Energy Execs Focus on Changing their Business Models

According to the 2015 Energy Industry Outlook Survey conducted by the KPMG Global Energy Institute, recent events like the drop in oil prices and the rise of dispersed electric power production have pushed energy executives to focus on new growth strategies and ways to compete. KPMG’s annual survey, which polled nearly 200 senior energy executives in the U.S., found that more than half of executives (56%) are in the process of or planning changes to their business models over the next two years.

“The recent collapse in oil prices is an issue on the mind of every energy executive,” said Regina Mayor, advisory industry leader for energy and natural resources at KPMG LLP. “It caused a ripple effect that has had profound implications across the entire oil and gas value chain.” At the same time, the power and utilities sector is focused on grid resilience and distributed energy supply growth, increasing cost pressures, and a challenging regulatory environment.  Almost 70 percent of the execs surveyed indicate they see a significant move away from the traditional vertically integrated regulated utility towards a more unbundled and distributed energy supply market future.