Posted originally on the CTH on January 24, 2023
There is a pending energy issue looming just beyond the horizon that is going to become a major issue very soon. Electricity rates, natural gas costs and home heating oil prices increased massively due to Joe Biden energy policy. However, things are likely to get much worse in a few months.
On the issue of oil and gasoline prices, the U.S. Strategic Petroleum Reserve (SPR) has dropped 40% since Joe Biden began using it to offset massive global prices increases in oil. However, Biden is doing nothing to increase production and has not engaged energy producers in conversation to expand domestic production. Non pretending warning HERE.
Ultimately what this means is another wave of sicky price increases for gasoline are coming fast.
Additionally, Mark Wolfe, director of the National Energy Assistance Directors Association (NEADA), is warning that continued pressure on natural gas supplies by exporting U.S. production to Europe is going to make our electricity rates go even higher as more than 40% of U.S. electricity generated comes from the use of natural gas. Wolfe wrote a letter in October to Energy Secretary Granholm [SEE HERE], and the situation is unfolding exactly as he warned.
Electricity rates have jumped massively in the past year, and it looks like they are going to continue to rise. The spring and summer of 2023 looks to deliver another round of higher oil prices, higher natural gas prices, higher electricity prices and higher gasoline prices. Which brings me to the question…
It is challenging to find solid data (without noise) on regional electricity, home heating and natural gas prices. However, Treehouse readers consistently provide the most accurate assessments of reality on the ground. You guys are the experts in checkbook economics. So, I ask you the question: