BCG on Energy

🌍 The energy transition is accelerating, but our grids are struggling to keep up. Expanding grid infrastructure is critical, but it’s costly and time-consuming. The solution? Smarter technologies optimize the grid we already have. Our latest report, Delivering the Energy Transition Will Come Down to the Wires, explains how deploying advanced grid technologies can boost capacity, reduce congestion, and slash costs. 🚀 How can technology unlock a more efficient, cost-effective grid? 🔹 Dynamic Line Rating (DLR) – Real-time weather and load monitoring can boost transmission capacity by up to 30%, reducing the need for costly infrastructure expansion.    🔹 AI & Digital Twins – AI-powered grid forecasting and digital twins simulate grid behavior, helping operators predict demand spikes, optimize loads, and prevent outages.    🔹 Battery Storage & Demand Response – Smart storage and flexible demand solutions can shift electricity loads, reducing peak stress and avoiding costly new transmission investments.    🔹 High-Voltage Direct Current (HVDC) Technology – HVDC cables enable long-distance, low-loss power transmission, making grids more efficient and resilient while integrating more renewables.    🔹 Power-to-X Solutions – Converting excess renewable power into hydrogen, heat, or synthetic fuels ensures no energy is wasted, reducing the need for expensive grid reinforcements. Technology alone won’t solve the energy transition, but it can make our grids smarter, stronger, and more cost-effective. Without innovation, grid congestion and high costs will slow down Net Zero progress. Stay tuned for the next post of our series where we will explain how to fix supply chain bottlenecks and workforce issues. 🔗 Check out the full report—link in the comments! Authors: Martin Högel, Oxana Dankova, PhD, Maurice Berns, Bas Sudmeijer, Eelke Kraak, Ferdinand Varga, Laura Alice Villani, and Daniel Weise

📢 Production optimization is one of the biggest untapped opportunities for the oil and gas industry—but why aren’t more companies taking full advantage?  The key barriers include: 1️⃣ Singular focus on Cost-Cutting– Companies’ Opex and Capex reduction programmes tend to divert attention away from progression of barrel chasing initiatives   2️⃣ A capability bias – companies typically expend their ‘best’ effort toward a new field or capital project instead of maximizing existing resources in mature fields where the business case is more dispersed across multiple assets  3️⃣ Technical Challenges –Brownfield is tough. Reservoir issues, aging facilities, and complexities in mature fields can hinder optimal production rates.  4️⃣ Commercial factors – such as export constraints or challenged commercials can limit additional volumes at production sites   5️⃣ Siloed Decision-Making – Teams working with incomplete data and misaligned incentives can hinder progress. 🔑 The solution? An integrated approach that systemizes a ‘chase the barrel’ workflow using advanced technologies such as AI and cross-functional organization collaboration, can help oil and gas companies overcome those barriers and embrace production optimization. Are you ready? 🔗 Check out the full report—link in the comments! Authors: Shiva Kant, Kike Beintema, Martin Bell, and Karam Alkhulaifi

📢 The refining industry is facing its biggest transformation in decades. Are you ready? Demand for oil and refined products is set to peak or plateau by 2030, with alternative energy sources rapidly gaining market share. Gasoline is the most at risk, while jet fuel and naphtha will prove more resilient.    At the same time, margins are under sustained pressure, forcing refiners to make a choice: adapt or be left behind. The winners in this evolving landscape will be those who aggressively cut costs and optimize margins.    Refiners must act now to improve cost structures through:  ✔ Smarter operations & optimized planning  ✔ Efficiency-driven maintenance strategies  ✔ Process optimization to remove inefficiencies    👉 The future of refining belongs to those who lead on cost efficiency. Are you investing in transformation or waiting to be disrupted? 🔗 Check out the full report—link in the comments!   Authors:  Alex de Mur, Clint Follette, Paul Goydan, Rebecca Hood, and Graeme McMillan

🌎 📢 To reach net zero, energy companies must transform business models, navigate new regulations, and attract massive capital investments. CFOs play a critical role in shaping this shift by:     1️⃣ Crafting a balanced investment thesis that aligns profit and sustainability.  2️⃣ Securing new financing models like green bonds & hybrid capital.  3️⃣ Driving M&A strategies to acquire renewables and emerging green tech.     The energy transition isn’t just an operational challenge—it’s a financial transformation. CFOs who lead with resilience, transparency, and innovation will define the future of energy.     Explore how finance leaders can accelerate the green transition. 🔗 Check out the full report—link in the comments! Authors: Alexander Roos, Timo Grund, and Hendrik Schnelle

📢 China built 34 GW of nuclear capacity in a decade. The UAE completed four reactors in under 10 years. Meanwhile, new nuclear projects in Western countries have faced cost and schedule overruns. 👉 What’s the difference? Simpler designs, robust supply chains, and stronger collaboration. If nuclear is to support the energy transition, projects must be more efficient and better managed. Key success factors include promoting design simplicity and maturity, supporting supply chain robustness, fostering stakeholder collaboration models, and securing strong and efficient project management. 🔑 It’s time to rethink how we build nuclear. Can the West rise to the challenge? 🔗 Check out the full report—link in the comments! Authors: Zsofi Beck, Amaury Boucquey, Eric Fournier, Jérôme Rein, François Tibi, Benjamin Vannier, and Leotaro Weitzenhoff

