Conversion to Gas Math

Steve Garson_2

Glen:

Thanks. I already use gas for the stove and clothes dryer. I am astounded at the cost difference today. But I will always keep my oil tank and burner should things change. But my gut tells me that the days of cheap oil are gone.

Steve

Steve Garson_2

Please comment on my logic for converting to gas

Can I get some input as to whether my math logic is correct?

This past season:
Fuel Oil used: 900 gallons
900 gallons x 140,000 BTU/gal = 126,000,000 BTU

Natural Gas therms: 126,000,000 BTU/100,000 BTU per therm= 1260 therms

Gas is around 3% less efficient versus oil:
1260 x 1.03 = 1298 therms
Natural Gas cost (today) with all delivery fees: $1.80
Total cost: $2336

Oil cost: 900 x $3.80 = $3,420

Savings: $1,116 for the season.

If the conversion costs $1000, I recover my cost in year 1. I intend to keep my oil tank and burner in case the commodity costs change.

Am I missing something? I have a stainless chimney liner and gas close to the boiler, so this seems like a no brainer. Is it?

Steamhead (in transit)

Taxes on gas?

Did you include taxes as well as delivery fees? The gas monopoly really doesn't want you to consider all these things. The easiest way to calc this is simply to divide what you paid for gas by the number of therms you used that month.

Generally, taxes on fuel oil are included in the price, same as for gasoline and diesel.

$1.80 per therm sounds awfully low. Here in Baltimore it's $1.99/therm with all taxes and fees. I think you've missed something, not sure what. And if that figure is correct, you can bet it won't be for long.

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Glen

Your basic assumption -

is correct. In this area - the commodity pricing is well regulated with at least one utility commission to approve/deny price increases; what is poorly regulated is the cost of transmission/delivery. Look at your gas invoices carefully. On the plus side - annual maintenance costs could be lower and you would enjoy a fuel with greater flexibility; eg, cooking range, outdoor BBQ, etc. Industry analysts suggest we have a greater supply of nat gas vs oil stocks -

Glen

long term oil storage -

add a fuel stabilizer to the tank and run the burner for a while before shutting down your oil system - or fill with #1. Long term storage of fuel oil can be difficult to manage.

Frenchie

Steve

Your logic is absolutely sound. I just did exactly what you are contemplating last month. I too have a stainless chimney liner, and had gas in the house already. I also kept my oil tank and burner for possible future use. Today, 5/21/08, in S.E. Wisconsin #2 oil is 4.35/ gallon. Nat gas is $1.14/therm. Yes that is correct- $1.14/ therm TOTAL COST including delivery and taxes. Needless to say my boiler has been happily burning gas for a month now. Also, it is quite a bit quieter when firing gas. I would think you would be doing yourself a favor to put a gas gun in. When will this oil madness stop? Maybe never?

tgm

how are you guys getting away with leaving your tanks there? NFPA 31 says an unused tank must be removed from the property.

Frenchie

Tank

Good question. In this rural area people are worried about removing underground tanks, but nobody seems to care about the basement tanks. In my case I just ran on oil until the basement tank was dry, and had the gas burner installed. The oil burner got stuck in a cupboard. The oil line was simply disconnected and capped and left next to the boiler. No mention was made at all about leaving the oil supply system intact. Of course, the gas utility had no involvement in this process at all. If they were......Maybe things would be different????