An Interview about the Energy Sector
In this insightful interview, our Energy Sector lead, Alex Coste, shares his thoughts on the current state of the Energy Sector.
Get to know our Energy Sector Lead: Alex Coste
Alex joined Henley Research International (Part of Henley Insights Group) in 2021. He has worked in BD and Research roles for International Business Consulting Firms, where he specialised in the Energy Sector within EMEA and APAC markets. As Energy Lead, his focus is aimed to support businesses in their energy transition as well as in their infrastructure needs.
What does the UK energy sector look like right now?
Brexit terms may translate into reduced access to low-cost financing for overall energy projects. The imposition of tariff and non-tariff barriers on low-carbon goods and services, reduced access to a skilled pool of labour, as well as more limited entitlements to European public funding for R&D are post Brexit consequences. However, the perspective of fracking and other controversial forms of energy generation have seemed to have found a second wind in the post Brexit environment.
How much would you say COVID has impacted the trends we see in the energy sector?
Due to the lockdown measures, all energy consumptions related to aviation, transportation, commercial activities, and industry have seen a dramatic drop, while those related to residential activities have seen a significant increase. In turn, this affected the Oil & Gas sector greatly, consequently impacting the manufacturing and supply chain sector, who rely heavily on this traditional resource. Further difficulties are felt due to the current developments of inflation caused by massive increases in liquidity by the Federal Reserve, to pay for the trillions of dollars spent by governments during and post Covid-19. Furthermore, additional complications are caused by global manufacturing and supply demand pressures (China) and OPEC+’s voluntary crude withdrawals feed the current strains of our economies and in turn, the energy sector.
Do you see any emerging trends in the UK energy sector?
The UK’s Energy Information Administration from 2021 shows a need for energy storage capacity, more efficient renewables, but also refining the integration of green energy onto the grid. Furthermore, recyclability in wind and solar sectors need to be addressed and invested in. Offshore energy production seems to be the way forward for the UK, as the world’s largest offshore windfarm, Hornsea 1, is based off the coast of Yorkshire. However, due to current pressures, thoughts on Nuclear and other high-capacity energy production alternatives are being debated upon.
Are there any locations in the UK besides London where we can find energy sector workers and employers?
Throughout the UK one can find a position within the energy sector. However, each region will have their own specialisation and expertise. As a rule of thumb, senior administrative, CXOs and trading roles are mostly found in London. Technical roles and a regional office to support them will be elsewhere in the country – close to the production site(s). Of course, this is dependent upon the area within the energy sector one is looking at.
What is the current state of play of diversity in the UK energy sector?
In 2018, the Guardian carried out research within the UK energy sector finding that women occupy 50% of all the office and business support roles and only 15% of the technical roles. In addition, as quoted in a recent study by PowerFul Women, only 5% of executive board seats in UK-based energy companies are held by women and 61% have no women at all on their board.
Consequently, there has been a push in the energy sector to get women involved in more technical roles. Yet, the UK has a shortfall of skilled engineering labour, further exasperated due to the perception of engineering. As a result, social and industry norms need to change to create an encouraging environment for women to join and lead technical labour.