Common Misconceptions

About Oil Heat Costs

Misconception	Heating with oil is more expensive.
Reality:	Oil heat is one of the best values in home heating today. Since the 1950’s heating oil prices have stayed virtually the same relative to inflation. The heating oil industry is regulated by the most tried and true price control there is, good old American competition. Regulation by the Public Utilities Commission hasn’t held down natural gas prices. In 2005 alone, the gas company raised its rates 20% across the board in the Portland metropolitan area. The truth is oil heat has been less expensive than natural gas for the average homeowner for 10 of the last 11 years. That is according to the US Department of Energy.
Misconception	Heating oil is inefficient.
Reality:	Heating oil is a very energy efficient means of heating. It burns hotter than natural gas which means it feels warmer, and over the last 12 years heating oil has been, on average, less expensive than gas. New oil burning equipment is every bit as efficient as new gas equipment, and their expected life is twice as long. And, old gas furnaces are just as inefficient as old oil furnaces, with a greater chance of carbon monoxide problems.
Misconception	The instability of the Middle East is a threat to oil heated homes.
Reality:	The world's oil reserves will last for a long, long time. The USA currently has a Strategic Petroleum Reserve with a capacity of 700 million barrels. With over 36 oil-producing countries, we are not dependent upon any one nation for our supply and in fact, the U.S. is the third-largest oil producer in the world with 33 American states producing almost half of our supply. Studies show that there are nearly two trillion barrels of crude oil in the world still untapped.