Enverus Press Release - Enverus releases 2025 Global Energy Outlook

Enverus releases 2025 Global Energy Outlook

AUSTIN, Texas (Jan. 21, 2025) — Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing its 2025 Global Energy Outlook, an e-book focused on pivotal North American and international energy landscape trends and opportunities expected this year.  

Enverus Intelligence® Research (EIR) experts believe the intersection of power and gas will drive the North American energy narrative in 2025, pushing oil production to the back seat. Power is not only influencing the natural gas sector but is permeating every aspect of the energy landscape. The race for artificial intelligence dominance has escalated into a global security issue, raising the stakes for all market participants as they balance volatile commodity prices, possible trade wars, uncertain demand, environmental pressure and investors’ demands for capital discipline.

“This year, inflation seems to have reached a ‘soft landing,’ creating an environment of easing interest rates. At the same time, the rapid acceleration of AI is driving unprecedented pressure on power demand. As we look ahead, the incoming U.S. president is poised to reshape energy policy, while ongoing global conflicts continue to inject uncertainty into the energy market,” said Enverus CEO Manuj Nikhanj upon the release of this year’s outlook, an e-book created to guide energy professionals and investors through both the traditional oil and gas sectors and the accelerating energy transition.

Key issues and themes to watch in 2025:

  • U.S. Data Center Boom, LNG Growth and Regulatory Changes to Reshape Energy Markets: Data centers are driving U.S. load growth, while rising LNG exports are projected to lift Henry Hub prices to $4/MMBtu, spurring increased gas rig activity. Globally, LNG supply growth will test market absorption, while President-elect Trump’s policies may threaten critical tax credits for hydrogen and geothermal technologies.
  • Momentum Builds for Key Transition Technologies: Battery storage will continue to reshape U.S. power markets while renewable natural gas, sustainable aviation fuels, and U.S. CCUS projects gain traction. In the Asia-Pacific region, energy security and climate goals will drive new investments.
  • Cautious Resource Expansion Amid Oil Price Volatility: Brent is forecasted to average $80/bbl, with attention on OPEC+ and China. Global exploration remains dominated by supermajors and NOCs, while U.S. resource expansion focuses on the northern Delaware Basin. Smaller, less economic acquisitions are expected in the U.S. and Argentina’s shale growth will begin to turn heads.
  • Upstream Industry Focuses on Efficiency: U.S. well costs are stabilizing as efficiency gains counter tariff pressures, with 4-mile laterals expanding. Permian productivity holds steady, while Haynesville shows improvement.
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About Enverus
Enverus is the most trusted energy-dedicated SaaS company, with a platform built to maximize value from generative AI, offering anytime, anywhere access to analytics and insights. These include benchmark cost and revenue data sourced from more than 95% of U.S. energy producers and more than 40,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing. Our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

Enverus Press Release - Utica oil: America’s modest middleweight contender

U.S. day rates extend slump, but most drillers foresee busier H1

U.S. drilling day rates took a tumble in 2024, finishing the year lower than they began for the first time since the COVID-19 pandemic. The Enverus Day Rate Survey’s U.S. composite day rate declined for the 11th consecutive month to $22,220 in December, down $229 (1.02%) from November and $1,457 (6.19%) from December 2023. Most surveyed drillers are upbeat for 1H25, however, predicting stable leading-edge day rates under a new federal administration likely to ease drilling restrictions.

“We’re getting more phone calls to put more rigs into service than we were three months ago,” a Rockies driller told the survey team. More than 70% of survey participants predicted work volumes will grow during the next six months, with almost 60% reporting increasing bid inquiries.

Others are tempering their enthusiasm. Client feedback had one Gulf Coast driller telling the survey team, “It won’t be substantially better, but better.” Over the next six months, 65% of survey respondents expect no pricing changes. The remaining 35% were mixed on their outlook with some predicting increases and some decreases.

Some drillers told the survey team the price of WTI still needed to gain some altitude before a big push in new drilling programs can take place. The current futures curve has WTI in the low $70s through Q3, then dipping into the high $60s for Q4.

