Table Comparing Current Home Heating Costs for Oil, Gas, Electricity, Firewood in the U.S.
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A comparison of heating costs by fuel type - latest data
Cost per 1000 BTUs for Home Heating Oil, Natural Gas, Electricity, Firewood, Propane, Pellet Stove Fuel
Comparing heating system efficiencies; other heating cost factors.
How to save on home & office heating costs
History of changes in estimates of U.S. Oil & Gas Reserves
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This article provides a table which compares home heating cost for different energy sources: home heating oil, electricity, natural gas, and firewood in the United States. We provide tables listing current costs of various building heating fuels, historical heating fuel costs, including heating costs for coal and propane heaters, efficiency of different types of heating equipment, other costs associated with each type of heating system, and links to articles on how to reduce heating costs.
We also include formulas to adjust our current heating cost calculations to local prices in your area, and we provide links to energy cost sources, predictions of changes in energy costs, and to articles explaining how to save on home heating costs through heating system adjustments and service, insulation, stopping drafts, etc.
Sketches in this article are courtesy Carson Dunlop.
A Comparison of Current Energy Costs: Heating Oil, Natural Gas, Firewood, Electricity
Heating Cost Predictions by the US EIA
According to the U.S. Energy Information Administration, "Average household expenditures for all space-heating fuels are projected to be $1,137 this winter (October 1 to March 31), a 15-percent increase over the estimated $986 spent last winter. The largest increases will be in households using heating oil and natural gas.
The projected increases primarily reflect higher prices, although colder weather than last winter will also contribute to higher fuel use in many areas. During 2008, the cost of natural gas and coal for electric utilities is projected to be 36 percent higher and 12 percent higher, respectively, than last year.
As electricity providers continue to pass along these increased costs, U.S. residential electricity prices are expected to grow by 6.2 percent this year and 9.4 percent in 2009. Price increases are expected to be especially pronounced in the Middle and South Atlantic regions."
Table Comparing Latest Home Heating Energy Costs in the U.S. for Oil, Gas, Wood, Electricity
The heat content of a gallon of home heating oil, a cubic foot of natural gas, and a cubic foot of firewood are compared in Carson Dunlop's sketch.
To make sense of these numbers we also need to include an estimate of the relative costs of these fuels [see table below] - with the warning that energy costs vary widely by geographic area, using firewood is a bad idea in some areas where wood is not plentiful nor renewable, and energy content and efficiency of heating appliances can vary widely too.
Current energy costs as of 5 October 2008 using Metropolitan New York Area Prices are provided here. Our calculations and formulas are shown so that readers can plug in local fuel costs to calculate local cost per 1000 BTUs of energy for their building.
It's inaccurate to only compare heating fuel costs if you want to know how much it may cost to heat your building among alternative fuels.
Look at heating efficiency not just fuel cost
The efficiency of delivery of heat into the living area of a building varies widely depending on the heating equipment and heat distribution system design. If 50 % of the heat produced by a fuel we are using goes up the chimney rather than into our building, our heating efficiency is just 50%, and regardless of our fuel cost we are probably spending too much on heat. A heating furnace that is 85% efficient is delivering 85 cents of heat into the building for every dollar spent on heating fuel.
Some "heating" methods are so inefficient that they are not recommended. For example, attempting to heat an older home with an open fireplace is likely to draw so much fireplace combustion air into the building that the home operates at a net heat loss when operating the fireplace even though right in front of the fireplace we feel warm.
Look at hidden heating costs not just heating efficiency and heating fuel costs
If changing from one heating fuel to another means you also have to install new heating equipment, fuel storage tanks, piping, heat distribution pipes or ducts, or perhaps build a chimney for a new woodstove, then be sure to consider the cost of those items when comparing heating fuel costs. In the 1970's we heated our home with "free" firewood from a state forest, but we had to buy a truck, chain saw, woodstove, and chimney as well.
