To help you understand what is going on in the energy sector and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Wind Power
One beneficiary of the recent federal boost to domestic manufacturing: the wind power sector. The Inflation Reduction Act, passed last year, extends two key renewable energy tax credits through 2024, then replaces them with a slew of others, including the Advanced Manufacturing Production Credit.
Manufacturers have responded immediately to the new federal incentives, restarting idled plants and readying new investments. U.S. manufacturing capacity for wind turbine blades (which fell by 50% from 2020 to 2021, or 9 GW to 4.6 GW) was hit hard by the pandemic, as well as the expiration of key federal tax credits.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The U.S. wind power market is now expected to double in size by 2030. The country currently boasts more than 140 GW of total installed wind capacity. Wind is already the largest source of renewable electricity in the U.S.
Oil Production
The number of rigs drilling for oil and gas in the U.S. continues to decline. The current total: 675, down from 680 a week ago and 756 a year ago. The U.S. rig count has declined in 10 of the last 11 weeks.
The Permian Basin, America’s most productive oil-and-gas-producing region, has also seen the number of rigs operating there drop — to 337, from 342 last week and 350 a year ago. The trend reflects drillers’ ongoing focus on boosting shareholder returns instead of expanding output, as well as uncertainty about the economic outlook.
The industry remains much more cautious than before the pandemic, as evidenced by the U.S. rig count’s slow recovery over the last few years. For perspective, there were 954 rigs drilling for oil and gas in the U.S. at this point in 2019. That said, solid oil prices will prevent the rig count from falling too far and could spark a rebound later this year. West Texas Intermediate benchmark prices currently sit around $75 per barrel, enough for most drillers to turn a profit.
The U.S. is still on track to set a new annual oil production record in 2023. One forecast: 12.4 million barrels per day, just above 2019’s 12.3 million bpd.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
Kiplinger Special: The Long-Term Future of the U.S. EconomyThe Kiplinger Letter Kiplinger's report into what it will take the U.S. to maintain a healthy economic growth rate.
-
Chinese E-Tailers Are Surging in the U.S. Market: The Kiplinger LetterThe Kiplinger Letter Low costs and cheap shipping enable Temu and others to grab market share.
-
Why Your Electric Bill Will Keep ClimbingThe Kiplinger Letter There's no end in sight for energy rate hikes, so look for ways to curb your power use.
-
Future U.S. Economic Growth Hinges on ImmigrantsThe Kiplinger Letter With the native birthrate slipping, employers are increasingly relying on foreign-born workers to staff up.
-
Fed Rate Cuts Still on HoldThe Kiplinger Letter With inflation stubbornly elevated, the Federal Reserve will keep interest rates high for now.
-
A Spotlight on the Pacific States: The Kiplinger LetterThe Kiplinger Letter Most Pacific states are seeing good job growth in multiple sectors including tourism, hospitality, and construction.
-
The Robots Are Coming... But Not For a WhileThe Kiplinger Letter There’s excitement in the tech sector over the potential of humanoid robots, but widespread adoption is likely to be years away.
-
Farmers Face Another Tough Year As Costs Continue to Climb: The Kiplinger LetterThe Kiplinger Letter Farm income is expected to decline for a second year, while costs continue to up-end farm profitability.
