Showing posts with label Energy Transition. Show all posts
Showing posts with label Energy Transition. Show all posts

Friday, March 29, 2024

All missives from CERAWeek 2024

With CERAWeek 2024, organised by S&P Global, drawing to a close last week, the Oilholic marked a fascinating and engaging week for the energy markets with a number of pieces for Forbes as well as daily blog posts. 

Here are the Forbes pieces:

  • Aramco Investing ‘Big Time’ In Renewables But CEO Slams ‘Fantasy’ Of Phasing Out Oil And Gas, March 18, 2024.
  • Oil Is Nearing 5-Month Highs And Its Not Just About Supply Fears, March 18, 2024.
  • What Will Oil Demand Look Like In 10 Years And When Might A ‘Peak’ Occur?, March 20, 2024.
  • Why Bill Gates Reckons Houston May Become The ‘Silicon Valley Of Energy’, March 24, 2024.
  • Global LNG Market: Sliding Prices In 2024, Rising Opportunities By 2030?, March 27, 2024.
  • Energy Transition: Challenge Of Financing And Investing In A $6 Trillion Megatrend, March 28, 2024.
All blog entries for each CERAWeek day may be found here

And that's a wrap. More musings to follow soon. Keep reading, keep it here, keep it 'crude'! 

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Forbes click here.
To follow The Oilholic on Motley Fool click here.

© Gaurav Sharma 2024. 

Friday, March 15, 2024

Chat on software-led sustainability with AVEVA's CEO

Earlier this month, The Oilholic had the pleasure of visiting industrial software firm AVEVA's London office for a long overdue meeting with its Chief Executive Officer Caspar Herzberg.

Theme(s) of the riveting discussion, which extended way beyond the time allocated, touched on the proliferation of AI, IIoT, digital twin tech, big data and predictive analytics in the energy industry. 

All have been exponentially deployed in recent years by major energy operators conscious of their carbon footprint. Many have done so in partnership with AVEVA and the pace of adoption is only going to accelerate. 

The top 20 oil and gas companies by market capitalisation have all pledged to achieve net zero by 2050, as well as eliminate routine gas flaring by 2030, and are incrementally turning to tech solutions that AVEVA and its competitors are happy to provide. 

Herzberg told The Oilholic: "The energy majors have rapidly come around to the viewpoint that optimisation enabled by software serves the purpose(s) of improving their throughput and operating margins, reducing downtime as well as lowering their carbon footprint. 

"I also think most energy majors are now subject to significant societal pressure to lower their carbon footprint. This pressure is only going to increase. And every summer it will be ever more pressing, especially in liberal democracies where citizens are free to express their opinion and see climate change as a key concern."

It is here that the true potential of "connected solutions" may indeed be realized by the energy sector (and beyond) driven by continually improving corporate efficiencies and returns in tandem. "I would say that connected software makes things that are already possible, quicker, and frees people up to deal with more pressing issues in the value chain, rather than routine, but time-consuming tasks."

"Ultimately, AI, IIoT, digital twins, big data and analytics are all purposeful tools but at their inner core is data centricity – essentially, talking hold of data and getting value out of it."

The possibilities are infinite for the energy firms both large and small, Herzberg said. AI driven carbon capture, physics-based simulation, predictive asset optimization, streamlining processes for a green hydrogen future, making the power grid more resilient and reducing refinery or plant downtime are just some of the use cases, the AVEVA boss noted, while personally and very kindly showing yours truly a simulation on an absolutely ginormous screen. 

Away from exclusive snippets for this blog, do read The Oilholic's interview with Herzberg for Forbes here. It offers a much wider perspective on AVEVA and Herzberg's strategy for the business in the energy sector and beyond, and the company's very vocal stance on improving process efficiencies in the wider industrial world's march to a low-to-zero carbon future. Well, that's all for the moment folks, more musings to follow soon. Keep reading, keep it here, keep it 'crude'! 

To follow The Oilholic on Twitter click here.
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© Gaurav Sharma 2024. Photo: Gaurav Sharma with Caspar Herzberg, Chief Executive Officer of AVEVA© AVEVA, March 2024. 

