Hong Kong Briefing: How are Asian Company Strategies Responding to the Energy Transition?
Thursday,29 August 2019
Companies & Evolving Strategies
Oil and gas companies currently face critical upstream portfolio choices - weighing up specialization vs. diversification, while taking into consideration investor sentiments regarding returns, and moving towards low-carbon themes. Understanding the implications, and how it affects decisions for different sets of players in Asia (IOCs, Independents, NOCs and Regional Players), will be the key focus of this session.
ED, Upstream Research & Analysis, IHS Markit
New Era for China's Domestic Oil & Gas: Opportunities and Challenges
Although China has been the biggest oil and gas importer in the world, China's demand for oil and gas is expected to continue increasing. However, domestic oil and gas production is far from meeting that demand - oil production is declining for mature fields, while gas production faces challenges in exploiting the complex unconventional resources. The US-China Trade dispute has also put a spotlight on national energy security, triggering the Chinese government to encourage the NOCs to increase domestic production. This has led to improved regulatory and fiscal terms, so as to attract foreign/private investors to China to boost production. In lieu of these developments, what has changed and what will the future look like? What opportunities/challenges should foreign investors be keeping an eye out for?
AD, Upstream Oil & Gas Research, Asia Pacific, IHS Markit
Asian Downstream Transitions
Trends of increasing refined product trade and stronger export-oriented refining centers have accelerated. This will continue with major refineries starting up in China and Southeast Asia this year. To avoid being marginalized, many regional refineries have reinvested to increase processing intensity and to integrate with petrochemicals, adding further refining capacity in the process. To secure refined product demand and returns, many players have made acquisitions in marketing and distribution across Asia Pacific. Mr. Shum will discuss how importing markets with healthy distribution margins and growth potential could still offer export-oriented refiners attractive opportunities.
VP, Energy Consulting, IHS Markit
Energy transition: Outlooks for Conventional vs New energy
More solar was installed globally in the past two years than any other type of power generation and renewables are projected to be the fastest growing source of new power generating capacity through 2050. Continued policy support and sustained technology cost reductions will accelerate the renewables deployment at all points of the grid. Many traditional energy companies in the oil and gas space are making acquisitions in the low carbon space.
- What will be the role of conventional energy like gas-fired power in a low-cost renewable world?
- Which markets offer the greatest growth opportunities?
- How will cost declines continue over time making renewables costs competitive aginst conventional sources of power generation?
- What role are renewable tenders around the world playing in driving cost reductions?
- How are traditional energy companies in oil and gas strategizing amidst the energy transition?
MD, Power, Gas, Coal & Renewables, Asia Pacific, IHS Markit