Forbes Insight – In Association with CIT – www.forbes.com/forbesinsights
“Consistent with current market observations, U.S. middle market energy executives are optimistic as they find themselves in the midst of a boom propelled by oil, natural gas and power,” says Mike Lorusso, Group Head and Managing Director, CIT Corporate Finance, Energy.
Though staring down significant regulatory and operating challenges, U.S. oil and natural gas executives remain unabashedly upbeat. Short- and long-term outlooks for both pricing and profitability are bullish, consistent with current market observations. And though most acknowledge more work needs to be done to address environmental concerns, many believe that the U.S. will continue to advance toward its goals.
Seeking a clearer window into U.S. energy conditions and outlooks, Forbes Insights, in association with CIT Group Inc. (NYSE: CIT), a leading provider of lending, leasing and advisory services to small and middle market companies, including the energy industry, conducted a February 2014 survey of industry participants. Based on responses from 141 senior, U.S.-based energy executives, the survey reveals that:
- Outlooks for the industry are decidedly positive
- Executives see rising energy prices in both the short and long-term
- Energy executives say their government favors some energy sources over others
- Energy executives hope to heighten the debate on energy policy in upcoming elections
- In spite of lingering challenges, nearly half of energy executives see U.S. energy independence as a fast-developing reality
- Financing for 2014 will focus on a mix of the industry’s infrastructure and working capital needs
- 65% expect natural gas prices to rise over the next 18 months – one in five (21%) forecasting increases of 10% or more
- Over the next three to five years, 68% expect higher prices – one in four (26%) anticipating increases of 10% or more
- 57% see rising oil prices over the next 18 months
- Over the next three to five years, 66% expect higher oil prices