After years of unusually inexpensive levels, the price of natural gas in the United States has more than doubled since this time last year. Market pricing has reached levels not seen for a decade. On October 13th, the Henry Hub futures price for each month for the upcoming winter (December 2021 through February 2022) posted around $6.00 per MMBtu, double the price one year ago.
Last week the Energy Information Administration (EIA) released their October 2021 Short-Term Energy Outlook (STEO). The EIA is projecting the cost for all major home heating fuels will significantly increase this winter. Compared to last winter, the EIA forecast “propane expenditures will rise by 54%, heating oil by 43%, natural gas by 30%, and electricity by 6%.”