Energy & The New Normal

3 Trends that make today the best time ever to shop rates

In a very short span of time, the coronavirus pandemic has dramatically altered the way we live and work. As tens of millions of Americans self-quarantine or heed orders to stay at home during this crisis, many wonder what effects it will have, both in the short and long-term. There are however, already indicators of economic and practical trends from which we can both learn and benefit. While costs fall in one sector, they rise in others; understanding these emerging trends can help energy consumers save money on an ongoing basis.

1. Historically Low Oil Rates=Huge Savings

Just a few years ago, the world couldn’t get enough oil. Now, there’s a glut, and the price of oil is most definitely in the doldrums. An oversupply of oil on the world market has triggered a steady slide in gas prices, bringing Americans some of the cheapest gas in years. Despite the COVID-19 crisis, with things like the Russia-Saudi oil war that touched off in early March of 2020 (driving oil prices down still further), experts predict more of the same in the foreseeable future.

  • Since 2014, the price of oil has been on a downward trajectory not seen in decades.
  • On March 27, a barrel of Canadian oil fell to just over $5.00 USD (less than a nice latte or a fast food combo).
  • Energy providers across the country are announcing lower monthly bills for consumers to reflect historically low oil and natural gas prices.
  • U.S. supplies of natural gas remain high, which will help to keep oil prices in decline.

Americans spent less than 4 percent of their average annual household income on energy in 2016, the lowest ever recorded. This is a trend experts expect to continue.

2. More Time at Home? Get Ready for Huge Energy Bills

With working at home already a huge trend in America, literally millions more of us began working at home with the advent of COVID-19. We may be spending less money on gasoline, meals and entertainment connected with work, but we’re using a great deal more energy at home that we wouldn’t ordinarily have used. This will, of course, result in our energy bills climbing. Adding millions of children that will be home rather than at school only adds to the additional home energy load.

TV, tablet and mobile usage, cooking at home, heating and A/C all day every day – all of these things mean using far more energy. It all adds up and many homes will see 30% or more increase in their energy costs.

3. Impending Rate Hikes from Your Utility

In an effort to reduce the financial strain from lower revenues, utilities may begin increasing consumer electricity rates in the very near future. While many utilities are lowering rates or postponing previously-approved price hikes due to the unprecedented hardships introduced by the COVID-19 outbreak, they and many others could be compelled to raise rates due to their own financial pressures, particularly when the worst of the pandemic subsides.

Historically Low Energy Rates × More People at Home Using More Energy

= HUGE SAVINGS

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