Whether we have a strong winter
impacts many things. From our road
conditions driving to work, the extent of demand for home heating fuels, how
our livestock will fair, and our ski season (including vital tourist revenue
that results from ski season), predicting the degree of the intensity of the
winter season can be important.
But this year it looks like it
could be anyone’s guess…some degree of certainty would be nice, as it can have
a major impact on energy forecasts as well.
For example, natural gas and propane demand.
The U.S. Energy Information
Administration (“EIA”) released its Short-Term Energy Outlook (“STEO”) earlier
this month, which can be found here. The October STEO contains a lot of
interesting information, including, but not limited to, that the “EIA expects
downward oil price pressure to emerge in the coming months as global oil
inventories rise during the first half of 2020.”
However, what really caught my
eye in the October STEO was
the EIA’s prediction as to the upcoming winter.
In my neck of the woods, cattle
ranchers are bracing for a big winter – folks are beefing up (pun intended)
winter structures in their pastures to give their cows some protection from
intense snow storms, and old timers are warning to push calving season later
this year to avoid calves being born during the worst of the early spring snow
storms. Many people in my home state of
Wyoming have already buttoned up their summer homes in the mountains and have
had snowfall since the beginning of the month.
According to The Weather Channel article entitled, It’s
a Record-Snowy Start For the Northern Rockies and Plains and Winter Is Still
Over 2 Months Away, some areas have already been pounded by record-dumping
In fact, The Old Farmer’s Almanac similarly predicts in its winter 2019-2020 forecast, which can be found here, “below-normal winter temperatures” through most of the U.S. coupled with significant snowfall. The 2020 Old Farmer’s Almanac predicts a “snow-verload” of “frequent snow events – from flurries to no fewer than seven big snowstorms coast to coast, including two in April for the Intermountain region west of the Rockies.”
- “The [EIA] forecasts that average household expenditures for all major home heating fuels will decrease this winter compared with the last. This forecast largely reflects warmer expected winter temperatures compared with last winter.”
The National Oceanic and
Atmospheric Administration (“NOAA”) also released the following
Outlook: Warmer than average for many, wetter in the North, which forecasts “warmer-than-average temperatures…for
much of the U.S. this winter.” NOAA predicts
that “[n]o part of the U.S. is favored to have below-average temperatures this
The Weather Channel seems to take
the middle road in its forecast entitled, Winter
2019-20 Will Likely Be Warmer Than Average in Southern U.S. & Colder Than Average
in Parts of Northern Tier, and also includes the following disclaimer: “Given
some of the conflicting factors listed above, this forecast will likely change,
so be sure to check back to weather.com for updates.”
What will this winter be like and
what will the weather’s impact be on the domestic energy outlook? It is anyone’s guess!