Latest news with #onshore
Yahoo
3 days ago
- Business
- Yahoo
Walking towards the light: how solar and hydrocarbons can work together
The big oil and gas (O&G) industry players are relatively new entrants into the renewable energy world but are making serious moves into areas such as solar. In fact, solar power systems have become an essential addition to many remote O&G operations, providing a useful clean energy source for critical infrastructure. Renewable power generation is thus emerging as a key strategy to support the O&G industry's decarbonisation objectives. But how can solar energy and O&G production work together effectively and to their mutual benefit? Blending solar into hydrocarbons From remote monitoring systems to enhanced oil recovery, solar applications are transforming the sector's operational landscape. 'Solar power can be effectively integrated into oil and gas operations, especially onshore/nearshore ones, to offset the fuel usage in electricity generation and heating applications,' says Ravindra Jayant Puranik, oil & gas associate project manager at Offshore Technology's parent company GlobalData. The technology proves particularly valuable in off-grid locations, where 80% of annual energy demand can be met through solar installations. 'If there is land available, financial viability and necessary permits secured, solar can be deployed as a backup power source. Solar installations can provide long-term cost savings by reducing the reliance on diesel generators, especially in remote locations with high fuel transportation costs,' Puranik says, adding that 'depending upon the size of the solar farm, certain pumps used for oil production could operate entirely on renewable power'. Solar-powered remote monitoring capabilities include well site monitoring and control systems, well pumps, gathering centres, pipeline monitoring systems, tank level monitoring and operating security cameras. While the intermittency of solar energy can be a challenge, it can be most effective when deployed along with battery storage solutions for O&G operations, Puranik notes. He adds that 'solar power can also be used in refineries for pre-heating of crude oil during the refinery conversion process, although it does not produce temperatures high enough for cracking of hydrocarbons into high-value products.' He points to Marathon Petroleum's Illinois refinery using solar power to build on its sustainability performance, with the refinery being part of a project to install solar panels on adjacent refinery-owned land. The 30-acre solar farm will potentially avoid consuming enough grid electricity each year to equal the annual energy use of roughly 1,000 homes. According to a company statement in late 2023, during peak sunlight the panels will deliver 5MW of electricity. Some offshore O&G platforms are also utilising solar photovoltaic systems to power lighting, communications and other administrative functions. 'Solar could predominantly replace diesel generators and other carbon-intensive power sources at an oil production or processing site, thereby eliminating their emissions, which would also bode well for the public image of the company/industry,' Puranik adds. Solar: a viable investment for the O&G industry A report from the National Renewable Energy Laboratory, the US Department of Energy's primary national laboratory for energy systems research and development, says integrating clean energy into O&G operations could reduce emissions and help lower overall costs. The report states that a 'calculated cost of emissions reduction ($/tCO₂e, or tons of carbon dioxide equivalent) based on renewable energy generated indicates that a cost of carbon of $7/tCO₂e would result in a breakeven point for a renewable energy system generating 50% of the site's load'. Using data from several oilfields integrating solar in the Delaware Basin, the results indicate that smaller renewable energy technologies – for example, generating 5% of a site's load – are most 'cost optimal', decreasing 'both annual energy ($469) and demand charges ($65) by reducing grid purchases'. A captive solar plant could also generate considerable savings in terms of operational expenses, adds Puranik, and the 'long-term nature of O&G projects aligns well with the durable lifespan of solar installations, making the investment economically viable over time'. However, this is only possible if the refiner can invest a significant capital to set up the solar farm and integrate its electricity with the refinery equipment without any major modifications, and if there is land available nearby for this purpose, says Puranik. Oman ahead of the game As far back as 2015, Oman's largest O&G producer, Petroleum Development Oman (PDO), announced plans to construct a 1,021MW solar thermal plant in Miraah for thermal enhanced oil recovery at the Amal oilfield. The facility utilises sun to generate steam, which is then used in thermal enhanced oil recovery to extract heavy and viscous oil from the site. According