Disruptive Trends in Energy Industry Post-Covid 19
Jyoti Prasad Deka
Mitigating climate change through research / strategy in sustainability and energy transition
This article is developed based on a strategic research on impacts and evolving trends in global energy industry post Covid 19. Many of the trends were operational before Covid 19 outbreak and it is our opinion that these trends will accelerate to phase an energy transition in next 5-10 years.
A framework to study the disruptive trends in energy
Decarbonization
Digitization
Decentralization
Changing workforce
Drive for efficiency and cost reduction
How can global energy companies navigate the transition?
To answer this question, we looked at strategic possibilities for two kinds of energy companies - (1) global oil and gas majors and (2) big electric utilities and generators including IPPs. We created a "strategy quad" where we identified 4 dimensions along which these global companies can circumspect and execute their moves.
Figure 1: A strategy quad for global energy companies to navigate the transition in the industry
Strategy quad for global oil and gas companies
Strategy quad for major electric utilities and generation companies
Assumptions in our analysis
Analysis is expected on macro-trends observed post and pre-Covid 19.
Focus of analysis is global and on corporate rather than any country or region specific
Policy and regulatory aspects are covered in form of drivers. Also, it is assumed that they will guide corporate actions through market fundamentals
List of trends and strategy are NOT claimed to be exhaustive and mutually exclusive
References
- EY, “What’s after what’s next? The upside of disruption: Megatrends shaping 2018 and beyond”, 2018
- EY, “Future of Energy Series: managing uncertainty in the energy sector”, 2019
- EY, “Power transactions and trends”, Q1 2019
- EY, “How do we regenerate this generation’s view of oil and gas?”, 2017
- REN21, “Renewables 2019 Global Status Report” 2019
- Deloitte Insights, “Decoding the O&G Downturn”, 2019
- Bain & Company, “Managing the Energy Transition: Three Scenarios for Planning”, May 2019