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Fuel Oil FAQ'sFrequently asked questions about Fuel Oil: Fuel Oil (also described as "heating oil" or "#2 oil") is a petroleum product used by many Americans to heat their homes. Fuel oil is a refined oil product which is delivered to the Northeast by tanker or barge, stored at terminals in major seaports, delivered by tractor-trailer to North Conway where we store it, and then delivered to homes and businesses from delivery trucks to customer-owned tanks. 1. Who Uses Fuel Oil? 8 million of America's 101 million homes use fuel oil for heating and heating hot water. In New Hampshire more than 59% of all homes use fuel oil as a heat source. 2. Where Does Fuel Oil Come From? Crude oil comes from domestic sources ( 40%) and imports from foreign countries ( 60%). Refineries then produce fuel oil as part of the "distillate fuel oil" product family, which includes heating oil, diesel fuel, kerosene, and jet fuel. These products are shipped throughout the United States by pipelines, barges, rail cars and tanker trucks to central storage terminals. Retailers, such as White Mountain Oil & Propane, then pick up the product and deliver it to local homes and businesses. 3. How Is Fuel Oil Priced? Generally, fuel oil is priced by the retailer based on the cost of the product at the terminal, plus transportation, plus the cost of operations, at a cents-per-gallon margin. Mark-up on fuel oils is not done on a percentage margin. 4. What Is Kerosene? Kerosene , or "K-1" in the Northeast, is simply a further refined blend of fuel oil. Any oil burning system can use kerosene but certain equipment (i.e.Monitor heaters) can not use fuel oil and must burn only kerosene. |
