#71 Navigating Norway's Energy Shift - A snap shot analysis with the founder of Rystad Energy (Jarand Rystad, Rystad Energy)
Aug 16, 2024
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Jarand Rystad, CEO and Founder of Rystad Energy, dives into Norway's energy transition. He discusses how geopolitical issues, like the Strait of Hormuz, impact oil prices. Rystad highlights how interest rates affect renewable energy deployment. He also explores the connection of small CO2 emitters to larger carbon capture infrastructures. The talk highlights Norway's ambitious renewable energy goals, including offshore wind and carbon capture technology, while navigating the challenges in the evolving energy landscape.
Geopolitical tensions and supply chain issues heavily influence oil prices, with current management strategies by OPEC Plus stabilizing the market around $80 per barrel.
The carbon capture sector is rapidly evolving with significant potential, though challenges in scalability and smaller emitter connections to existing infrastructures persist.
Deep dives
The Journey of Yaran Rista and Rista Energy
Yaran Rista's career trajectory began with his role at Entejo, where he gained valuable experience before transitioning to McKinsey as a consultant. While there, he recognized a market opportunity that the firm did not prioritize, prompting him to establish Rista Energy nearly two decades ago. Since its inception, Rista Energy has evolved into a significant consultancy, focusing on the entire energy landscape, including renewables and low-carbon technologies. The company has grown substantially, now employing over 800 people globally and shifting its focus from oil and gas to a broader range of energy solutions.
The Current State of Oil and Gas
The oil market is currently experiencing an oversupply, which is being managed by OPEC Plus through production cuts to stabilize prices, primarily around $80 a barrel. Historically, volatility in oil prices has been influenced by external factors, such as geopolitical tensions and global supply chain issues. Inflation and high interest rates have impacted the renewable sector more severely than oil, which is predominantly financed by equity. Analysts suggest that, despite potential conflicts in oil-producing regions, the current robust supply chain is unlikely to lead to drastic price surges.
Growth Opportunities in Offshore Wind and Solar Energy
Norway's offshore wind sector is poised for significant expansion, with an ideal target of three gigawatts per year in power production, providing a favorable business case for investors. However, the pace of development is slower than expected, highlighting the need for government support and clear communication of long-term ambitions. Solar energy, while growing faster globally, faces challenges in Norway due to its climatic conditions and the existing cheap hydro power supply. The ongoing development of solar installations on commercial buildings shows potential for gradual growth, but residential solar adoption remains limited.
Emerging Low-Carbon Technologies and Their Feasibility
The carbon capture, utilization, and storage (CCUS) sector is developing quickly, with numerous projects underway and potential to capture hundreds of millions of tons of CO2 by the early 2030s. However, challenges remain in scalability and deployment, especially for smaller emitters distant from established infrastructure. Meanwhile, direct air capture technology is still in its infancy; costs are high, but interest from corporations wanting to offset emissions is encouraging developments. Norway's geological features may provide opportunities for carbon storage, but further investment and feasibility studies will be necessary to realize this potential.
⭐ How does the Hormus straight between Iran and Oman influence oil prices?⭐ How do interest rates influence the deployment of Renewables?⭐ How will small CO2 emitters connect to larger CCS infrastructures?
If you are up to get a snap-shot round up of the Energy Transition in Norway then check out this new episode with Jarand Rystad, the CEO and Founder of Rystad Energy. . Enjoy the show 😊😊😊.
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