The direction of executive orders will hopefully address infrastructure constraints.
Key takeaways
Energy infrastructure across North America is aging and struggling to meet growing demand.
Energy companies are increasingly adopting analytical AI technologies, including machine learning.
Energy sector trend #1: Impacts of executive actions and policies on energy
Since January, the U.S. administration has put forth a series of executive actions—ranging from executive orders to tariff announcements—that clearly signal a new direction in domestic energy policy. This new approach favors growth in fossil fuels and electricity while scaling back the support that renewable energy had under the prior administration.
Uncertainties remain in the specific implementation of these new policies, so we approach these actions in the same way that energy business leaders should: by considering the general direction set by the administration as well as the market and policy forces that will shape the final outcomes.
Energy sector trend #2: 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 #3: 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.
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