Alexandro Rovirosa, CEO at Roma Energy, has long been accustomed to the dynamic nature of the oil and gas industry. Here are the six big trends to look out for in 2020, according to Alexandro Rovirosa.
1. Technology Increases Efficiency for Production and Exploration
Just as software, artificial intelligence and robotics have upended the information sector, healthcare, and finance, technology is rapidly forcing companies in the energy sector to become safer and more efficient. As companies on both the upstream and downstream end of energy production and exploration seek to achieve more stability in their production to meet demands, advances in technology will continue to inform better decision-making.
2. Renewable Energy is On the Rise
One major challenge to meeting energy demands is the worldwide concern for climate change. Initiatives that seek to address these concerns place greater burdens upon renewable energy development. Ironically, production and exploration of renewable energy still often requires assistance from fossil fuels. This is true for two reasons.
First, according to Rovirosa, current renewable energy sources are not yet able to meet the kind of demand civilization requires even on a modest scale. Research and development efforts are slow to find efficient implementation of renewable energy sources that can properly meet demands.
Additionally, as ironic as it seems, the research, development, production, and exploration of renewable energy sources still manages to require the use of fossil fuels for its own sustainability. As grows the determination to implement renewable energy, so grows (at least temporarily) the use of traditional fossil fuels.
For these reasons, fossil fuel remains just as much (and more so) a crucial component to a diversified portfolio as does renewable energy. That being said, renewable energy is still very much on the rise and will gain more attention by energy experts and investors next year.
3. Greater Focus on Stabilizing Production to Accurately Meet Demand
Both PwC and the IEA noted of 2019 oil production its tendency to make strategic planning unusually challenging (compared to other business or finance sectors). As such, leaders like Alexandro Rovirosa understand that the “high risk, high reward” nature of doing business in the energy sector and are no strangers to this tension between supply and demand.
Consumers are no fans of fuel shortages, whereas drillers and refineries are less than thrilled with production gluts (that is, a massive oversupply – in this case, oil and gas). Business auditors at the PwC describe the oil and gas industries as “shifting sands.”
Once again, these problems are nothing new. But with the advent of wider developments in global business (such as tech and disruptive business approaches), Alexandro Rovirosa says these trends are easier to see, anticipate, and even make faster decisions to account for unforeseeable changes in gas/oil supply and demand.
4. Operational Transparency Will Lower Costs and Risks
Operational transparency refers to the ability of decision makers and shareholders to see issues in process. The last five years have seen amazing increases in the kind of technology that can expose problems at all levels of gas and oil production and distribution. Throughout this year and next, Alexandro Rovirosa expects to see more CEOs, CFOs, and CIOs adapting to digitization, thereby increasing operational transparency.
5. Greater Awareness for Sustainability
In short, companies crucial to and investing in the energy sector will feel pressure to think long-term rather than short-term. This is sustainability, a vision for the tension between supply and demand to stabilize over time. Rovirosa’s role as CEO of Roma Energy is to target long-term stability for their clients and the industry as a whole.
6. Developing Nations Need More
Regardless of advances in renewable energy and first-world nations lowering their dependence upon fossil fuels, developing nations are quickly offsetting with major energy demands of their own. Developing nations are only developing faster as the world becomes a smaller place and economies assume a more global focus.
Alexandro Rovirosa is not only the CEO of Roma Energy, but a longtime veteran of the energy sector. His background in downstream operations (sales and marketing) merges with his skills in law and business development to make notable adjustments in fuel exploration and production. Learn more about Roma Energy online or connect with Alexandro on LinkedIn.
