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Three ways energy controllers can lead organizational growth

Authors

  • David Zaozirny

    EY Americas Financial Accounting Advisory Services (FAAS) Markets Activation Leader

  • Shannon Roberts

    EY Americas Climate & Decarbonization Leader, Power & Utilities Assurance Advisory Leader

10 minute read 26 Feb 2025
Related topics
Financial accounting advisory services
Energy and resources
Power and utilities
Oil and gas
Mining and metals

Controllers face novel challenges — and opportunities to energize new paths.

In brief

  • The role of controllers is shifting from a transactional focus to an increasingly strategic and innovative role.
  • As they navigate this new terrain, controllers should equip themselves with a diverse skill set and team to embrace digital tools and drive value creation.
  • By leveraging their expertise and embracing new strategies and innovations, they can become strategic visionaries, integral to shaping the future of energy.

In the energy industry — including oil, gas, chemicals, power, and utilities companies that provide essential energy and commodities to consumers and businesses — financial controllers should be ready to step out of the back office and inform leadership on some of the company’s most complex challenges.

According to a recent EY survey, energy financial controllers are up to the task. Of the 103 US-based energy industry controllers surveyed, 86% indicated that being strategic is the most important part of their role.

This high-level strategy features three key areas of focus: data-driven decision-making, embracing ESG as an opportunity, and identifying and mitigating risks. 

Energy controllers are positioned for data-driven decisions

95% of energy sector controllers reported that data analysis is the most important area for today’s controller.

Emerging technologies, such as artificial intelligence (AI), make historical data more accessible than ever before, creating a major asset for energy company leadership at large. It’s no surprise that 95% of energy controllers believe data analysis is the most important strength for today’s controller.

The finance function’s need for technical proficiency and data analysis abilities is growing too fast for talent and upskilling to keep up. Controllers are now expected to co-lead the adoption of new financial software technologies and to promote data-driven decision-making. This shift was caused by the need for more accurate and timely insights to support strategic decisions that are based on institutional knowledge. In fact, 96% of energy industry controllers reported that leading the adoption of new financial software and technologies is most important, compared with 85% of respondents overall.

One of the biggest challenges is integrating data from various sources to provide a comprehensive view of the company's performance. Controllers who overcome this challenge will likely be viewed as strategic partners of the board and C-suite.

David Zaozirny

EY Americas Oil, Gas and Chemicals; Metals & Mining Assurance Advisory Leader

Across the energy industry, there is a strong focus on emerging technology, data analysis and the ability to unlock powerful insights. These capabilities can, for example, enhance operational efficiencies, improve customer service and maintain regulatory, ESG and technology compliance. Applications span from regulated utilities using data and generative AI (GenAI) to improve their rate-case processes to oil and gas companies using the same technology to simplify capital project planning and cost control.

Power and utilities controllers should be particularly focused on the benefits of data analytics. Regardless of scale or use case, controllers are heavily involved in promoting data-driven decision-making and in leading the adoption of new financial software technologies. This is due to their need to manage large-scale budgets or projects and ensure regulatory compliance. The right data can also help optimize operations, enable predictive equipment maintenance, reduce waste, increase service reliability and improve customer satisfaction.

Financial controllers should embrace ESG as an opportunity

86% of energy sector controllers indicate that being strategic is the most important part of their role.

As controllers become increasingly responsible for data strategy, governance, accessibility and accuracy within the finance function, ESG is an area where they can help their organizations become more strategic.

Data is paramount for utilities aiming to achieve sustainability goals, helping them track and reduce their carbon footprint, optimize the use of renewable energy sources, and support environmental initiatives. Data insights allow utilities to better manage energy production and distribution, balance supply and demand more effectively, integrate renewable energy sources, and reduce energy losses.

Looking ahead, controllers will likely need robust data governance and advanced analytics capabilities, as well as the skills to implement systems to handle the complexities of modern financial reporting and analysis. 

Controllers have a great opportunity in supporting their sustainability colleagues to mature processes and controls similar to those for financial data, now that ESG reporting is going to be regulated and requires assurance.

Shannon Roberts

EY Americas Climate & Decarbonization Leader, Power & Utilities Assurance Advisory Leader

ESG data and reporting are increasingly complex topics for controllers to navigate. Yet there is tremendous value in this data, especially related to greenhouse gas (GHG) emissions, as energy companies determine decision-making at the intersection of ESG, financial and operational data. For controllers who embrace innovative thinking, this is a significant opportunity to provide strategic guidance.

Looking to cross-sector peers for tips may be useful, since only 25% of US energy controllers believe being innovative is an important quality for the role, compared with 39% overall.

Controllers should broaden their definition of innovation to encompass their current skills and their potential.

Compliance and risk are critical for current and future energy controllers

57% of energy controllers expect a requirement of new skills in five years, vs. 26% of the broader sample

How EY can help

  • Finance Optimization

    EY FAAS teams can help increase strategic and operational excellence through process and control improvement , technology, and analytics. Find out how.

    Read more

The energy industry is heavily regulated and complex. As a result, financial controllers in the industry are responsible for ensuring compliance as well as identifying and mitigating risk.

 

In the oil, gas and chemicals sectors, there is an especially heavy focus on managing the complexities of global operations and regulatory requirements. Economic, environmental and commodity price fluctuations directly impact the sectors.

 

The most recent EY oil, gas and chemicals sector outlook indicates that price volatility, especially in global crude markets, is likely to increase in the coming year as markets are buffeted by risks of economic slowdown and geopolitical factors affecting supply. Other commodity markets, including liquified natural gas and commodity chemicals, will also be sensitive to economic shifts and geopolitical concerns.

 

The need for more formalized processes for adjusting to market fluctuations, as well as reviewing and prioritizing investment portfolios in the context of energy transition and sustainability initiatives, makes controllers vitally important to company leadership.

 

Meanwhile, utilities face different complexities as many navigate varying state and municipal requirements. The industry should prepare for a landscape characterized by varied regulatory pressures and investment climates across jurisdictions. Utilities also face significant disruption risks, ranging from cyber to weather, that can have widespread impact across the enterprise.

 

Utilities will likely need to invest significantly to keep pace with rising energy demand and to enable reliable, affordable energy generation, transmission and distribution. To make the math work, the sector should consider financial and operational data and strategize to maximize existing capital; find new funding sources; and navigate financing, dealmaking and organic growth.

 

Statistics point to a watershed moment for energy controllers, who are poised for more strategic roles as utilities pave the path forward. Traditionally, controllers were primarily focused on closing the books and signing off on financial accuracy. Today’s controller is being sought for insights, skills and acquired knowledge. And tomorrow’s energy sector controller may have the chance to rock the boat without going overboard.


Summary

Energy industry financial controllers are evolving from back-office roles to strategic leaders. Controllers are vital to adopting new technologies, managing large-scale budgets, and ensuring regulatory compliance. Their insights and skills are important for optimizing operations, enhancing customer service, and supporting sustainability goals, making them valuable to company leadership.

About this article

Authors

  • David Zaozirny
    EY Americas Financial Accounting Advisory Services (FAAS) Markets Activation Leader
  • Shannon Roberts
    EY Americas Climate & Decarbonization Leader, Power & Utilities Assurance Advisory Leader
Related topics
Financial accounting advisory services
Energy and resources
Power and utilities
Oil and gas
Mining and metals

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