Energy Service Companies in 2020-21. Analyzing the Trend

The emergence of the energy service provider in the eighties continues to be a spontaneous surge to the top in the case of demand. The start of the energy services company can be traced back to the energy crisis of the late 1970s, as entrepreneurs manufactured solutions to combat the increase in energy spending. An energy service company (ESCO) is a company that offers detailed energy solutions to their customers, which includes auditing, redesigning and developing modifications to the ways the customer consumes energy, the primary aim being refined efficiency.

It is now very clear that the “new norm” post COVID-19 is driving organizations to assess their business models and adjust appropriately. Technology has performed a critical function in the evolution of the energy providers industry.

As we’ve earlier pointed out, the fundamental challenge for energy service companies comes down to decreasing expenses and deliver sustainable solutions for the future. Through the 1990s we got a tide of independent energy service providers due largely to deregulation and the soaring cost of oil and gas. Energy service firms shine in a deregulated market condition as with the one we’ve got now with the Trump Administration.

A good study between the United States and Canada explains the contrastive distinctions involving a deregulating government like the United States is these days, and the Liberal leading government of Canada. In truth, as of this writing Total has stated they’re going to be writing off over $6 billion in Alberta oil sands assets in Canada.

There are a myriad of options of energy service organizations this includes but not constrained to: meter testing and proving, fuel flare venting, sampling and analysis, shutdowns & turnarounds, industrial cleaning and plenty of other energy solutions. A couple of other solutions include water treatment, transportation, pipeline monitoring, well restoration, midstream & downstream solutions and energy cost savings and administration.

Image courtesy of Energy Service Marketing

One of the most popular energy service is the one of energy management. Energy management firms are increasingly more frequent as energy prices increase. Contrary to popular opinion energy rates are believe it or not flexible and it is energy consulting firms that can help companies realize more cost effective energy rates. The first action any energy management firm will undertake is a complete and wide-ranging energy review in an effort to recognize a starting base-line. Energy consultants use a defined start point which is always to undertake a wholesale and thorough energy audit to be later utilized as a gauge of future energy cost savings. The energy management consultants are oftentimes, impartial of the organization itself and work in unison with the executives. The importance of the working relationship amongst the energy consultants and the organizations top executives cannot be understated given through any energy review it is essential to have corporate leaders conveniently available.

Some of the services these companies perform might include things like turnarounds, construction, environmental impact studies, meter proving, mobile boiler trucks, transport and others. As to be expected across much of the world, coronavirus has forced the industry to rediscover itself and therefore we are now seeing many firms adapt to this “new normal”.

For the purposes of this blog post we arranged to ask Alex Huesing senior executive of operations of Bloom Consulting what his thoughts were on the industry moving forward after the virus.

“Honestly it concerns me with what the future holds for the energy markets in Canada. With political tensions and the danger of a resurgence of COVID19 we’re all at the mercy of the federal governments of the world.”

Energy services companies are ostensibly unique from consulting engineers and equipment contractors: the former are normally rewarded for their tips and advice, whereas the latter are paid for the equipment, and neither accept any project risk.

Outdated energy control technologies plagues a lot of industrial properties in the US and this is predominantly the result of partially installed control systems, high energy loss stemming from lack of insulation and outdated heating and cooling systems. This is definitely one other reason why having an energy audit done is significant so you’re able to then move to the next move by hiring a professional energy consultant. Whilst it is true there’s undoubtedly so many different service offered under the energy services scope, what is certainly, cost and efficiency as their primary focus.

You have almost certainly noticed that utility organizations have, for sometime now, been grouping providers. That’s the progress of these energy utility firms we previously spoke about. In Canada we typically see energy providers partnering with government so they can further broaden their reach with customers which includes the trusted gas company in Canada called Enbridge, Enbridge has worked vigilantly to increase their providers and products to obtain a greater amount of the energy consumer market. Basically as this occurs, energy providers transform into energy service organizations offering a wide range of solutions in lieu of focusing on just supplying it.

Energy service providers providers however are a motley crew that provide industrial service providers like turnarounds and shutdowns, fuel flare venting, re-purposing of abandoned wells etc. providers that the utility firms could not be bothered to offer nor will they ever. These kinds of service will continuously remain autonomous. In conclusion you should note that energy solutions is a flourishing company that involves a myriad of different job specific services when in the oilfields or on the rig.