Big Oil confronts possibility of terminal demand decline

Yahoo – AFP, Julien MIVIELLE,  July 5, 2020

Is this the sunset of the oil industry? (AFP Photo/Paul Ratje)

Although crude prices have rebounded from coronavirus crisis lows, oil execs and experts are starting to ask if the industry has crossed the Rubicon of peak demand.

The plunge in the price of crude oil during the first wave of coronavirus lockdowns -- futures prices briefly turned negative -- was due to the drop in global demand as planes were parked on tarmacs and cars in garages.

The International Energy Agency (IEA) forecast that average daily oil demand will drop by eight million barrels per day this year, a decline of around eight percent from last year.

While the agency expects an unprecedented rebound of 5.7 million barrels per day next year, it still forecasts overall demand will be lower than in 2019 owing to ongoing uncertainty in the airline sector.

Some are questioning whether demand will ever get back to 2019 levels.

"I don't think we know how this is going to play out. I certainly don't know," BP's new chief executive Bernard Looney said in May.

The COVID-19 pandemic was in full swing then with most planes grounded and white-collar workers giving up the commute to work from home.

"Could it be peak oil? Possibly. I would not write that off," Looney told the Financial Times.

Summited?

The concept of peak oil has long generated speculation.

Mostly, it has been focused on peak production, with experts forecasting that prices would reach astronomical levels as recoverable oil in the ground runs out.

Owing to the coronavirus, in recent months the concept of peak demand for oil 

has come into vogue (AFP Photo/SCOTT HEPPELL)

But in recent months, the concept of peak demand has come into vogue, with the coronavirus landing an uppercut into fuel demand for the transportation sector followed by a knock-out punch from the transition to cleaner fuels.

Michael Bradshaw, professor at Warwick Business School, said environmental groups are already lobbying to prevent the Paris agreements becoming another casualty of the pandemic, stressing the need for a Green New Deal for the recovery.

"If they are successful, demand for oil might never return to the peak we saw prior to COVID-19," he said in comments to journalists.

The transport sector may never fully recover, Bradshaw posited.

"After the pandemic, we might have a different attitude to international air travel or physically going into work," he said.

'Science fiction'

Other experts say we haven't reached the tipping point yet, and might not for a while.

"Many people have said, including some CEOs of some major companies, with the lifestyle changes now to teleworking and others we may well see oil demand has peaked, and oil demand will go down," IEA executive director Fatih Birol said recently.

"I don't agree with that. Teleconferencing alone will not help us to reach our energy and climate goals, they can only make a small dent," Firol added while unveiling a recent IEA report.

IEA executive director Fatih Biron does not believe that lifestyle changes such as

teleworking will cause demand for oil to decline substantially (AFP Photo/Ye Aung THU)

Moez Ajmi at consulting and auditing firm E&Y dismissed as "science fiction" the idea that a definitive drop in oil demand could suddenly emerge.

He expects a slow recovery in demand even if the coronavirus leaves the global economy weakened.

That weakness would also likely slow adoption of greener fuels.

"It will take time for fossil fuels, which today still account for some 80 percent of primary global consumption to face real competition" from rival energy sources, he said.

Meanwhile, the oil industry could face financing challenges.

Bronwen Tucker, an analyst at Oil Change International, says the industry is now under pressure from investors.

After "a pretty big wave of restrictions on coal and some restrictions on oil and gas, the risks to oil and gas investment right now feel a lot more salient," she said.

The industry is already writing down the value of assets to face up to the new market reality of lower demand and prices.

Royal Dutch Shell said this past week that it will take a $22 billion charge as it re-evaluates the value of its business in light of the coronavirus.

Last month, rival BP reduced the worth of its assets by $17.5 billion.

"This process has further to run, and we expect further large impairments to occur across the sector," said Angus Rodger of specialist energy consultancy Wood Mackenzie.

