Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. home heating bills expected to surge this winter, EIA says

EconomyOct 14, 2021 06:47
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Snow covered transfer lines leading to storage tanks at the Dominion Cove Point Liquefied Natural Gas (LNG) terminal in Lusby, Maryland, March 18, 2014. REUTERS/Gary Cameron 2/2

By Scott DiSavino

(Reuters) -U.S. consumers will spend more to heat their homes this winter than last year due to surging energy prices, the U.S. Energy Information Administration (EIA) projected in its winter fuels outlook on Wednesday.

Energy prices have risen sharply worldwide, causing power crunches in large economies like China and India.

The United States has so far not seen the same effect, even though prices of fuels from natural gas to heating oil have risen to multiyear highs and will hit household finances as the weather turns colder.

“As we have moved beyond what we expect to be the deepest part of the pandemic-related economic downturn, growth in energy demand has generally outpaced growth in supply,” EIA Acting Administrator Steve Nalley said in the release.

"These dynamics are raising energy prices around the world."

Nearly half of U.S. households rely on natural gas for heat, with the average cost for those homes expected to rise by 30% to $746 for the October-to-March period from the same time a year earlier, the statistical arm of the U.S. Department of Energy said.

The average cost for a home with natural gas last winter was $573, far cheaper than other major sources of heat. Natural gas prices have risen sharply in recent months due to shortages in places like China and Europe, where demand has rebounded from the pandemic. The United States can only export a small portion of its natural gas supply due to limited terminal space for liquefied natural gas (LNG) export.

Electricity is the primary heating source for about 40% of homes. It is more expensive than natural gas at an estimated $1,268 per household this coming winter - but that represents a more modest 6% increase from last winter.

Less than 12 million American households rely on heating oil or propane - about 9% of the roughly 129 million U.S. households - but they will see the biggest hit. Those costs are expected to rise by 54% and 43% respectively, the EIA said, from last winter.

Changes in prices of heating oil and propane pass through much more quickly to consumers. Homes that rely on heating oil are concentrated in the U.S. Northeast, and the biggest users of propane are in the upper Midwest and northern Plains states.

Last year energy prices plunged to multi-year lows due to coronavirus demand destruction, particularly natural gas, the most popular U.S. heating fuel, which hit a 25-year-low.

Depending where people live, the EIA said residential costs will rise to about $11-$14 per thousand cubic feet (mcf) for natural gas, about $2.50-$3.50 per gallon for propane, and $3.39 per gallon for heating oil.

That compares with last winter's residential costs of around $8-$12 per mcf for natural gas, $1.50-$2.50 per gallon for propane, and $2.55 per gallon for heating oil.

U.S. home heating bills expected to surge this winter, EIA says
 

Related Articles

Dollar dips, while sterling, NZ dollar gain
Dollar dips, while sterling, NZ dollar gain By Reuters - Oct 20, 2021

By Karen Brettell NEW YORK (Reuters) - The dollar pared losses on Tuesday as Treasury yields climbed but remained lower on the day as other currencies, including sterling, were...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email