Economic Analysis Of The Energy Sector - Essay Example

Economic Analysis Of The Energy Sector Introduction In this essay, I will discuss energy sector as my sector of choice. I decided to choose this sector because, in the coming years, there will be substantially higher prices in the acquisition of various forms of energy. Currently, the prices of gas and oil have increased immensely, but they will soon drop, and then increase due to the decline of the dollar. This essay is going to cover the energy investment business, current opportunities in the energy sector business, and entry in the energy sector. I will use articles, journals and books relating to the energy sector business to write this essay. Section One Self Employment Opportunities in the Energy Sector are indicators of growth and prosperity of a nation. Fossil fuels are diminishing at an increasing rate and have become scarce (Steger, 2005). Due the scarcity, conservation and efficient utilization of various forms of energy have been of concern. Conservation of energy and efficient utilization of energy has tremendous potential, self employment opportunities (Taylor and Parish, 2008). There are various nonbanking financial institutions, which have developed as a result of promoting energy conservation. In addition, individuals can get self employment in the energy sector through setting up energy auditing firms that are accredited or becoming an individual consultant in the line of energy auditing (Peterson’s, 2010). Methodology In writing this research, primary and secondary materials will be used. Primary sources include interviewing self employed people in the energy sector and talking to people in the energy business. Secondary sources used include books, articles and various reports provided by institutions and companies in the energy sector. General Trends in the Energy Sector World energy production has undergone a pivotal transformation in energy and resource management. Due to the growing world population currently standing at seven billion, there is a need in development of the entire energy sector to ensure sustainability in the sector (Chung, 2005). This development requires people who are skilled in taking over investments in the energy sector. A research conducted by Karen Ward reveals that there is an adequate supply of oil for the next fifty years, and that of gas for the next 100-200 years (UNEP, 2009), but due to the growing demand for oil and gas, extraction cost and environment preservation, the industry faces a future with challenges and focuses on renewable energy sources in securing a sustainable future. Some global organizations are promoting investments in the renewable sources in order to achieve sustainability. The world’s investments in the renewable sources of energy have increased by around 30% from 2009-2010, attaining a level of $ 243 billion (UNEP, 2010). This can be attributed to the utility companies seeking reduction of carbon emissions and organizations seeking investments in the energy sector to achieve sustainable levels. According to Allen and York (2010), they see growth of renewable energy within the portfolio and corporate, business plans of modern companies. Hence, the number corporations seeking renewable energy investments are on the increase. The European job market in the wind targets to increase renewable energy by 20% by 2020 and is positively responding to the set targets (EWEA, 2009). According to RenewableUK (2011), strong growth in the wind energy sector is expected over the next decade, creating over 250,000 new employment opportunities. There is a growing demand for energy professionals in the UK due to the rise in wind energy firms (EWEA, 2009). This has created self employment job opportunities for those individuals willing to invest in the sector (Deitche, 2010). From the recent developments in the renewable energy investments, there is an increasing demand for project managers, connection engineers, environment assessors, energy auditors, and project developers to undertake the investment business. This is an area of growth requiring skilled professionals and is predicted to open up more self employment job opportunities in the coming years due to the increasing demand, growing worldwide population and the need to achieve sustainable levels (Barbier, 2010). Opportunities for Recent Graduates Conservation of energy and utilization of renewable sources of energy has the potentials of self employment generation, and entrepreneurship promotion in almost every stream of engineering, sciences, technology and humanities (Wetfeet, 2008). Various businesses utilize the services provided by self employed graduates in the energy sector. Almost every business requires the services since, in one way or another; every business must use energy in carrying out its functions efficiently. These businesses include energy firms and government run institutions like hospitals and schools. Energy firms, particularly dealing with renewable energy, will require the services of an auditor consultant, project manager, a connection engineer, and that of an assessor in fixation and usage of the energy. Take, for example, installation of wind energy, there must be environment assessors to verify the