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The transformation of the energy sector is accelerating as a result of decarbonisation, electrification and geopolitical change.

In its latest report: “Conversation Starters: Five Energy Charts to Get You Talking“, Wood Mackenzie analysts present five key charts that shed new light on the dynamics of energy markets, from the evolution of major economies’ electricity systems to the rise of electromobility.

From energy markets in the US and China to the transformation of the North Sea, ambitions for CCS technology and the expansion of electric vehicles, these charts highlight key trends in the energy sector for 2025 and beyond,” said Malcolm Forbes-Cable, Vice President of Upstream Advisory and Emissions Management at Wood Mackenzie.

China’s transport revolution

China has consistently been at the forefront of the global energy transition. Wood Mackenzie forecasts that by 2028, half of the country’s electricity will come from low-carbon sources, including hydro, solar, wind, nuclear and energy storage. In addition, renewable energy capacity will surpass coal-fired generation by 2037.

China’s transport sector is also undergoing dynamic change. By 2034, electric vehicles will dominate the market, accounting for 66% of new passenger car sales. Overall, including hybrids, low-emission vehicles will account for 89% of new sales.

“Electric vehicles are going from strength to strength, with sales expected to grow by 8% per year until 2030. At the same time, sales of internal combustion vehicles will decline by 11% per year,” notes Forbes-Cable. Regardless of location, Chinese EVs are already changing the global market.

Source: Wood Mackenzie Lens

Source: Wood Mackenzie

US energy demand growth

After years of stagnation, electricity demand in the US is starting to grow, driven by the fourth industrial revolution and electrification. Key sectors driving energy consumption growth include data centres, low-carbon technology manufacturing and renewable infrastructure development.

Forbes-Cable highlights that the annual growth rate of electricity demand is expected to reach 1.9 per cent by 2034, underlining the necessity to modernise the power grid so that the US can compete with China’s growing power.

Source: Wood Mackenzie, Energy Information Administration

Ambitious plans for CCS technology

A comparison of carbon capture and storage (CCS) capacity with LNG production reveals the ambitious plans for the development of this technology. While direct comparisons between these sectors are not possible, their relative sizes underscore the growing significance of CCS in global emissions reduction strategies.

Forbes-Cable predicts that by 2050, even in a delayed transition scenario, CCS will be three times the size of LNG production, and in the baseline, this gap will be four times. This highlights the urgent need for rapid and substantial growth.

Source: Wood Mackenzie Lens

North Sea: between past and future

The North Sea region, formerly a key source of oil and gas, has become a pioneer in the offshore wind sector. Despite the increasing capacity of wind farms (from 36 GW today to a projected 240 GW in 2050), indicators show that they will not match the total energy produced by the region’s oil and gas sector for many decades yet.

‘Having spent many years working on rigs in the North Sea, I have always been curious to see how offshore wind energy would compare to that obtained from below the surface,’ Forbes-Cable concludes.

The Wood Mackenzie report provides valuable data and analysis that can provide a starting point for discussions on the future of global energy. In an era of dynamic change, these five key trends show a world where renewable energy, energy storage and new decarbonisation technologies play an increasingly important role.