A perfect storm is approaching, and Americans are in the crosshairs. After dealing with Hurricane Ida, the US is now feeling the damaging effects of Tropical Storm Nicholas across the south. Combine these two massive weather situations with a U.S. energy policy that offers no “energy” and consumers across our beleaguered nation are about to see much larger bills when it comes to filling up at the pump or warming (or cooling) their homes. Expect huge utility bills on the way.
Those hardworking Americans who have rejoined the nation’s workforce (and those who never left) have already seen a “Biden-led” nation hit an average pump price of $3.18 a gallon, which comes in at nearly $1 a gallon higher than when President Biden was sworn into office.
If that isn’t cause for major concern across the country, then maybe taking a look at the Henry Hub Natural Gas prices will convince you that we are in for some rough times. Add those rough times on the the pile of rough times that life in America has recently become.
Henry Hub is the natural gas pipeline located in Erath, Louisiana that serves as the pricing point for our natural gas. We look at Henry Hub as the indicator of not only where things stand, but where we are headed in the near future when it comes to natural gas prices.
If you were not aware, natural gas is the more preferred source of energy across the country as the main source in heating homes. Natural gas is also the preferred source of energy for factories and for electricity. Well over 50% of homes are heated by natural gas and homes that use electric heat are also paying for natural gas. 38% of our nation’s total natural gas use goes into providing the country’s electricity.
Macrotrends tracks our natural gas prices and they revealed that the Henry Hub Natural Gas price has shot up over 128% over the past year. Another ouch.
The Wall Street Journal is reporting that the electricity gas prices rose 5.2% over the last 12 months while utility gas prices saw a huge jump, rising 21.1% over that same timeframe.
The news, well it only continues to get worse. Natural gas users have been urged by Goldman Sachs to protect themselves from what they see as a massive price hike on the near horizon. The higher energy costs are also being felt in the merchandise you buy, including your weekly grocery shopping.
There are some analysts who are even predicting that gas prices could double as winter approaches if our U.S. production doesn’t somehow increase.
President Biden’s green energy tour comes into play as the numbers rise. He’s trying to promote green energy investing while also discouraging investment in U.S. fossil fuels. The International Energy Agency has already warned that our weak investment in oil projects already has impacted the global supply. The destructive hurricane season (not yet over) has knocked much production offline while also depleting our supplies.
Our nation isn’t the only one feeling the massive pinch caused by natural disasters or Biden’s energy “policy.” European natural gas prices have hit what equates to $150 for a barrel of crude oil. This number is higher than the all-time high price for a barrel of oil.
According to Bloomberg data, electricity prices in the UK have climbed to an all-time high of $490 per megawatt-hour. This represents a 700% increase from their 2010-2020 averages.
The UK wasn’t alone. Germany’s electricity jumped 12.3%, an increase that was the largest seen since 1974 that also played part in the country’s highest inflation jump since 1993.
So, we’re not alone, but that is little consolation as the country tries to rebound from the COVID pandemic, the mass shutdowns, the lack of a dependable workforce, and an Administration that looks like they are only in it for themselves.
Get ready people, this bumpy ride may get a whole lot bumpier.