The nationwide increase in gas prices won’t have an immediate impact on Boston University, but experts warn that the trend could be problematic for the University’s budget and operations in the future.
“I think it’s too early to tell what this may look like, but it is something that we are watching closely,” said Derek Howe, the University’s senior vice president of operations.
Oil prices soared in early March after many nations issued embargoes on Russian oil following the country’s invasion of Ukraine.
The current price for a gallon of gas in Massachusetts is $4.08 as of April 13, in line with record-breaking highs not seen since the 2008 financial crisis.
“We’re in the process of finalizing the development of the Fiscal 2023 budget and we’re trying to make sure that we put enough in the budget, in contingencies, for things like this,” Howe said.
Prices for the supply of natural gas to the University have been locked in through Oct. 2024, but the method of distribution to BU is beyond the control of the University, Howe said, noting that between $55 and $60 million of the budget has been allocated toward energy costs.
On the other hand, the increase in gas prices may have the effect of expediting BU’s transition to carbon neutrality.
“I can tell you that Boston University buys a lot of natural gas and heating oil to heat the dorms for their buildings and their water,” said Robert Kaufmann, a professor in the department of Earth and Environment within the College of Arts and Sciences. “So, if prices remain high, those high prices will favor alternative sources of energy as opposed to oil and gas.”
President Robert Brown announced in an email last fall that the University will no longer invest its endowment in fossil fuel extractors and promised to not commit new investments in dedicated fossil-fuel-focused products.
Both Howe and Dennis Carlberg, associate vice president of sustainability at BU, said the uptick in gas prices will not affect BU’s sustainability or divestment efforts. Carlberg, on his part, said the University already has a “pretty aggressive” clean energy program with plans to expand its solar power program in coming years.
“If we do have a sustained increase in energy prices, then we can see more value out of sustainability initiatives, especially around energy efficiency,” Carlberg said.