Enverus Intelligence® Research (EIR) is also skeptical of a strong rebound in U.S. activity, predicting in its 2025 Global Energy Outlook that the country’s crude production will only rise 120,000 bbl/d to a 2025 exit level of 13.5 MMbbl/d. The Permian is expected to add 230,000 bbl/d of production, offsetting declines elsewhere in the Lower 48 states. Haynesville production should rise in 2025 as Louisiana benefits from stronger LNG demand, EIR said.

Any progress would be welcomed after 2024, which struggled against numerous bearish factors. The Henry Hub gas spot price averaged $2.21/MMBtu last year, the lowest average annual price in inflation-adjusted dollars ever reported, according to the EIA. Drillers interviewed for the Enverus Day Rate Survey regularly cited Biden administration drilling restrictions throughout the year as causing low activity. In addition, the E&P landscape in the Permian Basin was transformed by historic acquisitions in late 2023 and early 2024.

The rig utilization rate ended December at 74.01%, the lowest of the year. “There is no wait time for just any rig, but a short wait time to engage a specific rig,” an Ark-La-Tex driller told the survey team.

All seven regions in the survey ended 2024 with sequential declines, some with a December thud. Three regions saw their composite drilling day rates fall $345 or more in the month, led by South Texas and its $475 (2.04%) drop to $22,877.

The Permian Basin had a brutal 2H24, falling $1,142, including $378 in December. The region was also the year’s biggest loser, falling $2,221—a 9.35% decline, almost a full percentage point more than any other region. “There is zero backlog and rigs are readily available,” one Permian driller told the survey team.

Permian day rates had a brutal 2H24, falling $1,142 as rigs moved there from gassy basins.

Other regions moved rigs to the oily Permian amid 2024’s natural gas doldrums, allowing them to rebalance at West Texas’ expense. While both the Gulf Coast and Ark-La-Tex lost more than the Permian in 1H24, they lost less than it during 2H24. The Gulf Coast roughly halved its decline from $1,373 (5.66%) in 1H24 to $650 (2.85%) in 2H24, while the Ark-La-Tex went from a $1,200 decline (4.90%) to an $855 drop (3.67%).

The pressures drillers faced last year are illustrated by Independence Contract Drilling, which filed for bankruptcy in December. ICD averaged 19.4 active rigs in 1H23, with nearly half of the contracted fleet in the Haynesville. As natural gas prices cratered, ICD moved rigs to the Permian, only to find underwhelming activity amid “customer consolidation, moderating and fluctuating oil prices, increased associated-gas takeaway constraints, continued fiscal discipline by E&P customers and increasing operating efficiencies,” CEO Anthony Gallegos said in the bankruptcy petition.

Consolidation left drillers sparring for fewer clients. The 15 largest E&P customers represented 62% of the industry’s operating rig count this November, compared with 43% at the start of 2023, Gallegos said. In that same span, the five largest contract drillers increased their share of the Top 15’s rig count to 84% from 80%, spurring “more intense” competition between ICD and other smaller contractors, he said. Three ICD rigs received notice of terminations in September after their clients’ merger closed, and ICD predicted it would average just 10.7 active rigs in 4Q24.

There were some silver linings in 2024 day rates’ dark cloud. For one, the ongoing current slide of $1,685 in 11 months has not been as relentless as the COVID-19 collapse when the U.S. composite fell $3,641 in 14 months. The U.S. composite rate hit bottom in March 2021 at $14,380—$7,840 below the December 2024 mark. During the pandemic drop, every region’s composite fell every month for 13 straight months; this go-round, every region has posted one or two sequential increases.

The best day rate performers in 2024 were Appalachia and the Mid-Continent. Appalachia’s composite rate fell just $279 (1.27%) to end the year at $21,609. The Mid-Con dipped $827 (3.83%) on the year to $20,754, and actually rose $12 in 4Q24, thanks to a $54 increase in November and miniscule declines the other two months.

To see the full results of the Enverus Day Rate Survey for July, check out the latest issue of Oilfield Pulse.

About Enverus Intelligence® Publications 

Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector. 

