The energy sector is currently taking on an ever-growing significance. A more detailed look into the concept of energy is needed to better grasp its importance.
The world’s energy is divided into 2 major types: renewable (like nuclear, wind, and solar) and nonrenewable resources (namely coal, oil, or gases); in which the energy sector focuses on different stages of production, distribution, and sales. Certainly, the energy industry certainly makes up a part of the economy but people might be surprised by how big it is. The International Energy Agency (IEA) suggested that the global energy industry attracted 1.85 trillion of investment in 2018, and it is expected to keep increasing in the next 5-year-period.
By the end of 2021, the production of oil and gas is estimated to gain about 2.7 trillion of revenue, ranking the 8th world’s largest industry. However, it is the worldwide renewable energy sector that becomes the most significant and highest potential to develop. Data show a 6.1% of the compound annual growth rate (CAGR) for this sector from 2018 to 2025, in which solar energy accounts for the majority.
Since the onset of the Covid-19 pandemic, however, the industry has slightly declined in both 2 sub-sectors. In a study, the global energy demand was reported to drop by 5%, and that for oil and gas shrink by 9%. Yet, supposedly the energy sector will soon fall into a quick recovery after the pandemic. In the near future, again, there will be thousands of world summits and conferences about the future energy demand to be held on a regular basis, owing to the rise of energy translation and localization services.
Source: Futurelearn.com
