Latest news with #EnergyInformationAdministration
Forbes
a day ago
- Business
- Forbes
Why Electricity Prices Are Rising And What You Can Do To Cut Costs
Symbolic light bulb with photo of high-voltage power lines, ascending arrows for design on theme of ... More energy industry, global energy crisis with rise in cost of energy carriers, inflation, energy saving Have you noticed a change in your electric bill lately? The National Energy Assistance Directors Association estimates that 2025 will be the most expensive year of the decade, with the average U.S. household expected to pay at least 6% more than in the previous year, and significantly more for others, depending on location and housing type. Multiple factors at play contribute to their bills becoming unmanageable. The most effective tips for mitigating rising electricity bills include updating your appliances and insulation, as well as unplugging electronics you aren't using. Let's start with the rising cost of natural gas and explore the reasons behind this increase. Natural gas accounts for approximately 40% of the electricity generated in the United States. According to the U.S. Energy Information Administration, exports of liquefied natural gas have increased to 12.9 billion cubic feet per day, a threefold rise. This means that we have a limited supply of natural gas in our country, which raises its price and, in turn, increases the cost of electricity produced by it. To make matters worse, those exports are expected to double in the next five years and depending on the energy policies we implement in the future, that number could double again. In the graph below, you can see what the EIA is projecting. U.S. LNG Exports The rise in electricity prices cannot be attributed solely to natural gas exports; multiple factors are contributing to this increase. The second factor is rising demand. New data centers and AI are expected to drive this demand, which, according to Rystad, is projected to grow at a rate of 4% annually. To put that in perspective, it is nearly double the rise in demand we experienced from 2000 to 2020. A single data center can use as much electricity as 80,000 homes, and by 2030, we are projected to add as much as 30 GW of electricity demand from data centers in the U.S. That is equivalent to the power generated by 30 nuclear reactors, solely for data centers. Fortunately, most of these data centers will build out some form of electricity generation to assist in powering the centers. In Pryor, Oklahoma, where Google is building a new data center, a new solar array will be built alongside it, and Google has agreed to purchase that power. What is yet to be seen is how the passage of HR1, commonly known as the Big Beautiful Bill, will impact these renewable power installations with data centers. Tax credits for wind and solar projects are being terminated for projects that are not complete by the end of 2027. At a time when electricity demand is growing at historic levels and is expected to continue doing so, we are making it harder to generate that electricity. Infrastructure Matters The most critical aspect of your lights coming on is the infrastructure that carries electricity to homes and businesses across the nation. However, 70% of transmission lines and distribution transformers are 30 years old, according to the Smart Electric Power Alliance. These transmission lines are now expected to face a 260% capacity demand increase by 2050 due to the growth of data centers, electric vehicles, and renewable energy. There are two pieces to this. When the infrastructure itself cannot meet demand, prices increase, as it is an essential part of the supply chain. Second, the cost of that new infrastructure is being passed on to us, the customers. According to the Cato Institute, grid costs now comprise up to 50% of your electric bill. In many areas, delivery costs have risen by nearly 70%. In my personal experience reviewing other people's electric bills over the last two years, delivery costs have been the most significant driver of their bill increases. Higher demand for an ageing grid in a specific area can increase bills dramatically. If that weren't enough, grids require digital upgrades for renewable energy, and the assistance for those upgrades is also being eliminated. All of this has resulted in electricity prices rising by over 6% per year since 2020, according to the Bureau of Labor Statistics, which averaged 1.6% during the previous hundred years. Here are some tips to help you save money on your electric bill. · Switch to LED Bulbs · Install a smart thermostat · Seal air leaks · Use Energy Star appliances · Set your AC to 78 degrees. Each degree lower increases cost by 6-8% · Lower the water heater to 120 degrees. · Use cold water for laundry · Unplug items you aren't using. · Leverage of off-peak hours. You can save hundreds of dollars a year by implementing some of these tips according to the Department of Energy. If you would like to maximize your potential savings, consider getting an energy audit done. Many utility companies offer this as a free service, and it could potentially save you up to 30% on your electric bills. If your utility company does not offer this free service, you may find a local professional that could do it for as little as a hundred dollars, just make sure they are accredited. If you are more of a do it yourself type individual you can download DIY energy assessments at
Observer
2 days ago
- Business
- Observer
Oil prices inch up on geopolitical risks
