Oct. 12, 2009: Energy Information Administration Forecasts Lower Heating Bills This Winter
The EIA’s Short-Term Energy Outlook attributes most of the savings to lower fuel prices, particularly for natural gas, which is experiencing a slump in prices due to a growing supply that currently exceeds the demand. The EIA expects natural gas inventories to reach a record high of more than 3.8 trillion cubic feet by the end of October.
Propane is produced during natural gas processing, so propane inventories are also higher than normal. As a result, households heated with these fuels will achieve the greatest savings this winter, with natural gas users seeing a 12 percent decline in winter heating bills and propane users seeing a 14 percent decline. Those using heating oil or electricity are projected to experience more modest declines of about 2 percent from last year. The EIA defines the winter heating season as running from Oct. 1 to March 31 of the following year.
Publication date: 10/12/2009