Heating Oil

Oil Vs Natural Gas

• 
• 
• 
• 

According to the U.S. Department of Energy, oil heat systems are 16% more efficient than gas heat systems and 30% more efficient than electric heat systems. From a cost standpoint, oil heat cost less than gas heat for 11 out of the last 12 years. In fact, the U.S. Department of Energy also expects gas prices to rise an average of 31% faster than oil every year through 2010. U.S. Department of Energy statistics also show that electric heat costs up to four times as much as oil heat!

It is also important to note that the 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 according to US EPA publication AP-42, 4th Edition.

When comparing oil heat to natural gas, it's important to keep in mind that oil creates 140,000 Btu's of heat per gallon, while the gas only creates about 100,000 Btu's of heat per therm. So, in order to compare the cost of natural gas to heating oil you need to do a simple calculation because they use different units of measure. You must multiply the number of gallons by 1.4 to equal the therm equivalent. To find the gallon equivalent you must divide the number of therms by 1.4.

To illustrate oil versus natural gas pricing, below is a sample conversion using an actual Con Edison customer bill from the 2006 winter heating season:

Total Gas Charges (114 Therms):	$232.14
Minus Taxes (4.0%):	$9.29
Subtotal	$222.85

Now take this number and divide it by the number of total therms used, 114.
222.85 divided by 114 therms
= $1.955 per therm X 1.4 (Btu equivalency)
= $2.737 per gallon equivalent!

To illustrate how many gallons 114 therms equates to, you must divide it by 1.4.
114 therms divided by 1.4 = 81.4 gallons of heating oil.

So, it is important when comparing gas prices to oil prices that you do this simple conversion to fully understand the cost of gas heat. It will help answer the question everyone asks, which is cheaper, oil or gas? So the choice is clear — Oil is a clean, cost effective solution for all your heating needs.