I’ve always known that Americans hold a pretty different view about the state of the energy sector than elsewhere in the world, but never really knew how to characterize those variances.
Today, I write in gratitude, thanking the efforts of Sonal Patel, senior writer at Power magazine. Patel developed this helpful visual framework summarizing the recent issuance of the World Energy Issues Monitor, a a global survey undertaken annually by the World Energy Council posing the question “what keeps energy leaders awake at night?”
For each of three regions — North America, Europe and Asia — Patel has drawn circles for each major issue area of potential concern to the energy sector and placed them on a two-dimensional chart, where higher indicates more impact and right represents more certainty. The size of the circles is proportional to the urgency of an issue.
Perusing Patel’s graphic is an illuminating exercise. Of note:
Only in North America is the topic of “unconventionals” — meaning producing oil and gas from unconventional sources such as shale and oil sands — viewed as a particularly big deal. In Europe, unconventionals are somewhat lower on the radar screen, and in Asia barely on the screen at all.
Conversely, energy prices are a critical topic in Europe and Asia, but deemed only of modest importance in North America.
Similarly, energy efficiency is high on the agenda in Europe and Asia, not so much in North America. Even more starkly, renewables are seen as only a low-impact issue in North America, and a more significant issue elsewhere.
Perhaps because of the high penetration of renewables there, energy storage is of most interest in Europe, but of less interest in North America, and of hardly any interest in Asia.
Nuclear energy is viewed as a high-impact issue in North America, moderate impact in Europe, and (perhaps surprisingly) low-impact in Asia. So, for that matter, are electric vehicles.
The so-called “hydrogen economy” — involving the use of fuel cells for power generation and transportation — retains a bit of interest in North America (though with low urgency), but has fallen off the map elsewhere. Carbon capture and storage (CCS) follows somewhat of the same pattern, although Europe does hold it in higher esteem than hydrogen.
True, there are some commonalities to acknowledge: the smart grid and policies to deal with climate change and energy subsidies are seen in approximately the same light globally.
However, more than anything else, Patel’s framework shows that leaders in the energy industry live in very different worlds, depending upon which part of the world they live and work in.