In a press release despatched to Rigzone on Monday, KPMG famous that, in keeping with its 2025 World Vitality, Pure Sources, and Chemical substances CEO Outlook, “CEOs within the vitality, pure sources, and chemical substances (ENRC) sector are optimistic about development”.
“Regardless of inflation and regulatory headwinds, confidence amongst CEOs is rising, with 84 % optimistic about mid-term trade development – up from 72 % in 2024,” the assertion stated.
“This outlook is pushed by sturdy demand for each fossil fuels and renewables, alongside innovation in vitality storage, good grids, and carbon seize,” it added.
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“Whereas 78 % stay optimistic about their very own firm’s development, a slight dip from final yr displays issues over shifting laws, commerce volatility, and inflationary pressures – significantly within the chemical substances sector,” it continued.
The assertion went on to notice that M&A methods “are additionally evolving with only a few CEOs (36 %) anticipating to pursue ‘excessive affect’ offers in 2025, down from 58 % in 2024, whereas 55 % anticipate ‘reasonable’ deal exercise, an increase from 38 % final yr, suggesting a shift towards extra cautious development methods”.
The KPMG assertion highlighted that synthetic intelligence has “quickly advanced right into a core technique within the vitality sector”. It identified that 65 % of CEOs now rank generative AI as a prime funding, which it famous is up 12 factors from 2024, and that 72 % are planning to allocate 10-20 % of their budgets to AI over the subsequent yr.
“ROI expectations are climbing, with 66 % anticipating returns inside one to a few years, up considerably compared to simply 15 % final yr,” KPMG stated within the assertion.
Momentum can be constructing round agentic AI, in keeping with the assertion, which highlighted that 51 % of CEOs anticipate it to remodel operations and workforce effectivity.
“But regardless of rising confidence, challenges persist,” the KPMG assertion warned.
“Moral issues (55 %), fragmented information techniques (49 %), and regulatory complexity (47 %) proceed to hinder adoption, whereas rising cyber threats – fraud (64 %), identification theft and information privateness (59 %), and cyber-attacks (51 %) – are recognized as key issues amongst CEOs,” it added.
The KPMG assertion went on to notice that, “as AI reshapes the vitality sector, corporations are grappling with a deepening expertise crunch”.
“CEOs are responding with urgency, ramping up their expertise methods that embrace reskilling and upskilling roles impacted by AI (40 %) and tailoring coaching to bridge generational gaps (31 %),” it added.
“But solely 18 % provide AI schooling throughout their total group. To beat this barrier, almost three-quarters (72 %) of leaders are targeted on retaining and retraining high-potential expertise,” it continued.
“Nonetheless, the trail ahead is difficult. Overcoming the abilities hole stays the most important hurdle for 43 % of CEOs, adopted by competitors from tech corporations providing excessive salaries (22 %),” the KPMG assertion stated.
In a press release despatched to Rigzone by the KPMG workforce in October final yr, KPMG famous that its 2024 ENRC CEO Outlook “revealed that 78 % of CEOs are assured within the financial system’s development over the subsequent three years – related findings from final yr’s [2023] survey”.
“But, 55 % of CEOs consider geopolitical tensions pose the best danger to this, adopted by financial uncertainty, and the race to embrace AI and different applied sciences (each at 43 %),” it added.
That assertion stated generative AI “stays firmly on the CEO agenda, with 58 % stating it is going to be the highest funding precedence for his or her organizations over the subsequent three years”.
“However leaders are taking a cautious and structured method to keep away from dangers, whereas planning vital funding in AI-driven transformation as 65 % are anticipating that it’ll take three to 5 years to see return on their funding within the implementation of Gen AI (in comparison with 48 % in 2023),” it added.
“As for the workforce, 79 % of CEOs consider that these rising applied sciences is not going to considerably affect the variety of jobs however will as an alternative require upskilling and redeployment of present sources inside their group,” it continued.
Anish De, World Head of Vitality, Pure Sources, and Chemical substances, KPMG Worldwide, stated in that assertion, “the prevailing temper within the boardroom could also be optimistic for ENRC CEOs, however there is no such thing as a scarcity of points to check their mettle”.
“When it comes to AI, whereas there may be hardly an space of enterprise the place AI can’t convey worth, the dangers of falling behind and/or making a deadly error in privateness, ethics, or integrity need to be managed,” De added.
“CEOs ought to really feel assured … so long as they’ve the elemental guardrails in place. Integrating AI actually comes down to vary administration, and that’s one thing CEOs need to personally concentrate on,” De continued.
KPMG highlighted to Rigzone that 110 CEOs of vitality corporations in 11 completely different markets with revenues of not less than $100 million took half within the 2025 world ENRC survey. The ENRC CEO Outlook is a part of KPMG’s common CEO outlook, which was carried out with 1,350 CEOs between August 5 and September 10, the most recent KPMG assertion outlined.
KPMG describes itself on its website as a world group of impartial companies corporations offering audit, tax and advisory companies.
To contact the creator, e mail andreas.exarheas@rigzone.com
