Playing with numbers – on and off the natural gas grid to generate electricity in homes and dodge the costs of decades of “green” energy policies - that cost ten times that of using natural gas
There is a lot to consider – but let’s lay out some starting points – in the context of averages for the US.
How much natural gas does the US have?
Proved Reserves of Crude Oil and Natural Gas in the United States, Year-End 2021 (eia.gov)
“Proved reserves of U.S. natural gas increased by 152.1 trillion cubic feet (Tcf) (32%), from 473.3 Tcf at year-end 2020 to 625.4 Tcf at year-end 2021 (Table 10), establishing a new record for natural gas proved reserves in the United States.”
“The annual total of natural gas proved reserves in Alaska increased in 2021 by 63.3 Tcf, almost tripling the state’s total from 36.5 Tcf to 99.8 Tcf—the largest increase of all states in 2021.”
Go Alaska!
Proxy for the price of natural gas – gas futures over the last 30 odd years.
Natural Gas Futures Chart — NG Futures Quotes — TradingView
A few spikes and an expensive period over 2003 to 2007, but prices are now the same as they were 25 years ago. No inflation there! I wonder how much natural gas prices to homes are now, compared to 25 years ago?
Around 62 million US homes are hooked up to natural gas v 144 million US homes = 43% more than 2 in 5 homes.
Average price of US natural gas to households?
USA natural gas prices, March 2023 | GlobalPetrolPrices.com
5 cents per kWh.
Now, I am not suggesting that gas suppliers are not subject to the same “government control” or “monopoly control” risks as other sources of energy, but perhaps with a little competition..?
Oil on the other hand – against using generic first month futures is around four times the price it was 25 years ago – despite the US having some of the largest oil fields in the world.
Crude Oil WTI Futures Price — CL Chart & Quotes — TradingView
Okay, that’s price and supply “ball-parked”.
Average house size – 2,273 square feet – call it 2,500 for ease.
What Is The Average Square Footage Of A House? | Rocket Mortgage
Average electricity consumption per house per year – 11,000 kWh
Electricity use in homes - U.S. Energy Information Administration (EIA)
Now there are lots of regional variations for obvious reasons – but these are averages.
Fun fact, each barrel of oil (42 US gallons – 35 Imperial gallons). Each barrel
One barrel of oil contains 1,700 kWh of electricity
How much energy is there in a barrel of oil? | Peak Oil News and Message Boards
“The 5.8 million Btu figure was established by the IRS for energy tax purposes and is called a Barrel of Oil Equivalent, or BOE. One barrel of oil has the same energy content as 5,800 cubic feet of natural gas. A cubic foot of natural gas contains about 1,000 Btu. For electricity, 1 barrel is 1,700 kilowatt hours.”
Ok, now my arithmetic says that the average American house consumption of 11,000 kWh per annum can be satisfied with around 6.5 barrels of oil a year – or – around 37,500 cubic feet of natural gas.
Remember that Natural Gas price chart above? Well, each contract costs around 3.5 bucks and buys 10,000 MMBtu.
Do you own conversion of the cost of 37,500 cubic feet for a house from 10,000 MMBtu for a futures contract! Something like 37,500 times 3 and a half bucks divided by 10 million? 1.3 cents? Help me out here! Haha. Recall the price above of US household natural gas of 5 cents per kWh.
Ok, let’s grab some information on natural gas generators for homes.
How Much Do Natural Gas Generators Cost? Find Out Here (wpowerproducts.com)
Generators That Run On Natural Gas (Detailed Guide of 2022) (generatorinsight.com)
Ok, pulling back down the US household characteristics.
Average household is 2,500 square feet and consumes around 11,000 kWh of electricity a year.
The natural gas equivalent of 11,000 kWh of electricity is 5 cents per kWh = 550 bucks a year for the annual 37,500 cubic feet equivalent.
How does that compare to the average US energy bill?
Well, there may be more up to date and reliable data, but from here:
Average Utility Costs by State Breakdown – Forbes Home
“Americans spend a monthly average of $429.33 per month on utilities, according to Forbes figures. That comes out to Americans spending about $5,151.96 per year on utilities, or 10% of their yearly income, according to the Consumer Expenditure Survey by the U.S. Bureau of Labor Statistics.
“Alaska has the highest monthly utility bills in the nation. Utah has low energy prices, low property taxes and the lowest monthly utilities in the U.S.”
Umm. Wtf is going on in Alaska? Export all natural gas and make residents pay through the nose???
To me, the ten times higher household energy bill v natural gas is the price Americans are already paying for existing “Green Deal” subsidies, taxes, regulations etc. Pretty staggering and a global phenomenon.
Anyway, Americans are paying potentially ten times as much for energy compared to if they got their household electricity/energy from natural gas.
How much would a domestic natural gas generator cost?
From the earlier link
How Much Do Natural Gas Generators Cost? Find Out Here (wpowerproducts.com)
“Unsurprisingly, the best way to get a feel for natural gas generator prices (and find the best deal) is to shop around. Once you do you’ll find the sticker price of whole-house generators typically ranges from $4,000-$15,000 (before tax) and are commonly sized between 6 kW and 20 kW.
Twenty kW is typically large enough to power virtually everything in a home of up to 3,000 square feet, but is largely dependent upon how many a/c units and electric heaters (if not a gas heater) are at the home. Homes between 3,000 – 6,000 square feet typically require a 40-50 kW, which ranges in price from $20,000 – $25,000.”
From the other link:
Generators That Run On Natural Gas (Detailed Guide of 2022) (generatorinsight.com)
Two Types Of Natural Gas Generators
“Prime generators typically cost between $2000 To $4000”
“Standby generators typically cost between $700 to $2000”
So, care needed. Check out the articles fully. Lots of useful information on pros and cons in both.
Here is a link to start you off if you are interested. A starting point as most of the first ones seem to be a mix of natural gas, propane and diesel.
Best Whole Home Natural Gas Generator in 2023 | Selection by Tool Review
Check out this monster” (2,500 bucks? Maybe eBay has some too!).
The proof of the pudding will be in the eating. Lots of personalization and preferences needed. But hey, ammunition is useful too!
Onwards!
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Hi Peter, Earlier today, Fox News on YouTube has a short segment about Biden’s Green New Deal falling apart!