Table 1 - 2008 Current Heating Costs by Fuel Type in the U.S.
Table 1 - January 2009 Comparison of Current Energy Costs per BTU for
Heating Oil, Natural Gas, Firewood, Pellet Stove Fuel, Propane, Coal
Heating Fuel
Heat Content in BTUs
Unit Cost
Cost / 1000 BTUs
Notes on Formulas & Fuels
Home Heating Oil
140,000 BTUs/Gal
HC = 140
$2.00/gal
UC = 2.00
1.42 cents
Price varies by time, season, economy, locale
Natural Gas
1029 BTUs/Cu. Ft.
HC = 1.029
$7.00/1000 Cu. ft.
UC = 0.7
0.68 cents
Price varies by time, season, economy, locale.
Firewood
150,000 BTUs/Cu. ft.
HC = 150
$75/face cord
UC = 6.46/Cu. ft.
4.30 cents
BTUs vary by wood type, condition, design of wood heater. A face cord is 4' x 8' x 16" of wood tightly stacked = 42.6 cu. ft.
About $50./face cord in Dec 2008 in MN
A full cord 4' x 4' x 8' = 128 Cu. ft.
about $150. in Dec 2008 in MN, more in NYC
$225. per ton of pellet fuel, 70% efficient. 50 40-pound bags per ton, or 60 40-pound bags per skid. One bag of pellet fuel burns for 24 hours in a typical pellet stove. $225 / 2000 (pounds per ton) = 11.25 cents / pound. .1125 / 8.2 = .0137
Coal
In process
Assuming xx-sized coal for use in coal stoves used as interior heat source, not coal fired furnaces or boilers which use pea coal.
Formulas Used [1]
HC
UC
(UC / HC)
*
100
Unit Cost (UC)__ x 100 = Heat Cost per 1000 BTUs
Heat Content (HC)
See notes above for specific fuels.
Data Sources: Gas and oil and wood prices from various sources listed below including the U.S. Energy Information Administration - October 2008 data.
Efficiency warning: this table does not (yet) reflect the differences in efficiency of various types of heating equipment, nor do we reflect the enormous differences among buildings insulation and draft proofing condition, nor differences in the set temperatures to which people adjust their thermostats.
[1] How do we calculate fuel cost per thousand BTUs: In the boxes of our table above, we note in smaller font the HC and UC values computed to assure that the scale is the same in both heat content and unit cost before calculating the cost per thousand BTUs in cents. A BTU (British Thermal Unit) is a measure of heat energy defined as the quantity of heat that would be required to increase the temperature of one pound of water by one degree Fahrenheit. Since we convert all of our fuel costs into cost per 1000 BTUs we can then make an "apples to apples" comparison among fuels. See HEAT LOSS: How to Calculate Heat Loss in a Building for more details.
Unit Cost (UC)__ x 100 = Heat Cost per 1000 BTUs
Heat Content (HC)
(We multiply (UC / HC) x 100 to express our final number in "cents" per 1000 BTUs just for ease of reading.)
Example: for No. 2 home heating oil, to obtain the heating oil cost per thousand BTUs, we divide 3.71 (cost per gallon) by 140 (thousands of BTUs in a gallon). (3.71 / 140) x 100 = 2.65 cents per 1000 BTUs of oil heat
Example: for Electric heat, to obtain the electricity cost per thousand BTUs, we divide .11 (cost per KWH) by 3.413 (thousands of BTUs in one KWH). Incidentally, FYI the number of KWH needed to provide 1000 BTUs of electric heat = 1 / 3.413 or 0.29 KWH. (0.11 / 3.413) x 100 = 3.22 cents per 1000 BTUs of electric heat
Contact Us by email to suggest content additions or corrections to this table comparing building heating fuel costs.
