This year’s influential annual energy outlook from BP, published at the start of BP Energy Week, suggests peak oil demand may have already been reached last year. This marks a dramatic shift from last year when the base case expected consumption to grow over the next decade reaching a peak in the 2030s.
The new report sees oil being replaced by clean electricity from windfarms, solar panels and hydropower plants as renewable energy emerges as the fastest-growing energy source on record.
Bernard Looney, who became chief executive in February, said the report was “instrumental” in developing BP’s strategy for the energy transition, although the company stressed that the scenarios are not predictions.
He commented that ‘it was very difficult to know’ how the oil market trajectory will bear out, but it was possible that demand had hit its maximum level. “Could it have happened? It could have,” he said.
The central theme of this influential report is that the combination of the pandemic and increasing climate action may have hastened ‘peak oil’ which could, potentially, see absolute demand falling for the first time in an industry that has enjoyed sustained growth for more than 100 years.
Looking at likely energy demand over the next 30 years, two of the three scenarios considered by BP suggest that demand reached a peak in 2019 and is already into the start of a decades-long decline. The third scenario, based on no acceleration in climate action, suggests that demand will plateau at the 2019 level for several years before declining from around 2035.
While oil demand is not expected to collapse, a plateau or decline in consumption would fundamentally alter the outlook for investment in the industry and the willingness of shareholders to keep funding new projects.
Looney, said he was “more convinced than ever” that BP must embrace a low-carbon future and that the findings would help the company to “better understand the changing energy landscape” and be instrumental in helping it develop its plans to become a net zero energy company by 2050.
Whilst this appears to offer a gloomy outlook for the fossil fuel industry, it can also be viewed as a further opportunity for those involved to embrace transformation. Following the publication of the outlook, Looney has shared a blog, ‘10 reasons to be positive about the energy transition’, and commented;
“Anyone who knows me will probably accept I am not one for outrage. I’d rather find solutions than take positions. But I certainly find hope in optimism. And the belief that we can do good in this world.”
Airport Energy Services, a division of Moove Fuels, announces its reappointment as a ground fuel supplier to Heathrow Airport Ltd.
Geoff Hall, general manager, Airport Energy Services, commented;
“We are delighted to have renewed our long-standing relationship with Heathrow Airport and look forward to continuing to service Heathrow and the wider airport business community.”
“This contract renewal demonstrates our commitment to continued investment in the UK’s airports and our intention to play our part in supporting the recovery of this vital sector from the impact of the COVID-19 pandemic.” added Darren Borras, business unit director, Moove Fuels.
Providing a specialised ground fuel management service for over 20 years, Airport Energy Service’s 24/7 refuelling service is designed to meet the specific demands of the unique airport environment and the companies operating within.
OGUK has hailed the grit and resilience of the thousands of people working for the critical sector as it opened nominations for its annual awards today.
Throughout the coronavirus pandemic, key workers both on and offshore continued to safely operate installations around the UK Continental Shelf, supporting the UK’s security of energy supply. While seeking to deal with the economic fall-out of the low oil and gas prices brought about by the pandemic, the industry continued with its work on Roadmap 2035, making major commitments to halve emissions from the production of oil and gas in the next decade as well as progressing its plans to support carbon cutting solutions including carbon capture usage and storage and hydrogen.
The awards, sponsored by Shell, will be held on 10 December this year, with hopes that its virtual format will make it more accessible not only to the industry workforce, but to family, friends and anyone with an interest in how the sector is shaping up as part of a low carbon future.
Commenting as nominations open, OGUK chief executive Deirdre Michie said;
“This has been extraordinary year in which our industry, only just beginning to recover from the last downturn, finds itself facing more dark days ahead. Yet, in spite of the personal and professional challenges the coronavirus pandemic brought on all industries, companies and people, our key workers ensured our critical industry never stopped operating.
“This is the North Sea spirit and grit we are known for, working in tough circumstances to provide affordable energy to millions across the UK. It is this same resilience which should give confidence that our changing industry is and will continue to step forward by cutting its emissions and in using its skills and expertise to develop the solutions needed to meet our country’s climate ambitions. We remain on track to deliver our ambitious plan to realise the full potential of our sector through the energy transition, Roadmap 2035.
