According to a new study released by CIT Group Inc, titled 2014 US Energy Outlook 81% of middle market energy executives describe 2013 as profitable, and their expectations for 2014 are nearly identical, with 82% anticipating continued profitability. However, also according to the report 67% agree that current energy policies are hampering US energy development and 49% believe US energy independence remains a distinct possibility in the foreseeable future.
Mike Lorusso, group head and MD at CIT Corporate Finance, Energy said, ‘consistent with current market observations, US middle market energy executives are optimistic as they find themselves in the midst of a boom propelled by oil, natural gas and power. They believe that with policies that are more supportive to the growth and investment in the energy sector, the US will continue to advance towards its goal.’
- The outlook for the energy industry is positive. 81% of executives describe the past year as profitable. 91% of executives anticipate the three to five year energy sector outlook to be profitable.
- Energy prices are rising in both the short and long term.
- 57% see rising oil prices over the next 18 months, and 66% expect higher oil prices over the next three to five years.
- Middle market energy executives expect natural gas prices to rise over the next 17 months. Over the next three to five years, 68% expect higher prices.
- 60% believe that energy policy will be one of the most critical issues in the 2014 Congressional race, 6% say the same for the 2016 election cycle.
- 49% say energy independence is likely in the foreseeable future, with 40% saying within 6 – 10 years.
Adapted from press release by Claira Lloyd
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