Upstream In Perspective

Following a year of surprises, IHS Markit Research Directors Doug Giuffre, Wade Shafer, and Patrick Luckow, discuss the learnings to be gained from 2020 power markets and disclose their 2021 things to watch, or not, list.

IHS Markit Upstream Research Directors Reed Olmstead and David Vaucher return to review the accuracy of their 2020 predictions for the Upstream sector, and share new predictions for the coming new year. We also quiz Reed and David on their favorite pop-culture hits of 2020 in this year-end episode. Send your questions and comments to us via email to energycents@ihsmarkit.com.

Upstream oil & gas companies face increasingly complex strategic decisions as they seek to meet growing energy demand while at the same time maintaining capital discipline, reducing emissions and meeting investor expectations amid the energy transition. How are upstream companies responding to this challenge? Portfolio investments, adoption of new innovations and the digital transformation are all crucial factors in this ecosystem of changing energy demands and sources. Hear more about the digital transformation within upstream energy at www.ihsmarkit.com/dx.

ExxonMobil announced plans in November to focus its upstream attention on three core growth positions in the US Permian Basin, Guyana, and Brazil. Tony Reinsch, IHS Markit senior advisor, shares his views on the announcement and what a concentration of growth from select basins and dominant operators means for the future of the Upstream sector. Send your comments or questions to our podcast team at energycents@ihsmarkit.com.

With a rapid acceleration of countries around the world announcing net-zero targets, the conversation livens around which technologies will support these ambitions. Governments, utilities, and traditional energy players are all seemingly potential players in the rise of hydrogen, which provides a good foundation for the commodity becoming a great disruptor. Please listen to Catherine Robinson, IHS Markit’s Head of low-carbon gas research, give her take on how hydrogen fits into the energy future. Send your comments or questions to our team at energycents@ihsmarkit.com.

The past two US presidencies have overseen surges in domestic oil production, market-share declines for coal, and exponential leaps in renewable technologies. How might the domestic energy landscape change under a Biden administration? IHS Markit Principal Analyst Justin Jacobs rejoins EnergyCents this week to share his views on the incoming administration’s energy priorities, the realities of those priorities, and how they may shape, or reshape, energy-investor portfolios. Send your comments or feedback to our team: energycents@ihsmarkit.com.

Electric vehicles are emerging as an increasingly pivotal part of a more carbon conscious future. Fellipe Balieiro, who leads our Mobility and Energy Future service, joins EnergyCents this week to discuss how surging investment in EV technologies and expanded government policies are driving the industry’s evolution globally. Send your comments and questions to us via email at energycents@ihsmarkit.com.

LNG markets are at a crossroads as oil producers remain under pressure, and political and financial support shifts toward lowest carbon alternative energies. IHS Markit Vice Presidents Michael Stoppard and Roger Diwan join EnergyCents this week to consider the players driving both markets, and the significance of recent events to the future of each market. Send us your comments or questions by emailing energycents@ihsmarkit.com.

Upstream digitalization continues to make progress and accelerate but companies are struggling to deliver their goals of data democracy which is crucial to getting value from all available content and driving new workflows. In this installment, we explore the essential steps of ultimate data discoverability and accessibility and think about when the upstream industry might achieve these key stages of digital transformation. Send us your comments or questions at www.ihsmarkit.com/upstreampodcast.

Many of the Oil and Gas industry’s largest companies are charting very different futures dependent on how each prioritizes low-carbon projects within their respective portfolios. Chris DeLucia, of IHS Markit’s Companies & Transactions research team, joins EnergyCents this week to share his views on the strategic imperatives shaping these companies, and what it means for a transitioning sector going forward. Have a question or topic idea? Submit it to our team at energycents@ihsmarkit.com.

Chinese President Xi Jinping announced in September 2020 that China will strive to achieve net carbon neutrality by 2060. China is the world’s largest emitter of carbon globally, making the implications huge for the world’s environment, the economy, and the energy sector. Xizhou Zhou, IHS Markit Vice President of Power and Renewables, joins the podcast this week to share his views on the announcement and outlook for its implementation. Send your comments, feedback or questions to our team at energycents@ihsmarkit.com.

Oil prices have hovered around $40/bbl for several weeks after extreme volatility led to negative prices in April 2020. Investors are watching OPEC+, the potential resiliency of North America shale, and a US presidential election for signs of what to expect from oil markets in 2021. Karim Fawaz and Raoul Leblanc return to EnergyCents this week to share their views on what to watch for.

The business round table statement from last year explicitly said that all companies should have a social purpose, not just the purpose of generating profits. The discussion cannot be ignored and ESG has emerged as an increasingly integral aspect of valuations. This prioritization has the potential to present as either a threat or opportunity to companies, energy companies in particular. A threat to those not adapting to it, and an opportunity for those who seize upon it. In this podcast we discuss emergent ESG trends and specific implications within the energy industry with Brian Matt and Roger Diwan.

California is viewed by many as the vanguard of a greening power sector, but hot summer weather forced CAISO's first stage three emergency since 2001. In part two of our conversation, we continue to discuss potential lessons from California’s experience with IHS Markit power experts, Wade Shafer and Doug Giuffre, including the future of batteries and new infrastructure projects.

For years, oil and gas companies have implemented technologies to move their businesses forward - increase efficiency, prioritize safety and lower costs - as part of the energy transition. This year COVID-19 accelerated that for many companies. So, where are energy companies in this transition? Our upstream technology and innovation research team joins the podcast to discuss. Have feedback or a question? Send it to us at www.ihsmarkit.com/upstreampodcast.

Hot summer weather compelled the California Independent System Operator (CAISO) to impose blackouts on several hundred thousand customers in the middle of August 2020. These events marked CAISO’s first “Stage 3 Emergency” since the 2001 Energy crisis, and have attracted widespread attention as California is viewed by many as the vanguard of a greening power sector. In this two-part episode, we discuss potential lessons from California’s experience with IHS Markit power experts, Wade Shafer and Doug Giuffre.

After years of struggling, Guyana's oil and gas industry found success in 2015 with the Liza discovery. Since that discovery, the success rate continued - leading to more growth and spreading to Suriname. Our experts join the podcast to discuss the exploration and discovery process and what might be ahead. Have a question or topic you want our team to cover? Submit to us at www.ihsmarkit.com/upstreampodcast.

In part 2 of our conversation on scenario planning, Dr. Steven Knell walks through the various climate scenarios with our team. Join us as we finish the discussion of how COVID-19 has impacted the energy transition.

A global pandemic in 2020 introduced new variables to the potential timing and implications of a transitioning energy sector that increasingly prioritizes climate-change mitigation. In part one of a two-part topic, we discuss the value of scenario planning for uncertain futures and how COVID-19 has changed our experts’ expectations and assumptions.

The 2020 confluence of $0 commissions, stock-market volatility, and stay-at-home restrictions has led to a rising presence of retail investors in energy stocks. In this episode, we discuss reasons for the trend, and expectations going forward.