More Expensive Level Sensors Can Actually Decrease Costs

I just had an interesting conversation with a distributor of level sensing products. He provides a lot of level sensors for oil/kerosene tank manufacturers and was mentioning the transition from the old reliable/ low cost sight glass sensors to electronic units. One would think that these electronic units would be more expensive and you would be right but the newer units are more cost effective if you look at the big picture. There are several reasons and they become more compelling in the face of rising/volatile oil prices.

Price Contracts: Small business and residential customers can be severely affected by rising prices. This winter should be a good example as I heard a prediction today that local Northeast US home owners can expect to pay ~$230 more than 2010 over the entire heating season. As a result of this uncertainty home, small business, and farm owners will often contract with the heating oil delivery company on a fixed price basis.

Transportation/Delivery: Heating Oil usually has to be delivered to these types of customers by truck. Often times these locations are outside urban areas and therefore the heating oil deliveries are more difficult to do efficiently because of distance and customer's being less concentrated geographically.

One might wonder how replacing a mechanical level sensor with a more expensive electronic unit would possibly help with either of these two items but it's true. If you take that electronic level sensor and give it the ability to connect either via a modem/phone connection or wirelessly via the home/business Wi-Fi to the heating oil delivery company you effectively have remote monitoring or almost the same benefit as an electrical smart grid.

• The delivery company can ensure the customer never runs out even if there is an unexpected surge in usage.
• The delivery company can efficiently set up truck loads for given sections in its service area.
• The delivery company can top off tanks when prices are low and let them run lower when prices are high - confident that they will not let customers run out.
• The customer can get a lower price particularly if they sign the contract.
• The delivery company can make sure that customers do not break an exclusive contract by taking deliveries from a lower priced competitor. If customers did this, the level sensor would inform the delivery company of an unexplained rise in level in their customer's tank.

And there you have it.  More expensive level sensors can actually decrease costs for heating oil delivery firms as well as their customers.