The Australian Energy Industry - Climate Change and a Sustainable Business - Case Study Example

The Australian Energy industry Name Institution Date The Australian Energy industry Introduction Australian energy industry has been categorized into numerous broad branches that deal with the energy production. The energy industry combines both oil and gas companies in order to produce fresh approaches in the evolving and complicated landscapes of Australia (ABARE, 2010). There is adoption of extensive research in the energy industry which encompasses many energy companies to develop the business strategies in reducing time to first gas and oil which will optimize the operations and provide functional services to development and delivery practices of the energy industries in Australia (ABARE, 2010). These energy industries have got decades of experiences in the energy sector that leads to the improvement of the Australian economy Climatic changes too are also a factor in consideration to provide enabling business activities to take place in the energy sector in Australia. Due to the development and advancement in technology, climatic changes have been controlled to provide effective and reliable of energy products in the Australian market (Diesendorf, 2014). Climate change has been attributed to the different impacts on the energy production in the country. This is because the changes in climate have affected a number of issues in the world. Hence, this essay seeks to establish the relationship between energy production ion suatrlia and evaluate ways in which climate change affect the production of energy in the energy industry in Australia. Although some experts believe that climate change has no effect on the energy industry, evidence has shown that climate change impact the energy industry. Climate change and a sustainable business Climatic change refers to any changes that occur in the atmosphere causing a change in weather. These changes can be naturally variability or human induced hence causing defects in the energy industry. In sustainable business replicates the system used to provide minimal negative results to local or global environment (Hayman, 2009). The energy sector intends to provide a sustainable environment in Australia where its industries are located. Extreme climatic change always renders the energy industry facing several critical issues including power plant disruption which occurs due to drought and also disruption in supply of fuels in the event of changes in climate under storms (Hayman, 2009). Another factor that is caused by the changes in climate is that energy industries may be shut down due to lack of sufficient water that is needed for the cooling of temperatures in the thermoelectric power plants which is a major requirement of the energy industries (Hayman, 2009). The climatic changes that the Australian energy industry is facing can be solved through mitigation, adaptation, transformation or business as usual to proceed. Since transformation is already taking place, energy industries in Australia should adopt to these climatic conditions so that the supply of energy product cannot extinct (Diesendorf, 2014). The energy industry in Australia has its main interaction with other companies who are in contract for products, government representatives, civil societies and business leaders to initiate and facilitate the energy production in the country and globally (ABARE, 2010). Also energy sector works closely with the regulatory body such as the environmental body and the geographical bodies for update in the climatic weather conditions. According to the Bureau of Resources and Energy Economics (2012), the entire business fraternity also has ventured into activities with the energy industry to establish a market base for the energy industry products. This industry therefore works closely with these bodies equally for same operational environment without segregation so that they can enhance a better sustainable environment. For good sustainability of business activities in the country, the energy industry should practice equality treatment of its partners so that it can embrace better business processes for energy products in the country and all over the world (Hayman, 2009). Strategic challenges to sustainability in light of climate change Since changes in climatic conditions are one of the biggest challenges in human beings and their environments. Climatic change leads to serious impacts on the production of energy in the Australian market. In the light of climate change, there are strategic challenges accompanying the industry in the provision of product and services to the country and the entire world (Jones, 2013, p.135). Some of the strategic challenges are impact of technology, adaptability and change management and short term versus the long term strategies. a. Impact of technology The advancement of technology has boosted the energy sector in the Australia much higher. Weather forecasts can predict the future climatic conditions that may precede certain areas including the production zones of the energy (Jones, 2013, p.135). This will facilitate a cover up and coming up with strict measures that will help in prohibit critical changes in climate causing damage to the energy industry. Therefore this strategic challenge will be realised through better and advanced level of technology in Australia to eliminate uncertainty of changes in climate in happening. b. Adaptability and change management Adaptability is one of the challenges energy sectors are faced upon with. Climatic changes are always happening more rapidly with shorter cycles. This makes it difficult to predict of what exactly will be happening in the near future in the energy industry (Harding, 2009). The best way in solving out this imbalance is the industries to adapt to the changes in the climatic conditions in the areas where energy industries are located. Adaptability and change in management will be the strategic challenge these industries will be facing