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It is no longer news that we are experiencing a period of scarcity with energy supplies in the United Kingdom. What we are still not sure of is how long this scenario would play out. Due to a lack in capability with operational and financial demands, we already have six energy companies gone under, with more energy businesses to potentially follow.
The government at the moment does not seem inclined to tackle the current volatility by bailing out the small players within the industry. What is clear is that in a fast driven competitive global market, where oil prices are just rebounding after the pandemic, the big oil companies, mostly driven by fossil fuel production, are posed to do all they can to come out as winners of this energy crisis.
The temptation to maintain the status quo and do little regarding global warming may not be far-fetched. The big energy companies are still struggling to balance their books, and are faced with the impending resolution from COP 26 in Glasgow, which more likely than not, would bolster unilateral action to impose renewable obligations and regulatory norms on the fossil fuel industries, and it will be safe to assume that the bigger the company, the greater will be these obligations.
National and international policies on fostering green agendas will continue to be on the rise globally, and this means that investments in renewable sources of energy will continue to drive global economies and as such, the need for a systematic reduction of fossil fuel production and the promotion of renewable means of energy production would continue across board. There is currently a momentary fightback by the big oil companies, but this is not going to last.
Increase awareness and sensitisations regarding the consequences of global warming and the negative publicity which industries and organisations who are not working to improve the environment would have on public awareness, means that the vast majority of businesses will have no choice but to continue to see environmental issues as a fulcrum for business strategy and continuity.
The big oil companies are surely a major culprit of global warming and are not likely to be spared of the obligation to reform. But as fossil fuel utilisation gets reduced and as it is being replaced by energy from renewable sources, these oil companies and oil producing nations will do well to leverage their existing energy capacities towards sustainability and environmental management and investment.
We know that old habits die hard, and the backlash from this crisis may taper towards a reluctance to implement necessary sustainable policies, but, as it is, because of public pressures on reformation, there will be no going back and the big oil companies will ultimately have no option but to change drastically towards renewables, or die!