Connected energy solutions at AVEVA World 2023

The Oilholic is delighted to be back in San Francisco for AVEVA World 2023 - the annual client fixture for technology consulting and industrial software company AVEVA. It's also the company's first major event since being taken over by Schneider Electric in January 2023.

A content packed start to the conference, being held at San Francisco's Moscone Center, has seen wide ranging discussions on connected solutions in the industrial software space, cloud-based applications and how the energy industry can turn volatility and challenges over meeting sustainability targets into opportunities. Afterall, the sector is pursuing a deep transformation to become more sustainable as well as ensure that the world's needs are met. Technology provides many, if not all, of the answers.

Kicking off proceedings, Caspar Herzberg, CEO of AVEVA, talked of exploring use cases for a sustainable industrial ecosystem - one that's connected and utilizes the power of big data and a seemingly unlimited world of data analytics. And of course, placing the company's platform agnostic AVEVA Connect product suite at the heart of this connected industrial ecosystem. 

"Those that master this art [of a connected, sustainable industrial ecosystem] will outperform other systems," Herzberg said in his keynote. The AVEVA boss' pitch is a clear and simple one to energy, heavy industrials, mining, metals, companies, and indeed other sectors - tie in process efficiencies, improved throughout and sustainability, take learnings from data using AI solutions, and the results would become evident.

Those results include energy efficiency pathways that are 20% better and would invariably help in lowering carbon emissions. One enabling solution is digital twin technology. Read more about it and this blogger's conversation with AVEVA's Head of Research and Innovation Simon Bennett on Forbes.

There's more to come from AVEVA World 2023 - an event Herzberg himself described on Tuesday as one of the largest gathering of industrial software professionals and specialists in the world. That appears to be around 2,500 attendees and counting.

Away from the event, here is the Oilholic's latest piece for The Motley Fool on BP's share price direction, and how significant the appointment of its next CEO could be. That's all for now folks. Keep reading, keep it here, keep it 'crude'!

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© Gaurav Sharma 2023. Photo: Caspar Herzberg, CEO of AVEVA, speaks at AVEVA World 2023 at the Moscone Center, San Francisco, US on October 24, 2023. © Gaurav Sharma 2023. 

'Crude' chat with Afentra Plc CEO Paul McDade

Crude oil benchmarks have been bouncing up and down for over 10 days in the wake of geopolitical tension in the Middle East. Predictably, much of the market analysis community is obsessing over where the risk premium might go, and how to square it against the wider crude oil supply and demand dynamic. 

Here are some thoughts via Forbes on what may or may not move the risk premium needle, and it must be noted that crude benchmarks are still way short of the perma-bull pipedream level of $100 per barrel. 

As volatility bites, what do industry operators do to cut out the noise? The Oilholic recently turned to one industry stalwart for his thoughts on the near to medium-term direction of the crude market and approach to a volatile pricing environment - Paul McDade, CEO of West Africa focussed Afentra Plc (LON: AET), and former boss of Tullow Oil.

According to McDade there's no such thing as an optimum or ideal oil price. "I often get asked what is the right oil price assumption for my business, and my answer is wherever our carefully considered hedging strategy takes us. I place a lot of faith in hedging because we operate in a cyclical industry. 

"We see hedging [or shall I say our hedging program] not as a tool for market bets but rather as a form of business insurance, and it all depends on the payback period. If the payback period is a year, you are OK to assume a base of $80 per barrel. But if its five years you would be crazy not to be a little bit conservative, workout what does the downside looks like and be prudent."

More generally speaking, McDade is bullish on the oil price for 2024 and indeed the next five years. "However, there will always be market noise and volatility that's typically associated with our industry. So if you ask me, could oil slip down to $60 per barrel at some point in 2024? Yes that's likely, but the upside would ultimately go further." 

To read the Oilholic's full interview with McDade for Forbes, and learn more about Afentra's journey please click here. More on market developments to follow over the weekend, but that's all for now folks. Keep reading, keep it here, keep it 'crude'!

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© Gaurav Sharma 2023. Photo: Paul McDade, CEO of Afentra Plc (left) with Gaurav Sharma, September 2023.

Media missives from ADIPEC 2023

With ADIPEC 2023 drawing to a close last week, the Oilholic capped a fascinating and engaging week with a rounding off piece for Forbes on the criticality of scaling up technology - and, of course, backing it up with petrodollars and willpower, if a meaningful energy transition is to be achieved. To this end, this blogger had great conversations with ABB, AiQ, AspenTech, AVEVA and Avaada Group. (More here)

Yours truly also hit the airwaves to discuss the various soundbites coming out of the conference and various developments in Abu Dhabi, all in the midst of a very volatile crude oil market riddled with demand concerns, supply-side tightening and geopolitical complications. The final broadcasting call before departing was with Asharq Bloomberg News, with this blogger's week out in Abu Dhabi peppered with plenty of other missives via the keyboard for Forbes, the Motley Fool, and of course via this blog. 

All blog entries for each ADIPEC day may be found here. 

Some commentary on Shell's share price direction via the Motley Fool may be found here. And here are selected Forbes copies in chronological order based on soundbites and insight from ADIPEC 2023. 

• Emirati COP28 President Calls For A "Just, Orderly, Equitable And Responsible" Energy Transition, October 2, 2023.
• India "Will Manage" And Won't Panic If Oil Rises Above $100, Says Energy Minister, October 3, 2023.
• Abu Dhabi To Unveil World’s Fourth Largest Solar Farm "Very Soon", October 4, 2023.
• Oil Futures Slump Further On Uncertain Global Demand Outlook, October 5, 2023.
• Abu Dhabi In First Wind Farm Launch As 2GW Solar Project Nears Completion, October 8, 2023.
• 4 Middle East Geopolitical Scenarios That May Hike Oil Market Risk Premiums, October 9, 2023.
• Scaling Technology And Willpower Critical For 'Fast-Tracking' Global Energy Transition, October 10, 2023.

