Energy Industry Facing Mega Changes, Says Exec
The coming decade promises to reveal a different utility
industry than the one today, which already is bursting around the
edges from the speed-of-light changes, according to Victor A. Burk,
a managing partner in Arthur Andersen's energy and utilities
industry sector. Burk offered what he termed his "megatrends" at
his company's energy symposium last week in Houston.
Convergence, he said, would be the biggest trend, something that
already has occurred in the gas and electric industries. Next, the
merging will occur in the electric and power industries, as more
companies take advantage of their infrastructures to build out
Also high on Burk's list is the overwhelming presence of
ebusiness and the Internet, which he said has transformed all
sectors and led to globalization.
"More companies are going outside of their home countries for
the first time and have to deal with new risks now," said Burk.
With that move internationally comes a more liberal market, he
said, including restructuring, deregulation, re-regulation and
unbundling of services. In these emerging markets, Burk noted that
companies would face parallel challenges with "environmental
Not to be forgotten is the "war for talent," not only on the
executive level but also through the ranks. With an aging workforce
--- most energy executives fit in the 40-something range, Burk
noted that companies should know that most former employees are not
leaving their companies, but their bosses. "Hiring and retaining
talent is a challenge for all of us."
Companies also will be placing a renewed focus on value creation
instead of only looking at earnings. Burk said that companies would
be able to achieve recognition in the market if they can show a
strong share price performance.
Carolyn Davis, Houston
©Copyright 2000 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.