summer 2015

PERSONALLY SPEAKINGPERSONALLY SPEAKING

Dear Friends,

As a heating fuel company, we’re supposed to love the cold weather, but this past winter was insane! February was one of the coldest on record and we had to shovel out from a historic amount of snow — more than 100 inches!

This massive amount of snow, coupled with extreme temperatures that fell below zero at times, created major challenges for everyone’s personal comfort. Throughout this diffi cult time, our service and delivery teams worked tirelessly to take care of our customers.

The one silver lining in all of this turned out to be heating oil prices, which fell sharply in the fall and early winter, reaching their lowest point in six years. (Please read pages 2–3 to learn how the oil markets are repeating history from 30 years ago.)

Meanwhile, heading into last winter, natural gas prices reached their most expensive point in more than a decade because of concerns that pipelines might

not be able to distribute enough fuel. The Wall Street Journal reported that in some areas this past winter, natural gas was

actually more expensive for residential customers!

These emerging trends mean that switching from oil to natural gas now could very well turn out to be a decision you will regret. In fact, the best thing to do is to stick with safe, dependable oil heat — and with us. We think this is a combination that can’t be beat.

Warmly,

Ken WilliamsPresident

take away your tank worries

Winter is tough on tanks. That’s why many of our customers have enrolled in our TankGuard program.

For only $50 per year — less than 14¢ a day — you can avoid the cost of replacing your tank. TankGuard eliminates worries about aboveground oil storage tanks, provides protection against corrosion and gives you a $2,000 tank replacement warranty.

Interested? Please visit us at ScottWilliamsOil.com/tankprotection to learn more about this program. You can also call, email us or return the enclosed card for additional details.

new! paperless billing and EFTMany of you have been asking about

paperless billing, a convenience you enjoy from other companies. Now you can choose e-billing from Scott Williams, too.

There are so many great reasons to switch to paperless statements: It eliminates the hassle of mailing payments and the expense of stamps, it’s easy to see and organize bills and you can view and pay them anytime online. It also saves paper. We can even set up your

account so you can make payments automati-cally through your credit or debit card — it’s much easier to pay bills that way!

To sign up for paperless billing or to start making payments via credit or debit card, just go to your online account. If you would like more information about these new services, call, email us or return the enclosed card.

silver linings in a dark winter

Switch to paperless billing by July 1 and we will enter you into a drawing for a $50 fuel credit!

© Copyright 2015 Warm Thoughts Communications, Inc. Reproduced with permission of Warm Thoughts Communications.

Heating with Oil in 1985 and 2015

How will heating oil evolve?

History has an eerie way of repeating itself. Just take a look at what was happening in the oil

markets back in 1985 and compare it to today.

Source: U.S. Energy Information Administration and International Energy Statistics

HERE AND NOW: Which Fuel Makes You Feel Better?

THEN NOW

60%67%

THEN NOW Production Revs Up Again

More and more, people who declined to convert their heating systems from oil to natural gas are looking pretty smart. Consider this:

➥�The combination of a huge surge in oil produced in the United States, weak global demand and a strong dollar have made heating oil prices plunge to their lowest level since 2009.

➥�During the winter of 2013 –14, natural gas prices spiked

because pipelines could not distribute enough fuel. At one point, the spot price of natural gas was actually higher than the equivalent retail price of heating oil.

➥�During the winter of 2014 –15, natural gas spot prices rose at the very time oil prices were falling.

Supply concerns plague natural gasLimitations on the way that natural gas is distributed continue

to create supply challenges — and price concerns. Heading into the winter of 2014 –15, natural gas prices had reached their most expensive point in more than a decade because of concerns that pipelines might not be able to distribute enough fuel.*

Other factors raising concerns about the direction of natural gas prices include:

➥�Power plants are converting from coal to gas faster than expected, causing a significant rise in demand.

➥�High demand for gas overseas. U.S. suppliers have been rushing to export our gas to markets in Europe and Asia, where they can charge more money. A decrease in domestic supply usually results in higher prices.

This all just goes to show that these days, oil heat customers like you have a lot less to worry about — and many more reasons to smile.

The cleanest, safest and most reliable fuel money can buy. That’s what you get with oil heat. And things will only get better!

In the years ahead:

➤��All heating oil dealers will be delivering fuel with ultra-low sulfur levels. This opens the door for dealers to sell super-efficient heating systems (exceeding 95% AFUE), which previously had only been available outside the United States.

➤��Most heating oil will contain 20% biodiesel. This renewable biofuel blend produces fewer carbon emissions than natural gas, which has now become more of a carbon producer due to the growing use of liquefied natural gas. Meanwhile, methane leaks from natural gas continue to remain an environ-mental concern.

