Oil Heat vs Natural Gas

Heating Your Home 

As the summer comes to an end and we head into fall it is inevitable that the home heating season is not far behind. We are sure to start hearing from the natural gas distributors on the benefits of gas heat. Clean, efficient, and without the threat of artificial oil shortages certainly, for many homeowners this is the fuel of choice. But there is another side of the heating equation and that is oil heat. To get a perspective of the benefits of oil heat, I recently sat with a good friend and the owner of Munhall Energy Company in Watertown, Bob Manzelli. Bob’s company has been providing my family and me with our heating oil for over 50 years from my dad’s home on Webster Street in Watertown to my current home on Selwyn Road in Belmont. Here are Bob’s thoughts on heating a home. 

Q: Bob, your family has been in the home heating business for over 50 years. Tell us a little bit about your company. How was it started and how has it developed to where it is today?

A: I worked with my dad in his company, Manzelli Oil since 1960. In 1970, I had the opportunity to buy another small Watertown company, Munhall Fuel from George Munhall. At a later date, we combined the companies and we’ve continued to grow our business and serve our client under our current name of Munhall Energy Company. My son Michael is carrying on the business along with our capable office staff and our team of certified technicians and an efficient delivery team. 

Q: We hear a lot about fuel efficiency. How efficient is oil heat compared to gas heat and what does it mean to the homeowner who is unfamiliar with efficiency ratings?

A: The older oil heating equipment was inefficient. However, the technology has changed significantly and oil heating burners are actually as efficient and in many cases more efficient than gas systems. Newer oil heating equipment now operates in excess of 86 percent efficiency which again, is equal to or more efficient than many gas heating systems. 

Q: The natural gas distributors have done a great job of explaining the unlimited supply of natural gas and the fear of oil shortages. How concerned should those with oil heat be of these shortages? 

A: There is no question that natural gas is plentiful. However, the same is true for oil supplies. It is more a question of distribution. Keep in mind that as winter arrives, if there is an interruption or break in a gas line, it can affect whole neighborhoods. We have never had a disruption of oil deliveries, even during the oil crisis of the 1970s.

Q: Clean and efficient! We hear it over and over. Any thought on this? 

A: Our new boilers have been perfected to a degree that they burn as cleanly and in many cases more efficiently than gas heat.

Q: From time to time, the gas distributors offer incentives to convert from oil to gas heat and these offers include everything from free heating systems to oil tank removal. You are in the oil business so you obviously have a vested interest in consumers remaining with oil heat. What would you say are the advantages to remaining with oil heat? 

A: There are two important points here. When you convert from oil heat to gas, you need to reline the chimney in most cases. Additionally, there are conversion costs which include electrical and plumbing expenses. By the time you are done, the cost of a “free” boiler can cost $5,000 or more. I would recommend that anyone considering a conversion read the fine print. In some cases it makes sense, but it is not an obvious choice. Many times it is more cost effective to remain with oil heat with updated equipment at a comparable cost. 

Q: In addition to efficiency, cleanliness, and supply, cost is an important factor when considering the fuel of choice. Have there been any studies done that give a side by side comparison or is there any other way for a homeowner to compare the cost of gas versus the cost of oil for heating the same home?

A: Yes. Today, oil heat is more expensive than gas. However, comparing cost over the past 10-11 years, oil heat has had a distinct price advantage for ninw of those years. As markets change and fluctuate, we expect oil to be competitive with other forms of energy including gas heat.

Q: Bob, do you have any final thoughts on oil heat other than praying for a cold winter?

A: There are two things that immediately come to my mind. First are the safety concerns. Gas is immediately combustible from the time it leaves the ground to the time it enters your home up to the point of use. Oil has an extremely good safety record. Also, in times of emergencies, it is nice to know you have someone you can call. If you have oil heat, you call your local oil company from your community.  Their response to you is almost immediate. When there is a gas emergency, you will have to consider how quickly your call will get a response. 

I want to thank Bob for his time in answering my questions and I welcome your comments here. If you have any questions for Bob, his son Michael or any of his exceptional staff you can reach them at: MunhallFuel@comcast.net 

If there are any other topics related to the housing market or real estate in general, please let me know and I will try to address them in a timely manner.

Mike DelRose

RE/MAX Leading Edge