Table 2 - 1982 Heating Fuel Cost per BTU
Heating costs became a great concern to Americans during the 1973 oil embargo when home heating oil costs soared from 1972 prices of $ 0.20 per gallon to a new high of $1.73 a gallon in 1973. Homeowners rushed to find alternative ways to keep warm. Some people tried heating with wood (the author); portable kerosene heaters became popular (and very dangerous when not properly used, leading to fires and deaths).
Coal stoves, and solar energy saw renewed interest. About a decade later in 1982 debate continued among energy suppliers about whose fuel was most cost-efficient. Oil heating companies argued that electricity was the most costly way to heat a home; electric companies rebutted that heat pumps were efficient. Coal and woodstoves improved in energy efficiency and ease of use. In the Hudson Valley area of New York State coal usage increased at one coal dealer from 40 customers and 1000 tons in 1980 to 600 customers and 3000 tons of coal in 1982.
Tables 2 and 3 below provide comparable heating cost data for 1982. In 1982 we suggested and currently in 2008 we still recommend that people wanting to save on home heating costs start by making their home properly insulated and sealed against drafts.
Table 2 - Cost of Fuels per Million BTUs of Heat (U.S.)
Table 3 - Comparison of the Cost of Heating Fuels with Efficiency of the Heating Devices that Use Them
The basic cost of heating fuel per BTU is not enough data to determine the most cost efficient way to heat a home because even with a lower-cost fuel in hand, if the efficiency of the heating equipment is low you may be sending a high portion, up to 50%, of your heating fuel dollars up the chimney instead of into the building.
For example, because an indoor kerosene heater requires extra combustion air to avoid potentially fatal carbon monoxide hazards, some folks tried increasing the safety of their heater by leaving a window open. But drawing more cold air into the building can result in a net increase in heating cost. (Portable kerosene heaters may be both unsafe and illegal for indoor heating use - check with your local fire officials and building officials.)
Table 3 - Heating Fuel Cost vs Heater Efficiency Data
Heating Fuel
Fuel Unit Cost
Efficiency (1)
Heat Content in BTUs for Fuels
1982 Cost / 1000 BTUs
Wood
$0.72 / Cu. ft.
$92.00 / cord
50%
150,000 BTUs/Cu. ft.
$0.005
Coal
$132.00 /ton
60%
16200000 - 26000000 BTUs/Ton
or
8100 to 13000 BTUs/Pound
$0.008
Kerosene
$1.33 / gallon
90% (2)
135,000 BTUs/Gal
$0.009
Natural Gas
$0.80 / 100 Cu. ft.
65%
1029 BTUs/Cu. ft.
$0.008
Home Heating Oil
$1.27 / gallon
70%
140,000 BTUs/Gal
$0.009
Propane
$0.93 / gallon
65%
91,000 BTUs/Gal
$0.010
Electricity
$0.105 cents/KWH
100%
3413 BTUs / KWH
$0.031
Pellet Stove
70%
Coal Stove
??
Electric Heat Pump
$0.105 cents/KWH
$0.015 (3)
1. These efficiency factors were calculated as the percentage of energy extracted from the fuel (compared with the amount of energy in the fuel itself).
If a heating appliance were 100% efficient, 100% of the heat energy in a given unit of heating fuel would be extracted by the heater and delivered to the heat distribution system (hot water baseboards, radiators, warm air supply ducts, electric heating baseboards). What the table and data also do not reflect are efficiency losses in the heating distribution system itself, such as leaky air ducts or improperly routed hot water heating pipes. -- DF.
