The introduction of the energy service company in the 80s was nothing short of a crazy surge to the top as it pertains to demand. Energy services firms supply a wide of energy solutions which include fuel flare vent, monitoring & safety, turnarounds, abandoned well restitution, vegetation control and chemical clean-up. The ideal target of every energy service company (ESCO) will be to supply sizeable cost savings in energy spending by delivering energy audits and evaluations and effectively making processes much more efficient with regards to energy prices.
From their start in the eighties, energy service companies have evolved and expanded. Since COVID enveloped the world we’ve seen probably the most radical changes to this sector while trying to remain relevant. Technological advances plays a sizable function in the energy vertical and consequently energy services company (ESCOs) have adjusted to support this now technologically progressed market.
This is relatively unknown outside of the field however energy costs and efficiency can be improved and in point of fact that is the main intent for almost any energy services company. In the 90’s with deregulation we witnessed the rise of energy services companies then activities slowed down throughout the Obama administration we saw reversals of regulations just to again be deregulated by the current President Donald Trump. Now we are witness to almost certainly the biggest deregulating governments the Americans have ever seen which is only getting better with recent remarks from the Trump Administration made in Texas this past week.
An interesting study between the United States Of America and Canada shows the contrasting distinctions within a deregulating government like the USA is these days, and the left government of Canada. In truth, as of writing this article Total has stated they’ll be writing off over $6 billion in Alberta oil sands assets in Canada.
Each ESCO varies in their own technical specializations whereas others include the complete scope of service including measurement & regulatory, project planning, integrated solutions, commissioning & startup and more. However why bore (no pun intended) you with the specifics of every one of them.
Energy consultancy firms are on the increase as rates fluctuate we see a demand for energy consultants to bargain for reduced energy prices. For energy managers or consultants as they are also called, the central focus is definitely to save their customer in the energy expenditure department. Setting a baseline before embarking on any energy savings commitment is a key component to any energy management service. Energy consultants use a defined start point which will be to perform a complete and thorough energy audit to be later employed as a gauge of future energy cost savings. Commonly you will find the energy consultancy firm working jointly with administrators inside the organization they are contracted by. This permits for prompt decisive judgments. At this hierarchical level the energy consultancy firms have direct access to the organizations decision makers.
Of the plethora of different service providers available, some may include shutdown services, new plant fabrication, fuel flare venting, well service and chemical clean-up to name a few. Overall though we are on the cusp of a paradigm shift within this sector due largely in part to the pandemic that has gripped the world over the past 6 months.
We interviewed an executive with EnStar Energy Services who had this to say about our post-COVID world.
“The energy segment has experienced many blows through the years and if I’m to be candid, whilst this virus is damaging and in a wholesale manner, the industry will rebound. Our company for example has used the past couple months to strategize on how we need to move forward in 2021.”
There are a lot of different aspects relating to the variety of services presented by these firms, however one thing they have in common is they’re all intrinsically tied to the constantly changing price of energy.
One thing energy providers have to deal with is government codes and keep up to date with the constantly shifting rules and guidelines they have to comply with. The company of energy service can indicate many things but the one commonality regarding them all is the common milestone of reducing energy costs and making current procedures more economical.
Ahead of coronavirus we had already begun to see utility firms begin to transform themselves and make themselves more pertinent by grouping service you might not of previous thought they could offer. Things like internet providers now offering bundles with TV and home phone on top of the internet service. In Canada we oftentimes see energy providers merging with government so they can further broaden their reach with customers such as the top gas company in Canada named Enbridge, Enbridge has worked diligently to expand their solutions and products to get even more of the energy consumer market. Basically as this happens, energy providers become energy service providers offering a extensive assortment of services versus concentrating on simply providing it.
Now before you go off thinking this means the end of energy service providers companies I’d like to emphasis that commercial energy providers or those working in the oilfields, are a modern necessity and can not be substituted by utility titans. However there is always a chance they could bring them more in-house versus outside private firms. If there is any takeaway from this read is that energy service providers organizations are going to be with us for the foreseeable future and adjusting to whatever the world hurls its way.