Energy This Week

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China stimulus buoys oil prices

Oil prices recorded their biggest weekly loss in more than a month last week, with Brent crude falling more than 7 per cent. They were hit by the weakening demand outlook, lessening fears of a supply disruption in the Middle East and a resumption of full Libyan oil exports. However, prices bounced back on Monday, helped by interest rate cuts in China. Having begun last week at $79.04, Brent closed at $76.04 on Tuesday, up from Friday’s $73.06 per barrel.

The International Energy Agency says that oil and gas prices will fall later this decade due to a surplus of production, and a surge in clean energy technologies. Despite this, the world is headed for 2.4°C of global warming, well above the 1.5°C target of the Paris Agreement.

Nuclear could answer the data centre electricity question

Abu Dhabi-based Khazna is planning to build more data centres in the UAE, with the country’s capacity set to double to 850 megawatts by 2029. This is a significant contribution to national electricity demand. Its centres are intended to be energy-efficient and zero-waste. The rise of data centres is boosting electricity consumption globally, and reviving interest in nuclear as a low-carbon power source. Britain, though, has failed to make the most of its nuclear opportunity. The new Labour government should take the chance to turn that around.

OQ sale brings in $2 billion

Oman’s OQ Exploration and Production raised $2.02 billion from its initial public offering. Twenty-five per cent of the oil and gas production company was listed on the Muscat Stock Exchange, pricing at the top of its indicated range.

The UAE’s largest fuel retailer, Adnoc Distribution, will optimise its operations using more than 20 artificial intelligence tools, says chief executive Bader Al Lamki. This includes building new petrol stations in the most efficient way, moving products from depots to service stations, and analysing more than 200 million annual transactions.

Adnoc and Masdar move on low-carbon hydrogen

Adnoc’s acquisition of a majority stake in fertiliser maker Fertiglobe should enable it to secure more long-term contracts for low-carbon ammonia, says chief executive Ahmed El Hoshy. Fertiglobe won Germany’s first auction for renewable-made ammonia this year.

Ardian, a French private equity group, is looking into investing in green hydrogen with Abu Dhabi’s clean energy company Masdar. With $169 billion of assets under management, Ardian is also interested in hydrogen in Saudi Arabia. Tesla and state-backed UAEV have been granted the first independent electric vehicle charging licences by the Dubai Electricity and Water Authority. By the end of last year, there were 25,929 EVs on Dubai’s roads, up from 15,100 a year before.

UAE agricultural approach could help global climate campaign

The farm of Emirati entrepreneur Abdulrahman Al Shamsi grows fruit, vegetables and raises livestock and poultry, in a closed, self-sufficient system. Such climate solutions developed for the hot and arid conditions of farms in the UAE could help global food security.

Astronauts say they see worrying signs of climate change on their flights over Earth, such as shrinking ice-cover in the Arctic and devastation to the Amazon rainforest. At least nine million people worldwide are currently displaced because of climate-linked crises, and the UN refugee agency says there is not enough support for them.