Reply #7: Heating costs seen jumping this winter

[ozymandius]

NEW YORK - Almost all Americans will pay a lot more to heat their homes this winter, even though temperatures are expected to be warmer than average. That's the sobering message from an Energy Department report Tuesday that estimates heating oil costs are likely to jump 22 percent and natural gas bills, on average, will rise 10 percent between October and March.

And while the National Oceanic and Atmospheric Administration forecast a milder than average winter in most parts of the country, the agency also predicted Tuesday that temperatures will be 1.3 percent colder than last year.

In Massachusetts, where about 40 percent of homeowners rely on oil for heat, consumers are bracing for price spikes, said Michael Ferrante, president of the Massachusetts Oilheat Council, a trade group. "They are buttoning up their houses even more, they are turning down their thermostats, they are wearing sweaters," he said.

Surging crude oil prices are the primary, but not the only, culprit for the jump in fuel oil costs. This spring and summer, American refineries experienced an unusual number of unexpected maintenance outages. The net result was that fewer refineries were producing gasoline, heating oil and other petroleum products.

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On the other hand, supplies coming on line this year, including Anadarko Petroleum Corp.'s Independence Hub platform in the Gulf of Mexico and a portion of the huge Rockies Express natural gas pipeline project, are expected to boost natural gas supplies by 2 billion to 2.5 billion cubic feet.

http://news.yahoo.com/s/ap/20071009/ap_on_bi_ge/heating_costs