Industries
Energy
Energy is possibly the most dynamic industry today. As CEOs and CFOs look to the future they see a number of key issues on their plate. There is a window of opportunity for energy companies to get ahead of the curve and to become the solution providers. Additionally, investors and entrepreneurs are focused on alternative energy technologies and cleaner fuel options in the hopes of cashing in on the energy boom.
The Push Toward New Technology
With the recent memory of skyrocketing prices of oil, investment in new sources of fuel has never been more keen such as clean coal, solar, tidal power, wind farms and bio-fuels. Additionally, new opportunities have arisen in the development of incremental technologies that improve efficiencies for existing coal plants, gas pipelines, nuclear plants and other sources of energy generation. Accordingly, the industry must step up to the plate and develop a diversified resource mix of oil, natural gas, coal, nuclear and renewable energy sources, rather than relying on single source of energy. Concurrently, there is the constant pressure to reduce the Carbon Footprint and be mindful of the public perceptions on global warming. Solving the climate change dilemma, therefore, will require not only breakthroughs in alternative sources of energy but also new technologies that allow continued use of fossil fuels in more environmentally friendly ways.
Narrowing of Options: Rising Costs and Tightening Credit Markets
Commodity and construction prices are rising; carbon containment costs also need to be considered, and generation facilities are aging world-wide. Additional investments will be needed to modernize and counteract these factors. The energy industry is also finding itself with a shortage of experienced professionals. Simultaneously, the current global financial crisis has created challenges in obtaining funding for new as well as in existing projects. At a time when increased investment is a dire need, generation and utility companies are trending conservative in order to preserve existing capital.
Convergence of Regulatory Policy and Energy Priorities
The appetite to encourage new idea and different ways of thinking through regulation has increased. Such incentives will accelerate the adoption and spread of new technologies. Markets are being developed world-wide to trade emission allowances. The focus will be on reducing greenhouse gas emissions in a more highly regulated environment. Governments around the globe will be playing a large role, yet increased regulatory red tape comes with increased government involvement.
Energy Security: The New Risk
True energy security now concerns the modern geopolitical realities of world-wide instabilities which encompass economic matters now that credit markets are tightening. Climate change also adds fuel to the mix.
How Can MorganFranklin Help?
MorganFranklin has significant experience advising global energy conglomerates. Our breadth of experience ranges from developing world-class security technology to advising global clients on improved efficiencies; as well as managing risk and streamlining financial reporting. We have the industry and functional experience to help you overcome some of today's biggest challenges and capture unique opportunities created by the changing environment.Explore our capabilities
