We know how hard it is to keep up with trends. But it’s critical to stay on top of the latest trends in the energy industry. This is helpful context for business decisions, knowing who to hire, and even how to engage new clients. Here’s a quick round-up of some of the key talking points in the energy industry right now.
The Future of Renewables
As federal policies and initiatives evolve, the renewal energy industry is expected to continue moving toward cleaner energy. Almost all new planned generation capacity for the next five years is either renewable or natural gas-fired. This is because wind, solar, and natural gas are often the lowest-cost resources. Both experience and research have shown they are that utility customers want the most across the country.
Distributed energy resource (DER) penetration is also set to have a big impact on the market. Examples of distributed generation include energy storage, microgrids, energy efficiency, electric vehicles, smart appliances, and demand response. Residential and commercial electricity customers are increasingly interested in these products and services as a way to manage their energy use, save money, reduce their carbon footprint, and boost reliability and resilience. It’s another important shift for the energy industry, but one that will make large-scale improvements for customers and for businesses ready to make the shift as well.
Big Money in Oil and Gas
Due to the rapid recovery in demand and geopolitical developments of the past year, oil prices are back up at 2014 levels. This year, the global upstream gas industry is projected to generate its highest-ever free cash flows. But investors and policymakers are adding pressure on upstream companies to prioritize shareholder payouts or increase hydrocarbon reinvestment rates, driven by the urgency to provide affordable energy to the world.
Global Policy Change
Increased pressure is on countries to accelerate the clean energy transition. High commodity prices and growing concerns over energy security are adding to the urgency. As a result, clean energy investment has risen by more than 10% each year since 2020. Supportive policies on a global scale have helped enable energy companies to increase their investment in clean energy. Examples include the Infrastructure Investment and Jobs Act in the United States and the Fit for 55 Climate Package and REPowerEU Plan in Europe.
For more insights into the trends driving change in the energy industry, connect with the experts at Williams Industrial today.