Thursday, March 14, 2024

Onsite with Coolbrook and its 'electric factory' pilot

Last week the Oilholic headed out for a rather unique site visit to the Brightlands Chemelot Campus - an innovation hub in Geleen, The Netherlands - where cleantech firm Coolbrook is running a pilot project premised on the idea of an 'electric factory.' 

Yes indeed, you read that one correctly dear readers - an 'electric factory' concept that could in the fullness of time lead us to re-imagine the industrial complex and substantially lower the carbon footprint of heavy industries and petrochemical plants. 

To make sense of it all, the company's CEO Joonas Rauramo kindly agreed to explain the process and take this blogger around. The idea is to substitute heat sources / furnaces in use at heavy industries currently running on fossil fuels with an electrical power source. 

For that Rauramo and Coolbrook have come up with the company's patented RotoDynamic technology - which uses a rotating device powered by electricity to generate heat without burning anything. "So basically air or for that matter a large range of gaseous substances / inert gasses go in where a high-speed 0.8 MW electric motor accelerates them with mounted rotating blades. Subsequent deceleration leads to the generation of a shock wave that converts kinetic energy to thermal energy," Rauramo explained. 

The heat generation is in milliseconds and is not transferred from outside through a surface, rather volumertically inside the gas. And we are talking temperatures of up to 1700 C. Now the Oilholic knows the questions on many of your lips - does it really work and did this blogger get to look under the hood of the machine? The firm answer to both questions is yes. 

While photography was not permitted in certain areas of the project, The Oilholic was given full access to view and examine both the project set-up as well as its key components, and interview a range of personnel working onsite. It's doubtful a company would open its doors to your truly and provide this level of access if it had to something hide, or was still faking it till it made it. 

Furthermore, the test pilot has already achieved temperatures of around 1000 C. Project research and development is constantly independently verified (and monitored both onsite and remotely), several universities including Cambridge, Oxford and Ghent are involved, while Swiss industrial giant ABB is the technical partner on the project. Finally, the commercial launch appears to be on the horizon early in 2025. 

Now just re-imagine old versus the new industrial energy chain as illustrated by Coolbrook below (click to enlarge):

Makes you think about the immense possibilities it offers for lowering the global industrial complex's carbon footprint if the electricity that's powering the machine comes from renewable sources as well. 

Coolbrook's RotoDynamic has two modes - one a heating only machine and the other a reactor aimed at the petrochemical industry wherein the technology can be deployed not just for heating but cracking hydrocarbons as well. The kit can be fitted on both greenfield as well as brownfield sites. 

Coolbrook has identified over 40 uses cases but the most obvious ones would be cement, iron, steel, glass, chemicals and petrochemicals. The company's modeling points to a reduction of 2 billion tonnes in CO2 emissions annually if traditional heat sources are substituted by its technology. 

Of course, the transition will not be easy and there are other low to zero carbon techniques being explored. Rauramo was quick to assert that what Coolbrook is attempting is "50% more efficient" than hydrogen predicated alternatives and is "cheaper too." 

Total budget for Coolbrook's pilot project aimed at creating a "new industrial era" is in the region of $13.1 million. Should the commercial launch proceed as planned in 2025, that would be the result of 14 years of hard work since the company was founded in Finland in 2011.

Scaling up is the name of the game. In that respect, there has been considerable interest in Coolbrook's technology from the likes of ArcelorMittal, Shell, Ineos, Sabic, JSW, Linde, Braskem, Cemex and its longstanding partner ABB. The industrial heating market itself is estimated to be worth more that $1.1 trillion. 

Coolbrook doesn't yet have direct competition for a product like its own, as The Oilholic noted in his feature on the company for a recent Forbes article that's available here.

As for those in the industry looking at RotoDynamic from an outside-in perspective, The Oilholic observed quite a few tangible benefits. 

Process efficiency is an obvious one and comes in many forms ranging from lower energy bills and a carbon footprint to potentially higher plant throughput. The compact size of Coolbrook's offering is also an attractive one. So, by this blogger's reckoning, for say a petrochemical plant, we're talking roughly one-tenth the space needed for the company's reactor kit versus a traditional reactor. 

