In the Necessity Markets, Chaos Creates Clarity
Written by Matthew McKean, CEO and co-founder of Frontieras North America (LinkedIn)
The energy sector, more so than other markets, is a global network of suppliers, infrastructure, and consumers. Production of reliable, affordable and abundant energy requires different parts of the world to bring together natural resources, intellectual property, manpower, innovation, and leadership. Because the creation and delivery of energy relies on a global supply chain, a balance is created that is not immune to being disrupted by world conflicts. These conflicts have the ability to cause ripples in both actions and policies for the energy sector.
To say that the United States energy market is immune to actions outside of our borders is naïve and short sided. The U.S., along with other governments around the world, are looking to punish Russia and hold it accountable for attacking Ukraine. However, to date, the tempered response from the U.S. to impose sanctions against Russia illustrates the world’s dependence on Russia’s oil and natural gas exports. According to the International Energy Agency, Russia is the world's second-largest oil producer and exporter of crude oil, with 5 million barrels per day getting sent overseas. That's roughly 12% of the global crude trade.
As countries truly realize their reliance on others for their energy sources, a spotlight illustrates how intertwined our current energy market is. Countries, including the United States, are looking inward for organizations that can help calm the unease within the energy market and create value in a mature market. From our perspective, this chaos caused by the Ukraine and Russia conflict and the shortfall of renewables illuminates the need for bold innovation in the energy space. The U.S., as well as the rest of the world, needs reliable and abundant energy to support the global economy, heat homes, and deliver clean water and food.
Frontieras, a provider of new coal processing technology, can maximize the value of every ton of coal that is processed to produce a higher value and marketable gas, liquid, and solid energy resources. Frontieras’ validated technology, Solid Carbon Fractionation, produces a material difference in processing coal for both public and private enterprises. Additionally, the combination of higher yields and increased thermal value supports generators to meet U.S. EPA and COP 21 guidelines while improving margins. Frontieras’ technology delivers a scalable, low-carbon and affordable energy alternative to meet rising global demands.
Earlier this year, Frontieras anticipated many of these challenges in its 2022 Predictions Blog. The conflict between Ukraine and Russia emphasizes the challenges that we identified, such as the current commodities crisis, energy price increases and growing demand for energy. As we discussed, the commodities crisis is a result of small investments in new energy projects, inflation, supply-constrained physical markets, and rising production costs. Energy prices are rising rapidly in the U.S. and abroad — as of this writing, a barrel of oil was over $100 U.S. Other parts of the world (India, Asia, Germany and the UK) are recognizing their energy shortfalls and have ramped up coal production to meet the rising energy demands as renewables are losing steam and proving unreliable. And, according to the International Energy Agency (IEA), coal is expected to play a large part in the world’s economic recovery from the pandemic.
As the world anxiously awaits the outcome of the Ukraine and Russia conflict, we are compelled to recognize the valuable role that Frontieras’ unique processing technology is poised to play in the energy sector. With chaos comes clarity. And that clarity reinforces the important role that Frontieras will play in addressing the immediate and long-term energy needs of the United States and other countries around the globe.
Regardless of what industry you compete in or where you live, energy is a necessity for the continued advancement of our civilization. Because of its necessity, we cannot go backwards by placing our dependence on unreliable sources like solar and wind. Instead, we must look ahead, and utilize technology and innovate throughout the many different parts of the energy sector.
Frontieras, a subsidiary of Frontier Applied Sciences, has spent the last 10 years developing a technology that reimagines the processing of hydrocarbons within a broader energy market. Specifically focused on efficiently processing fossil fuels, Frontieras maximizes the energy output and produced yields of each form including solids, liquids and gas. Frontieras and its Solid Carbon Fractionation technology are poised to redefine the energy market and provide a way for hydrocarbons to be used as a core component of our society’s energy creation. Over the next 12 months, we will be making a series of announcements that will illustrate our ability to execute on the company strategy. To learn more, visit us at www.Frontieras.com