Record Heating Season Fuel Prices Predicted

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Eric Johnson

Mod Emeritus
Nov 18, 2005
5,871
Central NYS
I couldn't get the link to work, but here's the text of the article:

WASHINGTON (Reuters) - U.S. consumers are expected to pay record prices for heating oil, electricity and propane to warm their homes this winter, and low-income families will need government help to cover those bills, government energy officials said on Tuesday.

Heating fuel expenses this winter will be highest for heating oil, with the average family paying $1,834 for the season, up 28 percent or $402 from last year, according to the National Energy Assistance Directors' Association.

The group expects propane costs to average $1,732, up 30 percent or $384. Consumers that rely on electricity for heat will pay $883 this winter, up 7 percent or $58.

Natural gas expenses will be the cheapest of the major heating fuels, averaging $881, up 5 percent or $50, the group said.

Mark Wolfe, the group's executive director, called on the Bush administration to immediately release money from the government's Low Income Home Energy Program, commonly known as LIHEAP, to help poor families pay their heating bills as well as cover past-due high cooling bills from the summer.

"These record prices will place a significant burden on low and moderate income families this winter with record high prices," Wolfe said.

The group points out that poor households pay a higher share of their income for heating costs than other families.

During 2005, energy expenses accounted for 20 percent of the income of households that received LIHEAP assistance, compared to only 3 percent for higher income families.

The group's report is based on preliminary heating fuel estimates from the U.S. Energy Information Administration. The EIA, which is the Energy Department independent analytical arm, will issue its official winter forecast on October 9.
 
I hate to see people suffer but it does make you look like one smart cookie for buying a wood stove/insert. I am even adding new windows to the mix again this year. 4 windows on the main level to go after I put in 3 today after work. I had figured 2 1/2 years to payback with getting the wood for free after gas etc. Is that about the norm?
 
Metal said:
Kind of like the $4.00/gallon gas that was predicted this Summer. If someone can "accurately" predict the prices of oil futures he/she would be a rich man/woman! Kind of like the "Accurate Storm Team 12 Super Digital Doppler Seven Day Forecast " I see each night on the news that is wrong two days out.

Accurate, dat.

Probably propaganda put out by the hearth industry trying to jumpstart sales!
 
according to the National Energy Assistance Directors’ Association...called on the Bush administration to immediately release money from the government’s
This is an organization that makes its living by "directing" energy assistance, boldy calling for more and sooner taxpayer money. Even if they are legit, this appears to be the source of their own overhead and expenses. Why else the rush? Don't fall for it "Bush adminsistration".
By my calculation, they expect No. 2 oil to retail for $3.50/gal on average, (not peak). That's high all right.
 
I don't think it's the norm, but it's about what it will take me. It depends on what you put into it. If you pick up a $2K stove, it's going to take longer to break even than a box store clearance model.

Matt
 
Is Natural gas the cheapest of the three because it's going to be cheaper per btu, or is it the cheapest because alot of people who use it are in milder climates?
 
Eric Johnson said:
The group expects propane costs to average $1,732, up 30 percent or $384. Consumers that rely on electricity for heat will pay $883 this winter, up 7 percent or $58.

Natural gas expenses will be the cheapest of the major heating fuels, averaging $881, up 5 percent or $50, the group said.

Is this a typo??
Propane costing twice as much as Electrical heat??
Am I reading this wrong??

Rob
 
I agree Karl, those figures could easily be swayed by either taking the average national home and applying the average national cost per btu for the particular fuel or trying to find the home with the biggest heating load and fueling it from the most expensive source of that particular fuel. If a guy in Minnesota heated with electricity wouldn't he spend more than 800$ per year?
 
Highbeam said:
I agree Karl, those figures could easily be swayed by either taking the average national home and applying the average national cost per btu for the particular fuel or trying to find the home with the biggest heating load and fueling it from the most expensive source of that particular fuel. If a guy in Minnesota heated with electricity wouldn't he spend more than 800$ per year?

That caught my attention, too. I'm guessing that the average electric heat consumer lives in an apartment or a trailer or some other small home, so that their average bills are lower. Obviously, if you calculated it at cost per btu, the electric users would be at the top of the list, cost-wise. Not sure about the propane, though everyone I know who heats with it is always complaining about how bad they're getting hosed by their local supplier. If it's a cold winter in the Northeast, you can pretty much count on heating oil prices going through the roof.
 
Eric Johnson said:
That caught my attention, too. I'm guessing that the average electric heat consumer lives in an apartment or a trailer or some other small home, so that their average bills are lower.

Or one of the 4,000 sq. ft. McMansions in Virginia with dual zone heat pumps. Or pretty much any house here.

I know, I know. We don't have winter here. Just a New England fall from December to March.
 
EatenByLimestone said:
I don't think it would be a problem if people would turn down the thermostats a bit.

Matt
That is one of the reasons I decided to install a stove. Every year I kept turning down the thermostat. When I got to 65 I thought I had to do something about this.
 
Good news for selling more wood and pellet stoves. Hopefully Quadrafire (and now Harman) can keep up this year.
 
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