Our latest energy insights
Grasping the Thistle - adding energy to the debate
After polling senior executives from Scotland's oil and gas industry, they cumulatively feel that they'll have to pay more tax under an independent Scotland, despite the current Government's consistent claims of a reduction. Read the report.
Renewable Energy Country Attractiveness Index
Technological innovation is critical to driving down costs and addressing challenges, and we must create the right conditions today to cope with tomorrow’s power disruptions. Read the latest Renewable Energy Country Attractiveness Index.
- The energy sector continues to play a vital role in the UK economy.
- In 2012, it directly contributed £24bn to the economy, a £3bn increase over 2011. It also contributed £78bn indirectly through supply chain activities, providing total gross value added of £102bn.
- Energy continues to be a large and consistent employer, employing 125,000 people in 2012 compared to 90,000 in 2008, boosting employment during an extended recession. It also supported an estimated 539,000 jobs through supply chain activities for a total of 664,000, or 1 in 45 UK jobs in 2012, highlighting its critical role in the UK’s economic recovery.
- It also continues to create new jobs, covering a wide range of engineering and technical skills. In addition, 86% of energy sector job growth between 2008 and 2013 has been outside London, Southern, and Eastern England, compared with 53% for other sectors.
Oil and Gas Eye
Our quarterly publication examines the movements of our Oil and Gas Eye index, which monitors the performance of AIM oil and gas companies on a weekly basis.
Q3 2013: A bright quarter, but the outlook for some remains dim
- The Oil and Gas Eye index posted 9.6% growth in Q3, the largest quarterly gain in eighteen months.
- Selective investor appetite for perceived riskier stocks has returned. Three AIM oil and gas IPOs reflected this positive sentiment, and the IPO pipeline suggests the AIM oil and gas universe will welcome more entrants in the remainder of the year.
- This market stability is welcome, even if it is once again short-lived. The index has not had more than two consecutive quarters of growth since 2009. The feel-good (or at least less-bad) factor has yet to reach the majority of junior oil and gas companies though.
Global trends in the emerging ocean energy market
Do you need a chief resource and energy officer?
There is a compelling case for elevating corporate resource management to the highest levels of executive management through a chief resource and energy officer (CREO) position. Our report considers the role’s value, key responsibilities, and potential models for integrating it into an organisation.
Global renewable energy country attractiveness and resource map
Our report provides a global view of the renewable energy landscape by combining the Renewable Energy Country Attractiveness Index rankings with essential data on renewables in the 40 countries in the index.
Power transactions and trends
Global power and utilities mergers and acquisitions review Q2 2013
Q2 2013 M&A up 30% in three months
Q2 2013 was an exciting quarter for the global power and utilities sector with deal value rising 30% to US$33b, up from US$25.3b in Q1. While volume remained flat, there were a handful of multi-billion-dollar transactions.
From boiler room to boardroom: optimising the corporate energy mix
Large corporates are now a driving force for renewable energy globally, and energy and resource optimisation has risen high on corporate agendas. Our report examines strategies for addressing energy related risks by integrating renewable energy into a more diversified corporate energy mix.
Creating a customer-centric utility
Today’s “know it all, want it all” customers demand far more from utilities. They expect better and more services, transparent and competitive pricing and the power to control their transactions and engage with their provider.
Meeting these needs is a significant challenge for an industry that has traditionally struggled with customer satisfaction levels. However, it is one that utility companies must meet, or risk losing out to sector competitors or new market entrants from non-traditional sectors.
Our report includes:
- Resetting the customer experience
- Innovating to broaden customer reach
- Exploring the value of data and technology.
Business pulse: oil and gas
How can you be confident your company is well placed to meet future risks and challenges? And how can you know opportunities aren’t passing you by? Our report explores the top 10 risks and opportunities in the global oil and gas sector in 2013, and looks ahead to 2015.
Utilities Unbundled 14: Re-energise, reconnect
There are challenges for utilities at opposite ends of the value chain – creating a sustainable generation mix and putting customers at the heart of strategy.