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Haynesville gas producers need stronger prices to justify growth

Aethon Energy Management has little incentive to increase production from the Haynesville until gas prices increase, president Gordon Huddleston said at the Jan. 7 Goldman Sachs Energy, Cleantech and Utilities Conference. Speaking on a natural gas market panel that also included Expand Energy president and CEO Nick Dell’Osso and Tourmaline Oil President and CEO Michael Rose, Huddleston said bringing significant development online will probably start with $5.00/MMBtu prices.

Aethon, backed by the Ontario Teachers’ Pension Plan and RedBird Capital Partners, holds around 420,000 net acres on the Louisiana side of the Haynesville, according to its website, and around 1,850 gross operated wells as of mid-2024, according to its latest Operator Profile from Enverus Intelligence® Research (EIR). The company averaged 2.5 Bcf/d in 2023, although it is reportedly producing around 3 Bcf/d now.

In November, Reuters reported the company was exploring options for its upstream and midstream assets, including a potential sale or IPO at a $10 billion valuation. Sources familiar with the matter said the company was working with Goldman Sachs and Citigroup to evaluate options, adding that a transaction could occur in 2025.

Speaking on the same panel, Dell’Osso said marginal production in the Haynesville begins to break even around $3.50/MMBtu and prices would need to climb materially higher to justify new volumes. Expand, formed through the October merger of Chesapeake Energy and Southwestern Energy, said in its 3Q24 earnings presentation it was forecasting 4Q24 production of 2.4 Bcfe/d from the play, down from nearly 3 Bcf/d of pro forma output in 1Q24.

As of the end of 3Q24, Expand had 21 wells it had deferred turning in line and 29 drilled uncompleted wells in the Haynesville, and was running eight rigs and three frac crews in 4Q24. Dell’Osso said Expand was aiming to level its overall production, at least partially, at around 7 Bcfe/d in 2025—compared to forecast volumes of about 6.4 Bcfe/d in 4Q24—by bringing curtailed production back onstream and utilizing deferred capacity.

The U.S. is due to see higher gas demand in the coming years, through both new LNG export projects coming online and higher gas-fired electricity generation, driven in large part by demand from new data centers. However, EIR said in a November report it expects the global LNG market to be oversupplied by about 1 Bcf/d in 2025-2027 before becoming significantly undersupplied from 2028 through 2035. In a separate November report, EIR said the global gas market risks being oversupplied by 2-4 Bcf/d through 2027.

Aethon delivered the four best test rates in the Haynesville in Enverus Foundations® data reported in the latest Upstream Pulse.

About Enverus Intelligence Publications
Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector.

Learn More
Download our free e-book to explore key insights and strategies for navigating volatility in U.S. power trading markets.

Stuck in the Queue | Suspensions Are Higher Than You Think

Interconnection queue durations across independent system operators (ISOs) have lengthened and the proportion of projects successfully reaching completion is shrinking. To explore this in detail, Enverus Intelligence® Research captures the average duration of each phase in a project’s lifecycle, the delays encountered at each stage and suspension trends across the project lifecycle.

Variations in the probability of project completion across ISOs from 2022-24 are depicted in Figure 1. In ERCOT, CAISO and MISO, suspensions are concentrated earlier in the project lifecycle, leading to a linear increase in completion probability as projects near construction. In contrast, NYISO, SPP, PJM and ISONE have higher suspension rates later in the project lifecycle, with interconnection agreement suspension rates ranging from 46% to 79%, compared to around 20% in ERCOT, CAISO and MISO. Projects in these markets show minimal improvement in completion probability until reaching construction. Notably, projects in CAISO and ERCOT in the System Impact Study phase are over twice as likely to reach operation as those with an interconnection agreement in ISONE.

Highlights:

Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.

Enverus Press Release - RatedPower’s custom Layout Editor ushers in new era of smart energy flow

RatedPower’s custom Layout Editor ushers in new era of smart energy flow

MADRID, Spain (Jan. 15, 2025) — RatedPower, a part of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing its new Layout Editor, a tool that empowers users to design, customize and optimize solar layouts — all within one integrated platform. Users now have access to ultimate flexibility for designing and customizing layout placements, like defining roads, customizing parcels and moving power stations, to meet project targets while effortlessly generating optimal designs.

