Four Key Advisor Network Trends in Energy and Resources: Reflections from Enco Insights’ MD
Uncertainty Driving Demand
Trade disputes in light of sanctions; Sustainable Aviation Fuel; the Inflation Reduction Act: the diverse areas where companies are seeking expertise in energy and resources.
6 months on from the launch of Enco Insights, Managing Director Bill Read has been speaking to the HC Commodities Podcast about the key trends his team are seeing. Here are four key takeaways from the podcast.
1. Geopolitical Uncertainty
The Russia-Ukraine conflict has led to a surge in demand for expert witnesses, particularly in the field of commodities and energy-related disputes. The complexity of global sanctions - such as trades cancelled under force majeure and complexities around obtaining trade finance - has created significant legal and financial challenges. For instance, international trades will have multiple different parties from different countries, all needing to comply with differing sanctions regimes, or not. The dislocations caused by these geopolitical disruptions often result in arbitration or litigation.
2. Shifting Supply Chains
Companies, and management consultancies in particular, are increasingly seeking expertise on new markets and relocation strategies due to geopolitical risks and energy transition pressures. Firms are looking to move out of high-risk jurisdictions or those impacted by sanctions. This trend is impacting interest in strategic resources like uranium. US resources are also attracting more interest - particularly influenced by the Inflation Reduction Act (IRA). For example, investors who may have previously overlooked the US are now exploring opportunities there due to more favourable policies and the need for secure supply chains.
Advisors are invaluable for firms needing guidance on projects without making long-term hires, so they have the right knowledge to make informed decisions and drive projects to completion
3. New Market Participants
The shift towards green technologies and sustainable energy sources is also attracting new entrants and investors who are seeking advice. Enco Insights has seen increased inquiries into areas like Brown-to-Green projects, Sustainable Aviation Fuel (SAF), and Carbon Capture and Storage (CCS). Similarly, investors who have previously focused on tech are now showing interest in the opportunities of commodities trading. This trend highlights the need for specialised insights to navigate complex new investment landscapes, which may be unfamiliar.
4. Project-Based Expertise
As a result of all these trends, Enco Insights is also seeing a growing demand for specialists with practical experience to guide project teams through complex, short-term assignments. This includes expertise across commercial, operational, and policy aspects of projects, especially those involving new or untested policies. Professionals who have successfully navigated regulatory hurdles, secured grant funding, or completed new fuels engineering projects are particularly sought-after. These advisors are invaluable for firms needing guidance on projects without making long-term hires, so they have the right knowledge to make informed decisions and drive projects to completion.
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