KPMG delegates share insights on the key themes at ADIPEC 2024 – and how these trends will shape the energy transition.
The mood at ADIPEC 2024 could be described in a single word: stubborn. Despite geopolitical challenges, economic pressures and technological uncertainties, the energy sector remains determined to advance the decarbonisation agenda.
" Decarbonisation has been a central theme at ADIPEC for some years, and while Net Zero remains within reach, the energy giants are easing their pace. Yet this year’s conference saw the industry determined to stay on track in the face of potential setbacks, from shifting geopolitical landscapes and policy changes."
Marlon Richardson, Partner, Energy Coverage & Transformation, KPMG in the UK
Decarbonisation was a dominant theme at ADIPEC 2024. Yet there was growing recognition that the real challenges aren’t just technical, they're also political and economic.
The ideal of a Net Zero future still holds strong, but the hard work of turning that vision into reality is now upon us.
“The road ahead is full of difficult choices. At ADIPEC, the emphasis was on decarbonising fossil fuels, through carbon capture and methane emissions reduction, for example.”
Christopher Young, Managing Director for Energy Strategy & Performance Transformation, KPMG in the UK
One key takeaway from the event was the tension between decarbonisation goals and on-the-ground realities. It was clear that there will be trade-offs to be made along the way.
The energy sector must balance the urgent need for decarbonisation with the demands of political cycles, fluctuating government priorities, shifting investments, and regional differences in resource availability.
“Decarbonisation is often presented as a win-win for business and the environment. But the reality is more complex. Political agendas, fluctuating state investments, and competing stakeholder interests mean compromise will be necessary.”
Abid Shami, Senior Advisor, Global Energy & Natural Resources, KPMG in the UK
Much of the technology needed to underpin decarbonisation is already in place. It’s the political will, combined with business leadership and the skills to deliver change, that must now drive progress.
Skills gaps were a driver for discussion about enhancing diversity in the energy industry, and harnessing talent from as wide a pool as possible.
“There’s a strong push to increase female representation in the energy sector, especially in light of the global skills shortage.”
Brintha Kumar, Director of Technology Transformation, KPMG in the UK
Talk of artificial intelligence was unavoidable at this year’s ADIPEC. There was huge enthusiasm for AI’s potential to accelerate decarbonisation and enhance business growth.
“Every organisation at the conference had people tasked with discovering how best to harness AI. But many companies in the region are still lacking the foundational data management and strategy capabilities to properly exploit it.”
Abid Shami, Senior Advisor, Global Energy & Natural Resources, KPMG in the UK
AI could indeed be a gamechanger for the energy sector, driving efficiencies and a faster transition to Net Zero. But there’s a downside that can’t be ignored: the technology comes with a substantial carbon footprint.
The datacentres that power AI systems are huge consumers of energy. They’re set to supercharge global energy demand to ten times current levels.
This presents a dilemma: how can the sector capitalise on AI’s potential while achieving its decarbonisation goals?
Another notable theme at ADIPEC 2024 was an increasing realisation of the need for cross-sector collaboration. The challenges of decarbonisation and AI deployment are too vast for any organisation to tackle alone.
“Collaboration will be essential, particularly in areas like capital project delivery and AI implementation. Companies from different sectors and industries will need to co-invest, share risks, and work together to bring projects to life.”
Christopher Young, Managing Director for Energy Strategy & Performance Transformation, KPMG in the UK
This won’t be easy. New approaches to structuring partnerships, aligning incentives, and managing risk will be required. And the need for rigorous due diligence in risk allocation will be more critical than ever as companies navigate complex projects.
To thrive, the energy industry must rethink how partnerships are structured, and how AI governance frameworks are established. This will enable companies to drive better outcomes – not just for the businesses themselves, but also for the planet.
Looking forward, there’s a growing recognition that decarbonisation won’t happen without innovation, inclusivity and strong governance. The energy sector needs diverse talent, improved governance frameworks for AI, and collaborative strategies to tackle the pressing challenges ahead.
As the industry grapples with these critical issues, it’s clear that the path forward will require more than just technological breakthroughs. It will demand a collective effort, with business leaders, policymakers and technology innovators working in tandem.
Ultimately, the success of the energy transition will depend on how the industry embraces change, manages partnerships, and builds a sustainable, inclusive and innovative future.
