A confluence of factors spurred by steadily increasing demand and pricing is causing a national energy crunch and, according to a recent whitepaper issued by MD Energy Advisors, companies are encouraged to research its options and diversify its existing energy source mix as a feasible method to manage costs over the long-term. “The Rising Cost of Energy – Managing the Shifts that Impact your Business” can be viewed here Rising Cost of Energy
The company recommends working with a knowledgeable energy advisor that can provide specific guidance and match available options to compliment a company’s energy strategy.
In recent months, the price of natural gas in the United States has more than doubled and, in European nations, the increase has been four-fold. Crude oil pricing has steadily risen as well, from all-time lows this spring to more than $80 per barrel currently. The rise in natural gas and oil prices have also resulted in higher electricity costs. Increased demand among consumers and businesses have helped fueled this across-the-board surge in prices, but stagnated production among all energy sectors have also been a significant contributor to the recent trend.
According to the whitepaper:
- sustained population growth will continue to place more stress on demand among consumers, businesses and the transportation industry
- the utilization of all traditional energy sources, including coal, electricity, natural gas and oil, combined with an investment in new technologies and renewable energy sources will be needed to meet the emerging demand worldwide
- a focus on renewable energy sources is necessary to make existing energy systems less vulnerable to large commodity pricing swings
The State of Maryland’s Clean Energy Jobs Act of 2019 not only raises Maryland’s requirement for renewable energy to 50% by 2030, but also requires state planning to reach 100% renewable energy by 2040. The emergence of offshore wind farms is emerging as a viable solution and, according to Phil Croskey, MD Energy Advisor’s CEO, “if Maryland gets it right, adding this source of energy to our existing grid will be a significant achievement for the State and its stakeholders. We are entering a transformative period and the development of offshore wind farms can be the stimulus for employee on ramps and workforce training that can make a significant difference for families and our economy. It is imperative to take full advantage of the possibilities.”
With the ambitious renewable energy goals of the public, private and government sectors, the increased demand for this form of energy has also generated skyrocketing costs in 2021, mirroring the rise in the traditional energy market.
“Companies and individuals cannot simply sit back and wait for a pricing correction in the energy industry, because existing fundamentals do not point to the likelihood of this occurrence in the near-term,” stated Christine Ciavardini, Client Relationship Manager for MD Energy Advisor. “Instead, they are encouraged to proactively partner with a knowledgeable energy advisor who can provide guidance and match available options to suit a specific energy strategy.
“A viable plan involves reviewing existing energy policies, identifying current energy usage, evaluating data to determine future metrics and planning and executing a feasible program that provides a workable path to achieve stated goals. Reducing overall energy consumption with energy-efficient products and strategies including retro-commissioning tactics, is the surest route to success,” she said.
Headquartered in Baltimore, the company is a customer-centric energy management, marketing, and efficiency firm providing energy solutions to utilities, private companies and residential clients. The company identifies opportunities to reduce energy-related operating expenses, offers strategies that improve environmental impact and provides financial vehicles to help implement these strategies.
For additional information about MD Energy Advisors, visit www.MDEnergyAdvisors.com
