Tag Archives: energy

Ideas for Energy Users When Prices Have Tanked

Crude Oil Jan 11, 2015Have you noticed that it costs much less to fill your car with gasoline these days? Crude oil has plummeted in the last six months, bringing energy costs down with it. Hooray! It’s about time.

Everyone I know is an energy user. When you’re a business, energy is often one of the more significant expenses reducing your profit. Farmers, fishermen, and trucking companies consume substantial amounts of diesel fuel and gasoline to power their equipment. Retail entities must run lights, air conditioning, and heating systems, perhaps even refrigeration units. Manufacturers are powering machinery and equipment every single shift. And real estate companies may incur utility costs, depending upon the lease agreements with their tenants. Any businesses with substantial travel budgets are impacted by the cost of jet fuel to airlines, as well as diesel and gasoline costs to power their own fleets. You might say money AND ENERGY make the world go round.
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Ideas for Energy Marketers When Prices Have Tanked

Crude Oil Jan 11, 2015
In the past six months, the cost of crude oil has dropped in half! Such a large price change in such a small timeframe suggests that new risks and opportunities abound for any business affected by energy prices. And who can think of any that aren’t impacted to some degree? The implosion in pricing means it is time to reassess your business’ energy risk profile.
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Ideas for Energy Producers When Prices Have Tanked

Crude Oil Jan 11, 2015Unless you’ve just crawled out from under a rock, you’re well aware that the price of oil has declined over the past six months and, with it, the cost of energy. You see it when you fill up your vehicle with gasoline or when you pay your fuel bill to heat your home (unless you’re among the unfortunate who locked in a fixed price before the recent price collapse).

If you run a business, you’re even more familiar with this price change, including its effects on your bottom line. The change has impacted producers, marketers, and users. However, just because prices have plummeted does not mean that risk–and opportunity–have vanished. That proverbial horse may already have left the barn, but there are more awaiting their own escape. If you have a future interest in a commodity, the uncertainty of its price will always present you with the counterbalancing risk/opportunity dynamic. Rather than simply wallowing in the anguish of lost profits–or basking in the glow of unexpected gains–perhaps it’s time to move on, to consider what opportunities this new pricing environment presents for the future.
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