Energy Prices and RE budget

[dex]

Has the run up in all forms of energy prices affected your RE budget?

I'm still working and my total estimated gasoline cost are estimated to rise from $1,400 to 2,000/year.
Since I just moved into an apartment from a house my heading costs have gone down significantly.

Health insurance is always a concern. Energy prices also affects most things we buy from food to travel. With India and China on the rise I think higher energy prices are here to stay. There is one hope. Extreamly deep well drilling may tap into very large oil reserves.

 

[Martha]

The increase in energy prices is playing a part in whether we decide to sell our 4-plex. Our bill for natural gas for November was $798. The next three or four months will be much higher. We did some small rent increases, but we are at the top of the prices we can charge in our market.

These costs definitely effect the budget.

Also, we are seriously considering moving from our community. Our town has a serious financial problem due to retiree benefits. The plan is to increase property taxes 7% a year for the next three years PLUS increase water and gas rates to help cover the shortfall.

 

[Eagle43]

http://www.dfw.com/mld/dfw/13492842.htm
Well, the morning paper told us that the electricity was increasing.  It also mentioned natural gas at 48% or more.  Then phone bills will increase, thanks to Senate Bill 5, whatever that is.  My property taxes are already high; they're higher than NORDS, and he's in Hawaii, for goodness sake.  So, Martha's inclination to move sounds good to us, too, here in Texas.  Question is:  where?  I was going to return to my home town, but that's New Orleans.  No thanks.  You can run, but you can't hide.

I'm hoping all these energy increases will improve my I-Bonds return, but I expect little.  I was born at night, but not last night.

There is a bright spot, though.  Now I can become a professional juror.
Quote:
Under a new state law, pay will go to $40 per day, beginning on their second day of service, compared with the current day rate of $6. 

 

[uncledrz]

http://www.dfw.com/mld/dfw/13492842.htm


There is a bright spot, though.  Now I can become a professional juror.
Quote:
Under a new state law, pay will go to $40 per day, beginning on their second day of service, compared with the current day rate of $6. 

Is lunch included?

 

[Andre1969]

I haven't really felt the bite from gasoline price increases yet. I know I paid a lot more this year than last year, but it just hasn't been enough to really make me feel it yet.

As for electricity, I haven't checked yet to see if the prices actually have gone up yet, but the last bill, for the mid-Nov to mid-Dec timeframe, was actually about 11 bucks less compared to the same time last year ($93 versus $104). But my average daily use was also down, from something like 43 Kw/day to 39. The bill for the previous period was almost identical though, $81 both this year and last.

Where I'll probably feel the hit is my oil bill though. Last year I paid $1.74 per gallon, but this year it's market price with a $3.19 cap. They topped me off in late October at the old price, and I haven't needed a delivery yet, but it should be coming soon. Usually I get an oil delivery in Jan, Feb, and April, and then I'm good until the following cold snap. My grandma got oil about a month ago, and I think she paid $2.84 per gallon for it.

 

[Nords]

My property taxes are already high; they're higher than NORDS, and he's in Hawaii, for goodness sake.

Hey, all our property tax increases have come from our home's assessed value more than doubling over the last five years.  The basic rate is still 3.65 mils and homeowners get to deduct $40K off the assessed value.  

Bloomberg's annual ranking reveals the little-known fact that Hawaii is one of the nation's more retiree-friendly states.  Pensions are not taxed, excise tax is only 4%, property taxes are low, and income tax rates top out at 8.5% but are usually about half that for most residents.  I can't complain, and with our solar credits we won't be paying taxes for another six years. Our kid's UTMA has paid more state taxes than we have.

Our heating bills haven't gone up a penny in almost 17 years!

There is a bright spot, though.  Now I can become a professional juror.

Oooh, I think that's still around $30/day here but you could easily spend that on parking.  So far I've escaped the honor.

I haven't really felt the bite from gasoline price increases yet. I know I paid a lot more this year than last year, but it just hasn't been enough to really make me feel it yet.

In 1999, my last full year of bicycle commuting, the two of us spent $670/year on gas. In 2000 & 2001 we spent $1100/year on gas. (That $500 bicycle more than paid for itself.) I retired halfway through 2002 and our gas bill plunged to $850/year. (ER has paid for itself too!) Since then our gas bill has crept back up to $1100.

