An interesting document has come out of Lloyds that reveals some of their thinking about energy security, and the risks and opportunities it provides for business.
Lloyds point out that 300 years of experience has given them a bit of an understanding of risk, and it is from that platform that they suggest that now is a really good time to get serious about finding ‘a new energy paradigm’.
The summary says that “The primary purpose of this report is to remind the reader that all businesses, not just the energy sector, need to consider how they, their suppliers and their customers will be affected by energy supplies which are less reliable and more expensive…reputations will be won or lost as the public demands that businesses reduce their environmental footprint.’
The report includes some of the bad news for those wishing things could just stay the same, with key points like :
- Businesses which prepare for and take advantage of the new energy reality will prosper – failure to do so could be catastrophic
- Market dynamics and environmental factors mean business can no longer rely on low cost traditional energy sources
- We are heading towards a global oil supply crunch and price spike
- Energy infrastructure will become increasingly vulnerable as a result of climate change and operations in harsher environments
The (potentially) good news is captured too :
- Investment in renewable energy and ‘intelligent’ infrastructure is booming. This revolution presents huge opportunities for new business partnerships
We have a history of creative design and innovation, and developing both hardware and software to support clean – tech approaches is an area where we could reap real economic success and make a positive contribution to managing climate change. All we need now is a government that understands the opportunity and will create the policy settings to help make it happen!