Energy Management

Webcast: Oil & Gas: Production, Prices and Predictions

Fortunato & Friends Webcast Series
2 min read

In the latest episode of Fortunato & Friends, Exelon Chief Economist Ed Fortunato interviewed Ace Alexander – Senior Management of Market Fundamentals – Fuels for Constellation.

During the webcast, Ed and Ace discussed supply & demand for natural gas & oil, the Energy Transition to Cleaner Fuels and the push for Carbon-free energy. Additionally, Constellation’s Commodities Management Group member, Keith Poli, moderated the webcast and offered their insights.

12:15 Supply & Demand of Gas & Oil trends

Ed and Ace began the conversation discussion where are we now in terms of oil and gas production, supply and demand. The industry has been greatly affected by the pandemic, before COVID the U.S. had great production, great demand and was building export facilities. Then COVID showed up and the U.S. lost demand, supply and shut down gas and oil production, some companies facing bankruptcy. Today, there’s been good recovery since COVID, Ed indicated that rig counts are consistently increasing but slowly.

16:00 – The Energy Transition 

Ace and Ed then discussed the impact of the energy transition on oil and gas producer discipline. The world of energy is going through a huge change and the oil and gas industry doesn’t know where they fit in now. One reason oil and gas producers may be pulling back on investing in new rigs, is they need to start putting money into new products to reduce their emissions. There is also an increasing number of clean energy rules and regulations coming to their industry from the U.S. government and the EPA that will change the way they do business.

18:30 Fundamentals for 2022 – Demand, Supply, Storage, Prices

Ed and Ace then moved to 2022 and their forecast for the upcoming year. It is very difficult to forecast where drilling will go since it’s always in a state of flux. The public companies are more disciplined about production levels than the privately owned production companies.

23:20   Three-to-five-year outlook for drilling

Moving from the short term, the speakers then discussed their three-to-five-year outlook for future oil and gas production. Inflation, a workforce shortage, supply shortage, and any changes internationally will all change the price of gas and oil and well as production.

26:37 Question & Answer

Finally, Ed, Ace and Keith took audience questions on various topics including:

Are Oil & Gas companies legally required to disclose their prices?

How do labor constraints affect oil and gas prices?

What are your major concerns about a carbon free future?

Are new storage facilities being built?

Will new college graduates still want to work in the energy industry?

Listen to the full webcast to hear expert insights by visiting our Fortunato & Friends Webcast resources page.

If you find the insights shared in the webcast valuable, please join us on Thursday March 3rd, at 2 p.m. ET featuring Chief Economist Ed Fortunato and a discussion with President and Chief Executive Officer of Constellation, Joe Dominguez.

Register today for our next Fortunato & Friends webcast.

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