Related Articles:

A decade after Deepwater, BP faces new existential challenges

“Afraid of Love” + “What’s Wrong Today”, Laguna Hills, California, US(2), Dec 9, 2018 (Kryon Channelling by Lee Carroll)

• Stagnation of the current US Politics: Compassioned (US) leaders will arise in the future
• Shortage of fresh/drinking water: Invention to make salt from salt water magnetic and remove it with water desalination process in high volumes
• Pollution on Earth: 1 - Stop killing the environment! / 2 - The rise of temperature on Earth is “temporary” and is part of the "regular" Watercycle.
• Replacement of current fossil energy source: Use of magnetics based (small/big) engines to produces electricity / free energy
• Plastic pollution in the oceans: Invention to remove the plastics gradually from the oceans

20TH KRYON SUMMER LIGHT CONFERENCE, US (7), June 2-4, 2017 (Kryon Channelling by Lee Carroll) (Text version "The State of the Earth")

"....  A mini ice age is coming. "Kryon, isn't that doom for the planet?"  Many have seen the artist's rendering of major earth cities under ice and all of the other things that go very well with science fiction movies. That's simply a painting of someone's doom scenario, not reality based in the history of the cycle. If you want to know what a mini ice age is like, just flash back in history and study what took place in about 1650. That was a mini ice age. Due to the change in the Gulf Stream (the ocean), the river Thames froze in London. Dear ones, it was cold, but it did not doom the planet. That's a mini ice age.

That's what you're facing, and I'll say it again. If you live in a cold climate, heed this advice: It's going to get colder. Get off the grid! Within the next 15 years, find a way of producing electricity independently or in smaller groups. This can be done neighborhood-wide or separately in homes. You're going to need this, dear ones, because the grid as it exists right now all over the world is not prepared for this coming cold, and the grid will fail. That's not doom and gloom, that's just practical, commonly known information. Your electricity infrastructure is delicate, too delicate. Prepare for a cold spell that may last for a couple of decades. That's all it is. Technology is racing forward to allow this. Don't let your politics get in the way of your survival. ..."

"...  This is controversial. The planet can't just "change the water". It does it instead with a "reboot of life in the ocean" using the water cycle. Watch for evidence of this as it occurs, and then remember this channel. This weather cycle is to refresh the life in the ocean so that everyone on the planet will have needed food from the ocean. Gaia does this by itself, has done it before, and it does it for a reason - so it will not stagnate.

Dear ones, indeed, you have put compromising things into the air and the water, but it has not caused this cycle. We have said for a very long time, stop killing the environment! The reason? It's going to kill you, not Gaia. Gaia is spectacularly resilient and will survive anything you do. However, it is you who may not survive if you continue polluting. All this is starting to change with your awareness, and you're starting to see this and move with it. But Humans are not causing the current weather shift. This will be known eventually.

What is happening has happened before, and it's almost like a reboot for the oceans and it carries a lot of dichotomous events. You're going to see reports of a dying ocean, but at the same time you're going to see unusual reports of too many fish and other sea life in places that were supposed to have a decline. You're going to see the life cycle of the ocean itself start to change and reboot.

The chief player in this renewal is a place you would not expect: Antarctica. I want you to watch for magic in Antarctica. It has always been the core of the refreshing of microbes and other kinds of life in your oceans and it's especially active during these mini ice ages. The process will cause currents under the sea to be filled with new life, delivering it to both hemispheres almost like an under-sea conveyor belt. ..."

"Recalibration of Free Choice"– Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth, 4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical) 8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version)

“… 4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet; again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much…

Water

We've told you that one of the greatest natural resources of the planet, which is going to shift and change and be mysterious to you, is fresh water. It's going to be the next gold, dear ones. So, we have also given you some hints and examples and again we plead: Even before the potentials of running out of it, learn how to desalinate water in real time without heat. It's there, it's doable, and some already have it in the lab. This will create inexpensive fresh water for the planet. 

There is a change of attitude that is starting to occur. Slowly you're starting to see it and the only thing getting in the way of it are those companies with the big money who currently have the old system. That's starting to change as well. For the big money always wants to invest in what it knows is coming next, but it wants to create what is coming next within the framework of what it has "on the shelf." What is on the shelf is oil, coal, dams, and non-renewable resource usage. It hasn't changed much in the last 100 years, has it? Now you will see a change of free choice. You're going to see decisions made in the boardrooms that would have curled the toes of those two generations ago. Now "the worst thing they could do" might become "the best thing they could do." That, dear ones, is a change of free choice concept. When the thinkers of tomorrow see options that were never options before, that is a shift. That was number four.”

THE RELATIONSHIP TO GAIA - April 2010 (Kryon channelled by Lee Carroll)

New Mini Ice Age

"The weather you have today, and all the alarming attributes of it, is a scenario of what was scheduled to happen on Earth anyway. I review again that the weather changes you are seeing prophesied by myself, 21 years ago, are not a surprise. The changes are not caused by the pollutants you put in the air. You call it global warming and that's a nice phrase, and perhaps that will get you to put less pollutants in the air – a very good thing. But what you are seeing in the weather shift today was not caused by Humans putting things into the air. It would have happened anyway in about 300 years."

