Wood Mackenzie’s latest Horizons report highlights five key trends shaping the energy and resources sector in 2025. Charts showcase the rivalry between superpowers, Europe’s competitiveness challenges, US LNG dominance, rare earth elements in global trade, UK North Sea value destruction, Europe’s petrochemical decline, and AI-driven power demand growth.
The US has become a hydrocarbon superpower, leading in LNG exports and global oil production. By 2030, the US is projected to account for 30% of global LNG output and deliver one-fifth of the world’s oil volumes, surpassing competitors Saudi Arabia and Russia.
Rare earth elements have become central in global trade negotiations, with China holding a strategic advantage as the leading producer. Rare earth applications span renewable energy, weapons, electronics, and semiconductors, positioning them at the forefront of geopolitical competition.
The UK North Sea experiences significant value destruction due to fiscal and regulatory uncertainty, leading to a 40% discount in asset transactions compared to the OECD average. Frequent fiscal changes and regulatory uncertainty deter investor confidence, impacting the upstream sector.
Europe’s petrochemical industry faces declining capacity, contrasting with growth elsewhere, especially in China. Plant closures result in an annual US$4 billion loss in gross value added, with significant job losses. Europe’s transition to lower emissions leads to de-industrialization challenges.
The AI megatrend drives global power demand growth, with the US forecasted to see a 20% compound rate increase in AI-driven power demand by 2030. Rising gas prices and build costs impact power prices, influencing data center operating costs and global AI competitiveness.
Wood Mackenzie’s report offers insights into the energy landscape transformation, highlighting key trends that shape the industry’s future. From US LNG dominance to rare earth elements in global trade negotiations, the report provides a comprehensive overview of the challenges and opportunities in the energy and resources sector.
Read more at GlobeNewswire: Five mega-trends reshaping the global energy and resources