Page 7 - NorthAmOil Week 09 2021

NorthAmOil COMMENTARY NorthAmOil

presented a business opportunity. players – echoed these expectations.
Others, meanwhile, put more emphasis on “When we look at LNG and natural gas, we
the importance of oil and gas and the demand think it’s a perfect complement to renewables,”
they will continue to meet for some time. US LNG producer Cheniere Energy’s president
“I think one of the key lessons [of the pan- and CEO, Jack Fusco, said. “I think everybody
demic] here is the essential nature of our indus- will agree that natural gas is a key component of
try,” said Chevron’s CEO, Mike Wirth. “We saw a a cleaner energy environment.”
pandemic that created a global recession and an Chevron’s Wirth also said his company was
enormous response in policy that created eco- “bullish on natural gas” and saw LNG as having
nomic slowdowns around the world. And yet, “a very important role in the lower-carbon econ-
as we went through one of the most significant omy that we’re all working toward”.
shocks that we’ve seen to the global economy And a number of other speakers expressed
in decades, demand destruction for oil and gas similar sentiments.
only averaged something like 9%, despite a crisis
in which we were tested like never before. And What next?
so, I think it demonstrates how important our Some of these concepts, including that of gas
industry is to the world economy.” as a bridge fuel, are nothing new and have been The outlook
A number of company executives said they discussed at CERAWeek and other conferences
expected oil and gas demand to grow over the for some years. Other topics of discussion have is brighter for
next decade. evolved. Certainly, the issue of post-pandemic natural gas,
“Hydrocarbons are still going to be essential recovery and the changes that will come in the
for providing energy to the world, especially in wake of coronavirus (COVID-19) is a new area which was touted
the near term,” Baker Hughes’ CEO, Lorenzo of focus.
Simonelli, said. Additionally, the dialogue appears to be by many as being
Indeed, the International Energy Agency increasingly shifting from simply discussing
(IEA) estimates that producers will need to the importance of reducing emissions to dis- a transition
invest $500-600bn per year in new oil and gas cussions of the practical steps involved and how fuel that has a
projects in order to keep up with global demand. challenges can be overcome.
With more and more companies pursuing potentially longer
Brighter outlook their own decarbonisation targets, there will be
The outlook is brighter for natural gas, which more to talk about in practical terms, based on lifespan than oil.
was touted by many as being a transition fuel their experience.
that has a potentially longer lifespan than oil. And while some oil and gas companies
Indeed, van Beurden said that Shell will continue remain resistant to the idea of decarbonisation,
to invest in gas even as it moves away from oil, the energy transition increasingly appears to
adding that he believed gas would outlive oil for be unstoppable. As the CERAWeek speakers
at least a decade. sought to point out, however, there are consid-
Others – particularly prominent LNG erable challenges ahead.™

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