New research released today from The Boston Consulting Group (BCG) says natural gas production is saving families between $425 to $725 per year and that number could grow to as much as $1,200 per year by 2020. This equates to 3 to 6 percent in additional discretionary spending per year for each household.
“Our research shows that cheap natural gas is already having a bigger
impact on family budgets than many Americans think,” said Justin Rose, a BCG
partner and a co-author of the study. “Those benefits should grow in the years
ahead as more of the cost savings from low gas prices are passed along to the
These findings echo those of an IHS study released in September. The IHS study found that the average American household saw an additional $1,200 as in disposable income in 2012 as a result of unconventional oil and gas production. Those savings could amount to $3,500 by 2025, the IHS study found.
American families should also consider using natural gas for the following purposes in order to see maximum savings:
Heating and Electricity: The Wisconsin Public Service says homeowners can save about $1,700 a year by switching to a gas furnace. CNBC reported that homeowners “could save $79 a year using a gas range, $81 with a clothes dryer, and $297 with a water heater.” And with the help of government tax credits set to expire at the end of the year, homeowners can save $150 of the cost to install a gas hot water boiler or furnace.
Fuel: Although natural gas cars cost a little bit more initially than those that run on gasoline, savings from lower fuel costs can help make up the difference – and fast. Ford says that motorists who drive over 30,000 miles a year can see the savings in as little as two years.
Natural gas isn’t just saving families money. It’s also helping local businesses and city governments save money, as well. Read about how at ThinkAboutIt.org.