Meeting the world’s growing need for energy will require more than $48 trillion in investment over the period to 2035, according to a special report on investment released today by the International Energy Agency (IEA) as part of the World Energy Outlook series. Today’s annual investment in energy supply of $1.6 trillion needs to rise steadily over the coming decades towards $2 trillion. Annual spending on energy efficiency, measured against a 2012 baseline, needs to rise from $130 billion today to more than $550 billion by 2035.
Further evidence of the growing storage boom in Africa this week with the announcement in Zambia that construction work on a 15 million litre bulk fuel storage depot in the city of Solwezi will be completed in 2014. This is the latest development in a government led drive to construct oil storage facilities in all provincial centres including Lusaka and Mongu with a reported K200 million (€21.79 million) given for this development. Once these sites are completed further oil storage at Kasama and Chipata will be constructed. The construction of these facilities is being carried out by East African firm Dalbit International Limited. With these developments, Zambia’s bulk petroleum storage capacity has increased to 100 million litres.
The expansion of the giant Petro Rabigh petrochemicals complex in Saudi Arabia owned by Saudi Aramco and Sumitomo Chemical is now expected to cost SAR32 billion ($8.5 billion), higher than the previous estimates of around $7 billion the joint-venture said on Wednesday and reported by Reuters following a stock exchange filling this week.
The 3,000-acre oil refinery, located in Rabigh, 165 kilometers north of Jeddah on the Red Sea coast utilizes 400,000 barrels per day of crude oil and 1.2 million tons per year of ethane as primary feedstock to produce a variety of refined petroleum products and petrochemical products.
Fresh from this month’s Tank World Congress and Expo 2014 we pick out ten key trends found in the Congress delivered by our expert speakers including Sharjah Free Zones Authority, Port of Amsterdam, Sohar Port & Freezone, Port of Salalah, Gulf Petrochem, ENOC, the Energy Institute, Galana and many more. The event proved hugely popular and was attended by over 1,600 attendees across the Tank Storage industry. Tank World Congress and Expo will return in 2015 and free tickets are now available. See below to register.
1. The industry is undergoing a shift from crude oil to refined products. Cleaner and lighter fuels and alternate fuels are in greater demand than even before. This is partly related to growing environmental legislation regarding governing fuels and changes in customer demands.
A major challenge for those involved within storage is how to develop plans and strategies that not only enhance economic performance but also demonstrate high standards of both environmental stewardship and responsible social performance. Commonly known as sustainability, this is a growing focus for the industry, with oil and gas sustainability spending set to reach $6.5bn in 2017 according to a recent report from Verdantix, a significant increase from $5.4 billion in 2012. Today Tank World looks at this subject and gains insight from Dr. Rashid Alleem Director General Department of Seaports & Customs and Sharjah Free Zones Authority, and a leading expert in this field, about the growing role of sustainability within the oil and gas storage industry.
To start I asked Dr Alleem how he defines sustainability: “Sustainability means survival. Sustainability means success. Without sustainability, global economic crisis like the historic 2008 economic meltdown will continue to take us back and affect our economic progress. Sustainable development in the present highly competitive global markets calls for a vision and long-term planning. In our quest for sustainability we fail to make use of the best of available resources and in the right manner. Sustainability does not only ensures our survival but it also ensures survival of our generations to be.
With just under a month to go until the Tank World Congress and Expo, Tank World News gains an exclusive sneak preview of the event which is set to bring two days of expert insight, practical case studies, in-depth discussion, technology launches and networking to Dubai on April 14th & 15th 2014.
With over 85 speakers delivering keynotes, case studies and workshops across the two days its impossible to cover all the highlights but we are honoured to have an introduction from H.E Dr. Matar Al Neyadi, Undersecretary of Ministry of Energy of United Arab Emirates who are also officially endorsing the event. Once H.E Dr. Matar Al Neyadi has opened the Executive Congress, a leading figure within the industry and region as a whole, Dr. Rashid Alleem, Director General Department of Seaports & Customs and Sharjah Free Zones Authority delivers a powerful presentation asking the key question – Sustainability: Fact or Fiction? Next up in the opening session sees high-level insights from industry giants Saudi Aramco and leading European facilities Ports of Zeeland and Amsterdam.
“For a long while the technology within fluid storage and movement did not move as rapidly as the technology in other industries. But this has changed in recent years. Hesitancy to develop and deploy new technologies has eroded and we are now seeing the benefits of its deployment.”
Today Tank World Editor, Luke Upton, speaks to Mark Korzec, Director of Oil and Gas Sales for Colfax Corporation, a veteran of over 43 years in the industry and an expert speaker at Tank World Expo. Working with Oil Companies, Engineering firms, and Design Institutes around the globe Mark has gained a unique perspective on our industry and has a particular focus on sharing his experience of tank farm and terminal operations. Mark travels regularly around the world and as such a broad view of the dynamic changes that the global fluid movement is currently undergoing.
Luke Upton (LU): Thanks very much for the time today, you travel a lot in your job, quite simply, what are you seeing out there?
Mark Korzec (MK): No problem. It’s a really interesting time at the moment, and what it really comes down to is a dramatic change in the movement of oil. Traditionally it would flow from east and in particular the Middle East, to the West but now we are seeing an increasing movement from west to east. There are a couple of factors causing this change including the USA exporting its own oil, a rising demand in Asia and the accessing of African oil. In the last 5 years alone there have been over 70 discoveries in Sub-Saharan African and the decline in demand from Europe.