“With a new virtual format, OGUK’s annual awards are an opportunity to tell our positive story to more people than ever before. Whether it’s family, friends, or you want to know more about how our industry is changing and about the people who make this sector the amazing industry that it is, we hope everyone will enjoy taking part in acknowledging and celebrating inspirational and impressive contributions.”
Nominations close on 2 October and companies are being encouraged to champion talent and innovation, with nine awards up for grabs this year.
Shell UK upstream vice president Steve Phimister said;
“2020 has thrown down challenge after challenge for the sector. But our people have stepped up and met it, maintaining the critical energy supplies that the UK relies on, as well as starting to address the all-important subject of Energy Transition. We can all be proud of our huge efforts right across the industry, and I look forward to seeing our most important asset – our people – celebrated at these awards.”
GripHero has appointed former BP and ADNOC senior executive John Carey as chairman. The move comes as GripHero looks to meet increased demand for safe, convenient and environmentally friendly hand-protection at forecourts and fuel stations globally. GripHero’s internationally patented hand-protection system is ATEX-certified and anti-static, allowing it to be fitted on fuel pump handles, which improves convenience and – combined with its single item release system – removes waste. With a plastic and carbon footprint over 70% lower than standard gloves, GripHero has been independently verified as the greenest product of its type on the market.
Updates to the Renewable Transport Fuel Obligation (RTFO) in January 2021 will see fuel suppliers required to increase the amount of renewable fuel they use to comply with the scheme. Introduced in 2008 by the UK Government to drive greenhouse gas emission (GHG) reductions in the transport sector, the scheme mandates the adoption of renewable fuels for road vehicles, non-road mobile machinery and — as of 2018 — aircraft.
Transport is the UK’s biggest industry polluter, generating 28 per cent of the UK-wide total in 2019. The RTFO is proving to be a robust scheme for driving sustainability in the transport industry by reducing GHG emissions. All transport fuel suppliers who provide 450,000 litres or more of petrol, diesel or gas oil must include a percentage of renewable fuels as part of their overall supply or pay per litre to buy out of the scheme.
Each year the RTFO increases the amount of renewable fuel suppliers must include in order to generate bigger carbon savings year on year across the transport industry. These percentage increases play a vital role in enabling the UK is to meet its targets to bring all GHG emissions to net zero by 2050.
In 2021, fuel suppliers will need to increase the amount of renewable or development fuel in its supplies to 10.68 per cent of their total supply levels.
In January 2019, the RTFO added advanced development fuels into the mix, giving fuel suppliers the choice to integrate next generation biofuels into its supplies alongside standard renewables. Development fuels are made from sustainable waste or residual feedstock, with the exclusion of segregated oils and fats and renewable fuels of non-biological origin (RFNBOs). For a development fuel to qualify under the RTFO scheme the GHG saving must be at least 60 per cent more than that offset by fossil fuels. The renewable diesel must also be capable of being blended at a rate of at least 25 per cent with conventional diesel and still be able to meet the EN590 fuel specification. As a result of its superior carbon crunching credentials, fuels that meet the development fuel criteria receive double the amount of Renewable Transport Fuel Certificates (RTFCs) per litre or kilogram supplied compared with standard renewables.
“Development and advanced biofuels overcome many of the limitations of first-generation biofuels,” explained Matthew Stone, chairman of Renovare Fuels. “As an example, our fuel is physically and chemically closer to conventional fossil fuels in the way it performs and in the quality of the end product, but produces only three grams of carbon dioxide equivalent per megajoule of biomass; only three per cent of that produced by fossil fuels.
“There is a ceiling to the impact that standard biofuels can make in achieving GHG emission reductions, because of the type of feedstock they use and the low fuel quality.
“In contrast, there’s no limit at all with development fuels. They are designed specifically to eliminate any emissions in the production process and radically reduce those generated when used as an end fuel. Development fuels unlock the true potential of biofuels, and therefore have the potential to play a vital role in the UK hitting its GHG targets.”
Renovare’s development fuel is one of the first to be approved for use in the UK by the Department of Transport. The company will develop a new production facility in early 2021 at a site based in England.
The development of biofuels for the aviation sector is considered in greater depth in the October issue of Fuel Oil News.
CLH has entered into agreement with Inter Pipeline Ltd to acquire the liquid product storage facilities of its subsidiary, Inter Terminals, in the United Kingdom, Ireland, Germany and the Netherlands.
