SACRAMENTO, Calif. — Today's Why Guy question is: Why are home heating costs burning a hole through our wallets?
If you use electricity to stay warm, the U.S. Energy Information Administration estimates that you'll pay about 6% more this winter and 30% more if you heat your home with natural gas.
It's mostly about supply and demand. There are several factors that have affected the supply and demand of the resources needed for home heating, which drives costs up. Here's why that’s happening.
The nation's supply of natural gas has increased steadily since 2005. In recent months, demand has increased faster than the production of natural gas.
While many people were working from home last winter, people are now headed back to the office increasing the demand for heating there.
The U.S. has less natural gas in storage than it has in the past. The U.S. now exports a great deal of natural gas to other countries.
If we didn’t export so much, it might keep the costs down, but according to energy expert, Dr. Tom Lawrence, it wouldn’t be a good political policy.
Less than 10% of the U.S. heats with either propane or heating oil and supply issues are driving up the costs of those products. The cost of propane alone could go up as much as 83% this year.
Find tips to save money heating your home this winter HERE.
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