Get Ready for Sky-High Heating Oil Costs This Winter

With the colder months quickly approaching, those who use oil to heat their homes could be in for a brutal winter.

The National Energy Director's Association has estimated that the public can be expected to pay $1,834 for home heating oil this season - an increase of about $400 from 2006, or 30%. It has been noted that this increase is due to supplies and a price spike in oil prices which are now just under $81 a barrel.

Another key factor in these skyrocketing prices is the weather. At this time, long-range forecasters are noting that this winter will be colder than last year. In addition, the government's Energy Information Administration (EIA) has noted that oil prices will be going up.

Although only eight percent of the country uses heating oil, the Northeast will be the hardest hit, as oil is used in about 80 percent of all residences. However, despite this soar in prices, there are alternatives to using oil for heat:

Natural Gas - Natural gas customers will pay half of what oil customers pay - $881 - this winter. The only downside is that natural gas systems are expensive and can cost upwards of thousands of dollars to convert. Therefore, the initial cost of switching from oil to gas may be high.

Wood Burning or Gas Stove - These cost roughly $1,000 to $3,000 before installation (wood not included). If you choose this option, also expect to see your homeowner's insurance rates go up.

Space Heater - These are relatively inexpensive and work well for smaller areas, but the safety issue is something to keep in mind. The Newair Electric Fireplace is a great substitute for a wood-burning fireplace and costs pennies to operate.