Households set to face hefty heating bills

The Washington Times ^ | January 9, 2003 | Patrice Hill

[BOBTHENAILER]

Residential heating costs are expected to soar up to 43 percent this winter as a result of the sharp rise in world oil prices caused by the cutoff of Venezuelan supplies and a looming conflict with Iraq.

The jump in costs for heating oil, natural gas and electricity for homes projected for the November-April period by the Energy Information Administration appears already to have helped stoke a drop in consumer confidence last month and one of the worst Christmas selling seasons in decades.

[BOBTHENAILER]

I can hear it now. Energy assistance for the poor.

Please note how the author conveniently pushes the start of the recession to 2001 thereby attempting to make it a Bush recession.

[PhiKapMom]

Convinced I am missing something here. How does the lack of oil from Venzuela affect Natural Gas prices? My home is heated by natural gas that is right here in OK. If my heating bill goes up 40%, can guarantee anyone that folks around me will be up in arms.

[PhiKapMom]

Many households still have not received their heating bills for December, but customers of the Washington Gas Light Co. are expected to have an average bill of $725 for the period, up $113 from last year, said spokesman Tim Sargeant. (from article)

Is $725 an average bill for an average consumer in Washington State? My gas bill was $69 for November and $102 for December and Oklahoma is definitely not like FL in warm temperatures. Have a gas hot water heater and heat my entire home with gas heat from an outside combinaion furnace/air conditioner (not a heat pump) and keep the house at 71 degrees which feels warm.

[BOBTHENAILER]

Convinced I am missing something here. How does the lack of oil from Venzuela affect Natural Gas prices?

You're right, mostly. Natural Gas is only marginally affected by a lack of crude from any source. Crude is refined into heating oil, which is used most in the NE. Fuel switching, from natural gas to fuel oil occurs when one or the other becomes more costly, therefore, if they are both high, the ability to offset high costs is eliminated.

The lack of a serious energy bill has added to this situation. Our industry has had to "FIGHT" tooth and toenail to drill in the major basins, despite RAT claims they are not opposed to drilling anywhere but ANWR.

This situation will turn around but its gonna take some serious drilling and weakening of the Enviro/Nazi lobby. High heating bills could help that, but will probably be demagogued as usual by RAT oil & gas haters.

You should be better off in OK than other parts, particularly the NE.

[Dog Gone]

Natural gas prices aren't affected by the Venezuela situation. But natural gas prices are currently $5.22/MCF, which is about double what it was last winter.

You should be shielded from some of that if your utility had entered into long-term gas supply contracts, but your bill is definitely going to rise.

[HalfFull]

Convinced I am missing something here. How does the lack of oil from Venzuela affect Natural Gas prices?

The same thought crossed my mind. Also, how does one "reduce production" of Natural Gas? Seems to me that one just keeps the valve open. This is just a consumer rip-off considering there is enough natural gas in the US to last thousands of years.

[BOBTHENAILER]

Is $725 an average bill for an average consumer in Washington State?

I dunno. My guess is the author used a worst case situation, in order to heighten the thrust of this article.

I live in Northern Michigan, use propane for heat and hot water and still only pay around $200 on a bad month. In town natural gas users are around $100 per month.

This is a slanted article, imho.

[rgrun]

The amounts represent the billing period from November through April

[You Dirty Rats]

The National Bureau of Economic Research (i.e. the dudes who make the official call) has previously said that the recession began in March 2001.

[IWONDR]

Washington Gas Light Company is a supplier in the Washington, DC (the Nation's Capital) area.

[Dog Gone]

Also, how does one "reduce production" of Natural Gas? Seems to me that one just keeps the valve open. This is just a consumer rip-off considering there is enough natural gas in the US to last thousands of years.

Your misconception is based on the fact that natural gas wells decline in production immediately after being drilled. It is not uncommon for a gas well to be producing 10% of what it was a year earlier. All with the valve open.

The only way to keep gas production flat is to be constantly drilling new wells.

[PhiKapMom]

Thanks for the update! Good news is that Senator Jim Inhofe is the new head of the Environmental Committee for the Senate. That should help the oil/gas industries in their quest for new resources.

[BOBTHENAILER]

Also, how does one "reduce production" of Natural Gas? Seems to me that one just keeps the valve open.

If only it were that easy. Wells have a decline factor over time. Some decline rapidly and some gradually, but they all decline. Production gets reversed, when drilling and production cannot keep up with demand, which is close to the current situation

This is just a consumer rip-off considering there is enough natural gas in the US to last thousands of years.

Totally untrue. The only truth to that sentence is that we DO have a lot of reserves available. The problem comes when we try to drill the "always pristine" terrain where the reserves are. You can help us accomplish that by opposition to ALL ENVIRONMENTAL GROUPS.

[PhiKapMom]

The gas company here has long term commitments. Must admit I would really be steamed if it went skyhigh as I am surounded by natural gas and oil wells in this part of the state.

We need an Energy policy and we needed it yesterday. The environmentalists complain about additional drilling but if they would take the time to come into OK and see how the oil and natural gas producers have cleaned up old sites, they might get their eyes opened. The producers have done a fantastic job at no cost to the landowner of cleaning up old well sites and returning the land to nature.

[BOBTHENAILER]

Thanks for the info. I thought it had been pegged to have started in 2000.

[PhiKapMom]

Thank you! Since my bill comes in monthly I wondered!

[BOBTHENAILER]

Good news is that Senator Jim Inhofe is the new head of the Environmental Committee for the Senate. That should help the oil/gas industries in their quest for new resources.

Thanks for the Great news.

[PhiKapMom]

You can help us accomplish that by opposition to ALL ENVIRONMENTAL GROUPS.

Just wanted to repeat that! Now you know why the oil/gas producers of OK did handsprings when Senator Inhofe was named Chairman of the Senate Environmental Committee! Cannot say, however, that he has the support of the Sierra Club!

[chance33_98]

Mine was $380 last month. But then I live in a place from 1865 with 14' ceilings and only half the flat has duct work....

[IWONDR]

"Fuel switching, from natural gas to fuel oil occurs when one or the other becomes more costly,therefore, if they are both high, the ability to offset high costs is eliminated."

How does an individual homeowner easily and economically switch from gas to fuel oil or vice versa as prices seesaw between the two?