2022 was a very wild ride in the energy markets with prices increasing by 70%. Luckily prices appear to be returning to normal as can be seen in the chart. The problem is that appearances can be deceiving.
Prices may have come down, for now, but this is not a return to normal. We still have the war in Ukraine, climate change, extreme weather and the need to decarbonize the global economy. The energy markets have fundamentally changed and will continue to change as we transition to a low carbon economy. There are 5 aspects we are confident of:
• Prices will remain highly volatile for the foreseeable future.
• Outages will continue to increase as a result of extreme weather, decarbonization and aging infrastructure.
• Electrification will put additional strain on everything.
• The energy markets and demand management are becoming increasingly complex.
• The above factors make it imperative that you enlist the help of an energy market expert to manage your energy procurement and management.
If you would like to read the entire article from EIA, use the following link: https://www.eia.gov/todayinenergy/detail.php?id=55059