Trump Promised To Cut Your Energy Bill In Half — Why Are Costs Rising? - Chevron (NYSE:CVX), Flex LNG (NYSE:FLNG)

Core Viewpoint - Rising energy prices are impacting American households, particularly low- and middle-income families, as natural gas prices surge and utilities approve rate hikes, contrary to political promises of cheaper energy [2][3][4]. Energy Price Trends - Natural gas prices are increasing at a historic pace, with Henry Hub futures surpassing $5 per MMBtu due to synchronized demand from homes, power plants, and industry during extreme cold [2][10][12]. - Home heating costs are projected to rise by 9.2% this season, significantly outpacing the inflation rate, with average U.S. household heating expenses expected to reach approximately $995, an increase of $84 from the previous year [4][5]. Impact on Households - The financial burden of rising energy costs is particularly severe for low- and middle-income families, leading to increased utility debt and potential shutoffs [3][4]. - Electric-heated homes are experiencing the steepest cost increases at 12.2%, while natural gas households see an 8.4% rise [5]. Market Dynamics - U.S. energy markets are influenced by global supply dynamics, weather conditions, and infrastructure limitations rather than solely by political decisions [2][6][15]. - Infrastructure bottlenecks in regions like the Northeast contribute to disproportionately higher energy costs, even when national supply appears sufficient [13][18]. Supply and Demand Factors - Despite record U.S. natural gas production, supply cannot be rapidly increased to meet sudden spikes in demand due to fixed pipeline capacity and the time required for drilling new wells [8][11]. - The connection between U.S. LNG exports and global markets means that higher export levels can tighten local supply, further driving up domestic prices [16][17]. Cost Influencers - Rising labor and maintenance costs, inflation-driven expenses, and investments in grid hardening and climate resilience are contributing to higher utility rates [19]. - The competition for natural gas supply between domestic consumers and international markets, especially during winter, exacerbates price increases [19].