Investing in Energy: A Primer on the Economics of the Energy Industry

Energy Investment Cost Considerations

The costs associated with building a nuclear power plant or hydro project have escalated. Today, there is virtually no energy company that would contemplate building or pursuing a major infrastructure project on its own. Consortiums are the order of the day and will continue to be over the long term. While large energy companies tend to have access to the capital markets and considerable financial resources, partnering has become an economic and, to some extent, financial and operational necessity for large-scale infrastructure energy projects.

Refinery upgrading, pipeline building, or alternative energy projects require such considerable financial resources that multiple companies will partner to manage ...