Winter Heating Costs Not Likely to Rise This Year
Filed Under: Environmental News on October 19, 2009
Most areas of North America (both the U.S. and Canada) will have harsher than usual weather this winter. Most of us will have it colder than we usually do and some of us will have more snow and ice than we’ve had in recent years as well. These announcements are often accompanied by a twinge as we think about the jump in home heating costs we’ll have to endure along with the nasty winter weather.
Well, take heart. After reading this winter’s predictions in the Old Farmer’s Almanac, which is a much more reliable source for weather information than the National Weather Service has ever been, I had the same reaction. Even though our energy use in our home is much lower than the national average, I still get nervous about the 2-3 fold jump our heating bills usually undergo in the winter.
Well, turns out I didn’t have much to worry about. I called our gas company and was given some information. Turns out, peak prices for heating gas and oil usually happen in September and October of each year, as the companies pumping the fuel are always well ahead of the market and the prices right now reflect what will be the cost for fuel in January and February–the middle of winter.
Two things greatly affect the winter heating fuels market: the U.S. government’s release of data concerning their “strategic reserve” supplies and the overall national supply in the fall and current production rates and costs.
The government has released their supply data (nearly peak) and current production rates are still high with costs being normal. Both of these announcements meant that the energy market on Wall Street barely even noticed any change.
The only change came because of the expected rise in cost of crude oil, which usually doesn’t change things much for those of us who use natural gas (the vast majority of the nation) to heat their homes. Current natural gas supplies are about 15% higher than the five year average, which means prices have likely peaked already for the winter.
So what you’re paying right now is probably what you’ll pay (per unit used) all winter. For our house, that’s great news because our current gas bills are a few cents per unit cheaper than last year. Talking to family in Utah and Idaho, the story is about the same.
Watch this space as over time, I’ll be giving you information on how our home energy use has been cut to 1/3 the national average without living like cavemen.
