Do Less US Gas Exports Mean Lower Costs for Businesses?

 

Three Key Points:

  1. Like most industries, higher energy prices for one could usually mean higher profits for another, even in a B2B context.
  2. Government should do its best to maintain fairness in the marketplace without picking “winners and losers.”
  3. Uncertain federal action is forcing suppliers and consumers in the energy industry to be realistic about what they can and can’t control, and whether they’re up for the challenge of staying afloat in exports.

Commentary:

The Industrial Energy Consumers of America recently asked the United States Department of Energy to temper liquefied natural gas exports in order to keep at-home supply high. According to the IECA, because an increased pace of US Gas Exports is leading to inflation in the market, this request comes from a desire to keep energy costs low for the consumer and industrial customers. MarketScale asked Aaron Alpeter, Principal and Founder of Izba, how moves like these could alleviate pressure while still allowing companies to recoup their investments.

What Aaron Alpeter Said:

Think you have to first start off by asking which pressures are you trying to alleviate? Which companies are you hoping to allow to recoup their investments? Recall, there’s always two parties to every transaction in higher prices for one usually can mean higher profits for another. Something that’s good for bad for one person could be good for another person and vice versa.

Personally I believe, the government should do its best to maintain fairness in the marketplace. But the challenge is that doing so in such a way so that you avoid picking winners and losers. I don’t think that there’s a one size fits all right or wrong answer. You have to look at each circumstance individually. So, for example, if a supplier had done its research and concluded that there was a market wave that was imminent, maybe it was a few years out and they decided to deficit spend for a few years in advance of that so that they’re better positioned to take advantage of it.

I think that they would be understandably upset if the finger was put on the scale against them. However, if a consumer or a customer found that prices were increasing dramatically due to a limited number of providers, such as what we see today in Ocean shipping, then perhaps some market intervention is required as things start to shift in any industry where if it’s a tariff or short of some kind. Businesses must evaluate, is it worth sticking through it?

 

Follow us on social media for the latest updates in B2B!

Image

Latest

biofuel feedstock
Motor Fuels Tax Minute, Episode 43: Biofuel Feedstock
April 16, 2024

In this week’s episode of Motor Fuels Tax Minute, our hosts discuss non-tax specific permits for biofuel feedstocks.   For information or assistance, contact us. We are here to help. ©2024 Detailed Description of Weaver’s Motor Fuels Tax Minute, Episode 43 00:00:00 Emilda: Welcome to Weaver’s Motor Fuels Tax Minute, the vlog where we talk all […]

Read More
An Aging U.S. Workforce Could Be A Fruitful Operational Shift for Businesses
April 15, 2024

In a workforce landscape being shaped by inflation, supply chain evolution, geopolitical tide shifts, and rising next-gen technology, businesses are increasingly recognizing the value of integrating older, experienced workers into their labor strategies. The allure lies not only in the seasoned skills these workers bring but also in their financial independence, which often allows […]

Read More
telecom project success in healthcare
Telecom Project Success in Healthcare Usually Comes Down to Working with the Right Decision Maker
April 15, 2024

In the rapidly evolving landscape of healthcare technology, telecommunications plays a crucial role. As healthcare providers increasingly rely on digital solutions—from telemedicine to electronic health records—telecom companies are finding new opportunities and challenges in this sector. Successfully implementing telecom projects in healthcare requires a nuanced understanding of the industry’s legacy communications infrastructure, unique demands […]

Read More
visitor management systems
Enhance Security with Faster Adoption of Digital Visitor Management Systems
April 15, 2024

As workplaces evolve into hybrid environments, the urgency to replace traditional paper logbooks with advanced digital visitor management systems has become a critical focus for organizations aiming to bolster security. The reliance on outdated methods poses significant security risks, a concern highlighted by increasing incidents of unauthorized access and data breaches globally. This pressing […]

Read More