Page 10 - AfrOil Week 50 2020
P. 10

AfrOil                                              NRG                                                AfrOil

                         The Brazilian gas industry has long been under  gas infrastructure is becoming increasingly
                         the exclusive control of Petrobras, the national oil  problematic.
                         company (NOC). But the new bill aims to make
                         room for private investors, partly by limiting ver-  If you’d like to read more about the key events shaping
                         tical integration (that is, by barring gas produc-  the Middle East’s oil and gas sector then please click
                         ers from acting as distributors and vice versa).   here for NewsBase’s MEOG Monitor .
                         It also swaps the existing concession regime for
                         gas distribution for a system of authorisations  NorthAmOil: Canadian decarbonisation
                         that will be overseen by the National Agency  The end of the year has seen a significant policy
                         of Petroleum, Natural Gas and Biofuels (ANP).  development emerge in Canada, while news of
                         Government officials hope the latter measure  layoffs continued to emanate from the US’ oil
                         will help eliminate bureaucratic hurdles to the  and gas industry.
                         construction of new gas pipelines.     In Canada, Prime Minister Justin Trudeau
                                                              has stepped up his decarbonisation push, unveil-
                         If you’d like to read more about the key events shaping   ing a strategy that includes a gradual increase in
                         the Latin American oil and gas sector then please click  the country’s carbon tax over the coming decade.
                         here for NewsBase’s LatAmOil Monitor .  His plan, which is aimed at Canada meeting its
                                                              2030 greenhouse gas (GHG) emissions target
                         MEOG: Attacks and unrest             after missing previous ones, centres on the coun-
                         Oil prices have rebounded in recent weeks as a  try’s carbon tax increasing by CAD15 ($12) per
                         string of attacks on oil infrastructure and politi-  tonne per year between 2023 and 2030.
                         cal unrest have reintroduced an element of geo-  The current price is CAD30 ($24) per tonne
                         political risk into pricing.         and under the plan the price hikes would con-
                           In Kurdistan, usually the least restive part of  tinue until it hits CAD170 ($133) per tonne.
                         Iraq, protests about unpaid public sector salaries   The plan seeks to put Canada on track to cut
                         have boiled over and threatened Erbil’s vital oil  GHG emissions by around 40% below 2005 lev-  Jeddah was the
                         revenues. With public servants in the region not  els by 2030, compared with the previous goal of   site of an oil
                         having received their salaries in full since April,  30%. But there is opposition to the plan, with oil
                         the Kurdistan Regional Government (KRG) has  production leader Alberta saying it would chal-  tanker explosion
                         resorted to banning protests and travel between  lenge the tax hikes in court. Regardless of how
                         cities, as well as restricting internet access in an  successful the challenge is, the new target is likely   this week
                         attempt to slow the spread of unrest. So desperate  to complicate the path forward for the province,
                         is the KRG’s plight that it has agreed to provide  which was hit hard by lower oil prices this year.
                         the federal oil marketing firm with ‘unspecified   In the US, meanwhile, it emerged last week
                         quantities’ of oil in exchange for its 12.67% share  that Parsley Energy would lay off most of its
                         of the Iraqi budget.                 workers in Austin, Texas as part of its upcoming
                           Attacks have continued to plague Saudi Ara-  sale to Pioneer Natural Resources. The $4.5bn
                         bia’s Red Sea coast, with Jeddah the site of an oil  transaction comes as consolidation picks up
                         tanker explosion this week. While there were  pace in the US oil and gas industry. A number of
                         no casualties, the attack is the latest in a string  mergers are currently underway, but while these
                         of small but threatening moves against Saudi  may help companies to survive, the same cannot
                         Aramco’s oil infrastructure and follows hits on  necessarily be said for their workforces.
                         tankers, a distribution centre and other infra-  The Parsley layoffs include 234 workers, Reu-
                         structure in recent months.          ters reported, citing a notice to the Texas Work-
                           Meanwhile, a pipeline carrying crude from  force Commission, though it added that some
                         the supergiant Marun oilfield to the city of  of those employees would be offered jobs with
                         Isfahan caught fire this week following a land-  Pioneer in Las Colinas or Midland, Texas.
                         slide. The incident appears to have been caused
                         by the integrity of the conduit rather than an   If you’d like to read more about the key events shaping
                         attack, though this will come as little consola-  the North American oil and gas sector then please click
                         tion to NIOC, whose vast and ageing oil and   here for NewsBase’s NorthAmOil Monitor.™

       P10                                      www. NEWSBASE .com                      Week 50   16•December•2020
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