“Users are at the heart of our product development. We’ve created RatedPower for professionals looking to optimize their solar and Battery Energy Storage System (BESS) projects quickly and reliably. With Layout Editor, we’ve taken our software to the next level, empowering users with greater control and customization options to achieve superior results and gain more competitiveness in the market,” said Juan Romero González, co-founder of RatedPower.

“As part of Enverus, RatedPower has developed an increasingly integrated software that revolutionizes photovoltaic and BESS project design. With unmatched flexibility and the ability to cut design time by up to 90%, we are transforming how users approach solar and energy storage projects. Layout Editor is the latest step in our journey of innovation, and we’ll continue to work alongside our customers to solve the most complex challenges in the market,” said Bernadette Johnson, general manager of Power and Renewables at Enverus.

RatedPower’s Layout Editor addresses key challenges faced by solar professionals every day. The ability to deliver polished designs efficiently is a turning point in a fast-paced market. With access to an intuitive interface users have access to seamless customization, ensuring each layout aligns with the unique needs and goals of any project.

Key features of RatedPower’s new Layout Editor:

  • Unmatched flexibility and control: Layout Editor empowers users to fully customize layouts, aligning structures with elements or parcel borders effortlessly. With just a few clicks, users can add or remove structures, exclude non-optimal positions and create cleaner, more precise designs tailored to their project’s unique needs.
  • Smarter layout design with real-time data: RatedPower’s tool simplifies layout optimization by allowing users to customize structure and power station locations, adjust roads and fine-tune medium voltage block connections. Real-time data helps maximize capacity, minimize unutilized spaces and streamline the creation of efficient layouts in minutes.
  • Enhanced efficiency through accurate calculations: Maximize PV system efficiency by optimizing electrical routes based on power station placement. The tool enables precise positioning of power stations through alignment and rotation, providing users with the ability to compare customized designs, meet project targets and share detailed technical documentation with stakeholders easily.

Additional Resources:

Register and watch a 45-minute, recorded webinar to discover how RatedPower’s innovative features can enhance workflow, enhance project efficiency and unlock new revenue opportunities.

RatedPower is inviting members of the media to PULSE, an international gathering of professionals across the whole renewable energy value chain — from world-class utilities to developers, engineering, procurement, construction contractors and asset management. This year’s conference will be held April 3 and 4, 2025, in Espacio Coam, Madrid. Members of the media with questions or looking to obtain a media registration code for PULSE should email [email protected].

About Enverus
Enverus is the most trusted energy-dedicated SaaS company, with a platform built to maximize value from generative AI, offering anytime, anywhere access to analytics and insights. These include benchmark cost and revenue data sourced from more than 95% of U.S. energy producers and more than 40,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing. Our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About RatedPower
RatedPower helps companies discover the smartest ways to design and engineer utility-scale solar PV plants and maximize their potential through their software to automate and optimize the study, analysis, design and engineering of photovoltaic plants and their electrical infrastructure in all its stages. RatedPower has helped design more than 55 TW in more than 160 countries. Bringing value to developers, IPPs, contractors, investors and manufacturers, helping them make better decisions, democratizing engineering knowledge and boosting the deployment of solar plants worldwide. Learn more at RatedPower.com.

Enverus Press Release - Blue hydrogen: Greening the bottom line

Finalizing the 45V PTC | Too Little, Too Late

The finalized 45V clean hydrogen production tax credit provides clarity and incremental flexibility for electrolytic (green) and methane-derived (blue) hydrogen developers but may still fall short of revitalizing the industry. The latest rules allow electrolytic producers to utilize retiring nuclear power, although data centers and tech buyers are likely to outprice this option, in our opinion. Delaying the hourly electricity matching requirements to 2030 reduces the green hydrogen LCOH by $0.33/kg H2, lowering it to $3.57/kg H2 assuming operations begin in 2025 and when compared to lifetime hourly matching. These revised costs are still more than double the gray hydrogen benchmark and do not directly account for additional costs or bottlenecks in the interconnection process.

