OHI-ENY - Oilheat Facts

Oilheat Prices - Still a Great Value - Reliable Supply

THE TRUTH ABOUT OIL PRICES

Increased global demand and the political climate are the main causes of increased crude oil prices. It's not an answer anyone gets satisfaction from, but it's the truth. And the problem only grew worse when Hurricanes Katrina and Rita ravaged our Gulf Coast drilling platforms and refinery capabilities.

We want to emphasize the tremendous effort we make to ensure your protection, savings and peace of mind in the face of higher energy prices. Yet, there may be a few skeptics among you. That's why we want to reveal the TRUTH behind our promise to provide the best service around at the best value possible.

TRUTH: Heating oil companies are not gouging customers.
Increased oil prices have hurt everyone, including your Oilheat dealer. When crude oil prices dramatically increase like they have, it is not local oil dealers who make more money. In the view of noted energy analysts, heating oil dealers are simply passing along the steady increases in heating oil because they must pay those prices to buy the heating oil you need. It's important to note that the Oilheat industry has worked, and will continue to work, with state regulators to ensure that consumers are not harmed by price gouging.

TRUTH: We do not deliver your oil when prices are highest or when it's most convenient for us.
Prices have no bearing whatsoever on the date you receive your automatic delivery. We deliver solely based upon a mathematical formula that involves the daily temperatures and the size of your tank.

TRUTH: You can't get a better deal elsewhere.
From price protection to service plans to the latest energy-efficient heating and hot water-making equipment, you can take advantage of the many money-saving opportunities we offer, thanks to our full service capabilities.

TRUTH: We don't like what's happened to energy prices either.
Having to tell valued and loyal customers that their prices are going up doesn't make us happy at all. We can only say that we're sorry for the inconvenience, and we're doing everything in our power to make things easier for you. And that, more than anything, is the truth.

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Oilheat, Still A Great Value

While energy prices are up across the board, the price of residential heating oil has actually increased less than many other products over the past 22 years. Compared to the Consumer Price Index, which represents the average prices that consumers pay on a wide range of products, Oilheat has increased by less than half as much! This means Oilheat has had a more consistent price than most of the other products you purchase on a regular basis, year after year.

Compare these price increases since the early 1980's

Chart Increase

Source of heating percentage: NYMEX
CPI based on U.S. city average, all urban consumers, 1980-2006

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U.S.A. Heating Oil Supply Is Reliable

With all the news stories and public concern about our dependence on foreign oil, it's time to set the record straight. Here are some fascinating facts about where our oil comes from and other "homegrown" aspects of the fuel we rely on to keep over 9.5 million American households comfortable in all kinds of weather.

Today, the Organization of Petroleum Exporting Countries (OPEC) is responsible for much of the world's oil supplies. However, one must keep in mind that our oil imports do not depend solely on OPEC. The two leading supplier countries of crude oil to the United States are our neighbors to the north and south, Canada and Mexico.

Where does our oil come from?

Oil Import Chart

Source: Energy Information Administration, 2005

Domestic reserves

You may be surprised to learn that the United States is the oldest major global oil producer ... is currently the Number 3 global oil producer ... and has produced more oil, cumulatively, than any other country (180 billion barrels from 1918 to 1999) (Source: The Department of Energy).

According to the Energy Information Agency, the United States had 21.4 billion barrels of proven oil reserves as of December 31, 2004, the eleventh highest in the world. Over 80% of our nation's crude oil reserves are concentrated in four states - Texas has 22 percent, Louisiana and Alaska each have 20 percent and California has 18 percent (including onshore plus Federal and state offshore reserves).

Refining capacity

Did you know that a majority of our oil, 85%, is refined in the United States at 149 refineries in 31 states. Although no new oil refineries have been built in the U.S. in 30 years, our existing refineries have increased capacity. Between 1990 and 1998, capacity per operating refinery increased by 28 percent, on average.

Discovery and recovery

The petroleum industry is achieving greater efficiencies in retrieving and processing crude oil. State-of-the-art seismic testing can now locate deposits with three-dimensional underground maps, reducing money wasted on "dry holes".

Carbon dioxide can be injected into an oil reservoir to push additional oil to a production wellbore. Enhanced recovery with carbon dioxide has been judged to be a "game-changer" in oil production, one capable of doubling recovery efficiency.

The Department of Energy has determined that state-of-the-art enhanced oil recovery with carbon dioxide could add 89 billion barrels to the recoverable oil resources of the United States. If this oil could be added to the category of proven reserves, the U.S. would have the fifth largest oil reserves in the world! (Source: DOE, Fossil Energy Techline, March 3, 2006)

Oilheat customers have a tremendous petroleum reserve to rely on.

The Strategic Petroleum Reserve, the world's largest emergency oil stockpile, has a capacity of 727 million barrels of crude oil. If it were necessary (assuming a rate of 1 million barrels a day), the Reserve could release oil into the market continuously for more than a year and a half. The Energy Policy Act of 2005 directs the Secretary of Energy to expand the Strategic Petroleum Reserve to one billion barrels!

The Northeast Home Heating Oil Reserve is a 2-million barrel supply of emergency fuel oil for homes and businesses in the northeast United States. Established in 2000, the Heating Oil Reserve acts as an "emergency buffer" that can supplement commercial fuel supplies should the heavily oil-dependent region be hit by a severe heating oil supply disruption.

