{"id":1836,"date":"2023-02-07T20:50:00","date_gmt":"2023-09-04T20:50:24","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=1836"},"modified":"2023-10-18T12:36:35","modified_gmt":"2023-10-18T12:36:35","slug":"future-proof-capital-investment-strategy-energy-industry","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/eu\/blog\/future-proof-capital-investment-strategy-energy-industry\/","title":{"rendered":"A future-proof capital investment strategy for the energy industry"},"content":{"rendered":"\n

Capital investments on the horizon? Real-time visibility can bring faster time-to-value<\/em>.<\/strong><\/p>\n\n\n\n

The need for new investments in the energy industry is rising. The current environmental, economic, and geopolitical landscape brings new pressures and opportunities.<\/p>\n\n\n\n

Global sustainability demands play an important role, increasing the need for capital spending. According to McKinsey, reaching net-zero emissions by 2050 will require $9.2 trillion in annual average spending on physical assets, $3.5 trillion more than today<\/a>.<\/b> Think of programs to reduce gas emissions and increase the production and distribution of clean energy.<\/p>\n\n\n\n

The question is, how can energy companies modernise the energy system while creating value for all stakeholders? Salesforce has leveraged its industry knowledge to build a unique, dedicated solution that can help energy companies innovate while meeting customer demands, increasing customer service, and controlling costs.<\/b><\/p>\n\n\n\n

Let\u2019s take a deeper look at the challenges and opportunities.<\/p>\n\n\n\n

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Why does the energy industry need to improve investment productivity?<\/b><\/h2>\n\n\n\n

Energy companies have increasing capital investment needs to contend with. Existing infrastructure needs to be replaced, renewed, and expanded. <\/b>For example, nearly half of the United States’ existing natural gas infrastructure was built before 1960. Production needs are higher and require more resources. <\/p>\n\n\n\n

At the same time, better capital allocation is vital as energy companies are facing tighter margins.<\/b> There are limitations with space, raw materials, equipment and labour, all of which need to stay affordable. In addition, energy companies can face slow approval processes that hinder productivity.<\/p>\n\n\n\n

And, finally, more regulatory scrutiny is now in place. <\/b>While this is definitely a positive development, it does come with more challenges. Investment planning and execution need to have greater visibility to make sure the process meets all the requirements. New or increased sustainability reporting requirements need to be met. Access to capital is also tightly linked to sustainability performance, which provides a perception of environmental risks.<\/p>\n\n\n\n

Roadblocks to Delivering Investment Programs<\/b><\/h2>\n\n\n\n

The investment delivery process can consume a lot of time and money. Without a digital solution to help centrally manage a large portfolio of projects, it\u2019s common to see the following roadblocks:<\/p>\n\n\n\n