$$$$ Are you still gonna burn

[dpapagolos]

Looking forsome insight and feelings given the prices of oil dropping. Who will still burn pellets?
I think I will as I am knee deep in money spent on the stove and pellets.
Hmmm!

 

[MainePellethead]

I will definitely burn. If oil goes below pellets....I will have a board meeting...lol. If oil is a bit cheaper than pellets I will still burn pellets as a back up instead of the main source as I burn now. They HAVE to make it worth my while....my back isnt so good.....but to save $$$ I will do what I have to do....but if oil drops alot more then I will save my back

There is a guy at work...his cousin distributes pellets. He orders a huge amount...this year he got them for 210 a ton for people and thats cheap in Maine. Its in the works for him to open a pellet business on Rte. 1 in Saco. Gonna be called the Pellet Depot I believe. But ....he will be selling pellets out of there pretty cheap compared to some lately.

I paid anough for the stove....will still burn no matter what......just depends on price is how much I burn.....its all in the price.

 

[Xena]

I sure will. Oil would have to drop a lot more to be cheaper to
run over the pellets (I purchased my pellets in the April early buy).

The stove I bought four years ago.

 

[Shortstuff]

I hear ya dp. After last winters fuel oil costs we decided to look at alternative methods of heat that would be cheaper and found pellet stoves to be our best bet. By early June our stove was in house (not installed until August) and the pellets arrived as scheduled in the middle of September. During this time we all know what happened with oil and gas prices which gave us a good feeling knowing that we'd made a good decision.

My wife just got a fill-up at a local gas station and it was $2.95.9 for regular and last week I ran into a fuel oil delivery guy and his current price was $3.19.9 per gallon and it has dropped a bit more since then. So we are in the exact same frame of mind that you are in. Did we just waste $4,000.00 in a new stove and pellets? - My answer is a simple No.

It's hard to sit and work out the numbers to say that after paying $244.00 per ton for pellets that fuel oil would have to drop to $3.00 per gallon (for example) to equal out. Then I tell myself that it's unlikely that fuel oil will drop enough to equal pellets, but very likely that once winter really kicks in and the demand for oil goes up, so will the cost of oil. Oil may only reach a high of less than $4.00 per gallon or could go through the roof again and hit $5.00 or more - there's no way to predict the future of oil.

But there's one thing that I can be sure of GUARANTEED. I already have all the fuel (pellets) I need to get me through the winter, bought, paid for and in my garage. With oil there are NO guarantees. OPEC can set their prices at whatever they want. An unfortunate incident with an oil tanker or oil field or pipeline or something similar can disrupt the flow of oil thereby reducing the availability of oil. Who knows?

Also, I am doing my part to rid my dependence on foreign oil. I'm doing right for my environment. My pellets are made here in the U.S.A. (Barefoot) by American workers in an American factory. There are sooooo many things that we have no control over. My wife checked her 401k this morning and has lost over $8k in the past 4 weeks and someone we know has lost over $50k. Albiet only a small victory for us - we do have control over our choice of heat and we are just as satisfied now as we were 3 months ago that we made the right choice.

Steve

 

[Chinkowski]

i'll burn no matter what. buying pellets in the spring is the way to go. these greedy bastards have forced people into looking into alternate ways of heating and so on. i could care less if the price of oil / propane drops. i hope they loose a ton of money and are stuck with massive inventory. they way they gloated about record profits quater after quater makes me sick. people in this country can barely pay their bills and the oil companies keep gouging the american consumer. i hope all americans will conserve and use as little oil as possible. in the long run it should open the eyes of americans. this country really needs to shake this oil dependence we have. i'll get off my soap box now , but its really disturbing whtas going on in this country now.

 

[mkmh]

Of course. The full 08/09 supply is paid for so I can't see any reason to change course. Even if oil went to 1.00 a gallon i'd still run the stoves this winter.
If I wasn't sitting on 5 tons of pellets that might change things, but for me, once the pellets are delivered the decision is final. If oil is dirt cheap next March I will reevaluate things.
The drop in oil and gas is still somewhat surreal to me. I filled up my gas tank in Newmarket, NH last night for $2.81. If you would have asked me six months ago whether I thought we'd ever see 3.00 bucks a gallon again I would have said absolutely not.

