Texas ranked among cheapest energy states in the nation
As the U.S. continues to experience record-breaking heat, many want to keep the air conditioning on as much as possible – but that’s more costly in some states.
TEXAS (KIAH) – As the U.S. continues to experience record-breaking heat, many want to keep the air conditioning on as much as possible – but that’s more costly in some states.
A recent ranking from WalletHub, a personal finance website, aimed to rank “the most and least energy-expensive states.” Using data from the U.S. Bureau of Labor Statistics, WalletHub compared the average monthly energy bills in each of the 50 states and the District of Columbia.
To do this, WalletHub used an equation that factored in the average monthly consumption of electricity, natural gas, heating oil, and fuel, as well as the average prices of these types of energy.
According to the study, Texas is the third least energy-expensive state in the U.S. and stood out for its low motor fuel price and its home heating-oil consumption per consumer.
Data shows Texans pay $153 on average for their monthly electricity and $68 for their monthly natural gas. They also typically pay about $158 a month to fill up on gas at the pump.
The cheap price of natural gas in the state also influences Texas' ranking, WalletHub explained. Natural gas is a big source of energy for Texans, but the state also produces quite a bit of it.
In fact, no state in the country produces more crude oil and natural gas than Texas. The state produced 42% of the nation's crude oil and 27% of its natural gas in 2022. That should be no surprise considering Texas is home to the nation's most oil refineries and biggest refining capacity.
Texas is the highest energy consumer in the nation across all sectors. Over half of the state's energy consumption comes from the industrial sector, including refineries and petrochemical plants. About 23% of the nation's industrial sector energy is used by Texas’ industrial sector.
The 10 least energy-expensive states in the U.S. are ranked below:
- District of Columbia
- New Mexico
- Texas
- Nebraska
- Kansas
- California
- Florida
- Arizona
- Louisiana
- Nevada
Curious to see where other states rank? Check out the full study on WalletHub’s website.