U.S. oil and gas companies are licking their chops over the prospect of deregulation, but they could be faced with too much of a “ good thing. ” Historically low natural gas prices are already throwing markets into turmoil. Incremental gas production unleashed as a result of a less stringent regulatory environment could exacerbate some of the challenges gas and power market players currently face. Wholesale power price weakness is eroding the economics of generating electricity in deregulated markets and depressed benchmark gas prices are weighing on gas producer profitability. Increasing gas production volumes would likely amplify these challenges. The Trump administration has made clear that scaling back regulations in an effort to give corporations more operational freedom – particularly in the energy sector – is a high priority. And companies are excited about the prospect of navigating fewer regulations, even if some long-term policy uncertainty remains. “ We […]

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