11:26- 14:54

Moderator: Minster Silken, I'm going to come to you because I think Europe's been one of those hardest
hit and had to make the quickest transitions and taking a significant amount of action in the last year.
Talk to me about energy security from your perspective briefly if you can as a kicking off point.

Sikler: So, first of all thank you very much for the invitation to this very privilege panel. The second point
I completely agree was phatty that basically on 24th of February world the energy world has changed
and this change is irrevocable. I give the simple example of the Czech Republic and then I will come back
to European issues. on with the beginning of the war, Czech Republic as a landlord country was the
dependence on the Russian fossil fuel supplies was ultimate, 100% the nuclear fuel, the nuclear bars for
the nuclear power plants 99% gas and more than 50% crude oil. without infrastructure, the
infrastructure was built from the East to the west, so what you do if you want to impulse sanctions on
the aggressive, so and there are similarities with the Yom Kippur War from 70s, but the combination
Europe has to solve and is solving successfully is much worse because it was something like the George
Clooney's perfect stool.

not only the market manipulation which Russia started already before the war where basically Gazprom
rented the storages the gas storages across the Europe and you know they were with the beginning of
the heating season on the record low level empty simply empty without the possibility to get these 155.
We are talking about replacement of 155 Billion cubic meters of the natural gas from Russia so once or
the consumption of Europe. Then the extreme ride during the summer so the Hydro power plants in
South Europe were not working also Scandinavia and then basically missing capacities in France, Saudi
reactors out of nuclear reactors are out of 59 out of order because the domain of the maintenance.

So, it was like more than 140 terabyte capacity which is the production of the Czech Republic and
Slovakia together, the yearly production.

So, it was The Perfect Storm and in combination with the need to fulfill the storage before the winter is
extreme pressure on the prices, thousand Euro per megawatt hour on the end of the summer for
electricity and 350 for gas, so nobody can afford this. There was a like a big threat that the social
agreement in European countries will be programmed that there will be a social unrest that the industry
will not be able basically to pay the electricity bills and the big threat of the industrialization.

16:50 - 20:05

Moderate to Sikler: I want to hear from somebody else we'll come back to it because we're going to
more deaths, but this is a yes or no question. Can the momentum that you've achieved over the last 12
months be sustained because it has to be can it be?

Sikler: yes

Moderator: yes, good answer, we will come back to that. Patty you also understand crisis in California
the provision of trying to provide 60 million people with stable, we touched on that there, cost effective,
with prices soaring, and of course you're fighting the longer term challenges of security against wildfires,
the flooding that's going on at this moment. Talk to me about how you view energy security and what
you think whether it is your company or more broadly needs to happen and change and fast?
patty: well, first thank you for having me I'm proud to represent the people of California and the people
of PG&E. you know we are in a different kind of war in California and that is the front line of the war on
climate we're experiencing it. We’ve just had historic flooding, we've had historic wildfires, and we’ve
had historic now snowfall and earthquake just in the last month. All of those things in the last six
months, so we're experiencing it and we have some of the most ambitious climate objectives because of
that. And the people of California are very resolved and I'll remind people that the state of California, if
it were a country, is either the fourth or fifth largest economy in the world and yet we have very
ambitious climate objectives and I am extremely optimistic about the opportunity to leave this climate
transition in a systems mindset way. So as a system, when we optimize that system as we transition we
can do this for the lowest societal cost and I see a very clear and specific pathway to the lowest societal
cost of the transition by optimizing distributed resources along with Central Station traditional sources
of supply, but optimized in a very specific way.

so let me just tell in September, we had a peak summer heat event California had its peak demand for
electricity on September 6th and so we are boots on the ground I was standing watching the load Curve
creep up and creep up we saw the battery storage kick in right when it was supposed to, that's new
additions to California’s Energy supply, it worked just like it was supposed to but as we got very close to
having to shut down our transmission systems and prevent energy delivery to preserve the grid, the
state took a very aggressive action to send out an emergency text message to all of the California cell
phones and instantaneously 2,500 megawatts came off the system we watched the load Curve drop
with a straight line which told me and reaffirmed a hypothesis that I have the demand management
with modern technology can be automated we shouldn't have to send a text message.

21:25- 23:29

Moderator: I want to hear from Vicky, I have to hear from Vicky first.

It was 15 to 20% though wasn't it? I can see you smiling.

come in here please because I think the key word for Martin was emissions and I think the oil and gas
sector has a terrible reputation, I think you would admit that there are pieces of this sector that are
recognizing an existential crisis for the planet is also an existential crisis for them and that's creating
inertia, but you have a different way of looking at this. It is sort of a reality check, I think for all of us
please explain.

Vicky: yeah I think that it's. What’s important to understand is that the enemy is our emissions, it's not
the energy source and what we really need is a more thoughtful transition and the transition has to be
one that's built around ensuring that as we transition that we don't leave developing countries behind
an emerging countries. We have to understand that oil is the highest intensity energy at the lowest cost.
what we have to do now is we have to address the emissions and we have been making important
strides toward lowering our methane emissions across the industry and it's been a concerted effort by a
lot of companies and countries to make that happen. And I agree with phatty and Martin and Patty that
Renewables are critically important. And reality is that is a part of our transition. We need energy to
provide our equipment to run and we are starting to move to using renewable energy battery.
Advancement is important to make that sustainable and to make that a consistent provision of energy,
but that's going to happen and we are actually as, i will say just occidental example. We know that we
not only need to lower emissions from our own gas operations, we need to lower the emissions from a
lot of industries.

38:32- 41:02

Phatty: let me just put this investment thing for making simple for us to put it in the frame.

Now if, a big if, if we all want to reach 1.5 degree target to keep our climate safe, but the scientist tell us
to do our climate target. Today, the world invests $1 for fossil fuels and 1.5 dollars for clean energy, so
the ratio is 1 dollar for fossil fuels and 1.5 dollars for clean energy. If we want to reach our target, this
ratio the 1 to 1.5 should be 1 to 9, so big increase in the clean energy investment.

and which makes it even more difficult the growth of the clean energy investment need to come from
the developing countries, their cost of capital for clear energy technologies is about 6 7 times higher
than U.S or Europe.

And as well I think this is the nerve center of all the problems. How, because I believe money and the
clean energy projects in Europe and in the U.S (IRA, FIFA, 55) at the end they will meet, but what are we
going to do in the emerging Counties.

And I believe advanced economies have two reasons to support the clean energy financing developing
countries.

Number one, one ton of CO2 going to atmosphere from Detroit or from Jakarta or from New York or
from Marseille has the same effect on everybody. you can do whatever you want at home, it doesn't
change if the emissions came from us as well, you can bring the UK emissions, Europe emissions to zero,
you will not be able to protect yourself from climate change impacts if Indonesia and other countries
going on.

So, first analogical reason and second, the other driver why they should invest, have the clearance
attractions in developing countries, it is moral reasons. The climate change is the issue of concentration
of carbon in the atmosphere and about 80 percent of the carbon in the atmosphere put by the advanced
economics since 100 years.

So, they have a moral reason to clean up as well.