Biodiesel is expected to play a role in lower home heating oil prices this winter. The National Oilheat Research Allianace (NORA) cites a conference from last month where the U.S. Energy Information Administration (EIA) predicted the lower prices for consumers.
John Huber, President of [NORA], described the efforts of the heating oil industry to improve its product. He reported on the efforts of the Northeastern states to move to a low-sulfur heating oil product which improves efficiency and dramatically reduces emissions. He said that this step would also lead to long-term improvements in heating equipment as it is offered to consumers.
Additionally, Mr. Huber described the efforts of the Oilheating industry to move to ever-increasing blends of heating oil and renewable biodiesel. These steps will reduced greenhouse gas emissions and position the industry to be a long-term solution as a renewable fuel for millions of American customers.
NORA says that EIA predicts homeowners will spend, on average, 15 percent less, on average, than last year if long-term weather forecasts hold. Other factors cited for expected overall lower energy prices this winter include pipeline and other infrastructure developments in the U.S., more shale oil coming onto the market, and speculators trading crude oil for less.