2026 Predictions Energy Forecast What S Ahead Next Year

Bonisiwe Shabane

-Dec 27, 2025, 6:23 PM

2026 predictions energy forecast what s ahead next year

The energy industry is entering 2026 at a pivotal moment. Policy shifts, rising electricity demand, grid modernization investments and the continued growth of renewables are reshaping the landscape. For companies operating in oil and gas, power generation and renewable energy, the year ahead presents both challenges and significant opportunities. At Bradsby Group, we work closely with energy companies across all sectors. Our recruiters specialize in placing executives and professionals in traditional energy, power and renewables. We see firsthand how market conditions translate into talent needs and what skills will be most valuable in the year ahead.

Here is what energy companies and professionals should expect in 2026. After nearly two decades of relatively flat growth, electricity demand is surging. According to the U.S. Energy Information Administration (EIA), U.S. electricity generation is forecast to grow by 2.4% in 2025 and 1.7% in 2026. This growth is being driven primarily by large customers including data centers and new manufacturing facilities.

The regions seeing the most significant demand increases are Texas, where the grid is managed by ERCOT, and the Mid-Atlantic/Ohio Valley region managed by PJM Interconnection. The EIA projects that electricity demand in ERCOT will grow by 9.6% in 2026 alone. Crude oil, gasoline, heating oil, diesel, propane, and other liquids including biofuels and natural gas liquids. Exploration and reserves, storage, imports and exports, production, prices, sales. Sales, revenue and prices, power plants, fuel use, stocks, generation, trade, demand & emissions. Energy use in homes, commercial buildings, manufacturing, and transportation.

Reserves, production, prices, employment and productivity, distribution, stocks, imports and exports. As we head into another year and gaze into our crystal ball, geopolitics, market volatility and policy repercussions will be key drivers shaping the global energy industry. As the energy transition advances, albeit at a slower pace than in some previous years, opportunities will unfold alongside increasing complexity, including the role of new energies in meeting growing power demand from data... Concurrently, balancing affordability, sustainability and energy security will remain a persistent challenge, with fossil fuels expected to continue playing a significant role in the year ahead. OPEC+ policy, exploration results and mergers and acquisitions (M&A) will all set the tone for supply growth and define market conditions in oil and gas next year. Rystad Energy advises governments, organizations and companies across the full energy spectrum, combining data-driven analysis with on-the-ground expertise to identify and explain the trends set to shape the industry in 2026.

A year of upstream energy abundance lies in store in 2026, but with potential bottlenecks downstream. We can thus expect to see depressed primary energy prices, albeit with potential for healthy margins in some energy carrier and storage segments. However, the deeper primary energy prices fall in 2026, the more they will rebound in 2027 and 2028. The coming year could therefore be a good one for acquisitions and greenfield project contracting – particularly for players with deep pockets. It will also be a year in which the new hybrid energy reality – with a mix of green and fossil energy sources in all sectors – will be more visible than ever, with... Given the recent headwinds for green policies, decisions will be driven more by fundamental economics than policies.

According to our demand estimates, primary energy consumption will grow by around 2,500 terawatt-hours (TWh), of which 700 TWh is energy losses and 250 TWh is energy molecules used for materials. Thus, the growth in consumption of useful energy will be around 1,550 TWh, of which 450 TWh will be carried as molecules, 900 TWh as electrons and 200 TWh as heat. Of the growth in molecules used for energy, about 60% is likely to be gas, with oil trailing at 20% (as most of the oil growth is for materials, not energy) and with biomass... Of electrons, 100% of the growth is shaping up to be renewables, while 200 TWh of growth in gas-based generation will be balanced by a similar decline in coal and oil-based generation. Our experts pick out the top trends to track – and the wildcards to watch out for. Sign up to the Inside Track to receive email updates each week.

The energy transition, geopolitical forces and shifting market dynamics all combine to ensure that one thing is certain: the energy and natural resources landscape is constantly changing. It's more complex and interconnected than ever before. But while it is perhaps always wise to expect the unexpected, it’s also helpful to get an expert view of the likely twists and turns on the road ahead. That’s why our analysts are scanning the horizon and making their anunual predictions for the top trends, themes, challenges and opportunities for the coming year. Below you'll find a series of insights from our global and regional experts. From a look at which way the wind is blowing for offshore and onshore wind, to a region-by-region exploration of upstream oil and gas.

