Petrotech 2019 – CEO Conclave : Shaping the new Energy world
CEO Conclave, marque session of the Petrotech conference was moderated by A.T. Kearney’s Global Managing Partner Mr. Alex Liu, and brought together distinguished panelists that included Dr. M.M. Kutty (Secretary, Ministry of Petroleum & Natural Gas), Mr. Shashi Shankar, (CMD, ONGC), Sheikh Khalid Bin Khalifa Bin Jassim Al-Thani, (CEO, Qatar Gas), Mr. Sanjiv Singh, (Chairman, IOCL), Mr. B.C Tripathi, (Chairman and Managing Director, GAIL), and Mr. Subramanian Sarma, CEO & MD, L&T Hydrocarbon Engineering Ltd.
Panelists during the CEO ConclaveThe panel thus represented the entire value chain from policy makers, to CEOs of companies across Upstream, Midstream and Downstream, as well as Service Providers. The panel discussed the role their organizations are playing in “Shaping the New Energy World”, and how are they getting equipped for this journey. The panel aligned on the fact that Energy Transition is a worldwide phenomenon, resulting in emergence of a new energy system, impacting both the demand (for cleaner & cheaper) and supply (cleaner fuel, decentralized). This evolution is creating opportunities and challenges for stakeholders across the energy value chain. Mr. Kutty highlighted that India has a global commitment as a responsible energy consumer to adopt sustainable energy systems. He emphasized that vision of Hon’ble Prime Minister for India’s energy future in the form of four pillars—access, efficiency, sustainability and security capture the essence of India’s commitment to drive and benefit from the Energy Transition. He also discussed the key policy measures that GOI had undertaken to achieve the energy objectives (HELP, OALP, DSF rounds, National Policy of Biofuels etc.). Mr. Shanker described the continuing importance of Oil in India’s energy mix. He described the role of ONGC in identifying new frontiers in Deep water exploration, gas hydrates, shale etc. to move towards energy security. He also shared the beginnings that ONGC is making on renewable energy as well, recognizing the importance of clean tech. Mr. Singh shared his vision for India to move towards sustainability and address the climate change imperatives. He identified the mega trends driving the transition including Mobility, Efficiency (IC engine improvements, building etc.), affordable future. He also highlighted IOC’s role in developing innovative solutions including hydrogen injected CNG buses, biofuels, gas to ethanol etc. All panelists recognized role of gas in achieving clean energy targets, as a balance to renewable energy. Mr Tripathi highlighted that the significant disruption will come from the transportation sector, which will get impacted by both gas and advanced mobility. Mr. Al-Thani recommended that India focus on 1.) developing infrastructure to provide access to clean fossil fuel to everyone 2.) regulation / policy measures to stimulate demand, 3.) accept LNG as a part of mixed fuel. Mr. Sarma highlighted that the service providers have a role to drive innovation for their clients. Clients and service providers need to join hands for discontinuous adoption of digitalization and to realize economic and efficiency gains. Mr. Liu concluded that • The energy sector is going to welcome a new era of collaborative growth, with disruptive changes across the value chain • The end consumers will drive these changes significantly more than before, be it adoption of e-vehicles or alternative / green energy solutions. The greater this adoption, the more significant its impact to this sector • Leaders of the industry will need to future-proof their business models that not only make business profitable while addressing the demand in the short-term, but also factor in climate change, energy security & social acceptance for continued success & growth.