Rystad Presentation "Turbulence and Transition"
We were pleased to host Audun Martisen, Partner & Head of Energy Service Research for Rystad Energy. Audun’s presentation, held virtually on May 11, was entitled Turbulence and Transition. He began by providing a global context of the energy supply and demand balances, and how the transition to renewable sources is impacting the sector, then focused on the business in Argentina. Key takeaways included the following:
• A high degree of uncertainty exists in forecasting future oil demand;
• The move by many companies to low-carbon alternatives is causing a drop in global exploration and greenfield project development investments;
• Vaca Muerta’s share of the country’s oil production has grown to 65%;
• Over the next four years a growing share of the region’s oil production will be coming from Argentina and Brazil;
• During that timeframe there is anticipated growth in Argentina’s service sector, primarily in well service, drilling tools and commodities, maintenance, and operational and professional services;
• Over the last two years share prices for service companies in the renewables sector have outperformed those in the oilfield sector.
• Opportunities in Argentina within the E&P sector include services to reduce routine flaring / venting of natural gas, improving operational efficiency, and digitalization. Outside the sector, they include hydrogen creation / transportation, carbon capture and sequestration (CCS).
An abbreviated version of Audun’s presentation is available on the IAPGH website. It includes contact information should you wish to obtain the full set of slides. A video of the presentation was also made available to those who registered.