Latest news with #energysector
Yahoo
3 hours ago
- Business
- Yahoo
The Permian Basin is Fueling America's Electric Future
The growth in US power demand is surging to its highest rate in decades, driven first by the electrification of oil and gas production and then by the build out of data centers. While still below the 5-10% growth seen in China, the world's first 'electrostate," the US power sector is experiencing rapid structural growth. The country is delivering more than a 3.5% annual power demand growth rate for the first time in several decades, potentially positioning the US as the world's next 'electrostate,' despite the strong oil and gas focus of the Trump administration. Nationwide electricity consumption increased by around 200 terawatt-hours (TWh) in the last 10 years, with data centers already accounting for about 50% of the growth. Our updated assessment suggests that in the next decade, growth is likely to be four times faster, with more than 800 TWh of consumption added between 2024 and 2034. We expect the commercial sector – largely data centers – to drive ~60% of the growth. Meanwhile, the electrification of the transport, industrial and residential sectors are expected to deliver 90-150 TWh of growth each. While the market attention is focused predominantly on these data centers, we note that the electrification of the Permian Basin has been one of the most significant contributors to the nationwide demand growth in recent years. In fact, there is no other load zone in the country that has experienced the roughly 4 GW increase in average demand that Texas has seen since 2021. This translates into 30-35 TWh of added consumption and accounts for the entire industrial demand growth in Texas in the last four years. Using a combination of industry surveys, public data and Rystad Energy's proprietary data tools and models, we have been able to deconstruct the current 7.5 GW of Permian Texas grid power demand into individual contributors. Roughly 2.5 GW comes from residential and commercial sectors in West Texas and ~30% of that came on the back of accelerated Permian oil and gas development since 2017-2018. Upstream pad operations (mainly electric submersible pumps and other pad equipment) and gas compression contribute with ~2 and ~1 GW to the demand, respectively. The remaining 2 GW comes from direct electricity use at gas power plants, other oil and gas midstream facilities and liquids transmission. Some of these segments are positioned for significant growth in 2025-2035 regardless of oilfield activity outlook amid ongoing electrification of the basin. Hence, the Permian Basin will inevitably remain a critical contributor to nationwide demand growth. By Rystad Energy More Top Reads From this article on
CTV News
6 hours ago
- Business
- CTV News
SaskPower to keep coal-fired power plants running
WATCH: SaskPower has plans to keep coal-fired power plants across the province running longer, and it could set the province up for another legal dispute with the feds.
Arabian Business
12 hours ago
- Business
- Arabian Business
Qatar's economy to grow 6.5 per cent by 2027 on LNG expansion: World Bank
Qatar's economy is set to accelerate significantly over the next two years, with growth projected to rise from 2.4 per cent in 2025 to an average of 6.5 per cent in 2026–2027, according to the World Bank's Gulf Economic Update. The sharp rise in growth will be driven primarily by the North Field LNG expansion, which is expected to boost Qatar's liquefied natural gas (LNG) output by 40 per cent, transforming the country's hydrocarbon sector performance. While hydrocarbon growth is expected to remain modest at 0.9 per cent in 2025, the World Bank anticipates a major turnaround once the new LNG capacity comes online, cementing Qatar's position as a global energy leader. Qatar economic growth In parallel, non-hydrocarbon sectors such as education, tourism, and services continue to show strong momentum, supported by infrastructure investment and international partnerships. This diversification effort is central to Qatar's long-term economic vision. Key insights from the World Bank report: Qatar's economic growth: 2.4 per cent in 2025, rising to 6.5 per cent in 2026–2027 Gulf-wide GDP: Projected to reach 3.2 per cent in 2025 and 4.5 per cent in 2026 Non-oil growth across the GCC: Driven by structural reforms, investment, and private sector activity 2024 regional growth: Improved to 1.7 per cent, up from just 0.3 per cent in 2023 Despite the upbeat forecast, the World Bank cautioned that global trade tensions and potential economic slowdown remain risks for Gulf economies. To safeguard future prosperity, it urged continued focus on economic diversification, innovation, and youth job creation. Division Director for the GCC countries at the World Bank Safaa El Tayeb El-Kogali said: 'The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity. 'Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability'.
Globe and Mail
12 hours ago
- Business
- Globe and Mail
Xcel Energy Stock: Is XEL Outperforming the Utilities Sector?
