How can you protect your business when the climate and external environment around you changes?

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Our international team of trade experts is here to help. Contact us to learn more about our coverage options for the Energy & Fuel Industry or request a free, no obligation quote that includes credit reports for your largest trade partners.

Energy & Fuel Industry

energy and fuel

From increasing electricity consumption to external issues like port closures and fluctuating oil prices, the landscape for the energy and fuel industry is constantly shifting. Climate change exacerbates these challenges, with rising temperatures, severe weather events, and the need for cleaner energy solutions. At Atradius, we recognize these pain points and offer solutions to help businesses navigate through uncertainty. Our trade credit insurance provides peace of mind, protecting your company’s commercial accounts receivable from the unforeseen consequences of buyer default. Through risk management, bank funding support, and enhanced credit management, we empower businesses to thrive in a volatile market.

Curious About Pricing?

Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.

electricity consumption energy
Climate Change & Electricity Consumption

Global temperatures are rising, wildfires, drought, and high electricity demand put stress on the US’s energy infrastructure. Severe weather is projected to worsen as well with eight of the ten most destructive hurricanes of all time having happened in the past ten years. Experts are working on making fossil energy technologies cleaner and less harmful to people and the environment as well as increasing the efficiency of appliances, homes, businesses, and vehicles. U.S. electricity generation from wind turbines decreased for the first time since the mind- 1990s in 2023 despite the addition of 6.2 gigawatts of new wind capacity last year. Learn more about the wind generators here.

Hotter summer temperatures this year compared to last year will increase residential electricity consumption by almost 4% in 2024.

energy external issues
External Issues

After the Port of Baltimore was closed due to the collapse of the Francis Scott Key bridge, forecasts for coal exports decreased by more than 30% in April and 20% in May. Baltimore is the second-largest export hub for coal in the United States.

Oil Prices continued to increase in March as a result of the heightened geopolitical risk related to the attacks targeting commercial ships transiting the Red Sea shipping channel and general elevated tension in the region.

Global Oil Markets

OPEC+ extending crude oil production cuts, the forecast for global oil production growth has decreased. Lower growth contributes to significant global oil inventory declines for Q2 of 2024. Brent crude oil spot price will increase because of falling inventory. The EIA reported that on June 2nd, new global oil production targets were announced, resulting in extended voluntary production cuts by countries such as Saudi Arabia and Russia. These cuts are set to be phased out by September 2025. While these cuts are constraining the growth of global oil production, production outside of OPEC+, especially in the US, Canada, Brazil, and Guyana, remains robust.

Benefits to Credit Insurance

Trade credit insurance is a risk management tool that can help protect your company’s commercial accounts receivable from the devastating effects of loss caused by a bankruptcy or protracted default of your buyers. No company wants to face the unknown. At Atradius, we give our clients peace of mind knowing that their policy protects them from a customer’s sudden inability to pay. Especially in an industry that must adhere to high-cost environmental regulations, trade credit insurance can help with cash flow and to ensure companies are financially stable.

Risk Management

Atradius analyzes industry trends and the risk of every buyer to ensure you are working with stable customers. If a previously stable customer starts showing signs of deteriorating payment trends, Atradius alerts you right away so you can take steps to protect and insure your accounts receivable. By evaluating the supply chain from every angle Atradius can alert clients to trouble coming down the pipeline before there is a loss.

Bank Funding

Companies in the midst of an intense growth phase may need to put up accounts receivable as capital to receive additional funds from a bank. Having a trade credit insurance policy with Atradius that mitigates your risk means banks are more comfortable loaning the funds you need.

Enhanced Credit Management

Atradius can offer companies a team of experts to support their trade credit insurance needs. Atradius is a global company with a presence on every continent. With innovative services and practical tools to manage a company’s receivable and build the foundation for solid business growth and success.

Get Your Questions Answered or Request a Quote

Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.