We have seen supply and demand influence pellet prices. We have also seen pellet prices influenced by oil. And of course, oil prices are influenced by any thing hat can be manufactured to redirect falling prices. You won't get price controls on oil because favored green fuel can't compete when oil is cheaper. So, now with this recent influx of natural gas in our area, can this offer any pressure to keeping oil down and that having an influence on keeping pellet prices down? Same goes for cord wood.
NG is cheap where I live, but not everyone has a line in the street yet. Still, it seemingly has no effect on the price of heating oil as the oil repair guy told my son he was better off converting to gas than fix or replace his oil burner. And that is what he did. Still burns wood too.
I was afraid that might be the case. We just had gas go by us, but we cannot connect because it is a high pressure steel line. Only those after the sub station and with the black plastic pipe can connect to the line. Those who do are predicted to cut their heating cost in half. That makes it competitive to pellets/wood.
I agree that gas is a big money saver, but for how long? I have the line in front of the house and will hook up if the oil furnace quits on us. But it may not with the way the wood's been used. I hate to spend $6k for the unit installed, and another $1k for the plumber to run the line from the foundation to the unit.
As far a pellet mfg is concerned, fuel prices are going to affect pellet price. takes a lot of juice to run those machines + plus dryers, coolers, baggers ect.
