Every year, the U.S. Energy Information Association (EIA) releases an annual Energy Outlook for the year ahead. This document provides an in-depth analysis of energy-related topics and projections of energy markets through 2050.
There’s a lot of information to digest in this report, so we’ve highlighted the top five takeaways to help you understand what’s happening in the energy industry and how it could affect your business.
Since 1953, the United States has been a net energy importer. However, due to increased crude oil production, the U.S. will become a net energy exporter by 2020 for major energy types – including petroleum and other liquids, electricity, coal and coke and natural gas.
What this means for your business: The U.S. becoming an energy exporter will likely result in relatively stable energy prices, pending major disasters and weather events. This makes it even more important for small businesses to manage how they use power to get the most out of the market.
Generation from coal and nuclear is expected to decline, while natural gas and renewable energy generation increases.
What this means for your business: There’s a larger emphasis on green energy resources, which can help small businesses reach their sustainability goals and feel good about using renewable energy.
U.S. energy consumption increases across all major end-use sectors, with electricity and natural gas growing the fastest. However, energy efficiency has increased, partially counteracting the growth in consumption.
What this means for your business: Larger corporations have focused on reducing their energy consumption and small businesses can do the same. Changing the way businesses use power can reduce demand on the grid, resulting in potentially lower energy costs.
Overall, the transportation sector is the largest user of petroleum and other liquids. While current fuel economy standards will stop requiring additional efficiency increases within the next few years, travel does continue to rise, which increases the consumption of petroleum and other liquids.
What this means for your business: From delivery trucks to company vehicles, transportation is an important factor for many small businesses. While travel is slated to increase, businesses can practice energy-efficient habits to help balance it out.
The industrial sector will become the largest consumer of natural gas in the early 2020s.
What this means for your business: Businesses should take advantage of lower natural gas rates while supply is increased. If you haven’t already, consider locking in natural gas rates with a fixed price plan.
To read the full EIA Annual Energy Outlook, download the PDF. If you have additional questions, contact the Small Business Solutions Account Management Team at 1-888-924-7111 or email@example.com.
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