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?

European hydrogen refuelling market build up

As Europe prepares for ambitious revisions to its regulatory framework to support Green Deal targets, a flagship project to encourage hydrogen-based mobility recently released key findings and forecasts. Brian Davis reports.

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The making of a market

The UK’s success in offshore wind was no fluke. In fact, the sector benefitted from years of subsidies and government support. Nick Cottam looks at the origins of this critically important technology.

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Fuel demand worldwide unlikely to drop despite anticipated alternative fuel vehicles market surge

The fact that traditional fuel vehicles will be phased out and replaced by alternative-fuel vehicles (AFVs) is no longer in question. However, how quickly this transition is going to take place is another story. In fact, while countries in Europe and Asia are still experiencing a drop in fuel demand...

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Global oil markets rebalancing, says IEA

‘World oil markets are rebalancing after the COVID-19 crisis spurred an unprecedented collapse in demand in 2020 – but may never return to normal,’ according to the International Energy Agency’s (IEA) latest medium-term outlook.The report, Oil 2021: Analysis and forecast to 2026, claims that rapid c...

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How social investment can help community renewables grow

Community renewables projects have a unique role to play in decarbonising the UK’s energy mix – delivering additional benefits to local people. Here, Ben Rick of Social and Sustainable Capital lays out a roadmap for the sector’s success.

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Events and training

EI LIVE | Introduction to LNG - May 2021

This 4-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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EI LIVE |Economics of the Oil and Gas Industry - May 2021

A 4-day online 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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Oil and Gas Industry Fundamentals - Awareness - March 2021

This 2-day Awareness Hybrid Training provides delegates with an overview of principal activities in the international upstream, midstream and downstream petroleum industry.

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CQRM - Certified in Quantitative Risk Management - September 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

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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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

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Financial investment in energy efficiency

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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