The world seems to be turning the corner on COVID-19 as vaccinations are administered and businesses are reopening, albeit at different rates in different countries. I am sure that your company has been tremendously challenged during the various lockdowns and now is challenged in different ways as demand returns and disrupted supply chains struggle to return to normality.
However, in the massive challenges faced during 2020 and ongoing, let’s not overlook the consequential strategic announcements that have taken place in our industry over the past six months. Here are some examples:
- GM plans to exclusively offer electric vehicles by 2035, ending production of its gasoline- and diesel-powered vehicles at that time.
- California Governor Gavin Newsom signed an executive order banning sales of new combustion-powered passenger vehicles in the state by 2035.
- President Biden has pledged to cut America’s climate warming emissions in half by 2030.
I recently heard a major oil industry executive discuss on CNN his company’s plans to expand into cleaner alternatives, such as green hydrogen, renewable natural gas and carbon capture and storage, while staying focused on areas where it can have a unique advantage. These comments made me wonder if his definition of advantage was perhaps too narrow and limiting either in the scope or the speed of potential transformational change.