Energy has the biggest impact on our daily lives. Energy prices affect everything we consume, From the price of groceries, the clothes we wear, the electronic devices we use, to the gasoline we put in our cars, everything is affected by the energy prices.
According to the US Energy Information Agency (EIA), annual worldwide energy consumption exceeds 125 quadrillion Btu. This is expected to further grow to 138 quadrillion Btu by 2050.
Energy Trends Around the Globe
Here are the current energy trends which can create opportunities in the long run:
- Emerging Market Growth – Growth in developed nations is forecast to remain flat. In other words, emerging market nations will be responsible for the overall increase in energy consumption. This forecast could have important ramifications for commodity markets.
- Energy Efficiency Revolution- Developed economies in North America and Europe will benefit from greater energy efficiency in the coming decades. More efficient natural gas-fired power plants, smart grid technology, and fuel-efficient cars are some of the developments that could produce a new energy efficiency revolution
- Population Growth – By 2040, the world’s population is expected to exceed 9 billion. The growing world population will create new competition for energy resources. It will also likely spur innovation in energy as fast-growing countries struggle to deal with rising demand and constrained energy resources
- Electricity Penetration – Nearly 1.3 billion people in the world have no access to electricity. Over the next two decades, emerging countries will trade power grid infrastructures as their economies mature. These new power generators will require some sort of fuel – crude oil, natural gas, coal, nuclear, or renewables – to operate. As access to electricity expands to more economies across the globe, energy needs are bound to increase.
- Industrialization in Developing Economies – Industrial energy demand could increase by 70% by 2040. Most of this increase is likely to occur in developing economies. This new source of industrial energy demand could offset waning demand from industry in developed countries.
Checkout:
- Accurate and Reliable Gold Forecast
- Reliable and Trusted Commodity Signals
- Reliable forex signals
Top Energy-Producing Countries
Here are the top energy-producing countries in the world:
| Sr. | Commodity | Top Producing Country | Amount Produced |
| 1 | Crude Oil | Russia | 10,500,000 thousand barrels per day |
| 2 | Natural Gas | United States of America | 766 billion cubic meters per year |
| 3 | Coal | China | 3,874 million tonnes per year |
| 4 | Electricity | China | 6,142 billion kWh per year |
| 5 | Ethanol | United States of America | 15,329 million gallons per year |
| 6 | Heating Oil | United States of America | 18,119 thousand barrels per day |
| 7 | Gasoline | United States of America | 8,900 thousand barrels per day |
There are five main renewable energy sources:
- Solar – energy obtained from the sun
- Geothermal – energy harnessed from heat within the earth
- Wind – energy harnessed from the natural movement of air
- Biomass – energy obtained from living matter, usually from plants
- Hydropower – energy obtained from flowing water
There are five main renewable energy sources:
- Petroleum Products – crude oil and various refined crude oil products including gasoline, heating oil, diesel fuel, jet fuel, lubricating oils, and asphalt.
- Hydrocarbon gas liquids – gas liquids derived from natural gas and crude oil and include alkanes (e.g., propane and butane) and alkenes (e.g., ethylene and propylene).
- Natural gas – energy consisting mainly of methane that is found deep beneath the earth’s surface.
- Coal – a sedimentary rock that can be burned for fuel.
- Nuclear energy – An energy source derived from splitting the atoms of uranium and producing a chain reaction of energy.
Read:
- Forex vs stocks
- Top infrastructure stocks
- Best 3D printing stocks
- Buzzing stocks
- Top trending stocks
- Best AI backed stocks
Top Energy Commodities in 2024
Energy commodities are products or services that provide energy sources for daily life or industry. Talking about Energy Commodities, here is the list of energy commodities:
- Crude Oil – Crude oil has different variations based on geography and physical characteristics: West Texas Intermediate (WTI), also known as light sweet crude, and Brent Crude are two of the most frequently traded varieties
- Gasoline – Commodity markets trade a product known as Reformulated Blendstock for Oxygenate Blending (RBOB) gasoline. In the United States, about 47% of each barrel of crude oil goes to produce gasoline for cars and light-duty vehicles.
