From hydrocarbons to electrons: creating new opportunities for the oil and gas sector
Bernadette Cullinane A , Michael Wood A and Barry Ladbrook ADeloitte Australia, Tower 2, Brookfield Place, 123 St Georges Terrace, Perth, WA 6000, Australia. Emails: bernadettecullinane@deloitte.com.au; michwood@deloitte.com.au; bladbrook@deloitte.com.au
The APPEA Journal 58(2) 529-532 https://doi.org/10.1071/AJ17164
Accepted: 20 March 2018 Published: 28 May 2018
Abstract
Today’s energy and resources companies must address many challenges to their traditional business models including the rapid emergence of available and economic renewable energy sources, ever tightening greenhouse gas emission policies and increased stakeholder expectations around transparency. While there is uncertainty regarding the impact of these developments, enormous opportunity exists for companies to forge pathways to a decarbonised future while at the same time creating new markets, products and services and increasing revenues.
Several leading Australian resources companies have recently embarked on programs to transition to a lower carbon and more diversified energy portfolio. These initiatives focus on integrating alternative forms of energy across value chains, making energy consumers central to their business models and increasing energy security for their companies and the country.
This paper discusses the drivers underlying these challenges, draws on case studies of how oil and gas companies are managing their journey, considers the impact such programs on the companies’ financial and operational performance and outline some implications and possible approaches.
Keywords: business model, climate risk, disclosure, energy transition, natural gas, renewables, storage.
Bernadette Cullinane is Deloitte’s Australian National Oil and Gas Practice Leader and LNG Leader. Throughout her career Bernadette has helped companies improve their business, financial and operational performance. She has worked extensively across the oil and gas value chain and all stages of the capital project to operations lifecycle. She is helping oil and gas companies transition to a decarbonising economy where LNG and electricity play increasing roles. |
Michael Wood is a Director in Deloitte’s Risk Advisory practice. He has over a decade of experience specialising in the development and execution of strategies to improve the productivity and performance of business through energy optimisation and the evaluation of new and emerging technologies. |
Barry Ladbrook is a Sustainability Specialist with Deloitte who has advised senior executives and government representatives on commercial, policy, strategic and risk management aspects of the energy transition for more than a decade. He has an intimate understanding of the LNG sector, having spent five years with INPEX. |
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