to PDO, the facility can conserve 5.6 trillion British Thermal Units of natural gas per year, enough to meet the residential power requirements of 209,000 people in Oman. California's Aera Energy has pioneered solar integration in the state's oil operations, with construction beginning in 2019, delivering both steam and electricity to power operations at the Belridge oilfield in central California. Belridge produces around 100,000 barrels of (mostly heavy) oil per day, which is easier to recover using steam injection technology, which when injected into the well makes the oil less viscous. The solar project reduces the consumption of natural gas and lowers the carbon footprint of its operations. Likewise, integrating solar infrastructure allows O&G companies to diversify their energy sources and reduce their dependence on a single source, making it a viable investment for the industry. O&G companies are increasingly 'diversifying their portfolios to reduce dependence on fossil fuels and manage risks linked to volatile oil prices and evolving regulations', says GlobalData's February 2025 report, Strategic Intelligence: Renewable Energy in Oil & Gas, citing solar investments made by the O&G industry's biggest players: Shell, BP and TotalEnergies. It adds that 'expanding into clean energy not only strengthens their resilience but also enhances their brand reputation among environmentally conscious consumers'. Solar repurposing O&G infrastructure When asked if solar power operators and developers are looking at moving the other way, into O&G production, to combine power sources, Puranik replies that 'traditional renewable power producers tend to stay within their domain for reputational concerns, and keeping investors happy'. However, the clean energy industry does benefit from the other way around by repurposing the O&G sector's infrastructure. Christian Fong, electricity expert at the Rocky Mountain Institute (RMI), an independent, non-partisan non-profit organization providing research and consulting on sustainability and energy innovations, says that in the 'power sector, fossil fuel infrastructure can be repurposed with clean energy solutions, including solar but also wind and battery storage as well'. RMI research finds that new clean energy in the form of solar, wind and storage can utilise the interconnection points of existing coal and gas plants to add up to 250GW of clean electricity that would reduce overall costs to the US grid by 2035. For context, says Fong, 'that is nearly the size of a quarter of the existing electric capacity on the US grid today'. 'Existing fossil plants can currently share their interconnection points, so that clean energy sources can provide electricity to the grid when those plants are not in use,' adds Fong, and when fossil plants retire 'they can transfer their interconnection rights to clean energy sources to make it quicker and less costly to connect to the grid'. A representative of the North Sea Transition Authority, responsible for maximising the economic recovery of oil from the UK North Sea, tells Offshore Technology that 'we do require operators to consider alternatives to decommissioning in the years prior to cessation of production'. 'Options may include repurposing infrastructure for energy transition projects – the best candidates for this are pipelines, for CO₂ and hydrogen transportation, reusing the infrastructure for new oil and gas projects, and even changes of ownership or operatorship.' "Walking towards the light: how solar and hydrocarbons can work together" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Mail
18-07-2025
- Business
- Daily Mail
BP sells US onshore wind business amid renewables retreat
BP has agreed to sell its US onshore wind business as the energy giant continues to refocus efforts on fossil fuels at the expense of renewables. The group, which ramped-up oil and gas production over the second quarter, told investors today its BP Wind Energy business, comprising 10 operating wind assets, would be bought by US firm LS Power for an undisclosed amount. The business' workforce is expected to transfer to the new owner on completion of the deal. BP has shelved its once industry-leading targets for reducing carbon emissions and slashed clean energy investment as it comes under pressure from investors to boost its share price. The group is seeking to cut cleaner energy investment by more than $5billion annually and offload assets worth a total of $20billion by 2027. The shake-up led to the departure of its green energy chief Giulia Chierchia last month. William Lin, bp EVP for gas & low carbon energy, said on Friday: 'We have been clear that while low carbon energy has a role to play in a simpler, more focused bp, we will continue to rationalize and optimize our portfolio to generate value. 'The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.' BP shares were up 1.5 per cent to 403.2p in early trading, bringing losses over the last 12 months to just under 11 per cent.
