The end of cheap oil 2008

By Loren Davis

In the June 2004 issue of National Geographic Magazine, the cover story was entitled, The End of Cheap Oil." Much of what was predicted in that article has become reality sooner rather than later. In the past century, the United States had been consuming much of the worlds production of cheap oil with a fraction of the population. Now, with emerging economies in higher populated countries, we find ourselves facing the increased costs of oil and all the products derived from it.At this writing, the most recent estimate is that consumers in New England will be paying about $4.89 a gallon for heating oil this winter. This represents about $600 more per household compared to last year. Propane is going to be in the $3 range depending upon the number of gallons consumed. Some companies are beginning to resume guaranteed caps or lock-in pricing as the summer goes on. Homeowners and renters may want to look into price guarantees with their fuel suppliers. Those readers in the market for a home should request records of utility costs for past winters.What are some alternatives for home buyers and owners to cope with the increasing costs of heat? If you are a buyer, you may want to purchase a newer, energy-efficient home or an older house that has been upgraded.There are two areas of consideration in any home or condo and, each should be considered: Heating sourcesSummer is the time to consider maintenance or upgrades to your heating system. Technicians will be far too busy in the fall and early winter to schedule work. The place to begin is to make sure that your current heating system is operating at its best. Oil burners in particular require regular tune-ups just like your car to get the most from each gallon of fuel. In hot-air systems, make sure that the air filters are replaced and ducts are clear. Chimney flues need to be cleaned of creosote. Some heating alternatives include: Woodstoves. There is no fuel like an old fuel, the saying goes. You may find it economical to replace your 25-year-old stove for a new more efficient model. Older inefficient stoves can waste 20 percent or more of your firewood. Good luck on finding seasoned firewood! Buy green wood now, so it will have time to dry before the winter. Wood pellet stoves. Ive checked with local dealers, and the sales of wood pellet stoves has zoomed in recent months. Wood pellets may also be difficult to find.High-efficiency heaters. Monitor, Rinnai, Toyotomi and other brands of wall-mounted heaters have been replacing electric heat for years. The key is that they use outside air for combustion rather sucking already heated air from inside your house or condo. Various models burn propane or kerosene. Passive solar heat. Getting some help heating your home from the sun may be as simple as having some pine and other coniferous trees removed from the south side of the building. Leave the deciduous trees for shade in the summer. You might consider adding energy-efficient windows on the south side if youre in a position to take advantage of sunny days in the winter. Preventing heat lossTalk to the experts and they will tell you that much heat is lost from leaky doors and windows. Summer is a great time to calk around windows and seal up those leaks. Weather seals at the bottom of doors help reduce the loss of heat in a building. If you are a home buyer or home owner, here are some areas to consider in preventing heat loss: Attic insulation. Get into your attic on a cool morning and check to see how many inches of insulation you have now. Check with a building supply store for upgrading to R24 or higher. Older homes can have insulation added when vinyl siding is installed, or you may be able to have insulation blown in. Consider insulating your basement walls and/or basement ceiling. Check the bulkhead for heat loss. Pipe and duct insulation. Heat is lost as soon as it leaves the boiler, water heater or furnace. Be sure to insulate pipes and ducts to get the heat to the area where you want it. Window replacement Now may be the time to replace the old energy-wasting windows. There are still homes that have only single-pane windows without storm windows. At the very least install plastic storm windows in the fall to provide air space next to the single-pane windows. Programmable thermostats. Install thermostats that can be programmed to adjust the temperatures when you are away from home or asleep. Doing this and closing off unused rooms can save 20 percent of your fuel costs. Window curtains, shades and blankets There are many types of heavy drapes and window quilts to cover windows and sliding doors in the winter. The addition of these will pay for themselves in the first few years.In summary, now is the time to do a thorough review of heat production and conservation in your home or condo. There is almost no dwelling that cant benefit from some improvements, and those dollars spent right now will save you bigger dollars in the coming winters. Oil prices arent likely to go down substantially in the future so home buyers should be extra cautious in choosing a residence. Find out what fuel consumption was in gallons for past years and have your home inspector check for heating and insulation problem areas. Loren C. Davis is owner and founder of Buyer Representatives of Northern New England. He has been a member of the White Mountain Board of Realtors for 16 years and has practiced Exclusive Buyer Agency since 1997. He holds a Master of Science in Education and is past president of the New Hampshire Association of Exclusive Buyer Agents and has earned the coveted Accredited Buyer Representative (ABR), Graduate Realtors Institute (GRI), and the Graduate Buyer Representative (GBR) designations. He may be reached by phone at (603) 447-1329 or (866) 688-1329. His Web address is www.BuyerRepNNE.com.