 

[pellet0708]

Will keep burning pellets (only our first year) for a few reasons. Have a full oil tank which I want to save for hot water since you never can rely on oil prices and availability down the road.
Also if we all conserve on oil it will help keep prices down which effects gasoline prices which we have no choice about.

You have to keep the big picture in mind and not just a few dollars either way or be afraid of cleaning up a little ash.

Now having said that, the pellet dealers will have to get their act together and work out the kinks concerning availability and pricing.

 

[dlastt]

Hey MainePelletHead is this guys cousing also going to be selling other compressed wood products, such as biobricks or envi blocks?

 

[MainePellethead]

Hey MainePelletHead is this guys cousing also going to be selling other compressed wood products, such as biobricks or envi blocks?

I know he is going to sell pellets......although I am not 100% sure.....but I "think" that selling other products as well. I'll be watching his prices for sure.

 

[imacman]

Looking forsome insight and feelings given the prices of oil dropping. Who will still burn pellets?
I think I will as I am knee deep in money spent on the stove and pellets.
Hmmm!

I guess it's a matter of what you've paid for your pellets and oil. Use this calculator from the Pellet Fuel institute and plug in the prices you piad for both. Whatever comes out cheaper per BTU, burn that.

(broken link removed to http://www.pelletheat.org/3/residential/compareFuel.cfm)

 

[lessoil]

$$$YES YES YES!!$$$

Oil price here was $4.53 in July and $3.50 now.
We did not lock in so we are buying at current prices.
We burn around 600 gal for heat and 300 for hot water per year.
900 gal X $4.00/gal= TOO MUCH!!

Our 4 tons will be delivered next week at about $300/ton.

OPEC will be meeting soon to decide how much production should
be reduced to help bump the crude oil price UP.
The higher the oil price goes, the quicker the stove will pay for itself!!

I feel warmer from not hearing the furnace kick on!
Getting ready to install 4 computer fans in the house for circulation. About $70

 

[Lorilooo]

Yes I will. Even though we are new to this whole thing, we would have still made the same decision right now as we did in May. I do not trust that oil/gas prices will stay where they are now. No way. I don't trust anything anymore, actually. We are sitting ducks as it is, but there are some things that we CAN change, and how we heat our homes is one of those things! We are also being environmentally responsible and trying to do our part, however small that may seem to be. Everyone else has mirrored my thoughts already, and I agree with you all. We may be a small army here on this forum, but we are mighty and we do have some control/power, whatever you want to call it. Alright, I'm stepping off my soapbox now before I get myself in trouble. 8-/

Chaio,
Lori

 

[hoverfly]

Since I have not purchased either pellets or oil I will buy what ever is the cheapest at the time. Current I have enough oil to hold out for the next 4 weeks or so.

 

[bostonbaked]

I'm gonna burn baby burn. I went to pellets for one reason. I hate those OPEC scumbags who hate us so, and hope I live to see them drinking oil and sand cocktails. I will be oil free within a year. Now if I can only get my dam truck and car to burn pellets.

 

[kilarney]

I have a winter's worth of pellets sitting in my garage.

I will burn whatever is cheapest. If oil becomes cheaper than pellets, no doubt oil will go up in price at some point. When it does, I'll burn the pellets that are stored in my garage.

I love burning pellets, but I'm not going to throw money away to do so.

 

[JBlank912]

I ended up signing for an Oil budget plan but at 1/2 of last years based on pellet stove install this year. I'm looking forward to them trying to deliver on auto delivery to a full oil tank so I can laugh it off. :lol:

 

[BDPVT]

At this point I don't really care about the price of oil. I am completly feed up with the games being played in the oil market. Our fuel dealer quoted our "budget plan" at $4.79/gal plus a $200 premium for the privlege of caping the price= $575/month x 12= $6900! In my neck of the woods fuel oil is still around $3.90/gal.
We made a commitment to alternative energy right then and there. I installed 2 pellet stoves and bought 5 tons of pellets early for $199/ton to heat my house for the cost of 1 season of heating oil. I realize that the payback will be over several years especially if oil prices drop, but fuel oil would need to be under $1.55/gal to be cheaper than pellets.

 

[Chinkowski]

OPEC is only going to allow prices to go so low before they cut back production. they control the game. get off oil as much as possible and do what little you can to control your own destiny.

