Long Island Oil Company
Serving Long Island Since 1956 
 

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ARE YOU ON THE FENCE ABOUT GAS HEAT?

Let’s state the facts:

  • Oil heat costs less
  • Oil heat is safer
  • Oil heat is more efficient
  • And is better for the environment

Oil Heat costs less then gas heat
For 11 out of the last 12 years, Oil heat has been less expensive than utility gas.  And even with the price per gallon increases we’ve seen during the 2004-2005 heating season, natural gas traded at 93% higher than its closing price the year before.

Oil heat is more efficient than gas heat.
According to the U.S. Department of Energy, on average, heating oil is 16% more efficient than the gas utility.

Oil heat is better for our environment than gas heat.
A recent German study shows that heating oil is more environmentally friendly than natural gas, in terms of overall emission.  The report states

“In an analysis of global warming potential using a time horizon of 20 years, natural gas heating is notably more environmentally damaging than oil heating.”

The most significant natural gas emissions from production to end use occur in production, processing and transport.

Oil heat rates are easier to understand than gas heat rates.

Keyspan actually has a section on its web site where you can view gas rates for your zip code.  Try it!  You’ll find that if you ask for “all monthly rates” gas rates are a bit confusing.

 

HOW MUCH DOES GAS COST?
Use this gas calculator

EXAMPLE OF A TYPICAL KEYSPAN GAS BILL
Ask a friend that you know using gas heat and compare

Keyspan Energy Delivery – Rate 140 – Residential gas supply

NATURAL GAS USAGE                       

Meter # 1087926
GAS DELIVERY COST
10/26/2005
ACTUAL reading 09/22/2005 ESTIMATED reading
CCF Used
Therm Factor
Therms used in 34 day(s)
           
1638
-1580
58
X1.0030
58

Basic Service:34 day(s) @$0.2733
First 3.0 Therms in Basic Service
Next 7.0 Therms @ $1.0556
Next 46.0 Therms @ $0.4779
Next 2.0 Therms @ $0.4114
WNA : 58 Therms @ $.028703
Delivery Subtotal

GAS SUPPLY COST
Supply : 58 Therms @ $1.539827

NY State and Local Surcharges
Sales Tax @ 2.5%
Other Costs Subtotal

Total Gas Delivery & Supply Charges

$9.29

7.39
21.98
.82
1.66
41.14

 

89.31

1.61
3.30
4.91

$135.36

Here is how you do the math!

$ 135.36
$ - 4.91
$130.45
Total gas delivery & supply charges
Minus taxes and surcharges
Equals net delivery & supply cost
Divided by total gas consumed (58 therms)
$2.249 Equals cost per therm
Multiplied by 1.4 for Btu equivalent with oil
$3.148 Equals cost per gallon

       

Obviously, the Keyspan radio campaign urging people to covert to gas with the promise that “converting to gas pays for itself” is not that factual.  If the folks at Keyspan honestly believe that homeowners should spend $4-5,000 on an oil-to-gas conversion, only to pay a lot more to heat their home than they were before, then they need a refresher course in Economics 101!

 

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