- Heating Oil – This fuel is refined from crude oil and used to heat homes and businesses. In the United States, about 28% of each barrel of crude oil goes to produce distillates such as diesel fuel and heating oil.
- Coal – Coal is a fossil fuel used mainly in power generation and steel production.
- Natural Gas – Natural gas is a fossil fuel used in electric power generation and a variety of residential, commercial, and industrial applications such as heating and refrigeration
- Electricity – Electricity powers virtually every segment of the world economy.
- Ethanol – Ethanol is used as a blending fuel with gasoline
- Uranium – Uranium is a radioactive metal used to produce nuclear energy.
Also, read:
While the above is the list of the top-performing energy commodities, let’s now discuss the top commodities which will be rising in 2024:
Oil
– In 2022, the biggest consumer of Oil, reduced its consumption. With the giant energy consumer seeming set on easing its Covid-19 restrictions, the growth potential is enormous. In 2022, consumption of oil in the industrial sector boomed as gas prices spiked, and with economics for oil burn favorable in 2023 despite declining spot LNG prices, demand looks set to remain strong. As road and air traffic rebound, the International Energy Agency estimates China’s 2023 oil demand to climb by about 0.78 million b/d, eclipsing any previous annual growth. The speed at which China returns to normality will dictate the shape and level of oil prices in 2023.
Gas
– The geopolitical struggle between Europe and Russia will continue to govern the dynamics of global gas markets in 2023. Global liquefied natural gas demand is likely to surpass 400 million tons in 2023. Europe will be a major contributor to this demand growth. Gas demand destruction levels and the implementation of a possible gas price cap are the key things to watch for Europe in 2023. China’s LNG demand is a big wildcard next year as it emerges from sweeping Covid restrictions. More nuclear generation in Japan and Korea will lower the demand for gas in power generation, reducing the need to import LNG. Most of the LNG supply growth will come from the resumption of normal operation at plants under maintenance in 2022, with US projects leading the production expansion.
Also, learn:
- Top domestic stocks
- Best covered call stocks
- Best drip stocks
- Best stock signals
- Best stock forecast website
- Stocks vs Shares
Coal
– Despite the climatic concern of major world powers, the demand and use of use seem to remain intact. Consumption of oil was at its all-time high in 2022 end. Several countries have launched climate strategies that include the phasing out of coal production and use over the coming decades, however with gas shortages and a long road to getting enough renewable energy operations running to meet global demand, many continue to rely on coal for power and industry. While coal use is expected to decrease in the long term, to be replaced by natural gas and renewable alternatives, demand is set to remain strong in 2023.
An International Energy Agency (IEA) report suggested that coal consumption is expected to rise high and remain stable between 2022 and 2025. The IEA’s report stated, “Coal markets have been shaken severely in 2022, with traditional trade flows disrupted, prices soaring and demand set to grow by 1.2%, reaching an all-time high and surpassing 8 billion metric tons for the first time.”
The shortage and costliness of gas have been reported as a major reason for the ongoing reliance on coal in Europe. Coal use is increasing despite the drop in iron and steel production, as the global economic crisis has meant lower output levels. But without the wind or solar power capacity needed to meet demand, Europe has switched back to coal to meet its needs, with an expected rise of 2 percent in coal used for electricity production this year.
Coal demand also remains high in other parts of Asia, such as India and Indonesia. Asia’s coal market is expected to continue expanding rapidly for several years to come. Although China pledged to stop constructing new coal plants overseas, halting existing coal plans in its Belt and Road Initiative (BRI), it continues to pump funds into its national coal developments.
Hydrogen
– Hydrogen financing is expected to take off in 2023. In 2022, many electrolyzer-based clean hydrogen projects were announced, but few were financed. However, US developers are waiting for guidance on the generous Inflation Reduction Act tax credits. As soon as it’s released – which should happen in the next six months – developers will move quickly to finalize investment decisions. Also, in Europe, many developers are planning to start their hydrogen projects by 2025 and for that, they need to reach a final investment decision in 2023 to start on time.