Similarly, the new rules suggest greater 45V eligibility for methane-derived hydrogen but fail to finalize critical details ahead of the incoming Trump administration. Project-specific methane leakage rates could enable low-carbon intensity (CI) gas producers to qualify for the PTC, although implementation timelines were not established. Additional methane sources such as coal mine methane, animal manure RNG and wastewater RNG were included in Friday’s update as viable hydrogen feedstocks without reference to CI values, which makes it challenging to determine project economics. Finally, blending feedstocks for hydrogen production is not permitted, preventing cost-effective combinations like manure RNG with fossil gas to achieve lower CIs at competitive prices.

About Enverus Intelligence®| Research

Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.

Enverus releases Top 50 Public E&P Operators of 2024

Enverus releases Top 50 Public E&P Operators of 2024

AUSTIN, Texas (Jan. 8, 2025) — Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released its list of the most prolific 50 public oil and gas operators in the U.S. based on gross operated production last year.

“Last year, the top 10 public operators represented 56% of production out of the Top 50 on a boe/d basis. Due to mergers, we see that same figure jump to 62% of production in part due to Pioneer Natural Resources joining ExxonMobil, and Chesapeake and Southwestern rolling together into the newly formed Expand Energy,” said Manuj Nikhanj, CEO of Enverus.

“It’s clear that the Permian is still the king, and the most active region operated by the Top 50 operators. Seven of the top 10 have the Permian as their most active region. Volume-wise, the Permian also dominates the rankings – 81% of oil production and 40% of gas production from the Top 50 names comes from this one basin,” said Nikhanj.

“A snapshot of rig counts provide some color on operator sentiment, too. The Top 50 names were running a total of 298 rigs at the time of list compilation, compared to 322 from the prior year at a similar point in time. Notwithstanding the pull back, the approximately 10% increase in rig efficiency over this period is driving production growth, even at lower activity levels,” Nikhanj said.

“We hear directly from customers and investors that lists like these, along with Enverus’ services and software, are very valuable in a variety of ways,” Nikhanj said.

“Having all the data at my fingertips and being able to summarize it quickly is crucial. Enverus allows us to develop our own dashboards for data analytics, and the reservoir characterization data set is particularly helpful, allowing us to incorporate geology and gain confidence in our evaluations,” said Malcolm Kintzing, business development manager at Henry Resources.

This Top Public Operators list, compiled utilizing Enverus Foundations® data, factors in last year’s mergers and features well breakdown by oil, liquids and gas production, total company well counts and recent rig count changes. The list was featured in Upstream Pulse from Enverus, a bi-monthly report that covers exploration and production, deals and capital markets for the North American and global oil and gas sector.

Request the Full List

Methodology: Production and ranking for both 1H24 and 2023 include all gross operated production from assets and companies acquired up to and including Oct. 1, 2024, as accounted for in Enverus’ platform; as a result, all changes in rankings are based on organic production changes on the post-transacted assets. Oil production includes condensate. Primary Enverus Region refers to the region with the highest contribution to production and ranking in this table, not necessarily for the company as a whole. Rig numbers are as of Nov. 19, 2024. Numbers are subject to change because of lags in reporting.

About Enverus
Enverus is the most trusted energy-dedicated SaaS company, with a platform built to maximize value from generative AI, offering anytime, anywhere access to analytics and insights. These include benchmark cost and revenue data sourced from more than 95% of U.S. energy producers and more than 40,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing. Our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

power-grid-congestion-3

SPP (Southwest Power Pool) Markets+ in 2027: A New Chapter for Western Energy Markets

As 2025 begins, power markets face an urgent need to adapt to the rapid integration of renewable energy, AI-driven data center load growth and infrastructure expansion—each posing significant challenges to grid stability and reliability. In the Western U.S., the Southwest Power Pool’s (SPP) Markets+ initiative represents a major step toward ensuring grid reliability by introducing organized energy markets to a region traditionally reliant on bilateral trading.

Markets+ is not a full regional transmission organization (RTO), it is a collective of utilities, generators and municipalities with the goal of providing many similar benefits, except with greater flexibility. It aims to improve regional coordination, grid stability and market efficiency, though its success will depend on stakeholder engagement and collaboration.

