Hill+Knowlton Strategies

As some of you know, International Petroleum Week took place in London this week.

For the second year in a row, the risk of supply disruption was the dominant theme at the conference, where the main worry was Iran (a shift from Libya in 2011).

The event, which brought together influential traders and executives in the energy industry, led to many talks and forecasts on the price of oil – with some ventured forecasts hitting $150 a barrel or higher dependent on the large supply disruption involving Iran influences the energy market.

The FT reports that Wall Street banks briefing their clients during IP Week have painted a bullish outlook. However, Christophe de Margerie, Chief Executive of French oil group Total, tried to calm the market by claiming it had had no trouble finding alternative sources of crude since it ceased trading with the country earlier this year. That message was supposedly reinforced by the International Energy Agency.

Another topic of interest at the conference was minister of state for energy at DECC, Charles Hendry’s opinion on the Coryton refinery.

The Global technology Forum published an interview with the minister. “We think Coryton has a very real future in the UK economy. Of the Petroplus refineries, it’s probably the stronger one and therefore while there is clearly  challenges facing the refining sector across the whole of Europe, Coryton is in a strong position to survive in the future.”

He added that they are currently preparing a strategy paper which will be published in Autumn of this year about “how we view the importance of that industry and we have an organisation called the Downstream Oil Industry Forum which brings together industry and government to work on that.”

Other highlights of this year’s programme included a focus on Russia, The Arctic and CIS, with a presentation from Jonathan Kollek, Senior Vice President of Sales, Trading and Logistics at TNK-BP, and a talk from Paul Corcoran, Financial Director at Nord Stream AG about Nord Stream’s ability to help companies meet European Gas Demand.

There was also a focus on deep-water offshore with presentations from Ali Moshiri, President, Africa and Latin America E&P Company at Chevron  and a discussion on partnerships with Kjell-Erik Oestdahl, Executive Vice President Operations at  Schlumberger.

We will be closely monitoring the shift in crude oil prices over the coming months as the relationships between Iran and other European states develop.

Now that the dust (snow?) has settled following this year’s World Economic Forum, I wanted to shed some light on what I’ve learned about the annual Alpine gathering.  I’ve had had the opportunity to attend the Forum three times; the past two years working with my colleague Lalu Dasgupta on communications for Brand South Africa.

“To fail to plan is to plan to fail…”

If there’s one thing I’ve learned about WEF, it is to go with the flow.  I’ve learned this the hard way, causing myself undue amounts of stress and panic trying to control a carousel of changing diaries, changing venues, changing agendas. Yes, of course one needs a plan, a schedule, a programme. But plan for that plan to fail, and you’ll be a step ahead of the game.  One of the most beautiful things about WEF (besides the stunning views) is the serendipitous encounters and impromptu meetings that happen on the Promenade, in the corridors of the Congress Centre and over a nightcap in the bars. You can’t plan for these, but if you plan to be flexible, you’re guaranteed to have a more productive WEF than if you insist on keeping to a schedule.

My chance encounter with the Mayor of London

Getting on the list

Remember that bit about planning? Ignore it. Just kidding – but if you’re looking to hire a venue for an event you best move quickly! Again, I speak from experience. The best chance you’ll have at securing a venue is to book it in for the next year while you’re in Davos.  The venues tend to have a “grandfather clause” with all their bookings, so book early…or at least get on the waiting list.  South Africa moved from the bar at the Belvedere to the wonderful Kirchner Museum this year, and when we were scouting for new space I was informed that one space had been used by the same company for more than 10 years, and there were wait lists six-deep for some of the other spaces. I’ve now been to most of the venues in Davos – either on reconnaissance missions or for events – so if you have any questions or need suggestions, drop me a line at sjurkowsky@hkstrategies.com

It can’t all be doom and gloom…have a beaver tail

Canadian delicacy on offer

For such a sleepy little town, Davos offers a wealth of branding opportunities.  While WEF is serious event hosted in a particularly gloomy context, there’s still a flock of companies and countries looking to showcase their wares, build their brand and attract investment.  My favourites include the branded buses (like these from South Africa!), the Canadian Beaver Tails pop-up pastry shop and Mexico’s fiesta night.  For years, the South African delegation has shown their pride by wearing scarves in the national colours, and these have become such a hot commodity with WEF guests that more than 300 were handed out this year!

