Looking Ahead on Oil Prices
Advanced technologies are shifting the U.S. from a net importer of energy to a net exporter
“With continued growth in oil and natural gas production, growth in the use of renewables and the application of demand-side efficiencies, the projections show the potential to eliminate net U.S. energy imports in the 2020 to 2030 timeframe. The United States has been a net importer of energy since the 1950s. In cases with the highest supply and lowest demand outlooks, the United States becomes a significant net exporter of energy.”
—Adam Sieminski, Energy Information Administration
There has been plenty of good news recently about oil prices. In January 2016, crude oil prices plunged to a 13-year low. Though prices have crept up again since then, the U.S. Department of Energy still forecasts that crude oil will remain within the $50-$60 per barrel range in 2017, barring any unforeseen events.
As you may know, heating oil, like diesel fuel and gasoline, is a “finished” product derived from crude oil. That’s why heating oil prices are so closely tied to the price of crude oil.
There are various reasons for these manageable prices, including giant increases in U.S. production. Our country is producing so much oil that we are moving toward being a net exporter of oil, rather than a net importer. And that’s good news for prices. Other factors helping to keep a lid on prices include a strong dollar and a slow growth in global demand.
To take away any worries about the normal ebb and flow of oil prices, contact your Wisconcin heating oil dealer. Many companies offer programs designed to save you money and keep your heating bills manageable—no matter what happens with world oil prices.