KingKong, Intelligent Equipment (Xuzhou) Co., Ltd , https://www.impimaq.com
The U.S. Energy Information Administration (EIA) recently released its short-term energy price outlook, forecasting a significant jump in natural gas prices this winter—projected to rise between 29% and 44% compared to the same period last year. This surge has sparked concerns, especially within the chemical industry, which is heavily reliant on natural gas as both an energy source and a raw material. In response, the American Chemistry Council (ACC) has urged Congress to take action to mitigate the impact on manufacturers and consumers alike.
Natural gas is not only the largest industrial fuel in the U.S., but it also plays a critical role in the production of essential chemicals and plastics. With over half of American households using natural gas for heating, the rising cost is affecting everyday life. The chemical sector, which competes globally, is particularly vulnerable. High energy costs threaten its competitiveness, potentially leading to reduced output, job losses, and even plant closures if prices remain elevated.
Moreover, recent hurricanes have further strained the energy supply chain, worsening the already tight market for natural gas and oil. Prices have surged from around $2 per million British thermal units (MMBtu) six years ago to over $14 today, according to EIA data. With the upcoming heating season from October to March, the administration expects continued price volatility, with double-digit increases likely in the coming months. These factors highlight the urgent need for policy interventions to stabilize the market and protect both industry and consumers.