Second Ministerial Session on ‘Hydrocarbons to fuel the future: Choices & Challenges’

The second ministerial session on ‘Hydrocarbons to fuel the future: Choices & Challenges’ was presided over by Mr. Piyush Goyal, Hon’ble Minister of Power, Coal and Renewable Energy, Govt. of India. Mr. Ivan Marten from Boston Consulting Group was the Knowledge Partner of the session. H.E. Mr. Bechir Madet from Chad, H.E. EzeKiel Lol Gatkouth from South Sudan, H.E. Dr. Mohammed Zayed Awad from Sudan and Dr. Orlando Velandia, President of National Hydrocarbon Agency ofColombia, Colombia, was the speaker of the session.
Presenting the insight of the session at the beginning, Mr. Ivan Marten from Boston Consulting Group remarked that energy and natural resources are going to be the key issues in 21st Century. He mentioned that the two distinct worlds, OECD and Non-OECD countries,have started to emerge. ‘The issue is to achieve sustainable growth in non-OECD world especially in Asia’, said he. He defined the five key choices and challenges for Hydrocarbon industry in his introductory remarks. ‘E&P cost v/s Return’, ‘Oil substitutes emerging’, ‘Gas and Coal usage trade-offs’, ‘Collaboration for sustainability’ and ‘Efficiency improvement to help met growing demand’ were the issues of more concern for Hydrocarbon industry for Mr. Ivan. He warned that declining cost of lithium-ion batteries and the advancement in electric vehicles penetration could disrupt the market and depress oil demand in future. He said that for Non-OECD countries choice of fuel depends upon two main factors of energy costs and energy security. Moving ahead with the theme, he pointed out that, however, OECD countries have pledged monetary and technological assistance to non-OECD countries but implementation needs to be accelerated.
Starting his presidential remarks, Hon’ble Minister of Power, Coal and Renewable Energy, Govt. of India, said, ‘India is the county which stands committed in this global effort to fight problems of global change. Our role is not dependent on what other country does’. He clarified that while fossil fuels continue to dominate, there is need to work towards reducing the CO2 emissions and renewable sector needs to work hand in hand with fossil fuels. The issue of energy security in India is based on clean sources of energy. Showing commitment towards COP, he informed the delegates that a holistic framework is being drawn to reduce the CO2 per unit of GDP. Talking about the energy efficiency, Mr. Goyal underlined the India’s lead position and unfolded the plan to convert entire lighting to LEDs by 2019 of which 1/3 had already been replaced. He reiterated the commitment of reducing electricity consumption by 120 billion units and CO2 emission by 80,000 tons per year. He also discussed the long term gas contracts to power the gas based plants and some engagement to bring down the cost of gas to provide spinning reserve to the grid. He unfolded the vision of Govt. of India to connect every village of the nationwith electricity by next year and to every home by 2019. He expressed hope to increase the blending % in the coming years. He emphasized on building India which will be both energy secure and sustainable in his final remarks.

H.E. Mr. Bechir Madet from Chad informed about the 20 new blocks available for exploration in his country. Talking about promoting new and renewable energy, he informed that there is a huge potential in country. ‘Solar energy ~2850 hectare in South and ~ 2700 hectares in the North available for solar projects’, informed he. As low electricity penetrations is currently in the country, he informed about the plan for 80% of electricity penetration by 2030.
H.E. EzeKiel Lol Gatkouth from South Sudan talked about the need to work together to meet the global energy demands. As South Sudan is a land-locked nation, he discussed about the opportunities available to develop infrastructure to further utilize the resources produced in the country. ‘In South Sudan, we are focusing on refineries now for the crude we are producing. We have huge market in East Africa’, informed he. Talking about the challenges ahead, he invited the oil exploration companies to invest in South Sudan and to help develop the resources available in the country.

H.E. Dr. Mohammed Zayed Awad from Sudan commenced the speech saying, ‘Sudan has been the oil exporter nation from last 18 years to the international market. However, exports have declined since the formation of South Sudan’. He added further that energy security and access of energy to all is key agenda for Sudan. He enumerated the strategy to encourage local companies/ private companies to work in JV with international players to help create jobs and help investors to continue to invest in Sudan. ‘Hydrocarbon will remain main source of energy. Applying appropriate and cost-effective technology as well as adopting a mixed approach are key for sustainable growth’ added Dr. Mohammed.

Mentioning Ugnada as one of 10 fastest growing economies in Africa, Hon.Eng. Irene Muloni from Uganda said, ’It is our responsibility to see that petroleum resources contribute to sustainable development of the world’. He highlighted the importance of Mutual Corporation for sustainable future. Underlining the opportunity of investment across the oil value chain, he mentioned that partnership with the countries are necessary to establish the best practices in the industry. He concluded with the remark, ‘Cooperation with India is key’.

Dr. Orlando Velandia from Colombia informed that Colombia is properly adapting to the oil price drop and is able to certain steps and manage the deficit due to low prices. Talking about the measure which have allowed to create a certain stability in low price environment in Colombia, Dr. Orlando said, ‘Government of Colombia has capacity to make changes and face the challenges’. Going ahead with the environmental concern, he was very careful about the oil and gas operations which should not harm the environment. He invited the investors to operate highlighting the congenial environment of the nation and the peace obtained through sustained dialogue and also the boost govt. has given to Colombian petroleum industry. Highlighting the investor-friendly environment of the nation, Dr. Orlando said, ‘ the Govt. has signed 20 contracts till now and still large area is unexplored’.