At the end of May, the Energy Council hosted an advisory board with senior executives in the North American energy sector to discuss ESG and the Energy Transition. The esteemed advisors reflect a diverse range of both E&P operators, investors, financiers, digital leaders, OFS players and traders across both the private and public spaces.
The Energy Council’s Asia Pacific Energy Assembly gathered the industry’s leading figures to discuss the pressing issues facing the Asian Pacific energy market.
Day Two saw the conversation move toward how the region will approach the developing role of natural gas and LNG in the energy transition, beginning with a keynote address from Wood Mackenzie’s Head of Asia Pacific, Gavin Thompson.
Gavin’s address spoke to the rapid shift in appetite for the fuel, as it became the prime candidate for replacing oil and coal demand.
The third and shortest day of our Asia Pacific Energy Assembly was by no means that least exciting, in fact the emerging role of ESG and the accelerated energy transition has revealed the deep passions and commitment by oil and gas players to develop a market that considers both energy access and the immediate climate concerns.
What does a comprehensive ESG programme look like; identifying the possible range of initiatives that work for your business.
To start; a business needs to identify and establish where and how their ESG-related weaknesses manifest. Once these weaknesses are established, a company should then identify, develop and utilize a strong ESG reporting framework, one that can challenge the business to improve their impact on society.
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 major short term focus for Ophir is progressing the Fortuna FLNG project to FID in mid-2016. Beyond that it is around making sure we are focused on delivering value growth from our assets.
Chris Midgley is Chief Economist for Shell Trading and Head of Oil Markets Analysis. Chris advises the business on short term dynamics affecting Global Oil Markets as well as leading a team which model the future crude, oil products and chemicals trends.
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.
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.
I suppose a good place to start would be about a year before the oil price fell, in 2013. We noticed at that time that the industry cost structure had become severely inflated. Our ultra deepwater wildcats could cost $250 million gross and the industry was maxed-out in terms of activity and this was stretching global capacity and global capability.
As a consequence, the industry performance as a whole at the top of the last cycle wasn’t that good because of the over-reach and the very high cost structure.
At the Oil and Gas Council, our role is to ensure we reflect our membership. It hasn’t escaped our notice that many of our members are undergoing efforts to realign their core business to a broader energy focus. Additionally, our network of financiers and investors are increasingly open to new opportunities that don’t sit in the traditional realms of upstream.
Our network has been built around connectivity, trust, integrity and most important impartiality. This final pillar presents an important distinction to many of the initiatives currently being pursued in the clean energy space.
Asia is one of the most dynamic regions in the global energy sector. Several factors including robust economic progress and demographic advancement have led to incredible growth over the last few years, with expectations of continued high demand in the short-, medium- and long-term. China has been the main market of energy growth. Across Asia the electrification of the region’s rural population will be the main driver for energy demand.
I was born in an oil camp in North Dakota and my father was a Petroleum Engineer, so I was literally raised learning about the industry. I attended my first OTC when I was 13 years old.
In the current state of affairs, we simply can not do enough to promote the positive factors associated with our industry. I believe that we must continue to encourage discussions, at every level, that put Canada’s long term economic interests ahead of regional political interests.