Improving the Global Energy Industry by Integrating Macro-Technologies: Challenges and Opportunities for Corporations

Abstract

Emerging energy technologies and market evolution of some energy products, particularly natural gas, can converge to produce a new global scenario closer to the objectives of Sustainable Development, with a smooth transition that would avoid social and economic upheavals and could open a new cycle of growth and wealth. The first steps of unconventional gas production have induced stabilization in the gas spot price that should be continued to guarantee stable prices in the long term. Another line of development that should start a second phase of consolidation and cost reduction is the field of Renewable Energies. Besides research and technology advancements, a new financial deal could substitute for subsidies and feed-in tariffs. Last but not least, electric vehicles and other emerging technologies from the demand side will also have a main role in this quest to re-structure the Energy sector, where a new hierarchy of energy goods and energy applications will appear, and a better integral use of energy will take place. A main consequence of that will be a significant reduction of CO sub(2) emissions, and a cheaper cost of energy, although fiscal policies could swallow this advantage. In this transition, which would likely last thirty years or so, energy corporations will have to face challenges and opportunities to consolidate their working and value-adding status.