Tectonic Energy Moves: I Feel The Earth Move Under My Feet
“I feel the earth move under my feet
I feel the sky tumbling down
I feel my heart start to trembling
Whenever you’re around”
by: Tom Hochstatter, President
We saw two vastly different, yet tectonic outcomes in the global energy sector this past week. After reading both stories and the industry commentary, an old Carol King classic popped into my mind, “I Feel The Earth Move Under My Feet” (if you’re so inclined).
First, a Dutch court has ordered Royal Dutch Shell to reduce its carbon emissions by net 45% by 2030. That is a massive undertaking in just nine short years. The lingering question I have is “what if they don’t?”
Second, we saw an activist hedge fund, Engine No. 1, get at least two new board members installed at ExxonMobil. As of this writing the final votes were still being counted and there could one or two additional seats from this hedge fund. Even the two will pressurize decisions on reinvesting towards a greener future or dividends - a perennial attraction to buy/hold XOM stock over the years.
None of these outcomes is overtly surprising to most of us that work within and follow this sector closely. Change is always predictable - form and function not so much; means vs. ends and all that.
We know the end here though: smaller carbon footprint, huge migration to clean/green and renewable energy sources and a spying public to keep everyone honest. No argument - just time to get to work. All said, it is a great time to be in the renewable innovation sector.
Back in February I highlighted numerous clean energy startup accelerators and incubators focused exclusively on new energy innovations. A few of them are sponsored/funded by “big oil” themselves, which is promising in and of itself. I encourage you all to move past the Tesla headlines and dig a little deeper at innovations smart folks are working on.
The caution for those so fervent in the big changeover is that this effort will take time and not a couple of years mind you, but multi-decades. One way to temper your internal timeline - consider a transcontinental flight fueled exclusively with a renewable energy source or 100% electric/batteries…that’s quite a ways off. The encouragement now for all of us is to see what incremental steps can be taken to launch the migration in earnest…journey of a thousand miles…
So, in addition to the likely tectonic breakthrough innovations from all of these super cool renewables start ups, also embrace and applaud the incremental breakthroughs hundreds of companies are making each and every day to green up your planet.
Watch these spaces: electrification of traditional oil fields using natural gas/flare gas/field gas to power electric generators, waste heat to energy, carbon storage, conversions to [safe] hydrogen, hybrid & electric cars and trucks, basic recycling, coal to natural gas for electric grids, micro grids at home and the office. What other ones are you watching? Let me know in the comments.
So fight like hell for good, demonstrable change in this world but don’t forget to support the cadre of folks working day-to-day right now to bring you incremental innovations that will make our world better and your kids’ too. All the while do your part to conserve and plant a tree or two too…because the best time to plant a tree…