Since 2010 the world has held its breath as it monitored the spikes in oil prices. In America, especially for the colder months, it meant a marked increase in heating oil prices and that, in turn, meant an increase in how much residents end up paying for heating. Fast forward to 2015 and people are seeing something that has never seen before: manageable heating oil prices during the winter season. The Department of Energy Resources have confirmed that heating oil prices have tumbled to their lowest point in six years. What exactly does that mean for the average New Jersey homeowner? Read on to find out more about the good news about home heating oil prices.
Falling Oil Costs and Rising Economic Stability
Although the US isn’t solely dependent on oil, the international costs have been a major concern in how the economy operates. Lower heating oil prices translate into more savings for the average consumer. It’s estimated that a typical household using about 800 gallons per day during winter could save as much as a thousand dollars in heating costs. For a lot of small families, that could mean a lot of difference in their end-of-year balance sheets. The lowered heating oil prices benefit the middle and lower class families the most, since it frees up that income for rent, utilities and other bills.
Why Are Oil Prices Falling?
There are two reasons why oil prices (and by extension heating oil prices) are falling. Traditionally, the winter months in the northern hemisphere equate to a spike in global prices, because climates like North America and Northern Europe demand oil in order to make life livable. In order to deal with the massive demand, countries need to purchase this precious resource from producers. The demand is high and that drives up the cost. In August 2013, an amazing thing happened in the US: they started producing more oil than they imported. That meant that they had a lot more control over how the international prices buffeted the economy because they could now produce a majority of the oil that is needed. The result has been the slow lowering of heating oil prices and increased savings for consumers across the board.
What this Means for the Future
In the past, heating oil suppliers were affected due to the massive cost gaps of heating oil compared to natural gas. However, now with low heating oil prices, high efficiency, and far better emissions records, oil heat proves to be the best option. As it is right now, the future is bright for US consumers, because it means that local oil is replacing international sources and that will drive down costs since local resources would cost less to transport and store than international ones.
NJ Home Heating Oil Prices
Find out more about home heating oil on our FAQ page and contact us for more information. If you’re interested in finding out more about this issue, contact Point Bay Energy in Ocean County, NJ and hear what the suppliers have to say about it yourself. You expect the best from us, and we deliver nothing less!