Increasingly, it’s the countries that are leading the way at WEF, from emerging markets to G8 nations – and the ones that do it best are the ones that approach their branding with a little creativity and tongue-in-cheek humour.

President Zuma visits the South Africa Business Hub and meets with the Brand South Africa team (all proudly wearing our scarves!)

I’m already looking forward to WEF 2013, with hopes that we’ll be gathering in a more upbeat climate. If we’re not – and that’s likely to be the case – I’ll still be there wrapped in my South African scarf, ready for more serendipitous encounters and the chance to learn, debate and discuss the continuing global transformation.

It seemed appropriate that a blog post today should focus on Valentine’s Day and love.  But how to link this to energy?  After a quick trawl of the web it seems that it’s not actually as hard as you might think…

Here are my top five picks:

1. Energy Saving love ideas:

The Energy Saving Trust has listed a number of green ideas for showing “not only your loved one, but also the planet” how much you care!  These range from volunteering to insulate the loft, to making recycled gifts, to a simple early night under the covers (purely so you can turn down the thermostat and save on the heating of course!).

2. A romantic trip on the EDF Energy London Eye:

Possibilities are endless with the EDF Energy London Eye (cl).  On sale today are a ride in a Valentine’s Cupid Capsule, a Valentine’s Champagne Experience, or a Red Rose Experience.  Take your pick.

3. Too much smog = no chance of a snog:

Greenpeace East Asia is highlighting air pollution in China today with a Valentine’s Day campaign that shows a poor Chinese couple who can’t kiss because they need to wear air filter masks.

4. Yorkshire loving:

Energy advice firm Yorkshire Energy Services has identified a number of money and energy saving tips on its Energy Help blog – candlelit dining to save on the electicity; a low-cost, low-carbon walk in the moonlight; potted plants vs cut roses.  (I particularly like the last one!)

5. Anti-Valentine poem to energy companies:

Perhaps my favourite of the lot - and for those of you who find ‘the day of love’ a bit too sickly sweet – take a look at environmental site edie.net.  It’s running a story today about a break up poem by Matt Harvey that’s been sent by the ombudsman to energy companies.  The light hearted message is aimed at “encouraging energy companies to work towards healthier relationships with their customers” – suggesting that energy companies should be doing a bit more to woo their customers.

Any other crackers you can think of?

In the Energy and Industrials team we are partial to some tech prowess, especially if that technology is geared towards saving energy, saving money or looks particularly nifty (remember those Back to the Future self-lacing shoes Mr Chris Pratt lusted after?).

Detailed here you’ll find just a few of the weird, wonderful and stylish energy-saving or sustainable products and gadgets that I find quite snazzy.

Cardboard fun



You might not be able to use it outside, but hopefully cardboard furniture which is 100 per cent recyclable will soon be all the rage. From beds to work seats all you have to do is fold it together and voilà!

Sun in  a jar

Solar-powered lights have always been popular for guiding people up garden paths the world over  but not many people have ventured to using them indoors which is why I like this next product; the Sun Jar. Just sit it on your window sill during the day when you’re at work and then use in the evening when you come in.

Speakers

Personally I love these acoustic iPod speakers which are made from reclaimed wood and old instruments; let’s face it they would look great on anyone’s mantelpiece.

Keeping warm (yes that is a picture of Matt Damon in a ’slanket’)

From my days living in a drafty student house it was either a choice of wearing a blanket around the house at all times or trying to find an inexpensive way to save heat. After exhausting all the usual tips (foil behind radiators, draft protectors on doors) we found the most effective product we used was window insulation glaze. It costs around six pounds and is basically sticky backed plastic for your windows which really does work!

These are only some of the products I have come across recently but it is clear to see that eco and sustainable goods are a growing market with websites dedicated to selling everything from homemade wind turbines to recycled cushions made from plastic.

Which? The consumer affairs group today launches the Big Switch campaign, designed to get the more than six in ten households who have never switched their energy supplier to consider doing so. Featured today in The Mirror and The Sun the campaign is encouraging consumers to submit their (non-binding) interest in order to collectively negotiate a better deal from the large energy suppliers.

