Value, Environment & Price |
There comes a point in the heating season when the phones ring off the hook. It is right after the first really cold weather when everyone understands that the heating system must be turned on. Everyone and their brother wants to know the cost of a gallon of oil.
Churchill Oil is a full service dealer. We stock parts and offer 24 hour service for our customers so they can rest assured that within a short amount of time from their phone call, their heating system will be up and running again. This service is part of the reason we charge what we do at delivery time. Our price point is generally half way between the oil price in the paper and other full service dealers that charge (this season) up to fifty cents a gallon more than we do,
That used to be the difference, but things have changed dramatically and that is where value and the environment come into the picture.
Starting July 1, 2011, the Commonwealth of Massachusetts is enforcing a law which requires all fuel dealers to supply 2% Biofuel to every customer. Environmentally this is great, but to all customers, this could be a pariah. When the fuel prices spiked to about $4.00 a gallon a few years ago, wholesalers added Biofuel to the product they were selling. Fuel oil suppliers did not know this and plugged filters and nozzles resulted. It seems that Biofuel, although good for the environment, has a detergent effect on oil tanks and supply lines that caused built up sludge to be released and flow to filters. Churchill Oil immediately started splash blending an additive to every gallon sold
Almost two years ago. This blending has been cleaning your tank for two full heating seasons and you are ready for July 1. Many fueloil dealers have not taken this step and their customers will start to have problems immediately.
Environmentally, starting December 1, 2010, as a Churchill Oil customer, your heating equipment became as clean or cleaner than gas heating equipment. Churchill oil has bought only Ultra Low Sulphur Heating Oil (ULSHO) from Irving Oil, our major heating oil supplier. Few local dealers are offering this product, but it is the only product we sell. ULSHO reduces the amount of sulphur in the fuel from thousands of parts per million to something under 50 parts per million. Most of the soot vacuumed from your heating system on your annual tune-up was sulphur. Now that sulphur has been removed from the heating oil, there are less particulates entering the atmosphere and less soot
Eighteen years ago we started Churchill Oil with conservation and efficiency in mind. We are proud to say this has not changed. We are different than other oil companies and proud to stay that way.
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Bioheat : The Better Alternative Fuel Churchill Oil customers are beginning to use Bioheat — one of the "hottest" things happening in home heating.
Bioheat is a clean, green alternative fuel that is environmentally friendly! A blend of soybean oil or other vegetable oil with regular heating oil, Bioheat is renewable, non-toxic and biodegradable. It’s not only kind to the earth, but to heating systems, too! Bioheat has many benefits:
• Clean burning. Bioheat produces reduced sulfur and particulate emissions, making it environmentally friendly. Using Bioheat reduces harmful greenhouse gases and particulates from entering the atmosphere.
• Domestic production. Bioheat is grown here in America, which supports our nation’s farmers, reducing our dependence on foreign countries for a supply of oil.
• Keeps heating systems healthy. Bioheat lubricates heating system parts, therefore reducing the number of service calls annually.
• Economical. Bioheat costs about the same as conventional Oilheat, and has been subject to the same price decreases in recent months. There are many products of nature that can be made into Bioheat, including soybeans, rapeseed, jatropha and even algae!
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Massachusetts Bioheat Mandate
Governor Deval Patrick recently signed the Clean Energy Biofuels Act, which creates a timetable for a statewide transition to Bioheat. There will be a 2% renewable component in all Oilheat sold in the state in 2010, and that will increase to 5% in 2013. This makes Massachusetts the first state in the union to mandate the use of biofuels for both heating and transportation.
Oilheat continues to change for the better, with two major fuel supply transitions that will reduce emissions from every Oilheated home in Massachusetts. As a Churchill Oil customer, you will join this Clean Revolution with no investment cost, because the new fuel blends are compatible with current Oilheat systems. The first change is the statewide migration to Bioheat® starting in 2010. Bioheat is a blend of traditional Oilheat and renewable biofuel. All biofuel used to satisfy the Massachusetts Bioheat mandate must achieve a 50% reduction in greenhouse gas emissions!The second transition is a fuel reformulation. By 2014, oil refiners will produce Oilheat with no more than 500 parts per million of sulfur, as part of a two-stage transition to a sulfur limit of 15 parts per million. A reduced-sulfur blend is more environmentally friendly because it generates lower emissions and fewer airborne particulates. These fuel improvements will further enhance Oilheat’s environmental profile, which has benefited in recent years from important advancements in equipment technology. A typical Oilheated home today produces 35% fewer emissions than in 1973, largely due to more efficient equipment installed by Oilheat dealers. As this important transition in fuel quality progresses, you can take pride in being part of the solution for mitigating climate change and cleansing our atmosphere.
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Navigating the Oilheat Marketplace The United States sources of heating oil are domestic refineries and imports from foreign countries. Refineries produce heating oil as a part of the "distillate fuel oil" product family, which includes both diesel fuel and heating oil. Distillate products are shipped throughout the United States by pipelines, barges, tankers, trucks and rail cars. Most imports of distillate come from Canada, the Virgin Islands and Venezuela.
Heating oil is traded on the commodities market just like other home heating fuels. This means heating oil cost is subject to fluctuations, just like the stock market. The price of crude oil has the biggest impact on the price of wholesale heating oil. Due to the variations in crude oil prices, dealers are generally price takers on any given day.
Heating oil like any energy product responds to supply and demand fundamentals, such as cold or warm weather. Additionally, heating oil prices in this country may be affected by a supply disruption in oil producing country, or even cold weather in Europe. On a daily basis, heating oil prices can vary widely.
Prices can change for a variety of reasons including:
Seasonality in the demand for heating oil - When crude oil prices are steady, home heating oil prices tend to slowly rise in the winter months when demand is highest.
Changes in the cost of crude oil - Crude oil is a major price component of heating oil, changes in the price of crude oil will generally affect the price of heating oil.
Competition in local markets – Competitive differences can be substantial between a locality with only one or a few suppliers or dealers versus an area with a large number of competitors.
Regional operating costs - Prices also are impacted by higher costs of transporting the product to remote locations.
Retail Price - Prices move up or down during the heating season; retail price customers are not locked into a set price as they are with a Price Protection Program. The retailer typically sets his price for the day, and then deliveries are made at that price.
As a result of the competitive nature of the industry there are many different pricing alternatives. It is important for customers to understand their pricing options and pick the one that is best for their family.
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Easy ways to Reduce Heating Bills
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Have your heating system cleaned and serviced yearly to keep heat output at the highest level. (Before or after the heating season is the best time to have this service done.) A lack of regular maintenance forces your system to work longer, causing you to burn up to 10% more fuel. Annual service also extends the life of your system and minimizes breakdowns.
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Allow free movement of heat around vents, radiators or baseboards Avoid blocking these heat outlets with any furniture or heavy drapes and dust them regularly. A dirty vent, radiator or baseboard hinders heat output.
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Place metal reflectors (cardboard wrapped in aluminum foil works just as well) behind radiators or above your baseboards to "bounce" the heat toward the center of the room.
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Change or clean the filters in your warm air system several times during the heating season.
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Insulate air ducts that pass through unheated spaces and have your ducts checked for any leaks.
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