From the early 90’s we’ve experienced the emergence of energy service providers. Energy service firms cover a thorough range of energy industry service. The top mission of every ESCO is to always provide sizeable savings in energy rates by providing energy audits and analysis and effectively making processes more efficient relating to energy costs.
As the world emerges from the gripes of the coronavirus we’re watching the progress of the energy service company. Innovation has a major part in the energy vertical and because of this energy services company (ESCOs) have adjusted to service this now technically progressed sector.
Energy services companies are fundamentally distinct from consulting engineers and equipment contractors: the former are generally paid for their tips and advice, while the latter are paid for the hardware. All through the ’90s we saw a upsurge of independent energy service providers due largely to deregulation and the increasing cost of oil and gas. Three years in to the Trump presidential term we’ve seen a substantive wholesale deregulation in the energy sector which demonstrably benefits energy service providers.
In 2006 the trade group NAESCO stated energy service providers expanded by 22% and boasted $2.6 billion in revenue marking a paramount moment for energy services companies throughout the United States. In Canada the popularity of ESCOs also expanded dramatically largely in the oil rich province of Alberta.
Each ESCO varies in their own technological expertises whereas others address the entire spectrum of service which includes oilfield rentals, meter testing, turnarounds and shutdowns are a few of them. Nonetheless why bore (no pun intended) you with the details of them all.
Among the more popular energy services is the one of energy management. Energy management consultants are significantly more frequent as energy prices increase. Energy consulting firms totally focus on one thing…spending less by streamlining process from an energy expenditure point of view. These service providers start with carrying out what is called a base line of preliminary energy assessment. Energy consultants have a defined start point which is always to execute a full and thorough energy audit to be later used as a measurement of future energy savings. The pluses of working closely with top company directors is that when a determination is required to be made its made right away. For this reason energy consultants work along side and are accountable to, company administrators. The importance of the close working relationship between the energy consultants and the organizations top executives cannot be downplayed given in any energy audit it’s important to have management promptly available.
Of the plethora of different service providers available, some may include shutdown service providers, new plant fabrication, fuel flare venting, well service providers and chemical clean-up to name a few. As to be expected across much of the world, coronavirus has forced the industry to rediscover itself and therefore we are now seeing many companies adapt to this “new normal”.
We spoke with Max Tacy, an operations executive with Lightspeed Energy providers and here’s what he had to say.
“Fantastic to talk to you today so thank you for permitting me to explain. Frankly we see things a little different than some by seizing this moment to reconsider how this disease will impede our work environment and transforming what we can to keep our staff risk-free while keeping productive.”Max Tacy
Energy services companies normally use performance contracting, signifying that if the undertaking doesn’t deliver returns on the investment, the energy service company is accountable to pay the difference, thus assuring their customers of the energy and cost savings.
One detail energy organizations have to contend with is government regulations and keep abreast of the constantly changing rules and guidelines they must adhere to. The underlying end goal for anyone in the energy service providers company is generally to always attempt to save their clients, in some form or another, with lower energy spending. Now this could mean merely making existing systems more cost-effective.
It is without doubt that we will be seeing a transformation, or a progression per se, of energy utility providers whereas instead of selling just electricity or gas, utilities companies will begin to sell bundled service providers, which might include service providers utilities have not thought about before, service facilitated by smart meters and smart home technology, like home safety, for instance, or monitoring senior citizens. In Canada and the US this transformation has already began with major utility providers bundling their service and coupling them with reduced rates, in order to encourage people and businesses to trust them with their energy service needs. From a solely economic/company understanding this union of utility company and service company is genius.
Now I know what you are thinking. Doesn’t this make energy solutions organizations go the way of the dinosaur? Nope. Think of this like the battle of the Titans whereas the big utility organizations are the ones who will battle for the energy consumer dough. There are a number of different service providers encompassed by the term energy providers company. Many, if not most, all relate to laborers working with industrial services like those in the oilfields. Lastly, you should note that energy services is a thriving company that involves a variety of different job specific providers regardless of whether in the oilfields or on the rig.