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Summer 2023 | M&A Report In The Energy Industry Sector

By Roy Graham

August 28, 2023

The report below gives a good overview of the Summer 2023 M&A activity in the Energy Industry Sector. The global energy market is projected to expand from $83.7 billion in 2023 to $150.7 billion by 2028, with a CAGR of 12.5% during the forecast period of 2023-2028, as reported by Mordor Intelligence. Based on an analysis of the announced spending plans of all the large and medium-sized oil, gas, and coal companies, it was conveyed that investment in unabated fossil fuel supply is set to rise by more than 6% in 2023, reaching $950 billion. Renewable capacity additions worldwide are set to experience significant growth, with an unprecedented increase of 107 GW, surpassing 440 GW in 2023. This remarkable expansion is fueled by expanding policy support, increasing concerns over energy security, and enhanced competitiveness against fossil fuel alternatives despite challenges such as rising interest rates, higher investment costs, and persistent supply chain disruptions. In response to elevated electricity prices resulting from the global energy crisis, policymakers, particularly in Europe, actively seek alternatives to imported fossil fuels to enhance energy security. This shift in focus has created a favorable environment for solar PV, particularly in residential and commercial systems. It is estimated that approximately $2.8 trillion will be invested in the energy sector in 2023, with over $1.7 trillion allocated to clean energy, including renewable power, nuclear energy, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables and electrification, according to the International Energy Agency. The agency highlights that for every $1 spent on fossil fuels, $1.7 is now invested in clean energy. In 2023, low-emissions power is anticipated to account for nearly 90% of total investment in electricity generation, with solar emerging as the prominent performer. Solar investments are predicted to exceed $1 billion per day ($380 billion for the year as a whole) in 2023, surpassing upstream oil spending for the first time. As per the US Inflation reduction act, focus on supply-side measures supporting low-carbon energy sources has been emphasized to attain the prime objective of decarbonization.

Posted by Roy Graham.

Read the Entire Summer 2023 Energy Report Here