Summertime, and the Energy Sector is Jumpin'
As summer’s hot temperatures kick in, the action in the energy sector is heating up, too. There’s the seasonal rise in demand for gasoline—and a corresponding rise in gas prices, since inventories are down. At the same time, U.S. crude oil production is at its highest level in 20 years, due to fracking of shale reserves. Oil inventories are growing, and the U.S. is on its way to becoming an energy exporter in the next few years. Then there’s the EPA’s proposals to increase the use of solar, wind, and natural gas, and to reduce coal-powered electrical generation plants. That should result in an increased demand for natural gas. And there are calls for the U.S. to export liquefied natural gas to Europe to replace Russian supplies, now questionable due to the crisis in Ukraine. Looks like it’s going to be a long, hot summer in the energy sector.
John Howell, Editorial Director