Navigating the Challenges and Opportunities in Global Energy Exploration

19 Sept

Written By Tom Othick - Head of Marketing & Promotion

In the ever-evolving landscape of global energy, it's imperative to stay ahead of the curve. In the latest edition of "The Changing Face of Energy" LinkedIn series, the panel consisting of Frontier’s COO - Daniel Davidson and CEO - Gayle Meikle, Envoi’s Mark Lakin, and Amalia Olivera-Riley from Subsurface Consultants & Associates discussed the complexities of this dynamic industry, exploring both the above and below-ground risks, capital availability, and the pressing need for talent.

Did you miss the LinkedIn Live? Watch it here

Amalia Olivera-Riley Subsurface Consultants & Associates — **Amalia Olivera-Riley**
Subsurface Consultants & Associates

Funding Exploration in Global Hotspots

One of the primary challenges in the energy exploration sector is securing adequate funding. Major companies grapple with the dilemma of where to allocate their capital. Often, they opt for a more conservative approach, concentrating their investments in a select few areas rather than diversifying their portfolios. For smaller investors, entering the oil and gas sector can be daunting due to its high-risk nature. Even integrated oil companies, capable of raising funds through cash flows from production, face challenges in supporting alternative energy ventures. However, governments play a pivotal role in attracting investment. By creating attractive regulatory frameworks, they can entice investors to explore untapped reserves.

The BRICS Expansion and Capital Availability

The expansion of BRICS (Brazil, Russia, India, China, and South Africa) nations into the energy sector holds the potential to inject significant capital into the industry. However, a fundamental challenge remains—investors seek returns on their investments. Exploration in oil and gas presents a heightened risk of failure, dissuading potential investors. Established integrated oil companies can rely on cash flows from production to raise capital, while smaller investors rely on market conditions.

The industry's future success may depend on effectively leveraging opportunities presented by smaller, agile players in the exploration sector while addressing the changing preferences of investors seeking substantial returns.

The Talent Challenge

The talent challenge within the energy industry is multifaceted. Early retirements have led to a shortage of experienced professionals. A noticeable generation gap exists in the workforce, with fewer young professionals entering the field. Furthermore, universities are reducing programs related to energy sciences, exacerbating the knowledge gap. Many professionals are leaving the industry for sectors like technology and sustainable energy, which offer better environmental incentives and career prospects. Addressing this challenge necessitates investment in nurturing and retaining talent. The industry must create enticing opportunities for younger generations while valuing and retaining experienced professionals passionate about their work. Environmental and climate sciences should be promoted through educational programs to ensure a skilled workforce for the future.

Global Energy Hotspots

In a discussion about opportunities in the energy sector over the next five years, our panel shared their insights on potential hotspots. Mike emphasized ten promising areas for investment, taking into consideration technical factors rather than environmental constraints. He highlighted the Caribbean, particularly Jamaica, as an emerging exploration region. Mike also discussed regions like Uruguay, Namibia, and Somalia, where there is untapped potential due to past perceptions. Additionally, he mentioned the offshore Southern Australia region, which presents intriguing gas prospects despite environmental challenges.

Amalia offered a different perspective, focusing on areas she believes hold significant potential. She mentioned Southern Argentina as a prime opportunity for exploration, given the well-defined opportunities in the country. Malia also discussed regions such as Suriname, Namibia, and Mexico as emerging spots for energy exploration. Furthermore, she emphasized the importance of above-ground factors, like government policies and industry collaboration, in shaping the success of energy projects.

Both highlighted the urgency of capitalizing on these opportunities, given the pressing global need for energy resources and the limited window of opportunity. They stressed the importance of governments collaborating with the industry and effectively marketing their regions to attract investments in these critical energy projects.

Conclusion

Exploration in the global energy sector is not without its challenges, but opportunities abound. The industry requires collaboration between governments, industry players, and investors to surmount these challenges successfully. Effective communication is essential in conveying the significance of hydrocarbons and exploration in meeting future energy demands. Climate change discussions must encompass global ramifications, recognizing the role of the Western world in addressing the issue. The window for attracting capital is narrowing, demanding governments to craft compelling investment propositions.

Considering these developments, the World Energy Summit on September 27th – 28th and the Energy 2050 Summit on November 28th - 29th are vital events for industry professionals seeking to stay informed. The energy landscape is dynamic, and staying ahead of the curve requires collaboration, effective communication, and a strategic approach. The challenges are real, but the opportunities are boundless for those willing to navigate the changing face of energy.

The World Energy Summit - An Overview

The World Energy Summit, scheduled for September 27th – 28th in London, is poised to become a pivotal event for global energy players. Spearheaded by our CEO, Gayle Meikle, this summit seeks to shed light on the vast potential of global energy opportunities. With presentations from industry giants, regulators, independent companies, and experts, the summit will provide a comprehensive understanding of the energy landscape. The event is generously supported by companies including ExxonMobil, Woodside, Chevron, and many more. London is the place to be this September for anyone passionate about the energy sector.

Tom Othick - Head of Marketing & Promotion