Page 7 - MEOG Week 10 2021

MEOG COMMENTARY MEOG

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

Week 10 10•March•2021 www. NEWSBASE .com P7