Prepare for higher energy prices

 Fox Business:

Energy prices have plummeted due to concerns over the banking crisis, but this is likely only a short-term dip, according to an energy expert.

Unfortunately, this means customers who have been facing soaring bills won't see much relief.

The Energy Information Administration (EIA) projected that the price of electricity, specifically in the residential sector, will increase in 2023 and in 2024. In 2022, the average cost of electricity in the U.S. was 15.12 cents per kilowatt-hour. That's projected to rise to 15.63 and 15.66 cents over the next two years, according to EIA data.
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"Supplies versus demand are about as tight as they have ever been," he added.

Global energy consumption has rebounded from the start of the COVID-19 pandemic, and supply was barely keeping pace with demand before the war in Ukraine further reduced stockpiles. As a result, energy prices remain elevated, squeezing already tight household budgets even further.

The National Energy Assistance Directors’ Association (NEADA) announced in January it had the highest total number of Low Income Home Energy Assistance Program (LIHEAP) applications this winter since 2011 "as families struggle with paying some of their biggest home energy bills in more than a decade."

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During winter, the number of households receiving energy assistance jumped by an estimated 1.3 million. This doesn't "even account for possible increases in applications this summer to help families pay for air conditioning as they deal with rising temperatures due to climate change," the NEADA added.

If the banking situation stabilizes, it will actually make matters worse with respect to oil supplies, according to Flynn.

"It will actually be more bullish for energy prices because the banks are going to be less likely to lend money," he said, adding that oil companies that are uncertain about the economy might not follow through on making investments in oil.

"On top of that, you have the current administration that makes it difficult to get a project off the ground anyway."
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I have cut back on heating expenses by using firewood in my wood-burning stove.  It heats the house in the winter and I harvest the wood from trees on my property.