🌎 📈 In a world of rising costs and growing sustainability concerns, oil and gas companies need to maximize output whilst managing increasing expenses and emissions. That’s where production optimization comes in: 🔹 Higher ROI: Smarter money - Every $1 invested in production enhancement yields 3-4x more returns than traditional cost-cutting measures alone.  🔹 Lower cost vs. new drilling: In the North Sea, a typical well intervention costs $16 per BOE, compared to in excess of $26 per BOE to develop new reserves.  🔹 Faster results: Relative to new exploration & development, production optimization provides a 6-8 year advantage, with less risk and more cash sooner.  🔹 A lower-carbon approach: Leveraging existing infrastructure reduces Scope 1 & 2 emissions by 10% or more, and in some jurisdictions, cuts carbon tax liabilities by up to 52%. Companies that embrace production optimization gain a competitive edge, improving EBITDA while driving efficiency and sustainability. 🔗 Check out the full report—link in the comments! Is your company prioritizing production optimization? Let’s discuss in the comments! 👇 Authors: Shiva Kant, Kike Beintema, Martin Bell, and Karam Alkhulaifi

With some of the world’s highest rooftop solar PV penetration and growing EV adoption, Australian distribution grid operators are deploying solutions that many North American Utilities and other global players will need as well. I'm on my way to #DISTRIBUTECH2025 in Dallas and looking forward to share some of thoughts and lessons from Australia's Energy Transition. Think flexible exports for rooftop PV, distribution-connected storage, ‘Community Renewable Energy Zones’, smart EV charging locations, demand flexibility, LV grid visibility, next gen network planning and more. Excited to discuss these topics with Colin Crisafulli, Dominic Adams, Mark Vincent - thanks for hosting the session Richard Mcindoe and Matt Schnugg! Guy Chalkley Marc England David Smales Andrew Linnie Peter Price Glenn Dahlenburg Glenn Springall Scott Russell Scott Ryan Audrey Zibelman If you’re attending, join us for: 🗓 SMARTER GRIDS DOWN UNDER: Australian Networks Strategies for Net Zero 📍 March 24, 2025 | 3:00 PM - 5:00 PM | Room D4 (West Fork) 🎟 Open to All-Access badge holders

📢 The energy transition is outpacing our grids. Without radical changes, bottlenecks in electricity transmission and distribution could derail progress toward Net Zero. Grid companies must move beyond incremental upgrades and embrace a bold new approach. Our latest report, Delivering the Energy Transition Will Come Down to the Wires, highlights that achieving a future-proof grid requires a fundamental shift in four key areas: 1️⃣ Rethinking Network Planning – From reactive expansion to proactive design, optimizing grid capacity and integrating smarter, more flexible solutions    2️⃣ Accelerating Capital Execution – With grid investment needing to rise 88% this decade, efficiency is non-negotiable. Companies must prioritize high-impact projects, deploy new technologies, and streamline execution    3️⃣ Transforming Stakeholder Engagement – Regulatory and permitting delays can take over a decade. Governments, regulators, and grid companies must align on faster approvals, clearer incentives, and better public communication 4️⃣ Reinventing Supply Chains – Equipment shortages are pushing project timelines from months to years. The industry must shift to bulk procurement, strategic partnerships, and localized manufacturing  The challenge is immense, but so is the opportunity. A resilient, efficient, and scalable grid isn’t just about keeping the lights on—it’s the foundation of a decarbonized future. 👉 What’s the biggest barrier to grid modernization today? Let’s discuss 🔗 Check out the full report—link in the comments! Want to know what “smarter network planning” looks like? We will break it down in the next post! Authors: Martin Högel, Oxana Dankova, PhD, Maurice Berns, Bas Sudmeijer, Eelke Kraak, Ferdinand Varga, Laura Alice Villani, and Daniel Weise

📢 🌎 The energy industry faces a critical challenge: How can we meet global demand while keeping costs low and reducing emissions? One answer lies in optimizing production from existing oil and gas fields. By tapping into underproduced reserves, companies can more flexibly manage their capital outlays and accelerate volume addition with less risk, thereby reducing financial and environmental costs.  🔹 Global reserves: 1.7 trillion barrels of proven oil reserves, yet recovery rates remain at just 20-40% for oil and 60-80% for gas.  🔹 The potential: A 5% increase in daily production from existing fields by 2030 could generate $600 billion in additional revenue for the industry.  🔹 Faster results: Relative to new exploration & development, production optimization provides a 6-8 year advantage, with less risk and more cash sooner. 👉 Energy security, cost efficiency, and sustainability don’t have to be a trade-off. Production optimization offers a smarter, faster, and greener way forward. 🔗 Check out the full report—link in the comments! Authors: Shiva Kant, Kike Beintema, Martin Bell, and Karam Alkhulaifi

📢 Governments and businesses are struggling to mobilize the financial resources required to arrest global warming and cope with its consequences amidst other pressing priorities. Our new research shows that without investment to manage climate risks, economic growth and resilience will be severely weakened. This will make it harder to achieve societies’ broader goals, from improving healthcare to strengthening security. 🔗 Read the full report - link in the comments! Authors: Amine Benayad,  Annalena Hagenauer,  Lars Holm, Edmond Rhys Jones, Sahradha Kämmerer, Hamid Maher, Kamiar Mohaddes, Sylvain Santamarta, and Annika Zawadzki