In November, Americans were grateful for the lowest Thanksgiving gas prices in seven years. Thanks largely to the American energy resurgence, drivers continue to enjoy relief at the pump – with the national average close to $2.00, according to AAA. As winter approaches, the good news continues with the U.S. Energy Information Administration’s (EIA) Winter Fuels Outlook.
Due to a “combination of warmer weather and lower fuel prices,” EIA projects household heating costs will be lower than the previous two winters. For the nearly half of U.S. households that use natural gas for heating, costs will drop a projected $64 compared to last winter’s average. Savings are also expected for homes using propane ($322 less), heating oil ($459 less) and electricity ($30). Overall, the hydraulic fracturing-driven American energy resurgence is saving American families an average $1200 each year per household.
To keep affordable energy flowing to businesses and consumers – and to generate even more economic growth – more energy infrastructure is needed. Updating America’s energy infrastructure could generate up to $1.15 trillion in new private capital investment, support 1.1 million new jobs and add $120 billion on average per year to our nation’s GDP over the next decade, according to a study by IHS.
On the other hand, failure to invest in energy infrastructure can raise costs. In New England, for example, a recent study projects the region’s households and businesses could see their energy prices increase $5.4 billion between 2016 and 2020 unless they expand natural gas and electricity infrastructure. Recent polling shows 80 percent of American voters support increased development of America’s energy infrastructure. Policymakers at all levels should follow their lead and make energy infrastructure investment a priority.
By Jack Gerard
Originally posted December 16, 2015
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