Every Challenge is an Opportunity in Disguise
by Keefer Welsh
Given the unprecedented circumstances the country is currently facing, it is important to maintain our perspective of the other side of this pandemic. Businesses in every industry are facing immense challenges as we all look for a way through these turbulent waters.
While the timeline and magnitude of this crisis remain unknown, one thing that stands true is that we as a county will make it through this in one form or another. The question then becomes, what actions can be taken today to ensure your business exits this time in the best position to regain lost ground. For those businesses that have been deemed essential and continue operations, future energy contracts are likely far from the top of the priority list as countless other issues need their immediate attention. But based on the current market conditions, the potential to significantly reduce future energy costs may be a significant positive to come out of this.
Prior to this outbreak, the US had an enormous surplus of natural gas, then the markets reacted to Russia’s/Saudi Arabia’s decision to increase production and start a price war over oil. These two factors remain the reality and as the effects of that decision rippled through the markets, they were propagated by the steep drop in demand as businesses began to curtail operations in response to the virus.
The resulting market conditions represent an uncertain future for energy prices in the US with most analysts calling for bearish conditions for the balance of 2020 that eventually give way to bullish sentiment for 2021 and further out on the curve.
There is an opportunity in the current energy markets for your business and despite all that is going on, I would challenge you to see that for what it is. We at Atlas will remain active in the markets on behalf of our clients and will continue to do everything we can to see them through this time of crisis with our eyes fixed a brighter future.
Reach out to our advisors to see how you can take advantage of the current market and prepare your business for the future.