In a dramatic announcement, a report released by Paris-based International Energy Agency (IEA) is calling for an immediate halt to investments in oil and gas projects in an effort to meet zero carbon emissions by 2050
IEA said meeting the Paris Agreement’s goals of limiting global warming to 1.5°C above preindustrial levels will require “an unprecedented clean technology push by 2030.”
IEA’s report, Net Zero by 2050, A Roadmap for the Global Energy Sector, calls for a massive scaling up of renewables this decade, with annual additions of solar of 630 GW and 390 GW of wind by 2030 – four times the record levels set in 2020. IEA targets 70% of electricity generation to be met by solar and wind by 2050.
Besides an immediate halt to new oil and gas projects, IEA said in the 224-page report that other key elements in supporting net-zero emissions would be stopping the sale of new international combustion engine passenger car sales by 2035, with electric vehicles making up 60% of car sales by 2030.
While energy companies have taken strides to increase investments in renewables, such as Shell, BP and Equinor, it may push others, such as ExxonMobil, to speed their efforts.
Meanwhile, Brent crude oil rose to nearly US$70 per barrel, propelled by bullish outlooks for the economic recoveries in the US and Europe and a rebound in demand. Brent crude oil (ICE) futures for July 2021 contracts were trading at US$69.87 as of EDT 8:38 AM on 18 May, according to Bloomberg.
Offshore jack-up activity rises
Meanwhile global offshore jack-up drilling jumped for week 20, with 338 units contracted, up five week-on-week, according to Westwood Global Energy’s RigLogix. This matched the highest week-on-week rise in the global offshore jack-up market registered just a month ago between weeks 15-16. There were gains posted across the board in the North Sea, southeast Asia and the Middle East.
By contrast, the global floater market stumbled, falling from 117 contracted units to 113 for the week, with the North Sea dropping from 23 to 20 contracted rigs.
Lundin Energy reported the massive lifting operation for the second processing platform at Johan Sverdrup Phase 2 was “progressing according to plan” supported by Heerema’s semi-submersible heavy-lift crane vessel Sleipnir, with expectations of coming on stream in Q2 2022.
Rigs for fast-track LNG project
Maersk Drilling reported securing contracts for the UK North Sea and Suriname, as well as selling two jack-ups to New Fortress Energy in separate transactions valued at US$31M.
The sale, set to be finalised in June, will see new owner New Fortress Energy use the rigs for “non-drilling purposes as part of their planned Fast LNG project.”
The jack-up rigs involved in the sale were 1986-built Maersk Guardian, warm-stacked in Esbjerg, Denmark since 2020, and 1993-built Maersk Gallant, cold-stacked in Dundee, UK after ending its latest contract offshore the UK in 2017.
Maersk Drilling chief executive Jørn Madsen said the transactions would contribute to a rationalisation of the global offshore drilling fleet and the rigs would be “deployed by New Fortress Energy for a project which focuses on providing low-carbon affordable energy.”
INEOS Oil & Gas UK signed a contract with the Danish driller to employ the harsh-environment jack-up rig Maersk Resolve for drilling and hydraulic stimulation at the Breagh Alpha A11 well in block 42/13 of the UK North Sea. This contract, starting in Q3 2021, is in direct continuation of the rig’s current work scope, with an estimated duration of 140 days. Valued at US$11.3M, the contract contains four additional one-well options. Maersk Resolve is currently operating in the UK sector of the North Sea for Spirit Energy.
In the floater market, Maersk Drilling secured a one-well contract extension with Total to drill an additional appraisal well in Suriname’s Block 58 for the semi-submersible rig Maersk Developer. Lasting about 100 days, the extension will start at the end of May in direct continuation of the rig’s previously agreed work scope. The contract value of the extension is approximately US$20M, including integrated services provided.
Riviera Maritime Media’s Offshore Energy Webinar Week is being held 14 June 2021 – use this link for more details and to register
© 2023 Riviera Maritime Media Ltd.