OIL is CHEAP!!! Now what?

[Kelvin 506]

OK, so now that I bought my stove (last year) wouldn't you know that I can get oil at $2.06/gallon. I asked the wood dude to get me 6 cords ($300 per) thinking I was going all wood this year. Now I'm thinking I can use some oil too and save some time/energy(as in me lugging wood!). If I only burn 4 cord like last year and use a bit of oil I will have some really seasoned wood for the next season. I figure it won't be as cold as last year either given it was record breaking. Last year really kicked my ass, not super dry wood and miserably cold temps.
Do you wood burners ever go to the dark side and burn oil when it's so cheap?

Lastly, I tried to google it but here's my question: what is the cheapest oil fuel can go per gallon? Considering there is a refining cost and transportation cost I figure it can't get much cheaper than $2/gallon even if barrel prices drop to $30. Anybody have any insight on this?

Thanks!

 

[begreen]

I use electric (heatpump) in mild weather. It is cheaper, cleaner and more convenient.

 

[billb3]

at 27.5¢ /Kwh here electric is not cheaper.

practically I don't think HHO will go too much lower than it is right now. Although in the past in Aug/Sep/Oct demand has slacked and the price has dropped. A little. For a short period. Certainly no less than last March. Crude has been hovering at around 60/65 since April.China just dropped interest rates a smidge which is indicative of a stalled economy. Europe and the US isn't exactly going gang-busters. We're not doing all that bad considering. Not much pressure there to push crude prices up, nor down.
A list of crude to diesel reference isn't hard to find

• $10 crude = $0.88 per gallon diesel pump price

• $15 crude = $1.02 per gallon diesel pump price

• $20 crude = $1.12 per gallon diesel pump price

• $25 crude = $1.24 per gallon diesel pump price

• $30 crude = $1.35 per gallon diesel pump price

• $35 crude = $1.47 per gallon diesel pump price

• $40 crude = $1.59 per gallon diesel pump price

• $45 crude = $1.71 per gallon diesel pump price

• $50 crude = $1.83 per gallon diesel pump price

• $55 crude = $1.95 per gallon diesel pump price

• $60 crude = $2.06 per gallon diesel pump price

• $65 crude = $2.19 per gallon diesel pump price

• $70 crude = $2.31 per gallon diesel pump price

• $75 crude = $2.43 per gallon diesel pump price

• $80 crude = $2.54 per gallon diesel pump price

• $85 crude = $2.66 per gallon diesel pump price

• $90 crude = $2.78 per gallon diesel pump price

• $95 crude = $2.90 per gallon diesel pump price

• $100 crude = $3.02 per gallon diesel pump price

• $105 crude = $3.14 per gallon diesel pump price

• $110 crude = $3.26 per gallon diesel pump price

• $115 crude = $3.38 per gallon diesel pump price

• $120 crude = $3.50 per gallon diesel pump price

• $125 crude = $3.62 per gallon diesel pump price

• $130 crude = $3.74 per gallon diesel pump price

• $135 crude = $3.85 per gallon diesel pump price

• $140 crude = $3.97 per gallon diesel pump price

• $145 crude = $4.09 per gallon diesel pump price

• $150 crude = $4.21 per gallon diesel pump price

That doesn't account for seasonal variances, local taxes, refinery problems, regional transportation costs, etc. HHO tends to be close to diesel prices . (except for when/where they aren't)

Even though I haven't paid more than $80/90 a cord ( my last 4 were about $25 each ) I figure my red oak is worth $250 a cord based on cord prices here . (If you can find it, last year was awful) and HHO would have to get down under $1.70 to be "cheaper" but by the same token I'm not burning my precious 4 year seasoned red oak to keep the stove going and have the windows open because it's too hot in the house cuz it's too warm out. I'll let the fire go out and burn a few sips of oil. I'd really rather have the wood to burn down the road. Coarse maybe I'm a bit of a hoarder too.



At $300/cord and $2.06 for HHO wood is still ( a little) cheaper. I'd probably consider burn oil for milder weather though.

 

[mass_burner]

At these prices, fill your tank. Also, UHN is still at 22 and change, if you think hho is bound to go up, buy some of this ETF.

 

[Charles1981]

well your wood prices are expensive. You can easily get 1 cord of split wood for 180-200 around here if you can haul and stack it yourself...

Or you can order log length at 100-110 a cord and process it yourself. But if the oil is cheap burn with it till it aint and let your wood season if that is what you want.

 

[Ashful]

I get my wood for the cost of gas in my equipment, so that doesn't really figure much into the cost equation, but I still keep the oil-fired boiler and three zones of heat pumps running thru the whole season. The wood stoves (two running 24/7) take a big bite out of the oil bill, but it's the boiler that's providing the final level of comfort. We did try by wood alone, a few years back, but we were quite cold. That was with two Jotul Firelights, maybe the Ashfords can do better.

Here's the real stinger, I locked in 1000 gallons at $3.38 last summer, before the pricing dropped. Pretty much undid the savings of the prior two years.

 

[Dieselhead]

Yeah 300 per cord is up there, I'd shop around

 

[Highbeam]

If my backup heat source was the same cost as wood per btu (you're not there yet BTW) then I would still burn for pleasure at least part time. The comfort, silence, and type of heat from the wood has value to me. Heck, we waste wood in the summer by burning it in pits for campfires.

 

[DougA]

Agreed, $300/cord is too high. The other note is that the last two winters have been very cold for us but that is still not a forecast of what might happen this coming winter. I'd suggest you burn only when it gets very cold and let the wood get drier. In the meantime, search for cheaper (or free) wood. Free wood will always beat the price of oil - guaranteed.

