I live outside of Orange County, Middletown, NY and heat with oil.
The house is 20 years old. The furnace is 4 years old. I decided in
April it might be a good idea to replace the 275 gallon buried oil tank
before it became a problem. I am seeing estimates for the total job of
removing old tank and replacing with an above ground outdoor 330 gal
tank (space issue) of around $4k. That includes a plastic "dog house"
around the new tank.
Budget plan oil delivery cap price for next season is looking to be
around $4.60 per gallon.
Natural gas is not available in my area.
Should I go ahead with tank replacement or have my HVAC guy rip out the
4 year old furnace and change over to another fuel like propane ?
Propane is running about $3.90 per gallon.
If you stop using the tank, you will have to remove it anyway. Various
fuels see-saw in price advantage pretty regularly. Gas could spike in
price tomorrow, or in 2 months, or in 2 years. You can't really escape
heating costs, except temporarily, by switching fuels in most cases.
Can't really compare the price per gallon of propane to oil because each
contains a different amount of heat per unit volume. I believe propane
contains more energy meaning you need to burn less of it to make the same
heating effect (definately true compared to NG but I don't have the specs
for oil). You need to determine the BTU per unit volume (BTU/Gal) and
compare that for each fuel. At least in the short term, it looks like oil
will rise faster than other fuels but in the long term, your guess is as
good as mine.
Propane might be a bit more flexible seeing that you could in a pinch, go
out with a 10 gal tank and fill it at a gas station if you couldn't get a
delivery during a bad weather spell. OTOH, you can buy and store a longer
lasting supply of oil at one time and have more predictable pricing. NG is
usually preferred for no reason better than you don't have to have anything
delivered or stored on site.
I haven't looked but is there a such thing as a multi fuel furnace where you
can switch at will depending on price. That sure would be nice.
$3.90 propane is a lot more expensive that $4.60 heating oil.
If a gallon of propane is 91,300 BTU and a gallon of heating oil
is 138,800 BTU, then $3.90 propane is equivolent to $5.93 heating
Can't you get a heating oil tank and put it in your basement?
I think that would be a lot cheaper.
Jonathan Grobe Books
Browse our inventory of thousands of used books at:
This shows propane to be much more expensive at that price difference
Put a fiberglass tank in. Check out other sources as that sounds high to
My name is Michael Hoensch of MH Tank Co. Inc www.mhtank.com. I am an
oil tank contractor here in Orange County. I'd love the oppurtunity in
providing you a free estimate.
- Mike Hoensch (845) 544-2330
LP gas is very expensive/btu. With gas an oil prices rising, you may be
cheaper off going with electric heat pump with straight electric heat
backup. Although I didn't see if you mentioned if you have oil hot air
or oil hot water? If it's water baseboards then a heat pump is an
expensive installation since it will need ductwork.
HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.