Kelcy Warren and other key players in the energy industry always have their ear to the ground, ready to shed light on the challenges ahead. Through their insights, it’s possible to see where the industry will go next, especially when it comes to sustainability.
D CEO recently put the spotlight on Jennifer Warren for their November issue to give their readers a clear look at the energy world in 2022 and beyond. In the past, they’ve similarly profiled Kelcy Warren, Scott Sheffield, and other industry leaders.
In anticipation of their upcoming release, the magazine did a quick interview with Jennifer to discuss the current energy challenges and future outlook of the industry. Here’s what they went over.
Top Reasons for Current Energy Challenges
Jennifer Warren looks at the big picture when it comes to clearly outlining the reasons behind the current energy challenges. Upon doing that, three main factors come into view: limited natural resources, higher energy demands, and the drive toward decarbonization.
Kelcy Warren and other industry leaders must address all three factors in tandem to truly overcome the challenges and move the energy world forward. But that’s not an early feat, for sure. The decarbonization drive, in particular, proves endlessly difficult due to the oil supply constraints and natural gas difficulties.
Oil Supply Constraints
The oil supply suffers from low supply largely due to global unrest and production deficiencies. In fact, oil production will decrease by two million barrels per day through December 2023. To combat that, prices have increased to help manage supply decreases, but that’s only moderately helpful due to discounted oil flowing through the global market.
Volatility remains high as a result, especially in the face of recessionary effects and constantly changing policies. Oil demand will only drop so far, after all, and the current political climate generally has a negative effect on energy security as a whole.
Natural Gas Difficulties
Difficulties in the natural gas world add to the decarbonization drive challenges across the energy industry. Prior to Russia’s invasion of Ukraine, Europe aimed to transition from natural gas to renewable energy sources.
Unfortunately, they relied too heavily on Russian gas, resulting in an absence of backup sources of energy during the transition. To cope with the absence of adequate gas supply lines, European countries have turned to coal, resulting in even more pollution worldwide.
The United States must pay close attention to this situation and avoid letting their access to energy resources get politicized. Otherwise, the widespread implications could sweep across the globe. But if the US gets it right, then Europe could look toward its shale oil and gas model as the smart way forward.
As supply chains for food, energy, and natural resources shift, companies all across the energy industry must pivot as well. A focus on citizen welfare over energy firms can greatly benefit countries as they try to minimize energy challenges.
Capital Market Fluctuations Impact Energy Transition
The state of the capital market greatly impacts the transition to truly sustainable energy models. During the pandemic, the markets shifted toward a focus on green energy but like during other difficult times, this focus never lasts long.
Instead, the market swings back toward value investments, effectively eroding progress made using the environmental, social, and governance (ESG) investing model. The best way to avoid that is by making the ESG model more transparent, so industry leaders can speak to sustainability and progress at the same time.
Problem Solvers Poised to Further Sustainable Energy Efforts
Problem solvers like Kelcy Warren, Jennifer Warren, and other key players are the answer to moving the energy industry forward. It all comes down to firms that focus on doing all they can to benefit society as a whole.
Strong leadership is key in getting that done, as is a focus on creating processes designed to advance society. Energy companies could do well to work alongside sustainability-minded infrastructure firms in achieving their goals.Beyond that, innovative, high energy density approaches, like ocean wave technology, could be the way of the future.
But in the end, the vision of the way forward must get paired with realistic backup plans to make real progress over time. Otherwise, energy firms may find the challenges too big to overcome and have to renew their efforts once again.
Read the full story here: https://www.dmagazine.com/business-economy/2022/10/conversation-with-energy-journalist-jennifer-warren/