Heating Oil

Winter is coming and this is the time to purchase your heating oil. The
National Oceanographic and Atmospheric Administration is predicting
that the 2005-2006 winter will be for warmer-than-normal across much
of the central and western United States but forecasters are predicting
slightly colder temperatures than last season based on heating degree-
days [Heating degree days are calculated by the difference between 65
degrees Fahrenheit and the average of the high and low temperatures
of a particular heating. The calculation indicates household energy
consumption for space-heating].

In a report published last wednesday the Energy Information
Administration (EIA) estimates that heating bills for all fuel types will cost
Americans about 33% more this winter on average, assuming typical
weather. A colder-than-normal winter could lift energy prices nearly 50%.
The report also predicts continued high oil prices in 2006 due to slightly
colder temperatures and the continuing impact of hurricanes Katrina and
Rita on the nation's energy production.

Heating by natural gas: About three-quarters of Americans use
natural gas to heat their homes. The cost to heat by gas may rise by
47.6% in the case of typical weather to $1,096, and by more than two-
thirds to $1,242 in case of colder-than-expected weather. Even a warmer-
than-expected winter will see natural gas heating bills rise 29.8% to $964,
according to forecasts of this report.

Heating by Electricity: According to EIA, households that primarily
heat their homes with electricity can expect to pay about 5% more on
average compared to last year.