Read our trilogy of mini papers from our oil and gas international disputes team and our recent battery storage paper:
A Guide to Termination of Long Term Contracts in the Energy Sector
Gas Pricing Disputes: Practical Tips from the Front Line
Exclusive Remedy Clauses: A Cautionary Tale
Battery Storage – A New Frontier
On Tuesday 26 September DLA Piper welcomed clients to a gathering to explore the changing dynamics of the oil and gas sector and the implications for participants from the entire oil and gas supply chain.
Rob Turner, Partner, who leads the Oil and Gas Deals Strategy Team at PwC in London shared a fascinating and thought-provoking perspective on the sector’s recent turbulence and his vision for the future of the sector.
Hot topics included (amongst many others):
- Rather than adopting the language of "crisis" and "recovery", whether the industry should acknowledge that a longer-term structural change has taken place in the sector
- The debate over whether the oil price outlook was really ‘lower for longer’ or whether the industry should reset expectations and adjust to today’s oil price as the new normal
- How close we are to reaching peak oil demand, particularly given the recent acceleration in the electric vehicle market and the impact of batteries on the declining oil demand in a world of over supply
- Accessibility to finance and changes to the capital structure of the sector over recent years
- The role of host governments and their approach to attracting external investment in the oil & gas sector in today’s climate
- The current buoyancy of the M&A market in the sector
- The often varied outlook for different geographies, including winners and losers
- An increasing occurrence of pricing disputes and restructuring
Dimitri Papaefstratiou, London Head of the Energy and Infrastructure Finance team at DLA Piper, commented: "We were delighted to welcome so many of our clients to this captivating presentation and to engage them in a discussion about the key issues and trends in the sector. Through our oil and gas work we are certainly witnessing the impact of restrictions upon dollar liquidity, reduced accessibility to bank finance and changing geopolitical dynamics upon the sector. We are always keen to share our experiences and facilitate discussions with our clients about industry trends and what they mean for all participants in the Energy sector."
James Carter, a partner in DLA Piper's litigation and arbitration team, wrapped up the session with a summary of anticipated trends in energy sector disputes that flow from recent market developments.
DLA Piper acts for clients throughout the sector, from major international oil companies, governments and state-owned companies through to independent juniors. We also represent (and sit on the panel of) the leading specialist oil and gas banks. We have advised on oil and gas matters across the world, with a particular emphasis on emerging markets transactions. We advise on all legal matters in the oil and gas industry but focus particularly on mergers and acquisitions, project development, finance, international dispute resolution and restructuring.
Our Oil & Gas outlook took place as part of our week-long programme of events in London celebrating our sector specialisms.