The year is 1973 and due to the OPEC oil embargo, oil prices rose by 350 percent, sending shockwaves throughout the American economy. The economic crisis deepened despite businesses and the government asking customers to help by conserving energy. Businesses laid-off workers as goods became more expensive. Inflation and economic stagnation resulted in “stagflation”.
Today, the world is amidst a global energy crisis where the US has formally announced that they are facing the ‘most challenging energy crisis’ in 50 years. The globe is experiencing an unprecedented energy crisis, owing to rising gas prices and the ongoing recovery from the Covid-19 pandemic. Consistent increases in wholesale gas prices have rendered utilities unprofitable, preventing them from passing costs on to customers, and broader shortages have increased pressure on energy infrastructure. The price of Brent crude oil averaged $116/bbl in March 2022, a 55 percent increase from December 2021 and its highest level since 2013.
What caused this crisis?
The energy market is inherently complicated, and each country’s reliance on gas and electricity is determined by a variety of factors. We have a jittery retail supply industry that is vulnerable to national and international events.
The Russian invasion of Ukraine has exacerbated the situation, as extreme global events have a negative influence on energy and stock markets due to the resulting uncertainty. Russia has threatened to cut off gas supplies, raising market instability and prices. Because of Europe’s aversion to using Russian fossil fuels, more countries are fighting for non-Russian resources.
Industrial Operations: A conundrum of efficiency and profits
Today, the demand for sustainable energy investment is stronger than ever. The crucial solution to today’s energy problem – and to get on track for net-zero emissions – is a dramatic scaling up of energy efficiency and clean energy, as per the IEA.
There are numerous approaches to dealing with the current energy issue that can lead to a cleaner and more secure future. But the good news is that – the world does not have to choose between tackling the energy and climate crises, and neither can be ignored.
Improving the efficiency and reliability of industrial processes should now be a top priority. However, can the tried-and-true methods of traditional maintenance be applied to today’s ever-evolving digital plants? Let’s find out.
- Predictive Maintenance enables heavy industries to save operational expenses without sacrificing productivity- thanks to increased equipment longevity and reliable performance data. Pioneer solutions like Eugenie not only reduce asset failures but also establish a congruence between human and machine capabilities.
- AI-powered products of Eugenie reduce industrial pollution through asset efficiency and waste reduction – thus, achieving sustainable operations. Many industrial enterprises have already begun their sustainability journey through Eugenie’s robust digital ecosystem.
Eugenie’s exceptional success with industries is due to one key factor: you don’t have to sacrifice economic benefit at the expense of environmental sustainability. Furthermore, adopting Eugenie’s solutions is simple, with most of our clients receiving actionable insights within a few days after implementation.
What about the net-zero target?
Even before Russia’s invasion of Ukraine, the world was well behind schedule in meeting its climate goals. In 2021, global CO2 emissions reached an all-time high, and fuel markets were already strained. At the same time, investment in clean energy technology has remained far below the levels required to reduce emissions to zero by mid-century — a necessary but tough task that the world must conquer if it is to stay within 1.5 degrees Celsius.
According to the new IEA analysis for World Energy Investment 2022 report, global net income from oil and gas production in 2022 is expected to be about $2 trillion higher than in 2021 and two-and-a-half times the average of the previous five years.
We’ve seen how fickle the energy market can be, and while prices will eventually fall, future events and climate change implications will lead prices to rise again.
In the Net Zero Emissions by 2050 scenario, if the global oil &gas industry invested this additional money in low-emission fuels and Sustainability Technology solutions, such as Eugenie – the chances of profitability will increase considerably.
Stakeholder management, legal obligations, and economic gains will be included in the benefits gained by industrial enterprises that embrace sustainability technologies quickly. With Eugenie, Mexico’s second-largest gold mining firm was recently able to lower its carbon footprint by 12%.
Today’s climate situation has the potential to pass on a better environment to future generations, but for that to happen, it is critical to reduce the climate burden as much as possible. As thriving and profitable as any industrial company might be, in the end, sustainability will be a game-changer in the future.
Do you need help with your operations? We’d be happy to assist your machines with our best-in-class AI products to achieve economic and environmental profits.
Thrive SustainablyTM with Eugenie for a net-zero future.
If you wish to see a glimpse of our solution, register for a 15-minute demo call at https://eugenie.ai/contact-us/