Energy and Gas Trends 2024: Innovations and Challenges Ahead

As we navigate the ever-evolving landscape of the energy and gas industry, it’s clear that 2024 so far has been a year of dynamic changes and significant economic impacts.

From fluctuating gas prices to advancements in renewable energy, there’s plenty shaping this critical sector. Whether you’re a seasoned professional or just curious about what’s driving your utility bills, let’s explore the latest updates and how they’re influencing the global economy.

Electricity Consumption and Production Changes

With increasing electricity consumption and issues like port closures and fluctuating oil prices, the energy landscape is constantly shifting. According to the Energy Information Administration (EIA), US marketed natural gas production is expected to fall by 1% in 2024 due to low natural gas prices. However, a 2% increase is forecasted for the following year. This predicted drop in 2024 will put pressure on the Henry Hub natural gas spot price (the price of natural gas in US dollars per 1 million British thermal units), likely increasing prices as we approach December 2024.

Clean Energy Transition

Our recent Clean Energy Transition: Oil and Gas report highlights the growing demand for clean energy and biofuels. The US consumes more oil than any other country, with fossil fuels making up 80% of the domestic supply in the US and Canada. The Inflation Reduction Act in the US and the Canadian Clean Energy Plan are accelerating the energy transition by supporting the growth of renewables. This opens opportunities for partnerships between private companies and governments to develop clean energy infrastructure. However, challenges such as high transition costs and regulatory issues remain.

Global Oil Production

According to the EIA, on June 2nd, new global oil production targets were announced, leading to extended voluntary production cuts in countries like Saudi Arabia and Russia. These cuts are planned to phase out by September 2025. Despite these cuts limiting world oil production growth, production outside of OPEC+—particularly in the US, Canada, Brazil, and Guyana—remains strong.

To read more about the Energy and Gas industry, including some pain points the industry is facing visit our page here.