Markets+ Development Timeline

SPP launched Markets+ development in late 2021, progressing through several key phases:

  • 2022: Initial feasibility assessments and stakeholder engagement began.
  • 2023: Detailed market design proposals were developed with industry input.
  • 2024-2026: Regulatory filings, approval processes and system build-out advanced.
  • 2027: Initial market operations are expected to commence, though participation may scale up gradually.

What Markets+ Brings to the Grid

Markets+ extends SPP’s market expertise to a broader geographic area by offering:

  • Day-ahead and real-time markets: Enhancing resource dispatch efficiency.
  • Energy imbalance services : Managing differences between scheduled and actual energy use.
  • Transmission utilization: Improving the use of existing infrastructure.
  • Flexible participation: Allowing utilities to engage at their desired commitment level.

This approach delivers economic and operational benefits while respecting market participants’ unique requirements.

Renewable Integration in Focus

Markets+ supports renewable energy integration through:

  • Reducing curtailment: Coordinating resources to maximize renewable energy use.
  • Balancing supply and demand: Managing renewable intermittency while maintaining grid reliability.
  • Supporting decarbonization goals: Helping stakeholders meet sustainability targets.

However, full renewable integration depends on widespread participation and resolving transmission bottlenecks.

Transmission: A Critical Component

Transmission infrastructure remains a challenge for the Western Interconnection. Markets+ addresses this through:

  • Optimized use of existing capacity: Reducing congestion and enhancing reliability.
  • Informed expansion planning: Using market signals to guide new project priorities.
  • Current infrastructure limits: Acknowledging that new transmission builds remain essential for long-term success.

Markets+ Stakeholders: Opportunities and Challenges

Markets+ offers opportunities for various stakeholders, including:

  • Utilities and public power: Reducing costs through market efficiencies.
  • Renewable developers: Enhancing integration and dispatch of renewable energy.
  • Power traders: Increasing market transparency and liquidity.

However, benefits will vary based on geographic location, resource mix and participation levels. For some, Markets+ may be a steppingstone rather than a permanent market solution.

Markets+ in 2027: A Developing Framework

While Markets+ is expected to bring measurable benefits by 2027, its long-term success depends on:

  • Participation levels: Achieving broad engagement for scale and efficiency.
  • Regulatory coordination: Navigating complex multi-state oversight.
  • Infrastructure investment: Aligning market operations with transmission planning.

Looking Ahead

Markets+ is a crucial development in the Western Interconnection’s evolving energy landscape. By fostering greater market coordination, improving renewable integration and optimizing transmission use, it offers a promising framework for future growth and stability. However, realizing its full potential will require continuous investment, stakeholder collaboration and regulatory alignment.

As the energy industry looks to 2027 and beyond, Markets+ could redefine how power is traded, delivered and managed across the West—setting the stage for a more efficient, reliable and sustainable energy future.

About Enverus Power and Renewables

With more than 25 years of expertise in power markets, 7,500 users leverage Enverus solutions to develop projects, manage the grid, trade power and facilitate asset transactions. Enverus team of 1,700 professionals includes 300+ power and renewables experts—industry veterans and PhDs—ensuring our data and insights meet the evolving challenges of the power industry.

Enverus customers, on average, achieve 20% higher trading profits and trade four times more CRR megawatts than non-Enverus users. With a 25-year track record of forecasting load more accurately than ISOs, Enverus is uniquely positioned to meet your needs across the entire power market.

affordable energy

Power and ET M&A Review | Deal Activity Tapers as Policy Uncertainty Escalates

Mergers and acquisitions in the energy and power sector reached $129 billion in the first three quarters of this year, up from $120 billion in the same period last year, despite a slowdown in the third quarter. Valuations are stabilizing as clean energy technologies mature, with a focus on operational efficiency and predictable cash flows. The Inflation Reduction Act continues to drive transactions, particularly through tax credits for carbon capture and clean fuels, though regulatory uncertainty is prompting companies to seek broader geopolitical exposure.

