Asian Pacific Energy Research Centre (APERC) Annual Conference
Tokyo, Japan
The Secretary General of the International Energy Forum, Joseph McMonigle, participated in the Asian Pacific Energy Research Centre (APERC) Annual Conference and Advisory Board Meeting and Joint Symposium along with the Institute of Energy Economics (IEEJ) that convened virtually on 11 September 2020 in Tokyo, Japan. This year’s conference centered on various energy topics including energy security, climate change, energy investment, and data analysis.
Mr McMonigle participated in Session Two of the Energy Security Workshop where he presented on the importance of dialogue and collaboration in maintaining energy security. The advent of COVID-19 has radically transformed supply-demand fundamentals and increased energy market volatility. This makes the role of the global energy dialogue even more significant to drive energy markets forward.
While total energy investment fell by 20 percent in 2020, Non-OPEC exploration and production investment has seen the brunt of the decline at 43 percent compared to 2019. Non-OPEC shale production is also under pressure due to lower demand and calls for return on capital invested. Employment layoffs in the oil and gas sector, particularly shale and offshore non-OPEC producers, further exacerbate uncertainty and the ability for the energy sector to attract the talent needed to move forward.
In the short-term, timely OPEC-plus production adjustments along with greater transparency on stock data will be the keys towards ensuring energy market stability. However, the return of pent up demand in the aftermath of the COVID-19 pandemic combined with a lack of investment may lead to a rapid tightening market in the medium-term. Sharpening producer-consumer dialogue on the investment crisis will be crucial to secure market stability in the medium-term.
Mr McMonigle also emphasised the need to accelerate full and comprehensive energy data submissions on inventory levels and stock changes. The IEF will be working with JODI partners to accelerate data submissions and enhance market transparency by leveraging digital solutions as well. At the same time, clean technologies and renewables play an increasing role in energy sector transformations and will benefit from additional government support in green recovery efforts. Other economic approaches include greater focus on market reforms and circular concepts to achieve both climate and energy access goals. Greater collaboration amongst producer-consumer countries, international organisations, and industry stakeholders, will be necessary in a rapidly changing risk environment.
The annual APERC conference is attended by delegates from participating APEC economies, as well as distinguished expert speakers. The conference provides an opportunity for participants to exchange views and share research findings on the energy policy challenges facing the APEC region.
