Key Energy Sector Highlights of 2024: U.S. Oil, AI, EV Surge, and More

In the wake of the COVID-19 recession, the energy sector has been on a remarkable journey of recovery and growth. However, 2024 marked a slowdown, with the sector underperforming the S&P 500, despite maintaining the highest growth rate since April 2020. This year, a steady pace and minor fluctuations characterized the energy market.

U.S. Oil Production Surges to New Heights

The United States continued to break boundaries in oil production in 2024, achieving another milestone by beating its 2023 record. The final figures, expected in January, suggest an increase of nearly 3%, reinforcing the U.S.'s position as a global leader in energy production. This growth is supported by technological innovations and strategic infrastructural developments. Read more on the U.S. energy dominance here.

Climate Challenges Amid Record Emissions

2024 stood out as the hottest year on record, with global temperatures soaring 1.54°C above pre-industrial levels, leading to severe environmental and climate issues. Regions like Spain bore the brunt of this heat, experiencing devastating heatwaves that resulted in over 8,000 fatalities and significantly impacting agriculture, particularly olive oil production. Explore more about the climatic impact here.

AI's Expanding Role in Energy

Artificial Intelligence took a firmer foothold in the energy sector throughout 2024, increasing energy demands from data centers while simultaneously enhancing grid efficiency. AI is pivotal for optimizing energy distribution and improving renewable energy systems. The U.S. Department of Energy is prioritizing AI to bolster energy infrastructure resilience. Learn more about AI's influence in energy here.

Electric Vehicles Continue to Accelerate

The global market for electric vehicles (EVs) continued to expand in 2024, achieving a growth of 32% over the previous year. China remained at the forefront, leading the surge in EV sales. In the U.S., the market share for hybrid and electric vehicles rose from 17.8% to 18.7% within the first half of the year, signaling a shift towards more sustainable transportation methods. For more details, visit here.

California's Ambitious Energy Regulations

California pushed forward with its energy agenda by amending its Renewable Portfolio Standard (RPS) to mandate 60% renewable electricity by 2030, progressing towards a target of 100% clean energy by 2045. Governor Gavin Newsom's new laws also aimed to control gasoline prices by regulating refiners’ profits and gasoline inventories. To find out more about California’s energy policies, click here.