Propane vs. Natural Gas

You'll need to get propane delivered and stored in a tank. Natural gas will need to already be run to the house or be available in the neighborhood you select. I wouldn't imagine many existing homes would give you the option to use one or the other. I also believe the gas jets on the heater,  might be different for each fuel type.

Natural Gas is cheap and we keep finding more of it.  It's actually a biproduct of oil production so the more oil we produce, the more natural gas we find.  We'd like to slow-down the natural gas production, but it doesn't work so the price just keeps getting crushed. 

All the forward curves on natural gas prices say it will remain cheap for the next 10-20 years. 

That said, I agree with the other poster who said you would have to be somewhere that already has an NG pipeline supply. 

Unfortunately, the house I'm buying gets propane even in the NG-rich state of TX.  We could probably poke the ground and get NG.  But the builders went with propane. 

Here's a really good website that breaks-down the difference between the two:

http://www.wisegeek.com/what-is-the-difference-between-propane-and-natural-gas.htm

If we can figure out how to use more Natural Gas, it would really help our economy long-term.  But we're using it about as much as is economic right now. But that's a different topic...

That is not what I have seen.... storage is topped off and there is no reason to keep producing it. Price has already turned back up and most stuff I see has is leveling off in the next 5 years at $6 mmbtu... which is 3 times the recent historic lows.

I knew you'd chime-in.  

I think I said that we're finding too much so we can't slow it down.  Agree, storage is a huge problem.  They're actually burning it off the top of the wells in the Bakken Shale because they have no pipes to feed it into.  They've been doing that in Kuwait and Iraq forever. 

Here's the latest data.  I didn't realize Residential got marked-up so high.

http://www.eia.gov/dnav/ng/ng_pri_sum_dcu_nus_m.htm

Ya, it used to always be a waste byproduct. And yes we do keep finding more. Compared to gasoline, the infrastructure still is not there. I mean obviously we have a lot, but now that we have a glut, we don't have ways to get rid of it. There most certainly a switch to NG for power production right now, but that takes a little time and pipelines built. There is simply no economical incentive to keep NG at rock bottom prices for a long term. Most see it leveling off to "reasonable" prices with supply certainly being stable long term. Our reserves are around 60 years right now, and like you said... they keep finding more. The only thing keeping more utilities getting off coal right now and switching to NG is long term prices and the ability to get pipelines.

Look for Geothermal first, NG second, ASHP third and Propane last.  

As for transportation fuel (since powerman went there!)   LNG is gaining speed.   Once HD trucks get in the game, it's hard to say what will happen with the price of NG.   If we truly have surplus production, the price could remain flat.  

http://www.environmentalleader.com/2012/12/07/first-phase-of-lng-trucking-corridor-complete/

That's why I included the link and mentioned only HD trucks.   There is now infrastructure *in place* (but not operational) to allow coast-to-coast operation of LNG-powered NG trucks.  That's HUGE.  Cost per mile of NG is currently 2/3 of the cost of diesel.  LNG is going to move out of the "home every night" trucks to the "over the road" trucks.  

I agree that for light vehicles, currently, Electric is a much better solution.  I'm sure Powerman likes to hear it, too! :^ ) 

LOL  I'm sure he can see his way past the "greenness" to accept coal (via electricity) as a transportation fuel. 

I can, but the Sierra Club can't. They have filed an Intent to Sue to shut us down.

But you can also use as "coal to methane" in the ground, and gasification, and syngas.... but again, the Sierra Club is opposed to anything from combustion, so so much for that.

I'll throw my two cents in. 

I live in the country and only have the choice between electric and propane.  Our stove, clothes dryer & boiler are propane.  Water heater is electric, but if I was able to, it would be propane as well.  Having propane gives me the chance to at least cook if the power is out. 

As far as pricing between NG and propane, I can't weigh in there, but we are on a contract & levelized payment program through the local service company/co-op and each July we enter a new contract.  Last year we were paying $260/month; this year it is $210/month.  The levelized payment is nice so we don't have to pay $600 - $800 for a fill.  The contract varies each year depending on what the service company was able to contract their purchase of propane for.   

Something to keep in mind is any gas appliance you buy is set up for natural gas and it has to be converted to propane.  You will either need to buy a propane tank or rent it from the propane dealer.  We own our propane tank. 

I own my 1000 gallon pig.  I prebuy in the summer time and shop between several propane companeys.  One year supplier A may be higher so I go to supplier B.  The following year A calls and ask what happened, I tell them and they lower the price.

I usally buy enough that I refill in late march or April, most of that carries me into the next winter.  So my heating bill now is already paid untill I buy again next summer.  I got my pig used from a train yard, you may want to check it out.  IT does give you some bargining power.

^ I've heard that that is the best way to go.  Buy your propane in the Spring or Summer when demand is low, thereby the cost is lower.  You just have to be able to drop a huge chunk of change at once to do it.  

NG is just not an option in some places because there is no infrastructure for it, which leaves propane or electric as the remaining options.  In FL we had electric heat (heat pump) it didn't get that cold for very long so it is a viable option there anything more and it would be prohibitively expensive.  However I prefer to cook on NG.  

Thanks

http://en.wikipedia.org/wiki/Air_source_heat_pumps