| BostonDotCom: | Peter Howe is here and ready to chat. Ask your questions now |
| Edso: | Q: Peter, any advice how to deal with automatic delivery policies? I always seem to get deliveries at the highest prices. |
| Peter_Howe: | Hi, Edso. Thanks for writing. How big a hassle would you find it to be to check the tank and check prices and try to play the market yourself? There's a little chance you could save money, although it would be a hassle. |
| Peter_Howe: | If you think by the way your dealer is deliberately ripping you off, that's a good complaint to bring to the Attorney General or state Consumer Affairs Division. |
| jessica: | Q: Peter, between gas and heating oil I and a lot of other people are looking at a pretty lean winter, money-wise. Do you think these prices will hurt other industries? |
| Peter_Howe: | Absolutely. We have a story in the Globe today about how economists think economic growth will drop from 3.4 to 3.1 percent. |
| Peter_Howe: | Spending all this money on gas and oil means less money for beer and cellphones and everything else. It's rough all over. |
| Robert: | Q: Peter, what will be the better bargain this year, gas or oil? |
| Peter_Howe: | Hi, Robert. I'm just a reporter, not an economist, but the Energy Department is warning that gas could be up 70 percent this winter. It's a little easier to find other supply routes for oil for New England than gas, so this could be one of those winters when oil is the better deal. |
| Peter_Howe: | But consider that mealy-mouthed, not a firm prediction. |
| heartboston: | Q: Last year I was living in a pooly-insulated apartment that was heated with natural gas forced hot air. This year, I'm in a well-insulated home of about the same size but I'll be heating with oil. What should I expect as far as price goes? Do you think |
| Peter_Howe: | Hi, HeartB. You have a lot of variables there. Was the apartment in an upper floor with neighbors down below subsidizing your heat? That can make a real difference. Based on the better insulation in your new home and the oil, it sounds possible you might save money this winter, but I would have to have some insulation specialists fully check out your places. |
| cory: | Q: My hunch is prices for insulation, storm windows, and other weatherization services will rise too. Are you seeing this? |
| Peter_Howe: | I haven't done a rigorous price check at Home Depot and other places, but it stands to reason that if the companies making those things are paying so much more to manufacture and ship them, net prices will go up. Also if demand soars for home insulation products, prices will tend to rise. |
| heartboston: | Q: I was on the first floor in the apartment so there weren't any lower neighbors helping to heat my place. But sounds good. Thanks. |
| Peter_Howe: | Let me know if you hear of caulk price gouging. We'll get the Spotlight team on that |
| Peter_Howe: | Thanks, HB. I hope you are enjoying your new home. Must be nice to not have people bomping around on the ceiling for a change. |
| Courters281: | Q: Hi Peter. I'm still working on paying off my energy bills from last winter. Is there a number i can call or a website i can visit to get help with my bills? |
| Peter_Howe: | Hi, Courters. I am sorry to hear about that. That must be rough. Good luck. A few ideas that come to mind are the Good Neighbor Energy Fund that's run through the Salvation Army, ABCD in Boston, which is www.bostonabcd.com, and calling Citizens Energy at 1-800-JOE-4-OIL. |
| Peter_Howe: | This might also sound surprising but I would call your local congressman's office. In my experience Mass. congressmen pay a lot of attention to constituent services and would hook you up with a program that could help. I wish you the best. |
| jessica: | Q: I have a long commute. I love my house and I love my job, but I wish they were closer together! Is it possible that the current crunch might encourage employers to allow more telecommuting? |
| Peter_Howe: | Hi, Jessica. That could sure make a lot of sense, although there often seem to be spikes in interest in telecommuting after an energy price shock or something like 9-11-01, and after a while people realize it's harder than they think to do their jobs without being in the office pretty regularly. But I would give your employer a hard figure on how much more you are paying and a plan for how you could telecommute. I hope they'd be empathetic. |
