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Natural Gas Users Prepare for Long, Cold Winter
With the U.S. Energy Information Administration indicating that customers who use natural gas to heat their homes could be paying as much as 47% more on average for natural gas this winter, the American Gas Association (AGA) is disseminating information on why prices are rising and what consumers can do to minimize their household energy consumption.
Representing the 195 local energy utility companies that deliver natural gas to more than 56 million homes, businesses and industries across the country, AGA is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.
While the association says that it is “confident that supplies of natural gas will be adequate to meet customers’ needs throughout the upcoming winter heating season,” it also points out that the wholesale price of natural gas, after remaining a relatively stable $2 per thousand cubic feet during the 1990s, has escalated since 2000 and could average nearly $9 in 2005.
Fifty-two percent of U.S. households use natural gas to heat their homes.
With supply and demand already running tight following a summer in which temperatures were about 17% higher than normal and operators of power plants were forced to buy larger volumes of natural gas to power air conditioning, Hurricane Katrina further aggravated the situation, temporarily reducing supplies by an estimated 8.8 billion cubic feet per day. “Much of that production has come back online, but the weather had a marked impact on prices,” the association says.
With U.S. demand for natural gas projected to increase nearly 40% by 2020, the association says that “reductions in demand (through energy efficiency and fuel-switching) are vital to helping to ease prices, but it is clear that natural gas supplies must increase.”
The thousands of companies that produce natural gas in the U.S. are having a hard time keeping up with demand, partly because many wells are becoming depleted. “The number of producing gas wells has tripled since 1971 (from approximately 100,000 to more than 300,000), but production has declined — a clear indication that many existing natural gas basins are maturing.”
Households can take several steps to maximize the energy efficiency of their homes, according to the association:
- Sealing air leaks around doors, windows and other openings such as pipes or ducts with caulk or weather stripping can cut as much as 10% from an average monthly energy bill.
- Set thermostats between 65 and 70 degrees during the winter, and at 58 degrees when away from the home for more than a few hours. Warmer temperatures, however, are recommended for homes with ill persons, infants and the elderly. Installing an automatic setback or programmable thermostat can help regulate temperatures. Turning back the thermostat 10%-15% for eight hours a day can cut annual heating bills by as much as 10%.
- Change or clean furnace filters monthly during the heating season.
- Use registers to direct warm air-flow across the floor — because hot air rises.
- Close vents and doors in unused rooms and close dampers on unused fireplaces.
- Set water heater temperatures at 120 degrees. Water heating is a typical family’s third largest energy expense, accounting for about 14% of utility bills.
- Install water-flow restrictors in showerheads and faucets.
- If radiators are located near cold walls, place a sheet of aluminum foil between the radiator and the wall to reflect heat back into the room.
- Run washing machines and clothes dryers with full loads.
- On sunny days, open draperies and blinds to let the sun’s warmth in. Close them at night to insulate against the cold air outside.
Planning for long-term energy-efficiency improvements, the association recommends checking attics and basements to see that they have the recommended levels of insulation; checking the heating system and replacing old, outdated appliances with high-efficiency models; and installing storm or thermal windows and doors or double-paned glass.
To find additional information from the Department of Energy on general energy conservation tips, click here.
This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page.
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