DOE Says Natural Gas is Most Affordable
Washington, D.C. – The U.S. Department of Energy (DOE) announced today that natural gas is 3.4 times more affordable than electricity and significantly more affordable than several other residential energy sources for the same amount of energy delivered. The 2022 Representative Average Unit Costs of Five Residential Energy Sources says:
|$12.09 per million Btu
|No. 2 Heating Oil
|$25.11 per million Btu
|$24.46 per million Btu
|$29.73 per million Btu
|$41.79 per million Btu
“America’s natural gas is a strategic and essential asset for our country and the world,” said American Gas Association (AGA) President and CEO Karen Harbert. “The Department of Energy’s analysis confirms the cost-advantage of natural gas. Our nation’s domestic abundance of natural gas means customers know they can count on its affordability, and our vast delivery infrastructure means reliability. This the foundation for a stronger, cleaner energy future for our nation.”
AGA recently released its 2022 Playbook, which says that households that use natural gas for heating, cooking and clothes drying save an average of $1,041 per year compared to homes using electricity for those applications. Natural gas is projected to be half to one-third the price of other fuels through 2050.
Harbert is in Houston, TX for CERA Week and will participate on a panel this evening entitled “U.S. Energy Policy & the Climate Opportunity” about how our nation can reach its net-zero emissions goals. In February, AGA released Net-Zero Emissions Opportunities for Gas Utilities, which builds on the industry’s bold Climate Change Position Statement from January 2020 and presents a national-level approach that leverages the unique advantages of gas technologies and distribution infrastructure.
“We will continue to reduce emissions without forcing customers to use more expensive fuels with limited environmental benefits. There is a better path and we are all-in,” Harbert said.
AGA has been closely watching international natural gas markets following Russia’s invasion of Ukraine. Natural gas prices in Europe today climbed as high as $110 per MMBtu, a more than 75 percent increase, before easing back down. On Friday, natural gas closed at $61.75 per MMBtu at the Dutch TTF. In the U.S., natural gas is trading for below $5 at the Henry Hub.