Optimising energy sourcing and consumption in the oil and gas sector

2018 ◽  
Vol 58 (2) ◽  
pp. 538
Author(s):  
Dmitry Danilovich
Keyword(s):  
Renewable Energy ◽  
Energy Supply ◽  
Oil And Gas ◽  
Renewable Energy Sources ◽  
Competitive Tendering ◽  
Oil And Gas Producers ◽  
Own Gas ◽  
Supply Costs ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Oil and gas companies are fairly large users of electricity, and the rising cost of electricity has become a major issue for the sector. Oil and gas producers often develop their own gas-fired generation plants and consume their own gas as generation fuel. An increasing price of gas in the domestic market has resulted in a corresponding increase in the opportunity cost of utilising gas for power generation. Declining costs of renewable energy and battery storage open opportunities for oil and gas companies to reduce the consumption of their own gas and source electricity at a lower cost, as well as achieve their sustainability objectives. Gas-fired generation is expected to continue to play a key role in ensuring the reliability of electricity supply. However, the percentage of renewable energy in the supply mix can be increased significantly without compromising the reliability. This paper will focus on the opportunities that exist for oil and gas companies to reduce their overall energy supply costs through a differentiated approach considering renewable energy sources and batteries, competitive tendering of energy supply requirements, and attracting capital from independent power producers and institutional investors. The paper will draw on lessons learnt from other energy intensive businesses in Australia.

From hydrocarbons to electrons: creating new opportunities for the oil and gas sector

2018 ◽  
Vol 58 (2) ◽  
pp. 529
Author(s):  
Bernadette Cullinane ◽  
Michael Wood ◽  
Barry Ladbrook
Keyword(s):  
Business Models ◽  
Oil And Gas ◽  
Greenhouse Gas Emission ◽  
Renewable Energy Sources ◽  
Operational Performance ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil And Gas Sector ◽  
Rapid Emergence ◽  
Lower Carbon

Today’s energy and resources companies must address many challenges to their traditional business models including the rapid emergence of available and economic renewable energy sources, ever tightening greenhouse gas emission policies and increased stakeholder expectations around transparency. While there is uncertainty regarding the impact of these developments, enormous opportunity exists for companies to forge pathways to a decarbonised future while at the same time creating new markets, products and services and increasing revenues. Several leading Australian resources companies have recently embarked on programs to transition to a lower carbon and more diversified energy portfolio. These initiatives focus on integrating alternative forms of energy across value chains, making energy consumers central to their business models and increasing energy security for their companies and the country. This paper discusses the drivers underlying these challenges, draws on case studies of how oil and gas companies are managing their journey, considers the impact such programs on the companies’ financial and operational performance and outline some implications and possible approaches.

scholarly journals Development of Optimum Portfolio for Investment in Oil & Gas Sector (Investor’s View)

2019 ◽  
Vol 15 (2) ◽  
pp. 110-130
Author(s):  
Sumeet Gupta ◽  
Sourav Basak
Keyword(s):  
Renewable Energy ◽  
Crude Oil ◽  
Oil And Gas ◽  
Solar Power ◽  
Stock Exchange ◽  
Risk And Return ◽  
Markowitz Model ◽  
The World ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

With establishment of International Solar Alliance in New Delhi and due to the push given to renewable energy by the current government India has opened new dimension for innovation, investment and industry. This government has made a significant effort to push India’s renewable energy ambition. Due to this push India is now the 4th largest wind power producer in the world only behind of China, USA & Germany. India has made record addition to the solar power capacity in last 5 years. Although the recently concluded Financial Year (FY19) has shown a dip in installation of solar power with only 6500MW installed in the year. With this trend in the country the researchers are focusing on the scenario of renewable energy in India. So, the papers which are recently made available in the public domain are concerned with the current scenario. The surge in renewable energy is a good sign for the nation as renewable is the future. Though the rising demand of the fastest growing economy of the world can’t be satisfied with this growth in renewable energy. In simply words, the growth of the renewable energy is not enough to sustain the growth of the Indian economy. This statement is supported by the growing dependence of India on imported crude oil. Dependence of imported crude oil has gone up to 83.7% in Financial Year 19 from 82% in FY18. Hence, it can be said that the oil and gas sector is not getting the required focus. Development of an optimum portfolio to minimize risk and maximize return is required before taking any investment decision. Portfolio optimization is required when you think of investing in oil and gas sector as its one of the most volatile sectors. This study is focused on developing an optimum portfolio for investment in oil and gas sector in India. Hence, 11 companies listed on Bombay Stock Exchange is selected for the study. Risk and return of all the 11 companies are calculated. The companies are ranked according to their risk. Weightage of investment is assigned to the top 5 companies (with lowest risk). The study has been conducted to construct an optimum portfolio of oil and gas companies using Markowitz Model. The study has been conducted on individual securities listed in Bombay Stock Exchange (BSE). The objectives of this study are: Risk and return analysis of individual securities of oil and gas companies in India listed with BSE. To identify the opportunities of investment in oil and gas companies and development of an optimum portfolio for investment in these companies. To construct optimal portfolio using Markowitz Model. To check whether Markowitz Model performs well in Oil and gas companies well in BSE or not.