And from the road ahead for electric vehicles and battery raw materials, to solar market hotspots – and so much more. Bookmark this page to follow this series. Or sign up to the Inside Track, our weekly newsletter, to ensure you don’t miss a thing. Energy prices will be a mixed bag next year, according to forecasts from Yahoo Finance. Youll likely pay less at the pump next year, but higher electric bills may offset those savings. Gasoline prices should fall, thanks to lower crude oil prices.

The Energy Information Administration forecast that gas prices are expected to average $3 a gallon in 2026, down 10% from 2024. Diesel prices will also drop to $3.50 a gallon on average, down 7% from 2024. That decline is because OPEC nations have increased crude oil production, and are expected to continue doing so next year. Meanwhile, demand for oil globally is anticipated to slow, as economic uncertainty from U.S. trade policy drags on the world economy, and more drivers switch to electric vehicles, according to Fitch Ratings and other forecasters. Electricity prices have climbed 36% over the last five years, according to the Bureau of Labor Statistics.

They are set to go even higher next year, according to the EIA. Residential retail electricity prices are likely to rise 4.2%, the EIA estimated. Price hikes will be higher in some areas of the country. "[Price] growth is led by the West South Central region, which includes Texas, as electricity demand from data centers and cryptocurrency mining facilities in that region increases," the EIA said in its November report. Similarly, if you heat your home with natural gas, expect bigger bills next year. The EIA expects wholesale gas prices will be 16% higher on average in 2026 than this year, as production has stayed flat while the U.S.

is exporting more of its gas in order to meet higher demand abroad. Forecasting energy prices, from natural gas to electricity prices and oil benchmarks, remains challenging as the global energy market undergoes political, economic, and structural changes. With a new administration in Washington, U.S. energy policy is shifting again toward increased domestic production, reduced regulatory pressure on traditional fuels, and a renewed focus on energy independence. These policy adjustments will shape natural gas prices, power prices, and broader energy costs throughout 2026. This price forecast evaluates key factors affecting electricity demand, electricity generation, fuel markets, and long-term energy consumption trends.

Drawing on the U.S. Energy Information Administration (EIA), producer outlooks, global supply-chain analysis, and historical pricing patterns from power markets, the following sections outline what individuals, businesses, and utilities should expect for 2026. In recent years, energy markets were heavily influenced by decarbonization policies and rapid growth in renewable energy. However, with the Trump administration reintroducing a pro-fossil-fuel stance, the U.S. energy landscape is pivoting. While renewables will not disappear, they will no longer drive policy, capital allocation, or market structure to the same degree.

The administration’s emphasis on deregulation and expanded production supports increased output from U.S. natural gas, crude oil, and coal resources. This shift affects: Traditional energy sources thus play a larger role in stabilizing the system and influencing wholesale electricity prices. Home > 2026 Utility Predictions: The Race to Rule the Energy Future Carol Johnston , Vice President - Energy, Utilities & Resources

A new kind of global race is underway, one that’s not about military might or space exploration, but about energy. From Washington to Beijing, London to Ottawa, countries are competing to become the world’s next energy superpowers. This race is about more than just keeping the lights on; it’s about shaping the future of economies, climate policy, and geopolitical influence. The United States is rapidly scaling up its clean energy infrastructure, driven by landmark legislation like the Inflation Reduction Act, which includes massive incentives for renewable energy, electric vehicles, and domestic manufacturing of green... While facing pressure under the current administration, a full repeal of IRA is considered unlikely due to bipartisan support for certain provisions and the economic benefits they bring to many districts. China, meanwhile, dominates the global supply chain for solar panels, batteries, and critical minerals, while also expanding its nuclear and hydroelectric capacity.

The United Kingdom is betting big on offshore wind and small modular reactors, aiming to decarbonize its grid and reduce reliance on imported fuels.

2026 Predictions Energy Forecast What S Ahead Next Year

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