March 1, 2022
Energy prices in general have risen dramatically in 2022 based on a number of events. We want to take an opportunity to explain some of those events, and what we feel the short-term or possibly long-term impacts may be on homeowners.
Energy prices in general have risen dramatically in 2022 based on a number of events. The first rise in oil prices was a direct result of political actions that placed great restraints upon the United States energy producers. These actions included bans on federal lands for drilling and exploration, a canceling of the Keystone pipeline, tax burdens, and a litany of federal regulations not previously implemented. The second impact on energy prices was simply due to in increase in demand as we emerge out of the pandemic. Third in most significant is the recent invasion of Ukraine by Russia. This is caused extreme volatility and supply disruptions worldwide and has had an immediate impact on crude oil and all refined products such as heating oil and gasoline. Domestically produced products have also been impacted such as natural gas, and to a much lesser extent propane. At this time we see no immediate solution to the crisis overseas, however domestic supplies remain abundant and readily available for both heating oil and propane. The Sippin Energy Products bulkplant also provides an excellent offer in the event of any short-term supply disruption. We are fortunate I suppose that we are at the tail end of the heating season, so high prices will only affect deliveries that take place over the next few months. We do expect prices to decline later in the summer time when things settle down a bit. That being said, Goldman Sachs has revised their crude oil forecast up to $110 per barrel, with a worst-case scenario of $125 per barrel.
What can homeowners do?
At this time, the most important thing to do is to conserve energy wherever possible. If you have an old heating system, it may be time to replace it with something more efficient. If you are having financial difficulties, energy assistance programs are also available, and will likely be revised to cover additional costs incurred from these current situations.