Your 2021-2022 Energy Outlook

We want to give you a quick Outlook on what’s going on with energy prices now and what we expect for the remainder of this heating season. From November 2020 till now, crude oil has more than doubled, from $36 a barrel to $83.50 a barrel. This has impacted all refined products such as heating oil, gasoline, jet fuel, and diesel fuel.

At the same time, natural gas has experienced an even more dramatic rise in price, again more than doubling from last year. Propane has probably been impacted the least, most likely because it is a domestically used product for the most part and not widely exported. That being said, it has also risen this year with other energy products. So what does this mean for homeowners? It certainly means that we have to do what we can to conserve energy and use our resources wisely. If you have an aging heating system that is old and inefficient, it may be a good time to consider an upgrade. You can also protect your energy prices by purchasing one of our capped price programs, which will protect you from future rises in prices, but also provide you the benefit of taking advantage of the lower price should the energy market drop.

What caused the increase in energy prices?
There are number of factors that have led to the dramatic increases in energy prices. First and foremost, there is increased demand as we come out of the pandemic, which has been compounded by significant supply chain disruptions and inflation. Everything to do with extracting, transporting, and refining energy products has gone up in cost due to this unprecedented inflation. The other force at work here is the intense political pressure placed upon the oil and gas industry in the United States. Exploration and drilling for gas and oil has been halted or disrupted in many parts of the United States due to onerous regulations. The unfortunate reality of this scenario is that the United States, which was completely energy independent only a year ago is now reliant upon foreign supplies of oil and gas. We are hopeful that this dangerous trend is reversed in the future. As homeowners and consumers of energy, it is important that you encourage your political leaders to undertake common sense measures to meet the United States energy needs. Our products are plentiful, environmentally friendly, and are domestically produced. Let’s keep it that way!