When Are Home Heating Prices Expected to Go Down?

With winter weather intensifying, homeowners in Fort Lauderdale are dealing with the challenge of home heating costs. Recent years have seen a remarkable jump in energy prices, leaving many looking for answers and relief. Learn what impacts home heating prices, the recent trends we’ve seen and tips to keep your utility bills in check.

Types of Home Heating Fuel

Several 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 is used in another 5%.

• Electricity warms 40% of U.S. homes. Fossil fuels remain the main source for making electricity in spite of the renewed focus on renewable energy sources like wind and solar. 

What Are the Key Influences on the Rates of Fossil Fuels?

Based on the above information, it’s apparent that fossil fuels heat a large majority of North American households. Supply and demand is the number one factor causing price fluctuations. An increase in supply—triggered by greater production and storage rates—typically lowers prices, while an increase in demand—brought about by severe weather, a flourishing economy and rising rates for alternative fuels—can cause prices to skyrocket.

Exactly How Much Has the Cost of Natural Gas Risen?

Domestic natural gas production outpaced consumption starting in 2017, resulting in a general price decline through 2018. Unfortunately, demand has increased significantly recently across all sectors, causing natural gas prices to reach heights not seen in over 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 massive increase represented a tremendous leap of greater than 53% from the previous year, marking it as one of the biggest annual increases on record.

Many factors added to the volatile rise and lack of stability 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 upward. Robust liquefied natural gas (LNG) exports to Europe and other regions, combined with a spike in domestic demand because of cold weather, stretched the price range even further.

In the spring of 2022, prices soared past $9/MMBtu, only to tumble by 40% following the fire and subsequent closure of the Freeport LNG export terminal. This incident considerably cut U.S. LNG exports and redirected more natural gas into storage. However, as the summer heat faded, prices climbed again, hitting a high point in late August.

Going into the fall, a boost in natural gas production and higher-than-average injections into storage saw prices fall closer to the five-year average. However, as temperatures fell, the demand for heating caused prices to go up again.

When Will Prices Calm Down?

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

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

Tips to Trim Your Heating Bill

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

• 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 at night to insulate your windows.
• Add more attic insulation to stop heat from rising out of your home.
• Install a smart thermostat that learns your routines and saves you money.
• Dial down the temperature on your thermostat when you’re away to avoid overheating an empty house.
• Don warmer clothes inside the home so you do not have to crank up the thermostat.
• Plan 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 cozy at a lower temperature.

Make Your Home Warm 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 safety. Our work can also help reduce home heating costs, which is good news for your bank account. With ACE-certified technicians at the helm, you can expect fast, durable answers to all your comfort needs. The assurance of a 100% satisfaction guarantee means that if you’re not completely happy with our services, you can count on us to 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 positive difference in your life and enjoyment of your residence. For more details of what you can expect with heating prices in Fort Lauderdale or personalized solutions to help minimize your utility bills, reach out to the professionals at Service Experts Heating & Air Conditioning. Call 954-736-4314 today to learn more.