In case you missed it among all the other news, oil process have hit a new all time high. The big drop in interest rates prompted folks to think that the US economy will boom. A booming economy uses more oil so the price of oil jumped up.
Sure, we all know that means the price of gasoline is headed up again. The problem for people who pay the bill for home heating this winter is that the price of Heating Oil is jumping up too. The folks who heat with oil are not the only ones who will feel the pain.
The price of oil also drives the market price for propane upward with it. As you can see from the two graphs show both fuels are hitting new highs. I shamelessly copied these graphs from the Oilnergy.com web site. I use the oilnergy.com graphs to convince folks that energy prices are going up and action is needed now to prevent busted budgets this winter.
The prices shown on the graphs are not the delivered to your house prices. They are the price that investors are paying for energy futures on the New York Mercantile Exchange. The price you pay has dealer costs, transportation costs and taxes add in to boost it up to a budget busting level.
The more you can do to save energy before cold weather arrives the better off you will be when sticker shock sets in this winter. Watch the price you are actually paying for heating oil or propane. The prices are likely to go so high that you can save money by switching to electric space heaters to reduce the amount of fuel you burn.
Normally electricity is too expensive to use as a home heating source but this winter may be different. I recommend that you keep you eye out for a sale on electric space heaters and have one ready for each room that you need to heat. To determine when to switch over from fuel fired heat to electric look at the chart in my article: WHEN SHOULD I SWITCH FROM PROPANE TO ELECTRIC HEAT?
If you heat your home with natural gas, you are using the lowest cost fuel that is available. If the price of heating oil and propane stays up some folks will want to burn coal to save money. By that, I mean more coal will be burned at the utility electric power generating plants. If folks start installing coal burning stoves to heat homes, like we did in the past air, quality will suffer.
Propane and heating oil tend to be the fuels of choice in rural areas. The higher prices of those cleaner fuels will push more folks to burn wood. That means more smoke and more house fires.
High oil prices cause many serious problems. As a nation, we need to work toward energy independence.
Click here for a free money saving report written by the Energy Boomer titled HOW SAVE MONEY ON YOUR NEXT HEATING BILL