Markets and investment

Global energy investment totalled more than USD 1.8 trillion in 2018, with the power sector attracting more investment than the oil and gas industry for the third year in a row

Energy markets focus on the trade and supply of electricity, gas and liquid fuels. They consist of three main elements: generation or production, transmission and distribution, and supply. Once electricity is generated or gas and oil is produced, it is sold on the wholesale market to suppliers, who sell it on to consumers and arrange for its delivery. It is distributed to homes and businesses through transmission and distribution systems. Depending on a country’s government policy, these elements of energy markets may be nationalised or privatised. Energy markets are closely regulated to ensure secure access to energy at fair prices, since energy is a necessity for sustained economic output and human welfare. Energy markets in the UK are privatised and regulated by the Office of Gas and Electricity Markets (Ofgem), which is responsible for protecting the interest of consumers by promoting fair competition. UK energy markets have recently experienced significant changes due to diversification of electricity generation through the rise of renewable energy sources, as well as the addition of many new suppliers.

Around the world, investments in the energy system are shifting, with increasing funds flowing into renewables, grid flexibility mechanisms, and low carbon transport. An appropriate policy and regulatory environment is required for continued investment towards a low carbon economy while maintaining energy security. The low carbon transition often requires the government to drive and guide private spending since investments in low carbon energy infrastructure are often capital-intensive and require long-term returns. There is growing need for new market structures to be defined and existing ones to play different roles in order to encourage low carbon investments across all sectors of energy, while also keeping the energy system stable and conventional sources flowing. Increased interconnection is also an option for moving towards more sustainable and cost-effective energy systems; integration of national energy systems through cross-border infrastructure can redefine investment agendas.

For the latest news and articles on energy pricing read Petroleum Review.

Learn more about markets and investment by reading our Energy Insights.

View upcoming finanace and investment consultations and policies on our Policy Milestones Calendar.

What's new?

BP makes $7mn investment in EV charging company

22-06-2021
BP Ventures has invested $7mn in smart electric vehicle (EV) charging firm IoTecha. IoTecha’s technology connects EV chargers with the electricity grid using the Internet of Things (IoT), optimising the charging process by automating payments and delivering cost and potential energy savings to ...

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Post-pandemic market recovery likely to lead to highest oil demand growth in history, but will be short lived

14-06-2021
Economies opening up after the COVID-19 pandemic will release huge pent-up demand for travel, products and services requiring oil, leading to one of the strongest-ever growth periods for oil demand over the next two years. However, this super-cycle will come more quickly and last for a shorter perio...

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Call for clean energy investment in emerging and developing economies to be a top global priority

9-06-2021
The world’s energy and climate future increasingly hinges on whether emerging and developing economies are able to transition to cleaner energy systems, calling for a step change in global efforts to mobilise and channel the massive surge in investment that is required, according to a new report by ...

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Boosting investments in deepwater exploration offshore Trinidad and Tobago could reverse negative production trend

3-06-2021
Production of natural gas, the main commodity in Trinidad and Tobago (T&T), has been declining since 2015. Future gas output is projected to stay below 2017 numbers and then decline at a higher rate after 2024. In order to maintain the same level of production in the mid-term, the country needs ...

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Final investment decision for Bacalhau phase 1 in Brazil

1-06-2021
Equinor (operator, 40%) and ExxonMobil (40%), Petrogal Brasil (20%) and government company Pré-sal Petróleo SA (PPSA) have decided to develop phase one of the Bacalhau field in the Brazilian pre-salt Santos area at a cost of some $8bn.Bacalhau is the first greenfield development by an international ...

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Events and training

EI LIVE | Energy Efficiency

22-09-2021
Discover the latest approaches and strategies in energy efficiency that can help the UK reach net zero greenhouse gas emissions by 2050.Registration closes at 17:00 BST on 21 September 2021

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CQRM - Certified in Quantitative Risk Management - September 2021

27-09-2021
This 4-day CQRM - Certified in Quantitative Risk Management training course will teach delegates how to acquire updated and practical knowledge in risk management from a quantitative approach to measure, analyse and make decisions.

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Introduction to LNG - November 2021

1-11-2021
This 2-day training course provides an introduction to the LNG chain. Suitable for students who are new to the LNG sector and/or those with a non-technical background.

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Economics of the Oil and Gas Industry - November 2021

8-11-2021
A 2-day introduction to the economics of the oil and gas industry. This course is suitable for students who are new to the oil and gas industry.

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Technical guidance publications

Proceedings of the 20th World Petroleum Congress. Energy Solutions for All: Promoting Cooperation, Innovation and Investment. 4-8 December, 2011, Doha, Qatar

2012
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Financial investment in energy efficiency

2008
Taken from Croner's Energy Management loose-leaf manual, this 30-page module identifies a number of accountancy techniques to help energy managers quantify potential savings by investing in energy efficiency. It outlines the basic principals of investment appraisal, explains the barriers to investin...

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