Propane or Heating Oil? Which is the Better Choice?
We get the question A LOT. Which is better for me to use to heat my home…propane or heating oil?
First, full disclosure, here at Tankfarm we buy propane as a group so we’re a little biased. Since we get the question so much though, we thought we’d break it down.
We’re fans of the old pros and cons system. So here it goes:
Heating Oil Pros
Heating oil (#2 heating oil to be exact) is full of energy with 140,000 BTU’s in every gallon. That means when you turn the thermostat up in winter, you’re going to get a blast of heat fast. Same thing if you heat your hot water with heating oil.
Heating oil also has an army of dedicated and professional companies that deliver the fuel to you automatically, and will generally come out to fix your burner at all hours of the night if it breaks down.
Heating oil also enjoys very simple pricing. Whether you use 200 gallons or 2,000 the price is generally the same. That makes it easier to shop around and compare.
Heating Oil Cons
The biggest con of heating oil is that it is expensive. $2.60 on average right now according to the EIA. It also can burn dirty in your average poorly tuned furnace, meaning soot, wasted energy and equipment failure.
Heating oil also means living with a tank in your house since most municipalities frown on buried oil tanks. The industry also has another problem- the big oil refiners don’t want to make heating oil any more. They prefer to churn out high-margin gasoline products instead. That means heating oil supply is coming from a smaller and smaller group of companies which isn’t good news for consumers long-term.
Propane Pros
One great thing about propane is its affordability. While not as BTU rich as heating oil, propane has been the cost winner for the last several years now due in large part to the amount of natural gas exploration here in the US. Which is another big benefit of propane- we have a nearly inexhaustible supply of it right here at home.
Propane also burns cleaner than heating oil and doesn’t produce the same soot or potential for equipment failure. Service calls and breakdowns of heating systems are rare. There is also generally a good number of suppliers in most regions of the US giving consumers lots of choices.
And propane is useful not just for space and water heating. It is widely used for cooking, fireplaces, and standby power.
Propane Cons
Propane doesn’t have a lot of cons but there is a need for vigilance on safety. Propane tanks, connections, and appliances need to be regularly checked to ensure there are no leaks of propane or exhaust gases in the house. The industry is meticulous about safety issues, but it is something consumers need to take responsibility for too.
Many consumers also find that propane pricing can be opaque and hard to understand. Customer agreements can also include fees for tank rentals, deliveries, low-usage, etc.
Conclusion
In our humble opinion we feel that propane wins the day over heating oil. It’s domestically produced, it burns cleaner, it’s cheaper, and can do more than just heat. To really experience the benefits however consumers need to choose a propane company that values safety above all other considerations. They also need to be vigilant about their pricing and the terms of their agreements.
