Managing Risk on the New Frontiers of Energy Exploration

We evaluate the changing risk landscape for companies involved in the exploration and production of hydrocarbons from untapped reserves.

Although the fuel mix is expected to shift away from oil and coal toward renewables, renewables and other alternative sources are expected to account for less than a fifth of world energy use by 2030.

Global demand for energy is expected to increase by 1.6% per annum over the next 20 years, representing a 39% increase on total 2011 consumption. With population and income growth driving this surge, developing markets such as China and India are expected to account for the bulk of the energy demand growth. Although the fuel mix is expected to shift away from oil and coal towards renewables (mimicking the growth of nuclear power in the 1970s), renewables and other alternative sources are expected to account for less than a fifth of world energy use by 2030.

This report:

• Examines the new frontiers of energy exploration, evaluating the changing risk landscape for companies involved in the exploration and production of hydrocarbons from reserves previously untapped.
• Outlines strategies to mitigate the risk associated with each new frontier and help organizations and other energy-exploration stakeholders reduce their vulnerability in a space where one misstep could sink an entire industry.