When Can We Anticipate Home Heating Prices to Subside?

With winter weather intensifying, homeowners in Fort Lauderdale are experiencing the pain of home heating costs. Recent years have seen a noteworthy rise in energy rates, leaving many looking for answers and relief. Understand what impacts home heating prices, the recent trends we’ve seen and tips to keep your utility bills in check.

Different Kinds of Home Heating Fuel

Many fuels are used to keep homes warm and cozy in the United States:

• Natural gas heats 48% of American homes.
• Heating oil serves 5% of homes.
• Propane accounts for another 5%.

• Electricity warms 40% of U.S. homes. Fossil fuels continue to be the most used source for making electricity even with the increase in renewable energy sources like wind and solar. 

What Factors Impact the Cost of Fossil Fuels?

Considering the above information, it’s apparent that fossil fuels heat a great majority of North American households. Supply and demand is the most significant factor creating price fluctuations. An increase in supply—triggered by more production and storage rates—usually lowers prices, while a surge in demand—caused by extreme weather, a booming economy and rising rates for alternative fuels—can cause prices to climb.

Exactly How Much Has the Price of Natural Gas Gone Up?

Domestic natural gas production outpaced consumption starting in 2017, resulting in an overall price decline throughout 2018. However, demand has soared recently across all sectors, causing natural gas prices to achieve heights not seen in over a decade.

In 2022, the average wholesale cost of U.S. natural gas surged to its highest point since 2008, attaining an average of $6.45 per million British thermal units (MMBtu). This massive increase represented a significant leap of over 53% from the previous year, marking it as one of the sharpest annual increases on record.

Many factors added to the erratic rise and uncertainty of natural gas prices last year. In early 2022, processing hiccups caused by freeze-offs and a substantial draw from natural gas reserves nudged prices up. Robust liquefied natural gas (LNG) exports to Europe and elsewhere, paired with an increase in domestic demand caused by cold weather, stretched the price range even further.

In the spring of 2022, prices roared past $9/MMBtu, only to drop by 40% following the fire and subsequent closure of the Freeport LNG export terminal. This incident sharply cut U.S. LNG exports and redirected more natural gas into storage. Unfortunately, as the summer heat eased, prices climbed once again, peaking in late August.

Going into the fall, an increase in natural gas production and higher-than-average injections into storage saw prices retreat closer to the five-year average. Yet, as temperatures dropped, the demand for heating caused prices to rise one more time.

When Will Prices Cool Down?

The fluctuations in natural gas prices underscore the complex interplay of factors influencing home heating fuel rates. As we look onward to the rest of the 2023-24 heating season, the market’s past behavior offers insights into future price changes and the potential for cost-saving measures.

As of late 2023, prices have fallen from their previous highs thanks to robust production and reasonably mild temperatures. While demand continues to be steady, forecasters suggest prices around $3.44/MMBtu this winter, providing some respite for property owners as we move through the heating season.

Ways to Cut Your Heating Bill

It doesn’t matter how you heat your home or what prices are like, you can take several practical steps to increase energy efficiency and cut your heating expenses. Here are a couple of strategies:

• Seal drafty windows and doors with caulk and weatherstripping.
• Use curtains to your advantage, opening them during the day for free light and heat and then closing them in the evenings to insulate your windows.
• Add more attic insulation to prevent heat from rising out of your home.
• Invest in a smart thermostat that learns your behavior and adjusts the temperature accordingly to help reduce your energy usage.
• Lower the temperature on your thermostat when you’re not home to avoid overheating an empty house.
• Don warmer clothes indoors so you don’t need to crank up the thermostat.
• Make an appointment for annual furnace maintenance to keep your heating system in good working order.
• Use a whole-house humidifier. Moist air feels warmer than dry air, so you feel more comfortable at a lower temperature.

Bring Comfort Home in Fort Lauderdale with Service Experts Heating & Air Conditioning

Nothing is more important to the Service Experts Heating & Air Conditioning team than your comfort and well-being. Our work can also help lower home heating costs, which is good news for your pocketbook. With ACE-certified technicians at the helm, you can expect quick, lasting solutions to all your comfort needs. Our 100% satisfaction guarantee means that if you’re not totally happy with our services, you know we will make things right.

As a company that prides itself on innovation, customer engagement and community participation, you can trust Service Experts Heating & Air Conditioning to make a meaningful difference in your life and enjoyment in your home. For more details of what you can expect with heating prices in Fort Lauderdale or personalized tips to help lower your utility bills, reach out to the professionals at Service Experts Heating & Air Conditioning. Call 954-736-4314 today to learn more.