17 Mar 2014 More
Record Winter Drives Natural Gas Prices Upposted by Brown Books @ 08:12 0 Comments
Low temperatures in January especially caused inventories to deplete for not just natural gas but heating oil and propane as well. Difficulties getting heating materials to the Northeast drove prices up dramatically. The price for natural gas had at one time doubled.
From October through March, those household which depend mainly on propane saw a 54 percent increase in costs. Propane heats as much as 7 percent of homes in the
Midwest. Propane is the heating material of choice for
many rural environments.
Compared to last winter, heating projections for natural gas expenditures are expected to rise by 10 percent. Heating oil is expected to increase by 7 percent while electricity overall should see a 5 percent rise.
The EIA says that its projections are up from earlier forecasts, this as the winter was even more harsh than anticipated. Natural gas may even come in under original projections of 13 percent. Propane had been anticipated to rise by 9 percent.
For the months October through February, average heating days were by 10 percent over the 10-year average. The same measurements were up by 13 percent over the same time last year.
While temperatures were down on average by as much as 19 percent in the South and the
Midwest, heating fuel costs were highest in the
Northeast. This is because, despite and
actual rise in temperatures by 5 percent, heating materials were short in
supply. Households in the Northeast and Midwest are expected to be impacted the most.
Average household bills are expected to remain about the same as the rise in prices will not be reflected for some months to come. In the South and the West, while temps were well below average, still weather there was not nearly as severe as in the colder regions.
Also from Brown
If you're in the oil business then you know just how important your tools are. Come check out all the great tools at our news tools division site, BrownToolBox.com.
If you like keeping up with news and events, we invite you to come see our new oil & gas media site, BrownPetro.com.