November 6, 2025
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Hi there
Good morning! In today’s issue, we’ll dig into the all of the latest moves and highlight what they mean for you right now. Along the way, you’ll find insights you can put to work immediately
— Ryan Rincon, Founder at The Wealth Wagon Inc.
Today’s Post
Energy Economics 2025: Balancing Oil, Gas, and Renewables in a New Power Era
The world’s energy system is in the middle of a transformation — and not a small one. For over a century, the global economy has been fueled by oil, coal, and natural gas. But in 2025, that mix is shifting fast as renewables, nuclear power, and energy innovation compete to shape the future. The challenge? Meeting massive global demand while cutting emissions and staying affordable.
It’s one of the biggest economic balancing acts in history.
⚡ The current energy snapshot
Energy demand keeps climbing. According to the International Energy Agency (IEA), global energy use in 2025 is projected to rise 1.8%, led by Asia, Africa, and the Middle East. But where that power comes from is changing:
Oil: Still dominant at about 29% of global supply, though demand growth is slowing as electric vehicles (EVs) rise.
Natural gas: Around 23% of global supply — growing in regions phasing out coal, especially Europe and Southeast Asia.
Coal: Falling to its lowest share in decades (around 25%) due to environmental policy pressure.
Renewables (solar, wind, hydro): Surging past 15% of global energy supply — double what it was a decade ago.
Nuclear: Seeing a quiet comeback, now over 10% of global electricity production as new reactors open in China, France, and South Korea.
The global picture is clear: fossil fuels still dominate, but renewables and nuclear are steadily eating into their share.
🛢️ Oil: Still king, but losing its crown
Oil prices have stayed volatile through 2025, hovering between $75–85 per barrel as OPEC+ adjusts production targets and global growth remains uneven.
Three key trends stand out:
Peak demand is closer than ever. The IEA expects oil demand to plateau by 2028, as EV adoption and efficiency improvements accelerate.
The Middle East is diversifying. Countries like Saudi Arabia and the UAE are investing billions into hydrogen, solar, and even AI infrastructure to prepare for the post-oil era.
Refining is shifting east. Asia — led by India and China — now processes more crude than Europe or North America, signaling where the next chapter of energy demand will come from.
As one analyst from S&P Global put it recently, “Oil isn’t disappearing; it’s just losing its monopoly.”
🔋 Renewables: Growth with growing pains
Renewables are no longer a niche — they’re mainstream. Global investment in clean energy reached a record $1.8 trillion in 2024, more than double fossil-fuel investments. Solar power now costs 70% less than in 2015, making it the cheapest energy source in many regions.
But it’s not all smooth sailing:
Storage bottlenecks: Solar and wind are intermittent. Until battery technology catches up, grids will need backup power — often natural gas.
Grid challenges: Many countries lack infrastructure to connect renewable energy efficiently.
Critical minerals: Renewable expansion relies on lithium, cobalt, and rare earth metals — most of which are controlled by a handful of countries, creating new geopolitical dependencies.
Still, the direction is unmistakable: by 2030, renewables could make up nearly one-third of global power generation.
🔥 Natural gas and nuclear: The middle ground
As countries phase out coal but still need stable power, natural gas and nuclear energy are stepping in as “bridge fuels.”
Natural gas demand remains strong, especially in Asia and Europe. Liquefied Natural Gas (LNG) exports from the U.S. hit record highs in early 2025, making it a key global supplier.
Nuclear is regaining momentum after a decade of skepticism. Small Modular Reactors (SMRs) — compact, safer designs — are being tested in Canada, France, and Japan, potentially cutting costs and build times dramatically.
The IEA predicts nuclear capacity will grow 20% by 2030, largely from Asia’s push to expand low-carbon baseload energy.
💰 The economics of transition
The global energy transition isn’t cheap. The World Bank estimates that reaching net-zero by 2050 could require over $4 trillion annually in clean energy investments. That’s nearly double what’s being spent today.
For now, this transition is creating winners and losers:
Winners: Nations with abundant sun, wind, or critical minerals — like Australia, Chile, and Morocco — are attracting massive foreign investment.
Losers: Fossil-fuel-dependent economies that move too slowly risk stranded assets and shrinking revenues.
Consumers: Short-term pain is real — energy prices remain high in Europe and Asia as grids adapt, but long-term efficiency gains could stabilize costs.
🌍 The next phase: Hybrid energy systems
The near future isn’t all-renewable or all-fossil. It’s hybrid. Economists now talk about “multi-source systems” — energy mixes that combine solar, wind, nuclear, hydrogen, and even carbon capture technology.
Some key signs of the future:
Hydrogen fuel gaining traction in shipping and aviation.
AI-driven energy management optimizing grid demand and storage.
Cross-border power sharing — like Africa’s new pan-regional electricity trading platform.
This blend could deliver both stability and sustainability — if nations can coordinate investment, technology, and regulation.
The Bottom Line
2025 is a turning point in the world’s energy story. Oil still rules, gas bridges the gap, renewables are racing ahead, and nuclear is quietly making a comeback. The transition won’t be easy — but it’s already reshaping global power dynamics, investment flows, and everyday economics.
For readers of The Economic Wagon, here’s the takeaway: the energy transition isn’t coming — it’s here. The real question now isn’t which source wins, but how fast the world can build a system that keeps the lights on, the air clean, and the economy growing.
That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
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