Dr Carole Nakhle, CEO of Crystol Energy, comments on how fiscal regimes can attract investment in the energy sector in an interview given during the 16th International Energy Forum Ministerial (IEF16) hosted by India on 10-12 April. The meeting overarching theme focused on “The Future of Global Energy Security: Transition, Technology, Trade and Investment”.
According to Dr Nakhle, different factors, such as oil and gas prices, geological potential, availability of infrastructure, policy and political stability and security, can drive investment, but the fiscal regime is the main tool within government control. Today, there is strong competition for international capital and governments are using the fiscal regime to tilt that competition in their favour.
Dr Nakhle emphasises the importance of getting the fiscal regime right, bearing in mind that an ideal regime is yet to be invented and each country has to adapt it to its own conditions. She also comments on the current uncertainties the global oil and gas industry is facing and the need to bring various stakeholders together.
The IEF16 saw contributions from Ministers and Heads of State from OPEC and major consuming countries.
“The complex relationship between oil price and investment, and the impact on future supplies”, Dr Nakhle, Apr 2016
“Low Oil Prices Today May Not Mean Tighter Supplies Tomorrow”, Dr Nakhle, Jan 2016