Given the capital intensive nature of the oil & gas industry, investors have historically always been worried about the same three questions. How much oil is in the ground? How much is it going to cost to get it out? How much can it be sold for?
Jon Clark EMEIA leader oil & gas transaction advisory services, Ernst & Young
But, said Jon Clark EMEIA leader oil & gas transaction advisory services, Ernst & Young, the world is in the throes of an energy transition which means different things to different people which can be defined by six Ds.
Division of power
Design for efficiency
“The energy ecosystem will not be transformed quickly or cheaply. There are big questions about the path to clean energy. We’ve developed models for different versions of the future,” he told delegates at Africa Oil Week.
The long good bye where we continue as is with a gradual transition
Slow peak where transition is predicted for the late 2040s
Meet me in Paris, which is the best possible scenario with governments working towards meeting the global climate change objectives on carbon emissions and banning single use plastic
Faster shift which is fuelled by gas and where nuclear could make a comeback
“The fastest way to move to carbon-free is to take coal out of the equation,” Clark said.
There are, however, other influences that will impact which scenario plays out.
The model that emerges is largely dependent on the electrification of vehicles. While governments in the developed world wanting every vehicle on the road to be electric by the 2030s, this is not a realistic assumption in the developing world, he said.
How the emerging middle class in developing economies spends their money impacts the demand on energy. Income elasticity means that this demographic is likely to spend their extra money on cars and travel, Clark said.
Nicci Botha has been wordsmithing for more than 20 years, covering just about every subject under the sun and then some. She's strung together words on sustainable development, maritime matters, mining, marketing, medical, lifestyle... and that elixir of life - chocolate. Nicci has worked for local and international media houses including Primedia, Caxton, Lloyd's and Reuters. Her new passion is digital media.
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.