"We've called this process the water cycle, since it's all about water, not about air. The water is the predominant attribute of Gaia and of the weather cycle you're seeing. More predominant is the temperature of it. The cycle is ice to water and water to ice, and has been repeated on this planet over and over and over. It is not new. It is not exceptional. It is not frightening. But it's a cycle that modern humanity has not seen before, and it's a long cycle that is beyond the life span of a Human Being. Therefore, it tends to be overlooked or not seen at all !"

"In the days of the Lemurians, the water level of the Pacific Ocean was almost 400 feet lower, and that's only 50,000 years ago. [Kryon invites science to check this out – the water level at that time.] That was a water cycle working, and the reason it was lower was due to so much of the water being stored as ice. Today you're going through another water cycle that will eventually lead to cooling. The last one was in the 1400s."

"Science sees that at about 1650. As mentioned, they are so slow there is no remembrance that a Human has of them except in past writings and in the rings of the trees. The time span of the changes is so great that environmental record keeping does not exist in the form that it does today. But you can still look at the rings of the trees and at the striations of the rocks and can generally figure out that a few hundred years ago, you had a mini-ice age. Now you're going to have another one." 

French NGO files suit over Notre-Dame lead risks

Yahoo – AFP, Joseph Schmid, July 29, 2019

Hundreds of tonnes of lead in the roof and steeple at Notre-Dame cathedral in
Paris melted during the devasting fire on April 15 (AFP Photo/Kenzo TRIBOUILLARD)

Paris (AFP) - Pressure rose on French authorities Monday after an environmental group said it had filed a lawsuit accusing officials of failing to quickly contain the risks of lead poisoning after the fire that ravaged Notre-Dame cathedral in Paris last April.

Worries about exposure to the toxic metal emerged shortly after the disaster, which saw hundreds of tonnes of lead in the church roof and steeple melt during the blaze.

That dispersed lead particles into the air that later settled on streets and buildings in surrounding neighbourhoods, though officials had insisted there was no danger to residents.

But last Thursday, city officials indefinitely shut two schools near the gothic landmark after tests revealed high levels of lead pollution on a shared playground.

Cleanup work at Notre-Dame was also halted after the top government official in the Paris region acknowledged that anti-contamination measures were insufficient.

The moves came in the wake of a media report alleging that authorities had covered up tests showing high lead pollution levels in nearby schools.

"The relevent authorities, including the diocese... neglected to assist residents, visitors and workers, allowing them to be exposed to the toxic fallout," the Robin des Bois (Robin Hood) NGO said in the lawsuit filed on Friday.

It accuses health agencies, government officials and the city of Paris of "deliberately putting people in danger" by not immediately taking measures to limit exposure to the contamination.

Ingesting lead particles can cause neurological defects as well as nervous system and kidney problems, in particular in children, who are more likely to touch contaminated objects and to put their fingers in their mouths.

Workers cleaning Notre-Dame must wear protective suits 

and masks at the site to limit exposure to lead 

contamination (AFP Photo/Rafael Yaghobzadeh)

Worrying levels

Around 180 children had been attending a summer holiday club at the nursery and primary schools on the Rue Saint-Benoit, before they were shut.

French investigative website Mediapart reported this month that high levels of lead had been detected in schools and daycare centres surrounding Notre-Dame.

Mediapart said the authorities had waited until a month after the fire before conducting tests in the 10 schools and daycares within 500 metres of the monument on the Ile de la Cite island in central Paris.

One test result, at the private Sainte-Catherine primary school, showed 698 microgrammes of lead per square metre, 10 times higher than the 70-microgramme level considered potentially dangerous, it said.

Prefect Michel Cadot, the government's top official for the Paris region, told reporters last week that strict controls should have been in place in the heavily contaminated interior of the cathedral, as well as in surrounding areas.

Cadot said the square in front of the cathedral, usually bustling with thousands of tourists and pilgrims, would be cleaned with a high-powered system that had been tested on a small area close to church.

The cathedral as well as the square in front and other nearby areas have been off-limits since the fire.

Products believed to contain lead are placed in a bin in the grounds of the Paris 

cathedral during the clean up (AFP Photo/Rafael Yaghobzadeh)

'No visibility'

Parents and local officials have stepped up their criticism of how authorities have addressed the potential risks following the decision to close the schools, more than three months after the disaster.

