Heating oil is a primary fuel source for heating homes in the northeast, but natural gas has become more common over the last decade. Essentially, heating oil is older technology. Today, replacement systems and new home builds are either electric or natural gas. Still, the Energy Information Administration (EIA) reports that nearly 5 million households rely on heating oil. Over 80% of those people live in the Northeast.
Heating our homes is an absolute must in the winter, especially when you live in the northeast where temperatures regularly dip below freezing. So what’s the best way to warm up? Is heating oil the better option compared to natural gas?
In this head-to-head comparison of heating oil and natural gas we’re examining the biggest considerations for energy consumers in the Northeast – cost, convenience and efficiency – to help you figure out which is the best fuel for heating your home.
Cost of Heating Oil vs Natural Gas
Let’s go ahead and start with the factor that’s at the top of most people’s minds during the winter when energy costs are increasing. In general, natural gas is typically much less expensive compared to heating oil. The average household in the Northeast can be heated with natural gas for approximately $761 from November to March whereas heating oil costs $1,851 during that same period.
The big disparity in price is because even though they are both fuels, heating oil is based on crude oil prices and natural gas is its own commodity. Natural gas is already cheaper to produce, and the latest EIA Short-Term Energy Outlook report notes that the price of natural gas is down year-over-year. That’s not the case with the price of crude oil, which is relatively unchanged.
There’s also a unique difference between natural gas and heating oil in terms of paying for it. Heating oil must be purchased in advance to heat a home, unlike natural gas that is paid for after a usage period based on exactly how much you use. That means you’ll need to accurately estimate your heating oil needs or you could end up purchasing more than you need or running out when you need it most.
Because heating oil is significantly more expensive than natural gas, you may be wondering if you should convert to a gas-burning heating system. Making the switch to natural gas can dramatically reduce your annual heating costs, but the conversion can cost a pretty penny. Most homeowners will pay between $6,000 and $15,000 for a new natural gas burning system. The price goes up for larger and more complex systems.
It could take over a decade for the energy savings to offset the expense, but switching to a gas-burning system can still make sense for some homeowners. For instance, if you plan to be in your home for the foreseeable future, converting can be cost effective. Homeowners that plan on selling their home in the near future may also want to consider converting to natural gas, which most buyers prefer due to the expense of heating oil.
The Convenience of Using Natural Gas vs Heating Oil
At no other time is convenience more important than during the cold winter weather. Just getting out of your home can be an inconvenience after inches of snowfall overnight.
For heating, convenience is a factor in terms of how easy the heating fuel is to acquire and how easy it is to use. When it comes to convenience, natural gas is the clear winner. Because there’s a natural gas line connected to the home, there should always be a ready supply for heating that you can get flowing in moments.
That’s not the case with heating oil. You have to call a supplier and schedule them to come out and refill your oil tank for the heating system. If you don’t carefully track how much heating oil is used you could be left in the cold, which is far from convenient.
Efficiency Considerations With Natural Gas and Heating Oil
Something that’s going to impact the amount of heating oil or natural gas that’s used is the efficiency of the fuel source. There are two ways you can look at efficiency: how well the home is heated and how much fuel is needed to heat the home. Here is where heating oil has the edge.
It’s a good thing heating oil is so efficient or it would cost even more than natural gas. Heating oil is considered more efficient than natural gas because it burns hotter and creates more heat at a faster rate. That means it heats a home quicker and keeps it warm without increasing the heat. It also requires less heating oil to heat a space compared to natural gas.
Efficiency is closely tied with the eco-friendliness of fuels. The more efficient a fuel is the less it’s burned and as a result there are fewer carbon emissions. The National OilHeat Research Alliance (NORA) estimates that heating oil is 16% more efficient than natural gas. The tradeoff is it releases more carbon than natural gas.
Head-to-head, natural gas is the clear winner for anyone who wants the least expensive heating source that’s also the most convenient option. But if your top concern is efficiency, then heating oil may be the better choice.
Provider Power can help you secure reliable electricity and natural gas services that will keep you comfortable even when it’s freezing outside. Our reasonable fixed rate energy plans are available in Massachusetts, Maine and New Hampshire. Use your zip code to quickly find available plans!