Attracting investors back: What model for US E&Ps?
Even before the latest demand downturn, the US E&Ps were facing the dual challenge of poor returns and investors dissatisfaction with the business model. In this CERAWeek Conversation, Mark Viviano from Kimmeridge Energy Capital Management discuss the need to align management and investors interests to help recapitalize the US oil and gas industry. His argument ids that the business model of shale was based on a premise of resource scarcity, which then drove capital allocation decisions, executive compensation schemes and valuation methodologies He believes that the sector now has to strongly favor returns vs growth, and that re-investments have to be capped in order to reduce the cyclicality of returns, and provide shareholders a horizon for returning capital throughout dividends and buybacks. He remains optimistic that despite the crisis the US shale business is facing right now, future returns can be attractive if the appropriate actions are undertaken by the industry.
In All Strategic Dialogues
Play video Multiple Dimensions of Energy Transition: India and the world
Multiple Dimensions of Energy Transition: India and the world
(November 10, 2020) IHS Markit Vice Chairman Daniel Yergin, Chief Energy Strategist Atul Arya, and Senior Vice President for Global Energy Carlos Pascual unpack the confluence of tech, geopolitics, and the New Map of international energy.
Play video Distributed Energy: Balancing flexibility, reliability, and resilience
Distributed Energy: Balancing flexibility, reliability, and resilience
(August 11, 2020) Power industry leaders examine the technologies and business models that are driving the market for distributed energy resources and transforming the way customers use and generate electricity.
Play video Growing Share of Gas in India's Energy Mix: What is realistic?
Growing Share of Gas in India's Energy Mix: What is realistic?
(November 17, 2020) By 2030 India aims to increase the share of gas in its energy mix from 6% to 15%. International gas and coal executives discuss the impact of this shift and the dynamics shaping the global gas market over the long-term.
Play video More Energy, Lower Emissions: The dual challenge
More Energy, Lower Emissions: The dual challenge
(November 10, 2020) In this CERAWeek Conversation the technology heads of ADNOC and PETRONAS examine the strategies and innovations that are tackling the dual challenge of reducing emissions while providing the world with more energy.
Play video New Map of Energy for India
New Map of Energy for India
(November 12, 2020) In this India Energy Forum session, Rajiv Kumar, Vice Chairman of NITI Aayog, discusses India’s economic recovery and explains government initiatives to strengthen local value chains and innovate in a low-carbon economy.
Play video Innovating for Carbon-Free Power
Innovating for Carbon-Free Power
(August 6, 2020) Industry executives discuss the path to decarbonize the power sector. They address the carbon price debate, concerns over nuclear, the gains from energy efficiency, and the impact of COVID-19 on regional consumption patterns.