3 Trends That Could Reshape the Energy Industry

the energy inustry changing to renewable

A decade ago, before the shale gas revolution began in the United States, the energy industry placed all their focus on peak oil. Today, more people wonder what the latest trends will be for the energy industry in the years to come. These trends help shape how energy companies operate and provide electricity and alternate energy sources to residential and commercial customers. What trends are happening right now, and what can we look forward to in the decades to come?

Three Major Trends that Could Change the Energy Industry

Here are three critical trends that energy providers and others in the industry should pay attention to in the years to come.

The Growth of Renewables

In recent years, wind and solar power have created competition for other energy sources such as electricity and natural gas. Many large corporations are now doing their part to contribute to energy efficiency by using power that comes from renewable sources. The increase in renewables has far exceeded what many in the energy industry predicted. The use of wind and solar energy has grown into the double-digits over the last few years. As manufacturing costs have decreased, the cost for solar use has gone down around 50%. While the decrease in cost for wind energy use has dropped as much as 80%.

The Transition of Energy Sources

For hundreds of years, wood was the dominant source of energy. After that it was coal, and now the primary source is oil. As time goes on, gas is increasing in use as an energy source, and renewables are gaining more use. The world is changing rapidly, and we can expect the energy industry to change with it. The 2015 Paris Agreement will play a role in these energy transitions to keep global temperature rise below 2°C.

The Importance of Electrification

The transportation industry is expected to see some profound changes with the introduction of electric vehicles causing the demand for electricity to grow. Electricity is expected to have a much larger role in the energy mix as consumers become more interested in the concept of electric vehicles. By combing the use of these vehicles with car-pooling and ride-sharing, the transportation sector will become more energy efficient in the years to come.

How Will Gas and Oil Supply Contribute to These New Trends?

Gas and oil supply trends will also have a significant impact on the energy industry. Over the years, we have seen the oil supply peak and fall rapidly. These days oil is more plentiful than ever, which has helped to drive prices down. They feel that there will be a time when the oil demand will be high and gradually begin to fall. The peak oil window is expected to occur between 2025 and 2040.

Natural gas is similar to oil because it is so plentiful, but the main difference is that natural gas is only used for power and industry, while oil is also used for transportation. There is a lot of natural gas available at a low cost. No one foresees the need for natural gas peaking anytime soon, however.

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