 

[imacman]

.... Our fuel dealer quoted our "budget plan" at $4.79/gal plus a $200 premium for the privlege of caping the price

Hey BDPVT, you got off easy.....my company wanted the same price for the "budget plan" gal of oil, but wanted me to pay $360 for the "privledge". :bug:

I'll give you one guess what I told them to do with that......

 

[fredarm]

My former oil company wanted $400 to sign up for the cap program. Note I said "former". I'll be burning wood as much as possible (a mix of harvested myself and bought cordwood) and buying what oil I need from a no-frills discounter.

 

[terryjd98]

I am still planning on burning pellets. Just called the oil company and the price of oil right now is $1.01 a liter, $4.54 an Imperial Gallon = $3.82 a US gallon. Using that Cost Compare Calculator pellets show $18.37 a million BTU, Oil $39.64 per million btu. Thats a big difference. Oil would really have to still drop a lot to make it worth while for me to use only oil. Also the excercise of doing the work of a pellet stove will do me good, though can see when its 20 below out and I have to carry bags of pellets in I will be saying I don't need excercise that bad then lol.

 

[imacman]

I am still planning on burning pellets. Just called the oil company and the price of oil right now is $1.01 a liter, $4.54 an Imperial Gallon = $3.82 a US gallon. Using that Cost Compare Calculator pellets show $18.37 a million BTU, Oil $39.64 per million btu. Thats a big difference. Oil would really have to still drop a lot to make it worth while for me to use only oil. Also the excercise of doing the work of a pellet stove will do me good, though can see when its 20 below out and I have to carry bags of pellets in I will be saying I don't need excercise that bad then lol.

Terry,

yep, I'm guessing that you paid about $240/ton for the pellets? If so, then oil would have to drop to $2/Gal for it to be EQUAL to the BTU cost of the pellets, and under that to be cheaper to burn......I don't think we're ever going to see $2 oil again. I think you'll be burning pellets from now on.

 

[Ossy]

I will be burning pellets ....that is my heat source for my downstairs (raised ranch with a walk out basement)...while I have oil for my hot water base board boiler for upstairs....of course I will spend most of my time down stairs anyway since my office, 50 in tv theater system, and futon is there as well...I have already cut my fuel oil consumption this year by about 125 gallons out of 700 just by cutting back (heat and hot water)....I generally go through about 250 gal of oil for hot water based on my rough calcs...I think I will save in total around 250 gal this years...pay back period is 2.25 winters based on $4 gal....but hey, it really doesn't make a difference because oil is still roughly $3.50 a gallon AND I STILL NEED TO HEAT MY DOWNSTAIRS....it would have to drop to $2.65 (roughly) to make a difference in my approach...of course if it drops less than the cost per btu for pellets then I guess I will spend more time upstairs this winter...the nice thing is that I am no longer dependent upon 1 SOURCE OF FUEL....which to me is big plus and added value....

I think next year I will look at other means/measures to lower my overall energy cost....particularly my electric bill...it runs $100 per month which IMO is about $30 per month to much...I do have CFL's throughout the house....new energy star refrig.....I think some of it is my personal habits and my high powered game rig computer at 550 watts per hour.....anyway, thats my plan... :cheese:

Ossy

 

[DiggerJim]

My former oil company wanted $400 to sign up for the cap program. Note I said "former".

It'll be interesting to see how many home heating oil dealers are left at the end of the winter (or maybe even the beginning). With the steep decline, any of them who bought back in July will have a hard time convincing customers to pay enough so they don't lose their shirts. How'd you like to be a dealer who bought a half-million dollars of oil and now it's worth $200,000 less? And do you think the banks are going to lend him the money to keep afloat this year? Lots of bankruptcies heading our way in just that part of the economy I'd expect.

 

[MainePellethead]

OPEC is only going to allow prices to go so low before they cut back production. they control the game. get off oil as much as possible and do what little you can to control your own destiny.

Thats correct. I remember OPEC awhile back saying their comfort level for barrel price was $100. Its now below that....expect production changes for sure. Thats why we need to promote alternate energy like never before. They will have no choice but to keep it lower. You can bet the Arabs are at least thinking in their thoughts that the Americans sooner or later are going to depend a whole lot less of of their black crap. I just hope we dont get lost in what we did in the 70's.....as soon as price comes down we forget about alternative ideas.