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Energy Secretary: Expect To Pay Much More To Heat Your Homes This Winter

By on November 11, 2021 0

By Bethany Blankley, The Central Square

Americans should expect to pay significantly more to heat their homes this winter, said U.S. Energy Secretary Jennifer Granholm.

When asked in an interview on CNN on Sunday if energy costs were going to go up, she replied, “Yes, it will. It will be more expensive this year than last year. We are in a slightly advantageous position, certainly compared to Europe, because their hold on natural gas is significant. They will pay five times as much.

Heating prices could rise by 50% this winter, according to the Energy Information Agency warns. “We expect nearly half of American households that heat themselves primarily with natural gas to spend on average 30% more than they spent last winter – 50% more if winter is 10. % colder than average and 22% more if winter is 10% warmer than average. “

The EIA said it expects the 41% of households that heat primarily with electricity “to spend 6% more – 15% more in colder winters and 4% more in warmer winters. “.

Likewise, the 5% of households that heat primarily with propane “will spend 54% more – 94% more in a colder winter and 29% more in a warmer winter”, and the 4% of households that heat primarily with oil “spend 43% more – 59% more in a colder winter and 30% more in a warmer winter.

In a Bloomberg News from November 5 maintenance about the administration not increasing domestic oil production to help lower prices and instead relying on foreign oil production, Granholm laughed.

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Bloomberg’s Tom Keene asked him, “What is Granholm’s plan to increase oil production in America?” She laughed as she said, “This is hilarious. Would I have had the magic wand on this.

She added: “As you know, of course, oil is a global market. It is controlled by a cartel. This cartel is called OPEC, and they decided yesterday that they weren’t going to increase beyond what they were already planning. “

But oil industry players argue costs wouldn’t rise so drastically if President Joe Biden hadn’t halted construction of the Keystone XL pipeline or halted domestic production of oil and gas on federal lands, between other regulatory measures it has put forward.

In October and again on November 4, Biden called on OPEC + to produce more oil, which the Saudi-led alliance has twice rejected.

The White House National Security Council recently said in a declaration, “Our point of view is that the global recovery should not be jeopardized by a mismatch between supply and demand. OPEC + appears unwilling to use the capacity and power it currently has at this critical time of global recovery for countries around the world, ”suggesting Americans are relying on foreign production instead of untapped supply that it is capable of producing.

Todd Staples, president of the Texas Oil & Gas Association, told The Center Square, “Global demand for oil and natural gas continues to rise as economies stabilize and more people move. . Supply remains limited globally, and we need policies here in the United States that encourage domestic production, not discourage it, to meet our growing energy needs without depending on other countries. “

Texas remains the largest producer of oil and gas in the country and the world. But energy regulations and taxes proposed in Democrats’ budget reconciliation package would make US even more dependent on foreign energy sources, US groups say Argue.

Seven U.S. Democratic representatives from Texas called on House and Senate leaders not to target the oil and gas industry in the budget reconciliation bill. Doing so, they argue, has “the potential to cost thousands of jobs, stifle economic recovery, increase energy costs for all Americans, strengthen our adversaries, and ultimately hamper the transition to a lower carbon future ”.

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The tax changes proposed in the bill will further reduce domestic production and endanger domestic refining capacity while increasing demand for oil from OPEC + countries, they say.

Twenty-four Republican senators also wrote a letter to Biden, saying it was “astonishing that your administration is now seeking help from an international oil cartel when America has sufficient domestic supplies and reserves to increase production, which would reduce prices by gasoline”.

“Your administration’s national oil and gas development policies hurt American consumers and workers, run counter to an ‘America First’ energy agenda, and increase reliance on foreign oil.”

According to a recent economic study to study from the Wyoming Energy Authority, the cost of Biden’s ban on federal leasing will be significant. During his first term, the gross domestic product of eight Western states is expected to decline by $ 33.5 billion. It is estimated that 58,676 jobs will be lost each year, wages will fall by $ 15 billion and state tax revenues will fall by about $ 8.3 billion. Wyoming and New Mexico are expected to be the hardest hit.

The Center Square is a 501 (c) (3) nonprofit focused on economic and government reporting at the national and local levels.