Despite an anticipated transition to renewable energy technologies, reliance on fossil fuels remains strong due to prevalence and low cost. In 2011, the International Energy Agency (IEA) projected natural gas’s share of energy demand worldwide would reach 25% by 2035, up from 21% in 2010. The rise is largely credited to North America’s increasing dependence on hydraulic fracturing or “fracking.” Shale in particular is becoming a popular energy source. Wood Mackenzie recently forecast that more than 50% of US gas will be generated from shale by 2019. In 20 years, North America is likely to rely almost exclusively on domestic sources for energy. Many recent acquisitions are a result of the penchant for fossil fuels, as firms want access to new geographic areas for and technical expertise about new energy sources. However, fossil fuels are not without issues, as infrastructure spending is needed to accommodate demand.

Source: Financial Times