Energy Future: Where is the Industry Moving and What Will it Take to Stay Competitive in the Future

Panel moderated by Alix Steele, Bloomberg

What’s the number one thing you’re doing in your business in the middle of this energy transition?

Mr. Geagea said that Chevron’s priorities are to be the lowest-cost supplier, to lower the carbon footprint of its operations, and to invest in renewables and technology. Mr. Brekelmans said that providing customers with ever-cleaner energy choice is a focus at Shell. He added that the carbon competitiveness of the entire supply chain must be considered, as well as the suite of products that you’re delivering. For Mr. Sultan, cost efficiency was the most important thing, including the cost of any activity in renewables. He believed that cost and efficiency are greatly dependent on service companies because they are typically more advanced in research and technology. Mr. Breuillac added that the industry must recognize that it’s part of the problem and therefore needs to be part of the solution. He emphasized the need for them to perform better at what they can control, such as reducing emissions from operations, which is at the forefront of Total’s priorities. Mr. Bayon agreed that emissions must be a key focus, but added that the industry needs to be more proactive and transparent, and be part of the solution not only to energy transition, but to helping people worldwide get out of poverty and have access to energy.

Reducing your own emissions, diversifying your portfolio with renewables, reducing your costs, and honoring your shareholders—can you actually do all four things?

The panelists all agreed that it was certainly possible, noting that the industry has a long hisotry of embracing challenges and change. Keenly focused on the environmental side of things, they also emphasizsed that no solution could come from them alone—but that governments, policy makers, customers, and individuals all had to contribute to reducing emissions and energy consumption.

Do you ever see your company as being less oil and more of something else?

Mr. Brekelmans pointed out that, although the five companies represented on stage are often generalized as being the same, they are actually very different when you look at the details, and that they have all changed in various ways over time. He views Shell as an energy company that wants to remain relevant whatever the future brings. He spoke of natural gas as an example of the company’s and industry’s ability to adapt, saying that what was thought impossible 40 or 50 years ago was embraced, and has grown into something very valuable.

How do digital and AI play into this? What’s your company’s strategy?

Mr. Sultan said that the service companies play a big role in that aspect because they are investing in the capabilities and intelligence to maximize the value of data. So it’s a matter of going to the right service companies and tailoring their capabilities to suit your needs. Mr. Breuillac felt that most companies are under-estimating digital in terms of what it can bring to operations, and that the industry is just scratching the surface of what’s possible. He said Total is being very pragmatic because they understand that it requires a lot of time and investment. Mr. Bayon gave the example of refinery engineers looking at throughput pressures and temperatures, while seeing the real-time dollar impact on the same screen. He said that digital has elimitated the separation between the operation and the outcomes, and he wonders about adapting similar tools for emissions.