As the energy crisis continues to move to the front and center of the international conversation, buoyed in large part by the Russian conflict interrupting global trade, certain figures are looking to the future. Jennifer Warren of D Magazine took to the topic at hand by engaging in a series of interviews with some of the top industry giants in the energy field, including Energy Transfer CEO and Chairman, Kelcy Warren (No Relation).
Together, the duo attacked what they believe to be the biggest hurdles facing the energy industry in the future while also underscoring some of the key ways that energy companies can overcome them.
Let’s take a deep dive into the world of D Magazine, Kelcy Warren, and the energy crisis that is looming on the horizon.
Energy Crisis on the Horizon
The COVID-19 pandemic paired with the Russian conflict in Ukraine worked together to create an energy crisis at once new and yet still familiar. Warren stated that the conflict was just one aspect of the many interrelated factors that are playing a role in the world’s energy crisis. Warren added that other issues are at hand, including “energy market dynamics and sustainability.”
Warren listed a few key areas where issues are manifesting, pointing to:
As sanctions on Russia and Iran continue to contribute toward oil supply tightness, OPEC and the rest of the oil-producing world are lacking in spare capacity. New announcements suggest that nearly 2 million barrels per day will be sourced from Saudi Arabia and the UAE by sometime in late 2023.
Warren added, “This is not entirely a demand-driven cut (…) Savvy investors suggest to me that oil demand is sticky; there’s a secular floor of demand.”
The Role of Natural Gas
Prior to Russia’s invasion of Ukraine in 2022, fissures had been exposed throughout Europe as a way to transition away from the natural gas world. As these fissures are being ignored due to the conflict, more coal is being forcibly mined, burned, and shipped to address potential energy shortfalls.
Jennifer Warren suggests that Europe will look to the United States as a model going forward. Warren added, “Europe will benefit from U.S. knowledge and capital going forward.”
Warren added, “Supply chains surrounding energy and food security and resources are shifting.”
Hope For the Future
While there are certainly reasons to be concerned regarding energy production in the future, Kelcy Warren is far from concerned. Jennifer Warren penned in her piece, “Believe it or not, the interrelationships of global energy resources have worked well after world crisis and war and reveal the better alternative of cooperation.”
Looking to the future, Jennifer Warren believes that CEOs and businesses that advocate for a cleaner and more productive future will find themselves successful. Warren wrote, “I would look closely at firms that offer a net benefit to society, the problem-solvers.”
Jennifer went on to add, “In Texas, we have an abundant supply of hard-working, determined visionaries.”
Learn More About Kelcy Warren
Kelcy Warren was born and raised in Gladewater, TX. The youngest of four children, Kelcy followed in his father’s footsteps, a ditch digger and gauger for Sun Oil. Warren said of his father, “I am so proud of what he was able to do with his life.”
Warren’s mother worked in a department store and helped to foster Kelcy’s love of education early on in his life. Warren said, “She pounded that into our heads from the beginning.”
Kelcy Warren founded Energy Transfer more than 19 years ago. Once a small natural gas pipeline organization, Energy Transfer now possesses a dynamic and significant portfolio of high-performing energy assets.
See more from Kelcy Warren here: https://www.pbs.org/newshour/tag/kelcy-warren