US increases wind power, achieves record oil production ANBLE Economic Forecasts
US increases wind power, achieves record oil production ANBLE Economic Forecasts
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One of the sectors benefiting from recent federal support is wind power. The Inflation Reduction Act, passed last year, has extended two crucial renewable energy tax credits through 2024. These tax credits are then replaced by a range of others, including the Advanced Manufacturing Production Credit. As a result, manufacturers have taken immediate action to capitalize on these incentives. They have restarted idled plants and made preparations for new investments.
The wind power market in the United States is expected to double in size by 2030. Currently, the country boasts over 140 GW of total installed wind capacity, making wind the largest source of renewable electricity. Unfortunately, the pandemic and the expiration of key federal tax credits had caused a significant decline in U.S. manufacturing capacity for wind turbine blades. However, with the new incentives, the sector is set for a resurgence.
In contrast to the growth in wind power, the number of rigs drilling for oil and gas in the U.S. continues to decline. Presently, there are 675 rigs, down from 680 a week ago and 756 a year ago. This decrease in the rig count can be observed in the Permian Basin, which is the country’s most productive region for oil and gas. The number of operating rigs in the Permian Basin has dropped to 337, reflecting the industry’s focus on maximizing shareholder returns rather than expanding output.
This cautious approach of the industry, even before the pandemic, is evident in the slow recovery of the U.S. rig count in recent years. For comparison, there were 954 rigs drilling for oil and gas at this point in 2019. Nevertheless, the solid oil prices currently around $75 per barrel prevent the rig count from falling too far. In fact, these prices could even trigger a rebound later this year.
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Despite the decline in rig count, the United States is still on track to set a new annual oil production record in 2023. According to one forecast, the country is expected to produce 12.4 million barrels per day, slightly surpassing 2019’s record of 12.3 million bpd. These forecasts and more can be found in The ANBLE Letter, a weekly publication that has been providing concise forecasts on business and economic trends since 1923. It is designed to help investors and individuals make informed decisions about their money and investments.
If you’re interested in green energy and want to explore investment opportunities, our related content offers valuable insights. We have curated a list of the 9 Best Green Energy Stocks to Buy Now, as well as identified 3 Wind Stocks with Global Growth potential. For those who are considering oil investments, we also present the Best Oil Stocks to Buy Now, recommended by industry experts. Additionally, we have compiled a list of the 9 Best Utility Stocks to Buy Now for those interested in the utilities sector.
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