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thermThe Energy Information Agency released it’s projections for heating costs over the October through March winter season in the U.S. On Tues. Oct. 6 their report gave some hope for optimism for the consumer.

With the caveat that the E.I.A. is expecting a milder winter throughout the nation for this year the number breakdowns are as follows:

Type:          Avg. Expected Cost     % Change          Expected $ Savings

Propane          $1,667                       – 14%                       $280

Natural Gas     $ 783                         – 12%                       $60 – $80

Heating Oil      $1,821                       – 2%                         $40 – $60

Electricity        $933                         – 2%                          $20

Statistics released also sited that an estimated 8 million homes in the Northeast primarily use heating oil, while Midwestern households primarily use natural gas and the South and Pacific Northwest depend heavily upon electricity for their heating.

The hefty decline in natural gas pricing is due primarily by an expected 3.8 trillion cubic feet of natural gas in storage by the end of October. The projected price this year for natural gas is set at $2.64 per gallon verses $2.66 last year while the price two winters ago was a whopping $3.31 per gallon.

Some other interesting numbers stood out from their report. 39 million homes or 35% of U.S. households heat with electricity; approximately 8 million homes use heating oil while fully 50% of homes in America use natural gas with seven out of 10 homes in the Midwest using natural gas.

The highest growth rate among methods of heating is with electricity which is growing at an annual rate of 2.5% per year. Realizing the poorest savings for this upcoming winter is derived through that type of heating, does give pause to ponder. Does the cleanliness of electricity warrant the current expected price savings on usage this year? Although; being the second cheapest form of heating could represent an offset. A logical assumption that with the highest growth rate will come more demand and price increases in the future.

Arguments can be made for each of the methods of heating even when the numbers don’t support the arguments. Esoteric, philosophical, psychological, comfort and needs reasoning have to be applied. Add in the cost of conversion or remodeling of your current heating system and the effort may not justify the choice in the long run. That’s the quandary the consumer faces. One year’s numbers don’t translate necessarily to a reliable trend for the next five to ten years.

One trend the E.I.A. noted was expectancy for the overall average price for a gallon of gasoline to rise by .18 to $2.62 for 2010.

We find ourselves awash with news articles currently suggesting that the U.S. dollar might not be the single method of payment for Arab oil in the future, with avid denial coming from Saudi Arabia. So, we all might as well enjoy the respite from the higher heating costs while simply wondering what the future may bring.

The report does provide a guideline and measurement for comparison for the individual consumer.



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