The energy boom is real and the market is buzzing.
Northwestern University’s Mark Loeffler says the energy sector is “poised for an explosive growth cycle” and has “a lot to offer the rest of the economy.”
The booming market is driven in part by the surge in natural gas prices, as well as by the surging demand for electric vehicles.
The boom is also expected to boost other sectors of the Canadian economy, such as food processing and packaging, transportation, healthcare, manufacturing, energy efficiency, and home energy.
North American markets have been hit hard by the energy crash.
Natural gas prices have been below $US1 a million British thermal units (BTUs), and electricity prices have risen dramatically.
The cost of natural gas is also down, as are the cost of electricity.
In North America, the energy boom has helped to boost the country’s GDP, but also made it more expensive for many households to heat their homes and utilities to deliver power.
But the economic recovery has been slow.
There is a lot to unpack and a lot of unanswered questions about how the energy industry is going to play out.
In fact, we are still waiting for the full economic impact of the energy bubble to be fully realized.
It is a bubble, but it is one that has been built and built.
“The market has a lot going for it.”
Loeffer, who is a professor at the university’s School of Business, says the explosion in natural-gas prices is a key factor.
We are now in the third quarter of the year where prices are still below $1 BTUs.
The market has been buoyant for a while, he said, but that is no longer the case.
It is an exciting time to be in North America and the bubble is here to stay.
The energy industry has been hit harder than the broader economy, and as Loefeber said, it is still too early to say whether the bubble will burst.
This story was produced by The Canadian Press, and was used with permission.