U.S. energy producers of all kinds see reasons for optimism as they start 2017, though the incoming Trump administration may spell trouble for some of a greener hue.
Among oil drillers, a recent uptick in prices suggests an end to a slump that has persisted since mid-2014, while natural gas, solar and wind energy companies aim to build on their gains in U.S. electric power markets in 2016.
Even the struggling nuclear sector can point to victories in New York and Illinois, where unprofitable reactors were saved by state actions last year.
That said, here’s a list of some of the most notable energy developments for the U.S. in 2016 — ones that may set the stage for how Americans produce and use energy in 2017.
The re-emergence of OPEC
For the first time since 2008, OPEC agreed to cut its oil output in a bid to boost prices and recover some market control. Saudi Arabia and other cartel members were joined by Russia and other non-OPEC nations in agreeing to curtail production by nearly 1.8 million barrels a day in 2017. It’s still too early to say whether the deal will stick, though Brent crude, the global oil benchmark, was up by 12% on Friday from Nov. 30, when OPEC met. Not bound by the deal are U.S. producers, whose output could jump thanks to higher prices.
Trump promises energy shakeup
Donald Trump’s surprise election will mean a significant shift in U.S. energy policy. The president-elect has promised to promote oil, natural gas and coal aggressively, and pull back on Obama administration commitments to fighting climate change. The men he has chosen to head the Environmental Protection Agency and the Energy Department, not to mention the State Department, indicate he intends to follow through on those commitments.
Temperatures up, carbon emissions flat
The year 2016 is likely to be the hottest on record, surpassing record highs set in 2015 and 2014. This comes as the 2015 Paris climate agreement, signed by the U.S. and nearly 200 other nations to avoid a catastrophic increase in temperatures, took effect. Still, carbon emissions from burning fossil fuels are likely to rise only slightly globally in 2016 and fall a bit in the U.S., thanks considerably to reductions in coal use, the Global Carbon Project reports.
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