America is a leading country in supplying energy to itself and the rest of the world.
It also is one of the world’s largest energy consumers.
Demand for energy is growing the USA, and will do so into the foreseeable future.
But industry participants need to be sensitive to industry and economic cycles – this is a cyclical industry and is recession sensitive.
USA businesses supply renewable energy, oil & gas, nuclear energy and is a leader in related technologies. USA firms provide distribution services and storage of energy.
America is a world leader in technology innovation in energy. Emerging technologies include smart grids, advanced distribution networks, and supply chain efficiencies. The American energy workforce is one of the best in the world.
The end result is that the energy industry remains one of the most attractive in the world in which to invest and conduct business.
We break out this large and diverse industry into several segments.
Oil and Gas. The USA is well on its way to becoming energy independent. America recently produced more oil domestically than it imported. It is now the number-one natural gas producer in the world. The industry has adapted to the recent low crude oil and natural gas prices and oil gas exploration and development is still strong. Shale and ultra deep-water continue to be promising.
In particular, U.S.A. based businesses have developed advanced techniques for shale and offshore oil and gas deposits. This has had giant implications changing both the domestic and international oil and gas industry. Even as crude oil and natural gas prices have declined, U.S.A. producers are able to remain competitive. Exports have increased.
As prices rise, U.S. shale production will increase as profitability improves. Offshore oil and gas production in the Gulf of Mexico and elsewhere should increase also. No one can predict the future of energy prices but geopolitical turmoil tends to result in rising prices.
Renewable Fuels. The USA ethanol and pellet industries are also increasing their capacity. Exports are going up. The American ethanol business industry is the largest in the world and uses technology for continuous efficiency. Biofuels are another area of promise, also using new technologies. Aviation applications dominate here.
Nuclear Energy. No other country has more nuclear reactors or generates more nuclear power than the USA. Almost 20% of USA electricity is nuclear. New nuclear power plants are expected to be productive by 2021. More are expected after that. This a broader industry than the casual observer might think and include businesses that not manufacture nuclear components (reactors, nuclear monitoring instruments, etc._ but also nuclear fuel, construction and engineering plus consulting.
Renewable Energy. The USA has a vibrant and profitable renewable energy industry. It includes solar, wind, hydropower, geothermal, biomass and so on. The USA has the largest geothermal and biomass industries of any in the world. It is the second largest in wind. Third largest in hydropower. Fourth largest in solar. Some forecast that renewable will be 50% of all energy generated by 2030. New investment is substantial, and some think there is $100 billion in clean energy investments and transactions in recent years.
Technology & Innovation. The USA energy industry is a leader in innovation using technology. This includes energy efficiency at the user level, smart grids and battery storage. The smart grid uses technology for the transmission of power and increases efficiency and reliability. An entire ecosystem of technologies and services surrounds the “smart grid industry”. This includes regulatory reforms too. Improvements in battery technology offer great promise also.
All of these areas offer the potential for great rewards for a privately held business.
