Shortage?

[kinsmanstoves]

Every little bit helps. So make sure you buy pellets. The more the better, lol.

Eric

 

[Panhandler]

You can also look at it this way, you're helping to keep the cost of gasoline down, of which we currently have no viable alternative.

 

[flashbang]

Home heating #2 oil is $2.00/gal delivered right now 10/26/08 in my area.

Acording to the btu caculator if you beleive the numbers it produces:
Pellets @ 250/ton + delivery = $19.00/mbtu
Oil @ $2.00/gal = $18.50/mbtu and nothing to load or clean.

I will run oil untill it is not cost effective.

 

[pelletizer]

Wow $2.00 a gallon you are lucky the cheapest here in N.H. in my delivery range I have seen is $2.99 a gallon.

 

[flashbang]

Shop around my friend. My oil delivery contract supplier wanted me to lock in 5 weeks ago @ $4.29/gal whether prices go up or down. I got screwd last year with a lock in when prices fell and they would not work with me. I am glad I didn't fall for it this year.

 

[Wet1]

"Oil is now as cheap or cheaper than burning pellets"

Not quite,but getting closer.I ran a chart with pellets at 270.00 ton pellets (what my 4 tons order cost) VS oil at 3.25 (going rate up here) and pellets are still 10.00 cheaper per million BTU's

http://www.pelletheat.org/3/residential/compareFuel.cfm

Of course if you factor in buying pellets tomorrow (if you can find them) vs another drop in heating oil we could very easily get to even.I suspect a lot of the drop in oil has been overdone with hedge funds unwinding some over leveraged positions along with liquidating by both Hedge Funds and Mutual funds for redemptions.Just a guess of course as this market is irrational.

If oil is not cheaper in your area, it will be very soon. Oil is at $62/barrel this morning, and heading lower... maybe a lot lower.

Right now pellets are as expensive, or more expensive, than oil. They will soon be significantly more expensive than oil. Add in the inconvenience factor for maintaining a pellet stove and its inability to evenly heat the typical house and I think most will opt to use their cheaper central heating system.

 

[kinsmanstoves]

Flashbang said "Home heating #2 oil is $2.00/gal delivered right now 10/26/08 in my area."


Oil in N/E Ohio was just shy of $3 last I checked. Diesel is still over $4. I am not sure what you can hold in heating oil but I would cash in on that deal. Fill me up.

Eric

 

[nhdblfan]

"Oil is now as cheap or cheaper than burning pellets"

Not quite,but getting closer.I ran a chart with pellets at 270.00 ton pellets (what my 4 tons order cost) VS oil at 3.25 (going rate up here) and pellets are still 10.00 cheaper per million BTU's

http://www.pelletheat.org/3/residential/compareFuel.cfm

Of course if you factor in buying pellets tomorrow (if you can find them) vs another drop in heating oil we could very easily get to even.I suspect a lot of the drop in oil has been overdone with hedge funds unwinding some over leveraged positions along with liquidating by both Hedge Funds and Mutual funds for redemptions.Just a guess of course as this market is irrational.

If oil is not cheaper in your area, it will be very soon. Oil is at $62/barrel this morning, and heading lower... maybe a lot lower.
Right now pellets are as expensive, or more expensive, than oil. They will soon be significantly more expensive than oil. Add in the inconvenience factor for maintaining a pellet stove and its inability to evenly heat the typical house and I think most will opt to use their cheaper central heating system.

It is of course hard to say for sure but a lot of the downward pressure in the price of oil has been the redemptions requiring liquidation in the hedge funds and to some extent mutual funds.The pendulum always swings to far each way,fear and greed.This is the fear side now,OPEC has cut and may can again to support the price.I still think oil will trade 85 per barrel within a years.Lots of projects are getting held back as production costs exceed what they can get for the product.next you will see cold stacking of rigs and then the climb back up again.All the easy oil has been found,whats left costs more.

we will see but I doubt "much lower" is in the cards for oil

 

[pelletizer]

Dropped to $2.69 today with 150 gallon min delivery found one with a 100 gallon min but they are still $2.99 I am sure they will soon be at $2.69 I plan on getting at least 100 to 150 gallons for the zone over the garage. I paid $224.00 a ton for my pellets not sure were I break even with oil. I do like the cranking heat output of a pellet stove and the fire view.

