The report below gives a good overview of the Summer 2024 M&A activity in the Energy Industry Sector. In 2024, the global energy market is projected to generate 28.81 trillion kilowatt-hours (kWh) of electricity, with an annual growth rate of 2.52% expected from 2024 to 2029. Emission intensity worldwide is anticipated to reach 0.49 kgCO2/kWh. Key regions leading in energy production include the United Kingdom, Japan, Iran, France, and China. The energy sector is poised for continued growth, driven by rising global demand. However, the energy mix is shifting towards cleaner, more sustainable sources like solar, wind, and hydropower. While fossil fuels will remain significant, their importance is expected to diminish over time, particularly in countries heavily reliant on them. The outlook for nuclear power varies, with growth expected in some regions and phase-outs planned in others. Renewable energy is set for substantial growth, supported by declining costs, increased demand, supportive policies, and advances in storage and grid technologies. The focus on diversifying energy sources is becoming crucial, highlighted by the geopolitical tensions and the global push towards sustainability. In the oil and gas sector, a wave of consolidation is expected to continue, particularly affecting upstream, midstream, and oil field services companies. Middle market companies are likely to play a significant role in this trend, making it crucial for them to strategically position themselves for the ongoing merger and acquisition activity. Accurate valuation and careful analysis of spending and contract terms will be essential to navigate the varied deal types and conditions in this sector.
Posted by Roy Graham.