Winter Heating Bills Loom as the Next Inflation Threat

Electricity prices track natural gas. So prices will probably rise a lot and keep rising as natural gas export "heats up". There isnt any limit on the price and government subsidies arent allowed by trade agreements which require natural resources be sold to whomever pays the most for them. Can we compete with China for our natural gas? Probably not. Many people probably plan to burn wood, but hardwoods (the kind that are safe to burn) are expensive. Burning wood makes nasty pollution thats hurts the lungs. Many communities have made it illegal for that reason. Will the US be deforested by firewood seeking behavior like so much of the rest of the world is?

https://markets.businessinsider.com/commodities/natural-gas-price

What do you plan to do?

I am looking for ways to save money. I hate the cold.

This is a direct quote from the New York Times article. I wonder what all the advocates for LNG export will say. I would be surprised if they admit they made a mistake at all. They are so greedy and thoughtless. Also check out https://ShaleBubble.org

In the United States, the winter months account for about 50 to 80 percent of residential fuel consumption. And there is “a significant chance” consumers could face a “marked increase” in prices for heating, said Nina Fahy, an analyst for Energy Aspects, a research consultancy.

Last winter was warmer than average, and demand was abnormally low because of the pandemic. which led to residential energy bills that were comparatively low. This season, heating costs could rise to levels not seen for a decade, even if there isn’t a severe winter. Several factors — lower global fuel inventories, incentives for producers to let prices rise and a mismatch between supply and demand as economies emerge from the pandemic — may combine to push bills higher regardless.

Mark Wolfe, executive director of the National Energy Assistance Directors’ Association, a group of state officials administering aid to low-income households, says those living paycheck to paycheck, or just trying to save, aren’t going to be soothed by complex explanations about inventory levels, supply chains or global demand. When the bills start coming in December or January, he said, “the public’s going to get angry.”

Expert forecasts suggest that the southern half of the country, which has milder winters and relies on relatively cheap electricity for home heating, may enter spring largely unscathed. But the Northeast and the Northern Plains, as well as rural areas nationwide, are far more dependent on heating oil and propane, which are highly exposed to price spikes in commodity markets.