Electricity Costs Will By Higher This Summer -- June 9, 2015

EIA Short-Term Outlook. Source here.  Coal and natural gas are at record low prices. Note that electricity costs will be higher this summer. Yup. The price we pay for feeling good: wind and solar. Oil, natural gas, coal are all mentioned. Even biofuel/diesel is mentioned. But solar and wind are not mentioned in the summary provided by EIA. Solar supplies 0% of the electricity consumed by the US when rounded to the nearest whole number.

International:

Global oil supply is forecast to continue to exceed demand through the end of next year, boosting global oil inventories.

Crude Oil:

U.S. oil production since mid-2014 has been more resilient to lower crude prices than many had expected, as reflected in modest upward revisions in fourth quarter 2014 and first quarter 2015 data.

Despite the large decline in crude oil prices since June 2014, this May’s estimated oil output in the United States is the highest for any month since 1972, but production still is expected to decline in the second half of this year.

Even with slower oil production growth, U.S. net oil imports in 2016 are expected to meet the smallest share of domestic petroleum and other liquid fuels demand since 1969.

Biofuels:

The United States will likely produce and import more biomass-based diesel fuel over the next two years if newly proposed federal renewable fuel standard targets are issued as final rules.

Gasoline:

U.S. monthly average pump prices are expected to decline from their May level through the rest of this year.

Despite increases in vehicle fuel efficiency, U.S. gasoline consumption is up because more people are working and gasoline prices are low.

Natural Gas:

U.S. natural gas production is expected to reach a record in July.

Electricity:

Consumers will pay higher power bills to stay cool this summer because temperatures are forecast to be warmer than last year and retail electricity prices will be up in most areas of the country.

The typical household will pay $412 for electricity this summer, which is 4.8% more than last summer.

Coal:

Coal consumption by the U.S. electric power sector is expected to decline 7% this year as lower natural gas prices make gas a more attractive fuel for generating electricity.