SHERY: BLOOMBERG IS BRINGING TECHNOLOGY EXPERTS, ECONOMISTS
AND POLICYMAKERS TOGETHER TO COLLABORATE ON A PATH TO THE
CLEANER FUTURE. THE CEO OF AIR PRODUCTS TOLD US
WHY HYDROGEN IS KEY IN TRANSITIONING TO CLEAN POWER.
>> HYDROGEN IS ALWAYS BEEN THE ONLY SOURCE OF ENERGY THAT
REVAMP FOR THE FUTURE.
WHAT IS NEW IS PEOPLE NOW ARE SAYING I WANT CLEAN HYDROGEN.
RATHER THAN BURNING THE HYDROCARBON HYDROGEN GIVES YOU
THE ENERGY YOU, BUT THEN PUTTING THE JUNK INTO THE
ATMOSPHERE, WE CANNOT AFFORD TO DO THAT IS THAT AFFECT THE
CLIMATE. THEREFORE WHAT IS NEW IS THE
FOCUS ON CLEAN ENERGY AND THEN YOU'RE FOCUSING ON CLEAN ENERGY
ON YOU FIND A WAY OF PRODUCING HYDROGEN IN A CLEAN WAY.
THERE ARE SEVERAL WAYS OF DOING THAT.
ONE OF THE BEST WAYS IS SERIOUS HYDROCARBONS.
BUT THEN CAPTURE THE CO2 AND SEQUESTER IT.
THAT IS BLUE HYDROGEN. THE OTHER IS TO MAKE HYDROGEN FROM
WIND AND SOLAR ENERGY WHICH IS ELECTRICITY AND THEN USE IT TO
BREAK DOWN THE WATER AND MAKE HYDROGEN WITH ZERO CARBON
FOOTPRINT. THAT IS WHAT WE CALLED GREEN
ENERGY. OTHER PEOPLE TALK ABOUT ELECTRIFICATION.
THE ELECTRICITY THAT WE SEE IS GENERATED BY BURNING HYDROGEN.
OR WHEN WIND AND SOLAR. THEN WE CAN USE IT FOR LIKE IN
THIS ROOM, HEATING THE BUILDING, COOKING AND ALL OF
THAT.
BUT YOU CANNOT USE ELECTRICITY FOR DECARBONIZING OR MAKING
CHEMICALS OR RUNNING SHIPS.
SO HYDROGEN IS GOING TO BE AND HAS ALWAYS BEEN AND WILL ALWAYS
BE THE ENERGY OF THE FUTURE. NOW THE CHALLENGE IS HOW DO WE
PRODUCE THAT IN A CLEAN FORM? I WOULD LIKE TO SAY THAT ALL OF
THESE DISCUSSIONS ABOUT THE FACT THAT WE NEED OUR ND, WE DO
NOT HAVE THE TECHNOLOGIES, THAT IS NONSENSE.
IT IS ECONOMICAL IF YOU PUT THE RIGHT COST ON BURNING
HYDROCARBONS.
IT IS -- EVERYTHING IS HERE, IT IS JUST GOING TO BE A MATTER OF
POLICY. SHERY:
AIR PRODUCTS CEO AT BLOOMBERG AND ES SUMMIT WHICH CONTINUES
THIS WEEK IN NEW YORK. WE'LL PRICES HAVE BEEN UNDER
PRESSURE AMID A GLOOMY DEMAND OUTLOOK.
TRADERS AWAITING CHINA'S GOLDEN WEEK HOLIDAY TO GAUGE THE STATE
OF ECONOMIC RECOVERY. LET'S GET MORE FROM NEF ANALYST
WAYNE. SO WE HAVE SEEN OIL PRICES
TRADE SIDEWAYS DESPITE THE FACT THAT WE SAW OPEC-PLUS ANNOUNCE
SURPRISE PRODUCTION CUTS. WHAT WILL BE DRIVING PRICES IN
THE NEXT FEW MONTHS?
>> THANK YOU.
SO SINCE OH LOOK -- OPEC-PLUS ANNOUNCE CUTS, OIL PRICES HAVE
EASED DUE TO GLOBAL DEMAND. THAT IS NORMAL GIVEN THAT WE
ARE IN A DEMAND LOW SEASON FROM PEOPLE DO NOT DRIVE MUCH.
CHINA'S OIL DEMAND AND OPEC-PLUS.