Capex and opex considerations matter hugely and the product is yet to hit the commercial world. But should the RotoDynamic technology meet its full potential, capex and opex will likely be competitive near-term, and could be way lower over the medium-term. 

Once Coolbrook scales up as a company post-launch, the initial deployment costs for the industry would also likely be calibrated lower and long-term ROI much higher. All-in-all a very interesting company (and its operating sphere) to watch out for. With those final thoughts, it's time take your leave. More musings to follow later this month. Keep reading, keep it here, keep it 'crude'! 

To follow The Oilholic on Twitter click here.
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© Gaurav Sharma 2024. Photos: Gaurav Sharma with Joonas Rauramo, CEO of Coolbrook at the company's RotoDynamic Technology Test Pilot at Brightlands Chemelot Campus, Geleen, The Netherlands. Illustration: Coolbrook's demonstration of the 'old' versus 'new' energy chain for the global industrial complex© Jenni Schumacher / Coolbrook, March 2024. 

Saturday, January 20, 2024

Getting going in 2024 after a break!

Greetings folks, the Oilholic is getting going meaningfully in 2024 after last year was marked by sporadic commentary and long pauses in blogging. 

Sincere apologies for that as yours truly was busy juggling his departure from a full-time job at a bank and taking time out for a paternity break for much of the last quarter. All went well in the end and bubb is here safe, sound and healthy! 

Call it a reboot, relaunch or a 'crude' restart - this blog is now going to be bigger and better with your support carrying regular market commentary, details of industry engagements, missives and interviews on energy economics, geopolitics, financials and more. So watch this space! 

And of course, the Oilholic will also continue his broadcast media commentary, energy circuit speaking engagements, and writing for Forbes and many other publications and websites as before! So here's to 2024. Keep reading, keep it here, keep it 'crude'!

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Forbes click here.
To follow The Oilholic on Motley Fool click here.
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© Gaurav Sharma 2024. Photo © Pixabay

Wednesday, October 25, 2023

Connected energy solutions at AVEVA World 2023

The Oilholic is delighted to be back in San Francisco for AVEVA World 2023 - the annual client fixture for technology consulting and industrial software company AVEVA. It's also the company's first major event since being taken over by Schneider Electric in January 2023.

A content packed start to the conference, being held at San Francisco's Moscone Center, has seen wide ranging discussions on connected solutions in the industrial software space, cloud-based applications and how the energy industry can turn volatility and challenges over meeting sustainability targets into opportunities. Afterall, the sector is pursuing a deep transformation to become more sustainable as well as ensure that the world's needs are met. Technology provides many, if not all, of the answers.

Kicking off proceedings, Caspar Herzberg, CEO of AVEVA, talked of exploring use cases for a sustainable industrial ecosystem - one that's connected and utilizes the power of big data and a seemingly unlimited world of data analytics. And of course, placing the company's platform agnostic AVEVA Connect product suite at the heart of this connected industrial ecosystem. 

"Those that master this art [of a connected, sustainable industrial ecosystem] will outperform other systems," Herzberg said in his keynote. The AVEVA boss' pitch is a clear and simple one to energy, heavy industrials, mining, metals, companies, and indeed other sectors - tie in process efficiencies, improved throughout and sustainability, take learnings from data using AI solutions, and the results would become evident.

Those results include energy efficiency pathways that are 20% better and would invariably help in lowering carbon emissions. One enabling solution is digital twin technology. Read more about it and this blogger's conversation with AVEVA's Head of Research and Innovation Simon Bennett on Forbes.

There's more to come from AVEVA World 2023 - an event Herzberg himself described on Tuesday as one of the largest gathering of industrial software professionals and specialists in the world. That appears to be around 2,500 attendees and counting.

Away from the event, here is the Oilholic's latest piece for The Motley Fool on BP's share price direction, and how significant the appointment of its next CEO could be. That's all for now folks. Keep reading, keep it here, keep it 'crude'!

To follow The Oilholic on Twitter click here.
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To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: Caspar Herzberg, CEO of AVEVA, speaks at AVEVA World 2023 at the Moscone Center, San Francisco, US on October 24, 2023. © Gaurav Sharma 2023. 

