Upstream In Perspective

Global solar installations were expected to grow more than 30% in 2022 before COVID restrictions in mainland China impacted operations of the world’s largest solar manufacturer. S&P Global solar supply chain experts Siqi He and Cormac Gilligan join EnergyCents this week to discuss the importance of China to solar supply chains, and the potential impacts to 2022 expectations from curtailed manufacturing. Learn more about our solar coverage via Clean Energy Technology: https://ihsmarkit.com/products/clean-energy-technology.html and for financial sector customers via EnergyView – Climate and Cleantech: https://ihsmarkit.com/products/EnergyView-Climate-and-CleanTech-Service.html Access the On-Demand Webinar “Understand and maximize returns in energy transition investments from climate and cleantech fundamental data”: https://ihsmarkit.com/events/understand-and-maximize-returns-in-energy-transition-investments-from-climate-and-cleantech-fundamental-data/overview.html

Plug Power Inc., headquartered in Latham, N.Y. is working to build an “end-to-end green hydrogen ecosystem” with support from large customers and joint-venture partners that include Walmart, SK E&S, and Renault. Plug CEO Andy Marsh joins EnergyCents to describe the company’s evolution since its 1997 founding; discuss how JVs fit into his growth strategy; and offer thoughts on the direction of global hydrogen markets.

Global Upstream merger and acquisition activity increased in 2021 after pandemic-led uncertainty and a reset in the shale sector forced moderation in 2020. Upstream M&A Expert Chris Sheehan joins EnergyCents this week to review trends profiled in his annual Global Upstream M&A Review and Outlook report, and offer thoughts on why 2022 will be a “buyer’s market” as operators prioritize asset quality, cash flows, and often low-carbon ambition. Access the On-Demand Webinar Global Upstream M&A Review and Outlook 2022: https://ihsmarkit.com/events/on-demand-global-upstream-ma-review-and-outlook-webinar-series/overview.html?utm_campaign=PC022019&utm_medium=banner&utm_source=podcast. Learn more about our M&A Analysis and data through Companies and Transactions at https://ihsmarkit.com/products/energy-company-transaction-research.html.

Nearly 80% of the world’s potential offshore wind resources are in waters deeper than 60 meters or in waters with poor seabed conditions. These winds cannot be accessed by traditional bottom-fixed installations – and represent opportunity for nascent floating offshore wind projects. S&P Global Offshore Wind Expert Andrei Utkin joins EnergyCents this week to discuss the growing interest in floating offshore wind, and why we should be looking to Europe, the North Sea, and oil and gas majors for sector leadership. Learn more our offshore wind forecasts and advisory through Clean Energy Technology at https://ihsmarkit.com/products/clean-energy-technology.html and EnergyView – Climate and Cleantech at https://ihsmarkit.com/products/EnergyView-Climate-and-CleanTech-Service.html.

COVID restrictions and Russia sanctions upended seaborne trade patterns over the past several years and are now contributing to levels of consumer price inflation not seen in some 40 years. S&P Global’s Vice President of Maritime and Trade Rahul Kapoor joins EnergyCents this week to discuss changes in commodity shipping patterns observed since lockdowns froze global trade in early 2020, and identifies the current trends that may be testing the world’s economic resilience. Learn more about Commodities at Sea at https://ihsmarkit.com/products/commodities-at-sea.html. See more about our Energy Advisory Service at https://ihsmarkit.com/products/energy-advisory-service.html.

Many of the more than 1 billion people living in 49 sub-Saharan Africa countries are underserved by reliable electricity generation, leaving a massive opportunity for power-generation investment. However, the challenges – namely stimulating demand and designing the right business model – are equally large. S&P Global Experts on Electricity and Energy Storage Sylvia Macri and George Hilton join EnergyCents this week to discuss the state of power generation in Africa, and where to expect hurdles and enablers of wider electrification.

What a difference a year makes: energy equities are outperforming the broader stock market, and oil majors are well positioned in 2022 to return cash to shareholders via buybacks and dividends. IHS Markit Corporate Equity Analysts Lysle Brinker and Sam Hanna join EnergyCents this week to share the biggest learnings from recently completed earnings season, and how investors should consider the sector as we move deeper into 2022.

Vaca Muerta Shale play is the most important unconventional resource play outside North America. Over the last decade, it has seen significant improvements in productivity and costs, overcoming technical challenges by leveraging technologies and approaches employed in the US shale plays. The play is dominated by Argentine national oil company YPF and, although foreign IOCs are present there, aspects beyond typical ROI calculations make the full development of the play potential likely to relay on YPF and domestic and regional players to be achieved.

