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  Fuel Crisis
Conservation makes more sense than Switching from Oil to Natural Gas.
Exploring Energy Choices
In response to the recent upturn in energy prices, the Consumer Energy Council of America (CECA) has issued a report comparing the economics of switching fuel sources versus investing in conservation. The findings in this study concur with the findings of the four previous fuel switching studies conducted by CECA.
This study concludes that it is financially unwise for consumers to convert from oil to gas heat. In the 95 our of 100 cases where consumers do not need a new heating system, it makes economic sense to stick with oil and invest in conservation. For the 5% of consumers who need to replace their oil heating systems, a careful assessment of conversion costs must be made.
Price Parity: Comparing Oil and Gas Prices
In order to compare conservation and equipment investment options, CECA examined the relative prices of heating oil and natural gas. Although Northeast and Mid-Atlantic oil prices (where the majority of heating oil is consumed) have been lower than natural gas for the last 8 years, this study has been based on price parity between the fuels.
What about Future Prices?
If historical data can be deemed a good indicator of future market conditions, heating oil prices should continue to be less expensive than natural gas. Therefore, conservation techniques will continue to benefit homeowners more than switching fuels.
Deciding Between Investment in Conservation or Fuel Switching
To determine the effectiveness of energy conservation for your home, you must consider your annual fuel usage. Our table measures rates of return for an "average" use home (865 gals. heating oil/year) and for a "low" use home (623 gals. heating oil/year). For above-average use homes, investment returns will be even higher than estimated.

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Address: 805 Church St., Hawley, PA 18428 Phone: 570-226-4823 E-mail: info@paupackfuel.com