Thursday Evening Iraq Economy News Highlights 6-30-22
Thursday Evening Iraq Economy News Highlights 6-30-22
Why Did Natural Gas Not Topple Oil From The Throne Of Energy?
Why did natural gas not topple oil from the throne of energy? 2008
Why did natural gas not topple oil from the throne of energy? 102 Ahmed Sabah Abdullah
For a hundred years, oil has been undisputed on the throne of global energy sources. Its strategic importance is great, as it is the decisive factor in wars and the engine of the economy in peacetime, and this was not due to the huge amount of energy it supplies only, as the net energy contained in the total world consumption of oil is less than 40% of The global energy mix, but its importance comes from the flexibility of using that energy in transporting and storing it, in addition to the ease of moving the means of transport that drive the economy and move people and goods around the world.
On the other hand, natural gas constitutes a relatively cheap fuel with high energy density when liquefied, and its emissions rate is 28% lower than oil when obtaining the same amount of energy. Today, the world consumes 141.2 million bottles (one million standard cubic feet of gas) equivalent to 24.34 billion barrels of oil annually. While the world consumes 36 billion barrels of oil annually, 65% of it is used as fuel for various means of transportation and to operate construction and agricultural equipment, i.e. up to 23.4 billion barrels annually.
As for the price, it is LNG Liquid Natural Gas Much cheaper than oil, as 30 liters of gasoline costs an average of 30 dollars that contains approximately one million British thermal units, at the same time, 1,000 cubic feet of gas also contains one million British thermal units that can be liquefied to be 47.2 liters of liquefied gas, its cost does not exceed 10 dollars, so We may ask why natural gas has not captured a large portion of the global transportation fuel market? Why was its use as fuel restricted to a very limited number of cars, trucks and ships?
While we have not seen a train, a plane, or a gas-powered bulldozer, here I will answer these questions in detail.
First, natural gas as an energy source is new to the world, despite the increase in its use since the sixties of the last century, but the large production development operations did not start until the nineties and it was mostly consumed locally within the same country, as the global natural gas trade until 1990 did not exceed 15% Of the world’s total consumption of natural gas, more than 97% of it is transported through pipelines as dry gas, and its use was limited to the industrial field and for heating.
Therefore, a well-established oil industry was found before it, with its fields, refineries, markets, ports, tankers, pipelines, fuel filling stations, equipment that operates them, and transportation means. Which was adapted and designed to suit the work in it, so it was not easy to change this huge infrastructure that people are accustomed to and economies have adapted to.
Not enough liquefied gasThere is no popular acceptance of it, but in the field of air transport, the issue is more complex. The design of a successful commercial aircraft is expensive and companies do not do it constantly.
Some aircraft designs have remained unchanged for up to 50 years, so these companies do not risk an expensive gas plane project that travelers are afraid of and companies are reluctant to operate. It is also not received by airports due to the lack of gaseous infrastructure in them.
Secondly, natural gas is difficult to deal with with transportation and storage, so let's say we need pipes, and these pipes are limited in their distances, which restricts the possibility of transportation. Gas pipes need larger diameters than their oil counterparts due to the low density, and this raises their cost and reduces the amount of gas transported through them as an amount of energy if we compare them with what they transport Oil pipelines, and this is what leads us to liquefy gas so that it can be loaded on tankers and exported, and this makes liquefaction the decisive factor in the matter.
Gas liquefaction is difficult and requires complex and expensive cooling facilities to cool it to -162 degrees Celsius, this liquefaction process consumes 20% of gas energy, then it can be loaded This liquefied gas is in gas tankers whose tanks usually consist of two layers of thick steel interspersed with insulators or a vacuum medium to maintain a reasonable degree of cooling and prevent the increase in pressure resulting from external heat, which causes a great danger.
Despite this, this gas needs a minimum cooling for the tank shell In some atmospheres to ensure safety, so The liquefaction and transportation processes require a lot of energy, in addition to expensive facilities and ships that operate within the highest safety standards (the construction of a gas tanker costs 200-300 million dollars), and when that tanker reaches its destination in ports designated for gas with the highest levels of safety, it is preferable to be far from others.
