In This Article
Subscribe to National Updates
Homeowners Hoard Oil Via Classifieds
July 18, 2008 08:04 AM
In preparation for high heating costs this winter, some homeowners are buying gallons of oil from classified-ad Web sites like Craigslist.
30-Second Summary
The sellers on these sites are consumers who have switched to alternative fuel sources to heat their homes, leaving them with surpluses of unused heating oil. Escalating oil prices and fears of future price hikes and oil shortages have created a significant secondary market for these surpluses in the form of homeowners with oil heat who are looking to stock up.
Energy experts anticipate higher-than-ever oil prices in the coming cold months. Debra Dodd of Consumer Energy said, “[Prices] are going to be higher. We tend to follow the gasoline price.”
Oil prices are not expected to drop significantly anytime soon. One popular theory, “peak oil,” suggests that oil prices are mounting due to shortages in the global supply.
As a result, many consumers have found alternate ways of heating their homes, including wood-pellet furnaces and geothermal systems.
Energy experts anticipate higher-than-ever oil prices in the coming cold months. Debra Dodd of Consumer Energy said, “[Prices] are going to be higher. We tend to follow the gasoline price.”
Oil prices are not expected to drop significantly anytime soon. One popular theory, “peak oil,” suggests that oil prices are mounting due to shortages in the global supply.
As a result, many consumers have found alternate ways of heating their homes, including wood-pellet furnaces and geothermal systems.
Headline Link: Homeowners buying oil online to prepare for winter
American homeowners are buying heating oil from each other via online classified Web sites. According to Reuters, “the deals are possible because many homeowners in the Northeast are switching from heating oil to cheaper natural gas or other alternative fuels, leaving them with tanks full of unused oil. And those still using heating oil are eager to snap it up at a discount as the oil market skyrockets.”
Source: Reuters
Background: The rising cost of oil
Heating costs are expected to rise this winter due to global shortages of oil. The most recent Michigan Energy Appraisal projections anticipate that, “the projected price for the coming year could be up as much as 19 percent over the prices seen (in) 2007–2008. A residential customer’s annual bill for 2007–2008 was about $1,113. For the 2008–2009 period, it could be (as high as) $1,324.”
Source: Macomb Daily
In March, findingDulcinea reported on “peak oil” and the overwhelming evidence that the world will soon confront oil shortages due to major depletion of global oil reserves.
Source: findingDulcinea
Opinion & Analysis: Other energy options
According to J.S. McDougall of Chelsea Green, energy prices are expected to soar this winter, causing major problems for low-income individuals. McDougall argues that the problem lies not in the cost of oil, but rather in the lack of supply. He proposes a clean, cheap source of energy derived from solar power.
Source: Chelsea Green
Related Topics: Desperate consumers getting creative
Consumers turning to new forms of heat
In response to the high cost of oil, many Northeasterners are seeking alternative means of heating their homes this winter. According to The Boston Globe, “As heating oil approaches $5 a gallon, consumers in the oil-reliant Northeast are looking at pellets, heat pumps, firewood and even geothermal systems to soften the blow of high oil prices—which have almost doubled in the past year and gone up nearly fivefold since 2003.”
Source: The Boston Globe
And some find new sources of oil
While some look for alternate forms of energy, others look for alternate sources of oil: an increasing number of people have stolen fryer grease from restaurants, which can then be converted into fuel for vehicles, for example.
Source: The New York Times
© 2010 Dulcinea Media, Inc.
