The 2014 Energy Survey is a snapshot of key findings of issues impacting the energy industry. Considering the ever changing environment and obstacles impacting the industry, executives are feeling positive about the state of the industry and the potential for growth. This survey reflects the viewpoint of over 100 energy industry executives and the key issues they see for 2014.
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"The issues uncovered by the survey indicate a rapidly changing industry with lots of opportunity. By focusing on key changes and trends, KPMG can be much more effective in serving our clients."
John Kunasek, National Sector Leader, Energy & Natural Resources
Select highlights and survey results from the report.
When do you think the United States could attain energy independence?
KPMG's outlook: It is difficult to fathom the far-reaching economic and geopolitical implications of the United States eliminating dependency on foreign energy sources and achieving energy independence, while complete independence is unlikely to ever be achieved, U.S. energy security is definitely within reach. U.S. natural gas is a low-cost alternative to other energy sources that is quickly becoming an essential part of the global energy mix. Further, executives expect greater use of renewable energy (23 percent) and alternative fuels such as natural gas, electricity, and biodiesel for transportation (20 percent) to play a role in accelerating U.S. independence, although the development of cross-border pipelines and transmission lines (37 percent) would have the biggest effect.
How do you expect your company's U.S. headcount to change one year from now?
KPMG's outlook: The Energy Information Administration reported that during the six-year period between 2007 and 2012, the oil and gas industry recorded a 40-percent employment jump, compared to one percent job growth in the private sector1. And our survey reveals that the energy sector will continue to be the place to look for work, as companies seek new talent to support aggressive growth plans. They will also have to replace the industry's significant retiring population. More than 50 percent of companies report that five or more percent of the workforce will retire in the next five years, often from senior-level positions. In addition to ramping up hiring efforts, involving industry workers at earlier phases of key projects (48 percent) and investing in internal training programs (29 percent) are some steps energy companies will take to prepare for the decline in skilled trades workers. We also suggest that innovative technology—which enables organizations to do more work with fewer employees, enhances recruitment and training, and is often attractive to potential technologically savvy employees who will backfill positions—represents a powerful opportunity for managing the energy industry talent crisis.
In an effort to drive accelerated growth over the next 3-5 years, what processes/resources is your company deploying?
KPMG's outlook: 2014 will be a year of transition and consolidation, as energy companies jostle for top position in an active and highly competitive market. Companies will seek to emerge from the pack by improving performance and developing operating models that can help convert current marketplace pressures into competitive advantages. Acquisition activity will be active, with 65 percent of respondents saying their companies are likely to acquire stakes in another company. But whether an organization, expands to a new area, consolidates its core businesses, streamlines operations through emerging technology, or waits to see how things shake out, no company will be unaffected by the aggressive push for growth throughout the industry.
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