Stefano Pujatti

That’s a significant development for Baker Hughes in the LNG (Liquefied Natural Gas) sector. Booking approximately $200 million of LNG equipment orders in the first quarter of the year indicates a strong demand for their products and services in the LNG market. Additionally, the company’s expectation of global LNG Final Investment Decisions (FIDs) reaching about 100 million tonnes per annum (mtpa) over the next three years highlights the continued growth and investment in the LNG industry. As a key player in the energy services sector, Baker Hughes’ success in securing LNG equipment orders and anticipating future LNG FIDs underscores their expertise and market position in supporting the LNG value chain. This news reflects the ongoing expansion and investment in LNG infrastructure globally, driven by the increasing demand for cleaner energy sources and the transition to natural gas. Overall, Baker Hughes’ strong performance in the LNG sector and the projected growth in global LNG FIDs demonstrate the company’s commitment to providing innovative solutions and services to support the evolving needs of the LNG industry.

Irina Slav’s article provides an insightful analysis of the future of oil demand, contrasting predictions from authoritative bodies like the International Energy Agency (IEA) with real-world data and market trends. Here are some key points from the article: IEA vs. Real-World Data • IEA’s Forecast: The IEA predicts that oil demand growth will peak within the next six years, driven by the adoption of electric vehicles (EVs) and clean energy technologies. • Real-World Data: The actual pace of the EV revolution appears slower than anticipated. Sales results from major automakers such as Tesla and GM are mixed, and a McKinsey survey suggests that a significant number of EV drivers are contemplating a switch back to internal combustion engine vehicles. This challenges the notion of an imminent EV takeover. Regional Differences in Oil Demand • China: EVs have made some impact on oil demand, but the overall demand for oil in China continues to grow, albeit at a slower rate. The establishment of a state-controlled entity for local oil and gas resource development indicates sustained demand for hydrocarbons. • Europe and North America: The influence of EVs on oil demand in these regions remains minimal. While there have been small declines in oil demand, these are not substantial enough to indicate a major shift. • Norway: Even in Norway, a country with high EV adoption rates, oil demand has not declined. • Europe’s Natural Gas: The increase in natural gas imports in Europe highlights the ongoing reliance on hydrocarbons. Continued Relevance of Hydrocarbons • Energy Transition: The article argues that the anticipated destruction of oil demand due to the energy transition is not materializing as expected. • Developing Countries: The ongoing industrialization in developing countries and the need for reliable energy sources ensure the continued importance of hydrocarbons. • Essential Energy Sources: Despite predictions of a slowdown, oil, gas, and coal are expected to remain essential energy sources for the foreseeable future. Summary Slav’s article underscores the complexity of the global energy landscape. While technological advancements and policy shifts aim to reduce reliance on fossil fuels, real-world data and trends suggest that hydrocarbons will continue to play a crucial role in meeting global energy needs. The slower-than-expected adoption of EVs and the sustained demand for oil in key regions like China and Europe highlight the challenges in transitioning away from traditional energy sources. This nuanced perspective provides a more grounded understanding of the future of oil demand, emphasizing the need for a balanced approach to energy policy and planning.

“Eni and Snam Launch Phase 1 of Italy’s First Carbon Capture and Storage Project in Ravenna” Insights: 1. Strategic Partnership: • Joint Venture: The project is a collaboration between Eni, a major Italian oil company, and Snam, a gas transport operator. This equal partnership combines Eni’s expertise in energy production with Snam’s capabilities in gas transportation and storage. 2. Project Overview: • Phase 1 Initiation: The Ravenna CCS (Carbon Capture and Storage) project has officially started its first phase, marking a significant milestone as the first CCS initiative in Italy. • Carbon Sequestration: The project aims to capture carbon dioxide emissions from Eni’s Casalborsetti gas treatment plant near Ravenna, transport the CO2 offshore, and sequester it in the depleted Porto Corsini Mare Ovest gas field. 3. Environmental Impact: • Emission Reduction: Eni estimates a 96% reduction in flue gas emissions from the Casalborsetti plant, highlighting the project’s substantial environmental benefits. • Initial Capacity: During Phase 1, the project is projected to store approximately 25,000 tonnes of CO2 per annum. 4. Future Expansion: • Long-term Goals: The capacity of the Ravenna CCS project is planned to expand significantly, targeting up to 4 million tonnes per annum (tpa) of CO2 injection capacity by 2030. • Potential Storage: The partners estimate that depleted gas fields in the Adriatic Sea could store up to 16 million tpa of CO2 if fully developed. 5. Technological and Operational Excellence: • Use of Existing Infrastructure: The project utilizes converted gas pipelines for transporting CO2, showcasing a cost-effective and efficient use of existing infrastructure. • Expertise Leveraging: Snam’s long-standing expertise in the transport and storage of molecules is critical to the project’s success, aligning with its strategy to become a “multi-molecule operator” to support the energy transition. 6. Policy and Regulatory Support: • EU Backing: The Ravenna CCS project is supported by the European Union under its projects of common interests mandate, reflecting its alignment with broader European climate goals. • European Targets: Europe aims to develop CCS capacity exceeding 50 million tpa of CO2 by 2030, and the Ravenna project is a significant contribution towards this target. 7. Broader Implications: • Energy Transition: The project is a key part of Eni and Snam’s strategies to support the energy transition, particularly in hard-to-abate industries that cannot easily electrify their operations. • Global Involvement: Beyond Italy, Eni is also involved in the HyNet CCS cluster project in the UK as a CO2 transport and storage operator, indicating its broader commitment to carbon management solutions.