| sv550: | Q: I have a 1500 sq. ft. ranch with a fireplace in the LR. The fireplace is open right now, whats the best approach? Enclosure, built in? Will this help save on my heating costs? |
| Peter_Howe: | Hi, SV. That's a great question, and it's honestly worth having a mason look at it. In many cases a fireplace sends 80 percent of the BTUs in the wood up the chimney and can even suck heat out of the house. You are talking about a glass enclosure? That would have to be carefully installed by a pro to maximize heat output. |
| Peter_Howe: | If you really want to save on heating fuels with a fireplace, you should probably look at a super-efficient wood stove. |
| novaaztec: | Q: Can you give an idea of the cost benefit for changing from oil to natural gas heating? Specifically for a home with about 1100 sq.feet? |
| Peter_Howe: | Hi, Novaa. I think this is not the year to switch over from oil to gas. It's not clear you will save money this year, even if KeySpan or the gas company will give you a free boiler or hot water heater. I'd wait to 2006 and see where oil and gas are. |
| Peter_Howe: | and also, bear in mind a big aspect of how much money you save is whether KeySpan or whoever your gas utility is will give you superefficient appliances as an inducement to switch, install insulation and caulking, etc. That's a big part of determining the economic payoff. |
| Eva: | Q: I joined Mass Energy last year but it did not seem like I payed any less for oil. Would it have been smarter to try to lock in a price early, especially this year? |
| Peter_Howe: | Hi, Eva. Thanks for writing. I think lock-in is one of the hardest questions there is to answer. The consensus of experts I talk to is that right now is definitely not the right time to lock in; wait 2 or 3 more weeks to see how the markets settle out. In hindsight, yes, if you could have locked in at $1.75 or $2 in June, you'd indeed look brilliant. |
| Peter_Howe: | But then again, who knows what happens next week in Saudi Arabia, Norway, Venezuela, or wherever and what that does to oil prices. |
| jessica: | Q: one more question: I locked in at $2.04 a gallon for heating oil for this winter. I can't imagine my oil company can deliver at this price and not take a bath. Will we see companies raising even locked-in rates? |
| Peter_Howe: | That has happened in the past, and my colleague Bruce Mohl at the Globe has done some investigations. Typically the oil guys have had some sharp lawyer write in weasel words to say a locked price isn't a locked price if they don't want it to be, so you should scrutinize your contract. |
| Peter_Howe: | And the way they will avoid taking a bath on your $2.04 oil is by selling your neighbor $3.04 oil, by the way. |
| Peter_Howe: | Meanwhile, you get to do an end-zone gloat. |
| Sparky: | Q: Due to the increased prices, if someone who wouldn't usually qualify for assistance were to apply this year, would assistance be available for that person? |
| Peter_Howe: | Hi, Sparky. That is a good question. Most federal programs are tied to specific income levels relative to the poverty line. But not to sound like their PR guy, Citizens Energy will review needs on a case by case basis and if you aren't eligible because you are slightly over the income threshhold, sometimes they will still make assistance available if they have enough left over after serving lowest-income households. It's worth a shot. 1-800-JOE-4-OIL. |
| PaulRysher: | Q: What does this trend mean for the future??? Is there no relief in sight?? Or will it take a technology paradigm shift so alleviate the problem of high energy costs?? |
| Peter_Howe: | Hi, Paul. That is the $13 trillion question, give or take. It's fascinating to see even ChevronTexaco making the case that the era of cheap oil is over, and you probably know the argument about Hubbert's Peak, the geological theory that once we've extracted 50 percent of the world's oil, the cost for getting the next 50 percent will skyrocket. A lot of scientists think we are there already. |
| Peter_Howe: | It is hard to imagine there being relief in sight on petroleum products, but there is an interesting revolution brewing in electricity for home and transportation use, and that will be a big thing to watch in the 21st century. SUVs may not be the thing to drive in 2010. |
| macken7: | Q: The wife tells me that our oil outfit has an offer of #2.45 for the upcoming season. Should we jump or wait? What does your crystal ball perceive as reasonable course of action to minimize these costs? |
