Degree Day question

Mark R.

Can anyone briefly explain how oil companies use degree days to estimate when to deliver oil. I realize that it is an estimate since individual customer useage is an unknown variable. I would appreciate any comments. Thanks, Mark R.

Alan R. Mercurio

A degree day is simply a unit of measuring how cold (or hot) it has been over a 24 hour period. Whenever the average, (or mean) temperature is below 65̊, you have a degree day. For example, if in a 24 hour period the high outside temperature was 70̊ and the low was 50̊, then the average temperature for that day was 60̊ - halfway between 70̊ and 50̊. This is 5 degrees less than the base temperature of 65̊. Therefore we can say that there was 5 degree days for the period.

Along with the degree days, there is what is called a K-Factor. A K-Factor is simply a number for showing how fast a customer uses fuel. Once the K-Factor is established for a given customer, it is multiplied by the usable gallons of fuel in the customer's tank to find how many degree days can elapse between deliveries.

By keeping track of how many degree days have accumulated, you have a system for knowing just when to deliver fuel to any individual customer. . . maximizing your deliveries and your profits.

Your friend in the industry,

Alan R. Mercurio

Oil Tech Talk

Alan R. Mercurio

A degree day is simply a unit of measuring how cold (or hot) it has been over a 24 hour period. Whenever the average, (or mean) temperature is below 65°, you have a degree day. For example, if in a 24 hour period the high outside temperature was 70° and the low was 50°, then the average temperature for that day was 60° - halfway between 70° and 50°. This is 5° degrees less than the base temperature of 65°. Therefore we can say that there was 5° degree days for the period.

Along with the degree days, there is what is called a K-Factor. A K-Factor is simply a number for showing how fast a customer uses fuel. Once the K-Factor is established for a given customer, it is multiplied by the usable gallons of fuel in the customer's tank to find how many degree days can elapse between deliveries.

By keeping track of how many degree days have accumulated, you have a system for knowing just when to deliver fuel to any individual customer. . . maximizing your deliveries and your profits.

Your friend in the industry,

Alan R. Mercurio

Oil Tech Talk

Bob Tonner

Alan....

You're such a smart guy. You should write a book!

Bob

Alan R. Mercurio

Bob

I just might do that ~

Your friend in the industry,

Alan R. Mercurio

Oil Tech Talk

Aidan (UK)

degree days

Look at;

http://vesma.com/ddd/ddexpl-1.htm

Lots of other degree-day related stuff at that website, if you click on all the links. It's UK data, so watch out for celsius/fahrenheit or similar discrepancies.

Mark R.

Thanks

Thanks guys, I really appreciate your help. If I continue to hang around this site, you all are going to teach me what is going on when the old Weil-McLain fires up!!!
Thanks Again, Mark R.