Continued shale development across the country has unlocked vast amounts of oil and natural gas, which has, in turn, led to lower energy prices. As winter approaches this is great news for consumers, since nearly half of American households are heated with natural gas.
According to the Energy Information Agency (EIA), natural gas customers can expect to pay ten percent less between October and March than they did last year.
Over the last few months utility companies across the country have been lowering their rates due to low commodity prices caused by fracking. Here’s a look at some of the regions that will see lower rates:
Besides natural gas, residents that heat their households with heating oil will also see savings. According to the EIA, households should pay 25 percent less than last year which translates to roughly $460 less than last winter. Homeowners that use propane for heat will also get a break this winter with rates expected to be 21 percent lower than last year’s rates.
Adam Sieminski, administrator of the EIA had this to say about falling energy prices:
“If winter temperatures come in as expected by U.S. government weather forecasters, U.S. consumers will pay less to stay warm this winter no matter what heating fuel they use.”
America’s oil and natural gas industry has been able to protect the environment while producing record amounts of oil and natural gas. In turn, commodity prices have dropped to all-time lows with savings being passed onto the consumers. Savings on energy and home heating comes as an early gift this year and allow for more disposable income just in time for the holiday season.