PETRO

JOURNAL

DECEMBER 2018
EDITION

JOURNALISM SPE ITS SC

2018/2019
Monthly Recap

Flash News

Company Profile

Flash Course

Competition
Info

Heroes on
Competition

INDEX
SPECTRE 1.0 : SPE Stock
Exchange Trainee
This event held by Soft Skill Division. These
course gave you a brief introduction and
knowledge on investment and financial
management through stock exchange as well
as their importance
WA-101, Marine Engineering
December 7th, 2018
Oil Rig Design Competition
Workshop
“Oil Rig Design Competition Workshop" from
Competition Development Division with Abhista
Daniswara as our speaker. The event itself
takes place at ITS Library 1st floor.
ITS Library 1st floor
December 1st, 2018
MONTHLY RECAP
 FLASH NEWS

Oil edges up as investors latch

on to OPEC cuts, supply outlook
PUBLISHED MON, JAN 21 2019 •
5:28 AM EST | UPDATED MON,
JAN 21 2019 • 3:53 PM EST

Oil prices edged up on Monday, reversing earlier losses, as investors shrugged off data
that confirmed China’s economic growth is cooling and instead latched on to positive
supply-side drivers for the market.

Brent crude oil futures were up 12 cents at $62.83 a barrel by 3:23 p.m. EST versus
Friday’s settlement price, while U.S. crude futures were up 19 cents to $53.99 a barrel.

The U.S. financial markets are closed on Monday for the Martin Luther King Jr. Day
holiday.

Global equities fell after data pointed to a slowdown in Chinese economic growth in 2018
to a 28-year low. The numbers fed concern that the outlook for global growth may be
darkening, particularly given U.S.-China trade tensions.

“It remains quite likely that the trade spat with the U.S. has played a part in this latest
slowdown,” CMC Markets chief market analyst Michael Hewson said. “But investors
should also factor in that it simply isnt possible for the Chinese economy to grow at the
pace that it has over the last 10 years, in the next 10 years.”
 FLASH NEWS

Stock markets are still up so far this month, which has given oil investors more
confidence to bet aggressively on a rise in crude prices.

Analysts said a more robust backdrop for financial markets and the prospect of slower
crude production growth were the major drivers behind the rally in oil.

“The stock market performance is one of the reasons why oil keeps marching higher.
There also seems to be a general belief that the agreed cut in OPEC+ production will be
sufficient to balance the market,” PVM Oil Associates said in a note.

While there is concern that a slowing global economy could impact oil demand,
production cuts implemented by the Organization of the Petroleum Exporting Countries
are likely to support crude oil prices, analysts said.

You can’t justify oil prices at these levels. We’re looking basically at an average of
almost $70 a barrel for Brent in 2019,” ING commodities strategist Warren Patterson
said. “I am getting increasingly concerned about how tight the market will be going into
2020.”

A separate report from China’s National Bureau of Statistics showed crude oil refinery
throughput in 2018 climbed to a record 12.1 million barrels per day, up 6.8 percent from
the previous year.

In the United States, energy companies cut the number of rigs drilling for oil by 21 last
week, the biggest decline in three years, taking the count down to 852, the lowest since
May 2018, energy services firm Baker Hughes said on Friday.

Source: https://www.cnbc.com/2019/01/21/oil-markets-china-economy-opec-in-focus.html
 COMPANY PROFILE

The Royal Dutch Shell plc, incorporated

on February 5, 2002, explores for crude
oil and natural gas around the world,
both in conventional fields and from
sources, such as tight rock, shale and
coal formations. The Company works to
develop new crude oil and natural gas
supplies from various fields. The
Company's segments include Integrated
Gas, Upstream, Downstream and
Corporate. The Integrated Gas segment
is engaged in the liquefaction and
transportation of gas and the conversion
of natural gas to liquids to provide fuels
and other products, as well as projects
with an integrated activity, ranging
from producing to commercializing gas.
The Upstream segment includes the
operations of Upstream, which is PHOTO: WIKIMEDIA
engaged in the exploration for and
extraction of crude oil, natural gas and
natural gas liquids, and the marketing
and transportation of oil and gas, and
Oil Sands, which is engaged in the
extraction of bitumen from mined oil
sands and conversion into synthetic
crude oil. The Downstream segment is
engaged in oil products and chemicals
manufacturing, and marketing activities.

The Company cools natural gas to produce liquefied natural gas (LNG) that can be safely
shipped to markets around the world, and it converts gas to liquids (GTL). The Company
Tmarkets and trades crude oil, natural gas, LNG, electricity and carbon-emission rights,
and also markets and sells LNG as a fuel for heavy-duty vehicles and marine vessels.
The Company sells various products, such as gasoline, diesel, heating oil, aviation fuel,
marine fuel, lubricants, bitumen and sulfur. In addition, it produces and sells
petrochemicals for industrial use across the world. The Company's oil and gas
exploration and production activities are located in various regions of the world, such
as Albania, Bulgaria, Denmark, Germany, Ireland, Italy and Norway in Europe; China,
India, Indonesia, Iraq, Jordan, Malaysia, Mongolia, Myanmar, Qatar, Russia and Turkey
in Asia; Australia and New Zealand in Oceania; Algeria, Egypt, Gabon, Kenya, Nigeria
and Tunisia in Africa; Canada, Honduras and the United States in North America, and
Argentina, Brazil, Colombia and Bolivia in South America.
 COMPANY PROFILE

