Many families who have oil heat start thinking about oil to gas conversion. There is a lot to think about and there are plusses on both sides of the issue.
Many say that natural gas is cheaper than oil, especially with all the domestic sources of natural gas being generated. The price of gas is likely to fall. However, as the cost of oil falls, the price difference between the two fuels has narrowed. When oil prices were at $100 a barrel, heating oil prices were at $4.50 per gallon. This would make it twice as expensive to heat a home with oil as natural gas.
The Federal Energy Information Administration (EIA) figures are that delivered oil cost $30 per million BTUs of heat in the Winter of 2013-14. The cost dropped to about $24 in 2014-15 and it is projected to drop still further to about $22 in 2015-16. On the other hand the price of natural gas was less than $10 in 2013-14, dropped slightly last year and is expected to cost about $9 this year.
However, on the other hand, New England has a problem with the availability of natural gas pipelines. That does make the comparative price of natural gas in New England higher than other places, like the Mid-Atlantic and Midwestern states. In New England the difference between natural gas and oil is smaller than elsewhere.
Furthermore, delivery of oil is a much more convenient option when gas pipelines are not available and gas installation is very expensive. On a typical New England winter day consumers use 3.4 billion cubic feet of natural gas to heat homes and businesses, on a cold New England day New Englanders use 4.5 billion cubic feet. Pipeline availability only has the capacity to bring 3.6 billion cubic feet of natural gas into New England daily.
Oil heat is a fact of life in New England. On the positive side, heating oil is safe. Oil will not burn or explode if it leaks, only if it is vaporized, whereas gas leaks can be disastrous even if the leak is outside the home. Oil burns hotter than gas and can bring a home to a warm, comfortable temperature faster than gas.
McKee Energy Solutions is a family business operating in the Cumberland, Rhode Island area for more than a century. We can provide the great service you need to keep you or your family warm and cozy. Please contact us to learn more.