Written on: October 13, 2022 by ICM
The U.S. Energy Information Administration (EIA) expects most U.S. households will pay more to heat their homes this winter. In its 2022 Winter Fuels Outlook, EIA forecasts higher U.S. residential energy prices compared with last winter, as well as higher consumption of heating fuels during what is forecast to be a slightly colder winter than last year.
The National Oceanic and Atmospheric Administration expects the U.S. to experience a slightly colder winter than last year, leading to higher consumption of heating fuels. That higher consumption and higher energy prices contribute to EIA’s forecasts for higher heating costs for households.
Compared with last winter’s heating costs, EIA forecasts U.S. households will spend 28% more for natural gas, 27% more for heating oil, 10% more for electricity and 5% more for propane.
“Forecasting months-long weather and energy trends is not an exact science, but it’s highly likely that global dynamics affecting energy commodities will lead to higher U.S. prices for heat this winter,” said EIA Administrator Joe DeCarolis.
U.S. households will spend even more on average if the weather is colder than expected. The Winter Fuels Outlook includes regional breakdowns of its forecasts, which are updated monthly. The Winter Fuels Outlook is a supplement to EIA’s Short-Term Energy Outlook (STEO).