PHOTO: BRITISH PETROLEUM

The Company's plants produce a range of base chemicals, including ethylene, propylene
and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene
oxide, solvents, detergent alcohols, ethylene oxide and ethylene glycol. The Company's
Oil Products activities comprise Refining and Trading, and Marketing. The Marketing
business includes Retail, Lubricants, Business to Business (B2B), Pipelines, and Biofuels
and alternative energies. The Chemicals business has various manufacturing plants,
located close to refineries, and its own marketing network. In Trading and Supply, it
trades crude oil, oil products and petrochemicals, to optimize feedstocks for Refining
and Chemicals, to supply its Marketing businesses and third parties, among others. The
Company produces, markets and sells lubricants for passenger cars, motorcycles, trucks,
coaches and machinery used in the manufacturing, mining, power generation, agriculture
and construction sectors. Through its marine activities, it primarily provides lubricants,
as well as fuels and related technical services, to the shipping and maritime sectors. The
Company's B2B activities encompass the sale of fuels and specialty products and
services to a range of commercial customers.
 FLASH COURSE

5 Predictions for the Global

Energy Storage Market in 2019
From our annual Energy Storage Summit, a recap of 2018 market trends and a look at key trends
for next year.

JEFF ST. JOHN DECEMBER 11, 2018

2018 has been a big, yet bumpy, year for the U.S. energy storage market. We've seen huge
increases in behind-the-meter installations in homes and businesses, but also supply bottlenecks
and policy uncertainties that restrained larger-scale battery installations.

How are these trends likely to play out next year?

That’s the topic that Ravi Manghani, energy storage research director at Wood Mackenzie Power
& Renewables, took up in Tuesday’s opening presentation at Greentech Media’s annual Energy
Storage Summit in San Francisco. Manghani sketched out the key developments of 2018, and
made five “bold and not-so-bold” predictions for what will be different in 2019.

The first is that utility-scale energy storage installations, after seeing a drop in the first three
quarters of 2018 compared to last year, will pick up again next year. As Manghani noted, the
front-of-meter battery market is inherently a lumpy one, with one or two massive projects
dominating annual figures.

But there’s also been a policy issue holding up utility-scale storage this year, Manghani said. The
uncertainty over how the nation’s grid operators are going to implement Federal Energy
Regulatory Commission (FERC) Order 841, approved in February, has stalled projects. Order 841
broadly directs grid operators to create market mechanisms that accommodate batteries’ unique
abilities to both charge and discharge from the grid, and ramp up and down at speeds that
traditional generators can’t match. But the details of how each ISO and RTO plans to implement
FERC’s requirements has been the subject of much debate in the energy industry, as we’ve noted
in ongoing coverage of the various straw proposals coming out over the past few months.
 FLASH COURSE

The second prediction for 2019 is bolder than the first — the observation that the
record for solar-plus-storage deployments in 2018 will be broken yet again in 2019.
That’s based on the forecast for falling solar and battery prices, combined with a
continuation of the federal Investment Tax Credit for solar that can include the
cost of batteries as part of the installation.

This year has already seen records broken for solar-plus-storage power-purchase
agreements, Manghani said. Xcel Energy in Colorado saw bids for solar-plus
storage at $36 per megawatt-hour, compared to $25 per megawatt-hour for
standalone solar, and NV Energy has seen even lower bids in its solar and solar-
plus-storage RFPs.

That equates to about a $6 to $7 per megawatt-hour premium for solar projects

that are partially dispatchable — if not completely dispatchable in the manner of a
power plant. By 2023, when the ITC window closes, the levelized cost of energy
(LCOE) of combined solar-storage projects will put them in direct competition with
traditional generators, Manghani said.

The push for longer-duration solar-plus-storage is also being driven by some key
corporate efforts, such as Microsoft’s proxy generation PPA or Google’s 24x7 clean
generation initiative for its data centers, that are trying to align their demand to
their renewable energy portfolios.
 FLASH COURSE

This also feeds into Manghani’s third prediction: that natural gas-fired peaker
plants, already a dying breed in storage-rich markets like California, will continue
to “lose favor” in 2019.

Wood Mackenzie Power & Renewables projects that up to 6.4 gigawatts of future
peaker capacity, or about 32 percent of what the U.S. is projected to need by 2026,
could be at risk from energy storage with durations of four hours or greater — and
that’s with relatively conservative projections of 6 to 8 percent decreases in energy
storage costs annually over that time.

If one takes more aggressive estimates of 10 to 12 percent declines every year

through 2026, the share of new peaker plant capacity taken by batteries could rise
to as much as 80 percent, he said.