After Inter Pipeline put the sale of their storage terminal on hold at the start of this year, the transaction is expected to complete in the fourth quarter of 2020, subject to customary closing conditions and regulatory approvals.
Through this transaction, a further 15 liquid product storage terminals will be added to CLH’s current network, making the company the leader in Europe with operations in 8 countries.
The chairman of CLH, José Luis López de Silanes, stated that;
“This agreement represents a unique opportunity to continue the company’s international expansion and consolidate its presence in the European market”.
CLH’s chief executive officer, Jorge Lanza, added;
“This transaction will expand CLH’s knowledge on chemical products and biofuel storage by gaining the experience of a European leader in these business segments. It is also in line with CLH’s strategy of diversification beyond hydrocarbons in response to the challenges of climate change.”
“CLH is acquiring a high-quality business with an outstanding team who have made an important contribution to the success and growth of Inter Pipeline over the past 15-years,” stated Christian Bayle, president and chief executive officer of Inter Pipeline.
The 11 UK terminals included in the agreement have a capacity of more than 2 million cubic metres and can store a wide range of liquid products related to a number of supply chains including diverse chemical products, as well as traditional fuels and biofuels. Integrating these terminal facilities in the United Kingdom offers an excellent complement to CLH-PS, the CLH Group subsidiary already operating in the country.
In addition, the agreement also includes one terminal in Ireland, where CLH already operates at the Dublin airport through its subsidiary CLH Aviation Ireland, plus two more in Germany and one in the Netherlands.
The Inter Terminals businesses in the scope of the agreement currently have a workforce of 530 highly experienced and technically qualified employees and CLH is committed to ensure facilities continue to be operated under the highest levels of safety and quality conditions.
StocExpo, the world’s leading bulk liquid storage event, is searching for the industry’s most dynamic professionals under the age of 40. The new initiative will celebrate the next generation of individuals operating at the top of their game in the tank storage, bulk liquid and linked supply chain professions.
Professionals working in the industry are encouraged to self-nominate if they are under 40. There is also the option to nominate eligible colleagues that are making a significant contribution to the sector.
Mark Rimmer, StocExpo divisional director, comments;
“Attracting and retaining the next generation of talent is absolutely critical when it comes to the long-term success of the tank storage industry. It’s where the industry’s future ideas, innovation, inspiration and leaders will all come from.
“That’s why we are so proud to be launching our Forty Under 40 initiative. We want to celebrate & support the next generation of talent within the industry and showcase their contribution so far. So, if you know someone who merits being recognised, or you are that person, we want to hear from you.”
Entrants will be judged by a panel of industry experts looking for individuals who, thanks to their excellence and commitment, are making a real difference to their organisation and the wider industry.
The successful 40 will be celebrated with a drink’s reception held in their honour at StocExpo 2021, taking place 16th – 18th March. All will be provided with special VIP passes, providing free access to the event’s conference programme and other exclusive zones, such as the VIP lounge. On top of this, the 40 will be invited to participate in all of StocExpo’s “Next Gen” related content and activities.
The 40 will also be offered half price tickets to the 2021 Global Tank Storage Awards and will be celebrated on stage in recognition of their achievement.
Entries close 20 November. To find out more about StocExpo or to nominate yourself or a colleague, visit https://www.stocexpo.com/en/forty-under-40/
Greenergy has agreed to purchase 100% of the shares of Amber Petroleum (‘Amber’), an independent fuel distributor and retailer based in the Republic of Ireland.
Amber’s operations include company-owned and dealer-owned forecourts, comprising a network of 35 sites around the country, along with fuels distribution and home heating depots.
Christian Flach, Greenergy CEO said;
“One of our key strategic objectives is to integrate our existing supply footprint with our expanding retail presence. The acquisition of Amber follows our recent retail investment in 230 retail sites in Canada and will enhance our capabilities in Ireland by building on our existing infrastructure, supply and retail operations. We look forward to welcoming the Amber team to Greenergy.”
Liam Fitzgerald, owner and managing director of Amber Petroleum added;
“Having served our loyal customers for over 40 years Amber’s success has been based on strong relationships with customers, suppliers and staff and we know that Greenergy shares these same values. I am confident that Amber will continue to grow its profile as part of the wider Greenergy organisation.”
