American households that run on natural gas can expect high bills this winter.
How high prices go depends on a lot of factors, including whether the war in Ukraine tak
The Energy Information Agency predicted that Americans will have an expensive winter due to increased natural gas prices.
The EPA stated in research released on Monday that US families who mostly use natural gas for heating will spend $931 on heating on average this winter. This is a 28% ($206) increase over the previous year. Higher retail natural gas costs are the major cause of the anticipated rise. This winter, the EIA predicts prices would increase 22% from a year ago to $15.95 per thousand cubic feet, with the Midwest expected to bear the brunt of the increase.
“This winter, we expect colder temperatures and slightly more household consumption to contribute to higher natural gas bills compared with last winter,” the agency said.
In the US, natural gas costs have increased dramatically. Despite a slight dip in prices in recent months, the EIA anticipates a recovery, with Henry Hub prices predicted to increase by 54% from winter of 2017. Neal Dingman, a Truest analyst, recently predicted that this winter will see a 60% increase in US natural gas prices due to inventory levels being close to their lowest point in five years.
US natural gas supply has come under pressure after the nation lent a helping hand to Europe by exporting huge amounts of liquefied natural gas during its crippling energy crisis. It even rose to become the world’s largest LNG exporter during the first half of 2022.
The EIA’s report comes as the Biden administration braces for a tough midterm election cycle. President Joe Biden has been working to help ease soaring energy bills that have contributed to 40-year high inflation running through the US economy.