From ports or cities to unload its cargo and store it in tanks, preferably underground, to ensure its safety and not be exposed to any heat, and when it is needed to transport it away from the ports, it is necessary to use pipes, which are often exposed and composed of one layer that cannot maintain the pressure and temperature of liquid gas,
Therefore, the liquefied gas is returned to its gaseous statePorts or cities to unload their cargo and are stored in tanks, preferably underground, to ensure their safety and not be exposed to any heat. The liquefied gas is returned to its gaseous statePorts or cities to unload their cargo and are stored in tanks, preferably underground, to ensure their safety and not be exposed to any heat.
The liquefied gas is returned to its gaseous stateregasification in special facilities to be pumped into the pipes that take it to its final destination, and then if we want to use it as transportation fuel, it must be liquefied again in costly facilities that consume energy, and we return to losing another 20% of its energy, so the large energy loss in addition to safety measures and high safety standards makes it undesirable as transportation fuel.
Third, the gas liquefaction process has expanded during the current century with the growth of liquefied gas trade and consumption globally, and it is limited due to the huge initial investments that it requires, as the cost of the liquefaction facility is approximately $1.5 billion for each facility that produces one million tons of liquefied gas annually.
The world annually does not exceed 400 million tons, which is equivalent to 1.6 billion barrels of oil. Therefore, it cannot be relied upon as a fuel, and this leads to the fear and hesitation of manufacturers of equipment and transportation means of offering gas-powered products because the market for their sale will be very limited, which leads to a high possibility of loss.
All of these factors, the most important of which are the limited possibilities of global liquefaction, led to the contentment with transferring the majority of the global gas trade through pipelines, where the international trade of natural gas today represents 30% of its total global consumption, which made natural gas limited to some activities such as electricity generation, where 35% of it is used to generate electricity. 24% of global electricity annually, amounting to 6,600 TWh.
Gas turbines work in an excellent complementary manner with renewable energies (solar and wind) due to their speed of response as they can be operated to reach peak production in only 15 minutes, while extinguishing them requires approximately the same time, 30% of natural gas The world consumes it as fuel for heating and cooking, another 30% of natural gas is consumed as a raw material for a number of industries, the most important of which is for the production of ammonia, which is used in the manufacture of fertilizers and for the operation of some factories (usually heavy industries such as aluminum, steel and cement) directly, while 5% of gas is consumed as transportation fuel within them. Operation of pipelines.
Therefore, we find that a small number of ships are designed to run on gas because they transport gas or because gas is usually available in many ports around the world. As for cars, trucks or buses, their numbers remain limited, subject to the local policies of a particular country that encourages its acquisition due to the availability of liquefied gas or Ensuring stable supplies (usually near ports), but this remains limited and linked to the availability of filling stations that feed it along its routes. https://economy-news.net/content.php?id=28702
Oil And Gas Dispute.. Barzani: We Are Legally Preparing To Face The Pressures Of Baghdad And The Federal Oil Ministry
06/30/2022 64 Earth News/ The President of the Kurdistan Regional Government, Masrour Barzani, confirmed today, Thursday, that his government is making legal preparations under the constitution, to face the pressures of the federal government and the Federal Ministry of Oil, reiterating the readiness of the negotiating delegation of the region to visit Baghdad in this regard.
The Kurdistan Regional Government stated in a statement received by Earth News, "The President of the Kurdistan Regional Government and Chairman of the Regional Council for Oil and Gas Affairs, Masrour Barzani, supervised the first meeting of the Regional Council for Oil and Gas Affairs after amending the Oil and Gas Law.
At the meeting, which was attended by the Deputy Prime Minister and Deputy Chairman of the Regional Council for Oil and Gas Affairs Qubad Talabani, they discussed oil revenues and expenditures for the first six months of 2022.
In the first paragraph of the meeting, “the general revenues obtained from the export and sale of oil were presented, which include the total oil produced, exported and consumed locally, in addition to the average price of a barrel of oil sold during this period.”