Amber’s existing management team and staff will remain in place.
Certas Energy’s latest HGV refuelling bunker site at the Port of Southampton, close to Dock Gate 20, will be operational in October 2020. Working in partnership with leading port operator Associated British Ports (ABP), the HGV refuelling facility is the first of its kind to be opened inside the port.
Featuring eight high-speed refuelling pumps, the facility will dispense fuel at speeds of up to 120 litres per minute. The site has been designed to service the high volume of HGVs that pass through the port each day, and will provide a quick, efficient and conveniently-located facility for port users.
The new refuelling facility, adjacent to the DP World Southampton container terminal, will dispense DERV, red diesel, AdBlue and cleaner-burning diesel alternative, Shell GTL Fuel. This drop-in alternative fuel can be used immediately in HGVs to reduce harmful emissions of nitrogen oxides (NOx) and particulate matter (PM) without having to make engine or equipment modifications.
Commenting on the new refuelling site, Clive Thomas, ABP Port of Southampton’s head of commercial and property, said; “We are pleased to be able to offer Shell GTL Fuel at the port for site users for the first time. This significant move supports our commitment to further improve local air quality and facilitates smoother operations for visiting HGVs.”
Andrew Goodwin, national bunker manager for Certas Energy added; “The Port of Southampton is one of the UK’s key logistics hubs, handling 14 million tonnes of cargo annually and an average of 1,800 HGVs every day. Our new refuelling facility will enable lorry drivers to refuel quickly and conveniently at the port before picking up or after dropping off their load – so they can continue the rest of their journey uninterrupted.
“Our site at the Port of Southampton builds on Certas Energy’s experience and success in fuelling the booming logistics sector at some of the UK’s largest ports. We are delighted to be working with ABP in delivering this scheme which aims to reduce the turnaround time at the Port of Southampton and further expand our strategy of investing in key strategic locations to support UK logistics.”
The new refuelling facility located at the heart of the Port of Southampton will join Certas Energy’s network of 21 bunker sites across the UK. For more information, please visit https://certasenergy.co.uk/my-business/fuel-cards-and-bunker-sites/southampton-hgv-refuelling-site/
Further underlining its commitment to reducing the carbon intensity of the fuels it produces, a huge processing unit rolls into the Phillips 66 Humber Refinery.
A UK leader in low carbon liquid fuel development and processing, Phillips 66 Limited’s Humber Refinery, based in Northern Lincolnshire has a proven history of developing new low carbon fuels, being the first in the UK to process used cooking oil. The refinery converts UK & International waste streams to finished bio road fuels.
In a significant investment that expands the refinery’s capability to process used cooking oil (UCO), it recently took delivery of a new processing module, developed by the refinery’s project group to facilitate this. The unit was transported from ENGIE Fabricom in Immingham where it was built arriving on a self-propelled modular transporter (SPMT).
Darren Cunningham, Humber Refinery general manager/UK director, said; “We are pleased to take delivery of our new UCO module at our Humber Refinery. I would like to congratulate all the teams that have been working so hard on this project through such a turbulent time, delivering the project safely. This investment further highlights the refinery’s commitment and investment to further expand our production of bio fuels and reinforces our reputation as the Refinery of the Future.”
Jeff Noble, head of UK operations, ENGIE Fabricom, also commented; “We are delighted to be partnering with Phillips 66 in successfully delivering the UCO Project. This includes off site PAU manufacture and assembly which was achieved on time, within budget and executed without incident. P66 are a valued customer and this project has provided ENGIE Fabricom with the opportunity to develop our relationship by demonstrating our full suite of capabilities. We look forward to supporting P66 with the remainder of this project and to provide long term sustainability for the refinery.”
“Our team at ENGIE Fabricom’s Immingham manufacturing facility, are proud to have worked closely with P66 in the safe delivery of this project, adapting brilliantly with the unique challenges faced by all in 2020’s unprecedented circumstances. With both companies also motivated by the environmental benefits from such innovative Bio-Fuel ventures.” Said Mark Astwood, manufacturing facility manager, ENGIE Fabricom Immingham.
This Humber Refinery expansion project enabling increased bio-fuels capacity further supports UK downstream low carbon fuels contributing to a net zero future for the UK.
