Royal Dutch Shell CFO points to subsidies as major barrier for investors

During the 120th anniversary of the Shell Company of Thailand Ltd., Simon Henry, chief financial officer of Royal Dutch Shell, predicted that power demand in the ASEAN region would triple over the next two decades. Henry also predicted that such an increase would force governments to work harder in securing new energy resources.
Henry emphasized that governments should collaborate to create common and robust regulatory standards as well as clear guidelines for regional cooperation. He also stressed that there is a need to promote more energy investments in the region, but private energy companies are not pleased with the existing subsidy policies, which have hindered companies looking to invest.
He underscored three issues for governments in the region to consider, “There are three key issues I would say [are] essential for the governments to reconsider to ensure the security of energy in the region: they should remove subsidies, they have to create a market and the last thing is to promote technology investment.”
He added that “The hardest [are] the subsidies. In 2012, the subsidy cost will reach half a trillion dollars, which is the main factor barring companies from investing. I understand that it happens all around the world, and it’s about political choice. It’s difficult, but we need to find a balance.” (June 7, 2012)