Among the fastest expanding sectors in the oil and gas arena is energy service providers. The beginning of the energy service providers company can be credited to the energy crisis of the late seventies, as business owners created methods to counteract the surge in energy prices. An ESCO is a company that offers broad energy solutions to their clientele, which include auditing, redesigning and developing adjustments to the ways the customer consumes energy, the primary aim being improved efficiency.
It is now very clear that the new normal post COVID-19 is compelling organizations to look at their company models and adjust accordingly. Advances in technologies have contributed to the industry’s progress as a whole.
As we have previously outlined, the primary goal for energy service firms boils down to lowering spending and create eco- friendly solutions for future years. In the ’90s with deregulation we observed the rise of energy service companies then things stunted during the Obama administration we observed reversals of regulations to again be deregulated by the current President Donald Trump. A couple of years in to the Trump presidential term we’ve observed a sizable extensive deregulation in the energy sector which clearly benefits energy service providers.
An interesting assessment between the US and Canada depicts the contrastive discrepancies within a deregulating government like the USA is as of today,, and the progressive leading government of Canada. In truth, as of this writing Total has said they will be writing off over $6 billion in Alberta oil sands investments in Canada.
With such a wide variety of O&G services these organizations offer, it is difficult to mention only a few despite leaving out a great number of other important varieties. However it is really worth keeping in mind that amongst this industry, technological advances has played a top role in encouraging the sector progression. A couple other services include water treatment, transportation, pipeline tracking, leak detection, midstream and downstream solutions and energy cost savings and administration.
Energy procurement companies also play a very important factor in the management of energy operating costs with the milestone of reducing expenses and making efficiency a top priority in most organizations. Contrary to popular belief energy prices are indeed negotiable and it is energy consulting companies that can help companies discover more cost effective energy rates. Energy consultants often initiate their contracts by doing a complete energy audit and creating a start line. Creating a documented starting position after a company runs its energy evaluation is imperative. The energy management consultants are generally, independent of the organization itself and work in unison with the executives. Whilst energy management consultants function singularly of the organization hiring them, it is a fact that energy consultants work close with administrators for a multitude of reasons.
Field energy services firms offer a wide array of service like meter proving, sampling and analysis, electrical and instrumentation, fabrication, automation and controls and even software solutions. Overall though we are on the cusp of a paradigm shift within this sector due largely in part to the pandemic that has gripped the world over the past 6 months.
We interviewed an executive with EnStar Energy Services who had this to say about our post-COVID world.
“What else can I say except that it has been a damaging hit to the market yet we do are of the opinion things will get better and we’re prepping for that now.”
Energy Service Companies (ESCOs) may be privately owned providers, either independent or an integral part of a large conglomerate, state-owned, non-profit, jv partnerships, manufacturers or manufacturers’ subsidiaries.
Debauched energy control devices plagues a large amount of industry buildings in the U.S. and this is for the most part because of the partially installed regulation systems, excessive energy loss a result of lack of insulation and dated heating and cooling systems. This is certainly an additional reason why getting an energy audit done is significant so it’s possible to then move to the next step by getting a skilled energy consultant. The underlying end goal for anyone in the energy providers company is to always attempt to save their clients, in some form or another, with lower energy rates. Now this could mean simply making present systems more cost-effective.
It is without doubt that we will be seeing a transformation, or an development per se, of energy utility companies whereas instead of selling just electricity or gas, utilities providers will begin to sell bundled services, which might include providers utilities didn’t considered before, service providers enabled by smart meters and smart home technologies, like home security, as an example, or monitoring the elderly. In the US & Canada this transformation has already launched with leading utility organizations bundling their solutions and mating them with discounted prices, so to lure people and organizations to entrust them with all their energy service requirements. We’re now experiencing the progress and fusion of utility and service companies.
You are likely wondering that if this indeed is taking place then wouldn’t that make private energy service companies obsolete? Still we hope that 2021 brings much prosperity to the energy sector and we can look back at 2020 as a year of lessons.
One of the companies referenced in this article is QuotEnergy. Below find their location within Google Maps.