Manghani’s fourth prediction is centered on one of the industry’s roadblocks this

year: the supply chain shortages that have slowed growth in the commercial and
industrial behind-the-meter sector. Two key trends are driving this shortage — a
temporary bottleneck in manufacturing capacity and the rising global price of
cobalt, a key ingredient of many higher energy density lithium-ion battery
chemistries, such as lithium nickel manganese cobalt oxide and lithium nickel
cobalt aluminum oxide.

These batteries are particularly favored for the electric vehicle industry for their
higher energy density. Since EVs are driving the battery market, battery
manufacturing took up nearly half of global cobalt production in 2017.
Consequently, cobalt prices more than doubled from 2016 to 2017.
FLASH COURSE
 FLASH COURSE

While Wood Mackenzie predicts that cobalt prices will decline over the next two
years, the current price spike has focused attention on lithium-ion chemistries that
don’t require cobalt, such as lithium iron phosphate (LFP), lithium manganese oxide
and lithium titanate. Manghani predicted that LFP, the most common of these
chemistries, will retake its former place as the lithium-ion chemistry of choice for
the energy storage industry in 2019.

Wood Mackenzie Power & Renewables projects that up to 6.4 gigawatts of future
peaker capacity, or about 32 percent of what the U.S. is projected to need by 2026,
could be at risk from energy storage with durations of four hours or greater — and
that’s with relatively conservative projections of 6 to 8 percent decreases in energy
storage costs annually over that time.

If one takes more aggressive estimates of 10 to 12 percent declines every year

through 2026, the share of new peaker plant capacity taken by batteries could rise
to as much as 80 percent, he said.

Manghani’s fourth prediction is centered on one of the industry’s roadblocks this

year: the supply chain shortages that have slowed growth in the commercial and
industrial behind-the-meter sector. Two key trends are driving this shortage — a
temporary bottleneck in manufacturing capacity and the rising global price of
cobalt, a key ingredient of many higher energy density lithium-ion battery
chemistries, such as lithium nickel manganese cobalt oxide and lithium nickel
cobalt aluminum oxide.

These batteries are particularly favored for the electric vehicle industry for their
higher energy density. Since EVs are driving the battery market, battery
manufacturing took up nearly half of global cobalt production in 2017.
Consequently, cobalt prices more than doubled from 2016 to 2017.

Source: https://www.greentechmedia.com/articles/read/five-predictions-for-the-global-
energy-storage-market-in-2019#gs.KmYBvHaJ
COMPETITION INFO
 COMPETITION INFO

[Call for Delegates : BOREYES 2019]

Greetings, future delegates! “When Somebody Challanges You, Fight

Back. Be Brutal, Be Tough".

Early Bird Registration of BOREYES 2019 already open!

BOREYES International Fair 2019 is an annual International Petroleum

competition-based event held by Society of Petroleum Engineers
Padjajaran University Student Chapter (SPE UNPAD SC).

Here are the step to register:

1. Open the competition link
2. Fill all the needed team information
3. Complete the pre-registration fee Rp.150.000/team by transfer to
rek.BNI 0730092854 a.n Ratih Purwaningsih
4. Upload the picture of payment recipe and upload the
abstract/blueprint/essay to registration form
5. Click submit
6. Wait the announcement of the selected team until february 12, 2019

Here are the competition link:

- Paper comp: http://bit.ly/PaperCompBoreyes
- Case study: http://bit.ly/CaseStudyBoreyes
- Smart Comp: http://bit.ly/SmartCompBoreyes
- ORD Comp: http://bit.ly/OrdComoBoreyes

Early Bird Registration will be open until january 21, 2019

Please Fill in the form below :

http://bit.ly/SPEDelegates

For the booklet, invitation letter, finance guidance book, and Modul
you can download it from the URL below :
1. http://bit.ly/InvitationLetterBoreyes2019
2. http://bit.ly/Financeguidebook
3. http://bit.ly/DelegatesModule

DISCLAIMER :
Registration without acknowledgement of SPE ITS SC will be
considered unofficial delegation.
Support SPE ITS SC will only be given to official delegation

For further information, please feel to contact the person below :

Line ID : adamrangga
Phone : +628561121996
HEROES ON COMPETITION

We are glad to announce that SPE ITS SC Delegates,

"ARINEE TEAM"
1. Rafly Rama Putra - 04211640000116
2. Frankie Samuel Marcelo - 04311540000140
3. Ferrel Hamonangan - 0221740000076
4. Novita Nur Jayanti - 08411740000011

has won the 1st runner up Winner of Oil Rig Design Competition at
Pelantar 2018.

Thank you for your great effort and huge contribution, delegates.
Cheers to many more achievements to come!
"Success is not final, failure is not fatal: It
is the courage to continue that counts"

Sir Winston Leonard

Spencer-Churchill
Former UK Prime Minister
 PHOTO: SEEKING ALPHA

There are enough oil reserves to meet about

53 years of global production
.
Unless we magically stumble upon better energy options that are easier to
access, we will be dependent on oil and gas for the foreseeable future. 53 years
may sound like a scarily low number, but rest assured that we have a lot more
“gas left in the tank.” In the past decade, global oil reserves have increased by a
whopping 27%, and the drilling efforts of experienced professionals like you
are adding to those totals every day.

DID YOU KNOW ?