Entering another year and looking back at the past year can be great ways to see where the world is in terms of energy reliance. Oil and natural gas isn’t going anywhere anytime soon as much as there have been calls for nations to stop relying on such ways of using energy for the past couple decades. This is going to be a year that is going to see growth in these two areas as well as renewable energies as whole as well. First off lets look at how renewable energies are going to be gaining traction and being an even larger fixture in the narrative of energy use in the world.
Renewables gained a lot of ground in 2015 and it was one of the best years for solar power. The amount of installations in the United States was an at all time record high. The next couple years could make 2015 look like nothing and 2016 will be on an incredible start for more installations. As the solar investment tax credit increases this will influence more people to invest and contribute to the growing solar trend. Wind and solar are slowly becoming more mainstream sources of gaining electricity all around parts of the world. Paired with new renewable energy technologies there is no stopping the economic and technological reign that renewables are going to have on the industry and economy as a whole.
For savvy investors everywhere or anyone following the market they know that the oil industry is in an incredible downward spiral and is at the bust part of its boom and bust cycle. Oil is trending at around $30 per barrel with the possibility of it going down even more before the eventual rebound.
Financials aside this means more in terms of energy. The United States has finally become a major player with oil drilling and production. This is now changing in the upcoming year in 2016. Oil output has begun to decline by about 300,000 barrels per day to around 9.3 million all together. Time will tell if they will regain more drilling by the end of year depending on the economic status of the industry.
Right now natural gas levels are soaring and continuing to hit record highs since 2016. As storage supplies are flying prices are continuing to drop to levels that haven’t been seen in over a decade and a half. This is forcing some wells to close up shop for sometime and decline production and drilling.
These storage levels are going to be weighing on prices and have an influence on how much natural gas will be drilled for. All of these factors are good for consumers who are seeing gas prices cheaper at the pump without having to know the underlying issues behind them. There’s also the prevalence of renewables being a viable option and not just something reserved for the elite and rich who can switch over to renewable energy without risking their economic standard.