US winter colder, costlier for households - EIA

07 October 2008 14:50  [Source: ICIS news]

HOUSTON (ICIS news)--US households that will rely on heating oil in the coming northern hemisphere winter can expect to be dealt a double blow of colder temperatures and inflated fuel bills, the Energy Information Administration (EIA) said on Tuesday.

The 7% of US homes that use heating oil - mostly in the northeast - can expect to pay 23% more for their fuel this winter, for an average $449 (€332), the EIA said.

That will reflect an 18% increase in prices and a 5% increase in consumption, it said.

Residential heating oil prices in the northeast are projected to average about $3.90/gal, compared with $3.31/gal last winter. 

"The projected increase is consistent with higher crude oil prices and projections of lower distillate inventories than last year going into the heating season," EIA said. 

Households heating primarily with natural gas were expected to spend 18% more this winter, for an average of $155. 

Nationwide, about 52% of all households depend on natural gas as their primary heating fuel, EIA said.

The increase in natural gas costs reflects a 17% increase in price and an expected 1% increase in consumption.

For the lower 48 states in the continental US, a projection of heating-degree days shows temperatures will be 2.4% colder this winter compared with last season.

But temperatures will be 1.7% warmer than the 30-year average between 1971 and 2000.

There will be regional variations in temperatures, the EIA noted. In the midwest, natural gas consumption will actually decline 2% due to warmer temperatures, it said.

Variations in US households' winter consumption of heating oil, natural gas and propane are closely watched for potential impacts on markets for chemical industry feedstocks and for transportation fuels such as diesel and jet fuel.

A higher cost of heating homes can also affect economic indicators as discretionary spending is reduced.

($1 = €0.74)

To discuss issues facing the chemical industry go to ICIS connect

By: Stephen Burns
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly