In my opinion, it will get a LOT worse before it gets better.
Alaska Department of Natural Resources, Division of Oil and Gas 2007 Report, Page 3-26
Posted on 09/20/2007 5:25:27 AM PDT by vietvet67
New York - Unless it's a warmer than expected winter, heating the house this winter will cost consumers more money.
Indeed, this fall – even before the first real freeze – the first tank of home heating oil will cost consumers about 7 percent more than last year at this time.
Consumers who use natural gas to heat their home will also see price hikes, though they're likely to be more modest. Through July, natural-gas prices were 5.5 percent higher than last year at the same time.
In past winters, many consumers have shrugged off the rising cost of staying warm. But this winter, it may not be so easy: The economy is expected to continue slowing, and home prices are likely to continue to drop. Although the actual dollar amount of the higher heating costs may be small, economists worry about the effect on consumers from bad news.
Another piece of unsettling news for consumers: The price of crude oil is hitting record highs (not adjusted for inflation). On Tuesday, a barrel of oil closed at $81.51 on the futures market.
"The economy used to be so strong that even these blows [higher energy prices] hurt some but not everyone," says Dennis Jacobe, chief economist at the Gallup Organization in Washington. "Now, these more marginal impacts can hurt more people."
Higher heating costs are likely to hurt the lower and middle class the most since their income has a harder time keeping pace with the heating costs. "It's a bigger blow to them," says Mr. Jacobe.
Although winter heating costs may be higher, gasoline prices have remained flat.
(Excerpt) Read more at csmonitor.com ...
It’s a good thing government figures strip away food and energy prices from the CPI. We all know they have very little to do with households making ends meet. ;-(
FWIW, NOAA is forecasting a 33%-50% chance of a warmer than *normal* winter across most of the USA from September to March.
OTOH, propane, even with a buy-in to a capped price, is already 15% higher in my area than it was last year. A winter’s worth of firewood is still only slightly less than a full tank of propane.
And, on the third hand, gasoline in my area is down 15 cents from Labor Day, likely due to no hurricanes that actually impeded production. We know people who still used their motor boats this summer, at astronomical costs for a weekend’s fuel.
Everyone appears to be working and people appear to be spending, as usual.
The DBM, of course, is hoping for a rough winter and lots of economic pain for the middle class.
Bring it on, Baby!
I live in cold, snowy southern Wisconsin. Over the past few years we’ve added new windows, extra insulation, add plastic wraps to older windows and patio doors and keep it a toasty 68 degrees during the day and 58 at night. We had a CREDIT on our natural gas bill all through the heating season last year and didn’t pay dime-one until April of ‘07.
I won’t turn on the furnace until well into October, and as of today we have a ($25.00) credit balance on that bill. And this is an old farmhouse from 1906! What are people with more energy-efficient homes whining about?
A little pre-planning goes a long way in any budget area. :)
Because of the high Canadian dollar, almost par now with the USD, border states are experiencing a retail sales boom, even car sales are booming, due to prices in Canada being on average 30% higher than American prices on all goods (Canadian retailers are the only ones unhappy with the high Canadian dollar, yet they refuse to lower their prices).
It’s pretty hard to find anyone in these border states that buy into the doom and gloom reports MSM is trying to shovel. Hotels are full, sales are brisk, everyones happy.
58? I'd freeze to death! Brrrr! It's always 75-80 in my house during the winter. (unless I run out of firewood)
Not sure how it works, but do Canadians who buy big ticket items in the Uniited States avoid the GST, VAT, or provincial taxes?
They are saving thousands on vehicles as well, even after the Canadian taxes.
I sure wish global warming would hurry up and get here.
bump
NAtural gas up 5.5% - I should be so lucky. In Anchorage (AK) the gas rates have gone up 45% over the last two years. The gas company is owned by furiners.....
Taxes all year: HIGH and rising
It makes sense when I give it a little thought.
In my opinion, it will get a LOT worse before it gets better.
Alaska Department of Natural Resources, Division of Oil and Gas 2007 Report, Page 3-26
Yup, I have been trying to get my wife to let me sell and move South...no go, the kids are still in town.
I guess I am going to have to put in a wood or coal stove to tkae the edge off the bills. Put in a new furnance (cost & Gs) and cut gas use by 48% - so the bill is the same with less gas used.
The local economy is shutting down.
With some luck the coal to gas plant across the inlet will get built and maybe keep the place liveable for a few more years....
I hear you. I already moved but our house in Eagle River hasn’t sold yet.
Heating oil appears to be as high as it ever was.
Natural gas is way down at $6.
NYMEX crude index oil is 84.
RBOB gasoline is 2.13, somewhat down from its alltime high.
Wood is 200 a cord depending. Coal, headed up. House heating except natural gas, will be expensive.
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