The eastern Ohio region is in for a long wait.
The region has been one of the most resilient markets for energy stocks, with prices often staying high even when energy prices have fallen in other parts of the country.
The outlook is even better for oil and gas producers.
The U.S. Energy Information Administration recently released its 2016 energy outlook, which forecasts the energy sector will be stronger this year than in 2015.
In other words, the industry has more than a little bit of time to recover, especially for companies that are expected to produce the majority of U.K. energy.
For that reason, some analysts are expecting oil and natural gas prices to stay high, even as oil prices decline and gas prices rise.
That’s the message from one company in western Kentucky.
Dominion Energy has been doing its own research for about a year and has concluded that it’s going to see energy prices continue to decline in 2017, said Josh Krumholz, president and chief executive officer of Dominion.
That said, Krumselz says the market will likely take a hit this year.
It’s likely to fall by around 40 per cent from its previous level in 2017.
It could be more.
Krumholts is worried about the future of the oil and gasoline industry in the western Kentucky region.
The region’s energy infrastructure is in dire straits.
The federal government recently passed legislation that requires that all oil and other gas wells drilled in the region have to meet certain environmental standards.
Krumhellz worries that could leave oil and fuel companies in the same position they were in in the Midwest and Great Plains in the early 2000s, when oil and oil shale companies had to compete with more environmentally friendly drilling methods and less pollution.
“It’s going get a little more difficult, but the market is resilient and it’s just a matter of time,” Krumenthal said.
Dominion, which is owned by CVR Energy, has been working for the last few years to figure out how it can help the energy industry.
Its latest research shows that Dominion is in a strong position to capitalize on the opportunities in the market.
“Dominion is the market leader in western KY,” said Krumfeld, who is based in Akron, Ohio.
“They’ve done a great job of diversifying into their own business, and the opportunity is there for them.”
That means a lot of energy companies in western and central Kentucky, like Dominion, have a good chance of making a lot more money this year because they can diversify their assets.
But there are a lot that will be tough to do.
Kramholz says it’s still early days for the energy market in western Kentuckias northern Ohio Valley.
He expects that the market may not recover in 2017 and will likely fall further, down by as much as 40 per-cent from its recent level.
That could leave the energy companies with a lot less cash to spend on other things like equipment.
That would mean that the companies that have been doing well in the area in the last couple of years might not be able to make up for lost profits this year and 2018.
In the past, Kromholz said he believes the energy markets in western Ky had a lot going for them.
There were more jobs, there were a lot fewer people in the industry, and there was a lot lower energy costs than in some other parts, he said.
“But that doesn’t mean the economy is perfect.”
Krumfeld believes the market could be better this year, especially because the market has more time to heal itself.