Energy is the Solution – Not the Problem
Reflections on EnerGeo '23
Last month, I was invited by the EnerGeo Alliance to contribute to a panel session during EnerGeo’ 23 in Houston. I had plenty of time on the journey home to the UK to reflect on what I’d heard and what I discussed. What struck me was that some very clear themes emerged from the conference, and I think it’s worth sharing those with you.
The Alliance brings together the companies, innovators, and energy developers who use earth science to discover, develop, and deliver energy to people around the world. This wasn’t a conference based on fossil fuel exploration, nor was it focused upon clean energy; the overarching take away from EnerGeo’ 23 was that whatever your viewpoint, energy is the solution – not the problem.
Taking place just a few weeks after our inaugural World Energies Summit, the synergies between the topics covered at both events were clear to see, and indicate to me that the past 24 months have seen the energy industry shift its focus and embark upon a revised path…
Exploration is Back
Chair of the EnerGeo Alliance, Andrea Lovatini, summed the current energy landscape neatly when he told us that he believes exploration is on the up (just look at the number of licences currently being awarded in licensing rounds across the global energy hotspots), with the challenge to reduce cycle times to first oil high on the agenda, there is a growing emphasis upon the application of new technology in mature oilfield development, combined with frontier exploration. That combination is seen as critical in not only unlocking the barrels required to sustain a burgeoning energy demand, but also in helping to decarbonise the exploration and production of those barrels.
In fact, Namibia – which can only be described as the hottest of energy hotspots right now and has been a significant focus at both our Africa Energies Summit and World Energies Summit - could go on to produce the world’s lowest carbon barrels.
But what occurred to me, listening to Andrea, is that this type of information is not as widely known as it should be. There is so much seismic technological development taking place, making make fossil fuel E&P much cleaner, faster and safer – but how well understood is this, outside the industry?
Choosing “Curiosity Over Clash”
Following that theme, time and again the message was that the energy-centric and climate-centric mindsets do not need to be mutually exclusive.
As Tisha Schuller of Adamantine Energy told us, this unrealistic energy context is distorting policy realities and we must choose “curiosity over clash”, finding a common ground and purpose across the energy transition in order to move forward and ensure a secure, sustainable future.
We heard this, albeit phrased differently, at the World Energies Summit, when Alejandro Stipanicic of Uruguay’s ANCAP, made the point that “the world needs a lot of energy in the future; it’s not a competition between ‘good’ energy and ‘bad’ energy”.
For me, this is a crucial point, that should be used as the basis for all energy development over the coming decades.
As Collins Akajagbor of Woodside Energy so succinctly put it: “The energy industry is leading investment in alternative energy.”
Developing Africa’s Energy
Very much taking Collins’ viewpoint into account, my input to the “Unlocking Value” panel – which had global representation - was to explain the criticality of investment in Africa’s energy industry.
The development of its hydrocarbon industry will in turn facilitate and stimulate the development of its renewable energy industry, whilst also taking advantage of the lessons learned and technological developments which will allow the continent to produce in as low-carbon a manner as seen so far.
However, that aside, one of the key points I discussed, which never fails to astound me is that the western world seems to think that the development of Africa’s energy industry is up for discussion: it’s not. In fact, it’s not our debate to have. The continent must be allowed to develop its natural resources (renewables included), and it’s up to those regions who have already reaped the benefits to engage constructively to ensure that it is not only commercially, but environmentally, successful.
Communicating an Attractive Investment Proposition
Africa in competing with many other energy regions for investment, and whilst Namibia is widely regarded as having reinvigorated E&P on both sides of the Atlantic, I believe there is still an urgent need to streamline communication to the investors.
At Frontier, we’re well versed in the importance of communicating this type of information. We work with African governments and regulators to create global promotional strategies which ensure all relevant licensing round documentation is transparent and readily available, enabling exploration teams and investors to quickly evaluate the opportunities and putting the investment proposition into clear focus in a global market place.
Fundamentally, we’re helping to shift up the rhetoric on investment in Africa’s energy industry. Attractive fiscal and regulatory terms are the basis, of course, but our track record in promoting licensing rounds, and the results that have been achieved by clear, strategic communication speak for themselves.
Taking the Plan One Step Further
That emphasis on clear communication as a means towards attracting investment, was reinforced by the discussion around the wisdom of energy master planning. This process should be a fundamental for any region developing its energy offering and one which was discussed in detail with several African governments at our Africa Energies Summit earlier this year.
By creating a clear regulatory and investor framework, which details all types of energy opportunities, African countries have a far greater potential to attract investment. Integrated energy planning, which makes the lines of communication for each aspect clear, will help investors to understand that country’s complete energy picture, making decisions faster and easier.
Longer Term Input
When that decision to invest has been made, the importance of local content cannot be underestimated. Traditionally, the industry sees that as training the energy workforce and of course, that’s a key part of the process. However, Bill Langin of Shell made the highly relevant point that there is so much more to local content strategy that a transfer of skills. It’s about investing in the region’s infrastructure, so that after the wells are drilled the local communities continue to benefit in the much longer term. Something I – and the whole Frontier team – very much agree with, seeing for ourselves the impact of our support on a small children’s charity in Zimbabwe, Gogo Olive.
“Driving the Future of Energy’
This was the title of EnerGeo’ 23 and how very apt. The agenda – much like the EnerGeo Alliance itself – was designed to change perception and debunk some of the myths around the energy industry. Hats off to EnerGeo Alliance's President, Nikki Martin, for such inspiring work
As far as I’m concerned, the conference achieved objective and so much more, giving me the food for thought which I’ve shared here, and inspiring me to keep Frontier Energy Network doing what it does best – turning the dial on energy conversations across the globe to ensure a safe, sustainable energy future for us all.
Gayle with Nikki Martin, President of the EnerGeo Alliance
