by TheDude » Tue 12 Aug 2008, 01:35:18
$this->bbcode_second_pass_quote('', '"')I could easily see that 25 or 30 heating oil retailers would not be able to make it through the next heating season, without any question" says Guilford.
In fact, in the last year, at least 15 oil dealers in six states have gone belly up, leaving tens of thousands of customers high and dry.
In March, F and S Oil, a Connecticut company, shut down virtually overnight after collecting more than $3 million from families who pre-paid for their oil.
That total included $5,000 from Constance Copes, a loyal F and S customer for 20 years.
Connecticut Attorney General Richard Blumenthal has received more than 3, 000 complaints against oil dealers. He's investigating three, and is suing F&S for failing to live up to its promise.
"There's a sense of real confusion, as well as anxiety and apprehension about whether people are going to be able to heat their homes and who to trust to give them advice, let alone deliver the product," Blumenthal says.
Meaning that in the heat of summer, Constance Copes and thousands like her have had to pay twice for oil long before a winter of discontent arrives.
Northeast To Be Home Heating Oil Hell?There is a
Northeast Home Heating Oil Reserve, courtesy of Clinton and Bill Richardson.
$this->bbcode_second_pass_quote('', 'O')f the 7.7 million households in the United States that use heating oil to heat their homes, 5.3 million households or roughly 69 percent reside in the Northeast region of the country - making this area especially vulnerable to fuel oil disruptions.
On July 10, 2000, President Clinton directed Energy Secretary Bill Richardson to establish a two million barrel home heating oil component of the Strategic Petroleum Reserve in the Northeast. The intent was to create a buffer large enough to allow commercial companies to compensate for interruptions in supply during severe winter weather, but not so large as to dissuade suppliers from responding to increasing prices as a sign that more supply is needed.
Two million barrels would give Northeast consumers adequate supplies for approximately 10 days, the time required for ships to carry additional heating oil from the Gulf of Mexico to New York Harbor.
$this->bbcode_second_pass_quote('', 'T')he Energy Policy and Conservation Act, as amended, sets conditions for the release of the Northeast Home Heating Oil Reserve at the discretion of the President. The President may make the requisite finding of a "severe energy supply interruption" for the sale of product under two conditions:
* a circumstance exists (other than the defined dislocation) that is a regional supply shortage of significant scope and duration and the Reserve's release would significantly reduce its adverse impact.