After that, “it was discussed how the revenues were spent in financing the salaries of the six months of this year, as the Kurdistan Regional Government provided the necessary funds from oil revenues to fully finance salaries for six months of 2022, while the federal government should have sent a trillion and 200 billion dinars during the first six months of 2022, but it sent only two months’ worth of 400 billion dinars, while the regional government provided salaries monthly from oil revenues and internal revenues, and distributed salaries every month.”
The meeting also discussed “other government expenditures, except for salary expenditures obtained from oil revenues in the first six months of 2022, and it was decided that the Deloitte report, enhanced by statistics, information and figures, would be presented to public opinion next week. The meeting also stressed the need to enhance transparency in this direction, As the region provides the federal government with all information and numbers, and it does so even for public opinion in the region, Iraq and abroad, and will continue to do so, especially since the recent report of the joint team of the financial audit bureaus of the region and Baghdad regarding the audit of revenues, expenditures, debts and staffing, is evidence of this fact.”
The second period of the meeting dealt with “the latest developments regarding the relationship between the Kurdistan Regional Government and the federal government over the dispute over oil and gas, as well as the legal preparations that the Kurdistan Regional Government is making, under the constitution, to confront the pressures of the federal government and the Federal Ministry of Oil.”
The meeting stressed "the necessity of solving problems in accordance with the constitution, and reiterated the region's negotiating delegation's readiness to visit Baghdad in this regard.
Kurdistan Region.. The First Meeting Of The Regional Council For Oil And Gas Affairs Was Held
Shafaq News/ The President of Kurdistan Regional Government and Chairman of the Regional Council for Oil and Gas Affairs, Masrour Barzani, on Thursday, June 30, 2022, supervised the first meeting of the Regional Council for Oil and Gas Affairs after amending the Oil and Gas Law.
At the meeting, which was attended by the Deputy Prime Minister and Deputy Chairman of the Regional Council for Oil and Gas Affairs Qubad Talabani, they discussed oil revenues and expenditures for the first six months of 2022.
In the first paragraph of the meeting, the general revenues obtained from the export and sale of oil were presented, which include the total oil produced, exported and consumed locally, in addition to the average price of a barrel of oil sold during this period.
After that, it was discussed how the revenues were spent in financing the salaries of the six months of this year, as the Kurdistan Regional Government provided the necessary funds from oil revenues to fully finance salaries for six months of 2022, while the federal government should have sent one trillion and 200 billion dinars. During the first six months of 2022, however, it sent only two months' worth of 400 billion dinars, while the KRG provided salaries monthly from oil and internal revenues, and distributed salaries each month.
The meeting also discussed other government expenditures, except for salary expenditures obtained from oil revenues in the first six months of 2022, and it was decided that the Deloitte report, enhanced by statistics, information and figures, would be presented to public opinion next week. The meeting also stressed the need to enhance transparency in this direction, as The region provides the federal government with all information and figures, and it does so even for public opinion in the region, Iraq and abroad, and will continue to do so, especially since the recent report of the joint team of the Financial Supervision Bureaus of the region and Baghdad regarding the audit of revenues, expenditures, debts and staffing, is evidence of this fact.
The second period of the meeting dealt with the latest developments regarding the relationship between the Kurdistan Regional Government and the federal government over the dispute over oil and gas, as well as the legal preparations made by the Kurdistan Regional Government, under the constitution, to confront the pressures of the federal government and the Federal Ministry of Oil. The meeting stressed the need to solve problems in accordance with the constitution, and reiterated the region's negotiating delegation's readiness to visit Baghdad in this regard. LINK
Kurdistan Region Begins Constitutional Legal Moves To Confront "Federal Pressures"
The meeting dealt with the latest developments regarding the relationship between the Kurdistan Regional Government and the Federal Government over the dispute over oil and gas
Kurdistan Region begins constitutional legal moves to confront "federal pressures" 1656605996 kurdistan24.net-kak-masrour-barzaniThe meeting discussed oil revenues and expenditures for the first six months of 2022 - Photo: KRG
Erbil (Kurdistan 24) - The Kurdistan Region announced today, Thursday, that it has taken constitutional legal moves to confront the pressure exerted by Baghdad regarding the oil and gas file related to the region, stressing at the same time that the federal government has sent only 400 billion dinars out of a total of 1.2 trillion dinars in the first half of this year. this year.
