Today we have the luxury of choosing between several direct and indirect viable energy sources. Renewables and gas are two of these, and of course historically coal has been the dominant force. The decisive question we always face is “what is the optimal energy mix”?
At the Energy Capital Leaders Assembly in November 2019, Mark Radka, UN Environment and Paula Pinho, European Commission shared their insights into achieving a low-carbon future and their Sustainable Development Goals. Read more here
The Secret Sauce – Five Things Stopping Institutional Investors Deploying Greater Capital into Renewable Energy
If executives are going to successfully access some of the $2 trillion a year in clean energy infrastructure being allocated, knowing what these investors look for is important. Much is written about why they are investing, but we asked our membership what holds them back from deploying capital.
While the industry is starting to see more and more institutional money flow into the Minerals & Royalties space (PE, Pension Funds, etc.), the market still has a long way to go on the education curve.
China has become, unknown to many, a leading light in both the promotion and adoption of renewable energy sources.
Historically, the attitude towards decommissioning disused offshore oil and gas platforms—’abandonment’ as it was previously known—has been largely negative, with companies viewing mature installations as a burden rather than an opportunity for a new source of revenue. But the mood has changed.
Maybe there was a certain pride, nay, smugness around the O&G industry a few years ago… and despite the last 3 years of “downturn”, remnants of this may even remain in some corners.
With a year of political upheavals in the US and Europe behind us, but predictions of further disruption ahead, what is the outlook for companies in the African energy space?
While previous industry revolutions gave industry new tools, the fourth revolution gives us new knowledge. Every day, the keeper of this knowledge – the internet of things – is adding five million new devices (we’ll go from today’s 8 billion connected devices to a trillion by 2030).
International oil and gas companies have long had difficulty reconciling the long-term and high-cost investments demanded by the upstream oil and gas business with the shorter term thresholds and measures adopted by the equity and debt markets.
In November 2017, the Oil & Gas Council was back in Lagos to hold the Nigeria Assembly for the 3rd time. Over the course of the Assembly, a number of key themes emerged from our speakers and attendees alike which we would like to share with the wider network.
The oil industry is suffering from its deepest down turn and many commentators1 are now claiming crude may never recover to above $100/bbl. The industry is facing its longest down turn ever or, could it simply be an inflection point? So how have we got here and what have we learned so far?
The world has a growing population, increasing from 7 billion to 9 billion people by mid-century, with a higher expectation and affordability for their quality of life. Of these 9 billion people, more than half will live in Asia. This will drive higher energy consumption for decades to come, even with improvements in efficiency.
At the same time governments, businesses and society want this higher energy supply to come with less CO2.
At the United Nations Summit last year, heads of government reached a deal to keep “global average temperature to well below 2°C above pre-industrial levels”.
I would expect JV counterparty distress to become a major challenge in a sustained low-price environment, as some players in the industry face a very real insolvency risk. This issue is particularly relevant in the context of joint operating agreements, where one party enters into an insolvency process. A significant number of small to mid-cap players which have been very active in Africa and other developing markets are going to be squeezed between work commitments under their PSCs and a dearth of debt/equity financing.
The current remaining unconventional gas reserves is approximately equal with the estimated conventional gas resources of around 138 TCF. This is based on ~120 Coal Bed Methane (CBM) wells currently drilled in Indonesia. As more wells are drilled, we expect unconventional gas resources move closer to the estimated gas in place of 453 TCF. Rising national energy demand coupled with declining conventional gas production have significantly increased the role unconventional gas (CBM) will play to fulfil clean energy demand in Indonesia.