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?

Green hydrogen projects need parallel desalination market to provide fresh water

17-09-2021
The global pipeline for green hydrogen projects is growing fast, with a current target of 206 GW in installed electrolyser capacity by 2040. However, ...

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China’s power and steel firms continue coal investment drive

2-09-2021
New steel and coal projects announced in China in the first half of this year will emit an estimated 150mn tonnes of CO2 annually, according to new ma...

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Petrobras, Shell and Strohm join forces to transform deepwater riser market

25-08-2021
Strohm has announced what it says is a game-changing joint industry programme (JIP) with Petrobras and Shell for its thermoplastic...

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Sub-Saharan Africa’s oil production aspirations could be hindered by lack of investment and new projects

6-08-2021
Sub-Saharan African nations are keen to rebound and ramp up investment in the oil and gas sector after a difficult 2020. However, the largest producer...

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China could drive electrolyser market according to new hydrogen market report

5-08-2021
Nearly everything is set to double this year in the world of clean hydrogen, from electrolyser installations to the number of countries creating hydro...

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Events and training

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-tech...

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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 qua...

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