Energy Industry Standard
The Energy Industry
The energy industry is a crucial sector in many modern economies. Growing demand, technological innovations, high competition and effective supply chains will continue shaping the energy sector. Energy companies will need to keep up with these changes to stay ahead.
ISO certifications will help you expertly manage your projects’ complex requirements and effectively utilize your assets. We will help you meet the requirements of your chosen energy industry ISO certifications while improving your processes and personnel.
About the Energy Industry
The Energy Industry produces or supplies energy through exploration, development, marketing, storage, production and refinement. Networks of companies are involved throughout these stages to produce and distribute the power the economy needs. The two main sectors of the energy industry include:
- Nonrenewable: Nuclear power, heating oil, gasoline, petroleum and diesel fuel
- Renewable: Onshore and offshore wind power generation, wave and tidal power generation, solar power generation and ethanol
This energy is transmitted and stored using infrastructure networks like grid technologies.
In the coming decades, global energy consumption is expected to increase due to growing populations, better energy source access and higher living standards. This energy demand will increase electricity demand, especially through natural gas, wind and solar power. Turning to these renewable sources will help reduce carbon dioxide emissions, though energy companies should still prioritize decreasing their environmental impact.
Challenges the Energy Industry Faces
Trends in the energy industry and various external factors contribute to the issues this sector faces. Some challenges in the energy field include:
- Economic activity: The energy industry’s ability to earn revenue is tethered to the business cycle. Economic activity significantly impacts energy demand. Factors such as employment, industrial production, housing, disposable income and gross domestic product (GDP) drive the business cycle. During periods of economic expansion, energy production increases, which raises the price of commodities. In recession periods, demand and commodity prices drop. When the price of energy commodities decreases, energy companies earn less profits.
- Cost reductions for renewable energy: The cost of electricity from renewable energy is much cheaper than fossil fuel plants. Since electricity consumption is increasing, renewable energy is the most cost-effective way to meet the high demand. This investment in renewable energy means power companies in the nonrenewable sector will have to face fierce competition in a saturated market.
- Geopolitics: Political events influence the energy industry by making products less available or changing the cost of commodities.
- Asset management: Energy businesses have high capital expenditures since they own large amounts of fixed assets, including processing equipment, land for reserves and facilities and transportation infrastructure.
- Weather conditions: The weather impacts the energy industry through severe conditions and natural disasters. These circumstances can damage the infrastructures that support the sector and disrupt business. Commodity prices also tend to increase in seasons with pleasant conditions.
- Research and development: Many energy companies invest in research and development to update their methods to the most efficient ones. This practice also helps companies, and the energy industry as a whole, adapt to changing environmental policies.
Benefits of ISO Certifications for the Energy Industry
Energy industry ISO certifications benefit energy companies in asset management, energy efficiency and quality management. Performing well in these areas will help energy companies succeed in this competitive field. Certification will help your energy company overcome challenges by delivering these benefits:
- Cost savings: ISO standards for the energy industry help companies save money by effectively managing resources. You will have more capital to invest in other areas of your business, such as infrastructure improvements and maintenance.
- Implement sustainable practices: Energy management systems standards like ISO 14001 and ISO 50001 help energy companies manage their environmental factors to reduce carbon emissions. As a result, your practices will be more environmentally friendly.
- Energy-efficient products and processes: Your energy company will gain a competitive advantage through energy-efficient operations that work more productively to produce high-quality products.
- Reduce raw material consumption: Sustainable practices use less raw materials and natural resources, which saves money while reducing environmental impact.
- Continuous improvement: ISO certifications for the energy industry promote continuous improvements in your processes and products. You can review your current energy consumption levels, set achievable targets, measure your progress and start making changes. You can repeat this process to evolve your company’s standards to implement new practices and achieve new goals.