Western governments quickly responded to Russia’s late February invasion of Ukraine with economic sanctions to discourage further escalation of conflict and lessen what is already a humanitarian tragedy. Initial sanctions excluded Russia’s energy supply, though oil and gas markets still reflect scarcity amid uncertainty. S&P Global Expert on European Gas Laurent Ruseckas returns to EnergyCents this week to discuss the implications to European gas markets of Russia’s Ukrainian invasion and related sanctions, and how recent events may impact the continent’s longer term energy supply strategies. Hear more EnergyCents conversations with Laurent on European gas in prior episodes: • Autumn of discontent: Europe wrestles with spiking natural gas prices (November 2021)at https://soundcloud.com/ihsmarkitenergysolutions/energycents-ep-56-autumn-of-discontent-europe-wrestles-with-spiking-natural-gas-prices • The shape of gas to come: Pipes, politics, and the pursuit of European gas markets (April 2021)at https://sou

IHS Markit’s cleantech team released its “Top 10 clean technology trends in 2022” earlier this year, placing bets on the biggest expected movements across solar, battery, and other cleantech sectors. IHS Markit Vice President of Cleantech Eduard Sala de Vedruna joins EnergyCents this week to discuss four of the team’s top 10 predictions, as well as disclose his 11th prediction – which didn’t quite make it on this year’s short list. Download the report: https://ihsmarkit.com/Info/0122/cleanenergytechtrends2022.html.

Structural declines in fuel demand will lead to reduction in global refining capacity over the coming years and decades. Where then might lie opportunities for growth-directed investment? IHS Markit’s Head of Americas Refining Debnil Chowdhury joins EnergyCents this week to consider the changing incentives of Downstream executives, the opportunity for biofuels with aircraft, and the prospects for traditional fuel demand in emerging markets.

Global Engineering, Procurement, Construction (EPC) firms have long embraced project-management opportunities with partners in oil and gas, particularly when it comes to complex offshore projects. However, the pipeline of opportunities is changing as the energy sector prioritizes low-carbon initiatives. Offshore Supply Chain Expert Ding Li Ang join to EnergyCents this week to discuss how EPC firms are evolving as the definition of energy changes, and where lie some of the biggest challenges and opportunities for established firms.

Before the pandemic, more than 25% of vehicle miles traveled in the United States came from commuting. Professionals are now working from home some, or all, of every week. Should we expect proportionate declines in fuel demand, and extensions of automobile lifespans? Mobility Experts Fellipe Balieiro and Todd Campau join to EnergyCents this week to discuss how social-distancing protocol led to structural change in American transportation, and whether the loss of commutes and rise of EVs is actually reducing fuel use.

Battery and hydrogen technologies have emerged as two of the highest profile ideas to lower the world’s carbon emissions. Battery technology is further along in many ways, though hydrogen has momentum thanks to enthusiastic support from governments, investors, and even traditional energy providers. Cleantech Experts Sam Wilkinson and Alex Klaessig return to EnergyCents this week to discuss the potential applications of each technology, and whether we should consider them rivals or collaborators in the race for cleantech capital.

Asian countries will generate about 70% of the world’s electricity demand growth between 2021 and 2025. And most of these markets are on track to fall short of stated net-zero targets due to lack of investment in renewables. IHS Markit Power Experts Chad Singleton and Vince Heo join EnergyCents this week to discuss the gap between certain countries’ net-zero ambition and net-zero funding, and what catalysts could unlock additional investment.

There’s a degree of consensus from financial prognosticators that energy equities from both the low-carbon and traditional sectors will outperform in 2022. IHS Markit Experts in capital and energy markets Chris Fenske, Peter Gardett, and Karim Fawaz join EnergyCents this week to discuss the operating environments behind the equity enthusiasm, and whether the start-of-year set up can meet investor expectations.

Oil and gas producers made headlines in 2021 selling “net-zero oil” thanks to the purchase of carbon offset credits to mitigate Scope 1 and Scope 2 emissions associated with bringing that oil to market. IHS Markit Upstream emissions experts Kevin Birn and Raoul LeBlanc join EnergyCents to discuss the upstream sector’s emissions-management strategies, and how we should expect the trend to evolve.

EnergyCents welcomes back IHS Markit shale sector experts Reed Olmstead and David Vaucher for our annual year-in-review episode. We check in to see how well we performed against personal resolutions in 2021, make new resolutions for 2022, and share predictions on how the shale sector will evolve in the coming year.

After months of high expectations, the UN conference COP26 concluded in November and left many climate enthusiasts wishing there had been more substantial policy successes. There are reasons for optimism, however, including a surprise agreement on carbon offset trading provisions. EnergyCents welcomes IHS Markit climate and finance experts Peter Gardett, Paul McConnell, and Roger Diwan in this special edition episode that opens our listeners to an “Investing in Energy” client webinar where the speakers share their immediate reactions to the event, and highlight the most significant implications that bear watching over the coming months and years.

Oil markets find themselves at the intersection of fear and greed with supply concerns and fear-of-missing-out enthusiasm pushing prices into a higher band for 2021 and 2022. EnergyCents welcomes back oil markets expert Karim Fawaz to discuss reasons for the step change in oil price support, and where he sees markets trending over the coming months.