EIA Administrator Sieminski says wood pellets represent a “significant opportunity” for consumers to save money
October 10, 2012 - The U.S. government released its annual assessment of prices and availability of heating fuels today and for the first time it included information on pellets and firewood. After gas and electricity, wood is the third most common heating fuel in America, but the annual Winter Fuels Outlook had never discussed it prior to the 2012-13 heating season.
The Winter Fuels Outlook is put out by the U.S. Energy Information Administration (EIA), an independent statistical and analytical agency within the Department of Energy. Reports published by the agency are the premier source of energy information in the country and are used to guide economic policy and educate the public.
During today’s press conference, EIA Administrator Adam Sieminski mentioned the “significant opportunity” for consumers to supplement their oil heat with wood pellets, as well as with electricity.
The inclusion of wood and pellets in the Winter Fuels Outlook came after over a year of discussions and meetings between the EIA and a coalition of wood and pellet groups. Senator Shaheen (D-NH) also raised the importance of pellets as an alternative to oil in New England with Administrator Sieminski.
According to the EIA, wood and pellets now produce more residential heat in the US than propane and nearly as much as oil. Wood produces 0.5 quadrillion Btu (quads) per year, propane 0.49 quads and oil 0.6.
EIA projects that average household expenditures for heating oil and natural gas will increase by 19 percent and 15 percent respectively over last heating season. The agency expects the country will experience colder temperatures compared to last year's mild winter, with oil and gas prices remaining virtually the same.
In terms of wood and pellets, the report said:
Wood consumption in homes has risen over the past 10 years, reversing a trend seen in the last two decades of the 20th century. In 2009, U.S. households consumed about 0.5 quadrillion Btu (quads) of wood. Household fuel oil consumption, by comparison, was only slightly higher at 0.6 quads. In homes across the United States, wood is most commonly used as a secondary source of heat and is second only to electricity as a supplemental heating fuel. Twenty percent of New England homes (1.1 million) used wood for space heating, water heating, or cooking in 2009 (EIA, Residential Energy Consumption Survey, 2009). This is nearly twice the national rate. Almost half of all rural households used wood in this area of the country. In contrast, only 12 percent of urban New England households used the fuel.
According to data previously published by the EIA, the average American household heating with wood consumes two cords of wood per year. This number includes homes that use wood or pellets as a primary, secondary or occasional heat source. The EIA also documents that consumption in rural areas is more than twice that of urban areas. The EIA estimates that 91% of homes that heat with wood use firewood, 8% use wood scrap and 6% use pellets.
Wood use also trends strongly with income level, according to EIA survey data, with households making $20,000 or less using more than twice the amount of wood as households making $120,000 or more.
“The EIA’s focus on wood and pellets is an important and timely step in the right direction,” said John Ackerly, President of the Alliance for Green Heat, a non-profit consumer organization based in the DC area. “If EIA can report on pellet prices along with oil and propane, consumers will be better equipped to make the best choices for them, which may be to use a local, renewable fuel,” Ackerly added.
For a full copy of the Winter Fuels Outlook: http://www.eia.gov/forecasts/steo/index.cfm
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