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The demand for petroleum products coupled with campaigns against global warming has resulted in uncertainties regarding the future of fossil fuels as a key source of energy. Energy companies continue to offer diverse opinions concerning the outlook of fossil fuels. While some firms argue that its demand will peak by the early 2020s, others see the possibility of it going up to 2040. Hence, while referring to technological phases presented in Gartner’s hype cycle, it is crucial to evaluate an article by Sarah Kent that was featured in the Wall Street Journal. As this paper finds out, understanding the prospect of oil as a source of energy will benefit both investors and petroleum companies.
The Significance of this Information to Energy Companies
Gartner established the hype cycle to assist organizations to evaluate the potential of novel technologies. Nonetheless, this model can also be used to predict the future performance of specific products or services (Kent). It outlines five phases through which a particular technology or product goes. These stages include trigger, peak, disillusionment, enlightenment, and the plateau of productivity. Based on Gartner’s hype cycle, oil is in the inflated expectations or the peak stage. Many companies have invested in the oil sector with the primary goal of exploiting this resource before it is depleted (Kent). Hence, being up to date with the news regarding the future of oil is valuable to energy companies.
Hyped media coverage, supplier explosion, and negative press characterize the peak phase. Hence, it is important for energy companies to be aware of the life cycle of their products as presented in the news (Kent). The lack of adequate knowledge of Gartner’s hype cycle may result in firms believing in all news details that are released into the market. For instance, the information featured in the Wall Street Journal by Kent is of great help to energy companies since it reveals what is going on in the oil sector. Even though disagreements have been reported regarding the peak of the demand for fossil fuels, these companies should consider investing in alternative sources of energy that are in high demand.
Energy Investors’ Interests
Investors wish to be associated with projects that have the potential of being productive in the long term. Those who focus on the energy business may be interested in understanding the phase of specific renewable energy in line with the hype cycle because to facilitate their decision-making processes. Information from Gartner’s framework informs investors about the level of acceptance of renewable energy resources in the market (Kent).
Hence, it becomes easy to determine whether the energy sector is a viable investment. Reports disseminated by mass media platforms can build or destroy the image of a product or service. The public tends to trust almost everything that features in mass media. Consequently, to evade the risk posed by fake news, understanding the phase of a particular renewable energy resource enables investors to analyze what media agencies say about the product. Such information goes a long way towards allowing them to make well-informed decisions.
The call for the utilization of renewable and green energy sources has led to a reduction in the use of crude oil. The increased rate of global warming and the demand for renewable sources of energy have raised concerns regarding the future of fossil fuels. Reports about the uncertainty of fossil fuels require companies to consider investing in the renewable energy sector. Investors should consider the phase of renewable energy products based on Gartner’s hype cycle to ensure that they make evidence-based decisions.
Kent, Sarah. “WSJ Article.” Wall Street Journal. 2018. Web.