Nearly 73% of senior energy professionals from around the world are bullish on the industry's growth trajectory for the upcoming year, according to DNV's annual Industry Insight survey –revealing a resilient optimism within the energy sector, despite prevailing caution.
The figure has remained steady at around 74% since 2022, reflecting a resolute stance adopted by the industry amid turbulence, according to DNV’s survey of nearly 1,300 senior energy professionals around the globe.
"The transition towards a sustainable energy future is not just desirable; it's imperative," remarked Ditlev Engel, the CEO Energy Systems at DNV.
"Key drivers of optimism include the relentless march toward decarbonisation and electrification, offering long-term clarity amid near term uncertainty. Understanding this shift as a necessary progression aligns with the industry commitments under the Paris Agreement, reinforcing its determination to drive meaningful change. Consequently, the industry's optimism about the path ahead is well-founded – especially since the requisite technologies are already within our reach,” he said.
However, beneath this apparent stability lies a complex landscape of shifting dynamics, according to DNV.
While the industry as a whole maintains a positive outlook, specific sectors, such as electric power and renewables, have witnessed notable declines from previous peaks, it stated.
DNV's survey found that nearly two-thirds of the energy sector view global political uncertainty as the primary threat to success over the coming year.
Specifically, DNV's study reveals that nearly two-thirds (62%) of respondents perceive the 2024 wave of elections and potential policy shifts as one of the steepest barriers to growth.
Given its importance to the global energy sector, the outcome of the upcoming elections in the US holds particularly significant implications for energy industry sentiment and strategic planning.
"For decades, the energy sector has faced enduring political risks, evolving from localised tensions to global challenges affecting every aspect of the industry," explained Engel.
"Amidst fluctuating prices, disruptions in supply chains, wavering investor confidence, and shifting regulations, stakeholders stress the importance of maintaining a long-term perspective, anchored in stable supply contracts," he added.
According to Engel, in this climate of uncertainty, the energy sector must demonstrate resilience, adaptability, and a strategic vision for the future to overcome policy ambiguities and foster economic growth, job creation, and prosperity for all.
"Furthermore, to effectively scale the energy transition across various industries, it's imperative to streamline and standardize processes. A key challenge is to secure lasting regulatory support and clear visibility into the future to rapidly deploy existing technologies," he added.