upon. Failure in correcting this strategy properly there will be a collapse of the business activity and the operation of energy industry will be limited (Harding, 2009). c. Short term versus the long term strategies The idea behind either long or short term strategies have its own challenges for any industry. The climatic changes will therefore affect the aims of the organization as they prepare to facilitate their goals and objectives (Painter, 2013). The energy industry has to balance the short term and long term strategies so that the industry must remain relevant. This challenge is highly occurring especially in competitive environment which climate favours it. The energy industry must be on the look out of the strategies between the long term and the short term strategy as they are a challenge to the sustainability in climatic change (Painter, 2013). Major stakeholders involved, their roles and possible involvement The energy industry in Australia has got many stakeholders who are accountable of different activities that can uphold the value of the industry. They have distinct roles working together closely in the market sustainability ensuring all industrial practices are exercised fully. The main stakeholders in the energy sector are: a. Renewable Energy Target In order to commercialize the renewable energy different stakeholders are identified which include industries that can manufacture devices to enable the use of the renewable energy. The stakeholders provides the schemes in the financial incentive for investment purposes in the renewable energy sources by establishing the sale and development of certificates. In addition, the government as the main stakeholder in renewable energy implements polices that ensure sustainable distribution and use of renewable energy. The main involvement of this body is to offer opportunity for reduction of cost that is likely to be higher to owners. Australian Energy Market Commission. This body is associated with the responsibility to oversee the publishing and administration of the overall national electricity rules. The rule adopted by the Australian energy market commission is to undertake the process and provide policy for advice in relation to the energy industry regulations in Australia (Lomborg, 2007). b. Australia Energy regulator This stakeholder body was to undertake and perform the economic regulations in the market for the electricity and the transmission networks ventured by the national electricity market. This body too is entitled to enforce the national electricity laws and regulation so as to boost the sale of the electricity as a product of the Australian energy industry (Lomborg, 2007). c. Australian renewable energy agency This body was established in Australia as a stakeholder in the energy industry to support the innovations that will improve technological advancements which will be competitive renewable energy and also to increase the supply of the same renewable energy in Australian market (Lomborg, 2007). d. Bureau of resources and energy economics This body offers professional, analysis, high quality economic research, data and advice to government other stakeholders and industries on the issues that are to affect the resource sector and the Australian energy industry at large (Lomborg, 2007). e. Clean energy regulator Clean energy regulator is a stakeholder body that is entitled to oversee and administer energy reporting, the national greenhouse, and the carbon farming initiative, carbon pricing method and renewable energy target (Lomborg, 2007). All these schemes are available in the energy industry to with the main objective of removing emissions that are carbonic in nature and increase the usage level of clean energy. f. Electrical regulatory authorities council This body works towards the coordination between the safety regulatory in the electrical authority and the commonwealth territories to bring and establish a market for the energy industry in Australia (Lomborg, 2007). g. Energy security council The Security Council was established as a stakeholder in the energy industry so that it can advice on measures that will ensure the security of the energy supply in the transition process will be a clean energy in the future and also on the application of financial assistance when the energy industries requires (Lomborg, 2007). They provide the industry with the best security concepts and measures. Analysis and discussion of strategic responses and a preferred approach over time In the mean time, the energy industry should look up for strategic solution that will help curb the extreme conditions brought by changes in climatic condition to achieve a sustainable environment for production of energy components (Gautier, 2012). Therefore the strategic responses that have been preferred over the time are as enumerated below. a. Proactively monitoring climate and coping up with natural disasters. Coping up with the natural disasters in the Australian environment has been the main strategic response among the energy industries which received a preferred approach. Mitigating the damages caused by the natural disasters will give a clear view of the design to be developed and planning schemes after the energy sectors suffers a blow in natural disaster with line to the increased natural disasters happening in relation to change in climatic conditions. Also monitoring the climatic condition in the region will improve knowledge about the changes in climate for industries to adapt and cope up with as a strategic response (Afes-press, 2011). b. Guaranteed security of resources The energy industry has come up proactively to establish a guarantee that will ensure water security during extreme weather and climatic conditions (Gautier, 2012). Major changes have taken place to build database of change that will use water resources in relation to the extreme climatic conditions sp that they can facilitate quantitative and qualitative researchers, surveys, observation and forecast in using and exploiting water