Benefits of Converting Heating Systems from Oil to Natural Gas

Led by John Salib and Paul Salib, Castellan Real Estate Partners is a firm that oversees debt and equity real estate investments of more than $1 billion. With a portfolio of properties in New York, Castellan Real Estate Partners has always put a premium on improving energy efficiency ratios. Sixty-four percent of the firm’s properties under management are heated with natural gas, which has been proven as an effective method of reducing fuel costs.

Natural gas has replaced oil as the main source of energy in the heating systems of apartment buildings and houses in the United States. In terms of heating expenses, homes that have shifted to natural gas have experienced a reduction of up to 60 percent, according to a study conducted by the U.S. Department of Energy. Even in more expensive urban areas like New York City where oil is relatively cheap, the cost per unit of heat using natural gas is still 25 percent lower.

In addition to economic benefits, the maintenance and logistics of using a natural gas distribution system are more manageable and efficient than oil, which often requires careful scheduling and tracking of deliveries. In the case of emergencies, natural gas distribution systems are more reliable than oil deliveries. Compared to oil, a natural gas system does not produce enough particles to cause clogging or mechanics problems for heating units. Last, according to the U.S. Energy Information Administration, the use of natural gas reduces high polluting gas emissions by up to 27 percent. In comparison, 1 percent of NYC buildings that use fuel oil contribute more pollution than that coming from all the city’s vehicles.