A report released by the Energy Information Administration on Wednesday states that no matter what type of fuel consumers use in the winter, energy consumption will rise sharply this winter.
The EIA predicts that U.S. households that initially use natural gas to heat their homes will probably spend an average of $ 746 this winter, which will run from October to March, 30% more than the amount they spent last winter. According to the EIA, about half of homes in the United States use natural gas to heat spaces and heat water.
Natural-gas futures have more than doubled so far this year, with energy deficits in Europe and Asia contributing to a tight fuel supply. Natural Gas NGX21, November at the New York Mercantile Exchange
Standing at 5. 5,505 per million British thermal units on Tuesday, the previous month’s contract price for this month fell more than 6%, but rose 117% year-over-year, according to Dow Jones market data.
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The increase in natural gas spending “comes from both higher expected prices and higher expected use,” the EIA said in its Winter Fuel Outlook report.
EIA Acting Administrator Steve Naly said in a statement: “As the deepest part of the epidemic-related economic downturn, we have come a long way from what we expected, so the increase in energy demand has been much more than the increase in supply.” “This dynamism is pushing up energy prices around the world.”
For the week ended October 1, the U.S. natural-gas supply stood at 28.28 trillion cubic feet, up 5,322 billion cubic feet from a year earlier and 16 billion cubic feet more than the five-year average, according to the weekly EIA report released Thursday. The EIA will provide weekly updates on those supply figures on Thursday morning.
Households that primarily use heating oil, which is common in the Northeast, will spend% 1,734%% higher than last winter. Those who use propane to heat the south and northeast and midwest will spend an average of 1 631 – 54% more than last year, the EIA said.
Households that initially use electricity to heat their homes will spend an average of 26 1,268 on electricity bills this winter, 6% more than last winter, the EIA said, with about two-thirds of homes in the south initially heating with electricity.
The EIA also noted that the National Oceanic and Atmospheric Administration expects somewhat winter winters this year compared to last year, so these cooler temperatures could increase U.S. energy use to warm this winter.
“The high cost of global and domestic energy that has begun to grow again as a result of the economy is set to transform into a larger household bill for energy this winter,” Nally said.
The Winter Fuels Outlook complements the government agency’s short-term Energy Outlook (STEO), which was also released on Wednesday. The STEO report raised Henry Hubb’s 2021 forecast for natural gas prices to 4. 4.17 per million British thermal units, up 14.9% from last month’s forecast. This raises the price forecast for 2022 by 15.6% to $ 4.01.