Recent times and events have seen energy rates soaring across the US. For example, in four key states – New York, Florida, Illinois, and Hawaii – rates are up approximately 15%, according to the New York Times.

The New York Times goes on to say that overall energy rates rose approximately 4% from last February to this February. And with temperatures heating up, we are now entering the time of the year that features higher energy usage and, of course, even higher summer rates.

The truth is several factors are causing energy rates to spike, including the ongoing Russia-Ukraine War and the high cost of inflation, which has already produced year over year consumer price increases of 8.5%, according to the US Chamber of Commerce.

The chamber also said that the 8.5% increase is the highest inflationary rise in over 40 years.

Perfect Storm Causing Increase in Energy Prices

But while current events have impacted energy rates, experts quickly point out that rates were rising even before today’s events.

For example, gas prices were up 40% in the year before the Russia-Ukraine War, and the Global Energy Institute reported in its 2021 Electricity Price Map that electricity prices rose 5.6% last year.

Experts say this indicates that supply and demand is another significant factor affecting energy prices. 

To summarize, experts point to many factors, in addition to current events and supply and demand that are driving energy prices higher. Those additional factors include supply chain delays, labor shortages, infrastructure issues, and a lack of government action to address these issues.

The experts also agree that one of the best ways to stop rising prices is to ramp up production – and that means that current under-the-radar microcap stock companies could soon find themselves in the spotlight.

Here is a microcap energy producer to watch as energy prices rise and additional production is sought.

Journey Energy (OTCMARKETS:JRNGF)

Journey Energy, formerly Sword Energy, is a company that was founded in 2007 in Calgary, Canada. It is active in the exploration, development, and production of crude oil and natural gas at its mining site in Alberta, Canada.

Journey Energy is a company that has been on a roll lately. It posted net income of over $99 million in 2021 – a 275% increase over the previous year.

It also had more than 326% EBITDA growth and sales growth of more than 80% in 2021. This company had a market value of $259.9 million in 2021 but is quickly graduating from microcap status to small-cap status this year. 

In other words, the market is now catching on to this potential powerhouse, which means potential investors should start doing their due diligence right away.

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