ABU DHABI –
The oil and gas industry must secure more than $10-trillion worth of investment over the next 22 years if it is to meet the forecast growth in demand for energy and industrial petroleum-based products.
According to figures from the OPEC World Oil Outlook 2040, the total oil and gas value chain will need around $10.5 trillion in funding between 2017 and 2040, calculated in 2016 dollars, to achieve a ‘balanced and stable’ oil market. This includes $7.9-trillion invested in upstream production, or around $328-billion per year. Downstream industries will need around $1.5-trillion, with around $915-billion of that going just to repair and maintenance, and the midstream sector around $1.1-trillion.
To meet the funding challenges of the future, the 2018 edition of the world’s leading oil and gas event, the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), is hosting a series of dedicated talks on oil and gas finance. The program fosters links between top-level industry executives, facilitating knowledge exchange that can be applied across the full value chain, from E&P through to the end product.
“Investment opportunities and financing are intrinsically linked,” said Richard Cormack, Co-Head of Equity Capital Markets (ECM), Goldman Sachs, and a speaker at ADIPEC. “One cannot discuss a potential investment without understanding the source, and cost of funding, and potential opportunity cost of that capital. A holistic capital allocation strategy is critical to success in this industry and following the cycle we have been through in the sector is something investors are razor focused on.”
Many industry experts believe obtaining the finance for new oil and gas projects will become increasing complex, particularly as the transport sector and power generation move away from hydrocarbons and towards renewable energy sources. Finding a roadmap for finance in the new energy landscape is critical.
As a highlight of ADIPEC’s globally respected Strategic Conference, the event includes two high-level CEO Finance Breakfast Briefings, sponsored by consulting group Grant Thornton, exploring how the industry is becoming more creative in attracting new investment opportunities, focusing on mergers and acquisitions, joint ventures, stock offerings via IPOs, and project finance.
Headline topics include financing the future growth of today’s global oil and gas industry, promoting finance stability, increased collaboration between governments and financial institutions, and sessions looking at how the industry can secure project finance for the upstream, midstream and downstream sectors.
Panel discussions and on-stage interviews feature some of the industry’s most influential financial decision-makers. Speakers include C-suite executives from NOCs and IOCs, including ADNOC, Mubadala Petroleum, McDermott, BP, Dana Gas and Petronet LNG, bringing diverse experience from across the industry. The financial sector offers representatives from Abu Dhabi Securities Exchange, Goldman Sachs, JP Morgan, South-Africa-based Standard Bank, Japan Bank for International Cooperation, and from Grant Thornton.
“Thought leaders on finance include some of the most influential executives, both from oil and gas and from the finance sector, who are making key investment decisions for the industry today,” said Jean-Philippe Cossé, Vice President – at dmg events.
“Both for sharing knowledge with each other, and for those attending as part of the audience, these are very practical conversations about the challenges the industry faces today, and those it will face tomorrow in unlocking the finance for sustained growth.”
The CEO Finance Breakfast Briefings are one of the high-level pillars of the ADIPEC 2018 Strategic Conference, as part of a programme that includes three Ministerial Sessions – hosting Energy Ministers from the Middle East and Africa, Europe, Asia and the Americas – 10 Global Business Leader Sessions, and 11 C-Suite Dialogue sessions.
The strategic and technical conferences are hosting around 980 speakers and 161 separate sessions. The conferences run alongside the landmark ADIPEC Exhibition with around 2,200 exhibiting companies, including 42 NOCs and IOCs, as well as 28 country pavilions.
Held under the patronage of Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE; hosted by the Abu Dhabi National Oil Company (ADNOC); and supported by the UAE Ministry of Energy, the Abu Dhabi Chamber, and the Abu Dhabi Tourism and Culture Authority, ADIPEC is taking place from Nov. 12 to 15 at the Abu Dhabi National Exhibition Centre (ADNEC).
