The oil and gas sector is used to the highs and lows of economic cycles. With a longer-term decline in oil and gas demand, the next decade could look very different for these markets. The sector must make a switch in mindset to become human centered with technology serving in a subservient role. This is easier said than done. Most companies’ talent strategies rely on the ‘certainty’ of people with experience within the sector. However, our prediction is that the true revolution will be led by new blood; by leadership with an origin in other sectors. 

The change we require will be brought by leadership with a different background. Leadership that is more diverse and more varied than we’re used to. New eyes with a fresh perspective on the sector will enable us to see how far the horizon can stretch. If you keep doing what you always did, with the same people, everything will probably stay the same. If we want to go further; out of our comfort zone and into the next gear, we must choose more inclusive leadership; leaders who will bring a fresh perspective. 

In order to accomplish the climate goals set in Paris, the energy transition will need to accelerate. The need for guaranteed access to affordable, safe, reliable and sustainable energy remains. But to combat the deterioration of the climate, fossil fuels will have to substituted by sustainable, renewable sources. This requires a radical change in the way energy is generated, transported, stored, consumed and saved. 

The energy transition is probably the greatest challenge of our time; the entire ecosystem of energy supply and demand needs to be revised. There is a great need for change agents in the energy sector; leaders who can effectively deal with the complexity, unpredictability, unfamiliarity and speed with which the energy transition is characterized. This requires a leadership style that is founded on a strong drive and an ability to take both responsible and calculated risks, to turn creative ideas into concrete innovative projects and change processes. Tomorrow's leaders mix vision, consistent focus, knowledge and decisiveness in the areas of strategy, innovation and operational management.

As the energy transition gains momentum, it’s becoming clear that whilst the challenges are many, so too are the opportunities. Companies can and must look forward to jointly growing new markets, backing their pioneering role with solid investments. And as the Paris goals already risk missing the mark, urgency is concentrating minds and money as never before. 

Utilities were once managed by single parties that were regional grid operators, producers and/or suppliers. Encouraged by new legislation, companies increasingly focus on one of these niches. Whilst the green advance will remove the dominance of large power plants, the electric power grid must change fundamentally and fast. The change can be summarized as ‘3D’: Digitization, Decentralization and Decarbonization. The one-way grid will be replaced by a system interconnecting small supply points, transporting electricity in all directions according to supply and demand.