Paris officials have vowed a "deep clean" of all schools near Notre-Dame, with walls and furniture to be wiped and playgrounds hosed down while most children are away during the summer holidays.

They have also rejected claims of withholding or playing down the test findings, saying the high lead levels detected at nearby schools have been posted on the municipal website.

But outside the two schools closed last Thursday, several parents seethed at the notice informing them of the closures, which made no mention of lead risks.

"She told me, 'We don't have any visibility'," Lamine, the father of two boys, told AFP after he spoke with a city agent posted outside the school.

Florence Berthout, mayor of the city's Fifth Arrondissement, where the schools are located, has urged Mayor Anne Hidalgo to protectively block access to all schools within 500 metres of the site.

Cadot added last week that "all precautions must be taken" at the cathedral itself to protect the workers clearing and shoring up the gutted 850-year-old building, which is still in danger of collapsing.

Dutch ports at centre of dirty diesel trade, Swiss report claims

DutchNews, September 19, 2016

A lorry near Accra. Photo: Carl De Keyzer – Magnum 

Swiss commodity trading firms are exploiting lax regulatory standards to sell toxic fuel to Africa and much of the dirty diesel is stored in Amsterdam and Rotterdam, according to a report by Swiss NGO Public Eye. 

Rotterdam oil firm Vitol and Dutch Swiss Trafigura, have major refining and storage interests in the Netherlands and in Antwerp where crude oil is mixed with other substances to keep prices low, Public Eye claims.

‘The 160-page report also shows that the trading companies not only ship dirty diesel and dirty gasoline — and in some areas even sell it at their own pumps — but also produce both fuels themselves,’ Public Eye said.

‘On land or at sea, they mix up a petrochemical cocktail from refinery products and other components known in the industry as “African Quality”. These toxic fuels are mainly mixed in the ARA-Zone (Amsterdam-Rotterdam-Antwerp) where Swiss trading firms have their own refineries and storage facilities,’ the report said. 

Banned substances

Many West African countries that export high grade crude oil to Europe receive toxic low quality fuel in return. 

Public Eye researchers drew fuel at local pumps in eight countries and found diesel samples contained up to 378 times more sulfur than is permitted in Europe. Other toxic substances, such as benzene and poly-cyclical aromatic hydrocarbons, were also found in concentrations that are banned in Europe. 

Unacceptable

‘It is unacceptable that we continue to supply developing countries with sub-standard fuels and vehicles, which result in major health impacts by increasing air pollution,’ said Eric Solheim, executive director of the UN’s environment programme.

‘In our globalized economy, there are good reasons to universallyapply clean fuel and vehicle standards in every country. Dumping old and dirty substances and technologies needs to stop now.’ 

According to Trouw, both Vitol and Trafigura say they support measures to reduce pollution and will reduce the level of sulfur permitted in fuel if the countries concerned change the regulations.

Related Article:

Ploumen: reported export of toxic diesel ‘scandalous’

VVD leader in Europe is paid RAI advisor, lobbies for car industry

DutchNews, September 30, 2015

Photo: Moritz Kosinsky via
Wikimedia Commons

Dutch MP Hans van Baalen, who leads the VVD delegation in Brussels, is a paid advisor to the car industry, according to news website F-site. 

Van Baalen, who has had a modest €4,000 role as advisor to the motoring organisation RAI, now earns €8,000 a year as a supervisory board member at Mercedes-Benz in the Netherlands, the website says. 

Last year Van Baalen called for ‘fewer rules’ for the car industry in an opinion piece in the Volkskrant. He also urged the Dutch government to ensure ‘taboo-free’ negotiations with the US over a trade treaty that will make it easier for car manufacturers to do business in the US and harmonise some rules. 

He wrote the article as VVD leader in the European parliament but did not mention his role with the RAI, which considers European lobbying to be a key task. 

Van Baalen is also on the Mercedes-Benz payroll as a member of the supervisory board. Mercedes-Benz is also active in influencing Brussels policy and opposes tougher environmental roles for car manufacturers. 

According to F-site, Van Baalen’s work conflicts with the strict integrity rules which the VVD applies to its politicians. These state: ‘you will not hold any other positions which could form a risk to you carrying out your job with integrity’. 

Van Baalen told the website he did not consider his independence was under threat. ‘I keep the VVD’s rules. I am not a spokesman for the car industry so there is no problem. And I do declare my earnings to the tax office.’ 

