In our view, the single biggest issue confronting oil and gas executives, as well as the leaders of businesses supporting them, is the transition underway in our energy supplies. As we have pointed out previously, energy transitions are an ongoing process. That is due to the slow pace of change. What slows the transition? Historically, rapid transitions have been hindered by the need to build new infrastructure to harness the new supplies whenever there have been significant shifts. Not only does it take time for the infrastructure to be put in place, but society must embrace the new fuel.
Having written on aspects of the energy transition, we felt the need to put the bits and pieces together in one place. This Musings is our attempt to do that. We apologize up front since covering the topic has increased the length of this Musings. It is, however, still written in parts designed to be self-contained. That means each can be read individually. We also apologize that we couldn’t go into great depth on each topic. From this exercise, however, we have gained a greater appreciation for those energy transition topics requiring greater research and analysis. Look for those articles in future Musings.
While there are always many newsworthy energy developments to be covered in each Musings, in our mind, the most important issue confronting energy executives dealing with their long-term business strategy is gaining a better understanding of the pace of the current energy transition. It is happening faster than many anticipate, but, in our opinion, nowhere near as fast as some forecasters predict. That is what makes understanding this issue so difficult, yet also so important. Whatever the pace, rest assured it will prove disruptive to the “business as usual” mindset of many industry executives. Hopefully, our readers will not fall into that camp.