The report below gives a good overview of the Winter 2023 M&A activity in the Energy Industry Sector. The global energy industry remained volatile in 2022. The sector has been impacted by major headwinds such as partial shutdown of Russian gas supplies to Europe, subdued investment in the energy sector, rising recessionary fears and recent covid concerns in China. The Russia-Ukraine conflict contributed to the global supply chain constraints as Russia reduced its gas supplies to European Union (EU) by nearly 50% YoY since the beginning of 2022, as per research published by the International Energy Agency. However, the EU stored sufficient gas to meet the surging energy demand during winters in Europe. The EU's gas storage is estimated to be 93.9% full, as per the data from the industry group Gas Infrastructure Europe. However, the global supply of energy is expected to increase from 14.0 billion tons of oil equivalent in 2021 to 14.8 billion tons of oil equivalent by 2026, growing at a CAGR of 0.7%, as per report published by Report Linker. An Increasing move to electric vehicles, the EU's search for alternative & sustainable energy sources and higher investment in renewable energy by oil & gas business will drive the growth of the renewable market. The outlook for the overall energy industry remains robust with an increasing shift towards electric vehicles & adoption of carbon neutral policies.
Posted by Roy Graham.