What are the factors impacting gas and electricity prices
We know natural fuels with familiar names like gas, electricity, oil, coal, and so on. For those fuels, electricity and gas are two essential elements for everyday life.
We use electricity for necessary equipment such as air conditioners, washing machines, etc. We also use gas for cooking, with gas cookers in particular. So, what are the factors influencing their prices?
For gas prices:
Firstly, it is the United States economy. Like crude oil, fluctuations in the economy turn to increase or decrease, in energy consumption.
Secondly, it is the weather. More than half of all homes in the US are heated by natural gas. Gas accounts for 25% of the market, as hot weather leads to more electricity use for air conditioning
Thirdly, it is production levels and demand indicators. Statistics show that natural gas is compared to demand indicators to determine if the market is a "short" or "long" supply.
4th, it is the Weekly Natural Gas Inventory Report. On every Thursday, the US Government published data on the amount of natural gas that is available in the nation's underground storage facilities. Injecting and withdrawing money from storage is also a sign of supply and demand dynamics.
Besides, Electrical generation “fuel-switching” and Baker Hughes Drilling Report of active rigs have an impact on gas prices.
For electric prices:
Firstly, it is the power plant. Every power plant has maintenance, construction, and operating costs.
Secondly, it is fuel. Costs for materials are different. Increasing demand for electricity could increase demand for gas. This leads to higher fuel prices and higher electricity prices.
Thirdly, it is a weather condition. Rain (snow) can generate water for low-cost hydropower generation. Wind can generate low-cost electricity generation due to rotating turbines. However, extreme temperatures can increase the demand for electricity, especially cooling with air - conditioners. This pushes prices up.
4th, it is the transmission as well as distribution. These systems provide power, including maintenance costs. Maintenance costs are for repairing accidents due to weather or system damage.
What are the cheapest gas and electric prices in the United States
According to the most recent data, the average American uses 656 gallons of gas each year. In South Carolina, gas price is $2.05 and also the lowest cost. Besides, four different lowest cost states are Alabama, Tennessee, Indiana, and Ohio.
For electric prices, according to the U.S Energy Information Administration, Washington is the state having the lowest average industrial electric rates. The rate in this state is 4.37 cents per kWh.
This part shows you the cheapest gas and electric prices in the United States.
In conclusion, this article provides useful information about the cheapest gas and electric prices in United States. They certainly have an impact on consumers' energy use.