The report below gives a good overview of the Winter 2026 M&A activity in the Energy Industry Sector. In Q4 2025, the global energy industry underwent a dynamic shift driven by surging demand, geopolitical tensions, and a transition to cleaner sources, tempered by economic realities. Fossil fuels remained the primary focus, as coal and oil are expected to reach their peaks before 2030. Oil demand reached a record peak of 102 million barrels per day in the quarter, while natural gas stayed at a steady level due to substitutes. In developed economies, coal is fading rapidly but continues to remain in Asian regions, highlighting the importance of gradual rather than sudden change. The renewable movement is gathering momentum, driving the future with solar PV dominating world-record capacity additions. It is fuelled by falling prices and favourable regulations. The industry, currently worth $1.7 trillion by 2025, is projected to experience 17.2% annual growth to $7.3 trillion by 2034. This is driven by solar, wind, and hydro additions that surpass fossil fuel expansions. During Q4 2025, energy markets faced intense pressure due to peak winter demand. Oil prices ranged between $70-75 per barrel, with OPEC+ keeping production levels steady, but abundant supply capped profits. Natural gas surged in Europe because of cold snaps and low stocks, while U.S. LNG exports surged to record highs. Solar output in renewable locations increased 25% year-over-year, compensating for fossil use during high-demand periods and contributing to grid stability. Overall, Q4 emphasized the resiliency of renewables amid the volatility of fossil fuels.
Posted by Roy Graham.