| Peter_Howe: | Hi, Macken. Give the wife my regards. That price sounds a little high, but if you think you can get a truly firm lock they won't try to wriggle out of, it could make sense to commit to buying, say, one-third or one-half of your winter fuel use at this price and see in 3 or 4 weeks where prices are then. |
| Peter_Howe: | Just don't come down to the Globe and smack me if the price is then $3.45. But it does seem like right now inventories and supplies are still volatile enough it makes sense to wait and see where things are in a few weeks. |
| Peter_Howe: | Also to do the last part ... best thing you could do to minimize costs probably is to spend your money on insulating the house. |
| Peter_Howe: | You can normally save a lot more money by reducing consumption than by trying to shop around for the sweetest deal on heating oil, which may only save you a few pennies a gallon. |
| Sparky: | Q: How much does it cost for a company to refine crude into useable heating fuel and/or gasoline? |
| Peter_Howe: | That is a good question, Sparky. The crude oil cost accounts for generally about half of the net retail cost of oil. Refining as a process generally is a smaller share of the net cost than transportation, taxes, and marketing, but it's at the refining stage where big markups are taken, too. |
| proudmilitarywife: | Q: Other than keeping the house cooler than usual (65 degrees), using the fireplace more, washing with cold water detergents, and putting the hard plastic on the windows any other suggestions on how to save on my Natural Gas bill this winter? |
| Peter_Howe: | here's a good web site with energy saving tips: cityofboston.gov/mayor/energy.asp |
| lou: | Q: I live in Florida, even here where the sun shines constantly there is very little use of solar power visible. Why is solar not being integrated on a large scale, even running water through passive solar heaters prior to arriving at the home water heater s |
| Peter_Howe: | Hi, Lou. Turn off your computer and get outside! It's a beautiful day! |
| rard78: | Q: Is the recent $3 + / gallon price run-up a U.S. spike only or is world-wide run-up. What % is related to refinery capacity vs the price per barrel of crude oil? |
| Peter_Howe: | No, worldwide. Gas is $7 a gallon in England now, and in Asia, as we reported earlier this week, people are actually driving less and buying fewer cars because the price is so nutty. |
| Peter_Howe: | My best sense is $3 is a spike, but it's part of a long-term upward trend, and we aren't going back to $1.25 a gallon unleaded anytime soon and probably not ever. |
| Peter_Howe: | And as I said above, half the retail price of gasoline is the price of crude, and a big part of the runup is scarcity and high demand triggering higher prices from refiners and distributors and retailers. You can call this either rapacious price gouging or the free market sending the right price incentives for companies to quickly restore Katrina-damaged supply, all depending on your political outlook. |
| finiteE: | Q: Do you think Cape Wind project will help lower heating bills in Cape Cod? If so, by how much? |
| Peter_Howe: | Hi, Jim G. Nice question. I feel that opining about Cape Wind is like an Osprey flying into a fast-moving rotor blade, so I will punt. |
| andy: | Q: My spouse likes the house warm. In the past we used a timer to lower the temp during the night, but have the heat go higher an hour before the alarm so the house is warm when we get up. My spouse thinks it uses more oil to "reheat" and that we are bette |
| Peter_Howe: | This is one of those very hard thermodynamics questions to answer. A lot depends on how cold you let the house get overnight. It may make sense to let the temp drop to, say, 56 or 58, but not all the way to 48; I would consult a knowledgeable professional. |
| erica: | Q: I'm a student worried about heating costs - my roommates and I are northeastern students - do we qualify for gov't assistance with heating (we have oil) |
| Peter_Howe: | Hi, Erica. Thanks for writing. I am sorry to hear of your plight. I'd talk to your NU financial aid office because I think this gets into a question of your family's income, not just your own, and also 1-800-JOE-4-OIL is a good place to go for help on this question. Good luck and go Huskies. |
| erica: | Q: I live in JP , and I'm trying to figure out my first ever oil heat contract, I've read lots of tips - but personally what do you think I should do - Cap price or Fixed price? If I do either what is a fair price? I heard the average in MA is $2.60 a gall |
