Biden Energy Secretary Warns Americans Will Pay More to Heat Homes

Biden’s Administration:

Biden’s policies have been in the news as of late with the induction of the new infrastructure plan and his action against climate change. People are divided over Biden’s leadership efficiency as he brings forth his plans with the build back better framework.

After Trump’s poisonous legacy pushed America into the depths of despair the new government seems to be holding quite well.

Unlike every other presidency, Biden also faces the added pressure to prove his legitimacy amidst Trump’s supporters erroneously trying to reclaim America by inciting rebellion (the January 6 Capitol Insurrection).

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Granholm warns Americans of hiked gas prices:

As winters grace the USA, Jennifer Granholm, the energy secretary cautioned Americans to be ready for a rise in gas prices as it will probably cost more to heat homes now. This rise can be credited to the coronavirus pandemic which has crippled the country’s economy.

She said that this is going to happen and people will have to pay more this year for gas as opposed to last year.

She told Dana Bash on “state of the union”, that America is in a better situation comparative to Europe as they have a tighter hold of natural gas but we face a similar problem with fuels that the supply chain has which is that companies are not flicking the switch enough to satisfy the required demands.

She made the comments just after Biden remained noncommittal about ordering the use of the Strategic Petroleum Reserve to tackle the rise in gas prices. 

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Biden considering immediate and long-term solutions:

Granholm revealed that Biden’s administration feels all options can be taken into consideration and the strategic petroleum reserve will not be a long-term solution as it is designed to protect against major disruptions but will only temporarily be able to help with the hiked prices.

Biden has been considering both short-term and long-term solutions as he is gravitating his focus on shifting the country’s paradigm to a clean energy technology that can alleviate the problems of hiked fuel prices and effectively provide the climate action which the country needs. 

Biden Energy Secretary

EIA reports reveal forecast of gas prices:

If coming winters turn out colder, Natural gas futures have warned that prices can go higher than the 132% increase this year as Americans would require more heat.

As per the Energy Information Administration, average US households could spend $746 on natural gas to heat their homes this year which is 30% more than last winter. Retail gas prices will see an all-time high after 2005-2006.

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Compared to last winter an average household’s spending on propane is expected to increase by 54%, home heating oil by 43%, natural gas by 30%, and electric heating by 6% as stated by an EIA report released last month. Granholm said that the EIA will be releasing a new forecast for the rising gas prices on Tuesday.

Biden’s frustration on not being able to control fuel prices:

 She added that Biden’s administration is hopeful that prices will not increase in some parts of the country soon as the agenda is being controlled by the Organization of the Petroleum Exporting Countries (OPEC).

Granholm also sympathized with Biden saying that every president is distressed about not being able to control fuel prices as it is a global market.

Biden has called for an increase in supply but unfortunately, 50% of gasoline supply is controlled by OPEC and they are in control of the agenda regarding oil prices. Let’s see how Biden’s administration will address the current issue keeping all options on the table. 

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