2. This data is for un-vented kerosene heaters (a safety concern).
3. Central Hudson Gas and Electric estimate, 11/28/1982
Table 4 - Other Fuel Cost Factors that should be Weighed When Comparing Home Heating Costs
In addition to comparing the current cost per BTU of heating fuels in your area (Table 1), and comparing the relative efficiencies with which your heater converts the BTUs to heat delivered into the building (Table 3), we also need to consider other costs associated with each fuel including those listed below:
Safety inspection & safe chimneys important, Building & chimney fire risk, Insect attack on building risk from stored wood (6)
Coal
None (1)
Yes
(3)
Safety inspection & safe chimneys important (6)
Kerosene
Low
Minor in small quantities
Low
Fire Risk, Carbon monoxide risk, Asphyxiation risk
Natural Gas
None
None
Low: heater maintenance (4)
Safety inspection & safe chimneys important (6)
Home Heating Oil
None (1)
Minor
Moderate: heater maintenance (4)
Safety inspection & safe chimneys important,
Oil tank leaks can lead to costly cleanup (6)
Pellet Stove Pellets
Propane
None (1)
Minor
Low: heater maintenance
Safety inspection & safe chimneys important (6)
Coal
Electricity
None
None
None
Low (wiring or fuse/circuit breaker errors can lead to fires) (6)
Elec.Heat
Pump
None
None
Low
Low. Installation cost is about 2 x a conventional heating boiler
Notes to Table 4: General comment: be sure that your home has working smoke detectors and carbon monoxide detectors regardless of choice of heating fuels.
(1) Delivery cost is normally included in the price for this fuel.
(2) Delivery cost may be included in the price for firewood; variation in actual amount of BTUS delivered varies significantly depending on the species and dryness of the firewood and the tightness of stacking of the cord or face cord that is delivered.
(3) Maintenance must include daily stove cleaning and removal/disposal of ash and slag waste
(4) Annual inspection and maintenance recommended for safety; gas fired equipment generally requires less cleaning and adjustment than oil-fired equipment; improperly operating equipment or a damaged or blocked chimney is dangerous and can produce carbon monoxide hazards.
(5) Annual maintenance is necessary; failure to maintain oil fired equipment is likely to result in significantly lowered heater efficiency, increased heating cost, and possible loss of heat.
(6) We have not considered environmental cost associated with pollutants depending on the utility company's choice of fuels to be consumed at the power generating plant, such as high vs low sulphur content coal, acid rain, cost of nuclear site protection, disposal of nuclear waste, nor of plant replacement costs which will affect current or future utility company rates.
We have also not yet included a comparison these additional heating cost factors:
Building air leaks and insulation defects: we assume that this value is constant when comparing heating fuel costs.
Installation cost for the heating equipment, varies by type of equipment and geographic area
Heating equipment life expectancy or durability of different types of heating equipment; longer-lived equipment provides a longer payback period before it has to be replaced. Heater life is also affected by the level of maintenance it receives. For example, unattended leaks on a heating boiler can destroy it.
Heating distribution system efficiency differences, which vary by type of distribution (hot water, warm air, electric baseboard) and also by the condition of the system (leaks in a hot air duct, hot water heating pipes routed through cold spaces).
Heating fuel availability (and price) varies by type of fuel and geographic area;
Heating fuel source choice alternatives among suppliers which varies by fuel and geographic area, i.e. competition
Renewable vs non-renewable energy sources;
Solar and Wind energy alternatives and payback time for purchasing & installing such new equipment;
Heating system comfort: opinions vary among occupants who may prefer hot water heat, steam heat, warm air heat, radiant heat, etc. While this is a subjective judgment, differences in opinion will indirectly impact heating cost. For example if someone feels uncomfortable with a particular type of heating system and fuel they may set their thermostat higher in compensation, thus using more energy than they might with a different delivery system. Evenness of building temperature and thus comfort can vary by heating system type as well as by how the heating system is used (for example keeping a warm air furnace blower fan on continuously or running it intermittently).
List of Articles on How to Reduce Home Heating Costs
HEATING COST SAVINGS METHODS - Heating Cost Reduction Advice: How to Save on Home Heating Costs - Book Review & Actual Heating Savings and Energy Savings Tips for homeowners and service technicians, gas & oil heat money saving tips, thermostat tips, tuneup tips.
