Energy market

One set of businesses finds and develops new sources of power-drilling for new fuel reserves or developing better solar panels.

Another group transports these sources of power closer to end consumers using pipelines or cargo ships.

Other businesses generate power: power plants, wind farms, and solar installations.

Additional businesses, like public utilities, are responsible for actually distributing power and natural gas to consumers.

The energy sector affects almost every facet of the economy.

The fragmented nature of the energy market means that most people only see a small portion of the whole market.

The energy market is shaped by the details of its sub-industries.

Ultimately, the market revolves around drilling for fuel reserves, building power plants, and running power lines.

Each of these sub-industries has unique aspects that need to be understood by decision makers. However, it is also important to understand how the entire market fits together.

The major commodities in the energy market are natural gas and electricity. Coal, carbon emissions (greenhouse gases), nuclear power, solar power, and wind energy are also all part of this dynamic market.

Oil is also an energy product. However, oil is more influential as a source of energy for cars than as a source of electricity and heat.

Energy has always been a major industry, but with deregulation allowing more active trading, it has also become a major financial market.

It now stands alongside stocks, bonds, and other commodity markets as an equal.

With the influx of Wall Street and financial interests, a large body of people are now involved in energy trading.