LONDON: Oil prices edged up on Thursday on signs of easing trade tensions, stronger than expected economic data from the world's top oil consumers and renewed risks in the Middle East. Brent crude futures were up 17 cents, or around 0.3 per cent, to $68.67 a barrel at 0856 GMT. US West Texas Intermediate crude futures were up 31 cents, or 0.5 per cent, at $66.69. "Oil thinking has been distracted from the Middle East, and the reminders of Israel's attacks into Syria and the drone attacks on oil infrastructure in Kurdistan are timely and once again add a little fizz to proceedings," said John Evans, analyst at PVM Oil Associates. "Any other incident that deprives the market of barrels will be added to the low inventory narrative and we expect prices to continue to hold with any risk being to the upside." Drone attacks on oilfields in Iraq's semi-autonomous Kurdistan region have slashed crude output by up to 150,000 barrels per day, two energy officials said on Wednesday, as infrastructure damage forced multiple shutdowns. Meanwhile, US President Donald Trump has said letters notifying smaller countries of their US tariff rates would go out soon, which along with his renewed optimism about prospects of a deal with Beijing on illicit drugs and an agreement possible with Europe helped calm investors. "Trump softened tones on China and proposed lower tariff rates on smaller countries, which are seen as positive developments in the global trade outlooks," said independent analyst Tina Teng. "China's better-than-expected economic data and the US's larger-than-expected oil inventory draw have both been bullish factors for oil prices." US crude inventories fell more than expected by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, suggesting stronger refinery activity, tighter supply, and increased demand. However, larger than expected builds in gasoline and diesel inventories capped price gains, raising concerns of weakening demand from summer travel, ANZ analysts said in a note on Thursday. Data showed that China's June crude oil throughput was up 8.5 per cent from a year ago, implying stronger fuel demand. — Reuters
Time of India
3 days ago
- Business
- Time of India
Oil up as demand expectations, economic data lift sentiment
Oil prices rose on Thursday, reversing declines in the previous three sessions, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions . Brent crude futures rose 8 cents, or 0.1 per cent, to $68.60 a barrel at 0630 GMT. US West Texas Intermediate crude futures were up 16 cents, or 0.2 per cent, at $66.54. Both benchmarks fell more than 0.2 per cent in the previous session. US President Donald Trump has said letters notifying smaller countries of their US tariff rates would go out soon, and said on Wednesday that he would probably put a blanket 10 per cent or 15 per cent tariff on smaller countries. New agreements with Indonesia and Vietnam were announced this week. Trump also offered renewed optimism about prospects of a deal with Beijing on illicit drugs and hinted that a trade deal with India was very close, while an agreement could possibly be reached with Europe as well. "Trump softened tones on China and proposed lower tariff rates on smaller countries, which are seen as positive developments in the global trade outlooks," said independent analyst Tina Teng. "China's better-than-expected economic data and the US's larger-than-expected oil inventory draw have both been bullish factors for oil prices." US crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecast for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. This raised concerns of weakening demand from summer travel, ANZ analysts said in a note on Thursday. The latest snapshot of the US economy by the central bank, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was "neutral to slightly pessimistic" as businesses reported that higher import tariffs were putting upward pressure on prices. Meanwhile, China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat US tariffs, easing fears over the state of the world's largest crude importer's economy. Data also showed that China's June crude oil throughput was up 8.5 per cent from a year ago, implying stronger fuel demand. "Support has come from the positive news pertaining to some easing of trade tensions between China and the US with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia," said John Paisie, president of Stratas Advisors.
Arab News
3 days ago
- Business
- Arab News
Oil Updates — prices up as demand expectations, economic data lift sentiment
SINGAPORE: Oil prices rose on Thursday, reversing declines in the previous three sessions, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures rose 8 cents, or 0.1 percent, to $68.60 a barrel at 8:30 a.m. Saudi time. US West Texas Intermediate crude futures were up 16 cents, or 0.2 percent, at $66.54. Both benchmarks fell more than 0.2 percent in the previous session. US President Donald Trump has said letters notifying smaller countries of their US tariff rates would go out soon, and said on Wednesday that he would probably put a blanket 10 percent or 15 percent tariff on smaller countries. New agreements with Indonesia and Vietnam were announced this week. Trump also offered renewed optimism about prospects of a deal with Beijing on illicit drugs and hinted that a trade deal with India was very close, while an agreement could possibly be reached with Europe as well. 'Trump softened tones on China and proposed lower tariff rates on smaller countries, which are seen as positive developments in the global trade outlooks,' said independent analyst Tina Teng. 'China's better-than-expected economic data and the US's larger-than-expected oil inventory draw have both been bullish factors for oil prices.' US crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecast for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. This raised concerns of weakening demand from summer travel, ANZ analysts said in a note on Thursday. The latest snapshot of the US economy by the central bank, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was 'neutral to slightly pessimistic' as businesses reported that higher import tariffs were putting upward pressure on prices. Meanwhile, China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat US tariffs, easing fears over the state of the world's largest crude importer's economy. Data also showed that China's June crude oil throughput was up 8.5 percent from a year ago, implying stronger fuel demand. 'Support has come from the positive news pertaining to some easing of trade tensions between China and the US with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia,' said John Paisie, president of Stratas Advisers.
