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Home heating oil prices are pushing record highs; this does not bode well for the northeast where oil heating is the most heavily concentrated.

Whereas home heating oil prices are skyrocketing Jake Elliott Eagles Jersey , the price of natural gas is headed downward. It used to be that natural gas and home heating oil prices moved in sync with one another, if oil went down, so did gas. This is no longer the case, the two fuels have uncoupled from one another because of the huge finds of domestic natural gas that hitherto had been locked in shale formations. With a combination of new techniques and age old technology Alshon Jeffery Eagles Jersey , it is now possible to tap this gas which is more than a mile deep.

As the price of home heating oil, which is just diesel fuel which is untaxed, continues to rise, the economies of switching the heating system to natural gas become noticeable. The drop in gas prices is having a serious effect on the heating oil business. In the northeast Nelson Agholor Eagles Jersey , where winters are hard and long, home heating oil prices have more than doubled over the last 10 years and are now hovering at almost double the price of natural gas. The US Energy Dept set that at $27 for 1 million Btu’s using oil vs. $13 for 1 million Btu's using gas.

Although fuel prices are driving the switch from oil to gas, the prices are not the only thing. There have been vicious storms and hurricanes along the northeast coast of the Atlantic, these storms flooded many homes Jay Ajayi Eagles Jersey , destroying the furnaces and heating systems. Consumers are taking the opportunity to change fuels and have the conversion done by the insurance payout.

Not cheap:

It's not just a matter of switching; there are a lot of components that have to be changed. The average price for the conversion is anywhere between $2,000 and $5,000 depending on whether the bulky tank must be removed and disposed of. If there is no gas in the area, it usually becomes a neighborhood switch as there are costs associated with getting the lines laid; this is also true getting the line from the street to the house.

On average Carson Wentz Eagles Jersey , the payback is anywhere from five to 10 years, however, for those who are making the conversion on insurance proceeds, they are not concerned with payback.

The companies who deliver home heating oil are not taking this frontal attack sitting down. Although there is little that the distributor can do about the prices Women's Brian Dawkins Jersey , they do warn that making the switch to natural gas may prove to be an expensive gamble. Just as gas prices dropped due to new finds, the oil companies warn that new oil finds can have a similar effect on the home heating oil prices, driving them down.
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