Photo by Zbynek Burival on Unsplash

The future of oil and gas and its influence on the Supply Chain

Energy companies are resisting the global energy crisis, currently increasing due to the high prices of raw materials. However, the results of several surveys show that investors expect prices to remain solid.

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Around 70% of respondents of a recent survey about the Energy industry said they expect oil prices to remain above $60 per barrel for at least three more years, predictions done before starting the February conflicts in Europe.

Many experts estimate that 2022 will be optimistic for the oil, energy and utility sectors since, looking closely at the current Energy industry, we can observe a rapid transformation due to several developments.

The oil and gas industry rebounded strongly throughout 2021, with oil prices reaching their highest levels in six years, and the recovery is better than expected. Several trends point out the possibility of generating digital technology, which would allow the creation of sustainable energy sources for the efficient use of energy systems.

Renewable energies were the most promising trends in the energy sector in 2020, as the several technologies that aid in the generation of power or heat from renewable sources, including a reduction in the manufacturing infrastructure cost and by generating enough Energy at a reasonable efficiency rate.

An example of the above is the so-called „Internet of Energy”, which helps address various challenges and offers efficiency through an optimal design to build different functional and Energy systems; this Internet of Energy implements diverse control intelligence distributed across energy transactions among users.

Thus, this energy generations trend creates a brilliant grid and improves the optimisation and coordination of the macro energy system. Several energy platforms connect energy developers and investors with consumers.

The solution helps to leverage Blockchain technology to build a complete ecosystem through coordinating for fundraising and the exchange of fully renewable energy assets.

The technologies used today provide a sufficient generation, but you have to consider costly energy-storage solutions. Energy storage helps with stable pricing by managing consumers’ energy demand.

Suppose there is an opportunity to store energy in the future; users will keep it during the best season and conditions when they find it profitable.

So, this stored renewable Energy will help reduce the load on the grid during the demanding high season, whilst consumers earn more, as the purchase of Energy becomes very expensive.

Blockchain technology is a significant trend when it comes to energy sectors; this technology helps to unite all stakeholders in Energy and Supply Chain Management under a single robust network that is entirely decentralised.

Distribution network operators, monitoring operators, electricity producers, and traders will benefit from intelligent contracts available with the help of Blockchain technology under a decentralised network. These smart contracts always help smooth energy-related transactions through a very immutable and secure network without facing any potential loss or damage.

On the other hand, we must consider Energy as a Service (EaaS) since it will soon be a trend this year. There are some clear visions of the energy system in the future in the Internet of Things and Artificial Intelligence.

EaaS will enable the selling electricity process for various services such as consumption tracking, consumption management and production optimisation. The presence of storage and diverse energy sources in the local area will increase the efficiency of the energy grid, allowing more people to access it.

However, this favourable energy outlook could strongly be disturbed by the severe conflict. We can expect critical consequential scenarios for the supply of Energy, the world economy and trade.

The leading stock market indices have gone red; although they are recovering, substantial volatility persists. Those countries depending enormously on commercial relations with the nations in conflict will experience their worst recession.

The gas market and the oil industry alarms were more virulent, higher than expected. Both reactions were predictable, given Russia’s strategic role in the world’s energy supply, especially in Europe, where 33% of the gas and 20% of the oil consumed come from Moscow.

Conclusions: this military offensive opens a dangerous conflict that will end with a high toll mainly on human lives and in material losses and severe consequences in the SC behaviour for world trade and economic recovery.

Is your company storing Energy for the future?

Dave Food

M: +44 7775 861863

Photo by Zbynek Burival on Unsplash