Oil and gas market leaders, politicians and academics gathered at the
World Energy Congress in Istanbul, Turkey, in mid-October to discuss
the current state and future perspectives of the global energy
ecosystem.
Participants predicted global energy demand will more than double by
2050, establishing new challenges for the global market – not only in
terms of meeting the needs of consumers and industries, but also in
minimising any negative impacts on the environment. Undoubtedly,
renewable energy can address this.
According to Congress participants, renewables will have the biggest
growth potential over the next three years. In the foreseeable future,
however, the fossil fuels are destined to form the basis of global
energy sources providing most of the energy needs.
Leonid Fedun, the vice president of Strategic
Development at LUKOIL, one of the largest vertically integrated oil and
gas companies in the world, with headquarters in Russia, said: “Advanced
technologies such as electric cars and renewable energy sources will
grow, but will not displace the existing ones. The emergence of new
energy never led to withdrawal of other energy sources from the market”.
The importance of fossil fuels, in conjunction with the instability
of the hydrocarbons market and the need to meet the ever growing demand
for ecological efficiency, has put the spotlight on oil and gas
companies. In order to succeed in the market, the oil and gas companies
need to adapt quickly to the new conditions with a diverse portfolio of
projects and a competent development strategy.
Meanwhile, the low oil prices over the last two years have resulted
in the reinvigoration of the industry where only strong and
active players with viable projects survive. As such, the
LUKOIL Group is of a particular interest. Despite the difficult economic
situation and unstable socio-political conditions, the company has
managed to consolidate its position as a leading global player. It
is working on projects across four continents, in more than 40 countries
– from Siberia to Iraq and from Norway to Mexico.
A publicly traded company with a staff of more than 100,000, it
controls more than 2% of oil production and about 1% of proved
hydrocarbon reserves worldwide. LUKOIL’s vertically integrated model
includes all aspects of the oil and gas market, from geological
research to selling finished products to consumers. Its diversified
portfolio has helped LUKOIL reduce the risks posed by market volatility
and socio-political changes.
At the same time, LUKOIL has demonstrated a high level of corporate
social responsibility, continuously reducing the company’s impact on the
environment, lowering waste volumes and keeping up to date with work
safety principles.
During its history, LUKOIL has always been in the
vanguard of scientific and technological progress. It has achieved
prominent technological advancements making these one of the company’s
key success factors. For example, during this past year alone, the
company invested an estimated $800m in environmental protection
programmes, employing efficient environment-friendly technologies in all
its projects.
LUKOIL was one of the first companies in the market to introduce a
so-called “zero discharge” principle in its offshore projects in the
Baltic and Caspian seas. This principle implies that no pollutants are
dumped into the water. LUKOIL’s technologies and experience in this
field were recommended by HELCOM and the World Wildlife Fund as a
model for environmental standards in offshore oil production with a
recommendation for fixing them as legal requirements for similar
projects in the future.
“The fuel and energy complex is becoming more compound and integrated
system where players such as LUKOIL, are not just oil, but energy
companies that develop projects in the traditional and alternative
energy,” said Fedun.
The company is certain that renewable energy will have a growing
agenda. For now, LUKOIL covers the energy demand
of its refineries in Bulgaria and Romania and nearby residents with
solar and wind power. At Bulgarian Burgas, electricity from LUKOIL’s
photovoltaic power station is delivered to the national grid with
a preferential tariff approved for 20 years. This is indicative of the
economic and environmental benefits gained from the use of renewable
energy for both company’s operation and local communities.
This year, LUKOIL celebrates its 25th anniversary. The company’s
history and experience stands out as a success story – an example of how
a company can move forward despite the turbulent situation in the
market and global geopolitical instability.
https://www.neweurope.eu/article/oil-gas-success-story-shines-turbulent-market/