Next year I won't be driving around for non-profit volunteer work and spouse's Reserve work has been cut way back. Despite rising gas prices our spending will probably drop back down to the $900 range. Unless the surfing is really really awesome...

 

[cute fuzzy bunny]

Not here. We hold a ton of energy stocks and they're up so much I dont feel bad about paying a little more at the pump and to the utilities company.

Last time I filled up with mrs () she commented about how much more it cost to fill up the car. I said "thats ok, we made about four grand on our energy stocks just yesterday". Sort of took the sting out of that extra fifteen bucks.

We also own a lot of Healthcare thats also been doing pretty well.

 

[Calgary_Girl]

Not here.  We hold a ton of energy stocks and they're up so much I dont feel bad about paying a little more at the pump and to the utilities company.

Last time I filled up with mrs () she commented about how much more it cost to fill up the car.  I said "thats ok, we made about four grand on our energy stocks just yesterday".  Sort of took the sting out of that extra fifteen bucks.

Same with us. It makes it easier to pay more for heating the house when I know that our energy stock portfolio is also up

 

[AltaRed]

Same with us.  It makes it easier to pay more for heating the house when I know that our energy stock portfolio is also up 

Certainly has helped my portfolio as well, but energy stock prices, particularly of E&P companies, are at their peak with nowhere to go but down. A good time to take some profits off the table. Earnings and cash flow (and thus stock prices) will decrease in 2006 due to higher costs for land, seismic and drilling.

P.S. It also helps that Albertans have the pleasure of getting some price protection this winter from natural gas prices courtesy of the Alberta government which is awash in money from ever increasing royalty payments (note most mineral rights in Canada are owned by the government, not private interests).

 

[cj]

Where I'll probably feel the hit is my oil bill though.  Last year I paid $1.74 per gallon, but this year it's market price with a $3.19 cap.  They topped me off in late October at the old price, and I haven't needed a delivery yet, but it should be coming soon.  Usually I get an oil delivery in Jan, Feb, and April, and then I'm good until the following cold snap.  My grandma got oil about a month ago, and I think she paid $2.84 per gallon for it.

Andre - where do you live?  We are in Maryland, and our oil is capped at $2.54.  We got a delivery last Friday, and it was $2.49/gal.   But you are right about the fill-the-tank-at-year-end; saves money into the following year when prices are rising, especially like they are now.

The programmable thermostat we put in at the beginning of last winter sure helps a lot.  We don't have to remember to turn the heat down at night or when we go to work in the morning.

DH got a job this year 1.5 miles from home, so his gas is waaaaay down. 

Every little bit helps!

CJ

 

[cute fuzzy bunny]

I'm not at all sure that energy cant continue to climb. It appears we've been conditioned to $60 oil and $2 gas. I doubt the supply of product will go up considerably. Maybe some short term stumbles but i'm invested in this with a 20-30 year horizon. Granted if oil hit $100 a barrel I'd probably bail, but this looks more like 2000's nasdaq 3000 than 5000...

I think the only serious problem could come from a major breakthrough in an alternative like solar or fuel cells. Should someone come up with the two-orders-of-magnitude improvement in price/performance needed to really make these make sense, that could shoot big oil in the foot pretty quick.

Or they could just bury him next to the guy with the 100mpg carburetor...

 

[Nords]

I think the only serious problem could come from a major breakthrough in an alternative like solar or fuel cells.  Should someone come up with the two-orders-of-magnitude improvement in price/performance needed to really make these make sense, that could shoot big oil in the foot pretty quick.

The solar technology has been "almost there" "any day now" for the last 20 years.

Today's solar price increases are being fueled by govt subsidies (not just the U.S. feds & states but worldwide, particularly Japan & Germany). The big manufacturers are ramping up their production lines to meet demand, so their margins are improving at the same time that their sales are rising. That really is different this time. So someone is bound to spend the R&D money to find the breakthrough.

In the meantime we'll be earning 5% on our investment in clunky last-millenium technology. It's not instant gratification but it's sure a hedge against $100/bbl oil.