This segment is composed of establishments that operate fossil fuel powered electric power generation facilities.
Companies in this segment operate generation plants to provide electricity to transmission and distribution systems.
There are various types of renewable energy in this particular segment. These include wind, solar, geothermal, hydroelectricity, and biomass.
The Energy industry is Concentrated. The production in this industry is dominated by a many large firms that are capable of shaping the industry’s direction and price levels.
Primary Demand Drivers
- Commercial, government, and residential needs for electrical power (which mainly depend on economic activity and population growth)
- Government regulations
- Fuel costs
From the Blog
Renewable energy is growing in popularity across the globe, and with good reason—the benefits of renewable energy sources are widespread. Finding alternative energy sources that don’t require the use of fossil fuels can lower energy costs for consumers, create more stable and reliable energy prices, and make electricity more available throughout the world. Furthermore, climate change is proving to be a very expensive ordeal—costing $240 billion in economic losses in the United States alone—and renewable energy has a significantly smaller impact on climate change compared to the burning of fossil fuels. Clearly, investing in renewable energy has economic benefits. Let’s look at how three regions around the world are faring in their journey to use more alternative energy sources.
The development of fracking has created a revolution in the United States oil and gas industry. Following a conference in Houston, analysts have projected the U.S. to surpass Russia and Saudi Arabia to become the world's top crude exporter within the next few years. The U.S. is projected to double its gross crude oil exports to 4.2 million barrels per day by 2024. Additionally, the United States is expected to account for 70% of the total increase in global production capacity over the next 5 years. Directors for the International Energy Agency have crowned this the “Second wave of the U.S. shale revolution”. Additionally, there is a $2.5 billion project being discussed that would carry wind and solar energy from Iowa into the Chicago area. This ‘cord’ is estimated to be 349 miles long and would connect to a power grid serving 13 midwestern states.
- SelectUSA (Date Accessed: 6/1/2017)