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Is your business prepared to deal with electricity price shocks?

The price of gas has more than doubled in the past year.  In the Northeast and Midwest, over a third of all electricity is generated from natural gas – consequently – we are starting to see electricity price shocks.

Among the reasons for the spike in natural gas prices are new restrictions on drilling, ESG (Environmental, Social and Governance) and its imposed limits of fossil fuel companies to the capital markets, increased LNG (liquefied natural gas) exports, capital markets requiring free cash flow from drillers, a dramatic increase in input costs, and increased demand in the United States due to the economic recovery following the pandemic. With production idling during the pandemic, the United States gas stockpile now sits 7 percent below average while Europe is 20 percent below average. Read more…