Court, asking the Court to lift EU sanctions which restrict its and other Russian enterprises’ access to European capital markets.
CNOOC and Shell: A New Deepwater Natural Gas Discovery in Gabon
China’s third largest oil company CNOOC and multi-national oil giant Dutch Royal Shell announced a large-scale deepwater natural gas discovery in the waters off of Leopard, Gabon. The prospecting well Leopard-1 is located in license BCD10, around 145 kilometers from the Gabonese coast. The well has a depth of 2,110 m.
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