This came during the first meeting held by the Regional Council for Oil and Gas Affairs, after the amendment of the Oil and Gas Law, headed by the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, and in the presence of the Deputy Prime Minister and Deputy Chairman of the Regional Council for Oil and Gas Affairs Qubad Talabani.
According to an official statement issued by the media office of the Prime Minister, the meeting discussed oil revenues and expenditures for the first six months of 2022.
Kurdistan Region begins constitutional legal moves to confront "federal pressures" PMPresident of the Kurdistan Regional Government and Chairman of the Regional Council for Oil and Gas Affairs Masrour Barzani
The statement added that in the first paragraph of the meeting, the general revenues obtained from the export and sale of oil were presented, which include the total oil produced, exported and consumed locally, in addition to the average price of a barrel of oil sold during this period.
He pointed out that the meeting dealt with "how to spend revenues in financing the salaries of the six months of this year, as the Kurdistan Regional Government provided the necessary funds from oil revenues to fully finance salaries for six months of 2022."
The statement stated, "While the federal government should have sent one trillion and 200 billion dinars during the first six months of 2022, it only sent a two-month amount of 400 billion dinars, while the regional government provided salaries monthly from oil revenues and internal revenues, and distributed salaries in Per month".
Kurdistan Region begins constitutional legal moves to confront "federal pressures")Part of the meeting of the Regional Council for Oil and Gas Affairs
The statement stated that the meeting also discussed other government expenditures, except for salary expenditures obtained from oil revenues in the first six months of 2022, and it was decided to present the Deloitte report, which is supported by statistics, information and figures, to public opinion next week.
The meeting also stressed, according to the statement, "the need to enhance transparency in this direction, as the region provides the federal government with all information and numbers, and it does so even for public opinion in the region, Iraq and abroad, and will continue to do so, especially since the recent report of the joint team of the financial audit bureaus of the region and Baghdad." Regarding the audit of revenues, expenditures, debts and staffing, there is evidence of this fact.”
Kurdistan Region begins constitutional legal moves to confront "federal pressures" This is the first meeting held by the Regional Council for Oil and Gas Affairs after amending the Kurdistan Region Oil and Gas Law
The second period of the meeting dealt with the latest developments regarding the relationship between the Kurdistan Regional Government and the federal government over the dispute over oil and gas, as well as the legal preparations made by the Kurdistan Regional Government, under the constitution, to confront the pressures of the federal government and the Federal Ministry of Oil.
Kurdistan Region begins constitutional legal moves to confront "federal pressures" Masrour Barzani and Qubad Talabani during the meeting
The meeting stressed the need to solve problems in accordance with the constitution, and reiterated the region's negotiating delegation's readiness to visit Baghdad in this regard, according to the statement.
Kurdistan Region begins constitutional legal moves to confront "federal pressures" LINK
OPEC + Confirms Its Decision To Increase Production In August
Economie| 06:44 - 30/06/2022 Follow - Mawazine News The "OPEC +" group, which includes the OPEC + alliance with a number of oil exporters outside it, including Russia, decided to confirm the decision to adjust the total monthly production for the month of August by increasing it by 648,000 barrels per day.
And the “OPEC +” group, which produces about 40% of global oil supply, was implementing a plan to gradually raise its production, at a value of 432,000 barrels per day, every month, starting last August, after significant cuts it implemented due to the decline in demand since the beginning of the Corona pandemic.
However, “OPEC +” decided at its meeting at the beginning of this month, to amend its oil production plan to rise by 648,000 barrels per day in the coming July and August, an increase of about 216,000 barrels per day from what was previously decided.
The group decided to hold its thirty-first ministerial meeting in the Organization of the Petroleum Exporting Countries (OPEC) on August 3. https://www.mawazin.net/Details.aspx?jimare=198113