Who framed roger rabbit?

OPEC agrees to trim production in an attempt to control oil prices “by just saying it had a deal, OPEC managed to keep the price of crude from plummeting, which was about to happen” - Jim Cramer OIL PRICES RISE 5% 28 September preliminary deal: Production cut 32,5 - 33 mln bpd Partial exemption for Iran, Nigeria and Lybia Russia ready to back the deal

When it all started: the ‘shale revolution’….. “Everything has changed with American shale oil and gas coming on the market” Claudio De Scalzi - CEO of ENI

… which pushed Saudi Arabia to an all out price war

Instead of cutting production, OPEC opted to pump at high volumes to maintain market share…

… and US production shrunk by 12% Apr ‘15 peak: 9,6 MMBD Aug ‘16: 8,5 MMBD Conventional: down 8% Shale: down 15%

But large frackers evolved in survival of the fittest …..

… and are now the real winners from an OPEC cut “It was a moment US shale oil producers had been waiting on for more than two years” -cit The move from $40 to $50 makes a big difference: Chevron: from 1300 to 4000 profitable wells EOG Resources: production up 10-20% py Pioneer Natural Resources: rig fleet +40% 10 more active U.S. rigs per week

Strong growth in Asia drives increases in oil demand

The fuel mix is set to change significantly Primary energy shares In 2035 (vs 2014): Oil 29% (-4%) Coal 25% (-5%) Natural Gas 26% (+2%) Hydro 7% (=) Nuclear 5% (+1%) Renewables 9% (+6%)

Nuclear energy is projected to increase steadily, growing at 1.9% p.a. Europe -29% North America -13% China +11,2% ageing plants decommissioned few new investments more than doubling by 2020 increasing nine-fold by 2035

But the greatest surprise is the rise of renewables

Wind and solar are most prominent sources of renewable energy today… Onshore wind cost will fall 41% by 2040... ... and solar by 60%

…. but face challenges with regard to their intermittent nature “The major changes in power in the next 40 years are likely to be in energy storage and integration technologies” - BP Technology oultlook

Grids will get smart….. New design concepts and smart materials Power electronic devices Energy storage technologies More flexible transmission and distribution systems Powerful monitoring and control systems

… and energy storage will be a key factor TRANSPORTATION Next-generation batteries, such as rechargeable lithium sulphur batteries Fuel cells GRID Flow batteries Molten salt batteries Compressed air storage

Graphene: the «miracle material» that could revolutionize our World Lighter and more durable batteries Solar cells working in the rain Hydrogen clean storage

What is Graphene? Graphene is a two dimensional layer of carbon atom Its properties make this material special STRONG It is 200 times stronger than structural steel DRIVER It leads up to 1000 times better than copper FLEXIBLE It can be flexed up to 20% without damage BIDIMENSIONAL Each layer is one atom thick APPLICATIONS IN: energy computer technology medicine building materials

Sand may be the answer to storing solar energy: meet STEM® technology SUN Heliostats Sand Steam turbines POWER

The future is uncertain…