{ "docId": "019dd923-5e88-73ef-bd59-1e1c5686629b", "docSlug": "65ba79c0a1c3a0ab", "documentTitle": "ey energy and resources transition acceleration", "authorId": "MorganStanley", "authorName": "EY", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.778, "pageNumber": 11, "pageCount": 48, "prevPage": 10, "nextPage": 12, "slideType": "key_messages", "function": "summarize", "density": "overcrowded", "nDataPoints": 1, "notes": null, "elementsJson": [ "paragraph", "photo", "big_number" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd59-1e1c5686629b/11", "deckHref": "/decks/019dd923-5e88-73ef-bd59-1e1c5686629b", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd59-1e1c5686629b.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd59-1e1c5686629b#slide-11", "components": [ { "bbox": { "h": 0.35, "w": 0.35, "x": 0.35, "y": 0.53 }, "kind": "callout", "text": "An estimated US$4.1t of annual investment in low-carbon transition technologies and enabling energy infrastructure will be needed by 2050 (a quadrupling of current levels).", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e49cfe8d-c401-4eb4-923d-48147019fee8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.62, "x": 0.35, "y": 0.53 }, "kind": "image", "text": "Ship carrying wind turbine blades", "attrs": null, "subkind": "photo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a508ccd9-ba74-4765-bdde-e0cd41fffe4a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "annual investment in low-carbon transition: US$4.1t", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-3409-704d-b4e1-1fd5d4a26d83", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.28, "x": 0.69, "y": 0.22 }, "kind": "paragraph", "text": "And for energy and resources companies, making smart, no-regret actions now can mitigate risk and capture the value of change. This won't be easy, particularly as every company will be on their own path, facing risks unique to their own market and geography. But those that can identify and commit to the right strategic choices now can realize significant commercial opportunities and, collectively, hasten our journey to a sustainable, resilient energy future.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f92096b-1dcd-448d-9279-f901f281a9b3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.3, "x": 0.05, "y": 0.22 }, "kind": "paragraph", "text": "For energy and resources companies, multiple transitions will make for a volatile landscape. Different markets will require different strategies, create different risks and present different trade-offs – all at different times.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "34d61e80-056a-4a84-af3b-1b7eddfa81f7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.3, "x": 0.37, "y": 0.48 }, "kind": "paragraph", "text": "We know this will be challenging, but we also believe that evidence of accelerating change is reason for optimism. This is a critical decade. The right decisions made now can speed up our transition to the new energy system and bend the emissions curve in our favor. For government and regulators, this means deciding how to convert objectives into the economic signals that nudge consumers and markets in the right direction at the right time. An estimated US$4.1t of annual investment in low-carbon transition technologies and enabling energy infrastructure will be needed by 2050 (that's a quadrupling of current levels).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3f021a0c-170e-4f9a-b24f-82c2433dffdf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.3, "x": 0.05, "y": 0.38 }, "kind": "paragraph", "text": "Besides the huge cost and complexity of transitioning legacy assets, our model indicates the task at hand is more challenging, and multifaceted, than many anticipated. Energy and resources companies will take on the challenge while also planning for downstream disruption and keeping investors onside.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c16e54d7-cbf8-49e6-9b1b-5a781cf4f685", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.3, "x": 0.37, "y": 0.22 }, "kind": "paragraph", "text": "Multinationals will navigate the complexity of operating across different environments, taking care that actions in one region don't negatively impact operations in others (especially around the social agenda). Every sector will need new talent and technology to make change happen. And, critically, they will need to collaborate across multiple sectors, working together to help mobilize governments, reshape and achieve consensus on regulation, shift consumer and corporate behavior, and make sure our emerging new energy system is also a fair and equitable one.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cc4360e0-5f28-40d8-9446-48d088c529ce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.3, "x": 0.05, "y": 0.54 }, "kind": "paragraph", "text": "For the power and utilities sector, challenges include a need to significantly expand and upgrade the grid, and also reset relationships with customers. Miners must find more access to capital and secure license to operate (LTO) if they are to build supply chains that keep up with evolving demand – no energy transition can take place without mining. For oil and gas companies, decarbonizing the molecules that much of the world's industry will continue to rely on will become a priority – and critical to the ultimate success of climate ambitions.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ecebddcb-a1d8-42f5-b9b6-48f0d1c2a062", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.6, "x": 0.05, "y": 0.15 }, "kind": "title", "text": "The complexity of change will require tough trade-offs and huge investment", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bfc97c52-bb67-4240-8824-eda625446cbb", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Pyramid Principle", "slug": "pyramid-principle", "agent": "Architect", "layer": "slide", "matchId": "daac37e8-64b1-41c4-af39-24689e62ddd2", "evidence": "We know this will be challenging, but we also believe that evidence of accelerating change is reason for optimism.", "confidence": 0.6 } ], "frameworks": [], "arcBeats": [ { "to": 17, "from": 11, "beatId": "7e2280e2-e06d-42e5-b2f7-31cf733420a5", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Key Messages", "beatSlug": null, "evidence": "The deck highlights key messages, including implications of the energy transition, renewables dominating energy generation, and power demand doubling by 2050.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }