Feds announce release of reserve heating oil, after letter from Maine’s senators

The U.S. Department of Energy will release 315,000 barrels of reserve heating oil amid high prices, after U.S. Sens. Susan Collins and Angus King called for action last month. 

According to a press release from the senators Wednesday, the Northeast Home Heating Oil Reserve will release roughly a third of its supply to help reduce the price of heating oil. The reserve has only released heating oil twice in its 26-year history, and this is the first time it will be used to lower prices. The reserve holds approximately one million barrels, 200,000 of which are located in South Portland.

“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,” King, an independent, said. “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.” 

King said that while this is good news, “we also want to keep pressuring the Administration to bring those prices down before winter really sets in.”

Collins and King sent a letter to President Donald Trump last month, urging him to release heating oil from the reserve. 

“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,” said U.S. Secretary of Energy Chris Wright. “Of course, this is a temporary measure to solve a temporary supply disruption.”

Roughly half of Maine households use heating oil as their primary heating source. That number is down from 70% of households in 2010, according to the Maine Department of Energy Resources.

According to data from the department, the average statewide price of heating oil was $5.97 per gallon on Oct. 13, up roughly 79% from last year. That is down slightly from Sept. 21, when the average price reached a record high of $6.02. 

“The (U.S. Department of Energy) 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,” Collins said.