Image Challenges in Energy Industry: Role of Transparency in - PowerPoint PPT Presentation

IPRA GCC International Conference| Dubai | 25-27 October | 2016 Image Challenges in Energy Industry: Role of Transparency in addressing Image Challenges Fuad A AlZayer Energy Data Transparency, IEF Riyadh

Oil & Gas Industry: Fuelling World Prosperity • Catalyst for growth • Enables populations to achieve opportunity • Energy industry will continue to be an enabler for progress

Regional (GCC) Image of Industry • Great Employer • Top Industry • Great Social Responsibly • A source of pride

Globally the Image Looks Different

Cloudy Global Picture

Global Trust in Energy Industry is Low

Reasons for Disparity of Image 1. Historical legacy (Breakup of Standard Oil 1911) 2. Emerging new power (OPEC 1960, Arab Embargo) 3. Bad handling of disasters (Exxon Valdez, BP Deep Horizen Accident) 4. Lack of human face: Empathy, & Engagement 5. Avoids frank communications (Engineering based industry) 6. Lack of Transparency (Enron, etc.) resulting in non trust

Various Key Transparency Initiatives • Dodd Frank Act (for energy trading ) • UK Anti- Bribery Act • Transparency and Accountability Initiative • The Extractive Industries Transparency Initiative • Joint Organisations Data Initiative (Global initiative coordinated by the IEF)

IEF a Platform for Dialogue & Transparency

IEF Members Account for around of Global Oil and Gas Supply & Demand

IEF Values Neutrality & Engage all Stakeholder's

The IEF‘s Unique Value Propositions Neutrality Promoting Inclusive Global Energy Cooperation Energy Data Transparency (JODI)

JODI Created to Addresses Energy Price Volatility $/b y-o-y Oil $/tcf Gas $/st y-o-y Coal 80% 120 12 25% 45 20% 40 60% 100 10 15% 35 40% 10% 80 8 30 5% 20% 25 60 6 0% 0% 20 -5% 40 4 15 -20% -10% 10 -15% 20 2 -40% 5 -20% -60% 0 0 -25% 0 1998 2001 2004 2007 2010 2013 1998 2001 2004 2007 2010 2013 1998 2000 2002 2004 2006 2008 2010 2012 2014 Source: EIA

JODI: A Positive Image of a Transparent Energy Industry

JODI: A Positive Image of a Transparent Energy Industry

JODI: Visible Cooperation by the Industry

JODI: A Positive Image of a Transparent Energy Industry

JODI-Oil Reach (100+ Countries)

JODI-Gas Reach (75+ Countries)

JODI (Transparency ) Benefits • Reduces market volatility • Supports sound decision-making • Encourages investments • Concrete outcome from producer- consumer dialogue • Improve Image of Industry

Suggested Steps to Improve Image 1. Overcome historical legacy (new thinking) 2. Bring human face during crisis 3. Expand R&D & cultivate creativity 4. Communicate positive stories of industry (fighting poverty, social responsibility, etc.) 5. Learn from other industry such as Airline 6. Bring young minds to join the industry 7. More Transparency – More Transparency

www.ief.org www.jodidata.org