DOE to Purchase Heating Oil for the Northeast Home Heating Oil Reserve

The U.S. Department of Energy (DOE) today issued a solicitation seeking to purchase heating oil for the Northeast Home Heating Oil Reserve (NEHHOR) using $3 million in appropriated funds. The Northeast Home Heating Oil Reserve provides an important safety cushion for millions of Americans residing in the Northeast region of the country. Due to the modest volume of heating oil expected to be purchased with the available funds, no impact on market prices is expected.

… The Northeast Home Heating Oil Reserve was established by the Energy Policy 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 of sufficient size to provide relief from a shortfall in supply for approximately 10 days – the time it would take for replenishment supplies to arrive. NEHHOR currently holds 1,965,000 barrels located in three locations in the Northeast.

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