Wednesday, October 11, 2023

Media missives from ADIPEC 2023

With ADIPEC 2023 drawing to a close last week, the Oilholic capped a fascinating and engaging week with a rounding off piece for Forbes on the criticality of scaling up technology - and, of course, backing it up with petrodollars and willpower, if a meaningful energy transition is to be achieved. To this end, this blogger had great conversations with ABB, AiQ, AspenTech, AVEVA and Avaada Group. (More here)

Yours truly also hit the airwaves to discuss the various soundbites coming out of the conference and various developments in Abu Dhabi, all in the midst of a very volatile crude oil market riddled with demand concerns, supply-side tightening and geopolitical complications. The final broadcasting call before departing was with Asharq Bloomberg News, with this blogger's week out in Abu Dhabi peppered with plenty of other missives via the keyboard for Forbes, the Motley Fool, and of course via this blog. 

All blog entries for each ADIPEC day may be found here

Some commentary on Shell's share price direction via the Motley Fool may be found here. And here are selected Forbes copies in chronological order based on soundbites and insight from ADIPEC 2023. 

  • Emirati COP28 President Calls For A "Just, Orderly, Equitable And Responsible" Energy Transition, October 2, 2023.
  • India "Will Manage" And Won't Panic If Oil Rises Above $100, Says Energy Minister, October 3, 2023.
  • Abu Dhabi To Unveil World’s Fourth Largest Solar Farm "Very Soon", October 4, 2023.
  • Oil Futures Slump Further On Uncertain Global Demand Outlook, October 5, 2023.
  • Abu Dhabi In First Wind Farm Launch As 2GW Solar Project Nears Completion, October 8, 2023.
  • 4 Middle East Geopolitical Scenarios That May Hike Oil Market Risk Premiums, October 9, 2023.
  • Scaling Technology And Willpower Critical For 'Fast-Tracking' Global Energy Transition, October 10, 2023.
And that's a wrap. Keep reading, keep it here, keep it 'crude'!

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Forbes click here.
To follow The Oilholic on Rigzone click here.
To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: Gaurav Sharma on Asharq Bloomberg TV on October 4, 2023 © Asharq Bloomberg 2023.

Thursday, October 05, 2023

ADIPEC Day IV: Reflections at sunset in Abu Dhabi

The final and fourth day of ADIPEC 2023 has reached its conclusion as the sun sets here in Abu Dhabi with the show on a likely track to beat all its previous records (and quite possibly way more than the figure of 160,000 attendees it marketed). 

And that makes sense, as there is likely to be immense interest and intrigue when you bring together the various energy strands of oil, natural gas and renewables; and discuss everything from power markets to the future of shipping, whilst at the same time deliberate the obvious need to decarbonise. 

We came together on day one with the rallying cry of "Decarbonising. Faster. Together", we conclude proceedings perhaps with a call for evolution, understanding and collaboration. 

Evolution, as we explore new horizons offered by the spirit of human ingenuity in coming up with solutions for a low carbon economy. Understanding, that oil and gas will have to play a role for a good few decades yet, if not more, to ensure that energy poverty doesn't become the by-product of a slapdash rush to decarbonise. As for collaboration, need the Oilholic spell it out? Because if we don't work together, collaborate, partner and prepare for the road ahead, we will fail. 

Away from these pensive thoughts, this blogger also took time out on the final day to visit ADIPEC's wonderful Marine & Logistics Zone. It's here that the crew of ADNOC's support shipping fleet took one around a number of vessels currently being run on biodiesel, made from used and recycled cooking oil collected from restaurants around Abu Dhabi! Thank you to all the crew who spared their valuable time for the trip, and it was an experience the Oilholic will treasure. 

With the time of departure here, this blogger would like to say that it was great to be back at ADIPEC after a three-year hiatus caused by the briefest of forays into the world of banking. It was great seeing old friends and making new ones in the buzz of this amazing event once again, and a privilege to be a part of it. Finally, and most importantly, my sincere thanks to the amazing team at dmg events who made it all happen and for their most wonderful hospitality. 

