HEATING OIL

'Heating oil', or 'oil heat', also known in the United States as 'No. 2 heating oil' and elsewhere as "'red diesel'", is a low viscosity, flammable liquid petroleum product used to fuel building furnaces or ("boilers"). It is commonly delivered by tank truck to residential, commercial and municipal buildings and stored in above-ground storage tanks ("ASTs") located in the basement,garage or outside adjacent to the building. It is sometimes stored in underground storage tanks (or "USTs"), but less often than ASTs. ASTs are used for smaller installations due to the lower cost factor. Heating oil is less commonly used as an industrial fuel or for power generation.
Heating oil is widely used in the US for home heating since it is the safest means of heating, and the most cost effective for automatic heating systems. Heating oil is often prefered over natural gas heat as the unit cost per BTU is less. Also, boiler and furnace manufacturers have perfected retention head oil burners and triple pass boilers that has increased oil heat efficiency to over 93%.
Heating oil is usually colored by addition of fuel dyes to distinguish it from highly taxed road-use diesel. Red dyes are usually used, resulting in its "red diesel" name in countries like United Kingdom. Solvent Yellow 124 is added as a "Euromarker" since 2002 in European Union.
Heating oil is very similar to diesel fuel, and both are classified as distillates. It consists of a mixture of petroleum-derived hydrocarbons in the 14- to 20-carbon atom range. That is, heating oil's chemical formula is usually either C₁₄H₃₀, C₁₅H₃₂, C₁₆H₃₄, C₁₇H₃₆, C₁₈H₃₈, C₁₉H₄₀, or C₂₀H₄₂. During oil distillation, it condenses at between 250 °C and 350 °C. Heating oil condenses at a lower temperature than the heavy (C20+) hydrocarbons such as petroleum jelly (also known by the well-known brand name Vaseline), bitumen, candle wax, and lubricating oil, which condense between 340 °C and 400 °C. But it condenses at a higher temperature than kerosene, which condenses between 160 °C and 250 °C.
For efficient burning, the oil is pressurized through a calibrated orifice; the atomized droplets mix with air and ignite, often with help from a high-voltage spark. Heating oil produces 138,500 BTU per gallon and weighs 7.2 pounds per imperial gallon (0.72 kg/l), which is about the same heat per unit mass as the somewhat less dense diesel fuel. Number 2 fuel oil has a flash point of 52 °C.
Leaks from tanks and piping are an environmental concern. Various federal and state regulations are in place regarding the proper transportation, storage and burning of heating oil, which is classified as a hazardous material (HazMat) by federal regulators.
Heating oil may be blended with biofuel to create a product similar to biodiesel known as "bioheat".

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Heating oil trade

See also

Heating oil trade

Heating oil accounts for about 25% of the yield of a barrel of crude oil, the second largest "cut" after gasoline (petrol). The heating oil futures contract trades in units of 42,000 U.S. gallons (1,000 barrels) and (for the USA) is based on delivery in the New York harbor. Options on futures, calendar spread options contracts, crack spread options contracts, and average price options contracts give market participants even greater flexibility in managing price risk.
The heating oil futures contract is also used to hedge diesel fuel and jet fuel, both of which trade in the cash market at an often stable premium to NYMEX Division New York Harbor heating oil futures.

See also

★ Hazardous material

★ Heating, ventilation and air-conditioning (HVAC)

★ New England Fuel Institute

★ Northeast Home Heating Oil Reserve