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The Lego blocks of energy and geopolitics

Geopolitics is considered one of the top risks facing oil and gas companies today. When companies are unable to react to rapid, unexpected geopolitical change, the impacts on corporate and capital project performances can potentially be significant.

Managing geopolitical risks is challenging, and it’s likely that this issue will become even more complex and volatile in the future, as global instability is on the rise. More nationalistic and unpredictable political behaviour, the unexpected outcome of the Brexit vote, imposing of sanctions and terrorist attacks around the world point to heightened geopolitical challenges. There is also risks associated with the political instability in conflict areas such as Syria, Iraq, Venezuela, Libya, Nigeria and the Persian Gulf.

How can these geopolitical risks affect oil supply and pricing? On 30 April 2018, Helima Croft, Managing Director of RBC Capital Markets wrote in a commentary on CNBC:

“…Geopolitics has returned to the fore for a number of major producer states as well as the oil market generally in 2018. The oil market has tightened significantly in no small part due to the effectiveness of OPEC in draining bloated global inventories as well as the healthy demand outlook. A geopolitically driven supply disruption will now have a much more outsized influence, and price spikes can no longer be dismissed as things of the past…”.

Tuesday 28 August 2018, Mrs. Croft will share her insight on how geopolitics affect energy markets, in the conference session “The Lego blocks of energy and geopolitics”. The session will address how companies can mitigate the impact of geopolitical risks, by developing robust strategies to invest and operate in challenging environments.

Other featured speakers in this session:

  • Sir John Scarlett, Former Head of British intelligence, M16
  • Fu Chengyu, Former Chairman, Sinopec
  • Tatiana Mitrova, Fellow, Centre on Global energy policy, Columbia University
  • Michael Borrell, SVP Europe & Central Asia, Total
  • Mark Gyetvay, CFO and Deputy Chairman, Novate
  • Moderator: Jason Bordoff, Founding Director, Center on Global energy policy at Columbia University