Cutting off Russian gas supplies this winter will devastate the European economy, starting with Germany. Consumers in the United States will also feel the effects: natural gas prices rose 95 percent in U.S. futures markets during a crucial period from November to March, Forbes writes.

Few consumers think about natural gas prices and their winter heating bills, which will nearly double this year compared to last year. Those of us who live in the cold climate of the Northern Hemisphere are about to face a massive increase in heating costs.

When comparing last year's closing prices for the five-month winter natural gas contract, which runs from November through March, with prices for September 1, 2022, U.S. natural gas futures markets are up a staggering 95% from last year.

Fortunately, Americans will not face the massive price increases that have already affected Europe, where some regions have seen a staggering 400% or more increase in wholesale gas prices. The United States is the world's largest producer of natural gas, and domestic reserves, while below the five-year average, are more than adequate. More importantly, the supply is ours, we are not tied to Russia (the second largest producer of natural gas in the world), and we control our own destiny because of our energy independence.

Germany faces the opposite problem; it is a model of dependence on natural gas, and now Russia holds all the cards. The consequences are enormous because Germany has the largest economy in Europe and the fourth largest in the world, and its fate will determine the fate of the European and world economy this winter.

Leaving aside all the consequences for industrial production of high natural gas prices, the people in the northern hemisphere who depend on natural gas for their heating needs, especially in Europe, are indeed facing a severe winter. Russia has cut off gas supply completely through one major pipeline, and supplies through two others, which pass through Ukraine, have been severely curtailed and will likely be cut off completely by the end of the winter. Natural gas prices in Europe, while staggeringly high as of this writing, may not come close to their potential upper limit if Russia cuts off all gas supplies to Europe or if the winter is colder than usual.

What does all this mean for U.S. gas prices? Current prices are about double what they were last year, and the deepening European gas crisis will continue to affect U.S. consumers this side of the Atlantic. Europe needs natural gas and will import as much LNG as it can. And while the U.S. is a major source of LNG because of its abundant natural gas reserves, it is taking years to build LNG export capacity. Existing levels of LNG exports to the U.S. are literally exhausted in terms of capacity. This means that no matter how high LNG demand becomes, U.S. gas prices will not directly follow European stratospheric gas prices, but they will likely remain elevated and possibly rise as the winter cold weather sets in.

In addition, if Europe does not have enough natural gas for its energy needs, it will have to use more oil and coal as substitutes, and this will be reflected in continued price increases for both of these products, which will also support natural gas prices in the United States.

Suffice it to say that Northern Hemisphere consumers will face an expensive and, in Europe's case, possibly cold and dangerous winter season this year. Americans should be prepared for much higher winter heating bills than last year and plan their spending accordingly.