The report below gives a good overview of the Winter 2022 M&A activity in the Energy Industry Sector. The Energy sector has outperformed the general market despite the continued global energy crisis. The energy market is driven by two major factors: government and fundamentals. Fundamentals are the elements that influence electricity and natural gas supply & demand. Supply is affected by power generation, natural gas production (drilling rigs, fracking, and horizontal boring), underground gas storage, and pipeline capacity. Changes in the legal and regulatory environment, as well as politics, can have a considerable impact on energy prices. New emission regulations, such as forced shifts to cleaner production facilities with higher operational costs, new energy taxes or levies, and new pipeline or transmission line location limits are all possible governmental consequences. Despite the high price of nonrenewable resources, natural gas will continue to be a major source of energy, as coal and nuclear power will gradually decline. Furthermore, LNG demand is set to grow by 60% by 2030 as per report published by Linchpinseo. Renewable energy reached new records, because of stronger policies and raised climate objectives leading up to COP26. Renewable energy resources have become one of the most competitive energy sources in many locations due to rapid technological advancements and falling costs, as well as the growing competitiveness of battery storage. The world's capacity to generate electricity from solar panels, wind turbines, and other renewable technologies is expected to increase.
Posted by Roy Graham.