Lower heating bills expected this winter

U.S. Energy Information Administration reports shows expected lowered demand for fuel this winter, according to a report issued by Administrator Adam Sieminski.

Winter Fuels Outlook:

“U.S. households in all regions of the country can expect to pay lower heating bills this winter, because temperatures are forecast  to be warmer than last winter and that means less demand for heat.”

Propane:

“The propane market starts this winter in better shape than last winter.”

“Midwest propane inventories toward the end of September were about 15% higher than at the same time last year.”

“Retailers in several Midwest states also report many customers are filling their propane tanks early.”

“Midwest households that paid extremely high prices for propane last winter will see the biggest drop in their heating bills, which on average should be almost $800 less for the season.”

Natural Gas:

“U.S. natural gas inventories have recovered from their big drawdown last winter and are expected  to exceed 3.5 trillion cubic feet  at the start of this year’s heating season.”

“Rising domestic natural gas production this year, along with a mild summer that resulted in less electricity generation to meet air conditioning demand, contributed to the record build in natural gas inventories.”

“Even if this winter is as cold as last year’s, the net withdrawal from natural gas inventories over the heating season would not be as large as  last winter’s drawdown because domestic gas production this winter is expected to be significantly higher than it was last winter.”

Heating Oil:

“Heating oil prices are expected to be lower this winter because crude oil prices are lower.”

Electricity:

“While electricity prices are expected to be higher this winter, households that rely on electric heat will see lower electric bills compared to last winter because temperatures are forecast to be warmer and that will result in less heating demand.”

The U.S. Energy Information Administration released its new Short-Term Energy Outlook, which includes EIA’s forecast for winter heating fuel demand and household heating expenditures this winter.

“U.S. households in all regions of the country can expect to pay lower heating bills this winter, because temperatures are forecast  to be warmer than last winter and that means less demand for heat.”---EIA Administrator Adam Sieminski

graph of heating degree days and average winter household expenditures for heating fuels, as explained in the article text

Source: U.S. Energy Information Administration, Short-Term Energy Outlook, October 2014

EIA's full Outlook can be downloaded at: http://www.eia.gov/forecasts/steo/

EIA’s forecast table on winter heating fuel costs by region can be viewed at:http://www.eia.gov/forecasts/steo/tables/pdf/wf-table.pdf

EIA has a “Today in Energy” article that looks at household heating bills this winter:  http://www.eia.gov/todayinenergy/detail.cfm?id=18291