The players in the energy transition were in full force in Dallas, Texas on the eve of October 26th. In the present, the energy mix, and its transitioning state, consists of all forms of energy from oil and gas to renewables, and much more. In that spirit, at the Dallas Petroleum Club, D CEO magazine fittingly held its annual awards event with a panel titled, “The Future of Energy: Traditional and New Sources.” I moderated the panel and developed the topics under consideration, with a select few as follows:
• Given the dizzying number of scenarios of oil and gas demand, renewables penetration, power generation mixes and other sources, how might the energy mix evolve?
• How oil and gas is adapting in this energy transition; and how to address investment shortfalls in the near- to medium-term time horizon? (Currently, the IEA says that $356 billion will be spent in 2021, with OPEC and other large producers suggesting around $500-600 billion needed annually to meet demand by 2040-2045.)
• How are investors approaching the energy transition and what is the impact of ESG and sustainability investment themes?
• What will EVs impact be on grids’ capacity, infrastructure or the demand for oil and gas?
In order to develop these questions, weeks were spent pouring through newly-minted reports from sources such as the U.S. Energy Information Administration (EIA), the International Energy Agency (IEA), climate risk reports from mega-cap energy firms, and so on. Washington D.C.-based think tank events, an environmental management consultancy event and others provided color. The realm of analysis of the energy transition is vast and grown more so of late, and I have been analyzing the changing developments for over 13 years, with the implications for investment over the last 7 years.
Truly, we can only talk around these questions and develop and model scenarios. What matters is what actions are taken by policymakers and governments, companies, investors, civil society, and individuals. And there are exponential actions being set in motion by various actors. At the awards event, a number of firm executives were being recognized for their innovations, leadership and advances in the energy industry as it morphs into an evolving energy ecosystem for the future—the people powering the future. These leaders are cited as: “fossil fuel players stepping up to create the energy sector of the future—an industry marked by interdisciplinary camaraderie and disruptive innovation.” This is what the real energy transition looks like in Texas.
(Here is a link to the article that highlights some of the innovation and sustainability award finalists and lists the winners of other categories, including lifetime achievement award winner Scott Sheffield, CEO of Pioneer Natural Resources. That cover story article of mine will be online November 8th.)