Why Home Energy Costs Might Get More Volatile

It’s been a rollercoaster decade for the U.S. energy industry and, by extension, consumers.

In the early 2010s, the U.S. produced just enough fossil fuel to meet its own energy demands. By 2022, it had become the largest exporter of natural gas in the world. The Energy Department estimates see the country’s export capacity nearly doubling in the next four years.

That’s good news for oil and gas companies. Here’s why it’s not as simple for consumers.

Geopolitical Effects

Russia’s invasion of Ukraine plunged Western Europe into an energy crisis, and the U.S. committed to ship natural gas to Europe to bridge the newly opened gap.

However, the Biden administration has put a halt on approvals for new export terminals handling liquified natural gas, or LNG, saying the Department of Energy would evaluate the exports’ impact on energy costs, America’s energy security and climate change.

Indeed, utility bills have gotten pricer over the past years. Some analysts say that America’s increased focus on exports has led to imported volatility in prices. That is fueling concerns that U.S. consumers could now be on the hook for price spikes in response to geopolitical tensions and extreme weather events – and more so than before.

Others, including the American Petroleum Institute, believe the U.S. can easily keep supplies at home and exports going. What that means for American consumers remains to be seen.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS24020502