Energy & Resources Talking Points 03-02-16

energy talking points

Origin Energy discusses five year deal to supply LNG to China’s ENN Energy

Origin Energy is one of Australia’s top exploration and production firm’s (supplying approx. 11% of Australia’s Gas) is currently in talks to supply China’s ENN Energy with 500,000 tons of LNG from 2018/2019. This deal is said to be based on the underutilization of capacity of LNG production within Queensland’s plants at Gladstone. This deal could increase production by 5-10% capacity which in turn would increase Origin Energy’s LNG output by 1.15 million – 2.3 million tonnes in exports.  Click here for the full article.

US Continues to Lead the World in Wind Energy Production, China falls second

Following recent statistics from the Global Wind Energy Council (GWEC) and the US Energy Information Administration, the US has been shown to be the leader in the ongoing battle for the top wind energy producer. In terms of capacity China is the leader on installed wind turbines but the US comes on top as it claims to generate more electricity. Even though China has almost double the capacity of turbines the US is thought to lead due to its engineering feats and efficiency of its wind farms making them the most productive in the world.  The US predicts that wind power will supply up to 20% of US electricity by 2030.  Click here for the full article.

China is to cut 1.8 m jobs in coal and steel sectors

With 12 million employees said to work in the coal and steel industry China fears over unemployment as it expects to lay off 1.8 million jobs in the both of these industries. Due to the slow growth in the market production has decreased which has left both industries with an over capacity of workers. In order to minimize the impact of reducing 15% of the entire workforce the central government plans to allocate 100bn yuan to relocate the workforce that is laid off. Click here for the full article.

The China ‘transition’ is faster than thought: BHP

CEO Andrew Mackenzie of BHP Billiton speaks out on China’s slowing demand for raw material and future focus on the service industry. As commodity prices remain volatile and short term demand reduces; BHP’s outlook is to focus more efficiency and new ways of working.  In the long term BHP expects demand to increase in China alongside the increase in population, production and trade. Click here to read the full article.