Posted: February 6, 2017
U.S. levels of crude oil production have been soaring these past few years, and that bodes well for the future of oil prices. The U.S. Department of Energy forecasts that crude oil will average about $50 per barrel in 2017. That’s about 50% lower than in 2014!
As you may know, heating oil, like diesel fuel and gasoline, is a “finished” product derived from crude oil. That’s why heating oil prices are so closely tied to the price of crude oil. With winter now at the midway point, the price outlook remains very positive. But none of us knows for certain where prices will go next because unforeseen factors can always influence what happens in the energy markets.
Meanwhile, a recent Bloomberg News report showed that New England could see the highest natural gas prices in the world this season, thanks to a combination of the power grid’s reliance on natural gas and dependence on aging infrastructure that is strained to capacity. Many old pipelines are also leaking methane—a damaging greenhouse gas—into the atmosphere.
P. Gagnon & Son customers don’t have to worry. We maintain our own supply of heating oil (and propane) to ensure that we always have more than enough to keep you warm through even the coldest Maine and New Hampshire winters. We do our homework to make sure you always have fuel in your tank! We have an excellent model for forecasting fuel demand, and we’ve backed that up with supply contracts to ensure that we have access to fuel throughout the season.
Our track record for supply is one of our main competitive advantages. Every year, we hear about competitors who run out of fuel, but with P. Gagnon & Son, you’ll never have to worry about supply.