— SG
‘Balanced and stable’ oil market
needs innovative finance models
ABU DHABI – The oil and gas industry must secure more than $10-trillion worth of investment over the next 22 years if it is to meet the forecast growth in demand for energy and industrial petroleum-based products.
According to figures from the OPEC World Oil Outlook 2040, the total oil and gas value chain will need around $10.5 trillion in funding between 2017 and 2040, calculated in 2016 dollars, to achieve a ‘balanced and stable’ oil market. This includes $7.9-trillion invested in upstream production, or around $328-billion per year. Downstream industries will need around $1.5-trillion, with around $915-billion of that going just to repair and maintenance, and the midstream sector around $1.1-trillion.
To meet the funding challenges of the future, the 2018 edition of the world’s leading oil and gas event, the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), is hosting a series of dedicated talks on oil and gas finance. The program fosters links between top-level industry executives, facilitating knowledge exchange that can be applied across the full value chain, from E&P through to the end product.
“Investment opportunities and financing are intrinsically linked,” said Richard Cormack, Co-Head of Equity Capital Markets (ECM), Goldman Sachs, and a speaker at ADIPEC. “One cannot discuss a potential investment without understanding the source, and cost of funding, and potential opportunity cost of that capital. A holistic capital allocation strategy is critical to success in this industry and following the cycle we have been through in the sector is something investors are razor focused on.”
Many industry experts believe obtaining the finance for new oil and gas projects will become increasing complex, particularly as the transport sector and power generation move away from hydrocarbons and towards renewable energy sources. Finding a roadmap for finance in the new energy landscape is critical.
As a highlight of ADIPEC’s globally respected Strategic Conference, the event includes two high-level CEO Finance Breakfast Briefings, sponsored by consulting group Grant Thornton, exploring how the industry is becoming more creative in attracting new investment opportunities, focusing on mergers and acquisitions, joint ventures, stock offerings via IPOs, and project finance.
Headline topics include financing the future growth of today’s global oil and gas industry, promoting finance stability, increased collaboration between governments and financial institutions, and sessions looking at how the industry can secure project finance for the upstream, midstream and downstream sectors.
Panel discussions and on-stage interviews feature some of the industry’s most influential financial decision-makers. Speakers include C-suite executives from NOCs and IOCs, including ADNOC, Mubadala Petroleum, McDermott, BP, Dana Gas and Petronet LNG, bringing diverse experience from across the industry. The financial sector offers representatives from Abu Dhabi Securities Exchange, Goldman Sachs, JP Morgan, South-Africa-based Standard Bank, Japan Bank for International Cooperation, and from Grant Thornton.
“Thought leaders on finance include some of the most influential executives, both from oil and gas and from the finance sector, who are making key investment decisions for the industry today,” said Jean-Philippe Cossé, Vice President – at dmg events.
“Both for sharing knowledge with each other, and for those attending as part of the audience, these are very practical conversations about the challenges the industry faces today, and those it will face tomorrow in unlocking the finance for sustained growth.”
The CEO Finance Breakfast Briefings are one of the high-level pillars of the ADIPEC 2018 Strategic Conference, as part of a programme that includes three Ministerial Sessions – hosting Energy Ministers from the Middle East and Africa, Europe, Asia and the Americas – 10 Global Business Leader Sessions, and 11 C-Suite Dialogue sessions.
The strategic and technical conferences are hosting around 980 speakers and 161 separate sessions. The conferences run alongside the landmark ADIPEC Exhibition with around 2,200 exhibiting companies, including 42 NOCs and IOCs, as well as 28 country pavilions.
Held under the patronage of Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE; hosted by the Abu Dhabi National Oil Company (ADNOC); and supported by the UAE Ministry of Energy, the Abu Dhabi Chamber, and the Abu Dhabi Tourism and Culture Authority, ADIPEC is taking place from Nov. 12 to 15 at the Abu Dhabi National Exhibition Centre (ADNEC). — SG
