RENEWABLE ENERGY GAINS IMPORTANCE FOR OIL/GAS COMPANIES.Oil and gas companies are one of the major emitters, if not the major emitter, of carbon in the world today. With climate change now the greatest environmental challenge, it has become imperative to reduce carbon emissions dramatically in the future. Therefore, oil and gas companies are facing one of the biggest upheavals they have ever experienced, with renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. gaining key importance in their market strategies. Frost & Sullivan (http://www.energy.frost.com) has recently created Green Energy, a new division within its Energy department that will focus on the green energy industry. One of the projects Frost & Sullivan's researchers are working on is the impact and the emerging relevance of renewable energy on the integrated oil and gas companies, especially within Europe. 'The Renewable Energy industry has gained prominence in the recent past for a number of reasons', explains Frost & Sullivan research analyst Bobby James. 'The major factors are increasing fuel prices, environmental concerns with regard to greenhouse gas greenhouse gas n. Any of the atmospheric gases that contribute to the greenhouse effect. greenhouse gas (GHG GHG Greenhouse Gas GHG Governor's Horse Guard (various locations) ) emissions, dwindling dwin·dle v. dwin·dled, dwin·dling, dwin·dles v.intr. To become gradually less until little remains. v.tr. To cause to dwindle. See Synonyms at decrease. crude supply, ever-increasing demand for energy and so on'. The European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community has set an ambitious and binding target of achieving 20 percent of all energy consumption to come from renewable energy sources by the year 2020, from a current level of less than 7 percent. The 27-member EU also agreed to cut carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. emissions by 20 percent below 1990 levels by the year 2020. The major factors driving the European Union are the need to tackle global warming global warming, the gradual increase of the temperature of the earth's lower atmosphere as a result of the increase in greenhouse gases since the Industrial Revolution. caused by the emission of greenhouse gases (GHG). 'Over the last decade the integrated oil and gas companies have started focusing on this emerging trend and the majority of these companies already have ventures and projects on the ground', says Bobby James. The underlying reasons for increased focus on the renewable energy industry are driven by: - The cost of discovering and developing new oil and gas reserves is increasing as most of easily available and good quality crude reserves (have already been discovered - The ever increasing global demand for energy - Improving commercial viability of renewable energy projects - Heightened realisation that renewable energy is a future business opportunity 'The challenges facing the oil companies are similar to those being faced by other renewable energy market players', explains the analyst. 'One of the major constraints is the high initial investment cost in renewable energy. Another issue is the price of energy produced compared with that from conventional energy sources. This challenge has softened in the recent past owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the current high price of crude oil. With certain renewable energy segments like wind and solar energy solar energy, any form of energy radiated by the sun, including light, radio waves, and X rays, although the term usually refers to the visible light of the sun. , the regular and continuous supply of energy is also a constraint.' But what are the alternative sources of energy that are prevailing in the oil and gas industry? Wind and solar photovoltaic The generation of voltage by a material that is exposed to light in the visible and invisible ranges. See photoelectric and photovoltaic cell. are the sectors in which these companies are investing most as these are comparatively more matured in terms of commercial viability and technology. A significant proportion of R&D investment is also being routed into emerging alternative energy sectors such as hydrogen and biofuels. If you are interested in receiving more information about this project and our Green Energy Subscription, please send an e-mail to Chiara Carella - Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. at chiara.carella@frost.com with your full name, company name, title, telephone number, e-mail address See Internet address. e-mail address - electronic mail address , city, state and country. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available. Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com or call 210-247-3870. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion