ENERGYINDUSTRYOUTLOOK20242|EnergyIndustryOutlook2024ExternalDocument©2024InfosysLimitedKnowledgeInstituteKnowledgeInstituteEnergyIndustryOutlook2024|3ExternalDocument©2024InfosysLimitedKnowledgeInstituteCONTENTSExecutivesummary4Stateoftheindustry6Short-termoutlook7Long-termoutlook10Potentialriskstogrowth12Emergingtrends14Balanceofgrowthandsustainability174|EnergyIndustryOutlook2024ExternalDocument©2024InfosysLimitedKnowledgeInstituteEXECUTIVESUMMARYTheenergyindustrymustbalancecompetingforcesasitworkstomeetgrowingdemandandmanagethetransitiontonetzeroemissions(Figure1).Globalenergydemandisprojectedtoreach740millionterajoulesby2040,a77%increasefrom2000levels.Inaddition,electricitydemandispredictedtogrowbetween3%and4%ayear,potentiallymorethandoublingfrom25,000terawattstodaytoarangeof52,000terawattsto71,000terawattsby2050.Industryforecastersgazingthroughagreenlensestimatenewinvestmentinpowergenerationtoreach$3trilliongloballyin2024,ledby$2trillionincleanenergy,whilefossilfuelisexpectedtodecline.Whilethedirectionmaybeaccurate,marketrealitieswillaffectthetimingandmagnitudeofthistransition.Longleadtimesforpermittingandconstructingnuclearandconventionalenergyplantslikehydroelectricfacilitiesarepushingcompaniestowardalternativessuchasnaturalgas-firedplantsthatcanbesetupmorerapidly,alongwithgreen,renewableenergy.Theenergyindustrymustbalancecompetingforcestomeetgrowingdemandandmanagethetransitiontonetzero.EnergyIndustryOutlook2024|5ExternalDocument©2024InfosysLimitedKnowledgeInstituteTheenergymixoftomorrowwilldifferfromwhatweseetoday,assustainablefuelswilladdresssectorsdifficulttoelectrifylikeshipping,aviation,andheavyindustries.Energystoragewillattractsignificantinvestmentsduetotheunpredictabilityofrenewableenergysources.Carboncaptureandstorage(CCS)willaddressemissionsfromfossilfuel-poweredplants.Beyondenergytransition,twoCEOprioritiesaretheuseofgenerativeAItocreateanAI-enabledorganizationandfurtheradoptionofdigitaltechnologiestostaycompetitiveandprofitable.OurforecastforgenerativeAIspendingbyenergy,mining,andutilitiesisforittogrowfrom$571millionin2023tomorethan$1billionin2024.GenerativeAIwillbeusedacrosstheenergyvaluechain,fromupstreamsourcesofmaterialstopowergeneration.AIwillbeemployedtoextractvaluefromexistingcorebusinesses,pivottowardthecreationofnewrevenuestreams,andacceleratethetimetomarketfornewofferings.Figure1.ThedrivingforcesbehinddemandforoilandgasOPECprediction:from100millionbpdin2022to116bpdby2045•EVs:6millionbpddropby2030•Windenergy•Solarandnaturalgas:1millionbpddropby2030•Alternate,biofuels:60%ofavoidedoildemandby2028•DisruptionslikeCovid-19•Energyefciency•Populationgrowth•Urbanization•TravelSource:Infosys(bpd-barrelsperday)AIwillenhancetheefficiency,safety,andreliabilityoftheenergysector.6|EnergyIndustryOutlook2024ExternalDocument©2024InfosysLimitedKnowledgeInstituteSTATEOFTHEINDUSTRYFossilfuelsprovidednearly80%oftheworld’senergydemandin2023(Figure2).TheInternationalEnergyAgency(IEA)hasforecastthatglobaldemandforoilandgaswillpeakby2030.However,notallexpertsagreewiththisprojection.Inits2023WorldOilOutlookpublication,OPECsaiditexpectedglobaldemandtoreach116millionbarrelsperday(bpd)by2045,upfromapproximately100millionbpdin2022.Globaldisruptions,suchasRussia’swaragainstUkraine,havepushedtheIEA’speakdemandforecastdateforwardandforcedenergyleaderstorecon...