If there were a lesson to be learned in the year 2020, it must relate to the ineffectiveness of predictions. While no one could have foreseen how 2020 would play out, trends that were already in motion continued to drive fundamental shifts in the energy markets. The energy transition is strong and advancing, and several market trends continue to drive growth. With that being said, we have compiled several energy market trends just for you.
In the renewables sector, the growth of green hydrogen — a process of parting hydrogen from the oxygen in water — can be expected soon. Green hydrogen is a kind of renewable energy source that has long been acknowledged for its significance in diminishing global CO2 emissions. As renewable energy prices continue to decline, industry experts foresee green hydrogen playing a much more competitive role in the energy industry.
Since the economy is beginning to recover, postponed renewable energy projects are expected to recommence and head to a rebound. The combination of 2020 and 2021 could be 10% lower than what the IEA had previously anticipated. While onshore wind installations have been affected during COVID, most of these projects were lucky enough to be already brewing, financed, and under construction before the pandemic struck. The two enormous hydropower projects that are about to set off in China will significantly affect the renewable sector.
In the fossil fuels sector, oil production is expected to deteriorate. Pre-COVID, the oil industry was gradually declining and has been enduring rough times. The pandemic and the growing pressure to shift toward renewable energy sources exacerbated oil production’s decline. Growth of oil production during the end of the year is expected due to the rise of crude oil prices (the annual average of crude oil production is estimated to be at 10.9 million b/d in 2021). EIA predicts the United States will go back to being a net importer of crude oil due to an oil production decline.
Due to the ambiguity of the economic situation and post-pandemic demands, electric power is expected to decline. The capacity of new electric power generation construction in the U.S. will be significantly affected by the state of component supply chains and the wellbeing and size of the construction workforce.
The decline of coal production forced many large coal producers to shut down their mines permanently. The EIA foresees a slight rise in coal consumption to $2.04/MMBtu due to the economy’s recovery from the pandemic. Coal consumption is expected to increase and return to its pre-pandemic levels if natural gas prices rise.
At Corefficient, we believe in staying ahead of energy innovation to accommodate only the best transformer core manufacturing that gives value for generations to come. We achieve this by keeping up to date with the latest trends and developments happening across the globe. We create a competitive advantage for our customers through non-stop innovation and advancements in our electrical transformer cores. We rise to all the developmental challenges by making sure that we have the best and most advanced equipment and expertise.
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Part of the National Material L.P. family of companies, Corefficient specializes in the fields of core engineering, transformer core design, magnetic core expertise, cold rolled steel, grain oriented steel, electrical steel, and – most importantly – customer service.
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