Register      Login
Australian Energy Producers Journal Australian Energy Producers Journal Society
Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Renewed energy in Asia’s upstream

Gero Farruggio A B and David Dixon A
+ Author Affiliations
- Author Affiliations

A Rystad Energy, Level 24 Three International Towers, Barangaroo, NSW 2000, Australia.

B Corresponding author. Email: gero@rystadenergy.com

The APPEA Journal 59(2) 582-585 https://doi.org/10.1071/AJ18193
Accepted: 28 March 2019   Published: 17 June 2019

Abstract

Upstream is enjoying a renewed optimism in pricing and project developments, and the growth outlook is positive. That said, current investment in upstream across Asia is less than half that of renewable projects, which accounted for over US $180 billion in 2018. Got your attention? It certainly has for national oil companies and regional oil and gas players as companies explore the opportunities presented by lowering solar and storage costs. In this paper we analyse capex trends and forecasts across both sectors in Australia and the region. Will this growth continue, who is set to gain and by how much? We explore the growing role of renewables in the oilfield service sector. Australia is not alone in experiencing a renewables boom; the trend continues across Asia, with government initiatives more often than not being the catalyst and the boom then fuelled by a seemingly endless supply of insatiable investors. Australia is experiencing a frenzy of activity; developers are rushing to grab land and be the first past the post on grid connection. What can we expect as the renewable energy target transitions to the national energy guarantee, to whatever comes next? We compare the corporate landscapes across the upstream and new energy sectors, and explore what is driving them closer each year as miners and upstream operators turn to solar, wind and storage to reduce operational expenditure and boost field economics. Adani has one of the largest solar pipelines in Australia; will Woodside follow suit? Finally, we compare returns for recently commissioned renewable and upstream projects.

Keywords: APAC, Asia Pacific, Australia, renewables, solar, utility storage, wind.

Gero Farruggio joined Rystad in November 2017 and is responsible for the overall business in Australia and Rystad’s global renewable energy offerings. Gero brings over 20 years of industry and community service experience, including directorship, senior management, consulting and advisory roles. Gero is Head of Rystad Australia and the cofounder of Sustainable Energy Research Analytics – A Rystad Energy Company, based in Sydney. Gero is a member of the editorial board for Ecogeneration magazine, a member of the Australian Institute of Company Directors and a mentor for EnergyLab, the Sydney-based clean energy accelerator. Gero started his career at Schlumberger, where he demonstrated the commercial value of geosteering technology in Venezuela and Nigeria, publishing a selection of papers on innovations for the optimisation of horizontal oil wells. Gero then spent 16 years at Wood Mackenzie, as Director of Wood Mackenzie Australia Pty Ltd and responsible for Americas and APAC Upstream research. In November 2017, Rystad Energy acquired Sustainable Energy Research Analytics (SERA), where Gero was Managing Director specialising in renewable energy research and advisory. Gero graduated in mechanical engineering (MEng, ACGI) from Imperial College London and has an MBA from Edinburgh University.

David Dixon has an undergraduate degree in Petroleum Engineering, with a Masters of Photovoltaic Engineering from the University of New South Wales. David has 6 years’ experience in the energy (upstream and solar) industry, with Shell, Woodside and Solgen Energy. David’s roles have included production technologist at Shell working on the development of the Prelude and Concerto wells supplying gas to Prelude’s floating LNG, completions engineer on key Australian oil and gas projects, including Browse, Enfield and Pluto, and engineer at Solgen working on commercial solar. David works as a renewables analyst covering the Australian Market and is based in Rystad’s Sydney office.


References

Rystad (2019a). ‘Australia: A Big 2018, a Bigger 2019, an Uncertain 2020.’ (Renewable Energy Analytics, Rystad Energy: Sydney, NSW.)

Rystad (2019b). ‘Renewable Tracker News and Revisions.’ (Renewable Energy Analytics, Rystad Energy: Sydney, NSW.)

Woodside (2018) World-first offshore battery. Avialable at: https://www.woodside.com.au/news-and-media/stories/story/world-first-offshore-battery [verified 24 April 2019]