As governments and NOCs look to shore up their economies in the face of declining gas reserves, there’s a temptation to see this as simply an energy supply issue. Our experience, shared here, is that the reality is more far reaching. To adapt successfully, you need to change more than your energy mix: you need to change your mindset. Old certainties, assumptions and business models no longer apply. The talent lies in integrating new energy sources into your economy, not simply your energy system.
Highlights
- Every option forces choices around short-term supply to end users. This often leads to political choices between use cases and employment and expensive contract dispute settlements.
- Shaping a new era as an old one ends. This is a moment to reset for the future, not simply supplement the past, with a new strategy on the role of gas in your energy mix, the prioritisation of end users and the cost and time to implement solutions.
- There will be profound implications on your wider economy, energy infrastructure and operations. Supplementary gas or alternatives to existing gas supply introduce new, complex interdependencies and expose you to volatile global markets. The commercial and operational status quo will be transformed, meaning new technology and commercial agreements have to be established.
- Government support is critical. Governments can take a holistic view of the energy value chain. They are well placed to drive energy security, manage stakeholders’ vested interests and the challenge of declining gas supply in a way that market forces alone may not achieve.
- The impact is felt across your value chains. It is essential to integrate alternatives across your value chains during implementation. A combination of measures to address declining supply may be required.
Key components to manage declining gas supply
Source: Gas Strategies
- Natural gas is a finite resource and that limitation drives many established gas markets to look for alternatives as reserves decline
There are multiple options, from new exploration to demand management, gas importation and renewable power. The talent lies in coordinating competing agendas to make a clear-eyed decision on the option best suited to your economy and develop a robust gas strategy around this.
- Our clients are experts in their own energy systems, but need support when confronting the new and complex decisions that come with reimagining supply chains and exposure to global markets. We are their guide on the journey, helping them assess and access the options best suited to their particular context.
Download our Viewpoint to find out more about gas strategy development in response to declining supply
