Heating oil

The Bakken Formation Helps Increase U.S. Proved Reserves of Oil

This Week In Petroleum for January 28, 2009 noted that North Dakota had the Nation’s third largest increase in proved reserves of crude oil in 2007, 70 million barrels (17 percent). Most of this increase came from development of the Bakken Formation. What is the Bakken Formation and why does it matter?

What is the Bakken Formation?    » read more »

Are Gasoline and Crude Oil Price Patterns Actually Diverging?

Recently, we at EIA have received many inquiries about why gasoline retail prices have been rising compared to the New York Mercantile Exchange’s (NYMEX’s) reported price of crude oil. The national media have also run several prominent stories on this divergence in prices. In particular, EIA’s reported average retail price of regular gasoline in the United States rose from $1.61 to $1.96 between December 29th and February 16th. During the same period, NYMEX’s most reported price for crude oil was volatile, but had no clear upward trend. So what’s going on?    » read more »

Groundhog Economics: Will Punxsutawney Phil Cost You Money?

We celebrate Groundhog Day in the U.S. (and Canada) on February 2nd. Tradition holds that if Punxsutawney Phil, the most famous groundhog, sees his shadow that day when peeking out of his burrow, there will be six more weeks of winter weather. Conversely, a cloudy day portends warmer weather for the rest of winter. Late winter weather, particularly in the Northeast (where about 80 percent of U.S. heating oil is consumed), can affect heating oil consumption and, consequently, expenditures for the residential customer.    » read more »

The Dance Between Crude Oil and Retail Gasoline Prices

February 4, 2009 -- The relationship between crude oil and retail gasoline prices is similar to dancers on the reality show “So You Think You Can Dance.” On that show, the contestants dance with a partner, but also do solo numbers. So, too, do crude oil and retail gasoline prices seemingly move in tandem at times, but at other times seem to be disconnected. What is the relationship between crude oil prices and retail gasoline prices? It’s more complicated than may appear on the surface.    » read more »

January 28, 2009 -- The rapid fall in crude oil proved reserves that began in 1970 has moderated over the past decade, and crude oil proved reserves actually rose by 345 million barrels (2 percent) in 2007, the latest year for which information is available. Proved reserves are the estimated quantity of crude oil that can be produced with reasonable certainty from known reservoirs under current economic and operating conditions.    » read more »

Governor Says Surplus Should Be Set Aside Solely for Heating Help

August 13, 2008 -- Connecticut Governor M. Jodi Rell today called on the General Assembly to take swift action on her proposals to provide energy relief to Connecticut families this winter during the August 22 special session. The Governor also re-emphasized that the Legislature should direct the entire state budget surplus to heating assistance programs.    » read more »

August 12, 2008 -- Connecticut Governor M. Jodi Rell today announced that the state is extending lines of credit to the hundreds of Connecticut fuel oil dealers facing soaring business costs this winter because of record fuel oil prices.

“The ripple of effect of high fuel prices is having a tremendous impact on everyone,” Governor Rell said. “It is likely that half of the 549 fuel oil dealers in Connecticut will need some assistance to buy their home heating oil from wholesalers. Most of these dealers are small companies with less than five trucks.”    » read more »

Monte Carlo and Forecasting Hurricanes

The gaming rooms at Monaco’s famous Monte Carlo Casino resonate with people trying their luck at the baccarat, poker, and craps tables. No one knows who will break the bank or who will go home broke. Although wise gamblers carefully consider the odds, or estimates of expected results, when placing their bets, they also understand there’s no such thing as a “sure thing” in a casino.    » read more »

Good, Better, and Best-A Comparison of Weekly, Monthly, and Annual Data

When buyers are confronted with a major purchase, they often weigh their options by considering whether to buy a “good,” “better,” or “best” product. All three have advantages and disadvantages. The same holds true when using Energy Information Administration (EIA) petroleum supply data because analysts have the option of using weekly, monthly, or annual data, depending on their needs.

As highlighted in the recently published article Accuracy of Petroleum Supply Data, oil data collected by the EIA showed an improvement in the accuracy of the 2006 data from initial estimates (weekly), to interim values (monthly), to final values (annual).    » read more »

Memorial Day Gasoline Prices

Despite cool weather along the East Coast over the past several weeks, Memorial Day weekend, the unofficial start to the summer driving season is upon us. Some may interpret recent increases in gasoline prices as yet another manifestation of a long-standing tendency for gasoline prices to rise dramatically in the days before the holiday weekend.

Memorial Day gas prices: DOE chart    » read more »

Going the Way of the Typewriter?

A generation is growing up in the United States with no idea what a typewriter is! Once an important part of the work place, typewriters are almost impossible to find these days. Will the same be said about home heating oil tanks, outside limited areas, several generations from now?

Home heating chart    » read more »

April 16, 2008 -- If winter is the “Most Wonderful Time of the Year” as the popular song implies, it may not be too much of a surprise that gasoline consumers find the spring and summer anything but wonderful, when it comes to prices. This year’s upcoming spring and summer are expected to see retail gasoline prices rise even further from current high levels.

Seasonal increases in gasoline demand    » read more »

Heating Fuels Prices At Record Levels

With crude oil prices over $100 per barrel and cold weather in many parts of the country driving up demand, heating fuel prices have been setting new record highs. With residential prices from the beginning of winter to mid-March averaging $3.28 per gallon for heating oil and $2.46 per gallon for propane, and this week’s average heating oil price above $3.85, prices for the winter as a whole are likely to set a new nominal record.    » read more »

United States Senate Health, Education, Labor and Pensions Subcommittee Hearing

March 5, 2008 -- (As Prepared for Delivery)

I commend Chairman Dodd for holding this hearing. It’s an incredibly important issue for millions of Americans struggling to keep warm and pay their bills this winter.

With energy prices rising across the board, countless families can’t afford to pay for heat, particularly when the economy is getting weaker every day.    » read more »

Second Grant Available to Those in Crisis

February 11, 2008 -- New York Governor Eliot Spitzer today announced that additional emergency home heating assistance is being made available to New York’s most vulnerable residents, in response to rising energy costs.    » read more »