Did you know that more than 90% of oil and gas employees say their company has or is implementing a long-term sustainable strategy for a low-carbon future? Not only that but, half of respondents said that their companies are already investing in the energy transition with cleaner fuels to power field operations, and acquiring businesses outside their core focus.
It has been a long way since the Energy Transition signified a disruption to now meaning growth for companies that engage and implement it in their core business strategies. But how is this happening? Today, we bring you the six channels driving Oil and Gas companies through the Energy Transition.
1. Decarbonizing energy sources
Decarbonization within oil and gas companies responds to three different trends: executive compensation, customer focus, and technologies supporting the said transition. In recent years, with emphasis to recent months, demand for non-fossil fuels has followed an upward trend, meaning a decrease in demand for fossil fuels. However, there is still the need for extensive battery storage technologies to allow non-fossil fuel energy to have a massive scale.
2. Increasing operational energy efficiency
This one is exceptionally relevant in this period. With companies taking energy consumption more seriously due to hiking prices, switching to renewables is a smart choice and high investments are being done to push efficiency in operations. That is why the acquisition of newer and cleaner equipment to improve operations is a trend now. In the oil and gas sector, many smaller US oil and gas companies have been tracking operational and efficiency targets for some time.
3. Identifying new investment priorities in the Energy Transition
Over the past decade, investment in clean energy globally has nearly doubled. Many big companies are extending their portfolios by acquiring smaller ventures within the clean energy industries. Partnerships and mergers are also a preferred choice. These investments are vital to oil and gas companies both for improving their clean tech credentials and for diversifying their portfolios.
4. Deploying new technologies
The development of batteries to store green energy signifies the possibility for storage on a mass scale. With more and more technological advancements making the switch and adoption to renewables easier, attractive and economically viable, more companies are taking on this.
5. Adjusting to new policy mandates
Various countries are strengthening their carbon policies and the oil and gas industry is in major focus pushing high-up executives to be driven towards clean energy. However, growth in opportunities for the renewable energy industry makes this scenario not as bad as it once would have been. These policies bring different possible outcomes to the table. For example, electric vehicle adoption can replace internal-combustion powered vehicles and there is the possibility of biofuels to occupy a higher amount of sources of energy for the aviation, shipping and trucking industry.
6. Managing consumer and shareholder expectations
As consumers are more and more aware of the impact of their daily life choices, an increasing number are opting for low-carbon solutions such as electric cars, organic and local produce and solar-powering their homes. High-up execs report that their companies are committing with customers to providing more electricity sourced from clean energy. Additionally, the volatility of gas prices opposed to those fossil-fuel alternatives is driving investors to include the latest in their portfolio among other reasons, to improve their ESG profile.
For WTS Energy, the push towards the Energy Transition is at the core of its operations. By providing the best available workforce to companies within the energy transition industry and by taking solutions for companies within the energy transition industry to remote places around the globe. With our services, we want to ensure the best quality standards while caring for the people, for communities and the planet.
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