Also referred to as fuel oil, the heating oil is a low-viscosity petroleum product that is widely used in the US for heating residential homes. This product is refined from crude oil and it can be efficiently heated up in order to warm up the house. Somewhat similar to diesel fuel, the heating oil has higher contents of sulfur and it also comes in a bright red color. The reason why the color of heating oil is red is to prevent it from using it as diesel fuel for transportation purposes, as this operation would be taxed – by dying it red, the heating oil automatically becomes tax-exempt.
The heating oil can deliver more than 138,000 British Thermal Units of energy per gallon, and this is precisely the reason why millions of Americans have chosen to embed fuel oil in the heating systems of their homes, especially in the North-Eastern states of the country.
Throughout the years, the cost of heating oil has gone up and down given the fact that it depends on the price of crude oil. As a matter of fact, up to 70% of the final cost of the fuel oil is dependent on the cost of crude oil, in addition to the costs associated with transportation and marketing. The remaining few percent are responsible for refining-related fees.
As you may already know, the crude oil is controlled by the OPEC nations and its price tends to go up during the cold season. By filling their tanks with heating oil during fall or summer, homeowners can save a lot of money on their heating costs throughout the entire winter. If you have decided to switch to this type of heating system, then you should know that the oil is usually delivered via tanker trucks and stored in special oil tanks that are either under or above the ground. Generally speaking, an average house requires up to 1300 gallons of heating oil to make it through the winter. Interested in learning more about heating oil? Contact one of our specialists today!