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My Board is trying to figure out the cost effectiveness for converting from #2 oil to gas from ConEd. I know what we pay per gallon of oil and how much oil we use each year, but trying to (1) convert how much oil we use into how much gas we would need to maintain the energy usage, and (2) figure out the price per therm for gas. ConEd's website has tons of tariff numbers, but it's hard to make sense of what their price per therm is (rough estimate) for a brief cost analysis.
Anyone familiar with the gas rates? And any talk of how much the price of gas will probably go up in future years as demand will continue to go up with the new rules eliminating #6 and #4 oil?
Any help is much appreciated.
The cost effectiveness of converting from #2 to gas involves several factors including the cost to upgrade your systems internally and Con Ed's cost estimate to bring in the gas line to your building. Natural gas has been running at about half the price of oil for some time now. The price per therm for gas will vary with market conditions and you chosen supplier, which does not have to be ( and shouldn't be) Con Ed. My firm, Informa Energy, could do a simple pricing analysis for you based upon current rates. Depending on how quickly Con Ed can bring in the gas line, though, it may make economic sense to wait to convert. The natural gas market hit a ten-year low in April 2012 and has climbed steadily from that low ever since. The mild winter of 2012 and enhanced extraction techniques ("fracking") created a huge surplus of gas that drove the price down to those lows. While gas prices are still quite low generally speaking, the surplus is not predicted to remain at current levels due to factors such as: large users switching over from coal to gas & the unexpectedly hot summer increased demand for gas (which is used in generating electricity). Thus, many of our gas customers have opted to lock-in gas for multi-year terms to avoid the likely rise. However, be way of any firm wanting to help to you finance a conversion in exchange for locking-in for five years -- you could lose your conversion savings in the process.
The cost effectiveness of conversion depends on several factors, including the cost to upgrade building systems internally and the external cost Con Ed may charge to bring in the gas line to your location. Upon receiving your info, my firm, Informa Energy, could easily do the price comparison based upon current rates. natural gas has been running at about half the price of oil for some time now, so there are definitely savings to be has in that respect.
The natural gas market hit a ten-year low in April 2012, but has been recovering ever since due to switchovers by large users from coal to gas as well as the unexpectedly hot summer creating increased demand for gas (which is used in generating electricity). However, the prices are still quite favorable and many of our customers have been opting to lock-in for multi-year terms to avoid rising rates. However, be wary of any firm offering to finance your conversion in exchange for locking-in for five years or more, as the markets simply aren't predictable over such a long period. You could lose the savings you'd otherwise enjoy. If Con Ed can't bring gas in anytime soon and you can't afford the conversion costs, it may make sense to burn 2 oil and wait.
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The cost effectiveness of converting from #2 to gas involves several factors including the cost to upgrade your systems internally and Con Ed's cost estimate to bring in the gas line to your building. Natural gas has been running at about half the price of oil for some time now. The price per therm for gas will vary with market conditions and you chosen supplier, which does not have to be ( and shouldn't be) Con Ed. My firm, Informa Energy, could do a simple pricing analysis for you based upon current rates. Depending on how quickly Con Ed can bring in the gas line, though, it may make economic sense to wait to convert. The natural gas market hit a ten-year low in April 2012 and has climbed steadily from that low ever since. The mild winter of 2012 and enhanced extraction techniques ("fracking") created a huge surplus of gas that drove the price down to those lows. While gas prices are still quite low generally speaking, the surplus is not predicted to remain at current levels due to factors such as: large users switching over from coal to gas & the unexpectedly hot summer increased demand for gas (which is used in generating electricity). Thus, many of our gas customers have opted to lock-in gas for multi-year terms to avoid the likely rise. However, be way of any firm wanting to help to you finance a conversion in exchange for locking-in for five years -- you could lose your conversion savings in the process.
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Board Talk members who registered prior to March 9th, 2016 will need to reset their password.