Energy and power M&A activity focused on electron-based deals, with a slight decline in overall deal value to $42 billion in 3Q24 from $50 billion in 2Q24. Year-to-date deal value stands at $146 billion, driven by generation and distribution assets. Valuations for clean energy have compressed, Enverus Intelligence® Research (EIR) forecasts this trend to continue as technologies mature and are valued for established cashflows as opposed to bets on novel technologies. Interest in dispatchable gas-fired generation and alternative fuels is rising.

Highlights

  • Stuck in the Queue – Suspensions Are Higher Than You Think – About 90% of renewable generation projects do not progress beyond the interconnection queue. EIR analyze at what stages these projects drop out and how long it takes successful ones to move through the study phases and begin construction.
  • Power and ET M&A Review – Deal Activity Tempers as Policy Uncertainty Mounts – This energy transition quarterly M&A review utilizes EIR’s energy transition M&A platform, which has captured more than 8,000 deals across 100 countries spanning power (generation, distribution, storage and integrated assets) plus alternative fuels, CCUS, equipment manufacturing, EVs and mining of energy transition metals.
  • 2025 Global Energy Outlook – Enverus Intelligence® Research’s 2025 outlook for North American oil and gas markets, the energy transition space and international E&P activity.

Enverus Intelligence® Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. See additional disclosures here.

Enverus Press Release - Enverus Integrates With Fendahl to Enhance Energy Trading and Risk Management Solutions

Energy Transition Outlook | Industry Transformations in 2025

To mark the close of 2024, Enverus Intelligence Research® created a roadmap to the 2025 energy transition landscape, covering power, subsurface, low-carbon fuels and energy transition investment.

As the industry continues to evolve, we find these key themes emerging in 2025:

  • EV battery costs will fall below the $100/MWh cost parity milestone. Direct air capture (DAC) is approaching the peak of inflated expectations with significant challenges ahead, while green hydrogen and offshore wind will lag expectations. Small modular reactors require substantial regulatory reform to reach viability.
  • President-elect Donald Trump’s proposed tariffs would drive up domestic renewable equipment prices. Tax credits for blue hydrogen, EOR, and solar and wind projects are least at risk of elimination, while subsidies for green hydrogen and geothermal are the most exposed.
  • Factors like project economics, available transmission capacity and offtake agreements will be crucial in defining project success. As the Class VI permit backlog clears, we expect a record number of Class VI permit approvals in 2025.
  • Decarbonization targets will continue to drive demand for low-carbon products. Select voluntary markets are expected to grow despite lower modeled returns. Sustainable aviation fuel (SAF) is poised for growth, with a quadrupling in North American capacity from 2024-2025.
  • Rising battery adoption is reshaping markets, driving the energy transition and challenging the profitability of natural gas. As capacity outpaces ancillary market eligibility, operators will shift toward arbitrage-driven models, competing with dispatchable capacity.
  • Load is projected to grow 1.2% Y/Y and 38% by 2050, driven by artificial intelligence adoption and broader energy transition and electrification trends. Motivated by Big Tech’s willingness to pay, nuclear, geothermal and natural gas with CCS will increasingly compete for airtime.

Highlights

  • Power and ET M&A Review – Deal Activity Tempers as Policy Uncertainty Mounts – The surge in AI technology is driving rapid growth in data center development. Successful siting of a data center depends on energy availability, site quality and energy cost. In this report, Enverus Intelligence Research provides a workflow based on critical factors affecting these key pillars, leveraging Enverus PRISM® P&R suite data and analytics.
  • 2025 Global Energy Outlook – Demand for computing power coupled with the surge of AI is prompting technology giants to pursue reliable, low-carbon power sources for data centers, fueling a resurgence in interest in nuclear power. EIR evaluates various IPP’s existing nuclear energy portfolios and their opportunities for large-scale deployments.
  • Tracking the Energy Transition Market – Nuclear, IPPs Surge; Solar Installers Struggle Amid Policy Shifts – The 3Q24 edition of the ETR team’s equity tracking report provides coverage across various energy transition sectors as well as integrated traditional energy businesses.

Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. See additional disclosures here.

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