Executives, investors adjust transition plans: Survey
The vast majority of energy company executives and investors have altered their energy transition strategies over the past year, with energy security concerns gaining focus, according to a new survey.
More than 70pc of both executives and investors have changed their plans this year, according to the second annual survey conducted by law firm Womble Bond Dickinson. Executives have deepened their interest in energy efficiency, electrification and biofuels and biomass while investors have deprioritized environmental, social and governance (ESG) in 2022 compared to last year.
While the industry remains committed to developing sustainable energy sources and is accelerating adoption of renewables and decarbonization technologies, market and geopolitical conditions paired with energy security concerns have shifted the focus toward boosting all energy supplies, with natural gas as the transition fuel of choice, according to the survey.
Of the nearly 140 energy executives and investors surveyed this year, 93pc represented companies headquartered in the US.
Most respondents said they expect at least five more years are needed until hydrogen and geothermal have a meaningful effect on the energy transition. They also expect that last year's Infrastructure Investment and Jobs Act will help develop battery storage.
This year's survey found increasingly divergent views on the likelihood of meeting the White House's greenhouse gas (GHG) reduction goals, with rising percentages saying energy companies are "not prepared" and that they are "very prepared."
Executives agreed that the most pressing challenges facing the industry are fuel availability, supply chain disruptions and regulatory compliance. Investors, however, appear significantly more concerned about the financial burden of stranded assets.
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FERC OK’s Virginia Transco gasline expansion
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Derailment may interrupt SoCal renewable diesel
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