EnergyCents

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.

European natural gas prices have more than tripled in 2021 on the back of a post-Covid demand surge that has far outpaced supply – and all before the beginning of winter, when seasonal demand is highest. IHS Markit's Laurent Ruseckas, an expert in European gas markets, returns to EnergyCents this week to assess the current European gas crunch, and share his views on the potential timing and mechanisms of resolution.

The Chinese saying, 摸着石头过河, translates roughly in English to "touching the stones to cross the river" and describes the need to embrace an often-indirect path to reach a known destination. The saying is relevant this autumn as planners look to the other side of a power shortage affecting more than two-thirds of China's provinces. IHS Markit's Jenny Yang and Lara Dong, both experts China gas and power markets, join EnergyCents this week to discuss what's led to the current shortage of electricity in China, and how we should expect the situation to evolve as planners prepare for a seasonal increase in demand.

Transitioning United States power and gas markets to a net-zero economy requires coordinate policy and infrastructure strategies that don't neglect practicalities of implementation. IHS Markit power experts Xizhou Zhou and Wade Shafer join EnergyCents this week to discuss potential tightness in US gas and power markets as 2021 winter approaches, and how what happens in the near-term may shape long-term plans for gas and power infrastructure – a research focus of their upcoming study, "New Configurations: America's Gas and Power in Net Zero". More information on how to join the New Configurations study: https://ihsmarkit.com/products/new-configurations-america-gas-power-net-zero.html. Ask our experts a question or book 1-1 time: https://experts.ihsmarkit.com/home.

Competition within the Canadian oil sands has concentrated among a few specialists as carbon-concerns contribute to divestments from more diversified players. IHS Markit's Kevin Birn, an expert in emissions and Canadian oil markets, joins EnergyCents this week to share what is a stable outlook for oil sands production, and consider how we should view play's future as climate concerns increasingly influence energy markets. Ask Kevin a question or book 1-1 time with him: https://experts.ihsmarkit.com/experts/birn-kevin.

The climate-policy arena shifts in November to COP26 in Glasgow, Scotland, after a closely watched UN General Assembly session in New York this September that included high-profile participation by government leaders, and even Korean pop sensation, BTS. IHS Markit experts in climate policy and finance Peter Gardett and Conway Irwin return to EnergyCents this week to discuss how diplomacy will meet markets at COP26, and which diplomatic alliances bear watching. Download the report, "Diplomacy meets markets," at https://ihsmarkit.com/Info/0921/road-to-cop26-alliances.html Ask our energy experts a question: http://ihsmark.it/LweK50GjxwM

Brazil's presalt is a world-class resource play that is becoming a core region for several major operators. Nevertheless, challenges remain, namely Brazil's political dynamics, recent exploratory results indicating more gas than oil, and the ongoing energy transition. We hope you enjoy this discussion with our experts Fernanda Machado and Tony Reinsch as they share their detailed knowledge about this substantial resource play. Ask our experts a question or book 1-1 time with them at https://experts.ihsmarkit.com.

Investors, disruptive start-ups and original equipment manufacturers (OEMs) are hunting for the points of competitive differentiation that will drive the future of automotive mobility. The result is a tangled web of battery innovation, retooled-automotive manufacturing, charging-network footprints, and brand-equity promotions. IHS Markit Automotive expert Graham Evans joins EnergyCents this week to help us sort out the competitive environment for electric vehicles, and to consider the various business models' contingencies and enablers. Ask Graham a question or book 1-1 time with him: https://experts.ihsmarkit.com/experts/evans-graham. Send us your comments and questions by emailing [email protected]. Hear more from Graham in IHS Markit's automotive-focused podcast, Autology: https://soundcloud.com/ihsmarkit-autology.

Not all fossil fuels are created equal, and natural gas holds some advantage relative to its carbon-moleculed peers as climate ambition influences global energy policy. IHS Markit Vice Presidents of Climate and Sustainability Michael Stoppard and Shankari Srinivasan join EnergyCents this week to discuss how gas can contribute to a net-zero transition, and other recent findings from their recent study, A Sustainable Flame: The role of gas in net zero. Find the study at: https://ihsmarkit.com/Info/0721/sustainable-flame.html Book time with an expert or ask them a question: https://experts.ihsmarkit.com/home

Upstream Capital Cost Service (UCCS) Discussions is a new addition to the Upstream in Perspective podcast. In these conversations, analysts from the UCCS will discuss some highlights from their latest research. The September 2021 podcast centers around the large price gain that we have seen in the Upstream Capital Cost index. The markets driving this change were steel, bulk materials, and equipment. In this episode, Upstream Cost & Technology experts Sheila Moore, Basel Asmar, Jeff Otten, and Jeff Nitto will discuss changes they have seen in those markets and what challenges the industry might face in the future. Book time with our experts at experts.ihsmarkit.com.

