Sunday, November 4, 2007

Natural Gas Beats Heating Oil for Home Owners

The Associated Press is reporting that with his furnace sputtering its final gasps, Charles Comito decided it was time to trade in his heating oil system for natural gas this year in 2007. The switch cost Mr. Comito $4,400, a price he says will be worthwhile in the chilly months ahead.

"It was for the convenience and cost," said Comito, a 71-year-old resident of Little Egg Harbor, N.J., who lives in a three-bedroom ranch-style home.

The Associated Press is reporting that with oil topping $90 per barrel, some homeowners are weighing whether the price tag for switching to a natural gas furnace makes sense. The home owners major decision may depend on a variety of factors, including the availability of natural gas lines, an issue in the Northeast, where gas pipelines have historically been less common.

The Associated Press is reporting that costs vary depending on the size and location of the home, but switching a typical three-bedroom house from heating oil to natural gas might run an average of $5,000 to $6,000 and the removal of an oil tank, which some local governments offer rebates for, might run an average of $2,000 additionally.

The Associated Press is reporting that since early 2006, heating oil has been more expensive than natural gas and is currently nearly double the cost, according to Tim Evans, an energy analyst with Citi Futures Perspective. On Thursday, the price of crude oil, which has surged 20 percent in one month, reached a record of $96 per barrel.

The Associated Press is reporting that while natural gas prices are also rising, the Energy Department says those who rely on heating oil will face much higher prices this winter, while those who use natural gas should only see a moderate price increase. Heating oil customers will pay an average of $319 more this winter than last, while natural gas customers are forecast to pay $78 more for heat between October and March.

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