ExxonMobil and Rosneft Partner for Arctic Offshore Oil
With the alliance between BP and OAO Rosneft officially terminated, Russia’s largest oil producer has been seeking a new partner to explore the Arctic Ocean’s vast oil and gas reserves. ExxonMobil Corp. has answered the call, and the two companies have teamed up to explore not only Arctic reserves, but also the Black Sea, Gulf of Mexico and onshore plays in Texas.
ExxonMobil and Rosneft plan to invest $3.2 billion into initial offshore exploration in the Arctic Ocean and Black Sea. The deal between the two companies could result in as much as $500 billion of investments in infrastructure, exploration and production.
“Access to new resources is the life blood of oil companies,” says Fadel Gheit, an analyst at Oppenheimer & Co. in New York. “Russia is one of the largest resources that’s still available. It’s like Exxon is now dating the girlfriend BP had a few months ago.”
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Furthermore, this alliance may mark Rosneft as the first major Russian oil company to develop U.S. deposits. It will test Rosneft’s capabilities in both deepwater and shale oil operations, with which the company is relatively inexperienced.
ExxonMobil CEO Rex Tillerson says, “I take it as a strong statement of Russian intentions to create competitive conditions to attract investments.”
ExxonMobil and Rosneft’s preliminary exploration project is a $1 billion venture in Russia’s Black Sea signed on January 27 earlier this year.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.