As we welcome the New Year, many energy industry insiders are speculating on the future of deregulated energy in the upcoming year.
Direct Energy recently released an excellent 2017 forecast from the president of Direct Energy Business, John Schultz.
We’ve covered a brief summary of some stand-out predictions below, but you can also check out the videos here.
Coal vs Natural Gas
The president of Direct Energy Business, John Schultz, mentions in this video that coal was a central player in the 2016 election cycle, so what does that mean for other fuels like natural gas?
According to Schultz, not too much. The price of natural gas will remain much lower, making it “unlikely that coal will regain a significant share in U.S. power generation”.
In fact, he suggests that the recent election may not have as much impact on the energy sector as many previously believed.
The Impact of Local Regulations on Deregulated Energy
Schultz does find local regulatory issues relevant for 2017. He mentions the compensation of power generators like New York’s subsidies for aiding nuclear plants. These regulations will likely increase consumer pricing for electricity.
Natural Gas Pricing
He forecasts continued volatility but suggests that natural gas prices might remain near current prices.
If you haven’t checked out the video, visit Direct Energy here.