Temps are dropping as winter gets closer and homeowners are trying to prepare. This is the time of year when most of us start weatherstripping the doorways, tuning up that old heating system and sealing the windows. It is often challenging knowing how to budget for the upcoming season for heating fuel costs. In this article we will be discussing some things homeowners should make themselves aware of about the coming winter season, especially if they depend on natural gas to heat their homes.
Natural Gas Prices & Shortages
When trying to determine what you should expect from this years cold season, there is no better source than the experts to help predict what is in store. That will provide you with the information required to as accurately as possible prepare ahead. If you plan to heat your home with natural gas this year, you should know that the experts claim there could be an interruption in natural gas service this year and that will increase the cost of heating your home this 2016-2017 winter. It is never nice being left without heat in the cold of winter because of an interruption of service. The article below by the American Energy Coalition discusses that.
Strong demand has driven natural gas prices to their highest point in 20 months, and traders are finding encouragement to bet on higher prices ahead, according to a recent Wall Street Journal article.
“Historic heat has caused record demand for gas-fired power at a time of declining supply growth, persuading many to bet that the [natural gas] glut will ease and lift prices just ahead of the high-demand winter-heating season,” The Journal wrote. “That could cause prices to keep shooting higher if winter produces strong demand.”
“The United States must grow supplies from a virtual standstill at the present time and begin a sharp acceleration by the early 2017 at the latest, if it is to avoid major shortfalls in storage by the end of March,” FirstEnergy Capital Corp. in Calgary, said in a note to clients quoted by The Journal. “It expects prices to rise steadily from mid-October.”
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No one can question the fact that it will cost homeowners using natural gas to heat their homes more this winter. With weathermen predicting a colder and longer winter this year in the Eastern United States over what we had last year, and increasing gas prices, homeowners should get ready for the colder winter ahead. The article by AEC mentions that lack of adequate storage which means there is no certainty that there will be enough supplies to get through to warmer weather.
Expect A Cold Winter
Severity of weather impacts the amount of natural gas you will need to keep your home warm. Shorter, milder winters see homeowners enjoying lower heating costs and there is not as much demand for natural gas. The converse is true for colder and longer winters as well. Longer, colder winters contribute to higher demand for natural gas and higher prices. The article that follows was published in the Farmer’s Almanac and discusses their prediction for the coming winter season of 2016-2017.
While winter officially starts on December 21, 2016, the Farmers’ Almanac predictions point to some snow and cold conditions in mid-November in the Northeast, Great Lakes, and Midwest.
Get the snow blowers ready in the East and umbrellas in the West! An active storm track will deliver above-normal precipitation to the Southeast, Northeast and New England states throughout most of the winter, especially February.
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The weather outlook for the winter season of 2016-2017 is also discussed in the Wall Street Journal.
Commodity Weather Group LLC in Bethesda, Md., this week updated a cold winter outlook with even colder temperatures, the article states. “Nearly the entire eastern half of the country is likely to get temperatures averaging 2 to 3-degrees-Fahrenheit-below normal in November, it said. Extreme cold is likely to linger in some parts of the North through March, pushing the need for heat up 8.2 percent over the 10-year average, by the metric of heating-degree days.”
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Homeowners using natural gas to heat their homes should know about these predictions of higher heating costs. This is due to the predictions of higher natural gas prices and colder winter months ahead. Something else that will impact the cost of natural gas is the pressure from increased demand.
Abundant Supplies Of Heating Oil
Unlike with natural gas there are no predictions of shortages of heating oil and this means homeowners using this fuel to heat their homes have nothing to worry about. While it is true that there are predictions of a longer and much colder winter ahead of us, heating costs should not experience a significant increase. Dealers will not have interruptions to supplies because of increased demand. This is discussed in an article published in Fuel Oil News.
The abundance of inventory is due to the fact that the U.S. has been producing very large quantities of crude oil, Levine said. Even though U.S. crude oil production has fallen by roughly one million barrels a day, “we’re still producing a huge amount of supply,” Levine said. Further, “demand has been very strong, encouraging refiners to continue to create more product,” Levine said. “but I want to point out that eight and a half million barrels a day production is still a lot of production.”
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Conclusion
The gist of it is that homeowners using #2 heating oil for heat this winter should not find it difficult to do so because there will be no shortages in supplies. Additionally, they can lock in the price they pay to help reduce home heating costs even more by ordering now. Consider this a win-win situation. What is keeping you from taking advantage of today’s oil prices right now by placing your own order. You can save money and ensure that you can keep your family warm this winter.
Homeowners can prepare for the upcoming winter by knowing what fuel prices will be as well as what is predicted for the weather. A cold winter will require homeowners to budget accordingly and to find the best heating oil prices in their area. For the most affordable, professional, and reliable heating oil delivery service in your area, be sure to contact Charity Oil today. Contact us today or give us a call at (845) 470-1000 if you have any questions.
