Oilheat and natural gas are both fossil fuels that are collected from underground deposits located around the world. The United States is the world's largest consumer of both fuels, and we rely on both domestic supply and imports. Supplies of fossil fuels are plentiful, and new fuels that add to the mix are coming to market.

Looming Supply Threats

Natural Gas: The United State has only 4% of the world's natural gas reserves, while 73% is located in Russia, Eurasia and the Middle East, according to a May 2009 report by the U.S. Department of Energy. Russian Prime Minister Vladimir Putin is organizing an OPEC-style cartel with Iranian President Mahmoud Ahmadinejad, Venezuelan President Hugo Chavez and other world leaders to drive up natural gas prices. In December 2008, Putin declared, "The era of cheap energy resources, of cheap gas, is, of course, coming to an end." Russia has already demonstrated its willingness to reduce natural gas supplies during international disputes, having cut all supplies to Ukraine in 2006, then plunged Europe into an energy crisis in 2009 by reducing supplies by 20%.



Oilheat: The Wall Street Journal reported in July 2009 that stockpiles of fuels such as diesel and heating oil are at a 24-year high in the U.S. because of reduced demand from industries and consumers hammered by the global economic downturn. The specter of continued economic difficulties has officials in the Organization of Petroleum Exporting Countries (OPEC) worried that supplies will grow even larger, dragging down oil prices despite the cartel's efforts, according to the Journal.

Conclusion: Natural gas faces looming supply threats, while supplies of Oilheat are exceptionally strong.

Domestic and International Fuel Supplies

Natural Gas: Gas utilities rely on both domestic and international suppliers. Where domestic supplies cannot meet the demand, the utilities import liquefied natural gas (LNG), which is cooled to -260° F and shipped by tanker at that temperature. The energy-intensive process increases the cost and expands the fuel's carbon footprint.

Oilheat: Oilheat is refined from crude oil that is collected in the U.S. and abroad. For all the talk of Middle East oil, only one of the top six suppliers of crude oil to the U.S. is located in the Middle East, and the largest exporter to the U.S. is Canada. The U.S. maintains large supplies of both crude oil and heating oil in the Strategic Petroleum Reserve and the Northeast Heating Oil Reserve. Oilheat dealers are also blending Oilheat with biofuel, which extends the supply and reduces demand for imported oil.

Conclusion: Oilheat and natural gas supplies come from the United States, Canada and other countries. The gas industry extends supply with a less environmentally friendly fuel. The Oilheat industry extends supply with a domestically produced fuel that is more environmentally friendly.

Increasing Demand

Natural Gas: Electricity generation is one area where demand could grow in the years ahead, as more than 90 percent of the power plants to be built in the next 20 years will likely be fueled by natural gas, according to the U.S. Department of Energy. Some U.S. leaders are pressing for expanded use of natural gas in transportation. Compressed natural gas (CNG) is already used in buses, taxicabs, medium-duty trucks and other vehicles. Natural gas will also help create the hydrogen that will power tomorrow's fuel-cell vehicles.

Oilheat: New, high-efficiency equipment and local dealers' energy-saving conservation advice has reduced the average annual usage of Oilheat per home. In addition, Bioheat® blends renewable, domestically produced fuels with Oilheat, easing demands on our supply even further.

Conclusion: Demand for non-renewable natural gas is predicted to increase faster than domestic supplies. In order to meet these growing needs, the natural gas industry will need to rely on more costly drilling methods in ecologically fragile locations and increased imports of liquefied natural gas from Russia and Iran. Many Oilheat dealers across the country are now delivering Bioheat, which reduces our dependence on foreign sources and supports American business.

Delivery Reliability

Natural Gas: Utility gas is delivered to the customer by pipeline. Continuous delivery must be maintained at all times or the customer loses access to their fuel, because there is no independent storage on their property. Any disruption in the delivery system will leave the customer without heat.

Oilheat: Oilheat customers have independent storage in an oil tank on their property, so they always have access to their heating fuel as long as the tank has oil. Oilheat is delivered to the consumer by tanker truck and pumped into the customer's tank. Delivery is reliable because trucks need only an open road to deliver in any weather. Also, delivery can be made any time the tank is running low.

Conclusion: It's always nice knowing you have a full tank of gas in your car, and it's the same with Oilheat. Natural gas heat depends on continuous operation of the supply grid, while Oilheat makes a home more self-sufficient.

Renewability

Natural Gas: Natural gas is "essentially irreplaceable," according to the Natural Gas Supply Association. There is no non-methane fuel that can be blended with natural gas to extend the supply.

Oilheat: Oilheat draws on a renewable supply when it is blended with biofuel to make Bioheat®. Bioheat is certified for use in all Oilheat boilers and furnaces, so customers don't need to update their equipment to take advantage of this opportunity. Hundreds of Oilheat dealers are already delivering Bioheat, and thousands more are expected to follow suit in the years ahead.

Conclusion: The Oilheat supply is being extended with readily available, renewable biofuels, while the American Gas Association reports that the fossil fuel natural gas is "essentially irreplaceable." An Oilheat system is a safe investment, because it is not limited to fossil fuels.