Alternatives
shutterstock_2364977019.jpg

July 1, 2014

Third Quarter 2014 Energy Industry

Sector Focus: Alternative Energy

Segment Focus

Alternative Energy

2014 Third Quarter

In 2013, energy from renewable sources represented just under 10% of U.S. energy consumption.  While overall energy consumption has been relatively flat over the past ten years, renewable energy consumption has risen 56.2% since 2003.  Biomass and hydroelectric currently represent the two largest sources of renewable energy, though wind and solar power are rapidly growing.1

Growth in renewable energy production and consumption has been driven by the following factors:

  • Federal/state tax credits, grants, and other incentives
  • State renewable portfolio standards (RPS), which mandate minimum thresholds for electricity generation from renewable sources
  • Increased consumer sensitivity regarding environmental issues, specifically greenhouse gas emissions
  • Declining costs

Going forward, the U.S. Energy Information Administration (“EIA”) expects the share of primary energy consumption from renewable sources to increase to 12% by 2040 under the “Reference Case.”2 The EIA cautions that projections regarding renewable energy “are sensitive to assumptions about government policies and external market factors.  Key uncertainties affecting projected growth include expiration of policies that affect financial incentives for deployment or operation of particular technologies, the costs and performance of the technologies, the costs of competing generation sources, and macroeconomic conditions that affect growth ….”3  Under alternative scenarios, including renewable technology breakthroughs, continuation of tax credits or incentives currently set to expire, and/or carbon taxation, the share of energy sourced from renewable resources would be higher.

Download the full newsletter

Download
Download the newsletter

Continue Reading

Permian Basin M&A Update: 12 Months Ended July 30, 2026
Permian Basin M&A Update: 12 Months Ended July 30, 2026
The Permian Basin M&A market has entered a new phase characterized by targeted, strategic acquisitions rather than broad industry consolidation. Buyers remain focused on high-quality assets that enhance operational efficiency, extend drilling inventory, and generate durable long-term value.
Federal Lease Sales and the Continuing Premium for Core Acreage
Federal Lease Sales and the Continuing Premium for Core Acreage
Record-setting federal oil and gas lease sales in 2026 underscore the premium investors place on scarce, high-quality core acreage with strategic development potential. The results illustrate why lease sale pricing must be evaluated alongside broader valuation metrics when assessing upstream assets.
The Pendulum Is Swinging: Reserve Life Matters Again
The Pendulum Is Swinging: Reserve Life Matters Again
Reserve life and inventory quality are becoming increasingly important valuation drivers as the shale industry matures and premium drilling locations become scarcer. Investors are placing greater emphasis on the sustainability and duration of future cash flows, rewarding companies with long-term, high-quality development opportunities.

Cart

Your cart is empty