Energy investment policies in the United States reflect its prioritisation of energy security

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The energy investment landscape in the United States underscores its commitment to energy security, particularly following its transition to a net energy exporter in 2019. By 2024, the U.S. emerged as the world's largest producer of oil and gas, accounting for 20% of global output and 25% of total energy investment. This growth has been driven by significant investments in liquefied natural gas (LNG) export projects aimed at Asian and European markets. Notably, the share of investment in fossil fuels has decreased from 60% to under 40%, while clean energy investments have surged, supported by favorable policies and competitive pricing, leading to substantial manufacturing growth in sectors like lithium-ion batteries and solar PV modules.

As the demand for clean electricity rises, particularly with the boom in artificial intelligence and data centers, the U.S. corporate power purchase agreement market has expanded significantly. Companies have procured 86 GW of renewable capacity since 2015, fostering interest in next-generation energy technologies. However, this rapid growth poses challenges for existing grid infrastructure, which is already strained. With lengthy wait times for grid connections and increasing demand for electrical equipment, the success of grid reforms will be crucial for sustaining the growth of the energy sector and addressing these infrastructural bottlenecks.