Hydrogen can help to tackle various critical energy challenges, including helping to store the variable output from renewables like solar PV and wind to better match demand. It offers ways to decarbonize a range of sectors – including long-haul transport, chemicals, and iron and steel – where it is proving difficult to meaningfully reduce emissions. It can also help to improve air quality and strengthen energy security.
Despite the benefits, hydrogen still faces significant challenges. Producing hydrogen from low-carbon energy is costly at the moment, the development of hydrogen infrastructure is slow and holding back widespread adoption, and some regulations currently limit the development of a clean hydrogen industry.
Today, hydrogen is already being used on an industrial scale, but it is almost entirely supplied by natural gas and coal. Its production, mainly for the chemicals and refining industries, is responsible for 830 million tonnes of CO2 emissions per year.
Checkout:
- Best drone stocks
- Forex Signals providers
- Best NFT stocks
- Best swing trading stocks
- Technical analysis books
Solar
– Global solar deployment will continue to grow in 2023 to about 316 gigawatts, up from about 268GW in 2022 and 182GW in 2021. The demand for Solar energy was unexpectedly high in 2022 and this growth is expected to continue in 2023. China and Europe both are seeing huge growth in Solar Energy.
Uranium
– Uranium is used to generate electricity in commercial nuclear reactors and create isotopes used in medicine, industry, and defense.
Australia has the world’s biggest uranium resources, accounting for 28%. Kazakhstan ranks second in terms of resources with 15%, but the country is the world’s top uranium producer. Kazakhstan accounted for roughly 40% of global uranium output in 2020.
Uranium prices fell from their highest levels in more than a decade to below $50 per pound (lb) in the year 2022, as the protracted war between Russia and Ukraine has heightened concerns about the security of supply. Global uranium production was already in decline prior to the conflict, due to miners shelving new projects and scaling back operations during a decade of depressed prices. The Covid-19 pandemic in 2020, which hampered travel, also interrupted mining operations.
However, there will likely be a further recovery of uranium prices in 2023 as nuclear energy regains popularity. Amid the energy crisis accelerated by the Russian-Ukraine war, countries like Japan, France, South Korea, India, the UK, the US, and Germany recently announced new constructions and additional incentives and funding for nuclear power.
Also read:
- Best day trading stocks
- Best stock advisor service
- Best forex indicators
- Best preferred stocks
- Best penny stocks to invest in
- Best crypto day trading strategies
Ethanol
– The ethanol market has witnessed substantial growth in recent years as a result of increasing concerns about environmental pollution and the rising demand for renewable energy sources. Fuel ethanol, a type of biofuel, is derived from agricultural crops such as corn, sugarcane, and wheat. It is commonly used as a blending component in gasoline to reduce greenhouse gas emissions and enhance fuel efficiency.
The global fuel-ethanol market has experienced significant expansion due to several factors.
- The growing awareness about the adverse effects of fossil fuel consumption on the environment is one of the primary factors. Fuel ethanol, as a renewable and cleaner-burning alternative to gasoline, helps reduce carbon dioxide emissions and decrease air pollution.
- Governments and regulatory bodies worldwide are implementing policies and regulations to promote the use of biofuels, including fuel ethanol, to meet sustainability targets and combat climate change.
- The need to enhance energy security and reduce dependence on imported oil. Many countries are striving to achieve energy independence by developing domestic biofuel industries.
As the world continues to prioritize clean and sustainable energy solutions, the fuel-ethanol market is expected to expand further, providing opportunities for innovation and advancements in the biofuel sector.
With almost 44 % of the global market share, North America is the largest regional market in 2022. Owing to the large number of raw materials that are readily available and the rising product demand from the automotive industry, Latin America is one of the largest regional markets. In terms of product consumption, Brazil dominates the Latin American market. It was among the first nations to experiment with ethanol’s combination with gasoline.
Emerging ethanol uses are expected to provide new business prospects for the major players in the global market. The aviation industry is concentrating on the study and creation of ethanol-blend fuels to lower overall costs and cut carbon emissions. In the upcoming years, it is anticipated that recent ethanol uses in ignition systems and emission control in the transportation industry would lead to improved chances.
Checkout:
- Best crypto signals
- Best undervalued stocks
- Best stock indicators
- Top trading blogs
- Best regional bank stocks
