McKinsey report: Global energy landscape shifting toward simultaneous expansion

A new analysis from McKinsey’s Global Energy Perspective 2026 report suggests the global energy landscape is shifting toward a period of expansion rather than a simple transition between sources. The report indicates that oil, gas, coal, and renewables are expected to expand simultaneously, creating a more diverse but unpredictable and fragile energy system.

Despite record investments in clean energy, demand for fossil fuels remains high. Oil demand reached its highest level since 2019 in 2025, coal consumption hit a new record, and gas demand grew across all major regions. Key drivers for this increasing demand include the rapid growth of artificial intelligence and data centers, particularly in the U.S., China, and Europe, as well as the electrification of transport and population growth in Southeast Asia.

Analysts warn that this era of energy expansion could lead to new crises, potentially driven by shortages of critical minerals, batteries, and essential equipment. To manage growing demand, governments and companies may need to invest in renewables, grids, and storage while simultaneously maintaining investments in other sources of firm energy to ensure security and affordability.