Oil vs. Gas
You make many choices that affect 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 the following:
1. Price spikes are temporary. Even though the price of oil has shot up recently, historical trends suggest that it will fall again. In the past, every sharp rise in oil prices has been followed by a corresponding drop.
2. Prices fluctuate in every energy market. As a result, it really doesn’t make economic sense to convert from oil to natural gas. In fact, natural gas prices are currently higher than they have been since January 2006.
3. There are hidden costs to converting equipment from oil to natural gas. Consider the following numbers:
CONVERT to natural gas
NEW oil system
Removal of
underground oil tank
underground oil tank
$1,700
$0
Line chimney
(gas-only safety issue)
(gas-only safety issue)
$1,500
$0
New heating system,
including installation
including installation
starts at
$3,500
$3,500
starts at
$3,500
$3,500
Total typical cost
$6,600
$3,500
4. Oil is clean, modern, efficient and environmentally friendly. Natural gas is comparatively risky, expensive and less efficient as a source of heat than oil.
