The energy landscape constantly responds to changing factors, including evolving regulations, high interest rates or material costs, and other disruptors. Commercial and residential fuel demands reflect a desire for cleaner fuel alternatives while supporting growing energy needs. Here, you can learn more about propane, heating fuel, and diesel price projections and trends to watch out for in the fuel industry.
WHAT IS THE CURRENT STATE OF THE FUEL INDUSTRY?
The demand for clean energy is gaining speed, causing oil producers and others in the industry to keep their sights on proper investments and make strategic decisions. The United States remains a top producer of natural gas and oil, but rising demands for achieving climate goals are shifting the industry. Despite disruptions in the industry, global demand remains on track to rise for the next few years before slowing toward 2028. Reports highlight that major producers will continue building capacity despite the slowing growth.
FUEL PRICE FORECAST 2024
Fuel prices show unique trends for the upcoming year and the following years. As home and business owners find new ways to fuel their homes, vehicles and equipment, changes in the oil and gas industry are bound to emerge. Propane, diesel and heating oil remain top energy sources for residential and commercial purposes, so it’s worth taking a look at how these sources will perform in the upcoming months.
Future Propane Prices
Many Americans have considered utilizing propane gas for cooking, hot water systems, and heating their homes and businesses for several years. Propane has a lower carbon content, making it a cleaner option compared to other fuel options while possessing a high energy efficiency.
More than 50 million American homes use propane, with nearly 12 million homes relying on the fuel for water or space heating. Industries without natural gas pipelines often rely on propane for on-site appliances like refrigerators, engines, boilers and furnaces.
The U.S. Energy Information Administration reports mixed trends in prices for propane across the country. Some locations enjoy lower averages per gallon than others. For example, while prices in the Midwest sit around $1.985 per gallon, the residential prices on the East Coast average more than $3.00 per gallon. However, growing inventories in the country can translate to lower delivery prices, offering a more cost-effective solution for the future of propane.
Diesel Price Forecast
Diesel is a reliable source for many vital industries and equipment pieces. Many modern advancements and increased local access have made this fuel cleaner while providing reliable energy. Diesel prices have fluctuated over the years, and in 2023, diesel prices reached a record high in the United States. Already, prices have decreased for 2024, but many factors dictate the average cost of fuel, and there will likely be some spikes throughout the year.
Diesel fuel is often more expensive than gasoline and has been more expensive almost continuously since 2004. The demand for diesel is still relatively high, being a primary energy source for barges, trains, trucks and boats. Expectations hold that diesel prices has decline in 2024, providing relief across many industries and for homeowners.
Heating Fuel Price Forecast
Heating oil is often an energy source for fueling furnaces. Although there are some benefits to utilizing heating oil, it is less eco-friendly than other fuels. Prices for heating oil are often lower in the early fall or late summer, but prices for the oil over the next few years will fluctuate. In 2024, heating oil prices will likely fall, staying on trend with the falling crude oil prices since 2022. Other heating alternatives are growing in demand, lowering the price of heating oil.
TRENDS IN THE FUEL INDUSTRY
The oil and gas industry still has financial strength, allowing it to seek progress in low-carbon energies and emissions reduction. Investigating new energy sources and making current sources cleaner may drive the industry in the upcoming years. The oil and gas industry will likely explore five trends this year:
Energy Transitions
Oil and gas companies are increasingly interested in investing in and exploring cleaner energy sources. However, steering toward greener solutions is complex, meaning that each business must investigate the risks and benefits of initiatives for their specific market. Companies will likely evaluate internal considerations like their operational efficiency and emission reduction, as well as external considerations, such as new regulations and policies. As governments and groups of people make new demands, the fuel industry will likely shift focus and redesign its strategies.
Critical Minerals
Minerals like cobalt, nickel, manganese, graphite and lithium are facing a growing demand in the fuel industry. These critical minerals are essential for energy density and battery performance. As the fuel industry shifts toward cleaner energy, these minerals are increasing in demand because they help systems remain secure and resilient while reducing emissions.
Downstream Industry
Downstream operations refer to functions after the oil and gas production phases. The downstream industry refines crude oil into consumable products and markets the fuel to consumers. Because reports expect global demand to decrease within the next few years, a new focus on downstream operations will be essential for maintaining financial stability. Oil and gas companies will likely investigate biofuels and electric opportunities while looking for low-carbon chemicals and carbon capture to better market their products.
MAKE FUEL EASY WITH FOSTER FUELS
In a constantly evolving industry, it’s essential to have a reliable solution for your home and business needs. Foster Fuels offers commercial and residential fuel services. We provide petroleum nationwide and proudly boast the title of the nation’s leading emergency fuel delivery solution for logistic companies. Our team aims to fulfill the constantly evolving needs in the fuel industry while providing quality services and products. We’re at the forefront of industry-leading advancements, bolstering more than a century of experience.
Whether you need residential fuel services or commercial fuel delivery, Foster Fuels is here to help. With us, you can find solutions to meet your needs for heating oil, propane, diesel, kerosene, gasoline and more. You can easily contact our team for assistance with deliveries, services, installation estimates and appliance information.