As the global drive towards sustainable energy grows, the pressure’s on oil, gas, and utilities companies to change. The transition to sustainability and green energy requires a massive shift in how they operate and do business.
The need to reduce greenhouse gas emissions is dire for the planet, according to a study by the United Nation’s Intergovernmental Panel on Climate Change. “There is a rapidly closing window of opportunity to secure a liveable and sustainable future for all,” analysts said.
With the increased urgency to combat climate change, businesses also face more governmental regulations. For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD) requires all large companies operating in the EU to report carbon emissions.
Clearly, energy and utility companies can’t waste any time. With energy consumption growing, they need to find ways to produce and distribute it sustainably.
One of the most significant shifts in the oil, gas, and utilities industries is the move towards green energy production. Fossil fuels have long dominated the energy landscape, with devasting consequences for the planet.
According to the UN, these fuels – coal, oil and gas – account for more than 75% of global greenhouse emissions and 90% of carbon dioxide emissions, making them the biggest contributor to climate change.
Today, companies are diversifying their portfolios by investing in renewable energy sources like solar, wind, and hydropower. This transition isn’t just about environmental responsibility; it’s smart business.
To support this shift, industries are exploring new business models, such as power purchase agreements (PPAs) and distributed energy generation, to harness the potential of renewable energy sources efficiently.
A big way companies are supporting their transition to green energy is by implementing innovative technologies and practices to streamline their operations. Existing business operations must be as efficient as possible to support the investment into green energy initiatives and development of new business models.
For example, advanced monitoring and control systems optimize processes, reduce energy consumption, and minimize waste. This not only reduces operational costs, but also boosts the sustainability of day-to-day activities.
Galp, a Portuguese multinational energy corporation with refineries and a utilities business, is making the transition to green energy with help from SAP to improve operational efficiency.
With reduced TCO, it can better support its newer initiatives and net-zero goal, including producing green hydrogen to decarbonize its industrial activities.
With many businesses focused on net zero, carbon accounting has become a priority. Learn how organizations can track their greenhouse gas emissions, and the benefits and challenges of carbon accounting.
Tracking and reporting on emissions are essential components of the sustainable energy transition. Companies are investing in technologies that allow them to monitor air pollutants, greenhouse gas emissions, and wastewater emissions in real-time.
This data is vital for internal sustainability efforts, but also crucial for meeting regulatory obligations.
By effectively measuring and reporting on sustainability data, these industries can demonstrate their commitment to environmental responsibility and transparency, building trust with stakeholders, including customers and regulatory bodies.
Carbon accounting software is gaining traction as a way for companies to track their greenhouse gas emissions across the value chain.
Another critical aspect of the transition to sustainability is effective monitoring of energy usage. Companies are analyzing metering data to create customer profiles and gain insights into energy consumption patterns.
This data-driven approach allows for more efficient resource allocation and better demand forecasting.
By understanding how customers use energy, companies can offer personalized energy solutions and services that cater to individual needs and promote energy conservation and sustainability.
As customers worry about paying their bills, utility companies must step up their customer service by making it efficient AND empathetic.
The energy business is changing fast, in part due to changing consumer behaviors and expectations. More and more, customers want sustainable and personalized energy solutions.
By leveraging data analytics and unified customer profiles, utilities can offer tailored energy plans and offer innovative services and products such as smart home solutions. This personalized approach improves customer satisfaction, but can also reduce energy consumption to boost overall sustainability.
Predictive maintenance provides early detection of potential issues in equipment, which reduces downtime and preventing environmental mishaps.
Moreover, intelligent asset management helps extend the lifespan of critical infrastructure, reducing the need for resource-intensive replacements.
Altogether, the sustainable energy transition in the oil, gas, and utilities industries isn’t merely a trend; it’s a necessity. By making the move to green energy production and working efficiently, these industries can reduce their environmental impact and position themselves for a profitable future.
Brent Potts, senior director responsible for global marketing for the oil, gas, and energy industry at SAP, co-authored this article.
