Page 7 - LatAmOil Week 09 2021

LatAmOil COMMENTARY LatAmOil

And if there cannot be enough renewable energy projects in order to keep up with global demand.
to meet all demand, that brings fossil fuels back
into play, at least for a number of years to come. Brighter outlook
The outlook is brighter for natural gas, which
Piece of the puzzle was touted by many as being a transition fuel
Some differences of opinion emerged at this that has a potentially longer lifespan than oil.
year’s CERAWeek about what sort of future oil Indeed, van Beurden said that Shell will con-
and gas will have in this context. Some, such as tinue to invest in gas even as it moves away from
the CEOs of BP and Royal Dutch Shell, talked oil, adding that he believed gas would outlive oil
up their efforts to move away from oil and gas. for at least a decade.
“We’ve been an oil and gas company for 112 Others – particularly prominent LNG play-
years, and I think this is a moment where we ers – echoed these expectations.
do have to reinvent the company,” BP’s CEO, “When we look at LNG and natural gas, we
Bernard Looney, said. “We decided to really think it’s a perfect complement to renewables,”
embrace that energy transition, more as a mas- US LNG producer Cheniere Energy’s president
sive opportunity and not look at it as some sort and CEO, Jack Fusco, said. “I think everybody
of threat to our core business.” will agree that natural gas is a key component of
Shell’s CEO, Ben van Beurden, for his part, a cleaner energy environment.”
said he believed his company’s oil output had Chevron’s Wirth also said his company was
peaked in 2019 and that targeting customers “bullish on natural gas” and saw LNG as having
seeking to reduce their own emissions presented “a very important role in the lower-carbon econ-
a business opportunity. omy that we’re all working toward”.
Others, meanwhile, put more emphasis on And a number of other speakers expressed
the importance of oil and gas and the demand similar sentiments.
they will continue to meet for some time.
“I think one of the key lessons [of the pan- What next?
demic] here is the essential nature of our indus- Some of these concepts, including that of gas
try,” said Chevron’s CEO, Mike Wirth. “We saw a as a bridge fuel, are nothing new and have been
pandemic that created a global recession and an discussed at CERAWeek and other conferences
enormous response in policy that created eco- for some years. Other topics of discussion have
nomic slowdowns around the world. And yet, evolved. Certainly, the issue of post-pandemic
as we went through one of the most significant recovery and the changes that will come in the
shocks that we’ve seen to the global economy wake of coronavirus (COVID-19) is a new area
in decades, demand destruction for oil and gas of focus.
only averaged something like 9%, despite a crisis Additionally, the dialogue appears to be
in which we were tested like never before. And increasingly shifting from simply discussing
so, I think it demonstrates how important our the importance of reducing emissions to dis-
industry is to the world economy.” cussions of the practical steps involved and how
A number of company executives said they challenges can be overcome. With more and
expected oil and gas demand to grow over the more companies pursuing their own decarbon-
next decade. isation targets, there will be more to talk about in
“Hydrocarbons are still going to be essential practical terms, based on their experience.
for providing energy to the world, especially in And while some oil and gas companies will
the near term,” Baker Hughes’ CEO, Lorenzo be resistant to the idea of decarbonisation,
Simonelli, said. the energy transition increasingly appears to
Indeed, the International Energy Agency be unstoppable. As the CERAWeek speakers
(IEA) estimates that producers will need to sought to point out, however, there are consid-
invest $500-600bn per year in new oil and gas erable challenges ahead. ™

MEXICO
Pemex reports profit in Q4-2020

MEXICO’S national oil company (NOC) -This represents an improvement on the
Pemex revealed last week that it had turned a same period of 2019, when the NOC sustained
profit again in the final quarter of 2020, marking a loss of MXP171.5bn ($8.19bn), and follows
its second consecutive quarterly gain. another net profit in the third quarter, they said.
In a conference call with investors on Feb- They also noted that Pemex’s earnings before
ruary 26, representatives of Pemex reported interest, taxes, depreciation and amortisa-
that the state-owned company had earned a net tion (EBITDA) had amounted to MXP20.2bn
profit of MXP123.2bn ($5.88bn) in the fourth ($964mn) in the fourth quarter, down by 29%
quarter. year on year.

Week 09 04•March•2021 www. NEWSBASE .com P7