Well that's a wrap from Abu Dhabi folks. It'll be time for the big flying bus home to London Heathrow. Keep reading, keep it here, keep it 'crude'!

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Forbes click here.
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To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: Sunset over Abu Dhabi NEC, the venue of ADIPEC 2023 © Gaurav Sharma 2023.

Tuesday, October 03, 2023

ADIPEC Day II: On techies, ministers, sessions & more

Day II of ADIPEC in Abu Dhabi, UAE began on an even busier note and one group that's making quite a lot of the noise is the techies. Microsoft, Google, Amazon Web Services - you name it - are all here! Spokespersons and sales people of many are telling yours truly that "big data" is the new oil, and well ...err .... doubly so for oil, gas and energy companies clubbed together. 

Much of the chatter they are offering is about utilising cloud computing, and, of course, pitching innovations in new areas such as machine learning, artificial intelligence (AI), Internet of Things (IoT) and serverless computing for energy operations. Not to be left behind, hardware sellers are offering the energy sector custom-designed processors, chips, workstations, platforms and advanced robots.

Parking the noise from the techies aside, the day also saw yet more ministers and officials offer soundbites and rub shoulders with energy CEOs, movers and shakers. Before the final Day IV is out on October 5, around 40 odd ministers would have spoken here. Among them India's Energy Minister Hardeep Singh Puri who said on Tuesday that his country can cope with a $100 oil price should it happen but the development was likely to be "recessionary" for the rest of the world. (More here on Forbes)

Among other developments, ADIPEC delegates were also told that Abu Dhabi would soon be taking its 2GW capacity solar farm located in its Al Dhafra region online. When it does go online, the farm might well be the fourth largest in the world (More here on Forbes)

Meanwhile, Ashraf Al Ghazzawi, Executive Vice President of Strategy and Corporate Development at Aramco opined that the energy transition is far from straightforward, particularly for a nation like Saudi Arabia. 

"First, you have to appreciate the global energy system's scale and magnitude. You're talking about a global energy system of about 270 million barrels of oil equivalent. This system energises a $100 trillion global economy. If you fast forward to 2050, the global economy will double to $200 trillion with, give or take, two billion additional energy consumers coming.

"So any discussion, any plan on energy transition, will have to acknowledge the complexity and the magnitude but also understand that our assumptions and premises have to be underpinned with realistic expectations, realistic solutions and realistic paths towards the energy transition."

And finally, the Oilholic participated in another two sessions on the day. The first of these - held under ADIPEC's Decarbonisation Strategy Conference Stream - was titled "Carbon tax vs. subsidies: what is the best regulatory method to accelerate emissions reduction?" As the title suggests, a lively discussion on the two policy measures that can be used to accelerate emissions reduction followed, and of course free market solutions too. 

Panellists included (left to right), The Oilholic, Dr Carole Nakhle, CEO of Crystol Energy,  Arne Peder Blix, CEO of ICA Finance, Emmanuel Givanakis, CEO of ADGM Financial Services Regulatory Authority, Georges Tijbosch, CEO and Board Member of MiQ and Thomas McMahon, Co-CEO & Co-Founder of ACX.

Later on a busy afternoon, yours truly also hosted a second session under the Digitalisation in Energy stream titled "EV charging: Driving new energy business models powered by data insights.

It involved a discussion of how energy retailers are leveraging data insights to generate new EV business models and drive the energy transition. The all star cast of this pivotal discussion included Fiona Howarth, CEO of Octopus Electric Vehicles, Amr Adel, Regional VP for Asia at Shell Recharge, Alaa El Huni, Chief Business Officer of CAFU and Dr. Fan Zhu, Chief Technology Officer, Bayanat. 

All in all, a hectic but rewarding Day II of ADIPEC. And that's a wrap. More to follow soon. Keep reading, keep it 'crude'!

To follow The Oilholic on Twitter click here.
To follow The Oilholic on Forbes click here.
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To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: (1) ADIPEC 2023's theme of  "Decarbonisation. Faster. Together" on marquee at Abu Dhabi NEC, UAE (2) ADIPEC's Decarbonisation Strategy Conference Stream panel on "Carbon tax vs. subsidies: what is the best regulatory method to accelerate emissions reduction?© Gaurav Sharma 2023.

