Oil companies have clear incentive to prioritize energy efficiency

Oil companies have clear incentive to prioritize energy efficiency

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On a daily basis, a large swath of the American public is heavily reliant upon oil companies. Without them, they would have no way to fill their cars at the gas pump, and they’d be unable to get to their jobs each day or enjoy active social lives. Without oil, everything screeches to a halt. All of that said, one reality still remains – many Americans loathe oil companies. For oil executives who are looking to keep making steady profits each quarter, this is an important point. People are making changes in their daily lives to move away from oil. They’re using more energy-efficient cars, such as hybrids, so as to avoid guzzling gas. They’re adopting new forms of power in their homes and offices, such as solar. Many of these changes are happening because people are making a conscious effort to distance themselves from “Big Oil.”

“Generally speaking, people have a negative view of the oil industry.”

What can oil companies do to reverse this trend? From the looks of it, energy efficiency should be right at the center of such an effort. If companies start showing their concern for the changing energy climate, they just might be able to regain the favor of some of the American public – and, in turn, start making steady profits again. The people have spoken It’s not hard to find evidence that generally speaking, people have a negative view of the oil industry. The Huffington Post recently shined a spotlight on this problem, pointing a Gallup poll showing that 61 percent of Americans view oil companies unfavorably. The news source pointed to high gas prices and large profits (estimated at $120 billion per year collectively) as the primary culprits. Interestingly, there was also reason to believe that environmental considerations factored in. HuffPo also pointed to polling data that showed 70 percent of Americans favor emissions limits, and 65 percent want to see a stronger focus on renewable energy. Clearly, we’ve reached a tipping point where environmental concerns have hit the mainstream, and people are making their consumption decisions based on new criteria. Oil companies facing internal pressures As a result of this shift in public opinion, oil companies are beginning to change their strategies. They’re beginning to show much more awareness of large-scale trends that are happening around them – fossil fuel consumption, global warming, a movement toward energy efficiency – and adjusting accordingly.
The energy efficiency conversation is starting to change in corporate boardrooms.The energy efficiency conversation is starting to change in corporate boardrooms.
The market for oil and gas is a competitive one. If people lose faith in any given company, they can easily shift their allegiances to another. Because of this, there’s a great deal of pressure on the part of corporate leaders to keep adapting to changing market forces. Every move they can make, even if it’s something seemingly small like a water heater replacement, should be considered a step in the right direction. How water heating plays a pivotal role Many corporate leaders would be surprised to find out just how much of an impact water heating can have in running a successful, eco-friendly business. When it comes to energy efficiency, there are few strategies more effective than making the transition to a commercial tankless water heater. Research from the U.S. Department of Energy found that tankless heaters should be between 8 percent and 34 percent more energy-efficient than other heaters, such as storage-based models. There are many different kinds of efficiency loss to keep in mind, including standby loss from when water is kept in storage and cycling losses, which originate as water is circulating through pipes. Tankless heaters alleviate both of these problems and many more, making it easy for companies to embrace a more sustainable future.