Outlook 2025

The world needs to reduce emissions but must do so while providing affordable and reliable energy to meet rising global demand

Structurally lower GDP growth and the need for a different economic model will contribute to a significant slowdown

The climate narrative has centred on phasing out fossil fuels in favour of renewables and novel solutions, but increasingly, policymakers are realising the importance of hydrocarbons as an enabler of the transition

China drove the market for crude into the doldrums in 2024 with a big drop in demand, but a turnaround looks likely next year

With a raft of scare stories around peak demand and climate change, 2025 should be the year smart investors leave the Big Oil bogeyman to the stuff of child’s play

After hitting a high in 2019, output dropped during the Covid-19 pandemic, only to resume growth in 2021 and reach new highs. The US government expects 2.4% growth in 2025

The region accounts for the biggest share in terms of capital investment in the $2t market

Oil demand growth may be slowing, but the needs of rising populations and developing economies mean the outlook is still evolving

The energy transition will not succeed without a reliable baseload, but the world risks a shortfall unless more money goes into gas

Supporters of the LNG industry need to concentrate on the areas with the most potential before the sector runs out of time to make its mark

The role of gas is changing from being a provider of a large volume of energy to peaking supply backing up expanding renewables

Gas with carbon capture can be the solution to the region’s rapidly rising energy demand in the age of transition

With electricity consumption continuing to grow and set to surge further with the rise of digital technologies, natural gas remains critical to meeting demand

With substantial volumes of liquefaction capacity on the horizon and buyers holding more of the cards, the LNG market is evolving in unpredictable ways

The disconnect between export terminals coming online and vessels being available to transport cargoes means shipping rates are not looking so good, at least in the short term

Significant expansions are underway in both liquefaction and regasification capacity as LNG firms up its position as a long-term solution for the world’s energy needs

Global population growth is leading to ever-rising demand for reliable and affordable energy, a need gas is perfectly placed to meet

The government must take the opportunity to harness the sector’s immense potential to support the long-term development of the UK’s low-carbon sector

Policymakers and stakeholders must work together to develop a stable and predictable fiscal regime that prioritises the country’s energy security and economy

The importance of the oil and gas sector to the UK and the value of its assets mean 2025 could offer new opportunities and a recovery in activity

The region’s fast-growing economies stand at a pivotal juncture, with the opportunity to drive a sustainable growth strategy that will keep the world’s net-zero ambitions alive

The traditional concept of the energy trilemma is insufficient to understand how energy and politics really work

If they are ambitious enough, NDCs can provide investable pathways to deliver each country’s energy transition and keep the world on track to limit global warming

Regional cooperation over the development of gas resources has the potential to bring peace and prosperity to the East Mediterranean

Whether it is hydrogen, LNG, carbon capture or water treatment, collaboration is key to meeting the world’s growing energy demand while meeting decarbonisation goals

The region has ample resources of both gas and renewable energy and developing both will be vital to the global effort to reduce emissions

The EU should turn the page on its prescriptive approach and encourage innovation and competition, with biofuels and biogas being an essential part of the conversation

While the global energy transition is essential for reaching net zero, it is equally important that less-developed countries are allowed to realise the benefits of their hydrocarbon resources

Bioenergy will be a key part of the energy transition as the world decarbonises, and Brazil is set to be a major player in the sector

Governments, developers, investors and lenders are keen to support and scale up cutting-edge energy transition projects, but funding such projects will require innovative financing and strategic collaboration

Global energy demand keeps rising, and digital technology will play a crucial role in both meeting that demand and doing so in a sustainable way

Policymakers need to step up with a long-term, global strategy if the energy transition is ever to be a success

The hurdles standing in the way of rapid move away from fossil fuels are proving harder to clear than first thought

Tightened standards have helped improve the outlook for the voluntary carbon market, which is set for a record year and poised for long-term growth

The utility-scale battery energy storage system market is evolving rapidly, with diverse offtake models emerging to offer bespoke, flexible contracting solutions