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    Energy in Latam

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    andres
    Colombia has an opportunity to become an energy hub by leveraging its oil and gas resources as well as significant potential for renewable energy like hydro, solar, and wind. It has excess clean, reliable electricity from hydropower that could be used to produce hydrogen. Colombia could also establish carbon capture and storage hubs and a carbon market to support decarbonization of hard to abate industries. Developing its energy resources and capabilities could allow Colombia to export energy to other countries and support economic growth at home.

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    Energy in Latam

    Uploaded by

    andres
    29 views59 pages
    Colombia has an opportunity to become an energy hub by leveraging its oil and gas resources as well as significant potential for renewable energy like hydro, solar, and wind. It has excess clean, reliable electricity from hydropower that could be used to produce hydrogen. Colombia could also establish carbon capture and storage hubs and a carbon market to support decarbonization of hard to abate industries. Developing its energy resources and capabilities could allow Colombia to export energy to other countries and support economic growth at home.

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    OIL, GAS AND RENEWABLES IN LATAM

    Original Title

    ENERGY IN LATAM

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    Colombia has an opportunity to become an energy hub by leveraging its oil and gas resources as well as significant potential for renewable energy like hydro, solar, and wind. It has excess clean, reliable electricity from hydropower that could be used to produce hydrogen. Colombia could also establish carbon capture and storage hubs and a carbon market to support decarbonization of hard to abate industries. Developing its energy resources and capabilities could allow Colombia to export energy to other countries and support economic growth at home.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views59 pages

    Energy in Latam

    Uploaded by

    andres
    Colombia has an opportunity to become an energy hub by leveraging its oil and gas resources as well as significant potential for renewable energy like hydro, solar, and wind. It has excess clean, reliable electricity from hydropower that could be used to produce hydrogen. Colombia could also establish carbon capture and storage hubs and a carbon market to support decarbonization of hard to abate industries. Developing its energy resources and capabilities could allow Colombia to export energy to other countries and support economic growth at home.

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    of 59

    GLOBAL ENERGY CRISIS,

    AN OPPORTUNITY FOR COLOMBIA

    O&G Upstream Advisory


    Andres Mesa
    Classic Economy : Q = 𝑓(K.L)

    Energy Oxygen
    Energy Return on Energy Invested (EROI)
    EORI

    Energy
    Energy is not part of the Economy

    Energy IS the Economy

    Energy Surplus IS Development


    Needs

    To Heat
    To Transport
    To Power
    (since 1890)
    Final Energy Use

    800 – 1500 °C
    84%
    of Energy
    Comes from
    fossil fuels
    Why are we in an Energy Crisis??

    Energy Waste
    Global CO2 Emissions
    Supply constrains

    Avoid
    90%
    of energy
    sources
    O&G Climate Enemy

    From WoodMac 2020


    O&G: Not such a good business at all
    Upstream O&G Capex

    Oil company capital spending has been dropping since the


    mid-2010s, making it hard to ramp up new production
    quickly as economy rebounds From Rystad 2020
    Capital Discipline and focus on shareholders returns and buybacks

    EBITDA
    The market has pressed oil
    and gas producers to cut
    capex, and shift their cash to
    financial goals like paying
    down debt and boosting
    Capex dividends, as well as de-
    carbonization

    From S&P Global 2022


    Consolidation to improve efficiency

    From WoodMac 2021


    Changes in the upstream landscape
    O&G energy supply ecosystem changed

    • Risky business in the long-term => Short-term cycle


    • Less money => Only good projects get approval
    • Consolidation and IOC’s retreat => Less competition
    • ESG target (Scopes 1&2 / 3) => Cleaner projects are prefered
    Electricity

    Demand
    Germany Electricity Output from Onshore Wind

    380 MW generated out of 56.000 MW installed capacity (3rd world largest!!)

    Solar and Wind are NOT there when needed!!!


    Supply constrains
    Energy Demand growth
    Future….

    Energy
    Waste
    Surplus
    Energy Demand Vs Human Development Index
    World Energy Demand Forecast

    Coal&Gas

    From Woodmac 2021


    Oil Demand
    Gas Demand

    2/3 for Electricity Gen


    1/3 industry
    • Coal 10GT CO2 out of 33 Gt per year
    Electricity from Coal • Electricity generated 9.000 TWh
    • 12 Countries account for 92%

    Coal Power Plants


    Steel
    Cement
    Low GHG
    Emissions

    Is there
    when needed
    Low Cost • Stored
    • Transported
    ourworldindata.org
    Colombia: Energy Context
    (5.300 UK 1.200 EJ / year
    3.500 Spain)

    Industries and Cooking (No home heating required)

    320 TWh UK
    240 TWh Spain 75 TWh/y Already clean and reliable

    Light Vehicles and Lorries


    No trains.
    Gas / Coal CCS
    H2 Oil +
    Electricity Electricity
    Biofuels
    Synfuels
    H2

    Gas / Coal (CCS) Solar & Wind


    Nuclear (SMR) Geothermal
    Hydro
    Can we offer energy to the world?
    ✓ Conventional fuels for transport (Oil), Feedstock (Oil Gas and Coal)?

