With the cold months on the way, uncertainty remains for energy costs for the United States amid a global energy crisis. Natural gas and oil prices are skyrocketing in Europe and in the U.S. drivers are feeling pains at the pump with the national average price of gas at its highest points since October 2014, according to AAA.
Carlson School of Management Professor Alfred Marcus is available to speak to the impact of the volatile energy prices on the nation and what Americans could expect in the coming months.
Alfred Marcus, Ph.D.
“In terms of natural gas, the U.S. is in better shape than Europe because we have a greater supply, making it relatively less costly. Our prices aren’t going to go up as quickly as the rest of the world, but they’re going to go up at least in the short run. It’s going to hit everyone’s pocketbook.”
“For the average American, higher fuel costs are going to impact distribution trucks and ships, raising the prices of goods and food. It’s not only your electric bill and heating bill. You’re going to see all prices go up to some extent in the economy.”
“Highly skilled workers are in demand and should take advantage of this moment, so you can get a job with an income that allows you to ride out the storm. If you are older, it’s going to be rougher unless you have specialized skills. As the higher prices take effect, it’s going to exacerbate that split of inequality in age and education differences.”
“The optimists out there are saying all this is going to turn around and it's all temporary and once COVID-19 fades further, we'll get the supply chains more in order. The pessimists have been more reserved in speaking about it because they don't want to alarm markets and alarm people. Ultimately, this situation with the supply chain bottlenecks, shrinkage of the workforce, the pandemic – it’s unprecedented.”
Alfred Marcus is the Edson Spencer Endowed Chair in Strategy and Technological Leadership in the Carlson School’s Strategic Management and Entrepreneurship Department. He also holds a faculty position in the Technological Leadership Institute at the University’s College of Science and Engineering. His research covers a wide range of topics including the oil and natural gas industry, sustainability, global economy, the food industry, and more.
About the Carlson School of Management
Located on the University of Minnesota Twin Cities campus, the Carlson School of Management exemplifies a commitment to excellence through a focus on experiential learning and international education, and by maintaining strong ties with the Minneapolis/Saint Paul business community. Through its undergraduate and graduate programs, the Carlson School offers access to world-renowned faculty members and an alumni network of 55,000 people. To learn more about the Carlson School of Management go to carlsonschool.umn.edu.