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Energy Independence
It has become increasingly evident that our current level of dependence on fossil fuels is unhealthy for us in many ways. The volatility in oil prices puts us and our organizations at high risk as it makes it virtually impossible to plan for heating and transportation costs. In the last two years residential heating oil has varied more than $2/gallon in cost to the homeowner with the peak cost occurring in July 2008. Crude oil is increasing in value again as the world economy shows signs of stabilizing. This fluctuation pattern makes it quite clear that US consumption of fossil fuels is no longer the driving factor in their US pricing; we have no control over the cost of a commodity which has become central to our well-being. Our strong dependence on oil coupled with our lack of control over its price is troubling.
There are many ways we can reduce our dependence on foreign oil. Maine spent $1.4 billion on home heating oil last year. The vast majority of that money went to foreign nations. Changing the fuel we use to heat our homes is one way we can begin to reduce our personal dependence on foreign oil.
Propane as an Alternative
Lately, propane has been in the news. Many oil dealers are touting this as the clean alternative to oil as consumers become weary of the negative environmental and economic impacts of heating oil consumption. While propane may be a clean burning fuel, its source is anything but clean, and its price is just as volatile as the price of oil from which it is derived.
According to the US Energy Information Administration (eia.gov) “Propane is a nonrenewable fossil fuel, like the natural gas and oil it is produced from.” You see, propane is actually liquefied petroleum gas that is separated from crude oil at refineries and also from natural gas at processing plants. By switching to propane you have neither reduced our dependence on foreign fossil fuels, nor have you reduced the need for oil and gas drilling in sensitive areas such as The Gulf of Mexico.
The EIA’s website goes on to say that, “Although propane is produced from both crude oil refining and natural gas processing, its price is influenced mainly by the cost of crude oil. This relationship is because propane competes mostly with crude oil-based fuels.” If you are looking for a cheaper alternative to oil with less risk of volatile price swings, propane simply is not the answer. See our Propane vs. Pellets calculator to see just how much you could end up paying for propane.
