Rising Demand For Energy Reportedly Making Some Analysts Call The Sector More Attractive — Are Companies Like Viking Energy Ready To Step Up?

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The global energy sector is turbulent. Just when everyone thought the industry was bouncing back from the COVID-19 pandemic, the Russia-Ukraine conflict exacerbated the situation, driving oil and gas prices to their highest levels in nearly a decade.

Skyrocketing prices are forcing many countries — particularly those in Europe that depend on the most energy from Russia — to reassess their energy supplies. 

Energy consumption worldwide is still heavily dependent on fossil fuels, and any challenges crude-producing nations face could cause disruptions in the global supply.

Despite advancements in renewable energy, it is still miles behind matching fossil fuels' production and supply levels.

Growth Projections

Despite global challenges, there will likely always be a need for energy, and that demand may continue to fuel the industry’s growth.

Energy Consumption By The Numbers

The International Energy Agency’s (IEA) annual projections indicate global energy demand will continue to increase as the world grows and reduces poverty. The IEA projects that by 2040:

• The global population will grow an additional 500 million, from 8 billion in 2020 to over 8.5 billion in 2030. That will cause increased energy demand from emerging markets and developing economies.
• World energy demand will increase by 27%.
• Natural gas demand will rise by 31%. Many nations look to natural gas for affordable and reliable electrical power generation that produces lower emissions than coal.
• Total oil demand will increase. While the use of oil for transportation will peak, growth in petrochemicals means more oil will be needed in the future.
• Global electricity generation will increase. Currently, 772 million people worldwide still live without electricity.

These growth figures may translate into more opportunities for major industry players like Exxon Mobil Corp. XOM, Chevron Corp. CVX, Shell plc SHEL and TotalEnergies SE TTE.

However, investments in the industry are also reportedly growing as it shifts to renewables to augment global energy needs and halt climate change.

A Bloomberg New Energy Finance study reported that the industry will likely receive investments worth $5.1 trillion by 2030. A study by Imperial College London and IEA found that investing in renewable energy could yield returns of up to an eye-popping 178.2% in five years in Germany and France if demand continues.

However, as the global energy industry continues to transform and grow, smaller energy companies such as Viking Energy Group Inc. VKIN are looking to be strategically positioned to be key players.

The Texas-based company already has roots in oil and gas and says it is looking at renewable energy and medical/ozone waste. Viking reports that it looks to cover nearly every aspect of energy renewal, attempting to make it a more holistic company.

Through various majority-owned subsidiaries, the company provides custom energy and power solutions to commercial and industrial clients in North America and owns interests in oil and natural gas assets in the United States.

The company recently purchased a 60.5% interest in Simson-Maxwell, a Canadian manufacturer and supplier of industrial engines, power generation products, services and custom solutions.

Viking also states that its majority-owned subsidiary Viking Ozone Technology LLC owns the intellectual property rights to a fully developed, patent-pending, ready-for-market proprietary Medical & Bio-Hazard Waste Treatment system using Ozone Technology.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.