suitability of the project, project managers to ensure that the project is well carried out, a connection engineer to do the work of connecting power, and an energy auditor to access the efficiency of the energy source (OECD, 2011). Recent graduates who have different knowledge and skills in various areas of study can enter the energy sector as project surveyors, project managers, energy audit specialists, environment assessors, and connection engineers. Investment in the energy sector can also take the form of business where graduates are involved in Exchange-Traded Fund (ETF) of energy stocks. Skills, Knowledge and Experiences The movement from non-renewable to renewable sources of energy has resulted to a transformation in the job market (Moselle, 2010). As a graduate entering the energy sector, there is a need for various skills, knowledge and expertise required to work in the sector dealing with renewable sources of energy. There are varying opportunities in the wind, solar, biomass and geothermal energy sources. Different knowledge and skills are required from graduates at every level from technicians, directors to managers. The requirement in these jobs lies in transferable skills that a graduate possesses. For instance, if a graduate has knowledge in offshore installation of oil and gas, he can use the skills in developing a wind energy generation firm that deals with offshore installation. Experience in harsh North Sea environment and subsea knowledge can offer transferable skills in offshore wind firm. For graduates to open up firms dealing with installation of solar energy, they require such skills as electricity skills with training in domestic and industrial electricity installation and maintenance. Individuals who have knowledge in multidisciplinary engineering EPCs can open Combined Heat and Power (CHP) plants that will generate energy. Graduates with any engineering knowledge can create firms that will deal with almost every stage of an energy production project (Wetfeet, 2008). Research conducted from graduates in self employment in the energy sector as environment assessors and audit consultants shows that for one to become an environment assessor, a graduate needs to have good skills in environment science, and for a graduate to become an audit consultant, he or she must have knowledge and skills in finance, environment science and energy production skills. In carrying out ETF business of energy stocks, a graduate requires to have knowledge and skills in finance and mathematics. Gaining of Self-employment Opportunities in the Energy Sector In any field of specialization that an individual chooses, he must be prepared to show knowledge and skills that he possesses in delivering the services (Wetfeet, 2008). The energy sector is not an exception of this and graduates entering this sector must be ready to prove their skills in delivery of their services. One way of demonstrating knowledge and skills in the energy sector is through delivering of services with a lot of efficiency. For instance, if an individual owns a solar energy firm, he has to ensure that the mission and the vision of the firm are always followed. In addition, if an individual owns an energy auditing firm, he has to ensure efficiencies in the audit that he carries out. Section Two Personal Analysis I have financial and mathematical knowledge, which I can apply in developing my career. I have no work experience in my line of study. In addition, I have good negotiation skills, good communication skills and good analytical skills. CV and Covering Letter Refer to the appendices for CV and Covering Letter. Gap Analysis My main area of focus in developing a career is an energy audit consultant. For one to become an audit consultant in the area of energy, a graduate has to possess financial knowledge, environmental science knowledge and energy production skills. Since this is my area, I have to focus on the essential skills and proficiency that will guide me in developing self employment as an audit consultant. From the requirements as an audit consultant, I do not have knowledge in environmental science, and I lack skills in energy production. I have superb knowledge in finance, which is one of the requirements. Although in researching this paper, these were the requirements, I am of the opinion that more evidence on the knowledge and skills needed to enter this field are required. In my proposal, I feel weak in the area of interviewing graduates who are already self-employed. This is so because fewer individuals were interviewed, and in relation to giving the requirement for a particular field, the results were not adequate. I feel that the representative samples of my study were few. Career Action Plan Environmental Science Knowledge in an environmental science is training that I need to focus on since I lack knowledge and skills in this area. In order to acquire required knowledge in this area, I have to attend a training centre that trains on environmental sciences. In order to get the relevant environmental science required, I should get full information from experts in the area of auditing of energy. After getting the required environmental science, I have to get trained in the science. In addition, after