Energy infrastructure across North America is aging and struggling to meet growing demand.
Key takeaways
Energy companies are increasingly adopting analytical AI technologies, including machine learning.
The energy transition is driving investment and a variety of actions across the industry.
Energy sector trend #1: Infrastructure constraints limit energy scalability but present opportunity
The energy sector is gaining renewed focus in the national and global conversation following record U.S. oil and natural gas production, a surge in electricity demand, and a boom in renewable energy growth. These trends are affecting communities and economies across the country, creating both significant promise and serious challenges in scaling the production and distribution of these energy sources. The challenges have ramifications for a range of projects, from drilling wells in West Texas and Pennsylvania to building new data centers in the mid-Atlantic and solar farms in California.
Energy sector trend #2: Energy sector companies navigate surge in electricity demand
The North American energy landscape is undergoing a significant transformation, driven by a surge in electricity demand far greater than what the region has seen in decades. This increase is due to multiple factors, including rising data center demand, electrification, electric vehicle adoption and new energy technologies like green hydrogen. Rising demand, combined with the emphasis on clean energy sources to help companies meet environmental, social and governance goals and qualify for tax incentives, is reshaping the industry.
Energy sector trend #3: The top 5 renewable energy trends shaping the sector
Today’s energy landscape continues to evolve as countries around the world increase their focus on decarbonization and shift from fossil fuels to renewable energy sources. The energy transition is driving significant investment and a variety of actions across the industry, from wind and solar energy startups to legacy oil and gas companies and the manufacturing and technology companies supporting the ecosystem.
Energy transition investment is on the rise, with $303 billion invested in the U.S. in 2023, according to BloombergNEF, up 22% from the prior year. Still, that is a fraction of the $1.77 trillion that was invested globally. The business case for adopting renewable energy is making more sense for companies, even with today’s higher cost of capital.
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