Trillion Energy International Inc. C.TCF

TCF WEEKLY & YEAR END DISPATCH

[Humanist]

In this week's Trillion Dispatch

 

• Record output slump for US gas

 

• Turkey's natural gas find

 

• ExxonMobil sues the EU

 
 
 
 

The Big Idea...
Turkey's Natural Gas Find In Black Sea Now comes To 710 bcm -Erdogan

 

ISTANBUL, Dec 26 (Reuters) - The total volume of natural gas Turkey has discovered in the Black Sea now amounts to 710 billion cubic metres (bcm) after a new field was located and a previous find was revised higher, President Tayyip Erdogan said on Monday.
Speaking after a cabinet meeting, Erdogan said Turkey had discovered a new reserve of 58 bcm in the Caycuma-1 field, in addition to revising up an estimated volume in the Sakarya field to 652 bcm from the previous 540 bcm.

"As a result of the analysis of the data, we have revised the previously declared 540 billion cubic-metre reserve to 652 billion cubic metres," Erdogan said, adding that Turkey had drilled 13 wells in the Sakarya field.

"With our new discovery at Caycuma-1, our gas reserve in the Black Sea has risen by 170 billion cubic metres to 710 billion cubic metres," he said.
Erdogan said last month that Turkey is on track for the Sakarya gas field to go online in 2023. He said on Monday that the newly discovered Caycuma-1 field would be connected to the Sakarya field and from there to the national grid.

Turkey, which has little oil and gas, is highly dependent on imports from Russia, Azerbaijan and Iran, as well as LNG imports from Qatar, the United States, Nigeria and Algeria for its gas.
Turkey has also been exploring for hydrocarbon resources in the Mediterranean, where its operations in disputed waters have stoked tensions with Greece and Cyprus.
By: Ali Kucukgocmen and Ezgi Erkoyun, Reuters
@2022 Reuters

 

*This gas find is just north of Trillion's SASB gas field

 
 

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Latest in...
Russia Says Europe Will Struggle To Replace Its Oil Products

 

Europe will find it difficult to replace Russian crude oil and product supply once the full effect of the EU embargoes on Russian petroleum products is felt, according to Russian Deputy Prime Minister Alexander Novak.

“Europe used to be a key market for the sale of our oil products. Let us wait and see which decisions they will make in the long run. So far, we don’t know what may substitute for our fuel,” Novak said in an interview with local news agency TASS published on Sunday.  
Some EU member states could request to be exempted from the embargo on seaborne imports of Russian oil products, the top Russian energy official said.
“Probably, they will resort to exemptions, like it was with oil, when the restrictions did not apply to pipeline supplies, refineries in Bulgaria, the Czech Republic, and Slovakia. Even Germany and Poland, who declared their refusal from Russian oil, have applied for it for 2023,” TASS quoted Novak as saying.  

The EU embargo on imports of Russian crude oil by sea came into force on December 5, while the embargo on seaborne imports of Russian oil products will take effect on February 5.
Although the EU embargo and the EU-G7 price cap on Russian crude oil at $60 per barrel didn’t immediately roil the oil market – although traders were concerned about a possible demand hit from slowing economies – uncertainty is growing over how the bans on Russian imports will affect supply balances over the next few months.
As the EU embargo on imports of Russian diesel enters into force, “The competition for non-Russian diesel barrels will be fierce, with EU countries having to bid cargoes from the US, Middle East and India away from their traditional buyers,” the IEA said in its monthly report in November.
By: Tsvetana Paraskova for Oilprice.com
© OilPrice.com

 
 
 
 

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Record Output Slump for Top US Gas Basin Worsened Power Chaos

 

(Bloomberg) -- A record production decline in the largest US natural gas basin came just as extreme cold sent demand booming for the commodity used to heat homes and fuel power plants, exacerbating the winter storm crisis that left millions in the dark. 
Supplies from the Appalachian Basin shrank by as much as 9 billion cubic feet, or 27%, from usual levels, according to BloombergNEF estimates based on pipeline flows. That’s a record decline in data going back to 2013. Well freeze-offs sent production plunging by more than 20% in Pennsylvania, while output more than halved in Ohio, constraining supplies into the Northeast and the Tennessee Valley. 

The arctic blast brought the biggest US power grids to the brink of catastrophe, exposing the flaws of a system that’s facing limited natural gas supplies and the unpredictability of solar and wind power. Consumers are bound to see higher utility bills after the event, which sent wholesale power prices surging. High winds downed power lines and transformers malfunctioned in the extreme cold, adding further pressure to electricity supplies.  
Gas drillers including EQT Corp., the country’s top natural gas producer, Southwestern Energy Co. and Antero Resources Corp. own massive producing assets in Appalachia, which accounted for more than half of US production losses during the peak of the winter storm.
That means suppliers were relying heavily on inventories of gas held in salt caverns and depleted aquifers to keep up with demand. 

