Renewable energy stays strong despite plummeting oil prices

Global oil prices have been steadily falling for the past few months, but the availability of relatively cheap oil is not holding back sustainable energy. Clean energy sectors like wind and solar PV are growing steadily and showing no signs of slowing down. Could we see renewables overtaking coal as the leading source of electricity by 2040, and what does this mean in terms of business and investment opportunities? Oil – prices falling, jobs rising The combination of easing demand for oil and rising global production has resulted in prices tumbling by approximately 30 percent in recent months. Following three days of falls, oil prices saw a slight gain on November 20th on speculation that the Organization of the Petroleum Exporting Countries (OPEC) could take action to halt the decline. The group is currently producing more than its quota of 30 million barrels per day, which has led to calls for a small cut in production to shore up prices. Opinion is divided on whether this will happen, or if OPECs strategy will continue to be dictated by senior members like Saudi Arabia, which is reluctant to decrease its oil output. A survey of 20 analysts by Bloomberg was split right down the middle, with ten respondents expecting the organization to reduce supply and the rest anticipating no change. All eyes will now be on the OPEC meeting on November 27th. Bjarne Schieldrop, chief commodities analyst at Norwegian corporate bank SEB, said: I think that OPEC must announce a reduction to the [production] cap. Then the big question is of course how they will actually achieve that with no obvious candidate willing to cut their supply. The oil and gas industry remains a hotbed of growth and opportunity for businesses and professionals. In the U.S., oil and natural gas production jobs increased from 422,033 in 2009 to 586,884 in 2013, a rise of 28 percent. Average wages were USD108,000 in 2013, more than twice typical pay across all private sector industries, according to the Energy Information Administration. Along the U.S. Atlantic and Pacific coasts and in the eastern Gulf of Mexico, offshore oil and natural gas leasing could generate nearly 840,000 jobs and raise more than USD200 billion in government revenue, the American Petroleum Institute has predicted. Growth and investment opportunities in sustainable energy Wind and solar power have become an increasingly important part of the global energy mix in recent years and this trend will continue for the foreseeable future, regardless of trends in oil prices. Taking solar power as an example, the technology has experienced a substantial decline in cost since the turn of the century. Furthermore, it shouldnt be affected by oil prices because the two energy sources are not in direct competition with one another. Tom Werner, chief executive of California-based SunPower, said the price of oil has almost nothing to do with future demand for solar, even in the Middle East. We can price solar energy significantly below diesel-produced electricity, he told investment analysts during a conference call. You have to have substantially lower cost of barrel of oil to even come close to the numbers that you can hit with solar. By 2040, global energy supply is likely to be divided into four fairly equal sectors – low-carbon sources (nuclear and renewables), oil, natural gas, and coal. Sustainable energy generation would still be in the minority in this scenario, but it is technologies like solar and wind that are set to see the most rapid growth. In a report highlighting the positive outlook for renewables, the International Energy Agency (IEA) said these sources are expected to account for nearly half the worldwide increase in power supply up to 2040. If this prediction proves accurate, sustainable sectors will overtake coal as the leading source of electricity. [Tweet @Hult_Biz Renewable sources are expected to account for nearly half the worldwide increase in power supply up to 2040.] Renewables are expected to go from strength to strength, and it is incredible that we can now see a point where they become the worlds number one source of electricity generation, said IEA executive director Maria van der Hoeven. With such exciting growth on the horizon, surely sustainable energy is a prime sector for venture capital investment and business start-ups? This could well be true, if the U.S. Department of Energys USD34.3 billion portfolio of investments in renewable projects is anything to go by. As of September 2014, the Loan Programs Offices investments in assets like solar power plants and wind farms had made a profit of USD30 million, with a loss rate of 2.28 percent. But like any investment prospect, sustainable energy should be assessed in terms of its drawbacks as well as its advantages. One factor is the level of support particular sectors receive in government subsidies. Despite pledging to end subsidies for fossil fuel exploration, the G20 nations are spending about USD88 billion a year on oil, gas, and coal exploration, research has shown. Without this support, projects to access hard-to-reach resources would not be financially viable for private companies. Furthermore, the Overseas Development Institute (ODI) and Oil Change International pointed out that every U.S. dollar in renewable energy subsidies attracts USD2.5 in investment, compared to USD1.3 for fossil fuels. Shelagh Whitley of the ODI said: Despite the widespread perception that renewables are costly, our research reveals that finding new fossil fuel reserves is costing nearly USD88 billion in exploration subsidies across the G20 Scrapping these subsidies would begin to create a level playing field between renewables and fossil fuel energy. It will be interesting to see how these two industries – with their contrasting characteristics but equally keen appetites for growth – perform in the years to come. Make the most of what your career has to offer with a Masters in International Business from Hult. To learn more, take a look at our blog The Top 7 Skills Needed for Success in International Business, or give your employability a huge boost with an MBA in international business. Download a brochure or get in touch today to find out how Hult can help you to explore everything about the business world, the future, and yourself. 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We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .