November 12, 2021
Regardless of whether the coming winter proves to be mild or severe, Americans are going to be paying a lot more just to stay warm. In the midst of a global energy crisis, energy-driven inflation is here and most Americans are deeply concerned. Unfortunately, energy policy now under consideration could make the situation far worse, rather than better.
From gasoline to heating oil and natural gas, energy prices have jumped over the past year and they are likely to remain high for the foreseeable future. The U.S. Energy Information Administration is projecting that heating costs for homes using natural gas will average nearly $750 this winter, up from under $575 last year. For those who use heating oil or propane to provide warmth will fare even worse. The projected price increases for those two sources are 43% and 54%, respectively.
While Americans are feeling the pinch of higher energy prices, the situation is far worse in Europe. In the United Kingdom, energy providers are going bust at an alarming rate as they deal with soaring energy costs, pricing caps, and the government’s “renewable fees” to force wind and solar power onto the grid. The crisis is poised to leave many Britons experiencing a serious cost crunch just to keep warm. In Germany, inflation is at its highest levels since the 1990s, with soaring energy costs correctly identified as the culprit. Astronomical natural gas prices and a lack of secure supply have left governments and utilities across the continent begging for more Russian natural gas. Relying on the goodwill of Vladimir Putin to keep the heat and lights on is hardly successful policy.
Read more here.
