Energy Update
Nov 09, 2021
As producers, we are by nature accustomed to volatile markets, unknown situations and playing the hand we’re dealt. But, the recent surge in energy prices is causing even the most seasoned, thick-skinned producers to be uncomfortable. The current energy crisis Europe is experiencing is creating a ripple effect of turmoil that is resulting in price spikes in the cost of electricity, putting pressure on energy suppliers and causing significant disruption across many industries. There are also many domestic factors that are further amplifying the effects of this energy crisis which are being felt right here in UFC territory.
The higher prices are being driven by rising demand and tight supplies. As the pandemic slows and consumers begin spending again, factories and service providers are ramping up production, which requires energy. Oil supplies are tight because oil-exporting countries have decided to increase production in measured steps instead of opening more widely.
Natural-gas supplies are running low after a freeze in Texas earlier this year drove up demand. In addition, Hurricane Ida forced nearly all of the Gulf of Mexico’s gas output offline. In Europe, inventory levels have dropped due to hot weather, less than ideal wind-power generation and lower imports from Russia. Combined, these factors have created the perfect storm which we anticipate will be our new normal for the foreseeable future.
As your partner in energy, we take our responsibility for providing our patrons with relevant and timely marketing information, competitive pricing as well as tools to help you navigate these challenges seriously. Whether you are purchasing bulk propane to dry grain, or you’re simply looking to heat your home with natural gas, we are happy to help you manage your risk and control your costs by providing programs such as prepay, budget, booking, tanking monitoring, contracts and more. If you are in need of new energy equipment, we also offer a payment plan which allows you to have the equipment you need without tying up capital. If you have any questions, please contact the energy team at 888-832-5734.
DARV TURBES
VICE PRESIDENT OF ENERGY
The higher prices are being driven by rising demand and tight supplies. As the pandemic slows and consumers begin spending again, factories and service providers are ramping up production, which requires energy. Oil supplies are tight because oil-exporting countries have decided to increase production in measured steps instead of opening more widely.
Natural-gas supplies are running low after a freeze in Texas earlier this year drove up demand. In addition, Hurricane Ida forced nearly all of the Gulf of Mexico’s gas output offline. In Europe, inventory levels have dropped due to hot weather, less than ideal wind-power generation and lower imports from Russia. Combined, these factors have created the perfect storm which we anticipate will be our new normal for the foreseeable future.
As your partner in energy, we take our responsibility for providing our patrons with relevant and timely marketing information, competitive pricing as well as tools to help you navigate these challenges seriously. Whether you are purchasing bulk propane to dry grain, or you’re simply looking to heat your home with natural gas, we are happy to help you manage your risk and control your costs by providing programs such as prepay, budget, booking, tanking monitoring, contracts and more. If you are in need of new energy equipment, we also offer a payment plan which allows you to have the equipment you need without tying up capital. If you have any questions, please contact the energy team at 888-832-5734.
DARV TURBES
VICE PRESIDENT OF ENERGY