Although the Northeast consumes a lower percentage of naturalgas than does the rest of the nation, it ranks as the most popularenergy fuel in regional households, according to a new study issuedby the Energy Information Administration (EIA).

Natural gas accounted for 23%, or 3.27 quadrillion Btus (quads),of the 14 quads of energy that the region consumed in 1997, themost recent figures available, reported the Department of Energy’sEIA last week in its “Regional Energy Profile: Northeast DataAbstract.” This compares to natural gas’ share of 24% of total U.S.energy consumption (94 quads) in 1997.

However, of the 20 million households in the Northeast region,natural gas was used in 9.2 million homes as the main heating fuel,and was followed by fuel oil in 7.1 million homes, and electricityin 2.3 million homes, said Barbara Fichman, an EIA energy industryspecialist who authored the report. At the same time, about 45% ofthe commercial floor space was heated with natural gas, and 34%with fuel oil.

In contrast, the EIA study revealed that the demand rate forfuel oil (distillate, residual and home heating oil) as a heatingfuel was significantly greater in the Northeast, accounting for15.4% of total regional consumption in 1997, or 2.2 quads, comparedto 9.7% nationwide in 1997. The study tracks energy demand in theNortheast Census Region, which includes the six New England statesand three Middle Atlantic states (New York, New Jersey andPennsylvania).

Overall, the study estimated that household energy consumptionin the Northeast region was 2.4 quads, with the key sources listedas electricity (0.1 trillion kWh); natural gas (1 Tcf); and fueloil 5.8 billion gallons. Significantly, it pointed out that whilegas was used in more households, the region’s consumption ofelectricity was greater. Also, Northeast customers paid more forelectricity in 1997 ($17 billion), with natural gas coming insecond at $9 billion and fuel oil next at $6 billion.

The unit costs for electricity, natural gas and liquefiedpetroleum gas (LPG) are higher in the Northeast than in the rest ofthe nation, according to EIA, but the average cost of energy,$13.64 per MMBtu, is similar because of the region’s heavydependency on fuel oil, which is the least expensive fuel on a Btubasis.

The EIA put the commercial energy demand in the Northeast at 1quad in 1995, compared to 5.3 quads nationwide. Of that market,electricity accounted for 128 billion kWh, natural gas’ share was289 Bcf, and fuel oil’s demand was 1.2 billion gallons. Annualexpenditures by commercial customers for electricity were $13billion, far exceeding those for gas ($2 billion) and fuel oil($0.8 billion).

The study pegged energy by the Northeast manufacturing sector at1,964 trillion Btu in 1994. EIA’s Fichman conceded the figure wasvery low because it didn’t include energy feedstocks for a numberof industries, including forestry, mining, construction,agriculture, and fisheries. Also, it didn’t factor in the energydemand (distillate, residual and gas) for public transportationfleets, railroads, aircraft, barges and gas pipelines.

Of the 1,964 trillion Btu demand figure, the EIA reportednatural gas accounted for 518 trillion Btu; coal 458 trillion Btu;electricity 321 trillion Btu; residual fuel oil 152 trillion Btu;distillate fuel oil 42 trillion Btu; and LPG 34 trillion Btu.Again, the biggest annual expenditures were for electricity ($6billion), followed by natural gas ($2 billion), and coal ($0.08billion).

Susan Parker

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