 

[nhdblfan]

Dropped to $2.69 today with 150 gallon min delivery found one with a 100 gallon min but they are still $2.99 I am sure they will soon be at $2.69 I plan on getting at least 100 to 150 gallons for the zone over the garage. I paid $224.00 a ton for my pellets not sure were I break even with oil. I do like the cranking heat output of a pellet stove and the fire view.

here ya go this is where you are now;

http://www.pelletheat.org/3/residential/compareFuel.cfm

your still better with the pellets at 224. 17 and change vs 24.00 for oil

it would have to go to 1.85 for you to be even.(ain't happening);
http://www.pelletheat.org/3/residential/compareFuel.cfm

I suspect 2.69 is about the bottom or close (I saw the post about 2.00 but that is not possible as it traded 1.80 or so on the NYMEX now and one would have to allow for taxes (which ae going higher) and profit.

 

[hoverfly]

Dropped to $2.69 today with 150 gallon min delivery found one with a 100 gallon min but they are still $2.99 I am sure they will soon be at $2.69 I plan on getting at least 100 to 150 gallons for the zone over the garage. I paid $224.00 a ton for my pellets not sure were I break even with oil. I do like the cranking heat output of a pellet stove and the fire view.

here ya go this is where you are now;

http://www.pelletheat.org/3/residential/compareFuel.cfm

your still better with the pellets at 224. 17 and change vs 24.00 for oil

it would have to go to 1.85 for you to be even.(ain't happening);
http://www.pelletheat.org/3/residential/compareFuel.cfm

I suspect 2.69 is about the bottom or close (I saw the post about 2.00 but that is not possible as it traded 1.80 or so on the NYMEX now and one would have to allow for taxes (which ae going higher) and profit.

There are no taxes on home heating oil and off road deissle.

 

[hoverfly]

Dropped to $2.69 today with 150 gallon min delivery found one with a 100 gallon min but they are still $2.99 I am sure they will soon be at $2.69 I plan on getting at least 100 to 150 gallons for the zone over the garage. I paid $224.00 a ton for my pellets not sure were I break even with oil. I do like the cranking heat output of a pellet stove and the fire view.

here ya go this is where you are now;

http://www.pelletheat.org/3/residential/compareFuel.cfm

your still better with the pellets at 224. 17 and change vs 24.00 for oil

it would have to go to 1.85 for you to be even.(ain't happening);
http://www.pelletheat.org/3/residential/compareFuel.cfm

I suspect 2.69 is about the bottom or close (I saw the post about 2.00 but that is not possible as it traded 1.80 or so on the NYMEX now and one would have to allow for taxes (which ae going higher) and profit.

There are no taxes on home heating oil and off road diesel.

 

[DiggerJim]

There are no taxes on home heating oil and off road diesel.

There's no highway use tax on off-road diesel but both fuel oil & off-road diesel have various excise and sales taxes applied depending on the locality. Some states (like Georgia) were suspending the sales tax on off-road diesel earlier this year to help farmers but the suspensions were not permanent. There are also lots of taxes & surcharges applied to "gross receipts" and other code words for "sales" that apply to the supplier...of course these are passed onto the consumer whether the politicians admit it or not and despite any fantasies to the contrary about how "windfall profits taxes" are sticking it to the man.

 

[Rattlesnake]

So. NH, my oil dealer $2.699 here today, yesterday it was $2.899. Pellets are around $300 a ton....if you can find them.

 

[nhdblfan]

"There are no taxes on home heating oil and off road diesel"


There are both Federal and state taxes in heating oil

 

[tinkabranc]

"There are no taxes on home heating oil and off road diesel"
There are both Federal and state taxes in heating oil

This includes pellet fuel