Zawya
16-07-2025
- Business
- Zawya
Angola Oil & Gas (AOG) 2025 Panel to Assess Onshore, Shallow Water Prospects in Angola
Angola – one of Africa's leading deepwater producers – is making a strong play for onshore exploration, leveraging its multi-year licensing strategy and flexible investment structures to entice new players to invest in onshore projects. On the back of a licensing round which concluded in 2024, the country is witnessing a surge of investment onshore, unlocking new opportunities for production growth as Angola strives to sustain output above one million barrels per day. A panel discussion during the Angola Oil&Gas (AOG) conference will examine the impact ongoing onshore and shallow water projects will have on Angola's production portfolio. Titled The Role of Onshore and Shallow Water Operations in Maintaining Production, the session will feature companies active in the onshore market and will delve into the strategic significance of onshore assets in maintaining output and maximizing resources in Angola. Speakers include Ricardo Van-Deste, CEO, Sonangol E&P Edson dos Santos, CEO, Etu Energias; George Toriola, Chief Strategy Officer, FIRST E&P Gianni Martins, General Manager, Alfort Petroleum; and Scott Gilbert, CEO, Corcel. The 2024/2025 period has seen robust growth across Angola's onshore market as companies invest in drilling and data acquisition in pursuit of new discoveries. In May 2025, Etu Energias signed a Risk Service Contract for Block CON 4 in the onshore Congo basin, granting the company operatorship with 67.5%. The agreement covers a 25-year operating license, with five years allocated for exploration and 20 years for production. The agreement follows two separate deals signed by Corcel in May 2025 for the accelerated development of Block KON 16 in the Kwanza basin. The agreements saw Corcel enhance its stake in the block to 71/5% through transactions signed with Intank Global DMCC and Sintana. Proceeds from the transactions will support de-risking and exploration activities planned for 2026. Corcel completed the data acquisition phase of KON 16 in 2024. Alfort Petroleum is also pursuing onshore exploration, following its qualification as an operator under the country's 2023 licensing round. The company operates Block KON 8 and is currently interpreting seismic data at the block. Meanwhile, while FIRST E&P is not yet active in Angola, other Nigerian players have recently expanded into the country, showcasing the potential for Nigerian players in Angola's onshore market. Notably, Nigeria's Walcot Group signed a production sharing contract in April 2025 for three onshore blocks in Angola. These include a 100% equity interest and operatorship of Block KON 1; a 100% equity interest and operatorship of Block CON 3; and a 10% non-operating interest in Block KON 13. Oando Energy Resources – another Nigerian firm – entered the Angolan market in January 2025, gaining operatorship of Block KON 13. The block has two exploration wells previously drilled, with oil and gas identified across various depths. Effimax and Sonangol represent partners on the block. Recent onshore investments are largely due to Angola's 2023 licensing round, which featured 12 blocks for exploration in the Lower Congo and Kwanza basins. Nine companies qualified as operators while five qualified as non-operators. Since the conclusion of the round, the country's upstream regulatory the National Oil, Gas&Biofuels Agency has since received proposals from three international companies for nine blocks that were not awarded during the 2023 tender. This underscores the level of interest in Angola's onshore acreage, laying a strong foundation for future discoveries. Distributed by APO Group on behalf of Energy Capital&Power.
Bloomberg
16-07-2025
- Business
- Bloomberg
China Earnings Pose Risks to Nascent Rebound in Onshore Stocks
China's corporate earnings growth likely slowed or was stagnant in the second quarter as the US ratcheted up trade tariffs, signaling that the latest results season may not offer much in terms of good news for stock investors. Profits at firms listed onshore probably grew at a slower pace than the 3.5% year-on-year growth seen in the first three months of 2025, according to China International Capital Corp., one of the country's biggest brokerages. Earnings estimates for CSI 300 Index members over the next 12 months are down more than 1% since March 31 after rising for two straight quarters, data compiled by Bloomberg show.
Bloomberg
15-07-2025
- Business
- Bloomberg
Bridgewater Grows More Bullish on China Stocks After 14% Return
Bridgewater Associates is more bullish on Chinese stocks after government stimulus in response to US tariffs helped boost its onshore China fund by 14% in the first half of the year. Bridgewater's onshore China unit said in its second-quarter investor letter that its view as of June 30 on Chinese equities is 'moderately increase' relative to the All Weather strategic allocations, citing policy support and relatively low valuations.
