Our Current Energy Environment with Coronavirus

The worldwide economy and energy markets have predictably been shaken by the COVID-19, widely known as the coronavirus. One with a pessimistic view would consider the energy market as yet another victim of this economic plunge; urging anyone from business owners to consumers into hoarding cash until the situation stabilizes enough that any next step isn’t too much of a risk. While this advice may be sound for many markets, it simply doesn’t hold true for energy markets.

The COVID-19 outbreak has generated both demand and supply shocks reverberating across the global economy. At the sectoral level, tourism and travel-related industries will be among the hardest hit as authorities encourage social distancing and consumers stay indoors. Industries less reliant on high social interaction, such as agriculture, will be comparatively less vulnerable but will still face challenges as demand wavers.

What does the economy have to do with the energy sector?

Economic slowdowns generally lead to lower energy demand. Energy prices have never been this low and one thing is for sure it never stays this way. In addition, the boom in domestic U.S. energy production in recent years means the U.S. is exposed to price declines in a way not seen in previous economic downturns. Due to the volatile nature of energy markets and recently the economy, energy market pricing is more affordable than it has been in a decade.

Business owners who are being hurt by the coronavirus shutdowns are looking for ways to lower their budgets.  Our business model combined with energy pricing at such low levels really helps our customers lower their energy expenditures and keep more of their hard-earned money.  

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