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RIYADH: On a macro level, global coal demand is set to return to its all time high during 2022, as natural gas prices jump following Russia’s invasion of Ukraine. Zooming in, Shell has recorded an $11.5 billion profit during the second quarter on the back of strong gas trading. 

Looking at the bigger picture

• Global coal demand is set to return to its all time high during 2022, despite a slowing global economy, a report by the International Energy Agency showed. Global coal consumption is forecast to rise by 0.7 percent in 2022 to 8 billion tons. This happens as soaring natural gas prices following Russia’s invasion of Ukraine has intensified gas-to-coal switching in many countries, as well as the inability of some major coal producers to ramp up their production. 
• The UAE has launched its Power-to-Liquids Roadmap, which was drafted in cooperation between the Ministry of Energy and Infrastructure and the World Economic Forum. The newly launched roadmap shows the financial, economic and environmental benefits of Power-to-Liquids in decarbonising the UAE aviation industry, according to Emirates News agency. 

Through a micro lens

• Shell has reported a profit of $11.5 billion during the second quarter, smashing its previous record three months earlier. The jump is attributed to the tripling of refining profits and strong gas trading, according to Reuters. The company also announced a share buyback program of $6 billion for the current quarter, but did not raise its dividend of 25 cents per share.
• British oil company BP and Spain’s Iberdrola will jointly invest $1 billion in electric vehicle charging and agreed to work together on the development of green hydrogen production, Bloomberg reported. Both energy companies are forming two joint ventures to accelerate emissions reduction in sectors beyond power production.