Threats & Opportunities for the Heating Oil Industry in the Northeast
The threats to the heating oil industry are real, but the good news is there are also some very real opportunities that can protect our future.
“The heating oil industry needs an ambitious plan of its own before it’s electrified out of business.” Patrick Woodcock, Massachusetts Executive Office of Energy & Environmental Affairs
Threats to the Heating Oil Industry
- Existing laws in all of the key Northeast heating oil states require government officials to significantly reduce greenhouse gas emissions by at least 80% by 2050 to stop climate change.
- Government officials have targeted fossil fuels used in transportation, and for heating homes and businesses as a way to reduce carbon emissions.
- Governors, state lawmakers, and environmental advocates are pushing for electric generation from renewable sources, and widespread conversion of homes using heating oil to electric heat pumps. Senator Michael Barrett of Massachusetts said heating oil “must go away.”
- State building code officials and local and town governments are advocating for new rules that ban the installation of new fossil fuel equipment in homes and commercial buildings.
- Customer conversions to natural gas heating systems remain a formidable threat to the heating oil industry.
Bioheat® Fuel: Opportunities Existing for the Industry
- The heating oil industry does have a plan. In accordance with the Providence Resolution of 2019, the industry has pledged to reach net-zero carbon emissions by 2050 through accelerated use of higher blends of Bioheat® fuel.
- Widespread use of Bioheat® fuel by heating oil customers demonstrates the industry’s commitment to be a partner in climate change activities.
- Bioheat® fuel allows retailers significant marketing opportunities to rebrand their companies by offering a clean, renewable fuel that signifies environmental stewardship.
- Bioheat® fuel provides heating oil retailers and their customer service and sales representatives a strong environmental and efficiency message to ward off conversions to natural gas and electric heat pumps.
- Bioheat® fuel will keep retailers in business for years to come and can even expand their existing customer base.