Low-carbon investment by oil majors has historically generated lower volatility and lower returns relative to capital directed at oil and gas projects. How will further decarbonization pressures influence the portfolio choices and returns expectations of the world's largest traditional energy companies? EnergyCents welcomes back IHS Markit Research Director Chris DeLucia, an expert in oil and gas portfolio strategy, this week to share results of his recent analysis of oil majors' sector-specific returns, and what to expect in the future as firms balance climate and financial goals. Book 1-1 time with Chris: https://experts.ihsmarkit.com/experts/delucia-chris Ask our energy experts a question: http://ihsmark.it/uwhF50G5PGa

Carbon, Capture, Utilization, and Sequestration projects, or CCUS, involve well-established technologies that have yet to reach the commercial scale to adequately mitigate global emissions. And the sector is now undergoing a period of innovation and investment amid recognition that a viable CCUS business model will be key to firms and governments realizing net-zero ambition. IHS Markit CCUS expert Paola Perez Pena joins EnergyCents this week to discuss the differences in Carbon Sequestration technologies, and highlight the potential catalysts and timeline for its realizing its commercial opportunity.

Global majors began expanding the footprint of their fuel retail stations in 2017 after more than a decade of site reductions. What explains this renewed enthusiasm for branded retail? IHS Markit Director Rob Smith, an expert in global fuel retail, joins EnergyCents this week to describe the changing role of fuel retail in a major's downstream portfolio as consumers redefine their expectations of automotive mobility. Ask Rob a question or book 1-1 time with him: https://experts.ihsmarkit.com/experts/smith-rob Send us your comments or feedback: [email protected].

The role of upstream exploration is changing as oil and gas companies prepare for growth in a lower-carbon business environment. IHS Markit Chief Upstream Strategist Bob Fryklund joins EnergyCents this week to discuss recent exploration success and trends, and consider the changing role of the business in energy-company portfolios. Ask Bob a question, or book 1-1 time: https://experts.ihsmarkit.com/experts/fryklund-bob Send us your feedback or topics you'd like us to address in the future: [email protected].

Californians approach the anniversary of 2020's unexpected blackouts during a year that has already seen extreme-weather events impact residents of Texas (winter cold) and the Pacific Northwest (summer heat). What should we expect as we enter August, often the hottest month of a U.S. summer? IHS Markit North American power experts Chad Singleton and Sam Huntington join EnergyCents this week to discuss recent lessons learned by system operators, and how investors should consider power systems' extreme-weather preparation amid the prioritization of reliable, clean, and affordable electricity. Ask Sam a question or book 1-1 time: https://experts.ihsmarkit.com/experts/huntington-sam

A sense of urgency will define the proceedings at the United Nations' 26th Conference of the Parties (COP26) this coming November. Policy makers and private-sector participants will look to take action in addressing, what are increasingly viewed as serious, threats from climate change. IHS Markit energy-capital transition experts Conway Irwin and Peter Gardett join EnergyCents this week to frame the importance of COP26, and discuss how outcomes from the event may influence capital flows as energy- and climate-policy converge. Send us your comments or question: [email protected]

Global investment in biofuels continues to ramp up as the refining sector optimizes its portfolio beyond traditional fossil fuels. IHS Markit biofuels experts Christoph Berg, Jordan Godwin, and Kevin Lindemer join EnergyCents this week to discuss the rise in biofuels investment, and share their thoughts on the geographies and policies that are driving activity. Ask our experts a question or book 1-1 time: Dr. Chrisoph Berg: https://experts.ihsmarkit.com/experts/berg-christoph Kevin Lindemer: https://experts.ihsmarkit.com/experts/lindemer-kevin

More than 20% of Houston GDP relates to activities in the traditional energy industry – a sector that is being disrupted by innovation in low-carbon energies. How will the effects of this disruption compare to the economic decline observed in 1990s Detroit, whose GDP was heavily reliant on an evolving automobile industry? IHS Markit Regional Economist Karl Kuykendall joins EnergyCents this week to discuss the historically resilient Texas economy, and why we should be optimistic for Houston, the Energy Capital of the World, as it undergoes economic transition. Ask Karl a question or book 1-1 time: https://experts.ihsmarkit.com/experts/kuykendall-karl Send us your comments or questions at [email protected].

Upstream Capital Cost Service (UCCS) Discussions is a new addition to the Upstream Perspective podcast. In these conversations, analysts from the UCCS will discuss some highlights from their latest research. This month's conversation centers around the oil and gas labor market. In this episode, Upstream Cost & Technology experts Sheila Moore and Jeff Nitto will discuss changes they have seen in the labor market and what challenges workers might face in the future. Ask Shelia a question or book 1-1 time: https://experts.ihsmarkit.com/experts/moore-sheila.