This issue looks at:
- Addressing clean energy needs within a diversified generation mix while keeping costs as low as possible
- Reconnecting with customers: utilities must improve relationships with customers to survive, or risk losing out to new competitors
- Renewable views: Dr Cord Landsmann, CFO of E.ON Climate & Renewables, explores new approaches to wind power financing
- Future-proofing coal: what will clean up coal – CCS or better plant efficiency?
- Rise of the new energy retailer: competitive energy markets face a radical shake-up from new entrants.
To find out more read Utilities Unbundled 14.
Trust: The energy industry at a crossroads
As originally seen in ‘Powering the Future’, published by Raconteur Media on 1 May 2013 in The Times.
Recent years have seen a consistent decline in the level of trust between the public and the large corporations serving them, says Richard Postance, EY Power & Utilities Advisory Leader.
The article includes:
- Why consumers have lost trust in the industry
- The positive community impact the sector is having, yet failing to 'shout about'
- The investment the industry needs and challenges it faces.
In utilities we trust?
Public confidence in the UK energy sector has been hit again as OFGEM warned that households are to face much higher energy bills for years to come, owing to over-reliance in the UK on imported gas.
Our latest report examines the steady decline in the public's trust in the energy market over the last decade and identifies the main elements needed to gain trust back from consumers.
We consider that in order to gain trust energy providers need to focus on delivering with the right intent and capability in three core areas:
- Deliver on expectations in every interaction with the customer
- Openness and transparency in every interaction
- Empower customers to make their own decisions
Read In utilities we trust.
Review of the UK oilfield services industry 2012
Our second UK oilfield services industry review (4.4Mb, February 2013) highlights the economic value of Britain's oil and gas production, and of the technology and expertise the industry fosters.
Business Pulse: Top 10 risks and opportunities in 2013 and beyond – Power and utilities report
How can you be confident your company is able to meet the risks and challenges on the horizon? And how can you be sure opportunities aren’t passing you by?
We've identified the top 10 risks and opportunities facing the Power and Utilities sector, in the context of four key themes:
- Economic volatility – The “new normal”
- Compliance and stakeholder management – Tightening regulation
- Business model evolution – Striving for reinvention
- Operational challenges – Large scale and high risk.
Are these themes similar to those you are monitoring? Are they your top 10?
Read Business Pulse to find out more.
The DNA of the COO – an oil and gas sector perspective
Based on survey results from companies across the globe, The DNA of the COO – An oil and gas sector perspective is a snapshot of how COOs feel about their role and their aspirations within their businesses.
The DNA of the COO – a power and utilities perspective
The COO's role in the power and utilities sector is typically defined by the part of the business it sits in. As with other COOs, the job's responsibilities work in tandem with the needs and goals of the CEO, as well as other variables, like the business' size and focus.
Based on survey results from P&U companies across the globe, The DNA of the COO – A power and utilities sector perspective is a snapshot of how COOs feel about their role and their aspirations within their businesses.
- For power and utilities COOs, the job's challenges are part of its appeal. Overall, 54% say the role's complexity and diversity is what makes it worthwhile, while 52% point to their ability to strongly influence the overall business' direction.
- Given the wide-ranging competencies of COOs in any industry, the global majority (40%) of those polled want to be promoted to CEO within the next five years. Within the P&U sector, this is lower, at 35%, but not through any lack of ambition.
Power transactions and trends – 2012 review and 2013 outlook
In 2012 the Eurozone crisis and decade-low US natural gas prices pushed companies to restructure asset portfolios. In 2013, regional issues will drive a robust transaction market that is expected to outperform 2012.
Our report offers a detailed analysis of deal activity, what's been happening in the Power & Utilities M&A landscape in 2012, and what to expect in 2013.
New report benchmarks the nuclear industry
After a low in the 1990s, the nuclear industry has recently regained momentum, but rising demand for nuclear is not felt equally across the world. Benchmarking the Global Nuclear Industry 2012 is based on a series of interviews with high-level representatives from 13 countries.