Roundtable Discussion; The Future of Mineral Sands. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

REFILE-UPDATE 1-Pandemic's "great reset" pushes energy firms toward renewables, hydrogen - execs

Tue, 15th Sep 2020 10:19

(Corrects to remove extraneous letters in tag line)

* Petronas re-thinks portfolio after "great reset"

* Shell still sees "huge future" in hydrocarbons

* Vitol calls on energy industry to invest more in CCS

* Carbon pricing key for CCS to take off - Citi

By Florence Tan and Chen Aizhu

SINGAPORE, Sept 15 (Reuters) - The economic trauma caused by
the coronavirus pandemic has pushed energy companies to step-up
investment in renewables, hydrogen and other low carbon
alternatives, but fossil fuels will be their dominant business
for the foreseeable future, industry executives said.

Reeling from the onset of the pandemic, global oil
consumption shrank by more than 20% in the second quarter and
prices hit their lowest in decades, making companies rethink how
fast they should make the transition away from reliance on oil
and gas.

"Everyone's talking about this great reset ... What do we
need to do to survive this?" Arif Mahmood, Petronas' executive
vice president and CEO of downstream, said at the virtual Platts
APPEC 2020.

"Energy transition will be pushed forward much faster," he
concluded.

The Malaysian state energy company posted a $5 billion loss
in April-June and has set up a team to reshape its portfolio and
expand in solar and wind for power generation.

Malaysia is the world's fourth largest exporter of liquefied
natural gas, and Petronas would maintain its "gas agenda", Arif
said, noting that the company was about to begin operations at a
second floating LNG plant in Malaysia, and it was also working
on an LNG joint venture in Canada.

Oil majors such as BP have set ambitious targets
while Chinese state energy companies tiptoed into renewables as
they continue to prioritize hydrocarbons for China's energy
security needs.

Besides expanding into solar and wind for power generation,
more energy companies are researching blue hydrogen produced
from natural gas and using carbon capture and storage (CCS) to
reduce emissions in the process. The hydrogen could be used in
power plants and fuel cell vehicles.

Royal Dutch Shell is involved in biomethane,
biofuels and hydrogen and has done "significant work" on CCS as
the energy major strikes a balance between energy transition and
its core hydrocarbons business, Mark Quartermain, Shell's vice
president of crude trading & supply, told the conference.

"We've got to make sure we don't ignore the fact that oil
and gas are going to remain essential fossil fuels," Quartmain
said, before adding that going forward there will greater focus
on climate change and energy transition.

"When it comes to energy transition we need to be in these
markets," Quartermain said.

Heads of research at commodity trader Vitol and Citigroup
expect CCS to be the next key area of development.

"Hydrogen and carbon capture are more likely in short term
to be contributing to decarbonization," Giovanni Serio, Vitol's
global head of research, said, calling on the industry to invest
more in CCS.

"Some countries are finding ways through credit systems and
other mechanisms to price carbons...It's what's really needed
for carbon capture to take off," Ed Morse, managing director and
global head of commodities research at Citigroup said.

However, "the cost structure of hydrogen is just not
competitive enough...it's there but it could be end of the
decade phenomenon," Morse said.

In the refining and petrochemical sectors, companies are
exploring biofuels, producing chemicals for products that are
more widely used in the pandemic such as gloves and for
recyclable materials, industry executives said at APPEC.
(Reporting by Florence Tan, Chen Aizhu and Koustav Samanta;
Editing by Simon Cameron-Moore)

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

Read more
21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

Read more
15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, part of an ongoing retreat of long-time producers from the ageing basin.

Read more
7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating the firm was "on a roll".

Read more
31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Read more
31 Jan 2022 07:48

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

Read more
28 Jan 2022 11:25

Shell's renewables boss steps down after less than two years

* Elisabeth Brinton leaves for new role, she says* Shell creates two new renewables leadership roles* Thomas Brostrøm to head renewables generation* Steve Hill to head energy marketingBy Ron BoussoLONDON, Jan 28 (Reuters) - Shell's head of renewable...

Read more
27 Jan 2022 16:14

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

Read more
26 Jan 2022 17:02

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

Read more
26 Jan 2022 14:36

China's Sinopec awards fewer cargoes in recent LNG tender

By Chen Aizhu and Marwa RashadSINGAPORE/LONDON, Jan 26 (Reuters) - Unipec, the oil and gas trading arm of China's Sinopec Corp has awarded fewer-than-planned cargoes in a recent tender to sell up to 45 cargoes of liquefied natural gas for 2022 del...

Read more
26 Jan 2022 12:16

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

Read more
26 Jan 2022 09:33

UPDATE 2-Commodity, bank stocks lead FTSE 100 higher; Playtech drops

* Oil and banking shares top gainers* Wizz Air reports Q3 loss, expects improvement in spring* FTSE 100 up 1.3%, FTSE 250 add 1.1% (Updates to market close)By Shashank Nayar and Ambar WarrickJan 26 (Reuters) - London's FTSE 100 rose on Wednesday wit...

Read more
26 Jan 2022 09:12

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

Read more
25 Jan 2022 21:13

UPDATE 1-U.S. awards 13 mln barrel exchange of crude from strategic reserve

(Adds details on sale, background on 50 million barrel SPR plan)WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to ...

Read more
25 Jan 2022 20:10

U.S. awards exchange of 13 mln barrels of crude from strategic reserve

WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to seven companies.The companies are Shell Trading US, 4.2 million ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.