KPMG says energy sector remains optimistic about economic growth

The KPMG 2024 Energy CEO Outlook is based on responses from 120 CEOs from 11 countries. It seeks to answer the major transformations the energy sector is going through, what the most significant challenges were last year, and how leaders are navigating them for long-term success.

“Based on the responses, it is clear that CEOs see the geopolitical situation as the biggest challenge in 2024, with 55 percent indicating this aspect. The Middle East crisis, difficulties in cooperating with sanctioned states and the struggle for critical minerals have also caused significant difficulties for energy markets. 43 percent of respondents mentioned economic uncertainty, and the same number mentioned the competitive situation caused by Gen AI,”

explains Géza Losonczy, leader of the energy and utilities sector at KPMG.

Geopolitical uncertainty requires constant agility and vigilance, while the large and complex supply chains involved in the sector must be operationally flexible in the face of unexpected events, such as cyberattacks.

Optimism about development

Despite the serious challenges, energy sector CEOs are optimistic, as in the previous year: 78 percent of them are confident in the growth of the economy and their company. This is higher than the figure measured in the full CEO Outlook sample of 1,300 people (72 percent). Their confidence, according to KMPG, stems from their deep experience in navigating change and the continued resilience of energy prices. However, they remain aware of the many challenges ahead. Their expectations are most influenced by three trends: the expected evolution of trade regulations, cybercrime and Gen AI.