WASHINGTON, DC - The U.S. Department of Energy today announced the award of a contract to Hess Corporation for the delivery of approximately 808,625 gallons (approximately 19,250 barrels) of home heating oil for the Northeast Home Heating Oil Reserve (NEHHOR). The purchased oil is expected to be delivered to the Hess First Reserve terminal at Perth Amboy, NJ in New York Harbor later this week.
The award resulted from a solicitation issued on June 23, 2008, to repurchase heating oil using $3 million in funds appropriated after the sale of 35,000 barrels from the Reserve oil in June 2007. The 2007 sale was conducted to raise funds necessary to award new long-term storage contracts to maintain the Reserve at its authorized capacity of two million barrels oil in accordance with the Energy Policy Act of 2000.
The Northeast Home Heating Oil Reserve was established by the Energy Act of 2000 to provide a short-term supplement to Northeast heating oil supplies in the event of an actual or imminent severe energy supply disruption. Two million barrels was determined to be a sufficient size to provide relief from a shortfall for approximately 10 days, the time it would take for replenishment supplies to arrive.
The Northeast Home Heating Oil Reserve currently holds 1,965,000 barrels located in three locations in the Northeast.
For more information on the Department's Northeast Home Heating Oil Reserve visit the Office of Fossil Energy.
Angela Hill, (202) 586-4940