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"People Will Go Completely Insane When
Energy Prices Triple From Current Levels"
by Epic Economist
"Brace yourselves because as the seasons turn, U.S. households are set to see their energy bills get extraordinarily expensive. For the first time in nearly five decades, the entire western world is preparing for widespread and rolling energy shortages during the winter, and things are getting particularly alarming in the U.S., where energy reserves dropped to the lowest levels since 1984. In face of the steep collapse of the nation’s energy supplies, the only certainty around the ongoing energy price shock is that it’s likely to get worse in the coming months as demand explodes all over the country. Some households may be facing an over 60% spike in their utility bills before the end of the year, while businesses are already doing everything they can to cut costs to be able to survive another dark winter.
The situation is being described as “frightening” and “shocking” by the people who work in the energy industry. And what will happen next is going to send shivers up the spine of millions of Americans. According to the latest data from the Energy Information Administration, the U.S. Strategic Petroleum Reserve has declined to its lowest level in 38 years. “The nation’s emergency crude stockpile dropped to 434.05 million barrels. It hasn’t been that low since early November 1984, when the national strategic reserve hovered at around 436 million barrels,” the organization noted. Since the conflict between Russia and Ukraine broke out, the White House introduced the 1-million-barrels-a-day oil release plan using the country’s emergency reserves. Bloomberg researchers reported that the federal government had planned to restock the national energy reserve after the price of crude oil fell below $80 per barrel. But market experts suggest that oil prices will remain well above that margin for the rest of the year. That’s to say, not only the U.S. failed in providing effective help for its allies, but it also left its population vulnerable to power shortages and brutal price increases at a time they need a reliable supply of energy the most.
With prices of oil and natural gas facing a steady rise, U.S. consumers are going to be economically eviscerated by the soaring costs and stuck with fewer energy supply alternatives. Oil makes up about half the price of a gallon of gasoline, and diesel fuel for vehicles like trucks and heating oil for homes are distilled from oil. If current trends continue, Americans should get ready to pay 17.2% more on energy this month, on top of the increases recorded in previous months, according to estimates released by the National Energy Assistance Directors Association. Home heating is expected to reach a staggering $1,202, the highest price in more than a decade. To make things worse, the National Grid said last week it will increase electricity rates by 64% starting November 1 and for the next six months.
That’s going to have a devastating impact on the finances of low-income families. Bank of America analysts wrote in a new note to clients that “nationwide, a sizeable share of Americans could come under pressure to make cuts in their other spending in order to keep the lights on." This nightmarish energy crisis is gaining proportions that would be completely unimaginable just a few months ago. Now, more than ever, it is time to stock up on batteries, candles, solar-powered devices, and non-perishables because the threat of blackouts and extended energy supply shortages are about to become our new reality. We’re going to experience some exceedingly painful months, and many other unpleasant surprises may be headed our way this winter."
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