Projections from the U.S. Government for energy prices over the next
year-and-a-half offer a mixed picture. (See Figure 1.)
On the one hand, prices are set to rise as the global economy recovers
and demand for energy sources ticks upwards. However, costs for most
energy sources are not forecast to return to their pre-recession levels,
at least for the next 18 months. Except, that is, for electricity,
which saw a small increase this year but is projected to resume a more
aggressive increase pattern next year.
The ups and downs of energy prices track well with the rise and fall of
corporate initiatives for energy efficiency,
says Peter Franolic, director of the energy practice at Pittsburgh-based
consulting firm Greybeard Advisors. "Interest in energy management is
cyclical," he says, "and people tend to fall asleep because it's not the
crisis of the moment." The problem with this "on-again/off-again"
approach to energy management, Franolic adds, is that when the cost of
energy does spike again, it may be too late for companies to respond
effectively if they have not already put in place a comprehensive energy
strategy.
Print to Page
Email to a Friend