The timing couldn’t be better and the Which? team deserve credit for launching in the middle of a cold snap when interest in energy prices is set to peak again. It is also just days into the term of new Secretary for Energy & Climate Change, Ed Davey, who began his Cabinet career by suggesting his focus would be on enabling consumers to get a better deal from their energy supplier. 

Which? Has long been a trusted consumer brand and I remember blogging last year about CBI research around the Green Deal that showed Which? to be the most trusted brand by consumers looking for advice. This campaign is in my mind overdue and I hope that it will be successful. I’ve signed up this morning and it was dead simple. Congratulations to Which? for kicking it off.

They will though face an uphill struggle in encouraging consumers to make the switch if the latest research from Ofgem is to be believed. In a report available on the regulator’s website they review attitudes to switching and new devices aimed at simplifying bills. It’s clear from the opening of the report though that the vast majority of energy users fall within a ‘disengaged’ category of people who don’t understand their bill, don’t appear to want to understand their bill and/or don’t feel there is much value in better understanding their bill because ultimately they do not trust that their time and interest will save them money. As I mentioned the Which? campaign faces and uphill struggle, but they have made the right start. I also just noticed the first tweets about this from @whichaction and @whichconvo. This is encouraging because a campaign like this is made for social networks. A shame though that Facebook hasn’t also been engaged by Which? I did look for their page to show an example of what they are doing, but perhaps they are waiting for the new Facebook timeline to launch on 29^th February.

Either way don’t delay, expressions of interest need to be logged on the campaign site by 31^st March.

So, discussions in the main hall were fairly unenlightening – was debate on the fringe any better?

Aside from the seeing the same faces, and hearing the same jokes four or five times over two days, there were some other recurring elements. The overriding message from pretty much all delegates was the need for clear and consistent signals from government – both in terms of policy and support levels – to investors. Sadly, this does not mean we have reached the happy utopia where industry and NGOs agree. For the former, this means a stable price for carbon over the long term, for the latter, this means long-term targets to cut emissions and deploy renewables that are as stringent as possible.

Discussions around renewables and green industries were much more informed and critical than in previous years, with the cost of meeting 2020 targets a particularly contentious issue – unsurprising given the general economic climate. Offshore wind was singled out for most criticism, with a great deal of suspicion expressed over whether the cost of deployment will come down as the government predicts. With regard to the green economy, the claim that it will create new jobs and help the UK through the global recession were also unpicked – that the jobs will not be new (but will simply be moved from other areas of the economy), and that there will necessarily be losers as well as winners as green industries grow.

Arguments around cost fed into one of the more interesting themes of discussion, namely the social ramifications of current energy policy. The cost of meeting 2020 targets is feeding directly into domestic bills, driving them upwards. Since electricity is a necessity, this hits the poorest  hardest, with the label ‘socially regressive’ applied repeatedly to the current strategy on renewables.  With this in mind, there were also calls for initiatives – particularly the Green Deal – to be targeted at the most vulnerable groups in society such as those living in social housing.

Energy Minister Charles Hendry and Climate Change Minister Greg Barker did their best to dispel the gloom, with repeated assurances that the UK is on the right track. Of course as ministers they don’t have much room to say anything to the contrary, but it is hard not to be swayed by two ministers so obviously on top of – and passionate about – their brief.

Sunday afternoon of party conference is when the host mayor welcomes delegates, a time when all but the party diehards are still travelling to the conference or checking in to their hotels.

The fact that the keynote speech on energy was slotted into the agenda yesterday afternoon tells you all you need to know about the focus of this year’s Conservative Party conference. The economic situation – both at home and across the eurozone – is what the party wants to be seen to be taking action on. Everything else comes a distant second.

Sandwiched between weekend pre-conference coverage, and anticipation of George Osborne’s speech today, it is not surprising that yesterday’s speech took up few column inches – The Guardian and the Daily Telegraph being the notable exceptions.

So, what did Energy Minister Charles Hendry have to say? And more to the point, was any of it new? Again we heard about how much generating capacity is due to close in the next decade, and about how much investment is needed in energy infrastructure. And again we heard about a new generation of (unsubsidised) nuclear power stations, and the jobs this would create.

