The UK National Committee Expert Workshop will focus on 'Financing Challenges for an Energy Industry in Transition'.
As the global energy industry faces numerous transformational changes which impact in the way it will be financed and managed. These changes offer significant growth opportunities for industry players, but also involve inherent business risks which make the sustainable financing of the industry a top priority for management.
A fundamental challenge is the increasing volatility of the whole sector in terms of demand and supply movements of traditional fuels posed by the rise of renewable energies, macro-geopolitical events, and the ongoing high volatility of oil and gas commodity prices. Such volatility has elevated medium and long-term financial planning and complex capital investment decisions to the very top managements' agendas. Key challenges facing the sector include:
The need to maintain sufficient investment in upstream exploration and resource development in order to avoid future supply shortages and to meet consumers' needs. In the UK's particular case the decommissioning of depleted production infrastructures, including extending life of mature producing provinces such as UKCS.
Management of the ongoing transition towards a low carbon global economy.
The need to evolve competitive markets designs for energy and CO2 in order to attract and retain capital and investors' appetite to invest in the sector.
The urgent requirement to embrace and finance new, and sometimes disruptive, technologies to ensure future cost, operational, environmental and market related benefits adn efficiencies.
The requirement to implement climate related policies and regulations in a timely manner.
In response to recent financial regulatory changes, activist shareholders and new policies, a number of energy banks, multi-lateral agencies and institutional investors have reduced their exposure to the traditional oil and gas sector. This trend in turn may encourage new groups of financiers such as activist investment funds, private investors and sovereign wealth funds to support the future financing of the sector.
The UK National Committee of the WPC, in partnership with the Energy Institute, is delighted to host this one-day symposium where finance and energy industry experts will address these challenges and discuss financial solutions that will manage risks and facilitate the development of the future energy mix to meet consumers' requirements