In the era of Clean Energy, three reasons why Oil&Gas is still important
Updated: Mar 16, 2021
1. Oil and Gas is still a 3.2 Trillion, with a “T”, dollar industry
According to market research by IBISWorld, a leading business intelligence firm, the global oil & gas exploration and production (E&P) market in 2020 was approximately $3.2 trillion. O&G accounts for over 2/3rds of the world energy mix.
Even with forecasting a 3% decrease year over year, the O&G industry will still be in the “4 Comma Club” in 2050.
Eat your heart out Russ Hanneman. (Ref. Silicon Valley)
2. Energy efficiency initiatives including O&G far outweigh renewable energy in terms of CO2 reduction
Energy efficiency represents the single largest potential contributor to global emissions reduction, according to the International Energy Agency (IEA 2017).
Burning of fossil fuels undoubtedly releases greenhouse gases but so does the exploration, production, refining and transportation of this natural resource.
There are ample opportunities for Oil & Gas companies to perform better, faster, safer, cheaper, and cleaner if sufficient investment would exist for these initiatives.
3. Oil & Gas related companies are at a discount
With the majority of investor focus being on renewables, there is an abundance of oil and gas related technologies that can be had for a fraction of the cost.
Look no further than your nearest tech accelerator that is churning out companies who offer cost reducing innovations in advanced materials, IoT, blockchain, remote operations, autonomous vessels, and others… all offering an above average ROI.
But it’s not just the O&G tech companies.
There is invaluable oil and gas expertise which has been accumulating since oil was first drilled in 1859. These lessons learned can be transferred to the greater Energy sector and other industries as well if given the chance.
With over 100,000 oil and gas jobs lost in the U.S. during COVID according to Fortune magazine, these high performers are also ready to come off the bench and contribute in other areas outside of Oil & Gas.
About the Author Steve Louis is a Managing Director at Eternal Energy LLC based in Houston Texas. Eternal Energy is a business advisory firm which has helped a number of clients at various stages of their growth including Oil & Gas related companies.
He can be reached at email@example.com or by visiting www.eternal-nrg.com.
Keywords #oilandgas #cleantech #energytransition #renewables #energyefficiency #technology #covid #energy #businessadvisory @eternal-nrg