When Will Home Heating Costs Decline?

With winter weather hitting hard, homeowners in Fort Lauderdale are facing the problem of home heating costs. Recent years have seen a notable rise in energy prices, leaving many searching for answers and relief. Learn what has an impact on home heating prices, the recent trends we’ve seen and ways to keep your utility bills in check.

Different Kinds of Home Heating Fuel

Many fuels are used to heat homes in the United States:

• Natural gas heats 48% of American homes.
• Heating oil is the fuel used in 5% of homes.
• Propane fuels another 5%.

• Electricity warms 40% of U.S. homes. Fossil fuels are still the primary source for generating electricity even with the increase in renewable energy sources like wind and solar. 

What Affects the Rates of Fossil Fuels?

Based on the above information, it’s apparent that fossil fuels heat a great majority of North American households. Supply and demand is the biggest factor generating price fluctuations. An increase in supply—triggered by more production and storage rates—usually lowers prices, while a surge in demand—caused by harsh weather, a flourishing 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 a general price decline in all of 2018. But, demand has increased significantly recently across all sectors, causing natural gas prices to achieve heights not seen in roughly a decade.

In 2022, the average wholesale cost of U.S. natural gas surged to its highest price since 2008, hitting an average of $6.45 per million British thermal units (MMBtu). This surge represented a tremendous leap of greater than 53% from the previous year, marking it as one of the biggest annual increases on record.

Multiple factors led to the erratic rise and lack of stability of natural gas prices last year. In early 2022, manufacturing hiccups caused by freeze-offs and a large draw from natural gas reserves nudged prices way up. Robust liquefied natural gas (LNG) exports to Europe and other countries, paired with a surge in domestic demand because of cold weather, stretched the price range even further.

In the spring of 2022, prices jumped past $9/MMBtu, only to tumble by 40% following the fire and subsequent stoppage at the Freeport LNG export terminal. This incident drastically cut U.S. LNG exports and redirected more natural gas toward storage. But, as the summer heat eased, prices climbed once again, hitting a high point in late August.

Shifting into the fall, an uptick in natural gas production and higher-than-average injections into storage saw prices fall closer to the five-year average. Yet, as temperatures went down, the demand for heating caused prices to ascend again.

When Will the Cost of Home Heating Fuel Go Down?

The changes in natural gas prices are indicative of the complicated interplay of factors influencing home heating prices. As we look ahead to the rest of the 2023-24 heating season, the market’s past behavior offers insights into future price patterns and the possibility of cost-saving options.

As of late 2023, prices have fallen from their previous highs thanks to robust production and relatively moderate temperatures. While demand is still steady, forecasters anticipate prices around $3.44/MMBtu this winter, giving some respite for house owners as we move through the heating season.

Tips to Cut Your Heating Bill

Regardless of how you heat your home or what prices are like, you can take several helpful steps to improve energy efficiency and reduce your heating expenses. Here are some suggestions:

• Seal drafty windows and doors with caulk and weatherstripping.
• Use curtains to your advantage, making sure to pull them open during the day for free light and heat and then pulling them back over the windows each night to insulate your windows.
• Add more attic insulation to stop heat from rising out of your home.
• Invest in a smart thermostat that learns your routines and helps you save money.
• Reduce the temperature on your thermostat when you’re away so you aren’t heating an empty house.
• Wear warmer clothes inside your residence so you do not have to crank up the thermostat.
• Schedule yearly furnace maintenance to keep your heating system in good working order.
• Set up 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 critical to the Service Experts Heating & Air Conditioning team than your comfort and well-being. Our work can also help bring down home heating costs, which is great news for your finances. With ACE-certified technicians at the helm, you can expect quick, durable answers to all your comfort needs. Our company’s 100% satisfaction guarantee means that if you’re not completely 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 information about heating prices in Fort Lauderdale or personalized tips to help minimize your utility bills, get a hold of the professionals at Service Experts Heating & Air Conditioning. Call 954-736-4314 today to learn more.