Energy Forecast for 2013-2014

A graph showing the price of oil and natural gas. Photo courtesy of Forbes.com.

According to a recent Forbes article, our energy usage will be surprisingly diverse in the next two years.

"Oil and its liquid derivatives will remain fairly highly priced, but natural gas will continue to cheapen, increasing the spread between the two fuels to unprecedented levels."

Natural gas has largely been driven by new technology, so production and supply has increased tremendously, much faster than demand. Energy consumers are switching to the cleaner fuel rapidly, including electric plants and truckers.

"In the near future, 2013 and 2014, the divergence in prices between oil and natural gas will continue," wrote Forbes contributor Bill Conerly. "Natural gas will continue to be cheap in the North American market. Operating costs are tiny in most cases, so natural gas will continue to move to market."

Many businesses are seeing the benefits of natural gas, and are converting quickly. The infrastructure to support natural gas is being developed rapidly, and companies need to start thinking of the change now.

Source: Forbes