Law specialisms : Energy

Charles Smith is an associate in the global energy practice at Herbert Smith LLP.

The energy sector offers a true variety of transactions and projects around the world. This presents an excellent opportunity for young lawyers to become involved in deals that nearly always have an international element, across different disciplines, including corporate, finance, and dispute resolution. 

What does the work involve?

The technologies available today mean that the energy sector encompasses not only the more traditional sources of energy, such as oil and gas, but also includes nuclear, renewables such as wind and hydropower, and various emerging initiatives such as carbon capture and storage and biofuels.

This provides for an exciting and engaging context for the legal teams advising clients such as BG Group, Mitsubishi Corporation, CNOOC and Tata Group. These clients make for a truly international practice, involving deals in Latin America, through to the Middle East and Asia.

The role of the energy lawyer is to advise clients on their acquisitions and disposals, and the development of new projects such as new nuclear power stations, or offshore wind farms. This involves advising on the transaction or project agreements, the planning process, or financing of the arrangements (whether acquisition or project financing). This involves using legal knowledge in areas such as contract, corporate, commercial, EU and international law.

One of the great things about the energy sector is that the lawyer's work is very relevant to the real world. The deals and projects you would work on are concerned with the energy we all use in our everyday lives.  It's fascinating and rewarding to work on a new energy project which you know will be providing electricity, or another energy source, to people in an emerging economy, in Europe, or elsewhere around the world. 

What do trainees do?

This involves working in a team, and so whilst a transaction might require hard work at certain points, such as during the completion phase, you will be developing your skills and knowledge closely with associates and partners. Business and client relationship development is a fundamental part of the energy lawyer's work, which provides the opportunity for you to get involved in social events, client seminars, and other activities.  

A key part of the work involves understanding the client's business and the global market in which that client operates. That's why at Herbert Smith LLP, trainees and associates have the opportunity to go on secondment to a client, or to one of the firm's global network of offices, to get the best possible experience and expertise in the energy sector.  

Working on new and ground breaking projects presents opportunities for interesting and engaging research, as well as drafting agreements, attending negotiations and working in a truly international environment. Trainees are encouraged to get involved, be a part of the team and to take responsibility for a particular part of the transaction, meaning there is great scope for developing your legal and commercial skills.

What does the future hold?

International acquisitions and investments in oil and gas are likely to continue growing over the next few years, with growth in electricity demand and construction expected to be driven by emerging markets such as India, China and the Middle East. Policy efforts to curb emissions via carbon prices and low carbon technologies are likely to continue, which, coupled with the long-term trend towards increasing oil prices, also means alternatives such as nuclear and renewable energy are gaining momentum.