In 2035, solar energy is expected to provide more than 40 per cent of the electricity in the US, due to tax incentives and the Infrastructure Bill, according to a report by the Energy Industries Council (EIC), a leading energy trade association.

EIC has released its latest country report focusing on the US. The report provides a deep exploration of the US' dynamic energy sector and explores the impact of the Inflation Reduction Act.

The US, maintaining its position as the leading oil-producing country, sees 85 per cent of production stemming from onshore activities.

Firdaus Azman, the author of the report, said: "While the IRA champions renewables and clean tech, it still has lingering attachments to the oil and gas sector. We should beware of mixed messages – America's energy policy is still a work in progress."

The report highlights notable developments in the Gulf of Mexico (GOM), with projects such as the Vito oil field and King’s Quay Floating Production System.

Leading in hydrogen production, the US is actively pursuing cost reduction through initiatives like the National Clean Hydrogen Strategy and the Hydrogen Hubs Programme, backed by the Bipartisan Infrastructure Law.

While challenges persist for solar and wind industries, including supply chain issues and policy changes, the report sheds light on their pivotal role in achieving the US's net-zero emissions target by 2050. Offshore wind projects, particularly in the Gulf of Mexico and the Northeast region, show promise.

"The US energy market is not for the faint hearted, but for those willing to embrace the challenges and leverage the opportunities, it can be a rewarding journey," Azman said.