Issues were exacerbated by mechanical problems at pipeline infrastructure.
Grid operators, meanwhile, did a poor job of forecasting electric demand before the storm, exposing another layer of vulnerabilities at a time when the power network is both aging and undergoing a massive transition. 
By: Gerson Freitas Jr. and Josh Saul, Bloomberg News
©2022 Bloomberg L.P.
 

 
 
 
 

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ExxonMobil Sues EU Over Investment-Destroying Windfall Profit Tax

 

Hitting back at Brussels’ imposition of a windfall tax on oil companies, Exxon Mobil Corp is suing the European Union on the grounds that the tax will hinder investment and end up being “counter-productive”, according to media reports.

According to the Financial Times, the first to report the story, Exxon filed the lawsuit at the European General Court in Luxembourg City on Wednesday through its German and Dutch subsidiaries. The lawsuit challenges the European Union Council’s legal authority to impose a windfall tax using emergency powers to force member state approval of the move. 
The European Union windfall tax gives the bloc the authority to place a 33% levy on energy company profits for 2022. 

Reuters cited Exxon spokesperson Casey Norton as saying on Wednesday that Exxon would be accounting for the windfall tax in its future multi-billion-euro investments, warning that the tax was outside the authority of Brussels and that it would end up being a destructive force for investor confidence.  

“Whether we invest here primarily depends on how attractive and globally competitive Europe will be,” Reuters cited Norton as saying. 

On December 8, Reuters cited Exxon’s chief financial officer, Kathryn Mikells, as telling analysts that the EU’s windfall profit taxes on oil companies could cost $2 billion between now and the end of next year. That compares to the $3 billion Exxon has invested over the past ten years in European refinery projects.
By: Charles Kennedy for Oilprice.com 
© OilPrice.com

 
 
 
 

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Austrian Defense Minister Warns Europeans Are Unprepared For Coming Days-Long Blackouts

 

The Austrian defense minister has warned that Europeans could face blackouts that go on for days, leaving one–third of citizens unable to “supply themselves.”
Klaudia Tanner made the comments during an interview with German news outlet Die Welt.

“The question is not whether it (the blackout) will come, but when it will come,” said Tanner, blaming the war in Ukraine.

“For Putin, hacking attacks on Western power supplies are a tool of hybrid warfare. We must not pretend that this is just a theory. We must be prepared for blackouts in Austria and Europe,” she added.
Austrian armed forces are set to establish 100 self-sufficient barracks by 2025 that are capable of sustaining themselves for a minimum of two weeks if energy supplies are seriously disrupted.
Tanner spoke to how unprepared Europeans were for crippling elongated blackouts by warning, “one-third of citizens would not be able to supply themselves on the fourth day of a blackout at the latest.”
While Vladimir Putin remains the convenient scapegoat, others have pointed to Europe’s overdependence on ‘green energy’ and its shutting down of traditional coal-fired and nuclear plants as one of the primary reasons for increasing the risk of blackouts.
In Germany for example, the country only has three remaining operational nuclear power plants, with MPs even having to vote to extend their life span into 2023 after previous plans to shut them down.
By: Tyler Durden for Zerohedge.com
©2009-2022 ZEROHEDGE.COM/ABC MEDIA, LTD

 
 
 
 

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WTI Oil Jumps Above $80 As China Scraps Covid Restrictions

 

The U.S. benchmark oil price rose on Monday evening and early on Tuesday to above $80 per barrel after China announced on Monday a major easing of its Covid travel quarantine rules and after Winter Storm Elliott knocked offline around 1.5 million bpd of refinery capacity in the U.S. Gulf Coast.

As of early morning trade in Europe on Tuesday, WTI Crude was up by 0.80% at $80.19. The international benchmark, Brent Crude, was trading up by 0.85% on the day, at $84.63 per barrel. 
Oil prices received a major boost late on Monday and early Tuesday after China said that as of January 8 inbound travelers to China would no longer be subject to mandatory travel quarantine. China is seeing a surge in Covid cases after abandoning other parts of its so-called “zero Covid” policy that was in place for more than two and a half years. 

Despite the soaring number of infections and disruption to industries and supply chains, oil demand could be set for a major boost in the world’s top crude oil importer after the initial Covid waves, analysts say. Oil prices have reflected some of that optimism in recent days, although trade is very thin due to the holiday period.
On Tuesday, oil was also supported by refinery closures in the United States due to the severe Winter Storm Elliott. The huge storm swept through Canada and the United States just ahead of the Christmas holiday weekend, bringing freezing temperatures, snow, and icy conditions. Power supply was interrupted in some areas, thousands of flights were canceled, and Christmas travel plans were disrupted.

By: Tsvetana Paraskova for Oilprice.com
© OilPrice.com

 
 
 
 

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Trillion Energy News

 
 

WEEKLY DRILLING REPORT DECEMBER 28, 2022

 
 
 
 

WELL: Guluc-2

• Spudded December 10, 2022. Days since spud: 20
• Progress: 1795 metres 
• Measured Depth: 2803 metres

Week Summary:

1. Drill out plugs
2. Drill 12 ¼” x 13” hole from 1008 metres to 2803 metres – ROP 18 to 26 metres/hour

Further Acti