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Press ReleaseFrontier Strategy Group Managing Director Alex Turkeltaub Discusses New Challenges for the Natural Resources Industries on CNBC and at the annual New York Hard Assets Investment Conference CAMBRIDGE, Mass. – (BUSINESS WIRE) – May 16, 2007 – Frontier Strategy Group Managing Director Alex Turkeltaub discussed the key challenges facing the natural resources industries on CNBC's Closing Bell with Maria Bartiromo and at the annual New York Hard Assets Investment Conference. In his conversation with Ms. Bartiromo, Mr. Turkeltaub addressed the recent spike in gasoline prices. Mr. Turkeltaub emphasized that while the spike has been caused by a shortfall in refinery capacity, similar spikes are likely to continue in the future due to the extreme exposure of the entire oil value chain to disruptions. "Everywhere you look there are risks," noted Mr. Turkeltaub, "from the chronic shortage of refining capacity, which could be exacerbated by a natural disaster at any point, to the very real geopolitical risks in the Middle East and Nigeria. From my perspective, we are likely to see significant instability in gas prices due to these challenges." A webcast of Mr. Turkeltaub's CNBC appearance can be accessed at: http://www.cnbc.com/id/15840232?video=296999492&play=1 In his address to the New York Hard Assets Conference, Mr. Turkeltaub spoke more broadly about the key challenges facing the natural resources sector. "Three factors are changing the face of the natural resources industries," Mr. Turkeltaub argued. "First, resource nationalism is becoming more virulent and spreading throughout the world, including Africa. Second, we are seeing the rise of new competitors from China, Russia, India, and Brazil, companies that have state support and are likely to change the playing field for incumbent market leaders such as ExxonMobil, BP, Rio Tinto, BHP Billiton and others. Third, we are about to see an inflow of private equity money into the sector, fundamentally changing deal dynamics." Mr. Turkeltaub suggested that recent deal activity - particularly Alcoa's bid for Alcan - is symptomatic of these three trends. "Alcoa's move is a clear response to the rise of a Russian supermajor in the aluminum space and Alcoa's realization that it will not survive long as a stand-alone entity. The bottom line is that the industry dynamics will shift rapidly in the coming years and I would not be surprised if the biggest mining and oil companies in the world ten years from now came from the BRIC countries." About Alex TurkeltaubAlex Turkeltaub is a Managing Director at Frontier Strategy Group and heads the Former Soviet Union and Middle East Mining & Energy practice at the Frontier Strategy Group. About Frontier Strategy GroupFrontier Strategy Group is a for-profit think tank committed to helping senior executives and their organizations succeed in emerging markets. The firm collaborates with its partner companies to identify innovative and proven strategies across industries and geographies for navigating the changing terrain of the world's most dynamic markets. The firm is based in Washington, DC, and has offices in Cambridge, Los Angeles, and New York.
For a copy of the presentation please contact Alexis Horowitz-Burdick. Media Contact:
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