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	STEO Home Page Natural Gas Use in American Households Related Information		Heating Oil Use in American Households The price of residential heating oil has risen nearly 50 percent since 1999 (Figure 1), and the Short-Term Energy Outlook February 2001 (STEO) projects that consumers will continue to experience high prices for at least the next three quarters (Figure 2). However, the high prices will have less impact on the Nation, as a whole, than they would have had in earlier years. According to the Residential Energy Consumption Survey (RECS), the use of heating oil as the main heating fuel in American households has declined from 20 percent of households in 1980 to 9 percent in 1997. The 1997 RECS reported that households that used heating oil consumed an average of 730 gallons in 1997 (Figure 3). Those households paid an average of $714 for the year at a price of $0.98 per gallon. The STEO projects that the average price for heating oil will be $1.31 per gallon for 2001. If we apply the projected 2001 price to the 1997 level of consumption, we can estimate average annual expenditures at the higher price. To account for inflation, we convert 1997 and 2001 prices and expenditures to chained 1996 dollars. We find that average heating oil expenditures for 1997 (in 1996 dollars) were $701 and expenditures based on the projected 2001 price would be $876.
	If heating oil prices projected for 2001 were applied to households that used the fuel in 1997, annual expenditures (in chained dollars) would be 25% higher.		Figure 4. Heating Oil Expenditures per Household in 1997 (Based on 1997 and 2001 Prices) Sources: EIA, Residential Energy Consumption Survey 1997 and EIA, Short-Term Energy Outlook February 2001. Unlike the use of natural gas, the use of heating oil by American households is not widespread. Its use varies significantly by Census Region and the year that the housing unit was constructed. Census Region: Heating oil use was concentrated in the Northeast Census Region, with 36 percent of those households using the fuel in 1997, compared with only 3 percent for the rest of the United States. Type of Housing Unit: Average household heating oil consumption and expenditures were greatest in single-family housing units. Year Constructed: The oldest housing units were more likely to use heating oil, and when they did, consumed more on average. Household Income: Households with the highest income consumed the most heating oil on average.   Top Specific questions may be directed to: Stephanie.Battles@eia.doe.gov Stephanie J. Battles Survey Manager Phone: (202) 586-7237 Fax: (202) 586-0018 Alan Swenson alan.swenson@eia.doe.gov Phone: (202) 586-1129 Fax: (202) 586-0018 http://www.eia.doe.gov/emeu/consumptionbriefs/recs/heating_oil/heating_oil.html Release date:   2/22/2001 If you are having technical problems with this site, please contact the EIA Webmaster at wmaster@eia.doe.gov