WE ARE SEEING SIGNS THAT OIL DEMAND IS STRENGTHENING, ROAD
TRAFFIC LEVELS IN THE LARGEST CITIES ARE CONSISTENTLY HIGHER
THAN THE SAME TIME LAST YEAR. WHILE JET FUEL DEMAND WOULD
ONLY SEE MORE SERVICE RECOVERY
IN THE SECOND HALF OF THE YEAR, ADVOCATES ARE SUGGESTING THERE
IS PENT UP TRAVEL DEMAND IN THE COUNTRY.
ASIA AS A WHOLE WILL MAKE UP FOR A LARGE MAJORITY OF THE OIL
DEMAND GROWTH AND SO FAR THINGS ARE LOOKING VERY POSITIVE.
TO OPEC-PLUS, THERE ARE PRODUCTION CUTS COMING INTO
EFFECT NEXT MONTH AND WE EXPECT UNLIKE THE PREVIOUS ROUNDS, WE
EXPECT IT TO TRANSLATE INTO ACTUAL SUPPLY CUTS BECAUSE THIS
TIME THE QUARTER CUTS ARE ONLY DEDICATED TO MEMBER COUNTRIES
WHICH ARE ABLE TO DELIVER THOSE CUTS.
AND IMPORTANTLY OPEC-PLUS IS SHOWING A STRONG SIGN OF UNITY.
THEY WERE ABLE TO DISCREETLY ORGANIZE THEMSELVES AND AGREE
ON THE PRODUCTION CUT DETAILS. THEY ARE SIGNIFICANT CUTS.
WITHOUT ANY LEAK TO THE MEDIA. SO THIS SHOWS THAT OPEC-PLUS
COULD EXERCISE OR HAVE A STRONG RESOLVE IN KEEPING OIL PRICES
SUPPORTED IN THE MONTHS AHEAD IF OPEC-PLUS CUTS AND CHINA'S
STRENGTHENING DEMAND, WE EXPECT TO SEE THE GLOBAL OIL MARKET
BALANCE FIT INTO A SUPPLY DEFICIT AS EARLY AS MAY IF NOT
DEFINITELY BY JUNE. AND --EVERY REMAINING AMOUNT OF
THE YEAR.
>> RIGHT. AND WE'VE ALSO GOT A NEW REPORT
WHEN IT COMES TO OIL AND GAS TRENDS.
CAN YOU TELL US HOW WE HAVE SEEN THE HIGHER OIL PRICE
ENVIRONMENT AND HOW THAT'S PLAYED OUT WHEN IT COMES TO
DIVESTMENTS?
>> SURE, SO IN THIS REPORT WE LOOK AT THE IOC IS BASED IN
EUROPE AND NORTH AMERICA. TYPICALLY IN A YEAR WHERE OIL
PRICES ARE LOW, IT WOULD BE FOLLOWED BY HIGHER DIVESTMENTS
IN A YEAR AFTER, SO THERE IS A ONE LAG AND VICE VERSA.
THAT IS THE SAME TREND. ANOTHER TREND WE ARE SEEING IS
OIL COMPANIES ARE DIVESTING MORE IN-HOME COUNTRIES, NAMELY
NORTH AMERICA AND EUROPE. THAT IS BECAUSE THEY FACE
REGULATORY PRESSURES IN THOSE REGIONS WHICH TRANSLATES TO DO
COST OF OPERATION. ANOTHER INTERESTING TREND IS
THAT ALL OIL COMPANIES, MAJOR IOC'S HAVE 2015 AT ZERO
EMISSIONS TARGET WHICH COVERS GLOBAL OMISSIONS.
AND THEY ARE STILL CHANNELING BOTH OF THE DIVESTMENT
PROCESSES INTO FOSSIL FUEL PROJECTS.
WE ARE SEEING A STEADY INCREASE IN TO LOW CARBON PROJECTS.
ANNUALLY SINCE 2019.
WE EXPECT AGAIN BETWEEN THE PROCESS AND ENERGY TRANSITION
TO NARROW SO THAT OIL COMPANIES ARE ABLE TO MEET THOSE
EMISSIONS TARGETS. AN INTERESTING TREND THAT WE
HAVE COME ACROSS IS THAT OIL COMPANIES, PARTICULARLY
EUROPEAN IOC'S ARE ACTUALLY LOOKING MORE INTO SELLING
EQUITY AND RENEWING PROJECTS THAT ARE PAST THE DEVELOPMENT
PHASE.