ESCP Europe Alumni Magazine - n°147 - Mars/Avril 2013 - 46

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By Patrick Gougeon, ESCP Europe London campus Director,
Executive Master in Energy Management Academic Director,
Research Centre for Energy Management ESCP Europe Director

Entering a new era of
the energy industry
The quest for technical expertise... but management skills also count!

A new era and
an uncertain future
Few would go against the
view that energy companies
and policy makers are facing
significant challenges as we
enter a new era. The issues
to be addressed are many:
can we count on technological breakthroughs to cope
with surging energy demand
and at the same time handle
the long term environmental
constraints? What type of
regulatory framework is most
likely to provide the incentives
for the necessary changes to
take place? To what extent are
nations ready to cooperate
in addressing global energy
challenges? Can we be assured that capital markets
will provide the tremendous funds needed to develop energy infrastructures and improve energy
efficiency?
Many players with antagonism
Understanding the energy industry has also become extremely complex: who are the players?
What are the linkages and what is the balance of
power? Its scope used to be rather well delimited;
this is no longer the case.
The sector has long been segmented into oil and
gas versus utilities, resulting in a high degree of
specialisation, but this distinction no longer holds
with most companies diversifying their activity.

- ESCP Europe Magazine N° 147 - Mars/Avril 2013

Oil-rich countries have also established their own
national oil companies to put their hand on reserves, forcing large international oil companies to
give up their power and eventually to take high
risks in non conventional oil and gas projects.
Outsourcing is now a systematic operating mode,
giving high-tech service companies a dominant
position along the value chain. In the electricity
sector, as a consequence of «unbundling» imposed by regulators and other measures aiming at
more competition, the dominance of historical national champions is challenged by new entrants.
At the same time, technology providers are expected to play a key role, given that new technologies
will inevitably affect the whole system. For instance, the development of «smart» technologies
for a new grid and demand responsiveness may
dramatically affect the electricity market; it is indeed a prime opportunity for newcomers such as
IT and communication firms to enter the industry.
Providers of cheap efficient solar panels will
also play a key role, what with technological
breakthrough allowing the long distance transport
of electricity also affecting the organisation of the
electricity market on a grand scale. It is a threat for
incumbents, but this also provides opportunities
for newcomers keen to bring change to their profit
margins.
Technological and innovation capabilities
are key...
In this dynamic and uncertain environment, energy
companies are undoubtedly facing a technological
challenge first and foremost: they need to build a
cutting edge technological capability to be prepared to transform and expand their activity through

Table des matières de la publication ESCP Europe Alumni Magazine - n°147 - Mars/Avril 2013

Couverture
Zapping
Sommaire
BUSINESS
Personnalités du mois Didier CORDERO (EEMBA 96) : Donner de l’énergie
Focus
- The global energy map
- At the edge of a new age
- Le futur énergétique
- Sustainable cities
- La performance énergétique
- Offshore wind farms
- A change of attitude
- Indian challenges
Itinéraires
- Joaillerie sur mesure
- Tous les chemins mènent à l’énergie
Entretiens Agro-alimentaire
NEWS
Vie du réseau
- Fany PECHIODAT (01 BE), Fondatrice de My Little Paris
- Nominations
- Bon anniversaire !
- Les fauves de la 57
- Carnet
- Passation de relais
- Agenda
À lire
Carrière Énergie managériale : ressource vitale ?
Voyages Chutes Victoria : le premier matin du monde
CAMPUS
École Entering a new era of the energy industry
Fondation Merci pour votre soutien !
Vie étudiante
- cHeer uP ! souffle ses 10 bougies
- Nous voulons l’Europe
- Sur la ligne de départ
- Un avenir où vous allez bien tourner !
- Faire renaître le théâtre

ESCP Europe Alumni Magazine - n°147 - Mars/Avril 2013