One of the most cited facts about natural gas is its low cost compared to heating oil, but some quick math actually shows otherwise. To get the energy equivalent to one gallon of heating oil, customers are actually buying $3.40 worth of natural gas.
Take a look at these numbers for a breakdown of the price of natural gas based on an annual use of 973 therms (equivalent to 700 gallons of heating oil):
1 gallon heating oil = 139,000 BTUs; 1 therm = 100,000 BTUs
1 gallon = 1.39 therms
Annual use of 973 therms of natural gas:
T&D Res Rate
Commodity
Total
$.085 x 973
$1.35 x 973
$827.05
$1313.55
$2380.60
$2380.60/973 therms = $2.45 per therm; $2.45 x 1.39 = $3.40
Data provided by MEMA
When you take these prices into account, it could take you more than a decade just to recover the cost of converting your home to natural gas.