| sunny: | Q: My supplier was charging $2.39 gal. for oil last week and its down to $2.29 this week. Can I expect it to drop again in the near future? |
| Peter_Howe: | Based on everything we now know, yes, but bear in mind no one can predict the next surprise that rattles the oil markets. All indications are production is coming back on line in the Gulf, countries around the world are steaming tankers to us, Canada is opening up its spigots, etc. etc. so right this second, prospects look favorable. But you are always just one hurricane or one coup away from more turmoil. |
| BostonDotCom: | hey chatters - this is your 10 minute warning. if you have any last minute questions for Peter send them in now |
| macken7: | Q: Is there a web site, where I can track Boston area home oil prices currently? Also,for the prior weeks and even prior season? |
| Peter_Howe: | indeed. www.state.ma.us/doer |
| Peter_Howe: | which is the state Division of Energy Resources. They post monthly and weekly surveys that are considered reliable. |
| bostonlawyer: | Q: Gasoline futures from the NYMEX are down to $1.79 for March delivery. Obviously taxes are added to this amount, but how much of the $1.79 is due to rigid environmental policies? |
| Peter_Howe: | Hi, Boston Lawyer, and I am sure you are a good lawyer, not one who writes loopholes into fixed price heating oil contracts! |
| Peter_Howe: | seriously, we have done stories in the Globe talking about how a source of cost in the system is the large number of boutique blends of gasoline required by various state and national environmental laws, which mean you can't sell the same gas you do in Vermont in Boston or California. |
| Peter_Howe: | President Bush's administration has temporarily waived some of those rules post-Katrina, but you could make the case that environmental policies are adding some amount of cost to the pump price. I'd be on thin ice specifying an estimate. |
| Sasha_G: | Q: Hi, Peter -- I was really stunned when I received my first balanced budget bill from NStar Gas for the season, and saw that it increased by approximately 25% from last year. Do you think that NStar is likely to ask for additional rate increases for home h |
| Peter_Howe: | Yeah, NSTar had a spike relating to collections of gas for this summer. They are not pre-gouging you for this winter, they assure us. There is some chance their fall price comes down or holds steady, but as I mentioned earlier, the US Energy Department is warning that natural gas prices could rise by as much as 70 percent this winter. |
| Peter_Howe: | And sorry, the NSTar issue, as explained to me, was they were undercollecting on the actual price of gas in the warm season and needed to raise the rate now to be made whole before they go into the winter season rate recalculation. |
| ptab: | Q: Hi Peter. I joined the chat late so I'm not sure if anyone asked this yet. But what's you're feeling about home oil prices? Are they expected to go even higher this winter? I'm wondering if I should lock in a rate. |
| Peter_Howe: | But it's a hard thing to be certain about. |
| erica: | Q: I have gas for my stove and to heat my water - should I set up a contract with a company or should I let my prices ride with the market since it's not for my heating |
| Peter_Howe: | Hi, Erica. I am bumfuzzled. You mean you heat your house with oil but use gas for the stove and hot water? So the question is on locking the price on the oil?? See above, which should answer that. |
| Peter_Howe: | Unless you are talking about propane, your gas rate will be set by the utility as regulated by the state Department of Telecommunications and Energy. They won't let you make a price deal unless you are a humongous industrial customer. |
| erica: | Q: how can I save this chat? it's very useful but I don't see an option to save this chat transcript |
| BostonDotCom: | Erica and others: Boston.com will make the chat transcript available to you later today on the Boston.com Business page. |
| Peter_Howe: | Hi, Chatters. Thank you very much for coming today and I hope this was interesting. Thanks for reading the Globe and Boston.com. And thanks to Boston.com business producer Melanie Nayer for her stellar management of the chat room technology. |
| BostonDotCom: | Thanks, everyone. Peter has left the building. We'll chat later. |
