Kelvin Bowoto
The Nigerian National Petroleum Company (NNPC) Limited will attend one of the world’s largest energy conferences in Houston this week, buoyed by blockbuster mergers, stable oil prices, and less pressure for a large-scale transition to clean fuels.
Mele Kyari, GCEO of NNPC Ltd., will lead the plenary session titled “Leadership Dialogue” during the annual strategy conference on Tuesday, March 19th, 2024. Mrs. Oritsemeyiwa Eyesan, Executive Vice President, Upstream of NNPC Ltd., will also speak at a plenary session titled “What are the Options for Upstream Strategies?” on the same day.
Mr. Olalekan Ogunleye, Executive Vice President of Gas, Power, and New Energy, will be a panelist on a Strategic Dialogue Session on ‘Africa’s Energy Future: Access, Investment, and Sustainability’ on Wednesday, March 20th, 2024.
CERAWeek is one of the world’s major energy conferences, bringing thousands of top global energy industry professionals and a slew of other corporate and government executives to Houston, United States, each year for a week-long discussion about the energy future.
S&P Global organized the conference, which has evolved in recent years to accommodate new energy technology and climate challenges. The 2024 conference is projected to draw attendees from 90 nations and feature 1,400 speakers.
Under the theme ‘Multidimensional Energy Transition: Markets, Climate, Technology, and Geopolitics,’ the CERAWeek 2024 will explore’strategies for a multidimensional, multispeed, and multifuel energy transition,’ as the global energy industry tries to respond to and offer insight into, growing demand for emissions reductions and moving toward cleaner forms of energy.
Meanwhile, despite the war in Eastern Europe and the chaos in the Middle East, global oil prices have maintained a range of $75 to $85 per barrel, boosting profits but not slowing economic development. The stock market continues to drive transactions, making Big Oil even bigger.
The annual CERAWeek conference coincides with an increase in demand for oil and gas, as well as solar, wind, and biofuels. Energy markets have accepted a reordering of global flows as clients shift to regional energy providers or accept longer seaborne supply chains.
“A remarkable thing is the price stability, given the geopolitical turmoil,” said Daniel Yergin, vice chairman of conference organizer S&P Global and Pulitzer Prize-winning author on global energy.
“Unlike past conferences where conversations were dominated by market-share battles between U.S. shale oil producers and the Organization of the Petroleum Exporting Countries, talk of price wars has been supplanted by energy security issues,” he said.
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“When demand was down and prices were down, it was very easy to see a way towards energy transition, but with Russia/Ukraine (the war) and price shocks, energy security is back on the table,” he said.
More than 7,200 attendees are expected to hear the latest energy market prognosis from the presidents of major producers BP, Chevron, Exxon Mobil, Saudi Aramco, Sinopec, and Petronas.
Global liquefied natural gas (LNG) developments and U.S. climate policy will be significant topics in separate sessions by major exporters Cheniere Energy and Venture Global LNG, while U.S. Energy Secretary Jennifer Granholm and White House adviser John Podesta will push the administration’s climate ambitions.
While oil prices remain high, a production surplus has overwhelmed natural gas. However, “this year will be a transition year to a much more bullish gas and power market next year,” said Vikas Dwivedi, an energy strategist at the banking firm Macquarie Group.
Top oil ministers from Saudi Arabia, Kuwait, and Iraq are noticeably absent this year, which coincides with the Islamic holy month of Ramadan. No Russian officials are expected since they did not attend last year.
OPEC’s absence comes as global oil prices stay around $85 per barrel, a figure that Dwivedi says helps fund its members’ budgets but does not speed the switch to electric vehicles and renewable fuels.
OPEC predicts relatively high oil demand and economic development, which stimulates increased oil and gas activities and mergers. Last year’s more than $250 billion in U.S. energy mergers raised concerns about concentration and a stalling of regulatory approvals.
Climate concerns are reflected in conference sessions on carbon sequestration technology and hydrogen fuels, which have become two of the oil industry’s preferred methods of combating global warming. This year’s key sessions focus on the role of artificial intelligence in energy production and carbon emissions.
The willingness of energy customers to pay more for clean fuels or new technology to reduce emissions “is a growing issue, as is the ability of energy companies to generate an adequate return on investment,” said Joe Scalise, head of energy and natural resources at consultancy Bain & Co.
The ups and downs of U.S. shale, which revolutionized energy markets and transformed the United States into the world’s leading oil producer and exporter, have been a regular topic at the CERAWeek conference over the past decade.
Chevron, ConocoPhillips, and Exxon Mobil will become the major producers in the top U.S. shale area this year after acquiring each other. This move has the potential to manage what was previously a wildcard in global oil output. Big Oil’s investments and production practices may stabilize shale’s hyper-boom-bust cycles.
Techrectory with Agency Report.