➤��Most people will have oil heat systems that allow their oil dealer to remotely monitor the status of the equipment at all times and get a warning sign for potential problems. Wireless monitors will become standard on oil tanks, letting dealers know when oil drops to a certain level. Once it does, they proactively make a fuel delivery.

➤���Oil heating equipment will continue to evolve and incorporate the latest advancements for efficiency and comfort, giving you a lot more warmth for a lot less fuel. There are already two-stage oil burners and variable-speed furnace motors that conserve fuel. Many new oil boilers now include outdoor reset controls to enhance efficiency and comfort.

*Bloomberg News, 10/6/14

Beginning in 1985 and

continuing in 1986, crude oil prices

fell by about

At one point, the spot price of natural gas was higher than the equivalent retail price of heating oil. That’s why switching fuels

to capture a temporary price advantage can be futile.

Beginning in 2014 and

continuing in 2015, crude oil prices

dropped by

U.S. Crude Oil Production, Per Day = 1 Million Barrels

Over the last 30 years, there have been only two times that crude oil prices have fallen 50% or more from their peak levels. Why does this matter? Think about it: After the price plunge in 1985 – 86, oil prices remained low and stable for 15 years, except for a temporary blip during the lead-up to the Persian Gulf War in 1991.

Could oil prices remain stable for that long again?As always, it remains to be seen how oil prices will play out in the years

ahead, since factors such as severe weather, the state of the economy and world events affecting energy production are unpredictable. But with U.S. oil production levels surging strongly, there is a better chance that oil prices may stay at lower levels in the future.

In 1985, U.S. oil production reached peak levels for the decade, with nearly 9 million barrels per day being pumped out. Unfortunately, domestic production began waning in the years that followed. However, today’s breakthrough technology has enabled us to get back to those high levels again. Total U.S. crude oil production in 2015 is on track to surpass 9 million barrels per day. And we have seen estimates that crude oil output will top 13 million barrels a day by 2019!

The new American oil revolution has changed the equation!

7/13 1/14 1/15

Natural gas spot prices

7/14

Cool rebates up to $1,000 are available!

Save up to $1,900

92 Copeland Street • Quincy, MA 02169

PRESORTED STANDARD MAIL

U.S. POSTAGE

PAIDDG3

• Fuel Oil• Heating and Air Conditioning

Equipment Sales & Service

Call Us! (617) 773-2870Visit Us! ScottWilliamsOil.comEmail Us! warmfriends@comcast.net

Because of falling oil prices, most folks saved money on heating costs this winter.

We encourage you to invest your fuel savings back into your home so you can save even more money.

Here are two great ways to do that.

1. Replace your boiler or furnaceA new, high-effi ciency boiler will keep you toasty warm — even when temperatures drop below zero! And because a new system uses a lot less fuel than older models, you can reduce your annual heating costs by 30% or more!

Through the Mass Save program, you may be eligible to receive a rebate of up to $1,900 for replacing a boiler 30 years old or older. Rebates of up to $750 are also available when you replace a furnace 12 years old or older. Don’t miss out on these BIG savings! The rebates are only valid through October 31. Contact us today for details.

2. Cool savings this summerMake this the year to replace your old a/c system! Not only will your new system save you money on electric bills, it will do a better job of keeping your home cool and comfortable.

Need another reason? We can help you take advantage of as much as $1,000 in rebates through Mass Save’s Cool Smart rebate program. Scott Williams will help you choose the ideal system for your home and then perform a quality installation. We carry a range of models, from central air units to ductless mini-split air conditioners.

Call, return the enclosed card or email us to learn more.

Beat the heat — call for your a/c tune-up today!Trade in your old boiler, save up to $1,900!

keep saving money!

stay in controlHeating costs can really add up during a long, cold winter; that’s why we offer programs to make it a lot easier to manage your household budget and control costs.

One of our most popular programs is EZ Pay. This monthly payment program lets you spread your fuel payments out over as many as 12 months (depending on when you enroll). It’s easier to plan ahead when you know what your monthly fuel expenses will be. And there is no fee to join!

Many customers also take advantage of our

price protection option. With our price cap program, you order a specifi c number of gallons of fuel and a “cap” limits how high your price can go. This option includes downside protection, which means you can benefi t if market prices go below the cap. A small cap fee is required, which is spread out in your EZ Pay payments.

Enrollment has begun! Call, return the enclosed card or go to

ScottWilliamsOil.com/priceprotection.php for more details.