Fuel Oil Subsidies

Recently there has been increased press coverage regarding the steps some state and provincial governments are taking to ensure that people can afford to stay warm this winter. Take a look at what is happening in Canada in this article from The Canadian Press. If you want a dose of reality — take a look at this article from the The Associated Press. Talk about depressing.

I am not against short-term subsidies, but the money being discussed begs the question — “Isn’t there a better way?” The same families that require the help this winter will most likely require the same help next year when fuel oil prices are even higher. Have we really made in any progress? We may have bought ourselves a little time, but that is all.

Of course the time we buy this winter will not save us for next winter — all of the wonderful energy projects being discussed on the national scene — wind farms, new oil production, solar power are years from widespread realization. So what is the answer?

Basically, there are two things that can be done aside from turning down your thermostat:

Improve home energy efficiency — sixty percent of the nergy used in the home is in the heating system. Insulation, weather stripping, and programable thermostats are just a few of the ways to reduce the fuel requirement in the home. In those regions of the country that are facing a crisis, why not make these improvements a requirement of, or even better yet, part of any fuel subsidy.

Move to a cheaper fuel source — In hard hit rural and small towns, wood or pellet fired systems are a viable option. Now, take that $750 subsidy and apply that to buy-down the interest rate on a loan or even better yet, provide a government guaranteed low interest loan. Imagine what that would do for to make a new wood/pellet heating system affordable AND provide a long-term solution to the heating dilemma. This type of program has been available in Europe for quite some time, so why are we so slow in exploring them?