Investments in Energy: The Case for Oil and Gas [In a Nutshell]

Joining William Powell and Joseph Murphy of Natural Gas World, Lewis McDonald discusses what the future now looks like in terms of investments in energy, namely oil and gas. Given the burgeoning global population, rising standards of living and climate goals, there has been a serious increase in awareness and concern in global climate change around the world. The environmental, social and governance (ESG) agenda is now at the top of many companies’ priorities though currently appearing to mainly affect companies in Europe and less so in Asia. Prior to the outbreak of the Covid-19 pandemic, ESG was the major issue being discussed in board rooms. With about 12,000 entities, together controlling around $14 trillion, divesting or wanting to divest from fossil fuels primarily based on consumer demand and consumer sentiment and where the laws and regulation are heading, we have seen rather a chilling effect on investment in the oil and gas sector – and the big question is ... where does it all go from here… Read more

Future Cities Series: Emissions down in lock-down ⁠– how can we lock-in the climate gains?

We are well into the pandemic and lockdown in many regions, so it is natural to ask the question, “when will this end and when will we return to normal”... The problem is, “normal” was not sustainable, in so many ways. Those of us in the energy industry particularly know that to be true. The “business as usual” scenario put out by the International Energy Agency in its 2019 World Energy Outlook does not make for happy reading. It had us on a crash course towards over three degrees of temperature increase due to carbon dioxide emissions from fossil fuel consumption. The IEA also has a “sustainable development scenario” which keeps us within the Paris limits of 1.5 degrees. The only problem is that, according to the OECD, we would need to spend €6.3 trillion per year globally in each of the next 10 years for us to get there. To give you a feeling for how much money that is, the total size of the global economy is estimated at around $86 trillion. And so the challenge seems virtually impossible. Read more

Commercial Court interprets indemnity clause in SPA to exclude damage which occurred pre-execution

The Commercial Court recently dismissed a claim to recover the cost of repairs to two offshore transmission cables linking the Gwynt Y Môr offshore wind farm in North Wales with the National Grid, which the claimant had sought to recover under an indemnity for “Pre-Completion Damage” in a business sale agreement: Gwynt Y Môr OFTO PLC v Gwynt Y Môr Offshore Wind Farm Ltd [2020] EWHC 850 (Comm). Although the indemnity did not expressly state that “Pre-Completion Damage” was limited to damage occurring after the agreement was signed, the court... Read more

A SPECIAL, GLOBAL, EDITION OF THE EUROPEAN ENERGY HANDBOOK

We are delighted to present an update to our European Energy Handbook. The European Energy Handbook usually reports on regulatory, legal and market developments in the European energy sector. However, these are not usual times as the COVID-19 pandemic is creating significant health, social and economic challenges worldwide, forcing governments and businesses to critically assess the impact on their people, operations and governance. In many jurisdictions, governments have made available support schemes for businesses in an effort to mitigate the consequences of the pandemic on their businesses. In this special edition, we cover 52 jurisdictions across the globe. Read more

EUROPEAN ENERGY HANDBOOK 2019 – 2020

Now in its eleventh edition, the European Energy Handbook 2019 - 2020 provides an in-depth survey of current issues in the energy sector in 42 European jurisdictions.
This year's edition focuses on recent legal and commercial developments in each jurisdiction, and covers issues such as the Energy Union, the adoption of the latest package of EU energy legislation, and the 'Clean Energy for All Europeans' bundle of directives and regulations updating the EU's energy policy framework to facilitate the decarbonisation of the sector and the transition towards cleaner energy. Climate change, the energy transition and associated challenges are...
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ACT RENEWABLE ENERGY REVERSE AUCTION

Following on from the four reverse auctions held between 2012 to 2016, the ACT Government has announced a new renewable energy reverse auction (the Reverse Auction) to “safeguard the delivery of sourcing 100% renewable electricity by 2020 from within the ACT or across the National Electricity Market”.
On 8 November 2019, the Minister for Climate Change (the Minister) determined that...
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A LEADERSHIP ROLE FOR SUPER FUNDS IN SOLVING AUSTRALIA’S ENERGY TRILEMMA?

On 29 June 2019, Industry Super Australia (ISA) released its Modernising Electricity Sectors Discussion Paper (the Paper) which seeks to assist super funds in understanding and navigating the regulatory uncertainty in investing in the Australian electricity sector. More specifically, it aims “to provide decision-makers and other long-term investors with a framework for thinking through lumpy investment decisions” in the electricity sector. The release of this Paper is particularly timely given that, in June of this year, IFM Investors and ... Read more

A NATIONAL HYDROGEN STRATEGY: SHAPING POSSIBILITIES FOR AUSTRALIA’S HYDROGEN ECONOMY

Hydrogen is a hot topic in the global energy sector – and Australia could be a key player in the emerging international market.A recent report commissioned by the Australian Renewable Energy Agency (ARENA) examined the hydrogen export opportunities for Australia, estimating that by 2040 global demand could be valued at between $2.6 billion and $13.4 billion. The Australian hydrogen industry could have an associated domestic economic contribution of over $4 billion by 2040, as well as opportunities for ...
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