The energy and extraction industry sector is changing faster than at any time since the 1940’s. Change arises from volatile oil prices, transformation of patterns in world trade, new trading markets for commodities and pollution allowances, public perceptions of global warming, political indecision in producer and consumer countries, alternative energy developments and expectations that even monolithic state-owned companies should offer shareholders superior returns on capital. Perhaps the strongest force is the desire of customers for predictable service solutions rather than simply being sold capital-intensive products, leading to increasing industry focus on risk management in the widest sense.
Z/Yen has consistently provided insight for clients in uncertain, capital-intensive, ‘high-risk’ environments, such as exploration & production or distribution. For a major petrochemical industry group we proved that required and actual return on capital had been affected by the dumping of imported product. For a major trading exchange we revealed how a lower than expected counter-party risk enabled them to proceed with certain new products. For a technology development group within a major exploration firm we showed how hard and soft risk factors could be combined to model the risk profile of their new R&D portfolio. We identified cost-reductions at the research facilities of a major company which could be achieved without affecting R&D staff, as well as how they might approach facilities outsourcing. We carried out feasibility studies for energy co-generation plants and wind farms for a number of government sites, and were involved in the outsourcing of a major government agency’s energy management, metering and supply. We have worked with one of the largest global energy trading outfits to correlate their key risk indicators with incidents and losses. We helped a copper mining firm successfully attract finance by developing their business plan. We have helped commercialise the fuel efficiency technologies of small and large companies, and have been active in exploring potential developments in weather derivatives.
Z/Yen people have wide energy and extraction experience that pre-dates our founding. Key people are active members of, for instance, the Energy Institute or the Royal Society of Chemistry. Individual achievements include developing MundoCart and Geodat, the first global mapping tools for the oil exploration industry, various studies for the world’s largest copper mines, post-project reviews of an integrated energy company’s minerals and diversification activities, developing the UK nuclear industry’s decommissioning financial models, many project and plant feasibility studies, and major debt/equity finance deals in the petrochemical industries of Russia, Indonesia, Ireland, Oman or China. Z/Yen staff have particular expertise in managing privatisations in the energy sector, including 20% of the UK’s electricity generation capacity, combined with people who have a strong background in the privatised electricity, nuclear and water industries. Z/Yen people have studied, both qualitatively and quantitatively, the technico-economic opportunities and threats posed by alternative technologies such as wind and solar power, as well as the future role of hydrogen in energy transport.
Z/Yen’s risk/reward approach helps organisations understand the issues they face in their proper perspective. Z/Yen applies its techniques with confidence in a variety of areas, but has stronger experience in energy, technology, insurance, banking and business-to-business services. Our energy clients include purchasers, intermediaries and traders, investment bankers and energy and extraction firms from the start-ups to the largest energy suppliers such as Shell and BP. We strive to undertake our extraction and energy sector work with zest, humour and creativity in order to provide our clients with solutions that control risk and enhance reward.