Globalisation and the need for secure, affordable resources and energy supply go hand-in-hand. Economic development is dependent on sufficient sources of energy including from oil, gas, electricity, coal, alternative fuels and others.
Natural resource constraints, such as those relating to energy use and climate change, will also boost demand for new, greener technologies. Yet despite these long term structural challenges, shareholders are persisting with a short term focus, impacting the capital available for investment and, as a result, constraining options for growth. There are also concerns over the ‘spot mentality’ from shareholders focused on fluctuating commodities prices and short term returns rather than the long term investment horizon required in the sector.