    ✓ CCS solutions for hard to abate sectors that use Gas and Coal?

    ✓ Excess of clean, cheap and reliable electricity?

    ✓ Hydrogen for heating and transport (shipping and aviation)?


    Oil Production

    7.6 mmbo/d 6.8 mmbo/d


    6.5 mmbo/d
    3.6 mmbo/d

    2.9 mmbo/d

    Not including Middle East, Russia, North America From Yearbook Enerdata
    Stability
    O&G offer

    Short-Cycle projects
    • Mature basins
    • Infrastructure already built
    • Different type of plays
    ESG options
    • Scopes 1 & 2 emissions projects
    • Scope 3 emissions offset projects
    (reforestation)

    Oil Gas Oil Pipes Gas piipes


    O&G

    • Advanced seismic reprocessing and QI


    • Asses deeper / shallower reservoirs
    • Re-evaluate old concepts
    • Next door basin or basin edges
    • Free up data!! More eyes = more ideas
    • Fewer Competitors… Why bid rounds?
    • Ultradeep Water (Namibia 10 billion @3km)

    Free Areas Taken Areas Oil & Gas Fields


    Electricity
    Electricity consumption per year 75 TWh

    Coal Power Plants

    Gas Power Plants

    From EIA 2020 UK 320 TWh / Spain 240 TWh


    Offshore Wind
    Offshore wind roadmap launched in 2022.
    Development potential of 50 GW (Current UK Inst Cap 10GW)

    Wind Speed monthly avg

    Wind Speed
    map

    Taken from Windeurope.org and Offshore Wind Road map Report


    A Comparison of the UK Offshore Wind Resource from the Marine Data Exchange
    Solar Photovoltaic Power Potential
    Installed Cap 1 GW

    Installed Cap 15 GW

    Solargis.com
    Hydrogen Potential
    Colombia launched the H2 roadmap in 2022
    • Decarbonise domestic heavy transport
    • Have 1-3GW of RE to produce H2 in 2030
    • Produce 50 Kt of blue H2 by 2030

    Maritime shipping routes


    Legal Framework

    • Energy Transition Law: Tax incentives for RE investments


    • Offshore wind Roadmap was launched in 2021
    • Three successful auctions (2019 – 2021) for Solar and onshore wind
    projects. From 0.2 GW in 2018, to 4 GW operating in 2024. (18 GW
    country’s total)
    • There are 6 structured projects for offshore wind ready to set up an
    auction
    Colombia: Geothermal

    Classic Geothermal project:


    • High risk - Low Return
    Technology using heat fluid exchanger
    • Low Risk – Low Return

    Legal framework for Geothermal was


    launched in 2022. O&G companies can
    now apply to officially use the
    geothermal resource within their
    acreage

    Vargas et al 2020
    CCS

    Offer a legal framework & carbon market


    for
    • Heavy industries that produce CO2
    • Gas power generation
    • Blue H2
    Carbon Markets

    UK first CCS licensing


    round 2022
    North Sea Transition
    Authority
    Colombia: Green Investment
    Gas / Coal CCS
    H2 Oil +
    Electricity Electricity
    Biofuels
    Synfuels
    H2

    Gas / Coal (CCS) Solar & Wind


    Nuclear (SMR) Geothermal
    Hydro
    GDP: 331 Bn usd 314 Bn usd
    Pop: 90 mill 50 mill
    Electricity Consmp: 160 TWh /year 75 TWh/year
    Electricity Gen : 95% Gas 68% Hydro 20% Gas
    Min Wage: 144 USD/month 240 USD/month
    Oil Production: 685 kbopd 750 kbopd
    Oil Consumption: 877 kbopd 400 kbopd
    Gas Production 1742 BFC /year 365 BCF/year
    Gas Consumption: 1.642 BFC/year 375 BCF/year
    Offshore wind pot: 166 GW 100 GW
    Egypt : O&G

    Biogenic Gas
    Miocene Turbidites
    12 years / 10 Expl Wells
    No Commercial Disc
    2013 Bid Round
    Deep – Ultradeep Water
    Biogenic Gas
    New concept
    Miocene-Creta Lmst Build-up
    Zohr 30TCF 2017
    RE: Gulf of Suez Economic Zone
    • 40 bn USD worth in contracts to
    produce H2 (blue and green) and
    green ammonia

    • CCS in depleted gas fields for:


    • Biofuels production
    • Production of biodegradable
    plastic
    • Polyethylene production from
    waste
    • Legal & Tax Framework
    • Infrastructure
    • Energy
    Can we offer an energy hub??

    ✓ Oil and Gas for short-cycle projects plus great offshore gas potential

    ✓ Provide more clean, reliable and cheap electricity (Hydro + Gas + RE)

    ✓ Use excess of renewable electricity to produce H2

    ✓ CCS hubs and a carbon market for hard to abate industries

    ✓ Offer off-grid electricity solutions for industries (Solar, Geothermal)

    ✓ Carbon bonds in the Amazon for emissions offsets


    Energy Surplus = Growth = Opportunities
    Thank you!

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