Identifying the relevant trends and technologies influencing the business environment of the energy industry can serve as a blueprint for improving operations, enhancing customer relevance, and eventually obtaining strategic advantage.

Fremont, CA: Multiple driving forces affect the energy industry on a global scale. As coordinated efforts are needed to eliminate fossil fuels from value chains, there is an increase in coalitions of governmental and private sector actors. The post-pandemic environment provides a unique challenge for prioritizing renewable energy amid global economic turmoil. In order to transition towards renewables, multinational gas and oil firms are embracing emerging technology to discover rapid wins alongside refocused M&A strategies. In this age of significant change in the energy sector, infrastructure redevelopment is also becoming a non-negotiable factor.

Trends shaping the future of the energy industry:

Strategic decarbonization

Formulating solutions for transitioning to decarbonization without losing financial goals is an essential need in the energy sector. Carbon Capture and Storage technologies are viewed as interim solutions to cut greenhouse gas emissions and convert carbon to other uses until comprehensive decarbonization techniques take hold. Renewable energy must be made cost-effective and scalable via technological development. In addition, a seamless and successful transition is contingent upon the participation of those most impacted, a deliberate government strategy, and intersectoral and international cooperation.

Global energy demand

Following a decline in electricity consumption the previous year, worldwide energy demand increased by 4.6% in 2021, surpassing pre-pandemic growth rates. As developing and growing nations enjoy economic expansion, it is anticipated that the demand for affordable energy will expand further. Nations have the opportunity to leapfrog to more sustainable ESG solutions to meet their infrastructure and socioeconomic needs. China is preparing itself to play a larger role in meeting energy demands in the global south, impacting geopolitics and the transition to renewables.

Consumer initiated changes

Energy consumers, including all industries, organizations, and individuals who utilize energy feedstocks, play a crucial role in easing the energy transition. Enhanced demand for decarbonization will facilitate the commercialization of low-carbon technology and renewable energy. Energy businesses and politicians must solve challenges to the adoption of clean energy, such as availability, affordability, and dependability. In addition, while it is inevitable that the global energy demand will rise, more sustainable consumption patterns can be encouraged by raising environmental awareness, stressing financial rewards, and enhancing efficiency.