And that's a wrap. Keep reading, keep it here, keep it 'crude'!

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To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: Gaurav Sharma on Asharq Bloomberg TV on October 4, 2023 © Asharq Bloomberg 2023.

ADIPEC Day IV: Reflections at sunset in Abu Dhabi

The final and fourth day of ADIPEC 2023 has reached its conclusion as the sun sets here in Abu Dhabi with the show on a likely track to beat all its previous records (and quite possibly way more than the figure of 160,000 attendees it marketed). 

And that makes sense, as there is likely to be immense interest and intrigue when you bring together the various energy strands of oil, natural gas and renewables; and discuss everything from power markets to the future of shipping, whilst at the same time deliberate the obvious need to decarbonise. 

We came together on day one with the rallying cry of "Decarbonising. Faster. Together", we conclude proceedings perhaps with a call for evolution, understanding and collaboration. 

Evolution, as we explore new horizons offered by the spirit of human ingenuity in coming up with solutions for a low carbon economy. Understanding, that oil and gas will have to play a role for a good few decades yet, if not more, to ensure that energy poverty doesn't become the by-product of a slapdash rush to decarbonise. As for collaboration, need the Oilholic spell it out? Because if we don't work together, collaborate, partner and prepare for the road ahead, we will fail. 

Away from these pensive thoughts, this blogger also took time out on the final day to visit ADIPEC's wonderful Marine & Logistics Zone. It's here that the crew of ADNOC's support shipping fleet took one around a number of vessels currently being run on biodiesel, made from used and recycled cooking oil collected from restaurants around Abu Dhabi! Thank you to all the crew who spared their valuable time for the trip, and it was an experience the Oilholic will treasure. 

Paid a visit to @ADNOCGroup's biodiesel powered fleet of support vessels outside #ADIPEC2023's Maritime & Logistics Zone just before event ends. Had a very interesting talk / walk around vessel Ameer Alkouloub with the crew. Thank you! #OOTT #sustainablefuels #EnergyTransition pic.twitter.com/QNYC2yhwrf

— Gaurav Sharma (@The_Oilholic) October 5, 2023

With the time of departure here, this blogger would like to say that it was great to be back at ADIPEC after a three-year hiatus caused by the briefest of forays into the world of banking. It was great seeing old friends and making new ones in the buzz of this amazing event once again, and a privilege to be a part of it. Finally, and most importantly, my sincere thanks to the amazing team at dmg events who made it all happen and for their most wonderful hospitality. 

Well that's a wrap from Abu Dhabi folks. It'll be time for the big flying bus home to London Heathrow. Keep reading, keep it here, keep it 'crude'!

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To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: Sunset over Abu Dhabi NEC, the venue of ADIPEC 2023 © Gaurav Sharma 2023.

ADIPEC Day III: On partnerships, progress & more

As Day III of ADIPEC gathered momentum and crowds grew bigger still, global crude oil markets were greeted with the news that Saudi Arabia and Russia would maintain their joint oil production cuts of 1.3 million bpd until the end of the year. However, that didn't stop global oil benchmarks from sliding lower faced with an uncertain demand picture and an ever stronger US dollar. 

Inside the conference halls, and away from the din of the global crude market, various speakers called for heathy and meaningful cross-sector partnerships to open viable energy transition pathways. These may ideally involve stakeholders from across energy industries, financiers, technologists, governments, academia, and, of course, the end-consumer. 

As Niall Hannigan, Chief Financial Officer of Masdar, noted in a panel on fast tracking finance and prioritising investments for the energy transition. "Investors need scale. They want to see a clear policy framework within a geography, underpinned by a stable, transparent regulatory regime. Governments won’t attract investors alone – we need regulators, developers, development banks and commercial banks in the room together to create a programme. That collaborative conversation is essential.”

For his part, the Oilholic marked Day III with a tech heavy outing. It included concluding one's final speaking engagement at ADIPEC 2023's Digitalisation in Energy conference stream with a one-on-one discussion with Saravan Penubarthi, CTO of AiQ, on the future of cybersecurity solutions for energy systems. 

Wrapped up my moderating duties at #ADIPEC2023 with a final Digitalisation in Energy session earlier today with Saravan Penubarthi, CTO of AiQ, on the future of #cybersecurity solutions for #energy systems. Great session, lovely audience at @Chevron Hall 14 #EnergyTransition pic.twitter.com/WDIc77ekQk

— Gaurav Sharma (@The_Oilholic) October 4, 2023

With panel sessions concluded, yours truly also took some time out to have a walkabout in the wider exhibition area spread over several halls. 

Getting going on Day III of @ADIPECOfficial 2023. Here's @Yokogawa's display on #decarbonizing, @ABB_Energy's EV charging station mock-up (& @bakerhughesco talk on sustainable solutions) in the background #ADIPEC2023 #EnergyTransition #OOTT pic.twitter.com/Im6PLyz1p0

— Gaurav Sharma (@The_Oilholic) October 4, 2023

And...also said goodbye to Chevron's Boston Dynamics robotic dog(s) this blogger has been walking by for the past few days :) 

And that's all for Day III, more tomorrow! Keep reading, keep it 'crude'!

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To email: journalist_gsharma@yahoo.co.uk  

© Gaurav Sharma 2023. Photo: (1) ADIPEC 2023 exhibition floor, Abu Dhabi, UAE, (2) Chevron's Boston Dynamics Robotic Dogs © Gaurav Sharma 2023.