Economy ME
3 days ago
- Business
- Economy ME
Oil prices rise with Brent crude up 0.1 percent above $68.50 on strong demand data
Oil prices rose on Thursday, reversing declines seen over the previous three sessions, supported by stronger-than-expected economic data from the world's leading oil consumers and indications of easing trade tensions. Brent crude futures rose by 8 cents, or 0.1 percent, reaching $68.60 a barrel at 06:30 GMT (currently trading above $68.50). Meanwhile, U.S. West Texas Intermediate crude futures increased by 16 cents, or 0.2 percent, to $66.54 (currently trading above $66.45). Both benchmarks had declined by more than 0.2 percent in the previous session. U.S. President Donald Trump stated that letters notifying smaller countries of their U.S. tariff rates would be sent out soon, and he mentioned on Wednesday that he would likely implement a blanket 10 percent or 15 percent tariff on these nations. New agreements with Indonesia and Vietnam were announced this week. Trump also expressed renewed optimism regarding the prospects of a deal with Beijing concerning illicit drugs and hinted that a trade deal with India was very close, while an agreement could potentially be reached with Europe as well. U.S. crude inventories decreased by 3.9 million barrels to 422.2 million barrels last week, according to the Energy Information Administration's report on Wednesday. This decline was steeper than the forecasted 552,000-barrel draw, indicating stronger refinery activity, tighter supply, and increased demand. The latest snapshot of the U.S. economy by the central bank, released on Wednesday, revealed that activity had picked up in recent weeks. However, the outlook was described as 'neutral to slightly pessimistic,' as businesses reported that higher import tariffs were exerting upward pressure on prices. Read more: Crude oil prices climb 0.2 percent to $68.98 amid summer demand expectations, OPEC optimism China's growth and fuel demand In the meantime, data from China indicated that growth slowed in the second quarter, but not as significantly as previously feared, partly due to front-loading to circumvent U.S. tariffs, alleviating concerns about the state of the world's largest crude importer's economy. Additional data showed that China's June crude oil throughput rose by 8.5 percent compared to a year ago, suggesting stronger fuel demand. Oil prices experienced an upswing on Wednesday, driven by expectations of robust summer demand from the world's two largest consumers, the United States and China. However, these gains were tempered by analysts' caution regarding the broader economic landscape. Prices have fluctuated within a narrow range as signs of steady demand, driven by increased travel during the Northern Hemisphere summer, contend with worries that U.S. tariffs on trading partners could hinder economic growth and fuel consumption. Brent crude futures climbed by 13 cents, or 0.2 percent, to $68.84 a barrel by 04:11 GMT. Meanwhile, U.S. West Texas Intermediate crude futures increased by 25 cents, or 0.4 percent, reaching $66.77. This rebound followed two consecutive days of declines, as the market downplayed potential supply disruptions after U.S. President Donald Trump threatened tariffs on Russian oil purchases. OPEC's optimistic outlook OPEC 's outlook remains more optimistic, according to Sachdeva, who referenced the cartel's monthly report released on Tuesday. The report projected that the global economy would perform better in the second half of the year, improving the oil demand outlook. Brazil, China, and India are exceeding expectations, while the U.S. and EU are recovering from last year, the report noted. 'The technicals may offer short-term relief, but fundamentally, the market lacks momentum,' Sachdeva remarked. 'Until clarity emerges on global growth, policy direction, and real demand recovery, especially from Asia, the crude complex looks set to drift sideways.' Oil prices declined on Tuesday following U.S. President Donald Trump's extensive 50-day deadline for Russia to conclude the Ukraine war and avoid sanctions, alleviating immediate supply concerns. Brent crude futures fell by 29 cents, or 0.4 percent, to $68.92 a barrel by 03:42 GMT, while U.S. West Texas Intermediate crude futures decreased by 35 cents, or 0.5 percent, to $66.63. Both contracts had settled more than $1 lower in the preceding session. Initially, oil prices surged due to news of potential sanctions but later relinquished these gains as the 50-day deadline sparked optimism that sanctions might be sidestepped. Traders are now assessing whether the U.S. will indeed impose steep tariffs on nations that continue to trade with Russia. On Monday, Trump announced new weapon supplies for Ukraine and indicated on Saturday that he would impose a 30 percent tariff on most imports from the European Union and Mexico starting August 1, adding to similar warnings directed at other nations. Such tariffs could impede economic growth, potentially dampening global fuel demand and exerting downward pressure on oil prices.
