Heat or Eat? Natural Gas Prices Set to Skyrocket This Winter on Biden’s Watch

Heat or Eat? Natural Gas Prices Set to Skyrocket This Winter on Biden’s Watch

BY RYAN LEDENDECKER

Another day, another terrifying development for struggling Americans on President Joe Biden’s watch.

In addition to historically low levels of diesel fuel supply and depleted home heating oil reserves in the Northeast that will likely result in a literal winter of death for some, millions of American families will soon be forced to gather around the kitchen table for a depressing and scary conversation regarding how they’ll afford natural gas this winter in Biden’s America.

In a bombshell Nov. 9 report that the mainstream media has virtually ignored, data from Biden’s U.S. Energy Information Administration (EIA) indicated that it predicts the price of natural gas prices will skyrocket during the upcoming winter season. Prices are expected to hit at least 10-12-year highs, and that’s based on normal winter conditions.

Some long-term forecasts strongly suggest that the upcoming winter season will be especially cold for many areas of the country, as well as higher snowfall amounts for many areas, exacerbating the looming home energy crisis.

From the EIA:

We forecast that natural gas spot prices at the U.S. benchmark Henry Hub will average $6.09 per million British thermal units (MMBtu) this winter (November 2022–March 2023), the highest real price since winter 2009–10.

Our forecast reflects natural gas storage levels that are 4% below average heading into winter withdrawal season and more demand for liquefied natural gas (LNG) as the Freeport LNG facility comes back online.

What’s especially interesting in the EIA’s report is their reasoning for the expected spike in natural gas demand. It said the demand will likely result from increased usage of natural gas-based “space heating” in January and February.

That makes sense, given that so many millions of Americans might have to turn to space heating options if they’re unable to afford or even source home heating oil and other critical fuels this winter, all of which are expected to be expensive and in short supply.

The EIA added:

Despite lower Henry Hub spot prices since August, we expect natural gas prices to rise this winter as a result of seasonal demand for natural gas in space heating, which typically peaks in January and February. We expect that higher demand for LNG exports—particularly in the Northern Hemisphere—will also increase natural gas prices.

Here’s another tidbit about natural gas, taken straight from the EIA’s website. Keep in mind the EIA is likely using the most conservative data possible. In other words, it’ll likely be much worse.

Nearly half of all U.S. households heat primarily with natural gas. We expect households that use natural gas as the primary space heating fuel will spend about $930 this winter, 28% more than they spent last winter. Our forecasted increase in natural gas expenditures is the result of both higher expected prices and consumption.

Historical data for the price of natural gas, available here, shows that under President Donald Trump, we never once had to worry about natural gas prices or supply.

Except for November and December of 2018, when it jumped to slightly over $4/MMBtu before coming back down, the price of natural gas for the four years under Trump ranged from a low of $1.63/MMBtu to a high of $3.97/MMBtu. For most of that time, the price stayed comfortably in the $2-$3/MMBtu range, an extremely reasonable and affordable price.

Under Biden, it’s double that or more. Adding in Biden’s other ongoing crises, such as inflation, high gasoline prices, high interest rates, a potential housing crisis, and record-high grocery prices, it doesn’t take a Harvard economics degree to conclude that we’re absolutely screwed this winter.

The first sign of relief, according to the agency, might not even come until much later in 2023, when the Freeport LNG terminal in Texas is brought back online. It was shut down last year after a “pipeline explosion,” Reuters reported. That’s the best-case scenario — and it’s not considering what the economy might look like by then, which could still very much be in rough shape.

Over the past year, savings accounts have been drained on Biden’s watch, and millions of Americans rely on available credit to pay their bills. That’s not sustainable, and paying three or four times the normal price for natural gas will probably be the final nail in the coffin for many.

Meanwhile, Biden and the White House march on in their radical war against fossil fuels, no matter how many Americans lose their jobs or die in the process.

I hate to repeat myself, but folks, it’s not even winter yet. If we’re struggling this much now, what will we look like in January? It’ll be nothing less than devastating for the working-class American, and you can write that down. Godspeed to all of us.

https://pjmedia.com/news-and-politics/ryanledendecker/2022/11/11/heat-or-eat-natural-gas-prices-set-to-skyrocket-this-winter-on-bidens-watch-n1645031

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