With a market cap of $39.8 billion, Xcel Energy Inc. (XEL) is a leading U.S. utility holding company that provides electricity and natural gas services through its regulated subsidiaries. The company generates electricity from a diverse mix of energy sources, including wind, solar, nuclear, coal, and hydro, and delivers clean energy solutions across eight states. Companies valued at more than $10 billion are generally considered 'large-cap' stocks, and Xcel Energy fits this criterion perfectly. In addition to utility services, Xcel Energy engages in natural gas pipeline development, renewable infrastructure procurement, and investments in non-regulated assets, with a strong focus on clean energy initiatives. Shares of the Minneapolis, Minnesota-based company have dipped 6.8% from its 52-week high of $73.38. Shares of Xcel Energy have fallen marginally over the past three months, underperforming the Utilities Select Sector SPDR Fund's (XLU) 5.8% gain during the same period. Longer term, the utility company's shares have gained 1.3% on a YTD basis, lagging behind XLU's 8.1% rise. However, XEL stock has returned 25.8% over the past 52 weeks, outperforming XLU's 16.7% increase over the same time frame. The stock has been trading above its 200-day moving average since late July last year. Shares of Xcel Energy fell 1.8% on Apr. 24 after the company reported Q1 2025 operating earnings of $0.84 per share, missing the consensus estimate and declining 4.5% year-over-year. Revenues also fell short of expectations at $3.9 billion, despite a 7.1% year-over-year increase. The earnings miss was driven by an 8.7% increase in operating expenses, including higher costs for operations and maintenance, depreciation, and interest. In comparison, Xcel Energy stock has underperformed its rival WEC Energy Group, Inc. (WEC), as WEC stock has returned 35.4% over the past 52 weeks and a 13.1% gain YTD. Due to the stock's outperformance relative to the sector over the past year, analysts are bullish with a consensus rating of "Strong Buy" from 16 analysts. As of writing, XEL is trading below the mean price target of $77.13.
Globe and Mail
a day ago
- Business
- Globe and Mail
ExxonMobil Is 1 of the Largest Energy Companies by Market Cap. But Is It a Buy?
Renewable energy sources, including wind and solar, have experienced significant growth over the past few decades, becoming a major contributor to the world's energy needs. But don't let anyone tell you that oil and gas companies are dying. The reality is far from it. Research by The Motley Fool laid out today's energy landscape, and virtually every single one of the world's largest energy companies by market cap deals in fossil fuels. It may not always be this way, but it's a clear sign that oil and gas have plenty of life left for long-term investors. ExxonMobil (NYSE: XOM) is the largest U.S. company, a behemoth with a staggering $440 billion market cap. Is the stock a good buy right now? Here is what you need to know. An industry stalwart you can buy and hold through adversity ExxonMobil is an integrated oil and gas company, meaning it diversifies its business across exploration, refining, and distribution. Its diverse operations, along with its massive size and scale, help the company endure hardship when oil and gas commodity prices drop to unprofitable levels. ExxonMobil's dividend streak is the most glaring proof of this. The company has paid and raised its dividend for 42 consecutive years. Very few companies in any industry have accomplished this, let alone the energy sector. Five years ago, the COVID-19 pandemic abruptly turned the world on its head, sending oil prices below zero for the first time. Not even that stopped ExxonMobil from raising its dividend. Today, ExxonMobil could be in its best financial standing in recent memory, ready for what the future holds. The company has a sterling AA- credit rating from S&P Global, well into investment-grade territory. Additionally, ExxonMobil has $17 billion in cash on its balance sheet and debt amounting to just 8.3% of its assets, its lowest level in over 10 years. ExxonMobil may not be an exciting business, but it's the rare energy stock you can buy and hold without losing a wink of sleep. Drilling for growth and cash The energy giant has shifted gears to drive growth over the next five years. First, ExxonMobil acquired Pioneer Natural Resources in a $64.5 billion (enterprise value) all-stock transaction that closed in May 2024. The merger expanded ExxonMobil's footprint in the Permian Basin, an oil-rich region in the Southwestern United States. Management believes that growing production in profitable regions, such as the Permian Basin and Guyana, combined with cost-cutting measures, will help ExxonMobil increase earnings by $20 billion, cash flow by $30 billion, and generate a cumulative $165 billion in cash by 2030. It's an ocean of capital that would enable the company to invest in its core business, build new revenue streams outside of oil and gas, repurchase shares, and, of course, continue to raise its dividend. These goals could change if oil and gas prices fall for an extended period. However, management clearly believes the company will continue to grow profitably. Plus, the Trump administration supports the oil and gas industry, so ExxonMobil shouldn't face much political pushback anytime soon. Is the stock a buy? ExxonMobil stock offers a solid foundation for investment returns, with its dependable 3.9% dividend yield. From there, 5% to 6% annualized growth could deliver 9% to 10% total returns, on par with what the broader stock market averages in a typical year. That seems pretty achievable, given ExxonMobil's 2030 financial targets. Currently, analysts predict that the company will grow its earnings by an average of 9.6% annually over the long term. It's always tricky to gaze too far into the future with energy companies, so it's best to temper expectations. The good news is that if the energy sector does falter, ExxonMobil is arguably the safest oil and gas stock you could ask for. No, a $440 billion company isn't going to make you a millionaire overnight. Still, ExxonMobil is worth buying for anyone looking for stability, solid growth prospects, and a meaningful dividend from the jump. Should you invest $1,000 in ExxonMobil right now? Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor 's total average return is987% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