Natural gas has historically reduced CO2 emissions when displacing coal in power generation and remains a significant player in the global energy mix in 2050 in almost long-term planning scenario. However, the lower carbon fossil fuel isn't wholly embraced by societies on a path to net zero. IHS Markit global gas expert Ed Kelly joins EnergyCents this week to discuss the complicated role of natural gas in a greening economy, and why we should expect the fuel to be a key contributor to meeting energy demand going forward. Book 1-1 time or ask Ed a question: https://experts.ihsmarkit.com/experts/kelly-ed Send us your comments or questions: [email protected].

High-carbon imports into the European Union pose challenges to the EU reaching its net-zero ambition by 2050. A proposed Carbon Border Adjustment Mechanism, or CBAM, seeks to balance high-emitting industries' cost competitiveness with carbon consciousness, and may provide a template for managing the cost of emissions in international trade. EnergyCents welcomes European Climate Policy expert Coralie Laurencin to walk us through the potential implications and timing of a CBAM, and highlight the myriad complexities of charting a course in cross-border regulation. Have more questions? Ask Coralie a question or book 1-1 time: https://experts.ihsmarkit.com/experts/laurencin-coralie. Send us your comments or questions: [email protected].

The median first-quarter 2021 cash flow reinvestment rate for the oil-focused US E&Ps came in at an austere 43%, exceeding the expectations of many analysts. While one quarter does not make a trend, fiscal discipline is clearly a key focus of shale-sector executives to begin the year. EnergyCents welcomes IHS Markit shale-sector experts Andrew Byrne and Raoul LeBlanc to discuss the balance-sheet implications of first-quarter discipline, and how the sector is responding to investor demands for prudence. Have more questions for our experts? Ask them a question or book 1-1 time: Raoul LeBlanc: https://experts.ihsmarkit.com/experts/leblanc-raoul Andrew Byrne: https://experts.ihsmarkit.com/experts/byrne-andrew Send us your comments or questions: [email protected].

Cleantech investors find themselves on a 'Solar Coaster' as equity volatility reflects the industry's challenge of meeting fast-growing demand through disrupted supply chains. IHS Markit solar veterans Edurne Zoco and Cormac Gilligan join EnergyCents to discuss the confidence in PV demand despite current challenges, and when to expect relief from current tightness. Have additional questions about the solar market? Ask our experts a question or book 1-1 time. Edurne Zoco: https://experts.ihsmarkit.com/experts/zoco-edurne Cormac Gilligan: https://experts.ihsmarkit.com/experts/gilligan-cormac

IHS Markit expects annual spending on low-carbon Hydrogen production could increase to $50 billion (with a "b") by 2030, from around $50 million (with an "m") in 2020. Risks to realizing such growth include uncertainties around business models, industrial-sector commitments, and policy support. IHS Markit hydrogen experts Alex Klaessig and Julia Wainwright join EnergyCents this week to discuss their outlook for global hydrogen investment, as well as the strategic intent of countries and sectors that may drive advancements in the low-carbon fuel. Have more questions? Ask our hydrogen experts a question or book 1-1 time with them: Alex Klaessig: https://experts.ihsmarkit.com/experts/klaessig-alex Julia Wainwright: https://experts.ihsmarkit.com/experts/wainwright-julia Send us your podcast comments or questions: [email protected].

Oil markets find themselves in a good place as North America shale producers show continued restraint, and OPEC+ manages its response to post-COVID demand to support prices in a $60-$75/bbl range. IHS Markit oil experts Karim Fawaz and Reed Olmstead return to EnergyCents to discuss updates to their most recent supply forecasts, and what to be watching as more onlookers consider the possibility of another commodity 'Supercycle.' Send your comments to us at [email protected].

President Joseph Biden's proactive commitment to low-carbon energy policy returns the United States to a leadership position within the international dialogue on climate. EnergyCents welcomes back IHS Markit Executive Director Peter Gardett to share his views on a Biden energy policy that prioritizes climate (or is it a climate policy that prioritizes energy?), and what to look for over the next six months as the United States readies itself for a "decisive decade". Send your comments or questions to us at [email protected].

Specialized start-ups and diversified incumbents are in a race to develop next generation technology that will improve safety and performance of batteries used in electric vehicles. IHS Markit Batteries Expert Chloe Holzinger joins EnergyCents this week to provide an overview of the competitive landscape, and consider the evolving partnerships and rivalries among leading automakers and cell manufacturers. Send your comments and questions: [email protected]

The fate of Nord Stream 2 remains an open question as strategic interests from the EU, US, and Russia influence the gas pipeline's construction and potential in-service date: less than 200 km of pipelay remains to be completed. IHS Markit European Gas Market expert Laurent Ruseckas joins EnergyCents this week to discuss the current status of the Russia-to-Germany pipeline, and the potential role of natural gas in an evolving European energy market. Send us your comments or questions: [email protected].

