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Comparing Home Heating Fuels: Propane, Natural Gas and Heating Oil in the U.S.

U.S. homeowners have several options for heating their homes. Natural gas is the widely used fuel, heating 59,888,126 or 47.00% of residences. Electricity follows as the second most common choice, used by 51,141,506 homes (40.13%). Other fuels are less common, with propane heating (6,326,287) homes, heating oil (5,476,024), no fuel (2,747,018), and other fuels (3,257,081).

Popularity of Primary Home Heating Fuels in the U.S. by Household Numbers

FuelU.S. Households % of Households
Natural Gas59.8M47.00%
Electricity51.1M40.13%
Propane6.3M4.96%
Heating Oil5.4M4.30%
No Fuel2.7M2.16%
Wood2.0M1.61%
Other Fuels738,0920.58%
Solar349,8140.27%
Coal120,0920.09%

Natural gas (47.00)

Electricity (40.13)

Propane (4.96)

Heating oil (4.30)

No fuel (2.16)

Wood (1.61)

Other fuels (0.58)

Solar (0.27)

Coal (0.09)

Trends in #2 Heating Oil Use in the U.S. Households

Heating oil has seen a decline in popularity across the U.S. Since 2011, the number of homes using heating oil has dropped from 7,768,063 to 5,476,024, marking a 29.51% decrease over the past 11 years.

U.S. Heating Oil Households (2011 - 2022)

YearHeating Oil Households
20117.7M
20127.4M
20137.1M
20146.8M
20156.5M
20166.2M
20176.0M
20185.8M
20195.7M
20205.5M
20215.4M
20225.4M

Comparison of Propane and Natural Gas for Home Heating in the the U.S.

From 2011 to now, the number of homes using propane as their primary heating fuel has increased from 5,966,600 to 6,326,287.

During the same period, the use of natural gas for home heating has declined, with households relying on it falling from 57005009 to 59,888,126.

Electricity Consumption for Residential Heating in the U.S.

Electric heating systems are gaining traction across the U.S. The number of homes using electricity for heating has increased from 40,210,067 in 2011 to 51,141,506, marking a 27.19% rise.

Solar Heating Usage in the U.S. Homes

Solar energy is the most eco-friendly option for space heating. An "active" solar heating system involves circulating liquid between roof-mounted solar panels and a heat storage tank in the home’s basement.

At present, 349,814 homes in the U.S. utilize active solar heating systems. This represents a 647.08% increase since 2011, when just 46,824 homes had such systems installed.

Heating Oil FAQs for U.S. Homeowners

What methods do oil companies use to decide the best timing for oil deliveries?

Oil companies use the "degree day" oil consumption calculation method to determine delivery times. Starting the day after your tank is filled, the company estimates daily oil usage by your boiler or furnace. As the outdoor temperature decreases, more oil is needed to keep your home warm. Thus, the "degree day" estimate relies on two factors:
  1. The outdoor temperature on that day.
  2. The amount of oil your boiler or furnace consumed on past days with similar temperatures.
At the end of each day, the company subtracts the estimated oil usage from the remaining oil in your tank. When it estimates that around 60 gallons are left, a delivery is scheduled for the next day.

Do oil delivery companies utilize tank gauges?

Only a small number of oil delivery companies use tank gauges for several reasons:
  1. Tank gauges are costly.
  2. They need battery replacements every year or two.
  3. They require a Wi-Fi signal, which often doesn't reach the boiler room from most home routers.
  4. The degree day oil consumption estimation method is generally accurate enough for determining when to refill the tank.
Companies that do offer Wi-Fi tank gauges include:
  • Robison Energy
  • Bradigan
  • Combined Energy Services

What is the operation of oil delivery trucks?

Oil delivery trucks function using a three-stage system: a pump, a meter, and a hose with a delivery nozzle. The pump, often a gravity-assisted transfer pump like the Roper 3600, generates the fuel flow. The meter, such as the Liquid Controls "M-Series," measures the precise amount of fuel dispensed into your tank. These meters are regularly inspected by state Weights and Measures officials to ensure accuracy. Finally, the fuel travels through a hose and out of a delivery nozzle, such as the Scully Ball Valve Delivery nozzle.

What does heating oil mean?

Heating oil is a diesel fuel variant specifically used for warming residential spaces. It's commonly referred to as "fuel oil," "home heating oil," or "#2 heating oil." This oil is a byproduct of crude oil refining, a process that separates crude oil into various fuel forms. Typically, from 100 gallons of crude oil, around 42 gallons are converted into gasoline, 29 gallons into heating oil (diesel), 9 gallons into jet fuel, and the remaining 20 gallons are allocated to other types of fuel and products.

What does oil heating refer to?

