The Annual winter fuel costs for many families are much higher than expected and cost more than anticipated, according to the Energy Information Administration's seasonal forecast of heating in the winter of 18 months.
We expect that households across the United States will spend more on energy this winter compared with the past several winters because of these higher energy prices and because we assume a slightly colder winter than last year in much of the United States, U.S. Energy Information Administration said in the report
Prices are projected to increase by more than 40 percent for households who use heating oil, impacting the Northeast in particular; and will increase 30 percent for natural gas and 54 percent for propane. If we heat electricity, we can see 6 percent growth in electricity.
Shannan Phillips Hunt, a 47 year-old personal trainer in Bloomsbury, New Jersey, is fearful of how her family s already stretched budget will get further stretched by the increased heating costs. She and her husband work two jobs each, but still feel like they are living paycheck to paycheck. Last winter, her bill was increased one third, she told NBC News.
We never changed our behaviors, we were doing the same things that we kept doing and it was unbelievable how much money we spent, Hunt said. What did you see? They replaced a drafty window with a new energy-efficient one this year and said they only turn on heat in the rooms where their dogs sleep — but the dogs are already in sweaters to avoid shivering.
As far as the middle class, we're all pinned off, Hunt said.
The production cuts made during the pandemic should be reversed as the global economy recovers in order to lower prices for consumers, Biden said.
The energy crunch is also pressuring prices in an increasingly interconnected global system. In Europe, natural gas prices are up 350 percent after a summer of high demand and low supply. That s pulling some natural gas from U.S. producers onto ships for overseas markets.
Crude oil has climbed over 60% this year, pushing up closely tied heating oil prices.
Some energy economists believe that oil and gas companies limited production in order to generate free cash flow and repair their balance sheets following years of low-profit growth following the reset of oil prices from more than $100 a barrel to $25 in 2014.
Shareholders have moved companies to expand capital discipline and concentrate on increasing dividends, said Paul Tice, senior energy analyst at Schroder Investment Management and adjunct professor of finance at New York University's Leonard N. Stern School of Business.
In 2019 US oil production was 12.29 m barrels per day. The EIA is currently producing 11 million barrels of oil per day.
When it comes to 2030 clean energy goals, oil production is likely to increase for at least the next decade as the U.S. aims to reduce emissions and stimulate the use of renewable energy sources. Americans should get used to cold winters with normal prices and mild winters that lead to a price spike, Tice said, noting: That's the new normal. Experts say homeowners can take several steps to control higher energy prices in the coming winter.
Insulation is the number one thing that saves money by creating an air ceiling. If you bought an expensive down jacket with holes in it, it's not going to work as well as one without holes, said Pascale Maslin of the Energy Efficiency Experts in Silver Springs, Maryland. She and her team conduct home energy audits, looking for where heat is escaping from the house and where improvements could be made.
Over 65 percent heat is lost in attic, Pascale said, and of sealing attics and crawl spaces, the first areas to look at are thermally insulated sheets and vents. She recommends either cellulose insulation or fiberglass insulation instead of spray foam, which can be difficult if not done properly and could lead to extended off-gassing.
Consumers should also look into upgrading their thermostat to a programmable one that keeps the heat off when the home is not occupied. They should also check with their state to see whether it offers rebates for new home energy upgrades like a heat pump.
Assistance programs also offer relief, such as the Low Income Home Energy Assistance Program LIHEAP Consumers can apply for local community assistance programs and check if their income for the past 30 days is below 200 percent of the poverty level. Other community programs and individual programs can offer utility assistance.