I would like to think so. Surely a change in consumer behavior and attitudes, renewed investor preferences and a shift in demand will account for something.
The cost of renewable energy is balancing itself out, the government is going greener and putting out incentives to ensure change is in the wind - excuse the pun. And of course, oil price expectations and forecasting are likely to be at reduced rates putting pressure on the economics and the brakes on activity. Could this accelerate decisions on P&A and decommissioning? Possibly.
We are already seeing a pivot from the large corporates as they look to comply with the Paris Agreement and the energy transition as a whole. Large portfolios are in transition. Attitude, evidence and visibility of a change in operating model and strategy is making its way through. Most of the industry is taking to social media to ensure global messaging is out for all to see.
One thing I have noticed is a change in the startups and scaleup market. There is definitely ambition, desire and technology in the "green" space which is exciting to see. As these companies embark on this journey, making sure the founders have the right skills and team to ensure longevity and sustainability to get out the other side and into full commercial mode will be a challenge but a very worthy and exciting one. These are the companies that will help drive change, get energy talent back into work and support the corporates on strategy and agenda. I think this space is one to watch and I'm sure I am not the only one.
Whilst Covid-19 has allowed people to stop and think, and others to look and judge, from what I see and read about, there is movement towards the energy transition, which is a positive. Whether there is a direct relationships between it and COVID-19, or has the wider economical and political landscape and consumer and investor appetite also influenced, is harder to tell.
Surely any change is good change.
Mackenzie Black
www.mackenzie-black.com
The UK in June 2019 became the first major economy in the world to pass laws to end its contribution to global warming by 2050. The target requires the UK to bring all greenhouse gas emissions to net zero by 2050, compared with the previous target of at least 80% reduction from 1990 levels. The UK had already reduced emissions by 42% while growing the economy by 72% and has now put clean growth at the heart of UK modern Industrial Strategy. I believe this announcement combined with the Paris Agreement in 2016, are the recent catalysts with respect to the drive towards the Energy Transition certainly within the UK. Estimates from the UK Govt are that this could see…