All companies are exposed to climate risks, which broadly fall into the two categories of physical and energy transition risks. Both of these include elements of regulatory risks.
Small-scale geothermal energy projects have operated in the UK for decades, but wider adoption has lagged due to a combination of factors including cost, subsurface risk and the technologies required.
With the UK oil and gas market reeling from COVID-19, it’s clear that the decisions made by businesses in this industry as they focus on a recovery in the coming months need to be strategic, measured and informed.
Don’t dismiss the leak of oil from the MV Wakashio that ran aground last month on a reef off the Indian Ocean island of Mauritius so quickly. The volume lost may seem tiny, but its location, mixed with other pressures already faced by the oil industry, means that it will have an impact far beyond its size.
While driving in Maryland last week, I passed a 13.6 megawatt solar project completed four years ago. At the time it was built it was on the larger side for the Mid-Atlantic region; a decade earlier, it would have been one of the very largest projects under construction in the entire country.
Last week Philip Dunne MP, Chairman of the Environmental Audit Committee (EAC), wrote to BEIS Secretary Alok Sharma requesting support for developing a Hydrogen Strategy.
With COVID-19 continuing to bring business disruption even as global lockdowns ease, the impact on the energy sector has prompted a review of existing contracts and serious repercussions for any negotiations returning to the table.
Large-scale hydrogen storage can enable the rise of renewables while bringing benefits to local authorities, transport companies and electricity suppliers.
I’m baffled by the Curlew decommissioning saga that will now see the life-expired FPSO be dismantled in Norway rather than via the original arrangement whereby it was to be prepped in Dundee prior to being towed to Turkey for chopping up.
The energy industry is in the midst of a deep and wide-ranging digital transformation. While Covid-19 and lower oil and gas prices have disrupted many investment programmes, the direction of travel is clear – the industry needs to continue to invest in innovation and the development and deployment of new processes and technologies. Not to do so risks being left behind.
I could feel the long, lockdown-length hairs on the back of my neck beginning to rise and my blood pressure soar as I read the response of Steve Dunlop, chief executive of Scottish Enterprise, to the report by the Scottish Government’s Advisory Group on Economic Recovery (AGER).
Energy Voice article – The Human Cost of Covid and Commodity Price Crash
The draft Infrastructure Planning (Electricity Storage Facilities) Order 2020 was presented to Parliament on 14 July 2020. The Order follows an extensive government consultation process, looking at legislative changes that could catalyse further development of UK battery storage capacity.
Despite its rich heritage of engineering ingenuity and entrepreneurial spirit, the oil and gas industry has been traditionally slow to adopt new technology. However, following the protracted downturn in recent years, this changed dramatically with companies much more open to collaborate on new technology and keen to embrace digital innovation in a bid to reduce costs and deliver ever-greater efficiencies.
In the world of geopolitics, it is remarkable how quickly a valued business partner can turn into the object of suspicion and candidate for sanction. The UK’s relationship with China now hangs in that delicate balance.
The EU recently produced a report addressing its strategy for delivering net zero carbon emissions by 2050 - Powering a climate-neutral economy: An EU Strategy for Energy System Integration.
Even in this time of great uncertainty caused by the Covid-19 pandemic and lower oil prices, corporate M&A and private equity investment in the energy sector is not dead.
As the UK begins to emerge from lockdown, there have been calls from business leaders and senior figures in government for ‘Building Back Better’ – an initiative aimed at ensuring the Coronavirus recovery plan prioritises climate change.
As someone who has previously run for parliament, allow me to attempt a typical politician’s response. Converting a redundant oil platform into a major Aberdeen tourist attraction is a great idea which I support. Or, then again, perhaps not. It’s definitely one of the two. There: that’s my bases covered.
For the oil markets, the first half of the year saw extraordinary swings in supply and demand, culminating in what is now thought to have been a staggering 22mbbpd of oversupply in April as OECD economies headed into lockdown and OPEC+ cuts dissolved. Demand fell to 78mmbpd and Saudi Arabia pumped an additional 1.6mmbpd, driving Brent down to under $10/bbl on April 21st and briefly pushing the WTI futures contract into negative territory.
Scotland will struggle to reach its net zero carbon targets unless Holyrood takes a swift and stronger grip on planning policy surrounding the deployment of taller turbine models, as well as a permissive approach to repowering of first-generation onshore windfarms with the latest technology.
The future of the energy industry landscape has long been up for debate, and the effect of COVID-19, combined with the dramatic global oil price crash and its detrimental impact, has brought this to an unparalleled level.
There has long been an easy way to monitor the health of the offshore oil industry. If the Cromarty Firth is hosting no drilling rigs, or only a few, then it’s in good shape.
In recent times, trading conditions have been exceptionally difficult for many of us, especially in the upstream offshore construction sector. The word “unprecedented” may be over-used but it remains relevant and accurate in describing the turbulent world in which we operate writes Aidan Thirsk, sales engineer at Zupt.
In between the Teams and Zoom calls, which now fill our days, and the odd webinar or two, it’s becoming increasingly evident that the oil and gas industry needs to have some serious conversations about value.