Source: Dept. of Energy

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	www.espa.net		Oilheat Prices - Still a Great Value - Reliable Supply THE TRUTH ABOUT OIL PRICES Increased global demand and the political climate are the main causes of increased crude oil prices. It's not an answer anyone gets satisfaction from, but it's the truth. And the problem only grew worse when Hurricanes Katrina and Rita ravaged our Gulf Coast drilling platforms and refinery capabilities. We want to emphasize the tremendous effort we make to ensure your protection, savings and peace of mind in the face of higher energy prices. Yet, there may be a few skeptics among you. That's why we want to reveal the TRUTH behind our promise to provide the best service around at the best value possible. TRUTH: Heating oil companies are not gouging customers. Increased oil prices have hurt everyone, including your Oilheat dealer. When crude oil prices dramatically increase like they have, it is not local oil dealers who make more money. In the view of noted energy analysts, heating oil dealers are simply passing along the steady increases in heating oil because they must pay those prices to buy the heating oil you need. It's important to note that the Oilheat industry has worked, and will continue to work, with state regulators to ensure that consumers are not harmed by price gouging. TRUTH: We do not deliver your oil when prices are highest or when it's most convenient for us. Prices have no bearing whatsoever on the date you receive your automatic delivery. We deliver solely based upon a mathematical formula that involves the daily temperatures and the size of your tank. TRUTH: You can't get a better deal elsewhere. From price protection to service plans to the latest energy-efficient heating and hot water-making equipment, you can take advantage of the many money-saving opportunities we offer, thanks to our full service capabilities. TRUTH: We don't like what's happened to energy prices either. Having to tell valued and loyal customers that their prices are going up doesn't make us happy at all. We can only say that we're sorry for the inconvenience, and we're doing everything in our power to make things easier for you. And that, more than anything, is the truth. [ Back to Top ] Oilheat, Still A Great Value While energy prices are up across the board, the price of residential heating oil has actually increased less than many other products over the past 22 years. Compared to the Consumer Price Index, which represents the average prices that consumers pay on a wide range of products, Oilheat has increased by less than half as much! This means Oilheat has had a more consistent price than most of the other products you purchase on a regular basis, year after year. Compare these price increases since the early 1980's Source of heating percentage: NYMEX CPI based on U.S. city average, all urban consumers, 1980-2006 [ Back to Top ] U.S.A. Heating Oil Supply Is Reliable With all the news stories and public concern about our dependence on foreign oil, it's time to set the record straight. Here are some fascinating facts about where our oil comes from and other "homegrown" aspects of the fuel we rely on to keep over 9.5 million American households comfortable in all kinds of weather. Today, the Organization of Petroleum Exporting Countries (OPEC) is responsible for much of the world's oil supplies. However, one must keep in mind that our oil imports do not depend solely on OPEC. The two leading supplier countries of crude oil to the United States are our neighbors to the north and south, Canada and Mexico. Where does our oil come from? Source: Energy Information Administration, 2005 Domestic reserves You may be surprised to learn that the United States is the oldest major global oil producer ... is currently the Number 3 global oil producer ... and has produced more oil, cumulatively, than any other country (180 billion barrels from 1918 to 1999) (Source: The Department of Energy). According to the Energy Information Agency, the United States had 21.4 billion barrels of proven oil reserves as of December 31, 2004, the eleventh highest in the world. Over 80% of our nation's crude oil reserves are concentrated in four states - Texas has 22 percent, Louisiana and Alaska each have 20 percent and California has 18 percent (including onshore plus Federal and state offshore reserves). Refining capacity Did you know that a majority of our oil, 85%, is refined in the United States at 149 refineries in 31 states. Although no new oil refineries have been built in the U.S. in 30 years, our existing refineries have increased capacity. Between 1990 and 1998, capacity per operating refinery increased by 28 percent, on average. Discovery and recovery The petroleum industry is achieving greater efficiencies in retrieving and processing crude oil. State-of-the-art seismic testing can now locate deposits with three-dimensional underground maps, reducing money wasted on "dry holes". Carbon dioxide can be injected into an oil reservoir to push additional oil to a production wellbore. Enhanced recovery with carbon dioxide has been judged to be a "game-changer" in oil production, one capable of doubling recovery efficiency. The Department of Energy has determined that state-of-the-art enhanced oil recovery with carbon dioxide could add 89 billion barrels to the recoverable oil resources of the United States. If this oil could be added to the category of proven reserves, the U.S. would have the fifth largest oil reserves in the world! (Source: DOE, Fossil Energy Techline, March 3, 2006) Oilheat customers have a tremendous petroleum reserve to rely on. The Strategic Petroleum Reserve, the world's largest emergency oil stockpile, has a capacity of 727 million barrels of crude oil. If it were necessary (assuming a rate of 1 million barrels a day), the Reserve could release oil into the market continuously for more than a year and a half. The Energy Policy Act of 2005 directs the Secretary of Energy to expand the Strategic Petroleum Reserve to one billion barrels! The Northeast Home Heating Oil Reserve is a 2-million barrel supply of emergency fuel oil for homes and businesses in the northeast United States. Established in 2000, the Heating Oil Reserve acts as an "emergency buffer" that can supplement commercial fuel supplies should the heavily oil-dependent region be hit by a severe heating oil supply disruption. Source: Dept. of Energy [ Back to Top ]
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