12/28/2023 0 Comments 2020 predictions ge power utility dive![]() Four out of 12 primary contenders, including two front-runners, have declared their intent to ban fracking if elected. However, oil investors haven't yet responded much to growing tensions in the region. The global oil and gas market must also contend with a rapidly changing world that has made data analysis and cybersecurity high priorities across the global economy.Īt the same time, the results of the Democratic presidential primary could have significant impacts on fracking. is not close to energy independence and relies heavily on foreign oil sources - meaning renewed conflict in the Middle East and new sanctions on Iran may lead to higher prices on crude. Sociopolitical changes could also do more than drive renewable growth - 2020 may bring changes that could have significant impacts on the energy sector.ĭespite the growth in domestic energy sources, the U.S. In the meantime, oil will likely continue experiencing significant growth alongside renewable gains. The general attitude of investors seems to be that renewables are the future - but the future's still a long way off. For example, research suggests electric cars and renewable batteries may have a worse impact on the environment than fossil fuels. Nuclear energy, which is difficult to classify in the traditional renewable versus fossil fuel binary, is also expected to experience little growth in 2020. Many experts also fear climate change may render some river flows too weak or inconsistent to provide significant or reliable power.įurther renewable growth may also face new challenges. Hydroelectric growth, which has stagnated over the past few years, will likely remain flat due to increasing criticisms of the environmental impact of hydropower. New developments, like improved battery tech and offshore solar farms, are expected to speed up renewable growth through 2020. Other renewables, however, are beginning to lag behind. The biggest winner of the growing interest in renewables has been wind power, followed by solar energy. This growth was, however, slightly outpaced by the rise of natural gas. In 2019, renewables provided more energy than coal for the first time. ![]() This trend may drive growth in other sectors, like offshore drilling.Īt the same time, the US energy sector has seen significant growth in renewable energy. However, the slowdown seen in the past few years is also likely to remain, resulting in higher overall oil prices. In 2020, market signs and expert predictions suggest this growth will continue. "There’s been increasing focus on decentralization and accountability deeper into the businesses, with a break-up reinforcing views that the business can be stronger on their own," O’Dea wrote.The past decade saw steady and significant growth in new sources of fossil fuels - primarily shale oil, fracking and natural gas - as traditional oil sources grew more expensive and unstable foreign oil markets encouraged investors to look home for their fossil fuels. Revenue in 2020 for the units was $33 billion, according to O'Dea's report. Wells Fargo Managing Director Joseph O’Dea, in a report on the split, also sees long-term growth potential for GE’s renewable energy and power business. GE’s power and renewable energy unit "is better positioned to take advantage … as a standalone entity." just passed a massive infrastructure spending bill," Dillon said. ![]() GE’s power, renewable energy and digital services/software spin off should have no lack of business opportunities to chase, Dillon said, noting the $1.2 trillion infrastructure bill that just passed.ĭemand for renewable power should keep GE busy building wind turbines, while its traditional power plant business is in a great position to help electric utilities move down the road toward decarbonization, he said.ĭillon sees vast growth opportunities for GE in the expansion of the electric grid now being planned, as well as in helping power companies explore the use of hydrogen in place of fossil fuels, and to developer carbon capture technologies. That, in turn, has been a marked contrast to the early 2000s, when GE was the darling of Wall Street under CEO Jack Welch and busy expanding its corporate empire into an array of sectors.Ĭonglomerates have since fallen out of favor among investors, with the market now favoring more sharply focused firms as opposed to giant corporate empires boasting of synergies. GE Chief Executive Larry Culp, who took over the struggling giant in 2018, has been focused on selling and streamlining assets and paying down debt. GE’s decision to call it quits on its long history as an industrial conglomerate and split up comes after more than a decade of failed reinvention plans, falling stock prices, and abrupt changes in leadership at the top.
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