Prices in the United States have doubled in 2021 and will continue to increase during 2022; also, Europe and Asia are seeing record highs at 500% spikes. The good news is that the United States won’t see the same high price increases other countries are experiencing, but there will still be some impact.
So why are natural gas prices rising? There are a few factors involved in this global energy crunch. It all started when Asia had an abnormally cold winter last year. There was a huge increase in demand for natural gas to keep homes and businesses warm. This led to decreased inventory all over the world. As we near 2022, supply hasn’t been able to reach demands.
This is especially true in the United States, where inventory has reached five-year lows. Prices have reached their highest points since December 2008. This is double what the price was at the beginning of 2021. This is especially true in the United States, where inventory has reached five-year lows.
Another reason why natural gas prices are rising is that coal and oil prices are also on the rise as demand increases. Consumers will undoubtedly be out and about doing their Christmas shopping and holiday activities, just like they did during the 2019 holidays. Also, many workers are going back to the office, requiring more energy resources.
Despite this, many companies and individuals are focusing on environmental sustainability. This involves reducing the impact on the Earth for resources as the world population grows. Key elements include improving air and water quality, reducing hazardous waste, and preserving wildlife habitats. Kiwi Energy is proud to support this initiative and you can do your part to help as well.
Natural Gas Price History
In 1998, natural gas was relatively low, but they dropped even lower in 2020, primarily due to the pandemic. This year, while the average price has increased, there’s still good news.
Historically the natural gas price has hovered between $2.50 and $4, but there have been years where prices have risen above $8. So while you may see your gas prices go up in the near future, keep in mind that they have been far worse in previous years.
What Does the Future Hold?
You may wonder: is the price of natural gas going down? There is some good news on the way.
In the United States, you won’t need to worry about not having heat in your home this winter. Plus, a warmer winter could see prices decrease to around the $2.50 mark, so relief is on the way. However, you might first notice a large increase in your energy bill in the coming months as the price and demand both increase.
How to Conserve Energy
Despite the struggles with natural gas supply and prices, you can do your part to minimize energy consumption and reduce costs. Here are some different ways in which you can reduce your energy usage and feel better about your impact on the environment.
- Replace your light bulbs with LED ones.
- Reduce the water heater temperature to 120 degrees Fahrenheit.
- Turn off electronics when not in use.
- Check doors and windows for air leaks and seal them with caulking or sealant.
- Clean and replace air filters regularly.
- Replace old appliances with Energy Star efficient ones.
- Replace old windows with those that have a low U-value.
- Get your heating and cooling appliances inspected on a regular basis.
- Provide shade to your home on hot days by planting trees.
- Run only full loads in the washer, dryer, and dishwasher.
- Clean the lint filter in your dryer after every load.
- Insulate hot water pipes to reduce heat loss.
- Avoid using the oven on hot days.
How Kiwi Energy Can Help
Use the energy your household needs while reducing your bill and environmental impact. Kiwi Energy supports many environmental initiatives and is focused on keeping the planet healthy. Kiwi Energy also offers plans that help protect your appliances. Choose from HVAC Protection or Surge Protection so you can avoid costly repairs.
Contact us for More Information on Natural Gas
Even as natural gas prices soar, there is some relief in sight if you live in New York or Ohio. Kiwi Energy services these states and can help find the right plan for you. Contact us for more information or to enroll in a plan.