BG CEO Speaks at IP Week

BG Group’s CEO Chris Finlayson was the guest of honour and speaker at the International Petroleum (IP) week dinner, held in London last night.

This year is the centenary of the inaugural meeting of the Institution of Petroleum Technologists, the forerunner of the Energy Institute, which organises IP week.

Reflecting on the period from 1914 to 2014, Chris highlighted some of the key achievements in the oil and gas sector.

“Our industry is one of entrepreneurialism, risk management, collaboration, engineering, innovation and flexibility,” he said.

Global diversity of supply

Chris also looked to the future, focusing on gas supply and demand. Commenting on how unconventional gas reserves looks set to transform global diversity of supply, he spoke about the US, which will soon become self-sufficient in natural gas and a potential exporter of LNG.

“We are all aware that the United States has the potential to export potentially high quantities of LNG. More than 260 mtpa of export capacity has been proposed.But there is a lot of uncertainty on exactly how much will actually get built, and to what extent and how quickly this might change the global LNG trade. What is clear is that LNG is already paving the way for more sustainable transport solutions in the United States. The giant logistics firm UPS is switching approximately 1,000 of its heavy trucks to LNG and investing $50m in its network of fuelling stations.”

Future demand

On the gas demand side, Chris explained that BG Group sees strong growth with the market expected to grow at around 2.4% per annum to 2025. The greater availability and increased mobility of gas is making this possible.

Singling out China, he added that by 2030, BG Group expects the country will account for almost half of all the growth in energy consumption.

“This is a staggering rate of growth,” he observed. “Looking at it another way, between 2014 and 2030 China’s total annual energy consumption will increase by an amount equivalent to almost four and half times what Japan consumes annually.”

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Press Release, February 20, 2014; Image: BG