S&P Global Ratings has released its Industry Top Trends report for the North American power, transportation, utilities, and oil and gas sectors, identifying a number of key shifts within each sector, as well as potential risks that lie ahead.
“We are witnessing the end of an epic bull run,” S&P said of the unregulated power sector. Following the decline in natural gas prices in 2023, forecast power prices are down 45 percent, 20 percent and 10 percent, on average from their September 2022 highs for calendar years 2023, 2024 and 2025, respectively. However, the report notes they are still about 30 percent higher than forward-power price expectations at the end of 2021.
Things to look out for, according to S&P, are hedging strategies and execution, capital allocation decisions and environmental rulemaking. As the EPA is proposing Clean Air Act emission limits and guidelines for carbon dioxide emissions from fossil generation, this could hurt gas-