In fact the creation of thousands of new green jobs, and revitalisation of former industrial cities, was a theme running throughout the speech, coming up in discussion of offshore wind and carbon capture. The fact that these cities are exactly the Labour heartlands that the Conservatives will need to make inroads into to win the next general election is mere coincidence…

In all then, nothing we haven’t heard before. Perhaps the fringe is where the fresh ideas are – watch this space…

In the first week of June, the International Energy Agency (IEA) said that we are entering a ‘golden age of gas’ which resulted in a flurry of articles calling into question whether or not the IEA was getting ahead of itself in its rosy forecast of the future of natural gas.

While it certainly isn’t the antidote to climate change in itself, the fact is, natural gas has and will continue to be a vital mainstay of the global energy mix – one that will pave the way to a cleaner future for energy.

The natural gas market has shown continued innovations in production and supply allowing for greater global reach, especially to key markets such as the Far East.

Case in point – you might have already seen in the news that Qatar and Royal Dutch Shell have sold their first shipment of Gas-to-Liquid (GTL) on 13 July from Qatar’s Pearl GTL plant in Ras Laffan, which when complete will be the largest of its kind in the world. The Pearl plant is a joint initiative by Qatar Petroleum and Shell which will process three billion barrels-of-oil-equivalent over its lifetime from the North Field. The technology involves converting natural gas into liquids such as gasoline or diesel fuel. Extensive testing showed that GTL is a cleaner motor fuel than diesel with lower carbon emissions. Between GTL and LNG, natural gas is becoming more and more transportable – decreasing reliance on pipelines and allowing for greater access to the ‘clean fossil fuel’.

Against this backdrop, our client Statoil launched a campaign on 7 June to get clearer signals from the UK government on the role that natural gas will play in the UK’s future energy mix. The campaign comes ahead of the Electricity Market Reform (EMR) package expected next month. Statoil wants greater clarity regarding the UK’s policy towards natural gas, reminding us that the cost of future energy bills in the UK could rise significantly if the energy mix is artificially skewed against natural gas in favour of subsidised alternatives such as nuclear and renewable energy.

Natural gas could be an important bridge between nuclear power today, and a future in which renewable energy sources dominate the energy-mix; I think it’s robust enough to visibly decrease our reliance on oil and coal. In the meantime, I look forward to seeing in July what the Government’s stance is on the long-term role of natural gas in the UK.

As the summer festivals approach and we get all geared up for the season, this year we should think about the quirky bits and pieces we can take along to do our bit for the environment. 

Eco Ark is a good starting point – the family run company provides a variety of innovative products which lead to a greener existence.

My favourite must be the Voltaic Converter Solar Backpack which has the ability to charge all handheld electronics with its 4 Watts of power (ie. 1 hour of sunshine = 3 hours of phone time). Not too bad if you ask me…

Or if you really wanted to make a statement then check out the environmentally friendly tents from Green Outdoors.

Obviously energy efficiency is no longer limited to the office and the home. With all these new products about we can be seen to ‘be green’ even as we head to this summer’s big parties…you really can’t go wrong here!

There will be few on this fair isle (or elsewhere in the world) that have not witnessed something of the mania that has followed the nuptials of Prince William and Kate Middleton due to take place tomorrow. The media have been pouring over the details of the event – the flowers, the dress, the rehearsal, the security, the cost but few have so far looked at the power that will bring the event to life. Now before you ask I don’t mean love, but instead something far less romantic and far more practical - the national power grid.

I read with interest the release from the National Grid today which talks about the unique set of circumstances from which their team of forecasters are having to conjure an accurate forecast of demand for Friday. Without the sterling work of these forecasters the lack of an invitation for the former PM may not be the only brownout of the day.

Apparently the 1,000 MW surge forecasters are anticipating after the exchange of rings is equivalent to 400,000 kettles being boiled – so it looks like we’ll all be toasting the wedding with a cuppa rather than the traditional bubbly.

Bunting Cuppa

Personally speaking I probably won’t give over much of a welcome day off to watch the celebrations and so will give the forecasters little to worry about, but I’d like to wish the happy couple and the forecasters the best of luck!