fossil fuel Current Affairs - 2020

European Investment Bank to stop Fossil Fuel Funding by 2021

The European Investment Bank is to stop funding oil and coal projects at the end of 2021. Since 2013, the European Union through the bank has funded 13.4 billion Euros for fossil fuel projects. In 2018, it was around 2 billion Euros. The Union has been reducing its funding to fossil fuel projects and is stopping by 2021.

Highlights

  • The EIB’s new policy demands that the energy projects applying for funding must prove that they can produce 1 Kilo watt hour of energy emitting less than 250 grams of carbon dioxide.
  • The new rules being adopted are not applicable to gas-based energy projects. However, gas projects should be based on the norms set by the bank for “new technologies”. The “new technologies” include carbon capture, combining heat and power generation, mixing in renewable gases with fossil fuels, etc.
  • The exemptions are made on gas projects as they are common in the EU member states. For the next 5 years, EU has over 200 billion USD worth projects planned.

EU aims to become first carbon-neutral continent by 2050.

Iran discovers new oil field with 53 Bn barrels of reserves

Iran has discovered a new oilfield with 53 billion barrels of crude oil in Khuzestan province, home to Iran’s Khuzestan’s crucial oil industry. The announcement however did not reveal how much oil could be produced from the reservoir but the find could boost country’s battered economy amid stringent US sanctions.

Key Highlights of Discovery

The new oil field discovered is 2,400 square kilometres (925 square miles), with the deposit some 80 metres (260 feet) deep.

The discovery of field is expected to boost country’s proven 150 billion barrel reserves by a third. It could also become Iran’s second-largest field after one in Ahvaz containing 65 billion barrels.

Iran’s Oil Reserves:

Iran currently has about proven crude oil reserves of 155.6 billion barrels and this new oil filed discovery would add about 34% to its total reserves.

At present, the US Energy Information Administration (EIA) ranks Iran as having world’s fourth-largest proven deposits of crude oil and world’s second-largest deposits of natural gas. If the size of new oil reserves is proven to be accurate, it would lift the country to 3rd place, just below its regional enemy Saudi Arabia.

Iran is also a founding member of the Organization of the Petroleum Exporting Countries (OPEC).