US project-specific corporate renewables demand is projected to more than double to $17 billion over the next decade from less than $8 billion in 2021. IHS Markit's Financial Advisory Lead Peter Gardett joins EnergyCents this week to discuss the trend, and consider the various financing structures that will enable a lower carbon future. Send us your comments or question: [email protected]

Nearly all forms of renewable energy continue to attract investment as myriad technologies fight for market share amid a rapidly changing energy landscape. IHS Markit's Head of Global Cleantech Research Eduard Sala de Vedruna joins EnergyCents this week to discuss the growth of global renewables, and consider differences in momentum by region and by technology. Send us your comments or questions: [email protected]

Economic activity is set to rebound after 2020s COVID-induced lockdowns, and oil prices are up more than 30% since January in response. The prudence of a reorganized shale sector will be tested, as operators are asked to temper any supply-growth ambition. IHS Markit shale experts Reed Olmstead and Prescott Roach join EnergyCents to discuss the resilience of the sector, and share views on how committed the transformed sector is to its new identity. Send us your comments and questions: [email protected].

Barriers to entry rise for offshore wind projects as oil and gas majors and large-scale utilities partner and/or compete to win in one of renewable energy's more consolidated sectors. IHS Markit Global Cleantech Research Analyst Andrei Utkin shares his observations with EnergyCents on the competitive environment for offshore wind, and how big of a role we should expect the sector to play in the future landscape of energy supply. Send us your comments and questions: [email protected].

The shale and solar sectors have profoundly disrupted their respective markets over the past decade. But each is expected to follow very different paths in the future. IHS Markit's Raoul LeBlanc, an expert in shale, and Cormac Gilligan, an expert in solar, join EnergyCents to share their views on the two technologies' paths thus far, and expectations for the future. Send us your comments or questions: [email protected]

Texas suffered through an arctic blast during the week of 15 February 2021 that left millions without power after the Electric Reliability Council of Texas (ERCOT) was faced with dual challenges of a demand surge and power-supply shortfall. IHS Markit North American Power Market Research Directors Doug Giuffre, Mike Pickens, and Wade Shafer join EnergyCents to discuss the events in Texas, contrast with this summer's weather-induced blackouts in California, and how we should be thinking about power markets going forward. Send your comments to us: [email protected]

A dramatic recovery in price, over a relatively short amount of time, amidst a global-wide pandemic. The oil market is, once again, full of surprises. In this episode, Karim Fawaz quarterbacks a conversation about the strong conviction that has seemingly emerged in the market and how now it will be up to the fundamentals to prove the market right over the next few months. Send us your comments or questions: [email protected].

Institutional investors are showing renewed interest in energy-sector equities in 2021 across both traditional and low-carbon themes. IHS Markit Research Directors Michael Schpero and Brian Manalastas return to EnergyCents to discuss the trend in more detail, and share expectations for the future. Send your comments and questions: [email protected].

2020 served as a pivot point for the upstream industry; the Energy Transition has accelerated and operators and service companies will continue working towards decarbonizing their operations and supply chains. In this episode of Upstream In Perspective, Upstream Cost & Technology expert Prashanth Pillai discusses how the industry is doing in these efforts and how those results may be different for operators versus service companies. Send your comments or questions to us at www.ihsmarkit.com/upstreampodcast.

Asia has stolen the spotlight this winter with record-breaking spot LNG prices to kick off the New Year. Even general market observers were distracted by the upside volatility with LNG cargo prices at one point in mid-January rising faster than Bitcoin. In this episode of EnergyCents, James Taverner and Simon Wood deliver valuable insight into the recent LNG market mania and discuss the Asian LNG market's journey to liquidity. Send us your questions or comments: [email protected].

Substantial demand for liquid fuels—and therefore a refining industry—is probable for the foreseeable future. However, the structure of the refinery, its feedstock sources, and its success factors could be quite different as successful companies pivot to a low-carbon supply business. In this episode of EnergyCents we are joined by Kurt Barrow, Vice President of Oil Markets, Midstream & Downstream, to discuss the challenges and opportunities facing the refining industry and share his thoughts on the most important things to watch in 2021. Send us your comments or questions by emailing [email protected].

Solar technologies, and renewable energy more broadly, have become mainstream as consumers seek low-carbon power supply. IHS Markit Research Director Sam Wilkinson joins EnergyCents to share his views on the trend, and expectations for the future. Send your comments or questions to our podcast team via email at [email protected].

EnergyCents Hosts Breanne Dougherty and Hill Vaden are joined by Producer Jessica Nelson on this year-end episode to consider lessons learned from podcasting in 2020, and share the three energy topics about which they are most excited to watch develop in 2021. Have a topic you'd like us to cover in 2021? Submit it to our team at [email protected]

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.