OIL VS GAS HEAT-HELP! I am starting the process fo changing to a brand new heating system-steam to hot water.

Question

The cost of the entire new system is around $20,000. Our current oli/steam radiator system is very old (90 years), inefficient and extremely expensive to heat the house. My next question is-SHOULD I STICK WITH OIL OR CHANGE TO GAS?. Can anyone give me pros and cons, experience with either. I know the BTU's are better with oil, but the efficiency rating of the burners and price per gallon is better with gas. Even if gas prices go up, will they ever meet the currently ever rising oil prices? I have to make a decision very quick as to keep the price this low, it has to be completed this month. Price will stay the same regardless if we choose a gas or oil burner. Also, I don't think the price includes a new oil tank, which would seem to be appropriate as well. I live in the northeast which means we need heat 5-6 months of the year!

Answer 1

First off, needing to make a fast decision due to a price increase throws up a red flag. Have you gotten several prices from different installers? If not, it's time to do so.

Call your gas company and ask if they have any programs that will save you $ switching over. Most do and most have discounts on installations as well. Gas or oil? I'd go with gas. Both are going to increase in price but so far gas is much cheaper than oil. This will probably continue to be the same for many years. We have enough gas, the price will increase because the price of oil keeps going up and the gas companies will be able to get away with it as long as they keep their prices lower than oil.

Answer 2

The simplest way to put it is With oil you pay up front and have it in your tank as you need it. If you are on automatic delivery its not a big problem running out. If your  an "independent" buying from the lowest provider they may not get to you in time. Also with the price of oil going to $145 per barrel, smaller suppliers are being squeezed out. In our local area in eastern PA, a local supplier was arrested as he took prepayment and contracts on automatic deliveries in the spring/summer of 2007 and could not deliver at the quoted prices fro the winter of 2007 and early 2008.

Personally metered gas is the way to go. You pay for what use and not what is stored on site.