Despite the looming threat of political unpredictability, the global energy sector remains steadfast in its optimism, as revealed by the latest report from DNV, an independent energy expert and assurance provider. The report, based on insights gathered from nearly 1300 senior energy professionals worldwide, underscores a resilient positivity within the industry, with approximately 73% expressing confidence in its growth trajectory for the upcoming year.
"The transition towards a sustainable energy future is not just desirable; it's imperative,” Ditlev Engel, CEO Energy Systems at DNV states. “Key drivers of optimism include the relentless march toward decarbonization and electrification, offering long-term clarity amid near term uncertainty. Understanding this shift as a necessary progression aligns with the industry commitments under the Paris Agreement, reinforcing its determination to drive meaningful change. Consequently, the industry's optimism about the path ahead is well-founded – especially since the requisite technologies are already within our reach.”
However, amidst this overall optimism, the report highlights a complex landscape characterized by shifting dynamics across specific sectors. Notably, the electric power and renewables industries have experienced declines in optimism, attributed to rising costs and disruptions in supply chains, which pose significant challenges to project viability and the pace of energy transition.
Political uncertainty emerges as a prominent concern, with nearly two-thirds of respondents citing it as the primary threat to success over the coming year. The 2024 wave of elections and potential policy shifts, particularly in the Americas, has raised apprehensions among energy professionals, reflecting the polarized landscape of energy and climate politics.
Eirik Wærness, Senior Vice President and Chief Economist at Equinor, emphasized the necessity of carbon border adjustment mechanisms to incentivize governments worldwide to price carbon effectively, facilitating the energy transition.
On a positive note, the oil and gas sector has seen a resurgence in confidence, attributed to its pivotal role in meeting global energy demand while navigating the transition to cleaner fuels. Established companies in the sector have capitalized on opportunities in decarbonization and renewable energy ventures, reaffirming the importance of integrated approaches in weathering market fluctuations.
Looking ahead, industry experts stress the significance of systems thinking and integrated approaches for navigating the future energy landscape. Jacqui Bridge, executive general manager at Powerlink Queensland, and Gerard Reid, co-founder of Alexa Capital, underscored the increasing influence of consumers in driving energy transformation, highlighting the need for adaptability and strategic vision in addressing evolving challenges.