training in the environmental science, I have to seek a field where to get experience in the environmental science. Learning of the environmental science and acquisition of experience may take a period of four months. Energy Production Skills In order to develop career as an energy audit consultant, one of the requirements is to have energy production skills. In order to acquire these energy production skills, I need to seek an energy producing firm, where I can undergo industrial training so as to acquire the skills. In addition, these energy production skills, I can acquire them through attending a workshop training of an energy producing firm or through looking for an attachment position in an energy producing firm, where I will obtain these skills. Acquisition of these skills may take a maximum of two months, and a minimum of one month. Financial Experience Although I have undergone through financial training, I do not have practical, financial knowledge. In order to put financial theory into financial practice, I have to seek attachment positions in a financial field in order to acquire the relevant skills. I may gain these skills also, through internship positions in firms that offer financial services. This may be acquired within a period one month. Section Three Conclusion I feel great since I have learnt a lot from the assignment. The assignment has helped me in assessing the different career options available in the energy sector. It has eliminated the limitations of discovering the requirements necessary for developing my career in the late stages. The study was necessary since it has helped me in acquiring self awareness and reflection skills in choosing an appropriate career given several career options. The assignment has also been of assistance since I can now prepare a career action plan. I intend to use the career action plan in setting goals that will assist me in obtaining a good job in the preferred area of career development. References Allen and York, 2010, Ethical working: jobs in the energy sector, Setform Ltd, London. RenewableUk, 2011, Electricity Market Reform, Great Britain Parliament, London. Steger, U. 2005, Sustainable development and innovation in the energy sector, Springer, New York. Taylor, T. and Parish, J. 2008, Career opportunities in the energy industry, Prentice Hall, New York. European Wind Energy Association (EWEA), 2009, Wind energy-the facts, Earthscan, Oxford. Peterson’s, 2010, Green careers in Energy, Baltimore, Maryland. Chung, L. 2005, Vault career guide to the energy industry, Vault Inc, New York. UNEP, 2010, Global trends in sustainable energy investment, Earthprint, New York. UNEP, 2009, Global Trends in Sustainable Energy Investment, UNEP, New York. Deitche, S, 2010, Green collar jobs, ABC-CLIO, Santa Barbara. Barbier, E, 2010, A global green new deal, Cambridge University Press, Cambridge. Organisation for Economic Co-operation and Development (OECD), 2011, Towards green growth, OECD Publishing, Paris. Moselle, B, 2010, Harnessing renewable energy in electric power systems, Eartscan, Oxford. Wetfeet, 2008, Industries and careers for undergraduate, Wetfeet, Inc, San Francisco. Wetfeet, 2008, Industries and Careers for Engineers, Wetfeet, Inc, San Francisco. Section Five Appendices 1) COVERING LETTER AND CV COVERING LETTER Name Address Phone Number E-mail address Date: 12th January 2012 Dear Sir/Madam, On 11th January 2012, I found out that you had requested for applications from individuals interested in the position of an energy audit consultant. I learnt this information from your website www.energy.jobs/com. I am interested in the position, and I hope you will kindly accept my application. I have knowledge in finance and mathematics, and I can solve problems with ease since I have good analytical and negotiation skills. In addition, I have good written and spoken communication skills. With these skills, I can be able to bring efficiency in your energy audit firm if given an opportunity. I will be thankful to get your feedback. Respectively yours, Signature. CV Name Address Phone Number E-mail Personal Information Date of Birth Place of Birth Citizenship Gender Education Graduate School High School Professional Qualifications Computer skills Financial skills Mathematical skills Interests Referees 2) CAREER ACTION PLAN SELF ASSESSMENT RESULTS After assessing the various options available from my research in developing my career, results indicated that I would like to become an audit consultant. SHORT TERM CAREER PLAN Occupational Goals: Within the next seven months, these are the goals, which I am targeting to achieve for the sake of developing my career. Educational Goals I have to attend education training on environmental science for three months and attend an experience centre for one month in order to gain relevant experience. In addition, I have to seek an energy producing firm for training that will last for two months, and a firm offering financial services for one month to gain financial experience. 3) CURRENT BUSINESS OPPORTUNITIES The current business opportunities available in the energy sector are: Energy audit consultant Project Manager Project Surveyor Environment Assessors Connection Engineer ETF energy stock Specialist Read More