September 23, 2002—The Department of Energys Energy Information Administration (EIA) gave a preview of its winter outlook in this month’s “Short- Term Energy Outlook.” EIA expects a colder winter and higher demand to cause this winter’s energy bills to be higher than last winter’s.
The report predicts sharp increases in demand for natural gas this winter, but due to large inventories of natural gas in storage, this is not expected to cause drastic spikes in energy prices.
According to the EIA, fuel supply conditions are expected to be sufficient to avoid any serious heating fuel price spikes this winter—under normal weather circumstances. Despite a hot summer this year (cooling degree-days were about 11 percent above normal), increased natural gas demand in the electric power sector did not substantially derail natural gas storage from its track toward very high (perhaps record) pre-season levels.
For more information, contact DOEs Energy Information Administration.
