Sunday, September 14, 2008

Natural Gas

I recently saw a bill board promoting natural gas as a home heating fuel.
The sign indicates that natural gas costs $0.15 less per litre than heating oil.
The problem I see with this as a measure of cost effectiveness is simple: we don't measure fuel effeciency in litres. If natural gas and oil don't produce the same amount of heat per litre, then cost per litre doesn't help us decide which is a better deal.
If we are to decide which fuel is a better deal, we need to compare cost per heating unit; perhaps a sign that tells us cost per BTU would better assist customers in making an informed decision about heating costs.
Another issue one must consider before making a decision is the upfront costs associated with each fuel type.

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