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November - 2014 - issue > CEO View point
Emergence of Innovative Energy Future
S. Soma Somasundaram
President & CEO-Dover Energy
Thursday, December 11, 2014
The emergence of US as the leading oil and gas producers driven by the shale revolution marked a momentous turning point in shaping the global energy landscape. The shale revolution is mobilized by the advent of horizontal drilling and hydraulic fracturing technologies. The implication of this is not only on the global energy sector, but it is also a significant addition for the American economic growth. According to an estimate on shale industry which says it has added 300 billion in GDP to the US economic growth. With this, it is making US manufacturing extremely competitive around the world due to cheaper energy cost. The second trend results from the global development of shale resources around the world such as China, Argentina, Algeria, Mexico, and Russia. There are challenges on developing these resources but this process can have significant impact on the energy landscape. The third wave consists of increasing global trade of natural gas of a commodity. In the past, natural gas was a regional commodity as it wasn't cost effective to export natural gas but now, with the united cost effect the shale revolution has created L&D export from the United States which is making natural gas increasingly a global commodity. This has powerful implications on the global commodity prices. The last trend is the increasing focus by the exploration and production companies to reduce the unity cost of production. This factor is driving a significant adoption of automation and innovation in energy sector and also in supply chain excellence.

Technology Trends To Watch
The most significant trending topic is uncertainty around the regulatory environment particularly in North America. Although industry favors clear regulations but not maintaining the process is extremely challenging. The next aspect is the geo political risks in the leading energy producing regions such as Middle East, Latin America, and Russia which poses a challenge for the energy industry. Additionally, today's global energy landscape is increasingly complex. Therefore, the availability of talent or support and managing the global energy industry growth is a vital aspect.

Unlocking Challenge
Over a period of time, predominantly in the energy sector, the role of CEO has become extremely intricate and this is driven by the creation of globalization of businesses. Additionally, the increasing geo political risks and the competition for talent are also intense. These factors tend to make my function to be more complicated. Furthermore, from a challenge perspective, people increasingly exist in a world of multi speed growth, so clarity and granularity on ways of growth is significant. Noteworthy aspect is the ability to deploy capital to leverage that growth. Besides, in a world where the pace of technology development is rapid, it is imperative to have a deeper understanding of how technologies impact customers and innovating to solve those problems. Moreover, as an organization, attracting, developing and retaining global talent to realize the aspirations as there is a growing global competition for talent in recent times.(As told to Shahina Islam)

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