Heating Loss Diagnosis: How to diagnose loss of heat, when the oil burner, boiler, or furnace won't run, or when the system runs but heat is not delivered to the living area
Thermal Tracking & Stains & Signs of Heat Loss how to recognize thermal tracking or thermal bridging & how to diagnose Stains on Ceilings & Walls, Building Air Leaks & Insulation Defects, as well as other indoor air quality or building concern.
A Concise History of changes in estimates of U.S. Oil & Gas Reserves
Increasing Estimates of U.S. Oil & Natural Gas Reserves
Exxon CEO Rex Wilson (quoted in Newsweek Magazine, October 2010), provided a nicely succinct history of estimates of United States oil and natural gas reserves and usage from 1979 to the present. Here are some of the facts listed by Mr. Wilson, who said that he expects U.S. reliance on oil as well as an adequate supply of oil to continue for some time yet:
80% of worlds energy is currently drawn from oil, natural gas, or, coal
1879 the first commercial light bulb was sold, 75% of energy produced in the U.S. was from burning wood
1914 bureau of mines said oil reserves would be gone by 1924
1939 interior Dept said oil reserves would last 13 years to 1952
1951 interior said world had 13 years of proven reserves
1970 per oven reserves estimated at 62 billion
1977 Jimmy carter said proven oil reserves would be gone by 1990
2006 the U.S. had pumped 767 billion barrels and had proven reserves of 1.2 trillion barrels of oil
2010 world consumption has used 3 times the proven reserves of 1977
2010 rock shale in TX, LA, MT,ND, NY, PA and other eastern states may contain 2000 trillion cu ft of natural gas
Modern city of 1 million uses 6 million btus of energy per second, 1000 gallons of oil per minute,
Significantly, Mr. Wilson also pointed out that as of 2010,
1.5 billion people still have no electricity
2.5 billion people burn wood, dung or other biomass
That combustion is harmful to health and air quality [but of course so is burning coal, and in some conditions other fuels - Ed.]
By 2035 china and India will have pushed energy demand 35% above 2005
By 2035 economies of developed nations will be 50% larger than 2005 but energy demand will be slightly lower due to efficiencies driven by higher prices
Decreasing Estimates of Some U.S. Oil & Natural Gas Reserves
Here is a different view of oil and gas reserves, showing downwards, not upwards estimates, dramatically different from the picture one might take from Mr. Wilson's comments above:
According to a very brief news report appearing in The New York Times, 27 October 2010, in turn reporting from AP,
“the U.S. Geological Survey says that the National Petroleum Reserve-Alaska contains less than one-tenth of the amount of oil it previously estimated... the new estimate is 896 million barrels compared with the ... 2002 ... estimate of 10.6 billion barrels The agency ... cut ... estimates of natural gas ... to 53 trillion cu. ft. from 61 trillion cu. ft.” (AP)
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Thanks to Rob Stabile for correcting our firewood cost estimates and for suggesting the addition of the cost and BTUs in liquid propane gas and pellet fuel. 08/03/2010
Thanks to a reader who wishes to remain anonymous for correcting our numbers on the cubic feet in a face cord of firewood.
"Heat sources, how do they stack up?", Dennis Kipp, Poughkeepsie Journal, 28 November 1982. The Journal article obtained some of its information from Daniel Brown, an energy consultant from Amenia, N.Y. Also interviewed were coal and oil suppliers and Central Hudson Gas and Electric corporation, all from the Hudson Valley area of New York State.
"How Much Does Firewood Cost", Karen Youso, Minnesota Star Tribune on 12/7/2008 - Firewood prices: recent quote for price estimates for a full cord and a face cord of firewood in Minnesota were given by startribune.com/lifestyle/35628874.html?elr=KArks:DCiU1PciUoaEYY_4PcUU
Cost estimates for pellet stove fuel 1/265/08 at warmingtrendsstoves.com/fuel.html
"Big oil in a blue suit", George F Will, Newsweek Magazine, p 24, 18 Oct 2010
“Government Slashes Estimate of Alaskan Oil”, The New York Times, 27 October 2010
Books & Articles on Building & Environmental Inspection, Testing, Diagnosis, & Repair
Our recommended books about building & mechanical systems design, inspection, problem diagnosis, and repair, and about indoor environment and IAQ testing, diagnosis, and cleanup are at the InspectAPedia Bookstore. Also see our Book Reviews - InspectAPedia.
