commercial property and energy
How far ahead do you think in business terms? 20 years is probably too long for most, 10-15 years may be for the professionals among us.
But what about 3-5 years?
Surely most of us think in those terms!
Well apparently not.
The first is a graph which predicts the moment that Middle Eastern oil surplus becomes smaller than the demand for oil from the rapidly developing and expanding Asian markets.
What effect do you think this will have on the price of oil?
And since gas prices are pegged to oil prices – by extension to the price of gas?
The second image is a graph of the energy sources used today in the UK for the generation of electricity. You can see that gas occupies almost a half of the total mix.
So what do you think will be the effect on the price of electricity? On inflation?
Let me pull a few quotes for you:
Businesses which prepare and take advantage of the new energy reality will prosper…
To manage increasing energy costs and carbon exposure, businesses must reduce fossil fuel consumption…
Business must address energy-related risks…
Businesses that can adapt their activities to benefit from emerging energy trends and manage the risks will gain an advantage over their competitors.
These did not come from a Green think-tank or an environmental NGO or pressure group – these quotes came from the Lloyds 360 Risk Insight – which brings together views from the worlds leading business, academic and insurance experts.
Most commercial property owners still see commercial EPCs, DECs, Air Conditioning Inspections and almost all of the environmental regulations as an infuriating hurdle that must be jumped over as cheaply and quickly as possible.
Is it not about time they started adapting to a changing world?