Definition
Energy sector includes companies related to the production and supply of energy, also it covers the companies that explore, produce, refine, market, store, and transport oil and gas, coal, and other consumable fuels. Companies producing and selling oil and gas equipment are also considered part of the energy sector.
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Major Drivers of the Sector
There are various factors which drives the whole sector. Few of the major drivers of this sector are
- Economic activity level
- Weather and Seasons
- Government regulations and organization policies,
- Changing environmental policies
Various Types of Energy
There are few types of Energy , all these types are really adding value into the various economics globally. Lets look at the basic types i.e. Renewable & Non-renewable energy.
Non-renewable energy includes
- oil and petroleum products
- gasoline
- natural gas
- diesel fuel
- nuclear
Renewable energy includes
- hydropower
- solar power
- wind power
Major Energy Consumers
Look at the various Energy Consumers & four major energy-consuming sectors are industry, household, transport, and agriculture. Means, nearly every section of our life is connected with this sector and cant survive without energy which really makes it valuable sector.
Capital Expenditures
Energy businesses incur huge capital expenditures the major reasons behind these expenditures are :
They have to own large amounts of assets which include
- Land for oil reserves
- Plants and equipment for crude oil and raw natural gas processing
- Infrastructure or transportation.
- Substantial spending on research and development (R&D) to update technology.
- Adapt to the changing environmental policies.
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