Energy and utility companies know what turbulence feels like. Around the globe, the industry is experiencing waves of change brought on by shifts in regulation, the introduction of alternative energy technologies, the emergence of new competitors, dramatically increased M&A activity, cost volatility in primary commodities, and ever-increasing concerns among their customers about the environment and security of supply.

Companies have responded with a variety of growth and defensive strategies: vertical (dis)integration; separating production from refining, distribution and downstream marketing activities; investments in alternative and renewable energy production; geographic expansion; acquisitions in new markets; and deeper, more insightful customer segmentation. This turmoil is painful, and the results of these efforts have been mixed. Companies that have been successful in increasing revenue and profits have followed similar patterns, focusing on the development of core businesses to their full potential and disciplined expansion into attractive adjacencies.

The Davos Energy Brief

The global oil industry faces three big unknowns this year: oil prices, production capacity and sector consolidation. Despite the scale of turbulence, energy, oil and gas remain attractive sectors. Performance will vary by sector, but large segments of the industry will remain strong in 2009. Learn more about Bain's point of view on the energy, oil and gas industry. Download a PDF of the brief

Bain's Energy and Utilities experience

Bain has undertaken hundreds of projects in the energy and utility sectors around the world. Our experience extends across the entire energy value chain and builds on insights developed by our global partner teams through our Energy & Utilities practice. This global experience combined with motivated client management teams has developed proprietary insights that unlock significant value for our clients.

At the corporate level, our strategy work focuses on the most important sources of business value based on a keen understanding of emerging technologies and regulatory and competitive environments. At the business-unit level, Bain helps clients retain and expand their customer bases, improve operating performance by increasing the effectiveness and efficiency of each of the key elements of the value chain, deploy assets and IT investments for maximum return, and instill a high-performance culture throughout the organization.

Bain's clients include power and gas utilities; large multi-fuel, multi-utility conglomerates; water and waste utilities; and diversified global energy leaders. The Energy & Utilities practice is active in the Americas, Europe and Asia.

To find out more about our work in this industry, please contact the practice.