resources. They have also set up valuable regulations and standards that will multi-purpose the exploitation and effectively use water resources with conformity to changes in climate for a guaranteed security of water resources (Gautier, 2012). c. Developing and protecting forests sustainability and preserving biodiversity In preventing biodiversity, developing and protecting the species and ecosystem of a habitat can change the nature and climatic condition of the environment. This will ensure there is preservation and protection of energy resources in the environment that have been endangered by the changes in the climatic conditions (Gautier, 2012). In order to increase the efficiency and capacity of these systems there will be an evaluation of forecasts that will depict the changes in climatic conditions in Australia for an effective energy industry operation. d. Reducing gas emission to protect the earth’s climate The energy industry has adapted the use of protective controlling the emission of gas that is to be released to the atmosphere which later will have a negative impact in the environment (Morgan, 2008, p.51). The emission of gas from the energy industry will affect the climate hence it has forced these industries to use renewable and recyclable energies so that it can protect the Australian climate from toxic gases causing climatic changes (Morgan, 2008, p.51). Identifying indicative timeline, measures and roles to assist implementing the preferred strategy The Australian energy industry has potential strategies to implement so that it can take clear measures on tackling all changes in climate and sustain a marketable opportunity in the county in the long run of the business (Morgan, 2008, p.50). In relation to this, I therefore narrate all the possible measures, indicative timelines and roles that will assist in the implementation of the preferred strategies in the Australian energy sector to tame climate change and sustainable business future. a. Planning to increase market penetration The indicative timeline of planning to increase market penetration will be achieved through establishment of analysis of the business opportunities, identifying strategic opportunities and also identifying the potential gaps so that it can ease the distribution of energy product (Pelling, 2009). Successful planning will therefore have a positive impact in the realization of the market penetration where it will be increased. Its main role is to find a market base that it will produce their products to them. Planning will therefore assist in the implementation of the preferred strategy in the energy industry in Australia (Pelling, 2009). b. Tracking performance Tracking performance in the energy industry should be applicable to ascertain the roles that govern the practices in the industry (Galbraith, 2011). This is the indicative role of the energy industry to improve the functioning of the industry to meet their energy production goals and objectives. This will help in the strengthening of the ideology and activities to perform (Galbraith, 2011). The performance will enable the industry to participate fully in the production process. The main role towards tracking the performance of the industry is to obtain more information that will to determine the progress towards objective realization (Galbraith, 2011). c. Ability to reach out to shareholders Shareholders are the key important personnel’s in making sure all corresponding procedures are followed effectively. The energy industry in Australia should work closely with its stakeholders (Galbraith, 2011). The measure in relation to reaching out to shareholders is in place in the industry to stipulate the reasons and procedures in working out closely in support with rules and regulations by the supporting bodies. The role in reaching out to shareholders is to provide the relationship of classifying duties to be carried out by the large number of shareholders in relationship to the energy industry in Australia (Galbraith, 2011). Reaching out to shareholders therefore will have a positive impact in the implementation of the preferred strategies in the energy industry. Conclusion The Australian energy sector comprises of both gas and oil industries. The energy industry produces a variety of products which have a large market base for its products. The number of shareholders that are related to the industry gives the go ahead ability to work hand in hand to realize their goals and objectives. They have got support in their country to continue the production of the energy products. Although the country has enjoyed benefits from the energy industry, climatic challenges affect the production of oil and gas in the country. Climatic condition and challenges affect the production activities such as interruption of power supply to industries. Despite facing challenges in changes of climatic conditions, the industry has taken measures effectively with regulatory bodies that can assist in taming these undesirable natures. In addressing the climatic challenges, some strategies include improvement in power supply technology, reduction of gas emissions and preserving the biodiversity. For the sustainability of the future business prospects in Australia, the energy industry has implemented new strategies though the indicative timeline which provides a role in the implementation. The boost received in implementation of the advanced technology facilitated a lot in coming up with effective production in the energy industry despite extreme changes in climate. Australian energy industry has all it takes to realize a sustainable business prospects in the future. References Abare and GeoScience Australia (2010) Australian Energy Resources Assessment, Chapter 10. Afes-press, H., Spring, U., Mesjasz, C., Grin, J., Kameri-Mbote, P., Chourou, B., Dunay, P., & Birkmann, J. (2011). Coping with Global Environmental Change, Disasters and Security: Threats, Challenges, Vulnerabilities and Risks. 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