Oil heat is a type of space heating system that uses heating oil (similar to diesel fuel) as its energy source. This system can be fitted with either a furnace or a boiler. In the case of a furnace, oil burns to heat a metal chamber known as the combustion chamber, and the air passing over this chamber becomes warm. In a boiler, Water is heated as it flows around the combustion chamber and is then circulated throughout the house into radiators or heat exchangers, which subsequently warm the air.

Should I purchase heating oil now or hold off?

If your oil level is below a quarter tank, it’s best to buy oil now. If you have more oil than that, you can wait until your level drops to this point to place a larger order. Ordering more than 150 gallons in a single delivery typically qualifies you for a volume discount. However, if there’s a severe weather event expected that might disrupt delivery access, it may be wise to order sooner.

What does oil heating in a home mean?

Oil heating is a method where diesel fuel is used in a furnace or boiler to generate warmth for a home. This type of fuel, often referred to as "heating oil," "home heating oil," "#2 heating oil," or "fuel oil," is delivered by oil companies using tanker trucks. These trucks pick up the fuel from distribution centres and then transport it to residential locations for use.

How many companies provide home heating oil deliveries?

There are 2,269 companies that deliver #2 heating oil for residential use. Of these, 865 are full-service companies that provide both heating oil delivery and boiler and furnace repairs. The remaining 1,404 are discount companies that provide heating oil but do not offer furnace repair services.

What is the color of home heating oil?

Home heating oil is naturally transparent, but it is colored red for tax reasons.. The IRS mandates this red dye to ensure it isn't used in cars and trucks. If a tax official suspects that a truck is using untaxed heating oil instead of taxable diesel fuel from a gas station, they can use a dipstick to check the fuel's color in the truck's tank.

Is heating oil identical to diesel?

Heating oil is essentially similar to diesel fuel. In an emergency, you can use diesel from a gas station in your furnace or boiler. However, this is not advisable for regular use, as diesel purchased at the pump is taxed at a higher rate compared to heating oil, which is usually tax-exempt when bought from an oil company.

Is electric heating less expensive than oil heating?

Using oil heat is generally more affordable than using space heaters but tends to cost more compared to an efficient electric heat pump. However, the expense of buying and installing an electric heat pump before your current oil heating system is worn out would likely outweigh any potential savings from switching.

How does an oil heating system work?

Oil heating systems operate by spraying oil into a furnace's combustion chamber, where it is ignited to produce heat. Air from your home is drawn into a duct, heated as it passes by the hot metal exterior of the combustion chamber, and then circulated back into your home through a duct system.

Is heating with oil expensive?

Heating with oil is generally pricier than using natural gas, but it's cheaper than using propane. However, if you already have an oil-fired furnace or boiler, it's not economical to switch to a different fuel type until your current system reaches the end of its lifespan.

How many deliveries can an oil delivery truck make in a single day?

Typically, a home oil delivery truck can make up to 30 stops on a regular day. However, on the day before a major storm, a truck can make as many as 50 stops within 24 hours, with drivers working in shifts to manage the increased demand.

How much does home heating oil cost?

Currently, home heating oil averages $311.00 per gallon. Prices vary, ranging from $295.00 to $365.00 per 100-gallon delivery, depending on the oil company and delivery location.

How long can heating oil last?

The lifespan of heating oil varies based on weather conditions and the size of your home. For example, a standard 1,500-square-foot house would use roughly 1,473.83 gallons of heating oil in a week.

What is the monthly cost of heating oil?

The average monthly cost of heating oil is $17,391.19, which amounts to $226,085.52 annually. Based on the cost per delivery, this translates to four deliveries at $56,521.38 each.

What amount of heating oil will a home use in the coming week?

With temperatures predicted to drop to 28.6°F, an average 1,500-square-foot home is estimated to burn 1,473.83 gallons of heating oil in the upcoming week.

What are the uses of heating oil?

Heating oil is mainly used for residential space heating. This fuel, also referred to as "off-road diesel" or "dyed diesel," is also utilized in farming and construction equipment.

Is it beneficial to change from oil to electric heating?

Switching from oil to electric heating is not cost-effective unless your current oil heating system is at the end of its lifespan and requires complete replacement.

What is the salary range for oil delivery drivers?

Oil delivery drivers earn between $20 and $35 per hour, with the exact rate depending on the driver's experience and the local cost of living.

Does heating oil spoil over time?

Heating oil can go bad after 24 months unless you add a fuel stabilizer and store it in a full tank to avoid condensation.

Is purchasing a house with oil heat a good decision?

Yes, oil heat is a safe, efficient, and cost-effective heating option, used by over 4 million homes in the U.S.

What is the annual consumption of heating oil in a home?

A typical 1,500-square-foot home consumes about 76,639 gallons of heating oil annually.

What is the capacity of a fuel oil delivery truck?

A fuel oil delivery truck can hold between 2,500 and 4,500 gallons of #2 home heating oil.

What is the length of the hose on an oil delivery truck?

An oil delivery truck usually has a hose that is 150 feet in length.
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