WECA 2024 Key Takeaways – Powering through volatility: Innovation, security and capital in transition

Speaker Majid Jafar, CEO, Crescent Petroleum

Crescent Petroleum emphasised the critical role of natural gas in advancing a sustainable and inclusive carbon transition, alongside its potential to drive economic growth, particularly in developing countries. The discussion underscored the stark disparity in energy access, with 800 million people lacking electricity and 3 billion relying on harmful biomass fuels. Current climate narratives often vilify oil and gas companies while failing to account for the interconnection between energy access and climate goals. A more balanced approach is needed, particularly as future emissions and economic growth are expected to be driven by developing nations.

Moderator: Ross Lubetkin, CEO, Welligence
Jacques Tohme, Chair, Samos Energy
Tom Field, Partner, Quantum Capital Group
Espen Kvilekval, Global Head of Ocean Energy, DNB
Richard Cavilli, Managing Director, Head of Energy EMEA, Wells Fargo
Neeraj Agrawal, Group CFO, Crescent Petroleum

The panel explored the evolving challenges and opportunities in financing oil and gas projects, focusing on the impact of European capital withdrawal and the cautious stance taken by US investors, as well as the broader effects of ESG pressures on the sector.

The discussion highlighted the increasing difficulty in raising capital, particularly in regions like the Middle East, where political risks are harder to mitigate compared to previous years. Despite these challenges, it was noted that capital is still available for quality projects, with an emphasis on innovation in financing and addressing perceptions of risk early in the process.

Speakers: 

• Moderator: Martin McAspurn-Lohmann, Consultant, CF Advisory 

• Cheick-Omar Diallo, Leader Task Force Communication and Spokesperson for Tilenga, TotalEnergies 

• David Alfrey, Partner – ESG, Addelshaw Goddard 

• Martha Vazquez, Partner & Associate Director, Upstream Oil & Gas, BCG 

• Geert J Arlman, EMEA Commercial Head of Sustainable Finance, S&P 

• Henry Tarr, Co-Head of Energy & Environment, Berenberg 

There is currently a $4.9 trillion need for oil and gas investments by 2035 to ensure energy security, but how to achieve this given shifting investor expectations, evolving regulations and remaining commercially competitive is a challenge for operators. A key takeaway from the session centred on transition as a mega trend driving credit ratings, however unlike other sectors it remains hard to measure the veracity of these transition plans and while we can expect net negative impacts from the transition for oil and gas companies, there is currently no reward for those leading efforts in this space.

• Moderator: Enrique Cornejo, Head of Energy Policy, Offshore Energies UK 

• Christoffer Mylde, Senior Vice President, Corporate Development, Sproule 

• Euan Shirlaw, CEO, BlueNord 

• Rajat Katyal, Global Head Energy Group, HSBC 

• Dick Stoneburner, Chairman, Tamboran Resources 

• Surkani Manan, Vice President – Corporate Strategic Planning & Business Development, PT Perta Arun Gas 

Gas has a significant role to play in enabling the energy evolution and discounting its importance run the risk of compromising energy security, both at a regional and global level. As certain regions move towards a lower carbon energy system, gas has a significant role to play in stabilising electricity grids, reducing emissions from LNG imports and enabling renewables to play a greater role in day-to-day energy needs.

• Moderator: Lamé Verre, Group Sustainability Director for Net Zero, The Crown Estate 

• Tassos Vlassopoulos, CEO, HELLENiQ Upstream 

• Greg Owen, Vice President, New Ventures & Technical Services, GLJ 

• Neil McCulloh, CEO, Spirit Energy 

• Nor A’in Md Salleh, General Manager CCS, Petronas 
  Susan Swails, Client Director, AON 

The panel brought together companies from Malaysia, Greece, the UK alongside AON the insurance company to discuss the role of Carbon Capture Utilization and Storage (CCUS) in achieving net zero goals. Key points included the need to shift focus from hydrogen as a silver bullet to established CCUS technologies, emphasising it’s role in maintaining energy infrastructure and quality of life.

• Moderator: Stephanie Del Carpio, Partner and Associate Director, BCG  

• Manoj Narender Madnani, Managing Director, International, MARA 

• Sunday Shepherd, General Manager, Corporate Strategy, Chevron Corporation 

• Doris Reiter, SVP North Sea, bp 

• Ashwin Punde, Managing Director Energy & Energy Transition, Standard Chartered  

• Gavin Templeton, CEO, Veri Energy 

The session explored how energy companies are reshaping business models to navigate the energy transition, focusing on innovation, strategic adjustments, and the integration of traditional and new energy systems. Participants highlighted the critical need for companies to balance long-term investments, decarbonisation, and maximising valuations while meeting stakeholder demands for cleaner energy and higher returns. 

• Moderator: Mark McCrory, Director, Strategy and Advocacy, International Gas Union
• Cany Jobe, Director of Exploration & Production, Gambia National Petroleum Corporation
• Daniel Muwooya, Head of Commercial and Business Development, Uganda National Oil Company
• Alasdair Mackenzie, Director Strategy, Planning & Business Development, Seplat Energy
• Robert Bose, President, Sintana Energy  
• Ade Adeola, Managing Director Energy & Natural Resources Europe and Africa, Standard Chartered

The panel examined Africa's energy challenges and opportunities, focusing on financing solutions to meet the continent's energy needs. Currently, 600 million Africans lack electricity, and 1 billion have no access to clean cooking. Despite holding 13% of the world’s proven gas reserves and vast renewable potential, Africa faces significant financing barriers, with only 2.4% of global renewable investment reaching the region over the past decade. This situation is compounded by increasing debt levels, with the debt-to-GDP ratio rising from 30% to 60%. 

The session explored the strategies NOCs are employing to balance decarbonisation efforts with energy security and economic sustainability. The discussion centred on emissions reduction, investment in technologies, and the challenges posed by climate commitments.

NOCs outlined their ambitious decarbonisation goals:

• Reducing upstream CO2 intensity significantly by 2035.
• Achieving net-zero emissions by 2050.
• Cutting methane emissions by up to 70% within set timelines.

The session explored how oil and gas companies can enhance their long-term value by adopting sustainability-focused strategies and aligning with evolving ESG expectations.

The session explored the future of the North Sea’s energy sector, emphasising its pivotal role in the UK’s energy transition, economic stability, and global energy security. 
 
The industry supports 200,000 jobs in the UK and underpins a world-class supply chain critical to energy security and affordability. The discussion stressed the importance of domestically produced energy to avoid reliance on imports and ensure a stable supply for future generations. Participants highlighted the sector's efforts to meet environmental targets and its contributions to daily life across multiple sectors.