Lubershain: Gas utilities face a death spiral as volume declines
Andy Lubershane · The future of natural gas · Dec 9, 2021 · at 16:04
Andy Lubershain (Head of Research at Energy Impact Partners) explains how building electrification could trigger a compounding economic collapse for gas utilities.
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“And what that's manifesting in partially right now is like threats to natural gas where, you know, there's a lot of attention being paid to displacing natural gas... And then, you know, most importantly, it means that natural gas infrastructure owners with declining volume of sales need to end up raising their unit prices to cover the fixed costs of their infrastructure with declining volume. And then as you described with the initial thesis from 10 years ago in the electric utility business, that cycle repeats itself and leads to this death spiral”
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