Monday, October 02, 2023

ADIPEC Day I: "Decarbonising. Faster. Together"

The Oilholic is delighted to be back at ADIPEC 2023 after a gap of four years, and one virtual ADIPEC (2020) during the Covid pandemic. The tagline this year is rather unique "Decarbonising. Faster. Together" - and one that yours truly, and one suspects 160,000-plus delegates who'd be visiting the event are unlikely to miss. 

It's on banners, flags, posters, flyers, magazines, websites and broadcasts - in short if you are in town, you are unlikely to miss it. 

But what does it all mean? For Sultan Ahmed Al Jaber - ADNOC's boss and the country's Minister of Energy and Advanced Technology, and one might add the President-designate of COP28 - it all about an energy transition that's "just, orderly, equitable and responsible." More on that here via this blogger's latest Forbes post. But kudos from a branding perspective as "Decarbonising. Faster. Together" is just as catchy in 2023, as "Oil and Gas 4.0" was back in 2019. 

Something's of course never change. China has yet again sent a humongous delegation to town with a number of exhibitors, major energy outfits, businesspersons, subject matter experts and dignitaries whose presence you simply cannot miss. 

There are also another 29 country pavilions to visit. Around 1,600 speakers are in town, present company included, and 10 parallel conference streams, two of which the Oilholic will have four sessions in (More details here). The "Make It In The Emirates" theme - encouraging the UAE's domestic industry and manufacturing - also looms large and proud around ADIPEC corridors. 

This blogger also hosted the first of his panel sessions at ADIPEC 2023, titled: "The twin transition: policy alignment between the green and digital agendas," i.e. the simultaneous shift towards a more sustainable and digital economy. 

This engaging discussion included panellists Andrei Covatariu, Co-Chair, Task Force on “Digitalization in Energy” and Vice-Chair of the Group of Experts on Energy Efficiency, United Nations Economic Commission for Europe; Allyson Anderson Book, Chief Sustainability Officer, Baker Hughes and Leonid Zhukov, VP of Data Science, BCG-X and Director of BCG Global AI Institute. 

That's all for the moment folks as we're just getting started in Abu Dhabi. More to follow soon! Keep reading, keep it 'crude'!

To follow The Oilholic on Twitter click here.
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To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: (1) Entrance to ADIPEC 2023, Abu Dhabi, UAE, (2) Pavilions of companies from China. © Gaurav Sharma 2023.

Tuesday, July 04, 2023

Back on a road (err...flight path) well travelled!

It's nearly time for BA706 - a very familiar British Airways flight number as far as the Oilholic's travels go. For after a gap of over three years in earnest, the Oilholic is back on a 'crude' road (err...flight path) well travelled and heading to the 8th International OPEC Seminar in Vienna, Austria. The core subject for deliberations is "Towards a sustainable & inclusive energy transition" and yours truly is looking forward to a fascinating few days of international dialogues. 

One must say, waiting for a flight to the Austrian capital once again for an OPEC gathering after gap years spent in the "in-house" corporate world brings a renewed sense of excitement and anticipation, eagerness to reconnect with old friends in energy analysis community and make new friends. 

Prevalent energy market conditions are miles apart from where we were in a pre-Covid world in March 2020 (scene of the last crime....err...visit). And who can forget the negative WTI oil price that followed in April 2020. Furthermore, energy transition is high on the agenda in a changed (hopefully pragmatic) world. So cheers to it all. 

To warm up, and prior to embarking on this journey, yours truly has fired a few missives via Forbes. Based on the Oilholic's reading of the current market situation and macroeconomic climate, oil prices remain rangebound and stuck in $70s for Brent (More here). 

And here are yours truly's thoughts on Shell's dividend hike and return to 'crude' basics. If sustainable investment trusts, learning more about Scope 1, 2 & 3 emissions and OPEC's June meeting are topics of interest, you can find your way there via the Oilholic's Forbes profile (details below). But that's all for now, and for the moment folks. Am BACK! So keep reading, keep it 'crude'!

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© Gaurav Sharma 2023. Photo © Gaurav Sharma, July 4, 2023.