Home Heating Oil Roller Coaster - Now What Do You Do?
November 24, 2008 | Leave a Comment
Below is a reprint of an article from “The NEWS”. The weekly publication for HVAC contractors. I decided to reprint it because it does a great job of explaining the recent turbulence of the Heating Fuel Oil market as it relates to end users.
The bottom line though, is that of all the home heating fuels available (Gas, both Natural and LP, Electricity, and Fuel Oil), Fuel Oil is by far the most volatile recently and without a doubt, the most difficult in relation to making a change when the cost becomes unbearable for the budget.
Is there a solution? One possible answer, especially if the homeowner’s current equipment is getting age on it, is to change over to a more efficient Duel-Fuel or Hybrid home comfort system. The Duel-Fuel or Hybrid system incorporates the use of a high efficiency Gas Furnace and a high efficiency Heat Pump in combination. The Heat Pump starts as the primary source of heat, and operates the most efficient until outdoor temps drop into the upper 20s or low 30s. At this point, the Thermostat senses the outdoor temperature and creates a call for heat from the Gas Furnace. The two work in combination to maximize the utility costs.
As the article below explains the roller coaster effect that heating fuel oil has had on those that utilize this source of fuel, brings to mind a recent statement that I heard on the news. In comparison, the recent drop in gasoline prices has given to a concern that consumers and the government will become complacent about the need to seek new and more efficient sources of energy for our future. Read more
Heat Pumps And Natural Gas Price Predictions
July 14, 2008 | Leave a Comment
According to a report from Washington, the average price of regular gasoline is expected to remain greater than $4 per gallon until the fourth quarter of 2009, according to the U.S. Department of Energy’s Energy Information administration. With oil prices staying high, it is now projected that the average price for regular-grade gasoline will stay above $4 per gallon for the rest of the year. This is an increase of more than a dollar per gallon above last year’s price. That trend is expected to continue in 2009, with an average price of $4.06 per gallon.
While the nation is currently focused on the high price of gasoline, by this winter the focus may well change to electricity and heating fuels. The EIA notes that the sustained high prices for petroleum are pushing up the spot price of natural gas. The spot price is projected to average $11.86 per thousand cubic feet (Mcf) in 2008 and $11.62 per Mcf in 2009, a 65 percent increase over the 2007 average. The trend is already apparent in the electricity market, where prices are projected to increase 5.2 percent in 2008 and 9.8 percent in 2009.
What can you do? Read more