 

[fire_man]

$300/cord unfortunately sounds about right around here (MA). Even scrounging has become EXTREMELY competitive - thunderstorms are barely over before scroungers show up to grab the remains.

One guy got arrested because he was hindering a power line restoration job by refusing to move from under the power lines with his chain saw in-hand - he was waiting for the utility crew to remove a fallen tree but was afraid someone else would claim it first.

People got burned for too long with high oil prices so I think that's why wood is still expensive.

 

[TheOscarGuy]

OK, so now that I bought my stove (last year) wouldn't you know that I can get oil at $2.06/gallon. I asked the wood dude to get me 6 cords ($300 per) thinking I was going all wood this year. Now I'm thinking I can use some oil too and save some time/energy(as in me lugging wood!). If I only burn 4 cord like last year and use a bit of oil I will have some really seasoned wood for the next season. I figure it won't be as cold as last year either given it was record breaking. Last year really kicked my ass, not super dry wood and miserably cold temps.
Do you wood burners ever go to the dark side and burn oil when it's so cheap?

Lastly, I tried to google it but here's my question: what is the cheapest oil fuel can go per gallon? Considering there is a refining cost and transportation cost I figure it can't get much cheaper than $2/gallon even if barrel prices drop to $30. Anybody have any insight on this?

Thanks!

Its funny I am in somewhat better situation with wood prices, but worse situation with oil. I am in Westborough.
I am getting a 2.99 oil price lock right now. I can get (not seasoned, green) at $250 that will be ready by winter for burning.

 

[Grisu]

I can get (not seasoned, green) at $250 that will be ready by winter for burning.

How will that be ready by winter? Not even ash dries that fast and I would have my doubts about pine unless it is really split small. Or are you just citing the (ludicrous) claim the firewood seller makes?

 

[TheOscarGuy]

How will that be ready by winter? Not even ash dries that fast and I would have my doubts about pine unless it is really split small. Or are you just citing the (ludicrous) claim the firewood seller makes?

A family friend has been burning wood from this seller for past two seasons. I m unsure if they do a moisture check, but their home always seems toasty.

 

[begreen]

Unfortunately that is no guidance. Their home could be well insulated, the stove could be an oversized smoke dragon instead of a modern stove, etc.. They could be stoking it with green wood and 50% heading up the stack as steam.

 

[DougA]

I m unsure if they do a moisture check, but their home always seems toasty.

Ahhh ... that would be the wood fairy.

Of course, you can burn wood at 25% moisture and even burn at 35%. The only problem is that you are losing a LOT of value when so much of the heat is burned up just drying out the wood first. Then, there's the minor concern with creosote in the chimney but the fire dept can take care of that problem.

Always best to spend $20 on a moisture meter and be safe.

 

[Kelvin 506]

I know $300 is a bit high and I could easily get $250 per. but this guy gives me actually cords (as in doesn't skimp), debarked, already a year seasoned, and cut to 22 inch. And i did see oil barrel cost to fuel cost breakdowns but for Canada. I'm just gonna fill the tank, stick with wood but supplement if oil stays this cheap. Sooo convenient and don't need to worry as much about keeping stove full to keep house comfortable. My house is a large L shape and even with the fans it stays a bit cooler on the extreme ends of the house.

 

[Kelvin 506]

Its funny I am in somewhat better situation with wood prices, but worse situation with oil. I am in Westborough.
I am getting a 2.99 oil price lock right now. I can get (not seasoned, green) at $250 that will be ready by winter for burning.

located out of Mansfield MA: www.ordermyoil.com put in your zip code and they contract with other oil delivery businesses to fill you up. You can't lock prices though. It's cash price for the day you order and you use credit card on the website.

 

[Poindexter]

I don't think crude oil will spend very much time at or below $50/ bbl in the next ten years or so, unless someone makes a big find that messes up the supply side of the current balance.

Local to me green cordwood pricing is closely related to the price of crude oil/ #2 heating oil. Basically the wood cutters know exactly how much #2 heating fuel costs because they burn some too, pricing on cordwood is as much as they can possibly charge for the cordwood but still be just enough cheaper than oil for folks to bother witht eh wood handling side.

What to do when oil proces are low? Stock up on green cordwood while green cordwood is cheap too. Couple months ago I could get green cord wood delivered as splits cheaper than I could bring home rounds I felled in the woods myself.

 

[Ashful]

I suspect your observations may be unique to regions where wood heating more common. Around here, I've never seen the price of wood fluctuate by one penny. It was $200/cord from any commercial dealer for several years, now more typically $225/cord. The price of oil has fluctuated wildly, during that time.

 

[begreen]

Locally a cord of split wood cost seems to have only one direction, up. I am seeing summertime prices of $300-325/cord here.

 

[Rossco]

If you buy wood then buy oil instead if its cheaper or marginal. People don't factor in the time consumption of wood.

Around here we cut our own brown gold and 90% is good to go right off the saw. Still costs me a couple of 100 for the privalage and time but still, a huge reduction in heating cost, not to mention the satisfaction.

 

[TheOscarGuy]

located out of Mansfield MA: www.ordermyoil.com put in your zip code and they contract with other oil delivery businesses to fill you up. You can't lock prices though. It's cash price for the day you order and you use credit card on the website.

Thanks! This is quite cheaper than what my regular oil provider gives me (he is asking around 2.99 price ceiling, and fluctuating price depending on the cost).

 

[billb3]

Thanks! This is quite cheaper than what my regular oil provider gives me (he is asking around 2.99 price ceiling, and fluctuating price depending on the cost).

There can be quite a range of prices.
Some post their prices. Others don't and can be higher or just as low.
http://www.newenglandoil.com/index.asp