Monday, 24 September 2007 01:42

With Crude Oil Prices Hitting Record Highs, What Will Happen to the Prices?

With crude oil prices hitting three record highs last week and temperatures taking a dive- are we likely to see skyrocketing propane prices? Most Mother Lode area propane dealers say our bottled gas bills are unlikely to reflect these recent increases. According to those in the heating industry, between 70 and 90 percent of homes in the motherlode counties use propane to heat their homes. The Mother Lode's heavy reliance on propane puts it in a California minority.  Of the state's 11.5 million households in 1997, less than 2 percent still use propane to heat their homes. Instead, statewide, about two-thirds are now using natural gas with a quarter using electricity.

Although the study with these figures is nearly 10 years old, the proportions are unlikely to have changed significantly; State Energy Commission spokesman Percy Della told the Sonora based Union Democrat. For those attempting to choose the cheapest method of keeping the home warm and cozy, be prepared for a complex undertaking. Factors include the current price of each fuel, the quality of the fuel, the efficiency of your heating equipment, the cost of installing new equipment if necessary, and the cost of labor to set it up and keep it running.  

Using an equation provided by the Calaveras County University of California Cooperative Extension office, the most effective choice is one few use exclusively in the county: wood. A $25 U.S. Forest Service permit allows carriers to harvest two-and-a-half cords of wood, which comes out to less than five cents per 100,000 BTUs — a unit used to compare the cost of energy typically in dissimilar units, like gallons vs. cubic feet.  A lot of that savings is spent in harvesting, splitting and stacking, but a precut cord of wood at $225 still figures to only $1.07 per 100,000 BTU. Both equations assume an average fuel value for the wood, while pine yields far less and oak yields a little more. By contrast, electric heating costs $3.52 per 100,000 BTUs at today's median price and propane costs about $2.52 per 100,000 BTU at today's average price.The Union Democrat contributed this story