Rising Gas Prices Hurt Families

Gas prices have doubled over the past year, causing a ripple effect of rising coal and oil prices, and spurring renewed focus on the impacts of increasing energy costs. Today’s high prices expose the reality that fossil fuels, like gas, are expensive, prone to price spikes, and risky. The transition to low-cost, reliable renewable energy is the solution to protect consumers from price spikes and increasingly unaffordable fossil fuels.

High Gas Prices Put American Families and Businesses at Risk

Almost half of households in the U.S. heat their homes with gas, and the EIA forecasts their bills will be 30% higher this year (and 54% higher for households using propane and 43% more for heating oil).

With gas prices expected to rise even higher as winter demand grows, many Americans will have to choose between heat, food, andmedication. According to Census survey data, almost 30% of families found themselves in this situation last year — before the spike in gas prices and when utility shutoff moratoria were still in place. Black and Brown Americans face the greatest adverse impacts, because they face much greater risks of utility disconnection.

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We Dont Need Gas for a Reliable Grid

American Families Can Avoid High Gas Prices with Electrification

A transition to high efficiency electric appliances protects households from the next gas price spike. Replacing fossil fuel furnaces and water heaters with clean electric alternatives can lower costs for 103 million of America’s 121 million homes, with total savings of more than $37 billion, according to analysis from Rewiring America. 

Instead of helping consumers manage volatile fuel prices, though, the gas industry has waged secretive campaigns to block improvements to the nation’s building codes and strip local governments of their authority to build better buildings.

Wall Street No Longer Wants to Subsidize Unprofitable Gas Drilling

After a decade of losing money due to high production costs, U.S. drillers are using profits from higher gas prices to pay back debt and reward shareholders — as demanded by investors — instead of spending to expand costly production. 

Across the U.S., oil and gas permitting activities have regained some ground from 2020,  but remain well below pre-pandemic levels as producers continue to conserve cash. The Energy Information Administration (EIA) expects prices to remain elevated into 2022, which will have devastating effects on consumers, especially those who can least afford the increased costs. 

Natural Gas Drilling Explosions Danger Energy Boom-1
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Fossil Fuels, Not Renewables, Are to Blame

Fossil fuel boosters spent the past decade trying to hype gas as abundant and cheap, but today’s high prices expose the reality that  fossil fuels are expensive, volatile, and risky. In contrast, prices for renewable energy, already cheap, continue to steadily decrease.

The International Energy Agency found the transition to renewable energy is not to blame for skyrocketing gas prices — instead the run-up in pricing is being driven by a combination of a strong recovery in demand, tighter-than-expected supply, and several weather-related factors, including a particularly cold last winter in Europe and ongoing severe drought in South America.

Exporting LNG Sends Domestic Prices Even Higher

When the U.S. lifted the fossil fuel export ban in 2015, prices of the domestic gas market became linked to those of the global gas market— where the price of gas is 4-5 times as high as the price domestically. As a result, U.S. consumers are now exposed to uncertainties of the international gas market, including higher prices and price spikes

Exports of LNG are on pace to set another new record this year. By 2023, the United States is set to become the world’s top LNG exporter – with exports increasing by 121% over the next decade. Continuing to export LNG at this record-breaking pace  reduces domestic supply, lowers inventories, and pushes up domestic prices, according to EIA.  

LNG Makes Limiting Global Warming Impossible