Fuel Oil Supply, Delivery and Boiler Service Brokerage
Like other energy commodities, fuel oil is volatile, and entering into a contract at the right time and under the right circumstances is critical to minimizing energy costs. Unlike natural gas and electricity, the delivery of fuel oil is not regulated, so choosing an energy delivery company must also be done in order to receive the commodity at the burner tip. Add boiler service to the equation, and the complexity of the transaction leads many fuel oil consumers to buy from the same supplier at the same time of year, year in and year out. While personal relationships between vendor and customer are sometimes paramount, and while there are a great number of quality oil delivery and service companies in the marketplace, it is Good Energy’s experience that adding competition to the process in a structured way can dramatically reduce energy costs while maintaining or increasing the level of service for the boiler.
Dual Fuel Boilers
Many boilers in US metropolitan areas are capable of burning fuel oil or natural gas. Because the commodity price for oil and natural gas do not always move in step, there are times when it is economically advantageous to switch from one fuel to the other. To calculate price advantage, one must convert gallons of fuel oil used to therms of gas with an equivalent BTU. So if 6,000 gallons of #2 fuel oil are used during a typical December, and the delivered cost of that fuel is $2.50 per gallon, we have our delivered cost for the month of $15,000.00. Multiply the 6,000 gallons by a conversion factor of 1.385 to arrive at 8,310 therms of natural gas required for the same period. If the delivered price of gas per therm is less than $1.83 plus tax, then it is cheaper to burn natural gas. The conversion factors for #4 and #6 oil are 1.45 and 1.49 respectively. Interruptible rates and flexible supply contracts permit switching from one fuel to another as conditions and prices warrant.
A Smarter Way to Buy Energy
Good Energy works hard to generate maximum competition on behalf of our customers, providing sophisticated energy buying strategies, historical vs. current price perspective and recommendations regarding products and services best suited for each business we serve. To learn more about Good Energy’s smarter way to buy energy, contact your Good Energy representative today.