BP’s Iain Conn: Science and engineering keys to resolving global energy dilemma

Iain Conn recently took part in the School's Distinguished Lecture series. This is a report on his lecture.

By Elliott White

Iain Conn, Executive Director, Refining and Marketing, BP, visited the Business School last night (Thursday 23 October) to share his understanding of the international energy market.

In an intriguing lecture that went beyond the headlines, Conn explored the global energy landscape.  He examined the main forces that shape a vital area of the economy intimately linked to growth and prosperity.  Conn mirrored comments recently made by Sir Roy Anderson, Rector of Imperial College, who stated that energy is now a key priority for the world and therefore for the College.

“In the middle of the current market turmoil, one thing is clear, in trying to map the future, a prominent part has to be energy,” said Conn.  “People are concerned about the limited supply of hydrocarbon fuel and yet they are also concerned of the effects these fuels have on global warming.”

Reflecting on the basic truths, Conn explained that the world’s energy can only be derived from the sun – via solar or biomass, uranium, natural currents – like wind or tides and from hydroelectric sources.  “These are the four angels of energy and on their wings we ultimately depend,” he said.

The speaker established four drivers, shaping the energy market.  He charted the rapid growth in energy demand that is expected to increase by a third by 2030.  This expected jump in demand requires new generation capacity, half of which is not yet built.

The operational challenge of supplying this rising demand, important environmental constraints and security of supply completed the drivers in Conn’s review.  “These four drivers are not new,” he said.  “But what is new is that they have today all reached new levels of intensity.”

“There are tensions between the drivers of change and environmental constraints but the power of population expansion is fundamental.  The demand from developing countries for energy in the forms of light heat and energy cannot realistically be denied,” Conn said.

Looking forward he said, “There is no single silver bullet to meet these challenges.  Instead we have to proceed on a broad front, testing the various technologies and the economics of different approaches.”

These ‘broad approaches’ need to include timely identification of energy resources, technology used to deliver greater efficiency, a market allowed to function normally to match consumers with resources and a balanced energy policy that encourages the shift from CO2 intensive fuels. “Science and engineering will be at the heart of putting these solutions into action” posing significant opportunities and hope for the future.

The speaker closed by calling on governments to help establish a longer-term, predictable regulatory framework that will allow investment in less developed technologies.  “Industry can live with complex rules, they just need to be predictable,” he said.

Ends

About Iain Conn

Iain is an Executive Director of the BP group, and Chief Executive of Refining and Marketing.  He also holds regional responsibility for Europe, Southern Africa and Asia Pacific. Prior to this, Iain worked as Chief Executive of BP's petrochemicals segment and Group vice President for European marketing operations. Iain is an Imperial College alumnus and Chairman of the Business School's Advisory Board. He is on the Board of the Rolls-Royce Group plc.

Elliott White

Press Manager

Imperial College Business School

T: 0207 594 9154