This week, independent energy research and business intelligence provider, Rystad Energy, warmly welcomed visitors to its new headquarters overlooking the fjord in downtown Oslo, Norway.
The housewarming and information session featured Jarand Rystad, CEO; Bjørnar Tonhaugen, Head of Oil Market Research; and Jo Husebye, Consulting Partner – as well as the local Rystad Energy team, giving visitors the opportunity to have a look at the new, expanded office space.
In addition to celebrating the new premises, Rystad experts presented short industry updates on the company’s global business, the development of the oil price and a look at renewables.
During his update on Rystad Energy’s global business – including a virtual tour of the company’s presence in London, New York, Houston, Stavanger, Moscow, Rio de Janeiro, Singapore, Bangalore, Tokyo, Sydney and Dubai – CEO Jarand Rystad explained how the company has a macro, global perspective that dives into the micro perspective, passing through the miso, or country level, on its way. Using oil production as an example, Rystad explained that one of the company’s databases is built up from every field in the world – and includes every single well. To emphasise the scope, he noted that the North American onshore production alone accounts for more than 1 million wells.
Rystad Energy’s successful track record bears this strategy out. Jarand Rystad pointed to one case in particular, during ONS back in 2016 when oil prices were in the $40s. Forward price curves at the time were not so hopeful, but Rystad Energy, using production profiles and projected demand predicted that by 2018 oil prices would reach the $80s: “… people thought we were crazy,” said Rystad. Next up was Bjørnar Tonhaugen, Head of Oil Market Research, continued the theme, examining current and potential future oil prices.
Tonhaugen took up the question “The oil price is back, but for how long?”, explaining that while oil prices have dropped since the year’s high at the beginning of October, the fundamentals that affect oil prices are not much changed, considering the effect of demand and supply variables in the coming years and examining some of the factors that may influence potential oil price cycles.
In the final presentation, “Will renewables get us to ‘Paris’?”, Jo Husebye, Consulting Partner, examined the role renewable energy sources will play in achieving the goals set by the Paris Agreement. Husebye began by stressing that the pathway to “Paris” will rely on heavy policy intervention. The costs of transitioning, which is technically feasible, will be significant, yet the benefits will be great as well. One method for pushing this intervention forward is carbon pricing.
Husebye described “two main pillars” to achieving Paris goals: fuel efficiency and renewables. He pointed out that to achieve Paris Agreement goals, a switch from coal to renewable sources of energy will be necessary. While this growth in renewables is technically feasible, the question remains about whether renewables will be economically competitive, which is why policy intervention becomes critical.
As we’ve come to expect from Rystad Energy events, it was an all-around enjoyable evening, with a good balance of entertainment and information.
To find out more about how Rystad Energy products and services cover energy fundamentals and the global and regional upstream, oilfield services and renewable energy industries, visit www.rystadenergy.com