The Benefits of an Oil to Gas Conversion for Your Heating System
There are both financial and environmental benefits in switching your heating system from oil to natural gas. Although oil is currently dropping in price, natural gas will still prove to be the more economical option.
Financial Benefits from Switching from Oil to Natural Gas for Heat
Oil prices are dependent on the world market, and can fluctuate according to global demand and world oil production. Natural disasters, civil unrest, or war are among the variables that can affect oil production and cause oil prices to surge on the world market.
Recent developments in natural gas exploration and production in the United States have led to a huge surplus of natural gas, which has caused domestic prices for natural gas to fall sharply. Hydraulic fracturing, or "fracking", has enabled extraction of huge reserves of natural gas that were trapped beneath shale deposits. This technique uses high pressure water jets to blast away the shale. As an added bonus, vast oil reserves were found beneath the previously inaccessible gas deposits. This domestic oil has also entered the market, causing oil prices to drop precipitously.
Unlike the infrastructure for transporting oil, which can be transported and sold on the global market, the facilities are not yet available to store and transport liquefied natural gas for the global market. This means that the natural gas produced in the US will remain in the domestic market. This gives the price a stability not found in the often volatile oil market.
The sudden flooding of the marketplace with oil produced in the US didn't produce the results expected from some of the larger oil producers in the Middle East. Production cuts usually follow oil surpluses, because this stabilizes oil prices. Production was instead kept at the current levels, which caused a rapid dive in oil prices. While the larger oil producers have huge cash reserves, their competitors, especially the newer producers in the US, are increasing shutting down because the low oil prices make production unprofitable. As domestic oil producers fail, oil prices will again rise.
Environmental Benefits of an Oil to Gas Conversion
Natural gas burns much cleaner than oil, with much less carbon dioxide released into the atmosphere. Leaving less of a carbon footprint is important because the use of fossil fuels is thought to contribute to climate change. Burning oil also releases particulates into the air, which cause air pollution.
Financially and environmentally, an oil to gas conversion is worth the investment for your future. For more information, contact Conservision Energy.