How Will the Looming Energy Crisis Affect You?

Written by Bernie Carr

Just a quick post today as I share some news I came across that may affect all of us this winter: a looming energy crisis.

The energy crisis is global

The energy crisis is already affecting many countries, including the Japan, China, the UK and much of Europe.

For Japan, Korea and much of Europe, natural gas prices have already climbed to levels that are considerably higher than the price for crude on a per barrel equivalent basis. Further increases could support switching from gas to fuel oil in power generation, but only where such switching is still available. Many western nations have forced the elimination of that ability due to environmental considerations as governments and companies have responded to pressures from the green lobby and the ESG investor community.

Source: Forbes

In Europe, there are fears that electricity may be rationed this winter.

In China, power shortages are shutting down factories. In Germany, farmers are unable to find fertilizer, which is made using natural gas.

Will the crisis affect the U.S.?

We’re already seeing high prices at the pump. High gas prices affect transportation and delivery costs. As a result, consumers are seeing prices spike for food and other goods, cars, and rent. This leads to inflation, similar to what happened in the 1970s.

Electric companies are already warning consumers about upcoming price hikes.

Heating your home could cost a lot more this winter.

Chicago-area utilities are projecting that heating bills will be up to 50% higher this winter. The New York Department of Public Service warned residents last week that their home heating bills could jump 21% compared to last winter.

Source: CBSNews

The U.S. has enough gas to get through a normal winter, said James Shrewsbury, co-chief investment officer of e360 Power LLC, a gas and power hedge fund in Austin, Texas. But sustained low temperatures could create gas shortages. “If we get a prolonged cold this winter, there will be problems.”

Source: Bloomberg

What can you do to prepare?

We have no control over the energy crunch, but we can take a few steps to prepare.

• Expect blackouts. Since you are expecting them, you can prepare for them by having emergency lighting and other power outage supplies. Get a power bank to charge your phone if there is no power. Buy them now before more shortages hit. Store your power outage supplies where you can easily reach them in the event of a blackout.
• You need a way to heat your home in the winter. Stock up on blankets and warm clothes. Once year, during a cold snap in Texas, we insulated our apartment windows with bubble wrap.
• Since prices are rising, learn to reduce consumption.
• Have food, water, first aid and other emergency supplies in your home.
• If you must leave your home, find some backup hotels where you can keep warm when temperatures drop. When the frigid weather hit Texas last winter, many apartment dwellers were forced to stay in hotels that had heat.

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Bernie Carr is the founder of Apartment Prepper. She has written several books including the best-selling Prepper’s Pocket Guide, Jake and Miller’s Big Adventure, The Penny-Pinching Prepper and How to Prepare for Most Emergencies on a $50 a Month Budget. Bernie’s latest e-book, FRUGAL DIY has just been released on Amazon. Her work appears in sites such as the Allstate Blog and Clark.com, as well as print magazines such as Backwoods Survival Guide and Prepper Survival Guide. She has been featured in national publications such as Fox Business and Popular Mechanics. Learn more about Bernie here.