Converting from Gas to Oil, Heating System

Understanding your options...
OIL vs. GAS

You make countless choices that affect if your household . budget as well as the comfort and safety of your family. One of the most important , decisions is how to heat your home. When comparing oil and natural gas, it's important to keep in mind that oil produces 140,000 Btu's. of heat per gallon while a gallon-equivalent of natural gas generates about 100,000 Btu's. In other words, you would need 40% more natural gas to generate the same amount of heat as oil.

Gas prices have DOUBLED

Although oil prices can be volatile, remember that price uncertainty is not limited to oil. Any item traded on a commodities exchange goes through periods of ups and downs, including natural gas. As the chart shows, natural gas prices have more than doubled in the past few years. Projections from the U.S. Department of Energy also show that the price of natural gas is expected to increase three times faster than the price of oil in the future.

Source: U.S. Department of Energy .

Converting to natural gas cost MORE
than buying a new, modern oil heat system.

Time to replace your heating system? Are you concerned about your oil tank? Although the costs of new natural gas and oil heating systems are similar, converting to gas has "hidden" costs that make it more expensive than staying with oil. Consider the following about switching to natural gas:

Because natural gas prices are high you'll never recoup the money you spent to convert.
The added costs of conversion to gas, including as much as $2,000 to reline your chimney mean.the payback on your investment in a new gas system will be longer than that for an oil system.

Get up to $3,000 to replace your oil tank

Thanks to a new state program, New Jersey homeowners can apply for grants that in many cases will fully cover the cost of replacing a nonleaking, underground oil tank.

Today's tanks are safe and corrosion protected, so you can safely store heating oil in the ground; in a basement, garage or utility room; or outside your home. Your local heating oil dealer will be happy to help you with the application process. To find out more about the tank grant program, visit. www.NewTanksNJ.org.

Better options includes

Buying a high-efficiency oil heating system. Today's new systems burn 95% cleaner than those of 30 years ago. The result is lower fuel use and service Costs.
Upgrading to a new worry-free, double-walled oil storage tank at a fraction of the cost of converting to gas.
Purchasing tank protection so your oil tank is covered in the rare event of a leak. Call your local oil heat dealer for information.

In the news:
high natural gas prices are here to stay.

The natural gas markets are likely to he turbulent in the months ahead

USA Today 6/05/07

Natural gas usage can increase with hot weather as air conditioners spark electricity demand from gas-fired generating stations. Higher summer demand can result in lower stockpiles to meet winter heating requirements.

Bloomberg LP, 6/05/07

Since 1999, residential natural gas prices in the United States have exhibited an overall increasing trend

Energy Information Administration, 2006

Natural gas has long been one f the more volatile commodities and while there are bulls and bears on . the direction of its price, they agree that it twill get more volatile.

Financial Times, 6/ 04/ 07

Electricity is expensive

Heating with electricity
costs two times more than
heating with oil.

The inefficiency of electricity makes it a very expensive heating fuel. Nearly HALF the energy originally created is lost at the power plant and through transmission lines before it ever reaches your home

Heat pumps leave you cold

heat pumps may do the job it you live in a warmer climate, but in our area where we have "real" winders, a heat pump has to use a backup electric resistance heater, which makes it very inefficient. What's more, a heat pumps average output temperature is only about 98°. What may sound warm, but 98° air coming out heating vent on a cold clay can feel like a cool draft. The average output temperature of an oil furnace is 140°.

Reasons why people switch to oil

Convert from natural gas for safety.

We had traces of carbon monoxide in our home.
The unit had to be replaced and we both agreed
we would feel more comfortable we had a new
oil heating system installed. We feel safe now.

Nancy and Richard Bagley

Convert from electricity for comfort.

My electric heater was like using a toaster for
heat. I had a new oil system installed and now `
the house is always comfortable. Plus, I always
have plenty hot water

Tom Wadsworth

How Propane compares

Heating oil produces 140,000 Btu's of heat per gallon; propane produces only about 92,000 Btu's per gallon. This means that you need to burn about 50% more propane to generate the same amount of heat as oil. For example, a home that uses 800 gallons of heating oil per year would need 1,200 gallons
of higher-priced propane.

Three more reasons . .
to choose oil

Controlling winter bills

Oil companies typically have many more 4 programs for minimizing customers winter heating bills than the utilities do.

Clean as natural gas

Modern residential oil burners are one of the cleanest combustion sources in the U.S., producing "near-zero" amounts of particulate emissions per year. That's virtually identical to natural gas."

Abundant hot water

The hot water recovery rate of an oil-fired water heater is twice as fast as a gas water heater and three times as fast as an electric water heater. This means no cold showers! You wait less for your hot water and use less fuel.

"US EPA publication AP-42, 4th edition.

FMA

Fuel Merchants Association of N.I

www.fmanj.org

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