Leading through uncertainty in the energy sector: How organizational transformation / evolution is influencing decisions in the energy field
April 18, 2024
Speaker: George Nsoribe (Chevron)
With the global clamor for lower carbon emissions, huge volatility in oil market prices, cost of exploration and production, technology changes and political factors in regions where oil is found in commercial quantities, the near- permanent pseudo war between USA and China to the actual war in Eastern Europe, It’s the dawn of a new era in the energy industry and realizing it can no longer be business as usual, industry chiefs need to transform themselves and their organizations to succeed. To further call out the situation, in 2015 the United Nations (UN) developed a set of sustainable development goals, one of which was to ensure access to affordable, reliable, sustainable, and modern energy for all by 2030 with one of the targets being to increase substantially the share of renewable energy in the global energy mix by then. This target puts pressure on country governments around the world to cut fossil fuel use and develop renewable energy sources. Now, with renewable energies currently being a very little portion of the mix for most global energy companies, it means the need for organizational transformation is urgent if the goal of remaining major contributors to the energy that powers the world and beat the competition must be achieved. This study will identify specific areas of uncertainties in this transformation, how the industry has responded as well as the impact it has brought. It will look at how decision making has been identified as one of the strategic imperatives alongside digital, performance management and others to help win in every environment. Based on this analysis, it will derive guidelines for firms and investors to reduce uncertainties on the path to increase renewables in the energy mix as well as support firms’ decision-making under these uncertainties.