Consumers Bear Brunt Of Cold Winter

Consumers Bear Brunt of Cold Winter

Even though Americans square measure feeling some relief at the gasoline pump from last fall's record costs, their checkbooks square measure still possible to require successful this winter as fossil fuel and fuel costs still soar.

In fact, the Energy predicts that that mistreatment fossil fuel to heat their homes will expect to ascertain their monthly bills rise forty eight % from last year. If it's associate degree particularly cold winter, the price is going to be even bigger.

This can be a tough issue for customers to ponder - particularly once most householders already average $4,100 annually for energy.

While it's not continually simple to grasp the politics and economic science of energy, inflation continually indicates that there's an excessive amount of demand, and for years there has not been enough domestic offer. Consequently, America has had to accept foreign sources for its fossil fuel, due in massive half to the very fact that costs square measure such a lot cheaper.

In Asian nation, for example, the worth of fossil fuel is seventy five cents per million energy unit, and in Kuwait, it is $1.25 per million energy unit. Compare this with the U.S. value of just about $13 per million energy unit and it's simple to ascertain why America opts to import its gas.

But corporations like Mammoth Resource Partners INC., a Kentucky-based oil and gas exploration company, square measure commencing to place a dent in skyrocketing fossil fuel costs by sound into the gas-rich Appalachian Basin.

"The Appalachian Basin, in my opinion, is that the largest chance in North America to scale back America's dependence on foreign gas," same Mammoth President Dr. Roger L. Cory, a frequent guest speaker on the subject of "peak oil."

Much of the increase in fuel and fossil fuel costs is attributed to last fall's hurricanes that disabled refineries and terminals in the Gulf Coast. Till cyclone Katrina, many failed to understand that gas from overseas is liquefied and shipped to the seacoast for offloading and re-gasifying, whereas domestic offer, like that explored by Mammoth Resource Partners, will safely undergo upcountry pipelines on to domestic markets to be used in America's homes.