Oil and Energy Feb 2014 - page 23

source of liquid fuels for heating and
power generation. And when bio-blended
at just 20 percent, this ultra-efficient fuel
actually burns cleaner than natural gas.
In fact, according to the “NYC Clean Heat”
program, a division of the NYC Mayor’s
Office, “ULS2 (ultra-low sulfur 2 oil with a
government-mandated blend at 2 percent),
has close to zero soot emissions, the lowest
of all conventional heating fuels”.
(3) U.S. Senator Ed Markey (MA)
recently released a House Natural Resources
Committee staff report on leaking pipeline
infrastructure and the $20 billion in profits
natural gas utilities made fromcharging U.S.
ratepayers for product that escaped into the
atmosphere. Utility companies agreed that
“lost” or “leaked” gas is a problem, and it
will require considerable investment to
resolve. The current “leaking” pipelines
should be repaired before investments in
new pipeline infrastructure are made, and
it should be paid for by the utilities alone,
not their ratepayers.
(4) “Lost” or “Fugitive” gas and its
impact on greenhouse gas (GHG) emis-
sions must also be considered. The U.S.
Environmental Protection Agency notes
that the 100-year warming influence of one
ton of methane (a byproduct of natural gas)
is 28 times greater than one ton of carbon
dioxide (a byproduct of heating oil), and
with a minimum confirmed 1.5 percent
“fugitive” gas leaks, natural gas is worse for
the environment than heating oil.
As most government regulators seem to
be flocking to natural gas due to its current
trading price, the fact, as demonstrated in
New York and the New England states,
is that natural gas is not reliable in cold
weather, and its price can spike to levels
greater than current heating oil and diesel
fuel costs. And all commodity pricing is
cyclical: For most of the last 20 years,
heating oil has been less expensive than
natural gas … and with the future expor-
tation of liquefied natural gas, the price
disparity will eventually narrow.
All that said, the home heating oil
and diesel providers in the Northeastern
United States are already working with
national and state policymakers on their
commitment to safe, affordable and envi-
ronmentally secure energy.
New York City has already embraced
the blending of biodiesel with ultra-low
sulfur diesel, a.k.a. Bioheat
®
, and pending
legislation may expand the use of Bioheat
®
statewide. Many of the New England states
have laws or regulations on the books or
under consideration to do the same. And
iLÀÕ>ÀÞÊÓä£{ÊU ÓÎ
American
Energy Coalition
Convert Your Thinking.
The American Energy Coalition supports
the independent companies that
provide Oilheat to American
consumers and
businesses. AEC
serves as the leading
voice for the Oilheat
industry against
the aggressive and
misleading attacks
by our competitors
and tells the truth
about natural gas.
Learn more about the AEC and get involved
at
.
United We Stand
Support AEC in the
Battle for our Industry
unlike the utility sector, no considerable
investment in this area will be required.
Moreover, the infrastructure necessary
to deliver today’s low-sulfur diesel and bio-
blended heating fuel already exists in your
local communities with over 4,100 heating
oil companies throughout the Northeastern
United States.
The home heating oil industry has
reacted accordingly, rolled up its sleeves and
is getting the job done. We work to serve
our heating oil customers with prompt and
efficient fuel supply and service, and to bail
out our competitors’ customers in “cold
weather” situations. But one must question
the business practice that requires a customer
to have a competitor’s fuel as a back-up
option because their “named-fuel,” natural
gas, is not reliable for heating purposes and/
or power generation in cold weather.
Michael C. Trunzo
President/CEO
New England Fuel Institute
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