A guest post by Aaron White
Three Bridges To The Future
Ben van Beurden, CEO of Shell recently spoke at the World Petroleum Congress conference in Istanbul (http://www.shell.com/media/speeches-and-articles/2017/bridges-to-the-future-of-energy.html).
The conference can be likened to the world’s fair or the Oscars of the energy industry, where the leaders of energy companies share their view, motivations and hopes for the future.
The collaboration is couched in the pragmatic notions of commercial viability, as is the essence of the energy industry.
He made significant statements for the attendees and panel members, centring his speaking around views to the future, how to develop sustainable and cleaner energies, fostering gas and LNG as less carbon intensive fuels which can be readily deployed with low lag time in project execution.
He also touched on the potential for developing countries, as those in Sub-Saharan Africa, to leapfrog the dirty fuels stage of development which many major countries have fallen into. To wit, his remarks on the future projected 3.6 billion additional humans expected to join the global community over the next 100 years highlights the firm’s focus on the future and energy provision to those people.
Africa was noted as an expected growth market for energy with 3.2 of the 3.6 billion future inhabitants of the continent expected to arrive from countries in the south-east region including the DRC, Uganda and Tanzania. This explosive population growth will require sustainable, less-polluting technologies to power their development.
By supporting these countries and investing in infrastructure networks in these locations, connecting the people within and to the wider regions, there can be great benefit to the populations and the countries which invest therein.
The crux and value of Ben’s contribution to the forum was the theme of “Bridges to the Future”. The first bridge covered a valid point on the viability and commercial sustainability of the CCS industry. Finding and developing commercial uses for the CO2 is crucial. Then accelerating their roll out of this technology to the regions will support a sustained reduction in carbon emissions. The first bridge of perception is to see the coming issues and areas where resources and high value, impactful development projects can be developed.
The “Bridge of Perception” simply put, is to acknowledge the pace of change and the technologies deployed and developed in different regions will vary. It is respecting and collaborating to deliver the maximum value for local people – in provision of access to energy while lowering carbon emissions in doing so. By supporting peoples all over Africa and developing regions, this vision of enhanced perception can be realized.
The second bridge of solutions touches on the great effort to be made to develop the solutions and recognizing the prescient need for development and investment. Ben confirmed that Shell will invest up to $1 billion to 2020 in this space.
He reiterated that there will be a concrete need for transition hydrocarbon fuels including LNG and natural gas to ensure the sheer volumes and power levels of energy required can be successfully delivered to help people improve their absolute standard of living.
There is a certain need to build out infrastructure and capacity for local generation with gas and lower carbon, cleaner fuels in Africa. Sub-Saharan African communities suffer greatly from pollution in cities and there is regular loss of life from charcoal cooking stoves coupled with poor ventilation for the stove exhaust. Partnering with such communities, development and widespread roll-out of efficient cook stoves will lessen the personal risk, increase fuel efficiency and reduce local air pollution at ground level. This will pay a two-fold benefit from decreased respiratory disease which is particularly prevalent in air polluted cities such as Kampala and Kigali.
The theme of targeted investment was high profile – Remember as in any investment, there is no unlimited money tree. To wit, those working to develop energy infrastructure and energy projects must target their focus. Target their spending and acquisition to ensure the most value-adding and pragmatic projects are taken up.
The third bridge he conferred was the ‘Bridge of Unity‘ – He clearly stated a need for unity in the solutions for our world, to avoid the oft-toted 2 degree C global warming limit / target. By not grasping for the simplest solutions, but working hard to identify the best value for all stakeholders will be crucial from a make-things-happen perspective. For business, this means a real need to evolve and transition to make these things happen.
Looking at what this means for individuals and corporations, there is a need to unite greater than at any time in human history. Using these bridges to cooperation, certainly across corporations, if technology and infrastructure development will lead to joint venture companies, risk sharing, and portfolio diversification. But also, contributing to company benchmarking and leader tables for CO2 reduction efforts, as Shell is doing.
For an energy company transitioning to a gas economy significant player, the claim and aim to be a world leader in progression in this area cannot be taken lightly. By being a prime mover in this space, Shell can exercise a coup and take a rightful first place ahead of dirtier compatriots in the energy space.
By making statements of the potential for a solid business case as the driver for drawing in capital to support, expand a low carbon world infrastructure, and also that it is very possible to develop in nuanced, very local ways, it shows a developed, carefully cultivated and tested plan for world development.
Shell has positioned itself as a future leader using values as mentioned here http://ronnie-writes.blogspot.com/2017/07/values-for-leadership-how-you-can-apply.html
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