The Home Reference Book - the Encyclopedia of Homes, Carson Dunlop & Associates, Toronto, Ontario, 2010, $69.00 U.S., is available from Carson Dunlop. The Home Reference Book is a bound volume of more than 450 illustrated pages that assist home inspectors and home owners in the inspection and detection of problems on buildings. The text is intended as a reference guide to help building owners operate and maintain their home effectively. InspectAPedia.com ® author/editor Daniel Friedman is a contributing author. Field inspection worksheets are included at the back of the volume.
Domestic and Commercial Oil Burners, Charles H. Burkhardt, McGraw Hill Book Company, New York 3rd Ed 1969.
National Fuel Gas Code (Z223.1) $16.00 and National Fuel Gas Code Handbook (Z223.2) $47.00 American Gas Association (A.G.A.), 1515 Wilson Boulevard, Arlington, VA 22209 also available from National Fire Protection Association, Batterymarch Park, Quincy, MA 02269. Fundamentals of Gas Appliance Venting and Ventilation, 1985, American Gas Association Laboratories, Engineering Services Department. American Gas Association, 1515 Wilson Boulevard, Arlington, VA 22209. Catalog #XHO585. Reprinted 1989.
The Steam Book, 1984, Training and Education Department, Fluid Handling Division, ITT [probably out of print, possibly available from several home inspection supply companies] Fuel Oil and Oil Heat Magazine, October 1990, offers an update,
Principles of Steam Heating, $13.25 includes postage. Fuel oil & Oil Heat Magazine, 389 Passaic Ave., Fairfield, NJ 07004.
The Lost Art of Steam Heating, Dan Holohan, 516-579-3046 FAX
Principles of Steam Heating, Dan Holohan, technical editor of Fuel Oil and Oil Heat magazine, 389 Passaic Ave., Fairfield, NJ 07004 ($12.+1.25 postage/handling).
"Residential Hydronic (circulating hot water) Heating Systems", Instructional Technologies Institute, Inc., 145 "D" Grassy Plain St., Bethel, CT 06801 800/227-1663 [home inspection training material] 1987
"Warm Air Heating Systems". Instructional Technologies Institute, Inc., 145 "D" Grassy Plain St., Bethel, CT 06801 800/227-1663 [home inspection training material] 1987
Heating, Ventilating, and Air Conditioning Volume I, Heating Fundamentals,
Boilers, Boiler Conversions, James E. Brumbaugh, ISBN 0-672-23389-4 (v. 1) Volume II, Oil, Gas, and Coal Burners, Controls, Ducts, Piping, Valves, James E. Brumbaugh, ISBN 0-672-23390-7 (v. 2) Volume III, Radiant Heating, Water Heaters, Ventilation, Air Conditioning, Heat Pumps, Air Cleaners, James E. Brumbaugh, ISBN 0-672-23383-5 (v. 3) or ISBN 0-672-23380-0 (set) Special Sales Director, Macmillan Publishing Co., 866 Third Ave., New York, NY 10022. Macmillan Publishing Co., NY
Installation Guide for Residential Hydronic Heating Systems
Installation Guide #200, The Hydronics Institute, 35 Russo Place, Berkeley Heights, NJ 07922
The ABC's of Retention Head Oil Burners, National Association of Oil Heat Service Managers, TM 115, National Old Timers' Association of the Energy Industry, PO Box 168, Mineola, NY 11501. (Excellent tips on spotting problems on oil-fired heating equipment. Booklet.)
Links to our list of additional information on heating system inspection, repair, maintenance
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