The energy landscape is transforming. The changes underway affect every organization and every sector in countless ways, from energy prices to grid reliability to emissions. It’s crucial to understand both national and regional energy trends to successfully plan for the years ahead.
Our 2022 Energy Market Outlook is intended as a resource to offer insight into the major topics in energy markets, and to help you understand how they could affect your organization. In the report, our experts offer analysis for the coming year, and explore the factors that will shape energy markets in 2022 and beyond.
Below are some of the excerpts from selected sections of the Outlook. The report also features regional analysis for California, Texas, the Mid-Atlantic, the Midwest, New York, New England, Canada, and Mexico.
The Biden administration’s pledges and the effects of new policies
Once considered prohibitively expensive, solar and wind are now more affordable than nearly all other forms of energy generation in terms of levelized cost of electricity, even without subsidies. Hoping to capitalize on the momentum of the past several years, the Biden administration has laid out ambitious goals for decarbonizing the economy in the coming decades.
To reach the Biden administration’s goals, solar capacity additions will have to increase rapidly in coming years. In the report, find out why there will be obstacles to such fast growth, but why the goal could be feasible, especially if legislative and regulatory efforts continue to support the transition.
Corporate action and the transition to a zero-carbon future
Climate commitments from organizations worldwide continue to drive energy markets—electric, gas, and other fuel sources—toward zero-emission sources. Companies are moving beyond renewable energy targets to set ambitious greenhouse gas (GHG) reduction targets. These targets require companies to set goals for scope 1 and 2 (and, in many scenarios, scope 3) emissions reduction, pushing companies to source renewable electricity, electrify operations, and look for other forms of low-emissions fuel or activity.
The analysis in our report looks at the primary energy products that organizations are using to meet reduction goals for emissions.
Electric vehicles and smart charging infrastructure
Electric vehicle (EV) sales will continue riding all-time highs to outpace previous projections through 2025. Given the rapid increase in EVs on the roads, the pace of electric vehicle supply equipment (EVSE) deployment must increase exponentially between now and 2030. Both the US Infrastructure Investment and Jobs Act (IIJA) and private enterprises are pushing to close that gap and support further EV growth. Learn more in our report, including why smart charging is positioned to dominate the residential EV charger market in the coming years.
Natural gas outlook
In 2021, the dynamics in the US natural gas market shifted from low prices and oversupply to high prices and undersupply, as reflected by a 13-year high November Henry Hub price above $6.00/MMBtu. 2021 saw increased demand in commercial and industrial sectors, as well as a continuation of the reduced investment in exploration and production that followed the onset of the pandemic in 2020.
In our report, find out why we expect domestic production to recover and domestic consumption to soften in 2022, which should put pressure on prices to decline after Q1 2022 as production begins to outpace demand.