scholarly journals Cooperatives in the field of energy supply of agriculture (taking into account international experience)

2019 ◽  
Vol 81 (1) ◽  
pp. 470-479
Author(s):  
V. M. Kruchinina ◽  
S. M. Ryzhkova
Keyword(s):  
Renewable Energy ◽  
Rural Areas ◽  
Energy Supply ◽  
Oil And Gas ◽  
Universal Access ◽  
Sustainable Energy ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Transfer Energy ◽  
The World

The sustainable energy goals are vectors for universal access to affordable, sustainable and modern energy for all. The aim of this work is to study the structure of the world energy supply, including Russia, and the role of energy cooperatives abroad in the past and present on energy supply to agriculture and rural areas, and the possibility of applying their experience in the Russian economy. The authors used observation, abstraction, analysis and synthesis, as well as dialectical and logical methods. Having studied the data of domestic and foreign statistical institutes, the authors came to the conclusion that non-renewable energy sources make up the largest share in the world. In addition to the economical use and efficient conversion of fossil raw materials, the focus is increasingly shifting to the use of renewable energy sources that reduce dependence on oil and gas, in particular in countries that do not have their own reserves, and therefore ensure sustainable energy production. At the same time, the global energy transition to energy resources, which will be available to all, can be carried out with the help of energy cooperatives. In Russia, the capacity of renewable energy facilities is also constantly growing. The peculiarity of the country is the need to transfer energy over long distances with significant wear of transmission networks, a deep monopoly of the market, and, consequently, high tariffs for consumers. One of the ways to solve the problems of affordable energy availability for agriculture, the authors see the creation of energy cooperatives. In the article the approximate model of energy cooperative is offered, their classification is given. The results of the study will help to create competition in the energy market, optimize the budgets of the village and reduce costs in the process of commodity circulation of agricultural products to the final consumer.

European Energy Security

2017 ◽  
Author(s):  
Almas Heshmati ◽  
Shahrouz Abolhosseini
Keyword(s):  
European Union ◽  
Renewable Energy ◽  
Energy Policy ◽  
Energy Security ◽  
Energy Supply ◽  
Alternative Energy ◽  
Renewable Energy Sources ◽  
Relevant Literature ◽  
Primary Energy ◽  
The European Union

This chapter reviews relevant literature on the current state and effectiveness of developing renewable energy on energy security in general, and on energy security in the European Union (EU) in particular. The chapter elaborates on primary energy import sources, possible alternatives, and how energy security is affected by the sources of supply. It also gives an analysis of the effects of the Ukrainian crisis, the isolation of Iran on diversification sources, and on European energy security. It examines EU’s energy policy, analyses the best motivation for a new energy policy direction within Europe, and suggests alternative solutions for enhanced energy supply security. The aim is to suggest suitable solutions for energy security in Europe through energy supply diversification. Supply diversification includes alternative energy corridors for reducing dependency on Russia as a supplier and enhancing the power generated by renewable energy sources under the European Union 2020 strategy.

scholarly journals Portfolio optimization of power plants by using renewable energy in Iran

2020 ◽  
Author(s):  
Seyedeh Asra Ahmadi ◽  
Seyed Mojtaba Mirlohi ◽  
Mohammad Hossein Ahmadi ◽  
Majid Ameri
Keyword(s):  
Renewable Energy ◽  
Portfolio Optimization ◽  
Energy Supply ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Modern Society ◽  
Sustainable Growth ◽  
Electricity Sector ◽  
Capital Costs

Abstract Lack of investment in the electricity sector has created a huge bottleneck in the continuous flow of energy in the market, and this will create many problems for the sustainable growth and development of modern society. The main reason for this lack of investment is the investment risk in the electricity sector. One way to reduce portfolio risk is to diversify it. This study applies the concept of portfolio optimization to demonstrate the potential for greater use of renewable energy, which reduces the risk of investing in the electricity sector. Besides, it shows that investing in renewable energies can offset the risk associated with the total input costs. These costs stem from the volatility of associated prices, including fossil fuel, capital costs, maintenance, operation and environmental costs. This case study shows that Iran can theoretically supply ~33% of its electricity demand from renewable energy sources compared to its current 15% share. This case study confirms this finding and predicts that Iran, while reducing the risk of investing in electricity supply, can achieve a renewable energy supply of ~9% with an average increase in supply costs. Sensitivity analysis further shows that with a 10% change in input cost factors, the percentage of renewable energy supply is only partially affected, but basket costs change according to the scenario of 5–32%. Finally, suggestions are made that minimize risk rather than cost, which will bring about an increase in renewable energy supply.

Sign in / Sign up

Export Citation Format

Share Document