Why Policy Matters When it comes to Energy Policy
At the Sixth OPEC International Seminar, there seems to be a common theme among the supermajors on the importance of putting in place sound policy that Sustains Investment, Innovation, and Cooperation.
From Rex W. Tillerson Chairman and CEO, Exxon Mobil Corporation speech He said, 'Government has a special role to play because they are the only ones who can provide access to resources. With access and appropriate oversight, the industry can invest, expand supplies and simultaneously contribute to economic growth and environmental stewardship.
For BP, Bob Dudley, Group chief executive emphasized the importance of partnership based on trust as key to overcoming the new $60 world. He said, 'Governments naturally want as much as possible of the value of their country's natural resources to accrue to their citizens. They also want to create jobs, build skills and improve the quality of life for the public - which includes access to energy.
But IOCs need sufficient incentives to invest scarce resources in these projects. This means finding a point of balance that benefits both. And that balance may need to be reset as investments grow and circumstances change.
Not too far from this theme, API's President Jack Gerard called on all to vote4energy come 2016 election. According to him, ''American energy policy should focus on building upon the gains that have been made to ensure that America remains a positive force on the world energy market and that all Americans benefit from their nation's emergence as a global energy leader'.
Hence the need to demand that elected representatives reject the outdated anti-energy political orthodoxy of those who advocate for a regressive energy policy that keeps fossil fuels in the ground and demands and expects the society to embrace a substantially lower standard of living to satisfy their 'off-fossil fuel' agenda.
Just as a recent study by Wood Mackenzie shows the potential reward of pro energy development policies and the possible long-term economic harm that could result from many of the regulatory constraints and barriers to energy production, transportation and refining imposed or under consideration by the government.
In the meantime, world energy outlook put forth by BP shows that there are three main forces that are helping to shape the global energy landscape. You want to read more about this and many more insightful news from global energy leaders and more- in this news pack edition.
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