WASHINGTON, DC - The U.S. Department of Energy announced today that it will sell approximately 35,000 barrels of home heating oil from the Northeast Home Heating Oil Reserve (NEHHOR). The Reserve's current 5-year storage contracts expire on September 30, 2007 and market conditions have caused new storage costs to rise to a level that exceeds available funds.
Revenue from the sale will be used to supplement funds for the award of new long-term storage contracts that will begin on October 1, 2007. The Department will work with Congress to resolve these funding issues in order to restore the inventory of the Reserve to its full authorized size.
The sale of heating oil from the Reserve's site in Providence, Rhode Island will commence June 13, 2007, using an interactive on-line bidding system. Bidding will close on June 14th and a contract will be awarded to the successful bidder the same day.
The sale of 35,000 barrels represents less than 2% of NEHHOR's authorized capacity of 2 million barrels of home heating oil authorized by Congress in the Energy Policy Act of 2000. Since it was established, home heating oil supplies have never been disrupted to the extent that NEHHOR needed to be tapped.
Megan Barnett, (202) 586-4940