Administration Responds to Senators Collins and King by Releasing Home Heating Oil from Northeast Reserve

LEWISTON, ME - The Department of Energy (DOE) has announced that it will release up to 315,000 barrels, a third of the home heating oil from the Northeast Home Heating Oil Reserve (NEHHOR). Maine Senators Susan Collins and Angus King urged the Administration to take this step on September 22 to help protect Mainers from high heating oil costs ahead of winter. The Department cites this letter as one of the primary reasons the Administration decided to release oil from the reserve.

"The Administration is committed to doing everything in our power to lower energy costs for the American people," said U.S. Secretary of Energy Chris Wright. "After receiving Senators Collins' and King's letter and extensive discussions with Senator Collins, I have directed the Department to exchange barrels from our Northeast Home Heating Oil Reserve to mitigate heightened home heating oil costs during the upcoming winter. Of course, this is a temporary measure to solve a temporary supply disruption. I encourage the governors of New York and New England to work with the Trump Administration to build the Constitution Pipeline and replace home heating oil with low-cost natural gas. Doing so would save their residents billions of dollars in home heating and electricity costs."

"I am pleased that the Administration has acted upon our request to release heating oil from the Northeast Home Heating Oil Reserve," said Senator Collins. "Approximately half of Maine households rely on fuel oil to heat their homes, and I have repeatedly urged the administration to use every tool to increase supply and lower energy prices. The Department anticipates this release will put downward pressure on home heating oil costs and make a real difference for Maine homeowners as they prepare for winter."

"Maine has been hit especially hard by the run up in fuel prices since the beginning of the Iran War and the most obvious example is home heating oil," said Senator King. "Maine is one of the most dependent states in the country on home heating oil and the cost is absolutely through the roof. This release of stored oil in New England will hopefully be some help. While this is good news, we also want to keep pressuring the Administration to bring those prices down before winter really sets in."

DOE will make the oil available through an exchange, under which companies submit bids to receive barrels from the reserve. The exchange will help reduce the cost of home heating oil in Maine. An increase of 315,000 barrels from NEHHOR represents a 13% supply increase in New England, helping bring down prices at a time when heating oil costs are up more than 70 percent from last year. Some of these barrels are currently stored in South Portland.

NEHHOR reserves have only been released twice in its 26-year history - most recently for an emergency response to Hurricane Sandy. The reserve has never before been used to lower home heating oil prices.

Sen. Collins has also worked with the Department of Energy to release 50 million barrels of diesel and 50 million barrels of crude oil over the next four months. She also pushed the Department of Health and Human Services to release LIHEAP funding at its earliest date to ensure low-income Mainers and seniors on a limited income have the help they need ahead of winter. Last year, Sen. Collins increased LIHEAP funding as Chair of the Appropriations Committee.

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