With increased emphasis on corporate social responsibility and digitalisation, companies within the Energy, Mining and Renewables industry are expected to be acutely aware of the trends that are impacting their industry. Our global leaders have outlined the 5 trends they expect to see emerge over the next 12 months and into 2021.
- Social responsibilities in Mining - Whilst cost cuts and efficiency gains are important, they have always been constants in the mining industry. The new focus is definitely around environmental and social responsibilities and what miners can do to help reduce emissions and leave a cleaner social footprint in the communities where they operate. The bigger mining companies have already implemented initiatives, but how will the small to mid-cap cope the challenge, especially given the increased level of public scrutiny? Will it mean some projects are no longer viable or will the drive for efficiency see the emergence of larger companies and a different dynamic in the industry?
- Electric Vehicles to face increased practicality issues – We are all aware of the Electric Vehicle (EV) revolution, but how far away are we from EV nirvana? Production of EV vehicles is one thing, but there are a lot of practical issues associated with implementation, integration and logistics. There will not be gain without pain and serious change to consumer habits and expectations.
- Increase in machine learning and AI in the Oil and Gas Industry – AI and machine learning are disrupting all sectors and oil and gas is not an exception. Expect to see oilfield recovery rates increasing due to the application of AI and machine learning to support development of better enhanced oil recovery techniques and tools, as well as increasing the success rates of oil and gas exploration activities.
- Financing in Mining – As China experiences its slowest annual growth since 1990, expect mining companies to mitigate their risk from leveraging strong Chinese demand to revaluating how they are financing their projects with a focus on reducing their debt ratios and improving the overall health of their balance sheet. There may also be an increase in joint ventures as mining conglomerates seek to reduce their exposure to any one project.
- Increase attention on Hydrogen energy – what was once an emerging energy source is quickly becoming established. We can anticipate to see an increase in Hydrogen based projects over the next 12 months as there is increased focus on how organisation can reduce their carbon footprint and in a way that is financially and economically viable.