Saturday, February 13, 2021

Total warns of 10mn b/d oil supply shortfall by 2025

Underinvestment, Opec+ production restraints and cracks in the US shale model risk a 10mn b/d global oil supply shortfall between now and 2025, Total said today.

The speed and extent of oil demand recovery from falls arising from the Covid-19 pandemic depend largely on vaccines and the implementation of economic recovery packages around the world, Total's president of strategy and innovation Helle Kristoffersen said.

"What is clear, on the other hand, is that there is a risk of a supply crunch in the mid-term," Kristoffersen said. "Given the natural declines in existing oilfields… the message is simple: we need new oil projects and that is true even if you take a very cautious view on short-term demand recovery and on future demand levels."

Total will continue to invest in oil and gas, which it says is key to funding its transformation into a broader energy company — to be rebranded TotalEnergies — that will have sharper focus on low-carbon products.

Total expects its hydrocarbons production to remain stable from 2020 at around 2.84mn b/d of oil equivalent (boe/d) this year, as a recovery in Libyan production and a relaxation of quotas in Opec+ countries offset declines elsewhere, and then sees its production rising to 3.3mn-3.4mn boe/d by 2025, with the majority of this growth from 2023.

It expects first oil from the Lake Albert oil development in Uganda and from the Mero 3 project offshore Brazil from 2024, and is targeting first oil from Block 58 offshore Suriname in 2025. It has few projects coming on stream in the next two years, chief executive Patrick Pouyanne said today.

Total has an exploration budget of $800mn in 2021, which is "lower than before" and focuses on "low-cost development projects," Pouyanne said.

https://www.argusmedia.com/en/news/2185346-total-warns-of-10mn-bd-oil-supply-shortfall-by-2025

How much silver is used in a Tesla?

 The following article appeared here originally https://katchum.wordpress.com/2020/09/23/how-much-silver-is-used-in-a-tesla/

Keith Neumeyer reported that a tesla uses at least 1 kg of silver.

The latest Tesla delivery numbers in Q3 2020 were a record 139300. That’s almost 600000 per year.

If Tesla builds 1 million vehicles per year, that would translate into 1 million kg or 1000 tonnes of silver demand per year. Yearly silver demand is 20000 tonnes today. So Tesla would gobble up 5% of silver demand. The EV industry is growing rapidly, so this number could go up exponential. Tesla says it will 50 fold its production to 20 million vehicles per year by 2030.