Our Approach

The Challenge:

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- Mark Carney, Former Governor of the Bank of England, quoted June 2020

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The Covid crisis has given the industry a glimpse into the future – what a world deep in energy transition might look like: 

Oil & Gas companies fighting for survival with cash flow, investor returns, supply chain, and the fundamental value proposition all under threat.  

In this context it is vital to be bold in seeking out opportunities in the new world, not just shore up defences against the looming threats. 

 It is the only viable way to manage risk and protect shareholder value in the long term. 

The Opportunity:

Although individual project returns for low carbon initiatives may appear low from the perspective of traditional oil economics, evidence is mounting that a lower carbon portfolio offers better long-term shareholder returns. The portfolio is made more attractive to investors, as evidenced by the post-Covid rebound in share prices from companies operating a significant proportion of renewables.

Oil & gas companies do have a comparative advantage in energy transition.  This is defined by:

·       Major project delivery skills and capital deployment

·       Asset portfolio: geography, geology, nature of the hydrocarbon, existing energy infrastructure

·       Global relationships, infrastructure & supply chains, local content development (human & enterprise)

·       Clean energy aspirations of their host governments and the geo-politics of green energy 

BluEnergy looks for opportunities for its clients to leverage this comparative advantage when deploying proven low carbon technologies.  We help our clients identify and deliver tangible projects that support efforts to achieve net zero carbon emissions in a way that is much more than just compliance, namely:

·       Offering value-accretive business opportunities 

·       Enhancing the existing business footprint

·       Extending skill sets through smart project structures

White Paper: Does Oil Lead or Follow?

In this paper Hamish Wilson addresses three topics: 1) We have to acknowledge that such 'anti' public sentiment exists and it is in the industry's interests to address this sentiment. 2) Investors are being encouraged to turn away from the oil industry 3) The energy transition is coming and is both a threat and an opportunity to the industry.


 How We Work

 
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Energy Transition Strategy and Risk Audit

  • Understand company drivers

  • Current goals, strategy and plans

  • As required, articulate the carbon emissions foot print and outlook

  • Risk assessment focused on the long term resilience of the business to the Energy Transition

  • Articulate asset strengths and weaknesses from a low carbon investment perspective 

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Map Low Carbon options against the company operational footprint 

  • Solar, wind, carbon capture utilisation and storage, hydrogen, carbon offsetting, geothermal, etc.

  • Clean/Green option assessment and financial modelling

  • Option ranking and selection

  • Corporate finance and risk management implications 

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Low Carbon options development

  • Business planning 

  • Project implementation overview (including selection of technology partners)

  • Financing

  • Stewardship and process improvement

  • Communications and change management plans  (with associates)