Four Key Takeaways from the SIEW Energy Insights Sessions.
Oil Demand Could Peak as Early As 2020
With growth in GDP globally at around 3.6 per cent per year, oil demand has increased and crossed the milestone of an average 100 million barrels a day. However, growth in oil demand is slowing with the shift to electrification for transportation, renewable energy and growing societal awareness for sustainability, such as using recyclable resources and non-oil-based products. Randolph Bell, Director, Atlantic Council Global Energy Center, shares that based on the forecasting models that his organisation has developed, oil demand could peak as early as 2020 or as late as 2040, before gradually decreasing.
Hydrogen to Play A Bigger Part as The Energy Landscape Transforms
Keisuke Sadamori, Director, Energy Markets and Security of IEA, said: “Hydrogen can be cost-effective in the future even with fossil fuels.” Hydrogen can help overcome many difficult energy challenges faced today:
- Integrate more renewables as an energy storage medium;
- Decarbonise “hard to abate” sectors such as steel, chemicals, ships and planes;
- Boost energy security. Declining cost of solar PV and wind makes them a low-cost source for hydrogen production with production costs as low as US$1.60 per kilogram of hydrogen.
Managing the Energy Transition
Masaomi Koyama shared the importance of energy transitions that realise the “3E+S” concept – Energy Security, Economic Efficiency and Environment without compromising Safety – as we transform our energy systems.
This was agreed upon at the G20 Karuizawa Ministerial Meeting in June 2019. Mr Masaomi Koyama also emphasised the value of international cooperation and innovation as key enablers for energy transition.
More can be done for energy conservation such as making the energy consumption efficiencies of industries and products more visible, enhancing the efficiencies of thermal power generation and developing a natural gas market.
Business Models Needs to Evolve along with Energy Transformation
Nawaz Peerbocus, Director, Energy Transitions and Electric Power, at King Abdullah Petroluem Studies and Research Center (KAPSARC), shared that the future of electricity markets will need to transform as the grid changes. He added that, “a new business model has to be designed for consumers based on their willingness to pay and risk tolerances.”
Research has suggested that this can be achieved by the creation of an energy insurance market where utilities charge a fixed fee for guaranteed services instead of using kilowatt hours.
Source: SIEW 2019
ABOUT SINGAPORE INTERNATIONAL ENERGY WEEK (SIEW) 2019
The Singapore International Energy Week (SIEW) is an annual platform for energy professionals, policymakers and commentators to share best practices and solutions within the global energy space.
First held in 2008, SIEW is organised by the Singapore Energy Market Authority (EMA), a statutory board under the Ministry of Trade and Industry. Our main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore.
The theme for the 12th annual SIEW is, “Accelerating Energy Transformation” which calls on global energy stakeholders to collaborate and accelerate efforts towards a more sustainable energy future. This is important given rapidly expanding energy demand, especially in Asia, and the increased electrification of transportation, industries and buildings. At the same time, there continue to be concerns over meeting climate change commitments, even as renewable energy investments hit record highs.
Anchor events at SIEW include the SIEW Opening Keynote (SOK) and Singapore Energy Summit (SES) which feature high-level keynotes and panel discussions around this year’s theme. Other key events include the Singapore-IEA Forum, SIEW Energy Insights, SIEW Thinktank Roundtables and In Dialogue with Youth. SIEW partner events, the Asia Clean Energy Summit, Asian Downstream Summit, and Gas Asia Summit provide an opportunity to focus in on industry-specific topics.