Despite insanely high gas prices, mileage is expected to exceed last summer’s records. People are finally resuming the activities and vacations that paused during the pandemic.
9.2 million barrels of gasoline are predicted to be used every day from April to September–0.8% more than we used last summer. Since so many refineries shut down during the pandemic, one million barrels of fuel-making capacity are lost every day (4).
You may ask yourself, what is the real reason behind the rise of natural gas prices? We are only six months into 2022, and gas prices have already skyrocketed over 130%, far exceeding the five-year average by 3.3 times (2).
Gas prices rise due to three main factors: the weather gets warmer, the demand for electricity and air conditioning gets higher, and there is an increased demand for Natural Gas exports (2). New York State alone accounts for 3% of the United States’ electric power generation (5).
What is Liquified Natural Gas?
What does LNG really entail? Liquified Natural Gas (LNG) is mostly made up of liquified methane (CH4) that is used for transportation and storage. The foremost purpose behind LNG is for imports and exports of natural gas to be safe and affordable across the world. LNG can be carried through the following: ships, trucks, and railcars (3).
What are the true benefits of LNG?
According to the LNG export tracker, exports increased from 12.99 Bcf (Billion cubic feet) to 13.29 Bcf (Billion cubic feet) (1). The numbers are exponentially high right now because Europe is trying to stray away from the use of Russian gas. This is greatly affecting the United States benchmark, possibly growing to be more than $10/MMBtu (One Million British thermal units) within the next coming weeks (2). However, the US Gasoline inventories are the scarcest they have been since 2019, while diesel stocks are plummeting to levels that have not been seen since 2008 (4).
Another aiding factor in the rise of gas prices is volatile trade. The U.S. benchmark for natural gas prices surpassed $9/Btu (British thermal unit)–a whopping 4.93% increase in a singular day. As stated on May 19, in the EIA’s latest Weekly Natural Gas Storage Report, natural gas stocks are 17% less than the year prior, in addition to 15% lower than the five-year average for the week (2).
So, what does this mean for you and me? This means that gas prices are not going down anytime soon. How do we compensate for this? Going solar will not only relieve your energy bill, but it will relieve the environmental overload of greenhouse gas emissions. Help reduce your own carbon footprint by choosing solar. Every bit counts!