He said he did not consider his comments in the Volkskrant had broken the rules or highlighted a conflict of interest.

Related Articles:

VVD boss in Europe cuts car industry ties - New

Germany launches criminal probe against VW's ex-CEO

Volkswagen CEO apologizes for cheating on US auto emissions tests

Shell scraps oil exploration in Arctic off Alaska over costs

"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Carroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version)

“…5 - Integrity That May Surprise…

The Unthinkable… Politics, A Review

Humans will begin to search for integrity and fairness and it's going to happen in the places you never expect. I said this last week, so this is a review. There'll come a time when you will demand this of your politics - fairness and integrity. So when the candidates start calling each other names, you will turn your back on them and they won't get any votes. They're going to get the point real fast, don't you think? How about that?

Let me give you another potential. This country that I sit in right now [USA] will set the mold for that particular attribute. I have no clock. Watch for the youngsters to set this in motion, and they will, for they are the voters of tomorrow and they do not want the energy of today. To some of them, it's so abominable they won't even register to vote in this energy. You're going to see this soon. That was number five.. ..."

Singapore moves against Indonesian firms over haze

Yahoo – AFP, 26 Sep 2015

The Fullerton Hotel is blanketed in thick haze, in Singapore, on September 24,

2015 (AFP Photo/Roslan Rahman)

Singapore (AFP) - Singapore has launched legal action that could lead to massive fines against Indonesian companies blamed for farm and plantation fires spewing unhealthy levels of air pollution over the city-state.

Five Indonesian companies including multinational Asia Pulp and Paper (APP) have been served with legal notices, according to a Singapore government statement issued late Friday.

The move followed a bitter diplomatic spat over Indonesia's failure to stop a severe outbreak of smoky haze which has also affected Malaysia and persisted for years.

APP, part of Indonesia's Sinar Mas conglomerate, is one of the world's largest pulp and paper groups and publicly upholds "sustainability" and forest conservation as core principles. Its products include stationery and toilet paper.

APP was asked by Singapore's National Environment Agency to supply information on its subsidiaries operating in Singapore and Indonesia, as well as measures taken by its suppliers in Indonesia to put out fires in their concessions.

The group, which has paper mills in Indonesia and China, did not immediately reply when asked by AFP for comment.

Under a 2014 law called the Transboundary Haze Pollution Act, Singapore can impose a fine of Sg$100,000 ($70,000) for each day that a local or foreign company contributes to unhealthy levels of haze pollution in Singapore, subject to a maximum total of Sg$2.0 million.

Singapore is located near Indonesia's vast Sumatra island, where fires have traditionally been set off by farmers and plantations to clear land for cultivation.

Four other Indonesian companies -- Rimba Hutani Mas, Sebangun Bumi Andalas Wood Industries, Bumi Sriwijaya Sentosa and Wachyuni Mandira -- have been told to take measures to extinguish fires on their land, refrain from starting new ones, and submit action plans to prevent future fires.

Sinar Mas is also involved in palm oil production, an industry widely blamed for forest fires in Indonesia.

In its statement issued Friday, the Singapore government said it was "examining how to apply more economic pressure against errant companies," including a review of its own procurement policies.

A soldier inspects a peatland forest on fire in Kampar district, Riau province, 
on Indonesia's Sumatra island, on August 7, 2015 (AFP Photo/Alfachrozie)

Singapore's Minister for the Environment and Water Resources Vivian Balakrishnan said the haze problem has lasted "for far too long".

"This is not a natural disaster. Haze is a man-made problem that should not be tolerated. It has caused major impact on the health, society and economy of our region," he said in the statement.

Singapore declared emergency shutdowns of elementary and high schools on Friday after the air pollutant index hit "hazardous" levels.

It eased to "moderate" levels on Saturday but a shift in wind direction can quickly change the situation.

The current haze outbreak is the worst since mid-2013. The recurring crisis grips Southeast Asia nearly every year during the dry season.

Singapore officials have reacted with outrage to Indonesian Vice-President Jusuf Kalla's comments that Indonesia's neighbours should be grateful for good air quality most of the year, and that Jakarta need not apologise for the crisis.

Indonesia has previously said that Singapore-based companies were among those responsible for the blazes.

About 3,000 troops and police have been sent to Sumatra to fight the fires, with Indonesian authorities saying last week that it would take a month to bring them under control.